Document:

Exhibit 10.5

AMENDMENT NO. 4 TO

 

STOCKHOLDERS’ AGREEMENT

 

OF AUGUST 27, 1996

 

 

THIS AMENDMENT NO.
4 TO STOCKHOLDERS’ AGREEMENT OF AUGUST 27, 1996 (this “Amendment No. 4”)
is made and entered into as of the first day of March, 2003, between (i)
STANLEY, INC., a Delaware corporation (the “Corporation”), and (ii) the
undersigned Stockholder of the Corporation and (iii) the other Stockholders of
the Corporation.

WHEREAS, the
undersigned Stockholder and each other Stockholder of the Corporation (other
than qualified benefit plans maintained by the Corporation) are parties to the
Stockholders’ Agreement of August 27, 1996 of the Corporation, as amended by
Amendment No.1 to Stanley, Inc. Stockholders’ Agreement, dated August 31, 2000,
as further amended by Amendment No.2 to Stanley, Inc. Stockholders’ Agreement,
dated September 30, 2001, as further amended by the Amendment No.3 to Stanley,
Inc. Stockholders’ Agreement, dated as of October 1, 2002 (the “Stockholders’
Agreement”);

WHEREAS, certain
Stockholders desire to make transfers of Stock to certain Family Trusts (as
defined below);

WHEREAS, the Board
of Directors of the Corporation has approved certain amendments to the
Stockholders’ Agreement necessary to permit such transfers of Stock; and

WHEREAS, such
amendments are required to be in writing and signed by all of the parties to
the Stockholders’ Agreement.

NOW THEREFORE, in
consideration of the mutual covenants, agreements and promises hereinafter set
forth and of other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows:

 

1

 

1.         Definitions.  Capitalized terms used but not otherwise
defined herein shall have the meanings given such terms in the Stockholders’
Agreement.  The following terms shall
have the following meanings:

a.         “Approved Family Trust” means a Family
Trust that meets either of the following requirements: (i) the Family Trust is
a revocable grantor trust of which the transferring Stockholder is the grantor
and retains sole power to vote and to dispose of any Stock held by such Family
Trust pursuant to this Agreement; or (ii) the controlling documents of the
Family Trust contain provisions approved by a majority vote of the Board of
Directors acting in its sole and absolute discretion providing that the sole
power to vote, or to direct the voting of, and to dispose, or to direct the
disposition, of any Stock held by such Family Trust pursuant to this Agreement
may only be exercised by officers or employees of the Corporation approved by
the Board of Directors.

b.         “Family Trust” means a trust,
corporation, limited partnership or limited liability company, the exclusive
beneficiaries or beneficial owners of which are the Stockholder, members of the
Stockholder’s immediate family and lineal descendants of such Stockholder and
such members of the Stockholder’s immediate family.

2.         Amendment to Stockholders’ Agreement.  The Stockholders’ Agreement is hereby amended
as follows:

a.         Section 3B of the Stockholders’
Agreement is hereby amended so as to read in its entirety as follows:

                                        B.    Notwithstanding § 3A hereof, the Stockholder may sell, grant,
transfer or deliver any shares of Stock to any one or more employees of the
Corporation, a qualified benefit plan maintained by the Corporation, the
Corporation, an Approved Charitable Organization or an Approved Family Trust,
provided that except with respect to a sale, grant, transfer or delivery of any
shares of Stock to an Approved Family Trust, the approval of the Board of
Directors of the Corporation of such sale, grant, transfer, or delivery is
obtained by the affirmative vote of the members of the Board of Directors.  The Stock transferred to any one or more
employees of the Corporation or to an Approved Charitable Organization or a
Family Trust shall continue to be subject to the provisions of this Agreement;
provided that, in the case of a transfer to an 

 

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Approved Charitable
Organization or a Family Trust, each reference herein to the death, Permanent
Disability or termination of employment of the Stockholder, including such
references in Articles 5, 6 and 7, shall be deemed continued references to the
Stockholder who transferred the Stock to each Approved Charitable Organization
or Family Trust.

b.           Section 11 of the Stockholders’
Agreement is hereby amended by adding the following sentence at the end of
Section 11:

Any transfer of
beneficial ownership of Stock made or attempted in violation of this Agreement
shall be null and void and of no force and effect.

3.         Effect of Amendment No.4.  Upon execution by the undersigned
Stockholder, the foregoing amendments will be effective as of March 1,
2003.  Upon effectiveness of the
foregoing amendment, each reference in the Stockholders’ Agreement to the “Agreement,”
or “hereunder” or words of like import shall mean and be a reference to the
Stockholders’ Agreement, as amended by the foregoing amendment.  Except as otherwise expressly provided
herein, all of the terms, conditions and provisions of the Stockholders’
Agreement shall remain the same.  It is
acknowledged and agreed by the Corporation and the undersigned Stockholder that
the Stockholders’ Agreement, as amended hereby, shall continue in force and
effect, and that the Stockholders’ Agreement and this document shall be read
and construed as one instrument.

4.         Miscellaneous

A.    The use of
either gender herein shall be deemed to be or include the other genders and the
use of the singular herein shall be deemed to be or include the plural and vice
versa, wherever appropriate.

B.    The
Stockholders’ Agreement as amended by this Amendment No.4, sets forth all of
the promises, agreements, conditions, understandings, covenants, warranties and
representations among the parties hereto with respect to the shares of Stock
held thereunder, and there are no promises, other than as set forth therein and
herein.  Any and all prior agreements
with respect to such shares of Stock are hereby revoked.  The Stockholders’ Agreement, as amended
hereby, is, and is intended by the parties to be, an integration of any and all
prior agreements or understandings, oral or written, with respect to such
shares of Stock.

 

3

 

C.    This
Amendment No.4 shall be construed and enforced in accordance with the laws of
the State of Delaware, without regard to its otherwise applicable conflict of
laws principles.

D.    The
headings and other captions in this Amendment No.4 are for convenience of
reference only and shall not be used in interpreting, construing or enforcing
any of the provisions of this Amendment No.4.

E.     This
Amendment No.4 is intended to be executed in counterparts, each of which is
deemed to be an original, and all of which, taken together, constitute one
instrument.

 

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment No.4 as of the day and
year first hereinabove written.

 

	
  WITNESS:

  	
   

  	
  CORPORATION:

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
  STANLEY, INC.,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ William E. Karlson

  	
   

  	
  By:

  	
  Philip O. Nolan

  
	
  William E. Karlson

  	
   

  	
   

  	
  Philip O. Nolan

  
	
  Secretary

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  STOCKHOLDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
  Printed Name:

  	
   

  
							

 

 

4Exhibit 10.8

CHANGE
IN CONTROL AND SEVERANCE AGREEMENT

 

This
Severance and Change in Control Agreement (“Agreement”) is entered into by and between
Brian John Clark (“Clark” or “Employee”) and Stanley Associates, Inc. (“Stanley”
or “the Company”), including any/all affiliate or successor companies.

 

WHEREAS Clark has
accepted an offer of employment, the terms of which are detailed in an Offer
Letter, dated March 20, 2006, and has accepted the terms and conditions governing
employment with Stanley generally, in exchange for certain additional benefits;

 

NOW THEREFORE, in consideration of the mutual
covenants, agreements and representations contained herein, the adequacy of
which is hereby acknowledged, the parties agree as follows:

 

1.             Nature
of Employment

 

Clark understands and agrees that this Agreement does not change his
status as an at-will employee of Stanley and he is not promised employment for
a specific term as a result of this Agreement. 
Clark will commence employment at a mutually convenient date, but no
later than four (4) weeks from the date of the offer letter, in the role of
Chief Financial Officer, reporting to Philip O. Nolan, President and Chief
Executive Officer.

 

2.             Term
of Agreement

 

This Agreement shall become effective on the date fully executed by all
parties (“Effective Date”), and will terminate on the second anniversary of the
Effective Date.

 

3.             Severance
and Change in Control Payment

 

In exchange for signing this Agreement, Clark may be eligible to
receive either a severance payment, if his
employment is terminated involuntarily by the Company in accordance with the
terms of provision 3(A) below, or a change in
control payment, if a triggering “change in control” occurs in accordance with
the terms of provision 3(B) below.

 

A.            Severance
Payment:  Clark will be eligible for a
severance payment, equal to $250,000 in the gross amount, in the event his
employment is terminated by the Company within two (2) years of the Effective
Date for a reason other than cause, as defined below.  Clark’s eligibility for this severance is
expressly conditioned upon his execution of a general release agreement
provided to him by Stanley at the time any payment may become due under this
Paragraph.  Clark agrees that Stanley
shall make any severance payment in accordance with Stanley’s regular payroll
practices, including withholding such tax, payroll and other amounts from the payment.  Clark understands that, by signing this
Agreement, he is electing to receive any severance payment under the terms set
forth herein.

 

For the purposes of this Paragraph, “cause” means (a) gross misconduct
or fraud in the performance of employment; (b) conviction or guilty plea with
respect to any felony (except for motor vehicle violations); (c) the material
breach of any written agreement between Clark and the Company or of any written
code of conduct; or (d) continued abandonment of employment with the Company,
which remains uncorrected, or which recurs, after written notice delivered to
Clark of such breach of abandonment and a reasonable opportunity to correct
such breach or abandonment.  The
severance payment is not applicable in the event of an involuntary termination
resulting from a “change in control”, which is covered in provision 3(B) below.

 

 

 

 

B.            Change
in Control Payment:  Clark will be
eligible to receive a payment, equal to $500,000, in the event of a “Change in
Control” of the Company within two (2) years of the Effective Date of this
Agreement.   For the purposes of this
Agreement, the following definitions apply:

 

“Person” shall have the meaning defined in Sections 13(d) of 14(d) of
the Securities Exchange Act of 1934, as amended.

 

“Beneficial Owner” and “Beneficial Ownership” shall have the meaning
defined in, and shall be determined pursuant to, Rule 13d-3 under the
Securities Exchange Act of 1934, as amended.

 

“Change in Control” means one of the following:

 

                (i)  the closing of a merger or consolidation of
the Company with any other entity, other than (a) a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity), in combination with the ownership of any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, at least 50%
of the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation, or
(b) a merger or consolidation effected to implement a recapitalization of the
Company (or similar transaction) in which no Person (other than another
Company) acquires more than 20% of the combined voting power of the Company’s
then outstanding securities;

 

                (ii)  any Person (other than another Company or
trustee or other fiduciary holding securities under an employee benefit plan of
a Company) is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned
by such Person any securities acquired directly from the Company) representing
50% or more of the combined voting power of the Company’s then outstanding
securities; or

 

                (iii)  a sale or transfer of substantially all of
the assets of the Company, or approval of such a sale or transfer by the
shareholders or members of the Company;

 

Provided, however, that a Change in Control does
not include the public issuance of securities on a national securities exchange
pursuant to a registration statement filed with and declared effective by the
Securities and Exchange Commission.

 

4.             Confidentiality
of Agreement and Negotiations

 

Clark agrees, for the period of his employment with Stanley and anytime
thereafter, not to disclose, publicize, or publish, or to refer to, or in any
other manner to communicate to any person, other than immediate family members,
his attorney, his tax advisors, or as required by law or court order, the terms
of this Agreement or the substance of the negotiations regarding this
Agreement, except in connection with any legal proceeding brought to enforce or
challenge the enforceability of this Agreement or as required by law.

 

5.             Confidentiality and Use

 

Without the written approval of Stanley, Employee will not, during the
period of his employment with Stanley, or any time thereafter, disclose to
others or use, for his own benefit or otherwise, any information, knowledge or
data Employee receives or develops during his period of employment with

 

 

2

 

Stanley which is considered by Stanley to be confidential and
proprietary, or which Employee knows or should know to be confidential or
proprietary, including without limitation information contained in financial
documents and plans, costs and pricing data, corporate objectives, business
processes, business plans, customer lists, or otherwise, or which Stanley has
received in confidence from others, nor will Employee disclose to Stanley any
confidential information of others.

 

6.             State
Law

 

This Agreement shall be construed and governed by the laws of the
Commonwealth of Virginia and without regard to such Commonwealth’s choice of
law provisions.  Any action brought under
this agreement must be filed in a court of competent jurisdiction in the
Commonwealth of Virginia

 

7.             Acknowledgement

 

By signing below, Employee acknowledges that he has received, read and
understands the Offer of Employment.

 

IN WITNESS WHEREOF, and
intending to be legally bound, the parties have signed below.

 

 

	
  BRIAN JOHN CLARK

  
	
   

  
	
  Signature: 

  	
  /s/ Brian John Clark

  	
   

  
	
   

  
	
  Dated: 

  	
  March 30, 2006

  	
   

  
	
   

  
	
   

  
	
   

  
	
  STANLEY ASSOCIATES, INC.

  
	
   

  
	
  By 

  	
  /s/ Scott D. Chaplin

  	
   

  
	
   

  
	
  Its: General Counsel

  
	
   

  
	
  Dated:

  	
  April 25, 2006

  	
   

  
						

 

 

3

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