Document:

Exhibit 10.7

FIRST AMENDMENT

TO THE

JERSEY SHORE STATE BANK

AMENDMENT AND RESTATEMENT OF THE

DIRECTOR DEFERRED FEE AGREEMENT

DATED OCTOBER 1, 2004

FOR

 

 

 

THIS FIRST AMENDMENT is
adopted this ____ day of ________________, 2006, effective as of January 1,
2005, by and between JERSEY SHORE STATE BANK, a Pennsylvania-chartered
commercial bank located in Jersey Shore, Pennsylvania (the “Company”), and                                                  (the “Director”).

The Company and the Director
executed the Amendment and Restatement of the Director Deferred Fee Agreement effective
as of October 1, 2004 (the “Agreement”).

The undersigned hereby amend the Agreement for the purpose of bringing
the Agreement into compliance with Section 409A of the Internal Revenue
Code. Therefore, the following changes shall be made:

Section 1.3
of the Agreement shall be deleted in its entirety and replaced by the
following:

1.3                                 “Change in Control” means a change in the ownership or
effective control of the Company, or in the ownership of a substantial portion
of the assets of the Company, as such
change is defined in Section 409A of the Code and regulations thereunder.

The
following Section 1.14a shall be added to the Agreement immediately
following Section 1.14:

1.14a                     “Specified Employee”
means a key employee (as defined in Section 416(i) of the Code
without regard to paragraph 5 thereof) of the Company if any stock of the
Company is publicly traded on an established securities market or otherwise.

Section 1.16
of the Agreement shall be deleted in its entirety and replaced by the
following:

1.16                           “Termination of Service”
means the termination of the Director’s service with the Company for reasons
other than death or Disability. Whether a Termination of Service takes place is
determined based on the facts and circumstances surrounding the termination of
the Director’s service and whether the Company and the Director intended for
the Director to provide significant services for the Company following such
termination.

 

Section 4.1.2 of the
Agreement shall be deleted in its entirety and replaced by the following:

4.1.2                        Payment of Benefit. The Company shall pay the benefit to the
Director in the form specified in Election Form C,
commencing
within thirty (30) days of Termination of Service. If installment payments are
elected, the Company shall continue to credit interest to the Deferral Account
at a rate based on the yield on the 10 Year Treasury Note, compounded monthly,
using the average yield in effect for the month immediately prior to
commencement of benefit payments.

Section 4.3 of the Agreement
shall be deleted in its entirety and replaced by the following:

4.3                                 Upon the determination of the Director’s
Disability, prior to the Normal Benefit Age, the  Company shall pay to the Director the benefit
described in this Section 4.3 in lieu of any other benefit under this
Agreement.

The
phrase “Unforeseeable Emergency” in Section 4.5 shall be revised in each
place it appears to read “Unforeseeable Financial Emergency.”

The
following Sections 4.6, 4.7 and 4.8 shall be added to the Agreement immediately
following Section 4.5:

4.6                                 Restriction on Timing of Distributions.
Notwithstanding any provision of this Agreement to the contrary (without regard
to Section 5.3), if the Director is considered a Specified Employee at
Termination of Service under such procedures as established by the Company in
accordance with Section 409A of the Code, benefit distributions that are
made by reason of Termination of Service may not commence earlier than six (6) months
after the date of such Termination of Service. Therefore, in the event
this Section 4.6 is applicable to the Director, any distribution which
would otherwise be paid to the Director within the first six months following
the Termination of Service shall be accumulated and paid to the Director in a
lump sum on the first day of the seventh month following the Termination of
Service. All subsequent distributions shall be paid in the manner specified.

4.7                                 Distributions Upon Income
Inclusion Under Section 409A of the Code. Upon the inclusion of any amount into the Director’s income as a
result of the failure of this non-qualified deferred compensation plan to
comply with the requirements of Section 409A of the Code, to the extent
such tax liability can be covered by the Director’s Deferral Account balance or
Accrual Balance, a distribution shall be made as soon as is administratively
practicable following the discovery of the plan failure.

4.8                                 Change in Form or Timing of
Distributions. All changes
in the form or timing of distributions hereunder must comply with the following
requirements. The changes:

(a)                                  may not accelerate the time or schedule of
any distribution, except as 

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                                                provided in Section 409A of the Code and
the regulations thereunder;

(b)                                 must, for benefits distributable under
Sections 4.1, 4.2, 4.3 and 4.4, delay the commencement of distributions for a
minimum of five (5) years from the date the first distribution was
originally scheduled to be made;  and

(c)                                  must take effect not less than twelve (12)
months after the election is made.

Article 9
of the Agreement shall be deleted in its entirety and replaced by the
following:

Article 9

Amendments and Termination

9.1                                 Amendments. This Agreement may be amended only by a
written agreement signed by the Company and the Director. However, the Company
may unilaterally amend this Agreement to conform with written directives to the
Company from its auditors or banking regulators or to comply with legislative
changes or tax law, including without limitation Section 409A of the Code
and any and all Treasury regulations and guidance promulgated thereunder.

9.2                                 Plan Termination Generally. The Company may unilaterally terminate this
Agreement at any time. Except as provided in Section 9.3, the termination
of this Agreement shall not cause a distribution of benefits under this
Agreement. Rather, upon such termination benefit distributions will be made at
the earliest distribution event permitted under Article 4 or Article 5.

9.3                                 Plan Terminations Under Section 409A.
Notwithstanding anything to
the contrary in Section 9.2, if the Company terminates this Agreement in
the following circumstances:

(a)                                  Within thirty (30) days before, or twelve
(12) months after a change in the ownership or effective control of the Company,
or in the ownership of a substantial portion of the assets of the Company as
described in Section 409A(2)(A)(v) of the Code, provided that all
distributions are made no later than twelve (12) months following such
termination of the Agreement and further provided that all the Company’s arrangements
which are substantially similar to the Agreement are terminated so the Director
and all participants in the similar arrangements are required to receive
all amounts of compensation deferred under the terminated arrangements within
twelve (12) months of the termination of the arrangements;

(b)                                 Upon the Company’s dissolution or with the
approval of a bankruptcy court provided that the amounts deferred under the
Agreement are included in the Director’s gross income in the latest of (i) the
calendar year in which the Agreement terminates; (ii) the calendar year in
which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the
first calendar year in which the distribution is administratively practical; or

(c)                                  Upon the Company’s termination of this and
all other account balance plans (as referenced in Section 409A of the Code
or the regulations thereunder), provided that all distributions are made no
earlier than twelve (12) months and no later than

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                                                twenty-four (24) months following such termination,
and the Company does not adopt any new account balance plans for a minimum of
five (5) years following the date of such termination;

the
Company may distribute the Deferral Account balance, as shown on Exhibit D
of the Agreement, to the Director, in a lump sum subject to the above terms.

The
following Section 9.4 shall be added to the Agreement immediately
following Section 9.3:

9.4                                Code Section 409A. Notwithstanding anything herein to the
contrary, the provisions of this Agreement are subject to the conditions and
provisions of Section 409A of the Code.              To
the extent any provision of the Agreement violates the provisions of Section 409A
of the Code, thereby potentially resulting in adverse tax consequences to the
Director, the Company and the Director shall negotiate, in good faith and to
the extent possible, to ameliorate or eliminate such potential adverse tax
consequences to the Director. In connection therewith, in the event the
provision of payments or benefits is accelerated, the Company or its successors
may take into account reasonable present value concepts in making any payments
or providing accelerated benefits hereunder.

The following Sections 10.11 and
10.12 shall be added to the Agreement immediately following Section 10.10:

10.11                     Compliance with Section 409A. This Agreement shall at all times be
administered and the provisions of this Agreement shall be interpreted
consistent with the requirements of Section 409A of the Code and any and
all regulations thereunder, including such regulations as may be promulgated
after the Effective Date of this Agreement.

10.12                     Rescission. Any modification to the terms of this
Agreement that would inadvertently result in an additional tax liability on the
part of the Director, shall have no effect provided the change in the terms of
the plan is rescinded by the earlier of a date before the right is exercised
(if the change grants a discretionary right) and the last day of the calendar
year during which such change occurred.

IN WITNESS OF THE ABOVE, the Director and the Company hereby consent
to this First Amendment.

	
  Director:

  	
   

  	
  Jersey Shore State Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
  Title

  	
   

  	
   

  

 

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Jersey Shore State Bank

Director Deferred
Fee Agreement

ELECTION FORM—Initial Election

 

AMENDED
EXHIBIT C

JERSEY
SHORE STATE BANK

DIRECTOR
DEFERRED FEE AGREEMENT

ELECTION
FORM

 

	
  Benefit

  	
   

  	
  Distribution of Benefit

  
	
   

  	
   

  	
  Lump Sum
 (Initial)

  	
   

  	
  Equal Monthly Installments for 60

  months. (Initial)

  
	
  § 4.1.2—Normal Benefit Age

  	
   

  	
   

  	
   

  	
   

  
	
  § 4.2.2—Early Termination Benefit

  	
   

  	
   

  	
   

  	
   

  
	
  § 4.3.2—Disability Benefit

  	
   

  	
   

  	
   

  	
   

  
	
  § 4.4.2—Change in Control Benefit

  	
   

  	
   

  	
   

  	
   

  
	
  Article 5—Death Benefit

  	
   

  	
   

  	
   

  	
   

  

 

	
  Printed Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Received by the Plan Administrator this  ____  day of ________________ , 2 ____

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
								

 

 

 5Exhibit 4.6

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT, dated as of May 3,
2006 (this “Agreement”), by and between DYNCORP INTERNATIONAL INC., a Delaware
corporation (the “Company”), and DIV HOLDING LLC (“Holding”).

W  I  T  N  E
S  S  E  T  H:

WHEREAS, the Company and Holding desire to provide for
the circumstances under which the Company will register securities of the
Company on behalf of Holding.

NOW, THEREFORE, in consideration of the premises and
of the mutual covenants and obligations hereinafter set forth, the Company
hereby covenants and agrees with Holding and with each subsequent holder of
Restricted Stock (as such term is defined herein), as follows:

SECTION 1            Definitions. As used herein,
the following terms shall have the following respective meanings:

“Affiliate” shall mean (i) in the case of an
entity, any Person who or which, directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with,
any specified Person or (ii) in the case of an individual, such individual’s
spouse, children, grandchildren or parents or a trust primarily for the benefit
of any of the foregoing. For purposes of this definition, “control” (including
with correlative meanings, the terms “controlling”, “controlled by” and under “common
control with”) means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

“Certificate of Incorporation” shall mean the
Certificate of Incorporation of the Company, as amended and restated, in effect
on the date hereof.

“Commission” shall mean the Securities and Exchange
Commission, or any other Federal agency at the time administering the
Securities Act.

“Registration Expenses” shall mean the expenses so
described in Section 7 hereof.

“Restricted Stock” shall mean shares of Class A
Common Stock of the Company, the certificates for which are required to bear
the legend set forth in Section 2 hereof.

“Securities Act” shall mean the Securities Act of
1933, as amended, or any similar Federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

“Selling Expenses” shall mean the expenses so
described in Section 7 hereof.

SECTION 2            Restrictive Legend. Each
certificate representing the Restricted Stock and, except as otherwise provided
in Section 3 hereof, each certificate issued upon 

 

exchange or transfer of
any such securities shall be stamped or otherwise imprinted with a legend
substantially in the following form:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 NOR UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT
BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED
UNDER SUCH LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.”

SECTION 3            Notice of Proposed Transfer. Prior
to any proposed transfer of any Restricted Stock (other than under the
circumstances described in Section 4 or 5 hereof), the
holder thereof shall give written notice to the Company of its intention to
effect such transfer. Each such notice shall describe the manner of the
proposed transfer and, if requested by the Company, shall be accompanied by an
opinion of counsel satisfactory to the Company to the effect that the proposed
transfer may be effected without registration under the Securities Act,
whereupon such holder shall be entitled to transfer such securities in
accordance with the terms of its notice; provided, however, that
no such opinion of counsel shall be required for a transfer by a holder of
Restricted Stock (x) to an Affiliate of such holder or (y) in the
case of a holder that is a partnership, to a partner or employee of such holder
or a retired partner or retired employee of such holder who retires after the
date hereof, or to the estate of any such partner, retired partner, employee or
retired employee, or a transfer by gift, will or intestate succession from any
holder of Restricted Stock to his or her spouse or members of his or her or his
or her spouse’s family or a trust for the benefit of any of the foregoing
persons, in any such case set forth in clauses (x) and (y), only if the
transferee agrees in writing to be subject to the terms hereof to the same
extent as if such transferee were an original holder of Restricted Stock
hereunder. All Restricted Stock transferred as above provided shall bear the
legend set forth in Section 2, except that such securities shall
not bear such legend if (i) such transfer is in accordance with the
provisions of Rule 144 (or any other rule permitting public sale
without registration under the Securities Act) or (ii) the opinion of
counsel referred to above is to the further effect that the transferee and any
subsequent transferee (other than an affiliate of the Company) would be
entitled to transfer such securities in a public sale without registration
under the Securities Act.

SECTION 4            Required Registration.

(a)           At any time
following the consummation of an initial public offering by the Company of its
securities, Holding may, by written notice, request on not more than five
occasions that the Company register under the Securities Act all or any portion
of the shares of Restricted Stock held by such requesting holders for sale in
the manner specified in such notice. Notwithstanding anything to the contrary
contained herein, no request may be made under this Section 4 within 360
days after the effective date of a registration statement filed by the Company
covering a firm commitment underwritten public offering in which the holders of
Restricted Stock shall have been entitled to join pursuant to this Section 4
or Section 5 hereof and in which there shall have been effectively
registered all shares of Restricted Stock as to which registration shall have
been so requested (and which requests shall total at least fifty percent of the
shares of Restricted Stock originally purchased by Holding).

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(b)           Promptly following
receipt of any notice under this Section 4 the Company shall file
and use its best efforts to have declared effective a registration statement
under the Securities Act for the public sale, in accordance with the method of
disposition specified in such notice from requesting holders, of the number of
shares of Restricted Stock specified in such notice (and in any notices
received from other holders of Restricted Stock within 20 days after the date
of such notice from the Company). If such method of disposition shall be an
underwritten public offering, the Company may designate the managing
underwriter of such offering, subject to the approval of a majority in interest
of the selling holders of Restricted Stock, which approval shall not be
unreasonably withheld. The number of shares of Restricted Stock to be included
in such an underwriting may be reduced if and to the extent that the managing
underwriter shall be of the opinion that such inclusion would adversely affect
the marketing of the securities to be sold therein. The Company shall be
obligated to register Restricted Stock pursuant to requests made by Holding
under this Section 4 on two occasions only; provided, however,
that as to such occasion such obligation shall be deemed satisfied only when a
registration statement covering all shares of Restricted Stock specified in
notices received as aforesaid, for sale in accordance with the method of
disposition specified by the requesting holders, shall have become effective
and, if such method of disposition is a firm commitment underwritten public
offering, all such shares shall have been sold pursuant thereto.

(c)           The Company shall be
entitled to include in any registration statement referred to in this Section 4
for which the method of distribution is an underwritten public offering, for
sale in accordance with the method of disposition specified by Holding shares
of Class A Common Stock to be sold by the Company for its own account,
except as and to the extent that, in the opinion of the managing underwriter
(if such method of disposition shall be an underwritten public offering), such
inclusion would adversely affect the marketing of the Restricted Stock to be
sold. Except with respect to registration statements on Form S-3 or Form S-8,
or as otherwise provided in this paragraph 4(c), the Company will not file with
the Commission any other registration statement with respect to its Class A
Common Stock, whether for its own account or that of other stockholders, from
the date of receipt of a notice from requesting holders pursuant to this Section 4
until the completion of the period of distribution of the registration
contemplated thereby.

SECTION 5            Incidental Registration; Form S-3
Registration.

(a)           If the Company at
any time (other than pursuant to Section 4 hereof) proposes to
register any of its securities under the Securities Act for sale to the public,
whether for its own account or for the account of other security holders or
both (except with respect to registration statements on Form S-4 or
S-8 or another form not available for registering Restricted Stock for
sale to the public), each such time it will give written notice to all holders
of Restricted Stock of its intention so to do. Upon the written request of any
such holder, given within 20 days after the date of receipt of any such notice,
to register any of its Restricted Stock (which request shall state the intended
method of disposition thereof), the Company will use its best efforts to cause
the Restricted Stock as to which registration shall have been so requested to
be included in the securities to be covered by the registration statement
proposed to be filed by the Company, all to the extent requisite to permit the
sale or other disposition by the holder (in accordance with its written
request) of such Restricted Stock so registered. The Company may withdraw any
such registration statement before it becomes effective or postpone the
offering of 

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securities
contemplated by such registration statement without any obligation to the
holders of any Restricted Stock. In the event that any registration pursuant to
this Section 5 shall be, in whole or in part, an underwritten
public offering of Class A Common Stock, any request by a holder pursuant
to this Section 5 to register Restricted Stock shall specify that
either (i) such Restricted Stock is to be included in the underwriting on
the same terms and conditions as the shares of Class A Common Stock
otherwise being sold through underwriters under such registration or (ii) such
Restricted Stock is to be sold in the open market without any underwriting, on
terms and conditions comparable to those normally applicable to offerings of Class A
Common Stock in reasonably similar circumstances. The number of shares of
Restricted Stock to be included in such an underwriting may be reduced (in
accordance with Section 11 hereof) if and to the extent that the
managing underwriter shall be of the opinion that such inclusion would
adversely affect the marketing of the securities to be sold by the Company
therein; provided, however, that if any shares are to be included
in such underwriting for the account of any person other than the Company, the
number of shares to be included by any such person shall be reduced first; and provided
further, however, that the number of any such shares held by any
person other than the holders of Restricted Stock hereunder shall be reduced
before the number of any such shares held by the holders of Restricted Stock
hereunder is reduced. Notwithstanding anything to the contrary contained in
this Section 5, in the event that there is an underwritten offering
of securities of the Company pursuant to a registration covering Restricted
Stock and a selling holder of Restricted Stock does not elect to sell his, her
or its Restricted Stock to the underwriters of the Company’s securities in connection
with such offering, such holder shall refrain from selling such Restricted
Stock not registered pursuant to this Section 5 during the period
of distribution of the Company’s securities by such underwriters and the period
in which the underwriting syndicate participates in the after market; provided,
however, that such holder shall, in any event, be entitled to sell its
Restricted Stock in connection with such registration commencing on the 120th
day after the effective date of such registration statement.

(b)           If, at a time when Form S-3
is available for such registration, the Company shall receive from Holding a
written request or requests that the Company effect a registration on Form S-3
of any of such holder’s Restricted Stock, the Company will promptly give
written notice of the proposed registration to all other holders of Restricted
Stock and, as soon as practicable, effect such registration and all such
related qualifications and compliances as may be requested and as would permit
or facilitate the sale and distribution of all Restricted Stock as are
specified in such request and any written requests of other holders given
within 20 days after receipt of such notice. The Company shall not be required
to file a registration statement under Form S-3 if it would not be
required to file a registration statement under Section 4 hereof
pursuant to Section 4(a)(iv). The Company shall have no obligation
to effect a registration under this Section 5(b) unless either
(i) all the outstanding shares of Restricted Stock are requested to be
sold pursuant to such registration or (ii) the aggregate offering price of
the securities requested to be sold pursuant to such registration is, in the
good faith judgment of the Company, expected to be equal to or greater than
$1,000,000. Any registration under this Section 5(b) will not
be counted as a registration under Section 4 above.

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SECTION 6            Registration Procedures. If
and whenever the Company is required by the provisions of Section 4
or 5 hereof to use its best efforts to effect the registration of any
shares of Restricted Stock under the Securities Act, the Company will, as
expeditiously as possible:

(a)           prepare and file
with the Commission a registration statement (which, in the case of an
underwritten public offering pursuant to Section 4 hereof, shall be
on Form S-l or other form of general applicability satisfactory to the
managing underwriter selected as therein provided) with respect to such
securities and use its best efforts to cause such registration statement to
become and remain effective for the period of the distribution contemplated
thereby (determined as hereinafter provided);

(b)           prepare and file
with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective for the period specified in
paragraph 6(a) above and as to comply with the provisions of the
Securities Act with respect to the disposition of all Restricted Stock covered
by such registration statement in accordance with the sellers’ intended method
of disposition set forth in such registration statement for such period;

(c)           furnish to Holding
and to each underwriter such number of copies of the registration statement and
the prospectus included therein (including each preliminary prospectus) as such
persons may reasonably request in order to facilitate the public sale or other
disposition of the Restricted Stock covered by such registration statement;

(d)           use its best efforts
to register or qualify the Restricted Stock covered by such registration
statement under the securities or blue sky laws of such jurisdictions as
Holding or, in the case of an underwritten public offering, the managing
underwriter shall reasonably request;

(e)           immediately notify
Holding under such registration statement and each underwriter, at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act, of the happening of any event as a result of which the prospectus
contained in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state any material fact required to be
stated therein not misleading in the light of the circumstances then existing;

(f)            use its best
efforts to furnish, at the request of Holding, on the date that Restricted
Stock is delivered to the underwriters for sale pursuant to such registration: (i) an
opinion dated such date of counsel representing the Company for the purposes of
such registration, addressed to the underwriters and to Holding, stating (A) that
such registration statement has become effective under the Securities Act, (B) that,
to the best knowledge of such counsel, no stop order suspending the
effectiveness thereof has been issued and no proceedings for that purpose have
been instituted or are pending or contemplated under the Securities Act and (C) that
the registration statement and the related prospectus, and each amendment or
supplement thereof, comply as to form in all material respects with the
requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder (except that such counsel need not
express any opinion as to financial statements contained therein), and to such
other 

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effects as may
reasonably be requested by counsel for the underwriters or by Holding or its
counsel, and (ii) a letter dated such date from the independent public
accountants retained by the Company, addressed to the underwriters and to
Holding, stating that they are independent public accountants within the
meaning of the Securities Act and that, in the opinion of such accountants, the
financial statements of the Company included in the registration statement or
the prospectus, or any amendment or supplement thereof, comply as to form in
all material respects with the applicable accounting requirements of the
Securities Act, and such letter shall additionally cover such other financial
matters (including information as to the period ending no more than five
business days prior to the date of such letter) with respect to the
registration in respect of which such letter is being given as such
underwriters or Holding may reasonably request; and

(g)           make available for
inspection by Holding, any underwriter participating in any distribution
pursuant to such registration statement, and any attorney, accountant or other
agent retained by Holding or underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors and employees to supply all information
reasonably requested by any Holding, underwriter, attorney, accountant or agent
in connection with such registration statement.

For purposes of paragraphs 6(a) and (b) above
and of Section 4(c) hereof, the period of distribution of
Restricted Stock in a firm commitment underwritten public offering shall be
deemed to extend until each underwriter has completed the distribution of all
securities purchased by it, and the period of distribution of Restricted Stock
in any other registration shall be deemed to extend until the earlier of the
sale of all Restricted Stock covered thereby or nine months after the effective
date thereof

In connection with each registration hereunder, the
selling holders of Restricted Stock will furnish to the Company in writing such
information with respect to themselves and the proposed distribution by them as
shall be necessary in order to assure compliance with Federal and applicable
state securities laws.

In connection with each registration pursuant to Sections
4 and 5, hereof covering an underwritten public offering, the
Company agrees to enter into a written agreement with the managing underwriter
selected in the manner herein provided in such form and containing such
provisions as are customary in the securities business for such an arrangement
between major underwriters and companies of the Company’s size and investment
stature, provided that such agreement shall not contain any such
provision applicable to the Company which is inconsistent with the provisions
hereof and provided, further, that the time and place of the
closing under said agreement shall be as mutually agreed upon between the
Company and such managing underwriter.

SECTION 7            Expenses. All expenses
incurred by the Company in complying with Sections 4 and 5
hereof, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel and independent public
accountants for the Company, fees of the National Association of Securities
Dealers, Inc., transfer taxes, fees of transfer agents and registrars and
costs of insurance and fees and expenses of counsel for Holding, but excluding
any Selling Expenses, are herein called “Registration Expenses.” All 

 6
 

 

underwriting discounts
and selling commissions applicable to the sale of Restricted Stock are herein
called “Selling Expenses.” The Company will pay all Registration Expenses in
connection with each registration statement filed pursuant to Section 4
or Section 5 hereof. All Selling Expenses incurred in connection
with any sale of Restricted Stock by Holding shall be borne by Holding, provided,
however, if the Company withdraws any registration statement before it
becomes effective with respect to which Holding shall have exercised incidental
registration rights as contemplated by Section 5(a), the Company
shall reimburse Holding for all Selling Expenses incurred in connection with
such registration.

SECTION 8            Indemnification. In the event
of a registration of any of the Restricted Stock under the Securities Act
pursuant to Section 4 or 5 hereof, the Company will
indemnify and hold harmless Holding and each underwriter of such Restricted
Stock thereunder and each other person, if any, who controls Holding or
underwriter within the meaning of the Securities Act, against any and all
losses, claims, damages, expenses or liabilities, joint or several, to which
Holding or underwriter or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any registration statement under which such Restricted Stock was registered
under the Securities Act pursuant to Section 4 or 5, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereof, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
each Holding, each such underwriter and each such controlling person for any
legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability, expense or
action; provided, however, that the Company will not be liable in
any such case if and to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with
information furnished by Holding such underwriter or such controlling person in
writing specifically for use in such registration statement or prospectus.

In the event of a registration of any of the
Restricted Stock under the Securities Act pursuant to Section 4 or 5,
hereof, each seller of such Restricted Stock thereunder, severally and not
jointly, will indemnify and hold harmless the Company and each person, if any,
who controls the Company within the meaning of the Securities Act, each officer
of the Company who signs the registration statement, each director of the
Company, each underwriter and each person who controls any underwriter within
the meaning of the Securities Act, against all losses, claims, damages,
expenses or liabilities, joint or several, to which the Company or such officer
or director or underwriter or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages, expenses
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact contained
in the registration statement under which such Restricted Stock was registered
under the Securities Act pursuant to Section 4 or 5, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereof, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company and each such officer, director, underwriter and controlling person
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any 

 7
 

 

such loss, claim, damage,
liability or action, and provided, however, that Holding will be
liable hereunder in any such case if and only to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement
or alleged untrue statement or omission or alleged omission made in reliance
upon and in conformity with information pertaining to Holding, as such,
furnished in writing to the Company by Holding specifically for use in such
registration statement or prospectus; provided, further, however,
that the liability of Holding hereunder shall be limited to the proportion of
any such loss, claim, damage, liability or expense which is equal to the
proportion that the public offering price of the shares sold by Holding under
such registration statement bears to the total public offering price of all
securities sold thereunder, but not to exceed the proceeds received by Holding
from the sale of Restricted Stock covered by such registration statement. Promptly
after receipt by an indemnified party hereunder of notice of the commencement
of any action, such indemnified party shall, if a claim in respect thereof is
to be made against the indemnifying party hereunder, notify the indemnifying
party in writing thereof, but the omission so to notify the indemnifying party
shall not relieve it from any liability which it may have to any indemnified
party under this Section 8. In case any such action shall be
brought against any indemnified party and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to
participate in and, to the extent it shall wish, to assume and undertake the defense
thereof with counsel reasonably satisfactory to such indemnified party, and,
after notice from the indemnifying party to such indemnified party of its
election to assume and undertake the defense thereof, the indemnifying party
shall not be liable to such indemnified party under this Section 8
for any legal expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected; provided, however,
that, if the defendants in any such action include both the indemnified party
and the indemnifying party and the indemnified party shall have reasonably
concluded that there may be reasonable defenses available to it which are
different from or additional to those available to the indemnifying party or if
the interests of the indemnified party reasonably may be deemed to conflict
with the interests of the indemnifying party, the indemnified party shall have
the right to select a separate counsel and to assume such legal defenses and
otherwise to participate in the defense of such action, with the expenses and
fees of such separate counsel and other expenses related to such participation
to be reimbursed by the indemnifying party as incurred.

Notwithstanding the foregoing, any indemnified party
shall have the right to retain its own counsel in any such action, but the fees
and disbursements of such counsel shall be at the expense of such indemnified
party unless (i) the indemnifying party shall have failed to retain
counsel for the indemnified person as aforesaid or (ii) the indemnifying
party and such indemnified party shall have mutually agreed to the retention of
such counsel. It is understood that the indemnifying party shall not, in
connection with any action or related actions in the same jurisdiction, be
liable for the fees and disbursements of more than one separate firm qualified
in such jurisdiction to act as counsel for the indemnified party. The
indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by reason
of such settlement or judgment. If the indemnification provided for in the
first two paragraphs of this Section 8 is unavailable to or
insufficient to hold harmless an indemnified party under such paragraphs in
respect of any losses, claims, damages or liabilities or actions in respect
thereof referred to therein, then each indemnifying party shall in lieu of
indemnifying such indemnified 

 8
 

 

party contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or actions in such proportion as appropriate to
reflect the relative fault of the Company, on the one hand, and Holding, on the
other, in connection with the statement or omissions which resulted in such
losses, claims, damages, liabilities or actions, as well as any other relevant
equitable considerations including the failure to give any notice under the
third paragraph of this Section 8. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company, on the
one hand, or by Holding, on the other, and to the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

The Company and Holding agree that it would not be
just and equitable if contribution pursuant to this Section 8 were
determined by pro  rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an indemnified
party as a result of the losses, claims, damages, liabilities or action in
respect thereof, referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this and the immediately preceding paragraph, Holding shall not
be required to contribute any amount in excess of the amount, if any, by which
the total price at which the Class A Common Stock sold by it was offered
to the public exceeds the amount of any damages which it would have otherwise
been required to pay by reason of such untrue or alleged untrue statement of
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who is not guilty of such fraudulent
misrepresentation. The indemnification of underwriters provided for in this Section 8
shall be on such other terms and conditions as are at the time customary and
reasonably required by such underwriters. In that event the indemnification of
Holding in such underwriting shall at Holding’s request be modified to conform
to such terms and conditions.

SECTION 9            Changes in Class A Common
Stock. If, and as often as, there are any changes in the Class A
Common Stock by way of stock split, stock dividend, combination or
reclassification, or through merger, consolidation, reorganization or
recapitalization or by any other means, appropriate adjustment shall be made in
the provisions hereof, as may be required, so that the rights and privileges
granted hereby shall continue with respect to the Class A Common Stock as
so changed.

SECTION 10          Representations and Warranties of
the Company. The Company represents and warrants to Holding as follows
(which representations and warranties shall survive the execution and delivery
of this Agreement):

(a)           The execution,
delivery and performance of this Agreement by the Company have been duly
authorized by all requisite corporate action and will not violate any provision
of law, any order of any court or other agency of government the Certificate of
Incorporation or By-laws of the Company, or any provision of any indenture,
agreement or other instrument to which it or any of its properties or assets is
bound, or conflict with, result in a 

 9
 

 

breach of or
constitute (with due notice or lapse of time or both) a default under any such
indenture, agreement or other instrument, result in the creation or imposition
of any lien, charge or encumbrance of any nature whatsoever upon any of the
properties or assets of the Company.

(b)           This Agreement has
been duly executed and delivered by the Company and constitutes the legal,
valid and binding obligation of the Company, enforceable in accordance with its
terms.

SECTION 11          Priority on Registration. If
the managing underwriter or underwriters advise the Company and the holders of
the Restricted Stock to be registered in writing that in its or their opinion
the number of shares of Restricted Stock proposed to be sold in any
registration and any other securities of the Company requested or proposed to
be included in such registration exceeds the number that can be sold in such
offering without (A) creating a substantial risk that the proceeds or
price per share that will be derived from such registration will be materially
reduced or that the number of Restricted Stock to be registered is too large a
number to be reasonably sold, or (B) materially and adversely affecting
such registration in any other respect, the Company will (x) include in
such registration the aggregate number of Restricted Stock to be registered for
each stockholder to be reduced firstly, against the other stockholders, secondly,
against Holding; (in each case pro  rata based on the amount of
Restricted Stock of the stockholders in the applicable class requested to be
included in such registration), and (y) not allow any securities other
than Restricted Stock to be included in such registration unless all Restricted
Stock request to be included shall have been included therein, and then only to
the extent recommended by the managing underwriter or determined by the Company
after consultation with an investment banker of national recognized standing
(notification of which number shall be given by the Company to the holders of
Restricted Stock).

SECTION 12          Rule 144 Reporting. The
Company agrees as follows:

(a)           The Company shall
make and keep public information available as those terms are understood and
defined in Rule 144 under the Securities Act, at all times from and after
90 days following the effective date of the first registration of the Company
under the Securities Act of an offering of its securities to the general
public.

(b)           The Company shall
file with the Commission in a timely manner all reports and other documents as
the Commission may prescribe under Section 13(a) or 15(d) of the
Exchange Act at any time after the Company has become subject to such reporting
requirements of the Exchange Act.

(c)           The Company shall
furnish to Holding forthwith upon request (i) a written statement by the
Company as to its compliance with the reporting requirements of Rule 144
(at any time from and after 90 days following the effective date of the first
registration statement of the Company for an offering of its securities to the
general public), and of the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), (ii) a copy
of the most recent annual or quarterly report of the Company, and (iii) such
other reports and documents so filed as Holding may reasonably request to avail
itself of any rule or regulation of the Commission allowing Holding to
sell any such securities without registration.

 10

 

SECTION 13          Miscellaneous.

(a)           The rights arising
under Sections 4 and 5 shall terminate when (i) Holding is
no longer an “affiliate” as used in Rule 144 and (ii) Holding is
permitted to sell all Restricted Stock then held by them pursuant to Rule 144(k).

(b)           All covenants and
agreements contained in this Agreement by or on behalf of any of the parties
hereto shall bind and inure to the benefit of the respective successors and
assigns of the parties hereto whether so expressed or not. Without limiting the
generality of the foregoing, the registration rights conferred herein on
Holding shall inure to the benefit of any and all subsequent holders from time
to time of its Restricted Stock for so long as the certificates representing
the Restricted Stock shall be required to bear the legend specified in Section 2
hereof.

(c)           All notices,
requests and other communications to be given or otherwise made to any
Stockholder or other party hereto shall be deemed to be sufficient if contained
in a written instrument duly transmitted by telecopy or telex or duly sent by
overnight courier service or first class registered or certified mail, postage
prepaid, addressed to such party at the address set forth below or at such
other address as may hereafter be designated in writing by the addressee to the
address or listing all parties:

	
  

  	
  (a)

  	
  if to Holding:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIV Holding L.L.C.

  	
   

  
	
   

  	
   

  	
  c/o The Veritas Capital Fund II, L.P.

  	
   

  
	
   

  	
   

  	
  660 Madison Avenue

  	
   

  
	
   

  	
   

  	
  New York, New York 10021

  	
   

  
	
   

  	
   

  	
  Facsimile No.: 
  (212) 688-0020

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Mr. Robert B. McKeon and 

  	
   

  
	
   

  	
   

  	
   

  	
  Arvind M. R. Krishnamurthy

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Schulte Roth & Zabel LLP

  	
   

  
	
   

  	
   

  	
  919 Third Avenue

  	
   

  
	
   

  	
   

  	
  New York, New York 
  10022

  	
   

  
	
   

  	
   

  	
  Facsimile: 
  (212) 756-2072

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Benjamin M. Polk, Esq.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  if to the Company:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DynCorp International Inc.

  	
   

  
	
   

  	
   

  	
  8445 Freeport Parkway

  	
   

  
	
   

  	
   

  	
  Suite 400

  	
   

  
	
   

  	
   

  	
  Irving, Texas 
  75063

  	
   

  
	
   

  	
   

  	
  Facsimile No: 
  (972) 929-2853

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Michael J. Thorne

  	
   

  

 

 11
 

 

 

	
  

  	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DynCorp International LLC

  	
   

  
	
   

  	
   

  	
  3190 Fairview Park Drive

  	
   

  
	
   

  	
   

  	
  Suite 350

  	
   

  
	
   

  	
   

  	
  Falls Church, Virginia 22042

  	
   

  
	
   

  	
   

  	
  Attention: 
  R.Y. Morrel

  	
   

  
	
   

  	
   

  	
  Fax No.:  (571)
  722-0252

  	
   

  

 

All notices hereunder shall be effective on the date
of transmission if transmitted by telex or telecopy, on the first day after
delivery to an overnight national courier service if sent by such service and
on the date of receipt if sent by mail.

(d)           This Agreement shall
be governed by and construed in accordance with the laws of the State of New
York.

(e)           (i) EACH PARTY
TO THIS AGREEMENT HEREBY IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR TRANSACTIONS CONTEMPLATED
HEREBY MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AND HEREBY EXPRESSLY
SUBMITS TO THE PERSONAL JURISDICTION AND VENUE OF SUCH COURTS FOR THE PURPOSES
THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF IMPROPER VENUE AND ANY CLAIM THAT THE
SUCH COURTS ARE AN INCONVENIENT FORUM. EACH PARTY HEREBY IRREVOCABLY CONSENTS
TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH SUIT,
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
CERTIFIED MAIL. POSTAGE PREPAID, TO ITS ADDRESS SET FORTH IN SECTION 12(C) SUCH
SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH MAILING.

(ii)           THE
COMPANY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM
ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS
HEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. EXCEPT AS
PROHIBITED BY LAW, THE COMPANY HEREBY WAIVES ANY RIGHT IT MAY HAVE TO
CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE ANY
SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER
THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE COMPANY (X) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF HOLDING HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT HOLDING WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVERS AND (Y) ACKNOWLEDGES THAT HOLDING HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE WAIVERS AND
CERTIFICATIONS CONTAINED HEREIN.

 12
 

 

(f)            This Agreement
constitutes the entire agreement of the parties with respect to the subject
matter hereof and may not be modified or amended except in writing signed by
the Company and Holding.

(g)           Holding may assign
and transfer its rights and obligations hereunder, provided that any such
assignee or transferee shall have assumed in writing all the obligations of
Holding hereunder.

(h)           Telefacsimile
transmissions of any executed original document and/or retransmission of any
executed telefacsimile transmission shall be deemed to be the same as the
delivery of an executed original. At the request of any party hereto Holding
shall confirm telefacsimile transmissions by executing duplicate original
documents and delivering the same to the requesting party or parties. This
Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

 13
 

 

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

 

	
  

  	
  DYNCORP
  INTERNATIONAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen J.
  Cannon

  
	
   

  	
   

  	
  Name:

  	
  Stephen J.
  Cannon 

  
	
   

  	
   

  	
  Title:

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIV HOLDING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  The Veritas
  Capital Fund II, L.P., as Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert B.
  McKeon

  
	
   

  	
   

  	
  Name:

  	
  Robert B.
  McKeon, a Managing

  
	
   

  	
   

  	
   

  	
  Member of
  Veritas Capital

  
	
   

  	
   

  	
   

  	
  Management,
  L.L.C., General Partner

  

 

 14

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