Document:

Exhibit 10.1

 

FIRST AMENDMENT

 

                THIS FIRST AMENDMENT dated as of
March 16, 2005 (the “Amendment”) is entered into among Tenet Healthcare
Corporation, a Nevada corporation (the “Borrower”), the Subsidiary
Guarantors party hereto, the Lenders party hereto and Bank of America, N.A., as
Administrative Agent.  All capitalized
terms used herein and not otherwise defined herein shall have the meanings
given to such terms in the Credit Agreement (as defined below).

 

RECITALS

 

                WHEREAS, the Borrower, the
Lenders and the Administrative Agent entered into that certain Credit Agreement
dated as of December 31, 2004 (as amended or modified from time to time, the “Credit
Agreement”);

 

WHEREAS,
the Borrower, the Subsidiary Guarantors and the Administrative Agent entered into
that certain Guarantee and Pledge Agreement dated as of December 31, 2004 (as
amended or modified from time to time, the “Guarantee and Pledge Agreement”);
and

 

WHEREAS,
the Borrower has requested that the Lenders amend the Credit Agreement and the
Guarantee and Pledge Agreement as set forth below;

 

                NOW, THEREFORE, in consideration
of the premises and the mutual covenants contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

                1.             Amendments to the Credit
Agreement.

 

(a)           The
definition of “Termination Date” in Section 1.01 of the Credit Agreement is
hereby amended to read as follows:

 

“Termination
Date” means December 31, 2005; provided, however, if the
Administrative Agent releases its liens on all Investments in any Subsidiary
Guarantor owned by any Credit Party pursuant to Section 9.14, the Termination
Date shall be automatically extended to June 30, 2006 at the time of the
Administrative Agent’s release of such Investments in accordance with Section
9.14.

 

(b)           The
following definition is hereby added to Section 1.01 of the Credit Agreement in
the appropriate alphabetical order:

 

“Defaulting
Lender” means any Lender that (a) has failed to fund any portion of
the participations in LC Reimbursement Obligations within one Business Day of
the date required to be funded by it hereunder, (b) has otherwise failed
to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when
due, unless the subject of a good faith dispute, or (c)  has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding.

 

 

 

(c)           The
parenthetical in the first sentence of Section 2.01(f) is hereby amended to
read as follows:

 

(but
such request shall not be permitted to be made sooner than 100 days prior to
the existing expiry date of the applicable Letter of Credit and the Lenders
shall not be requested to grant such request sooner than 90 days prior to the
existing expiry date of the applicable Letter of Credit)

 

(d)           Section 9.05 of the Credit Agreement
is hereby amended by (a) deleting the “.” at the end of the clause (iii) and
inserting “; or” in place thereof and (b) adding a new clause (iv) which shall
read as follows:

 

                (iv)          release
any Collateral, including, without limitation, any proceeds in the BANA Account
or the BAS Account (as such terms are defined in the Assignment of Collateral
Account), without written consent of all the Lenders.

 

(e)           The proviso in Section 9.06(c) of the
Credit Agreement is hereby amended to read as follows:

 

provided that

 

(A)          if
such Eligible Assignee is not an Affiliate of the transferor Lender and was not
a Lender immediately prior to such assignment, then, unless the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise agree, the portion of the transferor Lender’s Commitment
assigned to such Eligible Assignee shall be at least $25,000,000;

 

(B)           unless
the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Borrower otherwise agree or the transferor Lender assigns
its entire Commitment to such Eligible Assignee, the transferor Lender and/or
its Affiliates shall retain, in the aggregate, a Commitment at least equal to
$25,000,000; and

 

(C)           any
assignment of a Commitment must be approved by the Administrative Agent unless
the Person that is the proposed assignee is itself a Lender (whether or not the
proposed assignee would otherwise qualify as an Eligible Assignee).

 

(f)            A new Section 9.13 is hereby added
at the end of Article 9 and shall read as follows:

 

9.13        Replacement of Lenders.

 

The
Borrower and, in the case of clause (b) below, the Administrative Agent
shall be permitted to replace any Lender that (a) requests reimbursement
for amounts owing pursuant to Section 8.01 or 8.02, (b) becomes a
Defaulting Lender or (c) becomes a non-consenting Lender as provided below, with
a replacement bank or other financial institution, provided that (i) such
replacement does not conflict with any laws, (ii) except in the case of
clause (c) above, no Event of Default shall have occurred and be continuing at
the time of such replacement, (iii) the Borrower shall repay (or the
replacement bank or institution shall purchase, at par) all LC Reimbursement
Obligations and other amounts (other than any

 

2

 

reasonably disputed
amounts), pursuant to Section 8.01 and 8.02, as the case may be, owing to
such replaced Lender prior to the date of replacement, (iv) the
replacement bank or institution, if not already a Lender, and the terms and
conditions of such replacement, shall be an Eligible Assignee, (v) the
replaced Lender shall be obligated to cooperate to effect such replacement in
accordance with the provisions of Section 9.06, including, without
limitation, by execution of an Assignment and Assumption (provided that the
Borrower shall be obligated to pay the registration and processing fee referred
to therein), and (vi) any such replacement shall not be deemed to be a waiver
of any rights that the Borrower, the Administrative Agent or any other Lender
shall have against the replaced Lender.

 

If
in connection with any proposed change, waiver, discharge or termination to any
of the provisions of this Agreement that are contemplated by clauses (i)
through (iv), inclusive of the first proviso of Section 9.05, the consent of
the Required Lenders is obtained but the consent of one or more of such other
Lenders whose consent is required is not obtained, then the Borrower shall have
the right to replace each such non-consenting Lender or Lenders with one or
more replacement banks or financial institutions pursuant to this Section 9.13
so long as at the time of replacement, each such replacement bank or financial
institution consents to the proposed change, waiver, discharge or termination;
provided that, the failure by such non-consenting Lender to execute and deliver
an Assignment and Assumption shall not impair the validity of the removal of
such non-consenting Lender and the mandatory assignment of such non-consenting
Lender’s Commitments and outstanding participations in LC Reimbursement
Obligations pursuant to this Section 9.13 shall nevertheless be effective
without the execution by such non-consenting Lender of an Assignment and
Assumption.

 

(g)           A new Section 9.14 is hereby added at
the end of Article 9 and shall read as follows:

 

Section
9.14         Release of Equity Interests.

 

At
any time on or after April 15, 2005, upon written request by the Borrower, so
long as no Default or Event of Default has occurred and is then continuing, the
Administrative Agent, on behalf of the Lenders, shall promptly release its
liens on the Investments in the Subsidiary Guarantors pledged by the Credit
Parties pursuant to the Guarantee and Pledge Agreement.

 

                2.             Amendment
to the Guarantee and Pledge Agreement.

 

(a)           Section
15(c) of the Guarantee and Pledge Agreement is hereby amended to read as
follows:

 

(c)           At any time before the Transaction
Liens granted by the Borrower terminate, the Administrative Agent may, at the
written request of the Borrower, release any Collateral with the prior written
consent of all Lenders.

 

(b)           A
new subsection (e) is hereby added to Section 15 of the Guarantee and Pledge
Agreement and shall read as follows:

 

(e)           The Transaction Liens granted on the
Equity Interests pursuant to Section 3(a) above shall terminate, so long as no
Default or Event of Default has occurred and is then continuing, at any time on
or after April 15, 2005, upon written request by the Borrower, without
prejudice to any Lien granted under any other Security Document.

 

3

 

                3.             Conditions
Precedent.  This Amendment shall be
effective upon receipt by the Administrative Agent of counterparts of this
Amendment duly executed by the Borrower, the Subsidiary Guarantors, the Lenders
and the Administrative Agent.

 

                4.             Miscellaneous.

 

                                                                (a)           The Credit Agreement, and the
obligations of the Borrower thereunder and of the Credit Parties under the
other Financing Documents, are hereby ratified and confirmed and shall remain
in full force and effect according to their terms.

 

                (b)           Each
Credit Party hereby represents and warrants as follows:

 

                (i)            Each Credit Party has taken all
necessary action to authorize the execution, delivery and performance of this
Amendment.

 

                (ii)           This Amendment has been duly executed
and delivered by each Credit Party and constitutes each Credit Party’s legal,
valid and binding obligations, enforceable in accordance with its terms, except
as such enforceability may be subject to (i) bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws
affecting creditors’ rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity).

 

                (iii)          No consent, approval, authorization or
order of, or filing, registration or qualification with, any court or
governmental authority or third party is required in connection with the
execution, delivery or performance by any Credit Party of this Amendment.

 

                                                                (c)           The Borrower and each other Credit
Party, as applicable, represent and warrant to the Lenders that (i) the
representations and warranties of the Borrower set forth in Article 4 of the
Credit Agreement and of the Credit Parties in each other Security Document are
true and correct as of the date hereof with the same effect as if made on and
as of the date hereof, except to the extent such representations and warranties
expressly relate solely to an earlier date and (ii) no event has occurred and
is continuing which constitutes a Default or an Event of Default.

 

                                                                (d)           This Amendment may be executed in any
number of counterparts, each of which when so executed and delivered shall be
an original, but all of which shall constitute one and the same
instrument.  Delivery of an executed
counterpart of this Amendment by telecopy shall be effective as an original and
shall constitute a representation that an executed original shall be delivered.

 

                (e)           THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

 

[remainder of page
intentionally left blank]

 

 

 

 

 

 

 

 

 

4

 

                Each
of the parties hereto has caused a counterpart of this Amendment to be duly
executed and delivered as of the date first above written.

 

	
  BORROWER:

  	
  TENET HEALTHCARE CORPORATION,

  	
   

  
	
   

  	
  a Nevada corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Kellman

  	
   

  
	
   

  	
  Name:

  	
  F. Scott Kellman

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President,
  Corporate Finance and
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBSIDIARY

  GUARANTORS:

  	
   

  	
   

  
	
   

  	
  AHM ACQUISITION CO., INC.

  	
   

  
	
   

  	
  ALVARADO HOSPITAL MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  AMI INFORMATION SYSTEMS GROUP, INC.

  	
   

  
	
   

  	
  AMERICAN MEDICAL (CENTRAL), INC.

  	
   

  
	
   

  	
  AMISUB (HEIGHTS), INC.

  	
   

  
	
   

  	
  AMISUB (HILTON HEAD), INC.

  	
   

  
	
   

  	
  AMISUB (IRVINE MEDICAL CENTER), INC.

  	
   

  
	
   

  	
  AMISUB (NORTH RIDGE HOSPITAL), INC.

  	
   

  
	
   

  	
  AMISUB (SAINT JOSEPH HOSPITAL), INC.

  	
   

  
	
   

  	
  AMISUB (SFH), INC.

  	
   

  
	
   

  	
  AMISUB (TWELVE OAKS), INC.

  	
   

  
	
   

  	
  AMISUB OF CALIFORNIA, INC.

  	
   

  
	
   

  	
  AMISUB OF NORTH CAROLINA, INC.

  	
   

  
	
   

  	
  AMISUB OF SOUTH CAROLINA, INC.

  	
   

  
	
   

  	
  AMISUB OF TEXAS, INC.

  	
   

  
	
   

  	
  BROOKWOOD HEALTH SERVICES, INC.

  	
   

  
	
   

  	
  CGH HOSPITAL, LTD.

  	
   

  
	
   

  	
  COMMONWEALTH CONTINENTAL HEALTH CARE, INC.

  	
   

  
	
   

  	
  COMMUNITY HOSPITAL OF LOS GATOS, INC.

  	
   

  
	
   

  	
  CORAL GABLES HOSPITAL, INC.

  	
   

  
	
   

  	
  CYPRESS FAIRBANKS MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  DELRAY MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  DOCTORS HOSPITAL OF MANTECA, INC.

  	
   

  
	
   

  	
  DOCTORS MEDICAL CENTER OF MODESTO, INC.

  	
   

  
	
   

  	
  EAST COOPER COMMUNITY HOSPITAL, INC.

  	
   

  
	
   

  	
  FMC ACQUISITION, INC.

  	
   

  
	
   

  	
  FMC HOSPITAL, LTD.

  	
   

  
	
   

  	
  FMC MEDICAL, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis L. Dent

  	
   

  
	
   

  	
  Name:

  	
  Dennis L. Dent

  	
   

  
	
   

  	
  Title:

  	
  Treasurer for each of the
  foregoing

  	
   

  
					

 

5

 

	
   

  	
  FOUNTAIN VALLEY REGIONAL HOSPITAL & MEDICAL
  CENTER

  	
   

  
	
   

  	
  FRYE REGIONAL MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  GULF COAST COMMUNITY HOSPITAL, INC.

  	
   

  
	
   

  	
  HILTON HEAD HEALTH SYSTEM, L.P.

  	
   

  
	
   

  	
  HNMC, INC.

  	
   

  
	
   

  	
  HNW GP, INC.

  	
   

  
	
   

  	
  HNW LP, INC.

  	
   

  
	
   

  	
  HOLLYWOOD MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  HOUSTON NORTHWEST MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  HOUSTON NORTHWEST PARTNERS, LTD.

  	
   

  
	
   

  	
  JFK MEMORIAL HOSPITAL, INC.

  	
   

  
	
   

  	
  LAKE POINTE GP, INC.

  	
   

  
	
   

  	
  LAKE POINTE INVESTMENTS, INC.

  	
   

  
	
   

  	
  LAKE POINTE PARTNERS, LTD.

  	
   

  
	
   

  	
  LAKEWOOD REGIONAL MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  LIFEMARK HOSPITALS OF FLORIDA, INC.

  	
   

  
	
   

  	
  LIFEMARK HOSPITALS OF LOUISIANA, INC.

  	
   

  
	
   

  	
  LIFEMARK HOSPITALS, INC.

  	
   

  
	
   

  	
  LOS ALAMITOS MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  MCF, INC.

  	
   

  
	
   

  	
  MEDICAL CENTER OF GARDEN GROVE

  	
   

  
	
   

  	
  MEODOWCREST HOSPITAL, LLC

  	
   

  
	
   

  	
  NEW MEDICAL HORIZONS, II, LTD.

  	
   

  
	
   

  	
  NME HEADQUARTERS, INC.

  	
   

  
	
   

  	
  NORTH FULTON MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  NORTH MIAMI MEDICAL CENTER, LTD.

  	
   

  
	
   

  	
  NORTH SHORE REGIONAL MEDICAL CENTER, LLC

  	
   

  
	
   

  	
  ORNDA HOSPITAL CORPORATION

  	
   

  
	
   

  	
  ORNDA INVESTMENTS, INC.

  	
   

  
	
   

  	
  PALM BEACH GARDENS COMMUNITY HOSPITAL, INC.

  	
   

  
	
   

  	
  PLACENTIA-LINDA HOSPITAL, INC.

  	
   

  
	
   

  	
  REPUBLIC HEALTH CORPORATION OF ROCKWALL COUNTY

  	
   

  
	
   

  	
  RHC PARKWAY, INC.

  	
   

  
	
   

  	
  SAN DIMAS COMMUNITY HOSPITAL

  	
   

  
	
   

  	
  SAN RAMON REGIONAL MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  SIERRA VISTA HOSPITAL, INC.

  	
   

  
	
   

  	
  TENET CALIFORNIA, INC.

  	
   

  
	
   

  	
  TENET FINANCE CORP.

  	
   

  
	
   

  	
  TENET FRISCO, LTD.

  	
   

  
	
   

  	
  TENET GOOD SAMARITAN, INC.

  	
   

  
	
   

  	
  TENET HEALTHCARE, LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis L. Dent

  	
   

  
	
   

  	
  Name: 

  	
  Dennis L. Dent

  	
   

  
	
   

  	
  Title:

  	
  Treasurer for each of the
  foregoing

  	
   

  

 

6

 

	
   

  	
  TENET HEALTHCARE-FLORIDA, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM BARTLETT, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM BUCKS COUNTY, L.L.C.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM CFMC, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM DI, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM GB, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM GRADUATE, L.L.C.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM HAHNEMANN, L.L.C.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM HEALTHCORP.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM HOLDINGS, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM HOSPITALS, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM HOSPITALS DALLAS, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM MEDICAL, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM MEMORIAL MEDICAL CENTER, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM NORRIS, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM NORTH SHORE, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM PHILADELPHIA, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM ROXBOROUGH, LLC

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM SGH, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM SL, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM SPALDING, INC.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM ST. CHRISTOPHER’S HOSPITAL
  FOR CHILDREN, L.L.C.

  	
   

  
	
   

  	
  TENET HEALTHSYSTEM DESERT, INC.

  	
   

  
	
   

  	
  TENET HIALEAH HEALTHSYSTEM, INC.

  	
   

  
	
   

  	
  TENET HOSPITALS, INC.

  	
   

  
	
   

  	
  TENET HOSPITALS LIMITED

  	
   

  
	
   

  	
  TENET SOUTH FULTON, INC.

  	
   

  
	
   

  	
  TENET ST. MARY’S, INC.

  	
   

  
	
   

  	
  TENETSUB TEXAS, INC.

  	
   

  
	
   

  	
  TWIN CITIES COMMUNITY HOSPITAL, INC.

  	
   

  
	
   

  	
  USC UNIVERSITY HOSPITAL, INC.

  	
   

  
	
   

  	
  WEST BOCA MEDICAL CENTER, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis L. Dent

  	
   

  
	
   

  	
  Name:

  	
  Dennis L. Dent

  	
   

  
	
   

  	
  Title:

  	
  Treasurer for each of the
  foregoing

  	
   

  

 

7

 

	
  ADMINISTRATIVE AGENT:

  	
  BANK OF AMERICA, N.A.,

  	
   

  
	
   

  	
  as Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin R. Wagley

  	
   

  
	
   

  	
  Name:

  	
  Kevin R. Wagley

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDERS:

  	
  BANK OF AMERICA, N.A.,

  	
   

  
	
   

  	
  as L/C Issuer and Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin R. Wagley

  	
   

  
	
   

  	
  Name:

  	
  Kevin R. Wagley

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITICORP USA, INC.,

  	
   

  
	
   

  	
  as Syndication Agent and
  Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Suzanne Crymes

  	
   

  
	
   

  	
  Name:

  	
  Suzanne Crymes

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  

 

8Exhibit
10.1

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (this “Agreement”) is made effective as of March 18, 2005 by and
between SI International, Inc., a Delaware corporation (the “Company”), and
PAUL R. BRUBAKER (the “Executive”).

 

WHEREAS, the Board of
Directors of the Company (the “Board”) desires to set forth the nature and
amount of compensation and other benefits to be provided to the Executive and
any of the rights of the Executive in the event of his termination of employment
with the Company;

 

WHEREAS, the Executive is
willing to commit himself to serve the Company on the terms and conditions
herein provided; and

 

WHEREAS, in order to
effect the foregoing, the Company and the Executive wish to enter into this
Agreement under the terms and conditions set forth below.

 

NOW, THEREFORE, in
consideration of the foregoing, of the mutual promises and the respective
covenants and agreements of the parties herein contained, the parties intending
to be legally bound, agree as follows:

 

1.             Employment.  The Company hereby agrees to employ the
Executive, and the Executive hereby agrees to serve the Company, on the terms
and conditions set forth herein.

 

2.             Term.  The Executive’s employment pursuant to this
Agreement shall commence on March 18, 2005 and continue in effect through July
1, 2005; provided, however, that commencing on July 1, 2005 and each July 1st
thereafter, the Executive’s employment pursuant to this Agreement shall
automatically be extended for additional one (1) year terms unless, not later
than ninety (90) calendar days prior to such date, the Company or the Executive
shall have given written notice that such party does not wish to extend the
Executive’s employment pursuant to this Agreement; and provided, further, that
if a Change of Control (as defined herein) of the Company shall have occurred
during the original or any extended term of the Executive’s employment pursuant
to this Agreement, the term of the Executive’s employment pursuant to this
Agreement shall continue in effect for a period of twelve (12) months beyond
the month in which such Change of Control occurred.

 

3.             Position
and Duties.  During the Executive’s
employment with the Company pursuant to this Agreement, the Executive shall
serve as the Executive Vice President and Chief Marketing Officer of the
Company and shall have such responsibilities and authority as the Chief
Executive Officer of the Company (the “CEO”) shall delegate, expand, limit or
otherwise change from time to time.

 

4.             Compensation,
Benefits and Related Matters.

 

(a)           Base
Salary.  During the Executive’s
employment with the Company pursuant to this Agreement, the Company shall pay
to the Executive a salary at an initial rate of Two Hundred Twenty Five
Thousand Dollars ($225,000) per
annum in equal installments as nearly as practicable on the normal
payroll periods for employees of the Company generally (the “Base Salary”).  The Base Salary may be increased or decreased
from time to time at the discretion of the Board.

 

 

(b)           Performance-Based
Bonus.  During the Executive’s
employment with the Company pursuant to this Agreement, the Executive shall be
eligible to receive a bonus following the end of each fiscal year in accordance
with the performance-based bonus plans established by the Board for senior
executive officers from time to time after taking into account the performance
of the Company and the Executive and such other facts and circumstances as the
Board may deem appropriate to consider.

 

(c)           Expenses.  During the Executive’s employment with the
Company pursuant to this Agreement, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in
performing services hereunder, including, without limitation, all expenses for
travel, all living expenses while away from home on business or at the request
of and in the service of the Company, and all reasonable entertainment
expenses.

 

(d)           Benefits.  During the Executive’s employment with the
Company pursuant to this Agreement, the Executive shall be entitled to
participate in all of the employee benefit plans and arrangements generally
provided from time to time to senior executive officers of the Company.  The Company may initiate, change and discontinue
any such plan or arrangement at any time. 
Nothing paid to the Executive under any plan or arrangement presently in
effect or made available in the future shall be deemed to be in lieu of any
amounts payable to the Executive pursuant to this Section 4.

 

(e)           Compensation
During Incapacity.  During the
Executive’s employment with the Company pursuant to this Agreement, for any
period that the Executive fails to perform the Executive’s full-time duties
with the Company as a result of incapacity due to physical or mental illness,
the Company shall pay the Executive’s Base Salary to the Executive at the rate
in effect at the commencement of any such period, together with all
compensation and benefits payable to the Executive under the terms of any
compensation or benefit plan, program or arrangement maintained by the Company
during such period, until the Executive’s employment is terminated by the
Company for Disability.

 

(f)            Vacation.  Executive shall be entitled to vacation in
the manner and as generally provided from time to time to senior executive
officers of the Company.

 

5.             Termination.

 

(a)           The
Executive’s employment with the Company may be terminated by the Company (i) at
any time for Cause or without Cause; or (ii) if, as a result of the Executive’s
incapacity due to physical or mental illness, the Executive shall have been
absent from the full-time performance of the Executive’s duties with the
Company for three (3) consecutive months (a “Disability”).  The Executive’s employment with the Company
shall be terminated immediately upon the death of the Executive.  The Executive’s employment with the Company
may be terminated at any time by the Executive for Constructive Termination or
without Constructive Termination.

 

2

 

(b)           Any
purported termination of the Executive’s employment by the Company or the
Executive (other than by reason of death) shall be communicated by written
Notice of Termination from one party hereto to the other in accordance with
Section 19 hereof.

 

(c)           As
used herein:

 

(i)            A
“Notice of Termination” shall mean a notice that specifies the Date of
Termination and that, in the case of a termination by the Executive, shall
indicate the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the
provision so indicated and that, in the case of a termination by the Company,
shall indicate whether such termination is for Cause or without Cause.

 

(ii)           The
“Date of Termination” with respect to any purported termination of the
Executive’s employment shall mean (A) if the Executive’s employment is
terminated for Disability, thirty (30) days after Notice of Termination is
given (provided that the Executive shall not have returned to the full-time
performance of the Executive’s duties during such thirty (30) day period), (B)
if the Executive’s employment is terminated by reason of death, then the date
thereof, (C) if the Executive’s employment is terminated pursuant to Section 2
hereof, the date on which the Executive’s employment expires pursuant to such
section, and (D) if the Executive’s employment is terminated for any other
reason, the date specified in the Notice of Termination (which, in the case of
a termination by the Executive, shall not be less than thirty (30) nor more
than sixty (60) days from the date such Notice of Termination is given).

 

6.             Severance
Payments.

 

(a)           The
Company shall pay the Executive the payments and benefits set forth in this
Section 6(a) upon any termination of the Executive’s employment, including,
without limitation, the nonextension of the Executive’s employment by the
Company pursuant to Section 2 hereof, unless such termination is by the Company
for Cause, by the Executive without Constructive Termination or the
nonextension of the Executive’s employment by the Executive pursuant to Section
2 hereof:

 

(i)            The
Company shall pay as severance pay to the Executive (x) for a twelve (12) month
period after the Date of Termination the Executive’s Base Salary at the highest
rate in effect prior to the Date of Termination in equal installments as nearly
as practicable on the normal payroll periods for employees of the Company
generally, and (y) any performance-based bonus which has been earned by the
Executive for a fiscal year preceding the Date of Termination and a pro-rata
portion, to the Date of Termination, of any performance-based bonus that the
Executive would have earned for the fiscal year in which the Date of
Termination occurs, in each case, in accordance with the performance-based
bonus plan in effect for such fiscal year and as approved by the Board
consistent with the Company’s performance during such period, such amounts to
be paid when bonuses are generally paid to other executive officers of the
Company; provided, however, that in the event the Company terminates the
Executive’s employment without Cause or elects not to extend the Executive’s
employment pursuant to Section 2 hereof or the Executive resigns after a
Constructive Termination during the time period commencing with a definitive
agreement for a Change of Control (which transaction

 

3

 

is ultimately
consummated) and ending one (1) year thereafter, the Company shall pay the
severance payment described in clause (x) above in a lump sum within five (5)
days of the Date of Termination unless the Executive provides the Company prior
written notice declining such lump sum payment in favor of payment in equal
installments as nearly as practicable on the normal payroll periods for
employees of the Company generally.

 

(ii)           For
a twelve (12) month period after the Date of Termination, the Company shall
administer and pay for the Executive’s life, disability, accident and health
insurance benefits substantially similar to those which the Executive is
receiving immediately prior to the Notice of Termination.

 

(b)           Notwithstanding
any contrary provision in any agreement relating to the grant by the Company or
any of its affiliates of any option to acquire shares of the Company’s or any
affiliate’s capital stock pursuant to such entity’s stock option plans (“Stock
Options”) or the issuance of capital stock or other equity interests of any
such entity pursuant to a restricted stock agreement or similar arrangement (“Restricted
Stock”), if during the period commencing with a definitive agreement for a
Change of Control (which transaction is ultimately consummated) and ending
one(1) year thereafter the Company terminates the Executive’s employment
without Cause or elects not to extend the Executive’s employment pursuant to
Section 2 hereof or the Executive resigns after a Constructive Termination, all
Stock Options and all shares of Restricted Stock which have not yet become
vested shall become vested in full on the Date of Termination.

 

(c)           The
payments provided in Section 6(a) shall be in addition to the payments and
benefits set forth in Section 7 hereof.

 

7.             Compensation
Other than Severance Payments.  If
the Executive’s employment shall be terminated by him or the Company for any
reason, the Company shall pay the Executive’s normal post-termination
compensation and benefits under, and in accordance with, the Company’s
retirement, insurance and other compensation or benefit plans or programs..

 

8.             Certain
Definitions.

 

(a)           Cause.  “Cause” shall mean the following:

 

(i)            A
good faith finding by the Board or the CEO that the Executive (w) has been
convicted of a felony, (x) has been convicted of a misdemeanor (excluding
traffic violations) to the extent such conviction could reasonably be
considered to compromise the best interests of the Company or any of its
Subsidiaries or render the Executive unfit or unable to perform its services
and duties hereunder, (y) has committed any other act or omission
involving dishonesty, disloyalty or fraud with respect to the Company or any of
its Subsidiaries or any of their customers or suppliers, or (z) has committed
an act involving unlawful or disreputable conduct in the context of Executive’s
employment which is likely to be harmful to the Company or its reputation;

 

(ii)           The
continued failure by the Executive to perform its duties in all material
respects for the Company or any of its Subsidiaries continuing for a period of
45 days following a demand for such performance by the Board or the CEO or a
material breach by the

 

4

 

Executive of its
obligations under this Agreement continuing uncured (if curable) for a period
of 45 days following notice from the Board or the CEO (other than any such
failure or breach resulting from the Executive’s incapacity due to physical or
mental illness), which demand shall identify in reasonable detail the manner
that that Executive has not performed its duties or has breached its
obligations (as applicable) and give the Executive an opportunity to respond;
provided, that, the foregoing shall not be construed to include the Executive’s
failure to achieve financial or operating objectives and goals established by
the Board or the CEO; or

 

(iii)          A
good faith finding by the Board or the CEO that the Executive engaged in (x)
misconduct materially injurious to the Company or any of its Subsidiaries or
the reputation of the Company or its Subsidiaroes or (y) gross negligence or
willful misconduct by the Executive which has a material adverse effect on the
Company or any of its Subsidiaries.

 

(b)           Change
of Control.  A “Change of Control”
shall be deemed to occur if (i) there shall be consummated (x) any consolidation
or merger of the Company in which the Company is not the continuing or
surviving corporation or pursuant to which shares of the Company’s Common Stock
would be converted into cash, securities or other property, other than a merger
of the Company in which the holders of the Company’s Common Stock immediately
prior to the merger hold more than fifty percent (50%) of the voting power of
the surviving corporation immediately after the merger, or (y) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of the Company, or
(ii) the stockholders of the Company shall approve any plan or proposal for
liquidation or dissolution of the Company, or (iii) any person (as such term is
used in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) who, on the date of this Agreement, does not own
five percent (5%) or more of the Company’s outstanding Common Stock on a
fully-diluted basis (a “5% Owner”) and is not controlling, controlled by or
under common control with any such 5% Owner, shall become the beneficial owner
(within the meaning of Rule 13d-3 under the Exchange Act) of fifty percent
(50%) or more of the Company’s outstanding Common Stock other than pursuant to
a plan or arrangement entered into by such person and the Company, or (iv)
within any twenty-four (24) month period, the following individuals cease for
any reason to constitute a majority of the number of directors then serving on
the Board: individuals who, on the date hereof, constitute the Board and any
new director (other than a director whose initial assumption of office is in
connection with an actual or threatened election contest, including but not
limited to a consent solicitation relating to the election of directors of the
Company) whose appointment or election by the Board or nomination for election
by the Company’s shareholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for
election was previously so approved or recommended.

 

(c)           Common
Stock.  “Common Stock” shall mean the
Company’s Common Stock, par value $0.01 per share.

 

(d)           Constructive
Termination.  “Constructive
Termination” shall mean the occurrence, without the Executive’s written
consent, of any of the following circumstances unless such circumstances are
fully corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

 

5

 

(i)            The
relocation of the Executive’s principal place of employment to a location
outside of the Washington, D.C. metropolitan area or the Company’s requiring
the Executive to be based anywhere other than such principal place of
employment (or permitted relocation thereof) except for required travel on the
Company’s business to an extent substantially consistent with the Executive’s
present business travel obligations;

 

(ii)           The
failure by the Company to pay to the Executive any portion of the Executive’s
then Base Salary or allocated bonus, incentive or other form of compensation or
to pay to the Executive any portion of an installment of deferred compensation
under any deferred compensation program of the Company, within seven (7) days
of the date such compensation is due; or

 

(iii)          A
material breach of this Agreement by the Company.

 

The Executive’s right to
terminate the Executive’s employment as a result of Constructive Termination
shall not be affected by the Executive’s incapacity due to physical or mental
illness.  The Executive’s right to
terminate the Executive’s employment as a result of a Constructive Termination
must be exercised within twenty (20) days after the Executive becomes aware of
the occurrence of any circumstance constituting Constructive Termination
hereunder.

 

(e)           Subsidiary.  “Subsidiary” shall mean any corporation of
which the Company owns securities having a majority of the ordinary voting
power in electing the board of directors directly or through one or more
subsidiaries.

 

9.             D&O
Insurance; Indemnification.

 

(a)           To
the fullest extent permitted by applicable law, the Company shall indemnify the
Executive against all expenses (including reasonable attorneys’ fees),
judgments, fines, and amounts paid in settlement, as actually and reasonably
incurred by the Executive in connection with any threatened or pending action,
suit, or proceeding, whether civil, criminal, administrative, or investigative
that the Executive is made a party to by reason of the fact that he is or was
performing services as an officer or director of the Company.  Such indemnification shall continue as to the
Executive even if he has ceased to be an employee, officer, or director of the
Company and shall inure to the benefit of his heirs and estate.

 

(b)           Any
costs, fees or expenses incurred by the Executive relating to indemnification
under the Company’s Certificate of Incorporation, as amended, shall be paid by
the Company in advance as soon as practicable but not later than three business
days after receipt of written request of the Executive; provided that the
Executive shall undertake to repay such amount to the extent that it is
ultimately determined by a court of competent jurisdiction that the Executive
is not entitled to indemnification. 
Subject to applicable law, the Executive’s right to indemnification or
advances from the Company shall be enforceable by the Executive in any court of
competent jurisdiction.  The burden of
proving that indemnification or advances are not appropriate shall be on the
Company.

 

6

 

(c)           The
provisions of this Section 9 are in addition to, and not in derogation of, the
indemnification provisions of the Company’s Certificate of Incorporation, as
amended, and the Indemnification Agreement between the Company and the
Executive (the “Indemnification Agreement”).

 

10.           No
Mitigation.  The Company agrees that,
if the Executive’s employment is terminated hereunder, the Executive is not
required to seek other employment or to attempt in any way to reduce any
amounts payable to the Executive by the Company.  Furthermore, the amount of any payment
provided hereunder shall not be reduced by any compensation earned by the
Executive.

 

11.           Confidential
Information.  The Executive
acknowledges that the information, observations and data obtained by him while
employed by the Company or any Subsidiary (including those obtained prior to the
date of this Agreement concerning the business or affairs of the Company, or
any of its Subsidiaries (collectively, “Confidential Information”)) are the
property of the Company and its Subsidiaries. 
Therefore, the Executive agrees that he shall not (during his employment
with the Company or at any time thereafter) disclose to any unauthorized person
or use for his own purposes any Confidential Information without the express
prior written consent of the Board, unless and to the extent that the aforementioned
matters: (a) become generally known to and available for use by the public
other than as a result of the Executive’s acts or omissions or (b) are required
to be disclosed by judicial process or law. 
The Executive shall deliver to the Company at the termination of his
employment, or at any other time the Company may request, all memoranda, notes,
plans, records, reports, computer tapes, printouts and software and other
documents and data (and copies thereof) relating to the Confidential
Information, Work Product (as defined below) or the business of the Company or
any Subsidiary which he may then possess or have under his control.

 

12.           Inventions
and Patents.  The Executive hereby
assigns to the Company all right,-title and interest to all patents and patent
applications, all inventions, innovations, improvements, developments, methods,
designs, analyses, drawings, reports and all similar or related information (in
each case whether or not patentable), all copyrights and copyrightable works,
all trade secrets, confidential information and know-how, and all other
intellectual property rights that are conceived, reduced to practice, developed
or made by the Executive while employed by the Company and its Subsidiaries and
that (i) relate to the Company’s or any Subsidiary’s actual or anticipated
business, research and development or existing or future products or services;
or (ii) are conceived, reduced to practice, developed or made using any
material equipment, supplies, facilities, assets or resources of the Company or
any Subsidiary (including but not limited to any intellectual property rights)
(“Work Product”).  The Executive shall
promptly disclose such Work Product to the Board and perform all actions
reasonably requested by the Board (whether during his employment with the
Company or at any time thereafter) to establish and confirm the Company’s
ownership (including, without limitation, assignments, consents, powers of
attorney, applications and other instruments).

 

13.           Noncompetition.  In further consideration of the compensation
to be paid to the Executive hereunder, the Executive acknowledges that in the
course of his employment with the Company he has become and shall become
familiar with the Company’s trade secrets and with other Confidential Information
concerning the Company and its Subsidiaries and that his services

 

7

 

have been and shall be of
special, unique and extraordinary value to the Company and its
Subsidiaries.  Therefore, the Executive
agrees that, during the Executive’s employment with the Company and for six (6)
months thereafter (collectively the “Noncompete Period”), he shall not, without
prior express written consent of the Board, directly or indirectly (whether for
compensation or otherwise) own or hold any interest in, manage, operate,
control, participate in, consult with, render services for, or in any manner
participate in any business engaged in any of the businesses or services
provided by the Company or its Subsidiaries during the employment with the
Company or the Noncompete Period (a “Competing Company”) or otherwise competing
with the businesses of the Company or its Subsidiaries, either as a general or
limited partner, proprietor, common or preferred shareholder, officer, director,
agent, employee, consultant, trustee, affiliate or otherwise.  The Executive acknowledges that the Company’s
and its affiliates’ businesses are conducted nationally and internationally and
agrees that the provisions in this Section 13 shall operate throughout the
United States and the world.  Nothing
herein shall prohibit the Executive from being a passive owner of not more than
five percent (5%) of the outstanding securities of any publicly traded company
that constitutes a Competing Company, so long as the Executive has no active
participation in the business of such company.

 

14.           Non-Solicitation.  During the Executive’s employment with the
Company and for twelve (12) months thereafter (collectively the “Nonsolicit
Period”), the Executive shall not directly or indirectly through another entity
(i) induce or attempt to induce any employee of the Company or any Subsidiary
to leave the employ of the Company or such Subsidiary, or in any way interfere
with the relationship between the Company or any Subsidiary and any employee
thereof, (ii) hire any person who was an employee of the Company or any
Subsidiary at any time during the twenty-four (24) months preceding the Date of
Termination of the Executive, or (iii) induce or attempt to induce any customer,
developer, client, member, supplier, licensee, licensor, franchisee or other
business relation of the Company or any Subsidiary to cease doing business with
the Company or such Subsidiary, or in any way interfere with the relationship
between any such customer, developer, client, member, supplier, licensee or
business relation and the Company or any Subsidiary (including, without
limitation, making any negative statements or communications about the Company
or any Subsidiary).

 

15.           Enforcement.  If, at the time of enforcement of any of
Sections 11 through 14 a court shall hold that the duration, scope or area
restrictions stated herein are unreasonable under circumstances then existing,
the parties agree that the maximum duration, scope or area reasonable under
such circumstances shall be substituted for the stated duration, scope or area
and that the court shall be allowed to revise the restrictions contained herein
to cover the maximum period, scope and area permitted by law.  Because the Executive’s services are unique
and because he has access to Confidential Information and Work Product, the
parties hereto acknowledge and agree that money damages would not be an
adequate remedy for any breach of this Agreement.  Therefore, in the event of a breach or threatened
breach of this Agreement, the Company or its successors or assigns may, in
addition to other rights and remedies existing in their favor, apply to any
court of competent jurisdiction for specific performance and/or injunctive or
other relief in order to enforce or prevent any violations of the provisions
hereof (without posting a bond or other security).  In addition, in the event of an alleged
breach or violation by the Executive of any of Sections 11 through 14, the
Noncompete Period and the

 

8

 

Nonsolicit Period shall
be tolled until such breach or violation has been duly cured.  The Executive agrees that the restrictions
contained in Sections 11 through 14 are reasonable.

 

16.           Limitation
on Acceleration of Benefits.

 

(a)           Notwithstanding
anything in this Agreement to the contrary, in the event it shall be determined
that any payment or distribution by the Company to or for the Executive’s
benefit (whether pursuant to this Agreement or otherwise, and including
insurance benefits, accelerated vesting, pro-rated bonus or other benefits
payable to the Executive hereunder) (a “Payment”) would be, but for this
Section 16, subject to the excise tax (the “Excise Tax”) imposed by Section
4999 of the Internal Revenue Code of 1986, as amended (the “Code”) as an “excess
parachute payment” within the meaning of Section 280G of the Code, or the
regulations thereunder, then the aggregate present value of amounts payable or
distributable to or for the Executive’s benefit pursuant to this Agreement
(such payments or distributions the “Agreement Payments”) shall be reduced to
an amount which maximizes the aggregate Agreement Payments without causing any
Payment to be nondeductible by the Company because of Section 280G of the Code.

 

(b)           All
determinations required to be made under this Section 16 shall be made by the
Company’s usual outside auditors (the “Accounting Firm”) which shall provide
detailed supporting calculations both to the Company and the Executive within 15
business days after the termination of the Executive’s employment for any
reason.  The Company and the Executive
shall furnish to the Accounting Firm such information and documents as the
Accounting Firm may reasonably request in order to make a determination under
this Section 16.  The Company shall bear
all costs the Accounting Firm may reasonably incur in connection with any
calculations contemplated by this Section 16. 
Absent manifest error, the determination by the Accounting Firm shall be
binding upon the Company and on the Executive. 
After consultation with the Executive, the Company shall reasonably
determine which and how much of the Agreement Payments shall be eliminated or
reduced consistent with the requirements of this Section 16 and shall notify
the Executive promptly of its determination.

 

(c)           As
a result of the uncertainty in the application of Section 280G of the Code at
the time of the initial determination by the Accounting Firm hereunder, it is
possible that Agreement Payments will have been made by the Company which
should not have been made (an “Overpayment”) or that additional Agreement
Payments which will not have been made by the Company could have been made (an “Underpayment”),
in each case, consistent with the calculations required to be made
hereunder.  In the event a related tax
deficiency is asserted by the Internal Revenue Service against the Company or
the Executive which the Accounting Firm concludes has a high probability of
resolution in favor of the government, then an Overpayment has been made.  Any such Overpayment shall be treated for all
purposes as a loan ab  initio to the Executive from the Company
which the Executive shall repay to the Company with interest at a rate of
interest sufficient to prevent the imputation of interest under Section 7872 of
the Code; provided, however, that no such loan shall be deemed to have been
made and no amount shall be payable by the Executive unless and to the extent
such deemed loan and payment would reduce the Executive’s obligation for Excise
Taxes or generate a refund of such taxes. 
In the event the Accounting Firm, based upon controlling precedent or
other substantial authority, determines

 

9

 

that an Underpayment has
occurred, any such Underpayment shall be promptly paid by the Company to or for
the benefit of the Executive.

 

17.           Successors;
Binding Agreement.

 

(a)           Successors.  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company, by
agreement in form and substance reasonably satisfactory to the Executive, to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and
any successor to its business and/or assets as aforesaid which executes and delivers
the agreement provided for in this Section 17 or which otherwise becomes bound
by all the terms and provisions of this Agreement by operation of law.

 

(b)           Binding
Agreement.  This Agreement and all
rights of the Executive hereunder shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.  If the Executive should die while any amounts
would still be payable to him hereunder if he had continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to the Executive’s devisee, legatee, or other designee
or, if there be no such designee, to the Executive’s estate.

 

18.           Representations.  The Executive hereby represents and warrants
to the Company that: (a) the execution, delivery and performance of this
Agreement by the Executive and the execution of the Company’s business plan by
the Executive do not and will not conflict with, breach, violate or cause a
default under any agreement, contract or instrument to which the Executive is a
party or any judgment, order or decree to which the Executive is subject, (b)
this Agreement constitutes the legal, valid and binding obligation of the
Executive, enforceable in accordance with its terms, (c) the Executive has not
and will not take any action that will conflict with, violate or cause a breach
of any noncompete, nonsolicitation or confidentiality agreement to which the Executive
is a party or by which the Executive is bound and (d) the Executive is a
resident of the Commonwealth of Virginia. 
The Executive hereby acknowledges and represents that he has carefully
reviewed this Agreement, that he has consulted with independent legal counsel
regarding his rights and obligations under this Agreement (or, after carefully
reviewing this Agreement, was given the opportunity to, but has freely decided
not to, consult with independent legal counsel), and that he fully understands the
terms and conditions contained herein.

 

19.           Notice.  All notices and other communications provided
for herein shall be in writing and shall be deemed to have been duly given,
delivered and received (a) if delivered personally or (b) if sent by registered
or certified mail (return receipt requested) postage prepaid, or by courier
guaranteeing next day delivery, in each case to the party to whom it is
directed at the following addresses (or at such other address for any party as
shall be specified by notice given in accordance with the provisions hereof,
provided that notices of a change of address shall be effective only upon
receipt thereof).  Notices delivered
personally shall be effective on the day so delivered, notices sent by
registered or certified mail shall be effective three (3) days after

 

10

 

mailing, and notices sent
by courier guaranteeing next day delivery shall be effective on the next day
after deposit with the courier:

 

	
  If to the Executive:

  	
  PAUL R. BRUBAKER

  
	
   

  	
  9602 Judge Court

  
	
   

  	
  Vienna, Virginia 22181

  
	
   

  	
   

  
	
  If to the Company:

  	
  SI International, Inc.

  
	
   

  	
  12012
  Sunset Hills Road, Suite 800

  
	
   

  	
  Reston,
  Virginia 20190

  
	
   

  	
   

  
	
   

  	
  Attention: General
  Counsel

  

 

20.           Prior
Agreement.  All prior agreements
between the Company and the Executive with respect to the employment of the
Executive, with the exception of an indemnification agreement between the
Company and the Executive, if any, are hereby superseded and terminated
effective as of the date hereof and shall be without further force or effect.

 

21.           Miscellaneous.  No provisions of this Agreement may be
modified, waived or discharged, unless such waiver, modification or discharge
is agreed to in writing signed by the Executive and a duly authorized officer
of the Company.  No waiver by either
party hereto at any time of any breach by the other hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not set forth expressly in this Agreement.  The use herein of the masculine, feminine or
neuter forms shall also denote the other forms, as in each case the context may
require.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the Commonwealth of Virginia, without regard to its conflict of laws
provisions.  All amounts payable to the
Executive as compensation hereunder shall be subject to customary withholding
by the Company.

 

22.           Validity.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.

 

23.           Survival.  Notwithstanding any termination of the
Executive’s employment under this Agreement, Sections 6 through 24 hereof shall
survive and continue in full force until the performance of the obligations
thereunder, if any, in accordance with their respective terms.

 

24.           Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

[Signatures appear on
following page]

 

11

 

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

 

	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  SI International, Inc.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  RAY J. OLESON

  	
   

  
	
   

  	
  Name:

  	
  Ray J. Oleson

  	
   

  
	
   

  	
  Title:

  	
    Chairman
  and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
      /s/
  PAUL R. BRUBAKER

  	
   

  
	
   

  	
  PAUL R. BRUBAKER

  
							

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]