Document:

EXHIBIT 10.102

 Exhibit 10.102 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of this
1st day of January, 2005 by and between Telos Corporation, a Maryland corporation, for itself and its subsidiary companies, divisions, affiliates and operating entities (the “Company”) and John B. Wood (the “Executive”).

 WITNESSETH THAT: 
 WHEREAS, the Company and the Executive desire to enter into this Agreement pertaining to the employment of the Executive by the Company. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below and other good and valuable consideration, the receipt of which is hereby acknowledged, the Executive and the Company hereby agree as follows:

 1. Performance of Services. The Executive’s employment with the Company shall be subject to the following: 
  

	(a)	Subject to the terms of this Agreement, the Company hereby agrees to employ the Executive as its President and Chief Executive Officer during the Agreement Term (as defined below).

  

	(b)	During the Agreement Term, the Executive shall devote full time (reasonable sick leave and vacations excepted) and best efforts, energies and talents to serving the Company.

  

	(c)	The Executive agrees to perform his duties faithfully and efficiently subject to the direction of the Company. The Executive will have such authority, power, responsibilities and
duties as are inherent in such position and necessary to carry out such responsibilities and the duties required hereunder. 

  

	(d)	Notwithstanding the foregoing, during the Agreement Term, the Executive may devote reasonable time to activities other than those required under this Agreement, including activities
involving professional, charitable, educational, religious and similar types of organizations, speaking engagements, membership on the boards of directors of other profit or not-for-profit organizations, and similar activities, to the extent that
such other activities do not, in the judgment of the Company, inhibit or prohibit the performance of the Executive’s duties under this Agreement or conflict in any material way with the Company’s business. 

  

	(e)	The Executive shall not be required to perform services under this Agreement during any period in which determined as Disabled (as defined below). 

  

	(f)	The “Agreement Term” shall be the period beginning on January 1, 2005, for a one year period, and thereafter automatically renewing for consecutive one year periods
unless terminated in accordance with the provisions hereof. 

 2. Compensation and Benefits. While the Executive is employed by the Company pursuant to this
Agreement, the Company shall compensate him for his services as follows: 
  

	(a)	Base Salary. During the Agreement Term the Executive shall receive an annual base salary of no less than $350,000 (the “Salary”), payable in accordance with the
Company’s payroll cycle. 

  

	(b)	Annual Bonus. The Company shall provide to the Executive an annual bonus opportunity, based upon the Company’s annual bonus plan, and performance achievements of the
Company and of the Executive. Any annual bonus for the Executive in each fiscal year shall be determined by the Management Development and Compensation Committee, subject to approval by the Board of Directors, and shall be based upon the annual
bonus plan actual performance achieved by the Company and by the Executive in such fiscal year as compared with the planned/expected performance of the Company and the Executive for such fiscal year. Any such annual bonus shall be paid to the
Executive as soon as practicable following its approval. 

  

	(c)	Stock Options. The Executive shall be eligible for additional stock option grants under any of the Company’s stock option plans in an amount determined by the Management
Development and Compensation Committee, subject to approval by the Board of Directors, and which is commensurate with the level of option awards made to other senior executives of the Company. Such options shall be subject to the terms and
conditions of the applicable stock option plan and the standard option agreement adopted by the Company for use under the stock option plan. 

  

	(d)	Expense Reimbursement. While the Agreement is in effect, the Company will reimburse the Executive for all reasonable and necessary expenses incurred by the Executive in
connection with the performance of his duties for the Company. Such reimbursement is subject to the submission to the Company by the Executive of appropriate documentation and/or vouchers, and will be made in accordance with the customary procedures
of the Company for expense reimbursement, as may from time to time be established. 

  

	(e)	Vacation. While the Agreement is in effect, in each fiscal year of the Company, the Executive shall be entitled to 6 weeks paid vacation time, which vacation shall be
cumulative from year to year until corporate maximum occurs. 

  

	(f)	Other Benefits. The Executive shall be eligible to participate in any and all plans maintained by the Company to provide benefits for its salaried senior executives, and,
including, without limitation, any pension, profit sharing or other retirement plan, any life, accident, disability, medical, hospital or similar group insurance program and any other benefit plan, subject to the normal terms and conditions of such
plans. 

 3. Termination. The Executive’s employment with the Company pursuant to this Agreement may terminate
under the following circumstances. 
  

	(a)	Death. The Executive’s employment hereunder shall terminate upon his death. 

  

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	(b)	Disability. If the Executive becomes Disabled, the Company may terminate Executive’s employment. For purposes of this Agreement, the Executive shall be deemed to be
“Disabled” if (i) eligible for disability benefits under the Company’s long-term disability plan, or (ii) has a physical or mental disability which renders Executive incapable, after reasonable accommodation, of performing
substantially all of Executive’s duties hereunder for a period of 180 days (which need not be consecutive) in any 12-month period. In the event of a dispute as to whether the Executive is Disabled, the Company may, at its expense, refer
Executive to a licensed practicing physician of the Company’s choice and the Executive agrees to submit to such tests and examination as such physician shall deem customary and appropriate. 

  

	(c)	Cause. The Company may terminate the Executive’s employment hereunder immediately and at any time for Cause by written notice to the Executive detailing the basis for
the Cause termination. For purposes of this Agreement, “Cause” means (i) gross negligence or willful and continued failure by the Executive to substantially perform his duties as an employee of the Company (other than any such failure
resulting from incapacity due to physical or mental illness); (ii) Executive’s dishonesty, fraudulent misrepresentation, willful misconduct, malfeasance, violation of fiduciary duty relating to the business of the Corporation; or
(iii) conviction of a felony. 

  

	(d)	Without Cause. The Company may terminate the Executive’s employment hereunder immediately and at any time without Cause by written notice to the Executive.

  

	(e)	Termination by Executive. The Executive may terminate his employment hereunder at any time for any reason by giving the Company prior written notice not less than 30 days
prior to such termination, or in the event of a change of control of the Company whereby greater than fifty percent (50%) of the outstanding stock of the Company is transferred to other individual(s) or entity(s), and there is a change in the
majority of the Board of Directors of the Company. 

  

	(f)	Mutual Agreement. This Agreement may be terminated at any time by mutual written agreement of the parties. 

  

	(g)	Date of Termination. “Date of Termination” means the last day that the Executive is employed by the Company under the terms of this Agreement, provided that
Executive’s employment is terminated in accordance with one of the foregoing provisions. 

 4. Rights Upon
Termination. The Executive’s right to payments and benefits under this Agreement for periods after his Date of Termination shall be determined in accordance with the following: 
  

	(a)	If the Executive’s Date of Termination occurs for Cause, or if the Executive terminates the Agreement in accordance with paragraph 3(e) above, the Company shall pay to the
Executive: 

  

	 	(i)	A lump-sum payment equivalent to the remaining unpaid portion of the Executive’s Salary for the period ending on the Date of Termination. 

  

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	 	(ii)	A lump-sum payment for all accrued and unused vacation days. 

  

	 	(iii)	Any other payments or benefits to be provided to the Executive by the Company pursuant to any employee benefit plans or arrangements adopted by the Company, to the extent such
payments and benefits are earned and vested as of the Date of Termination, or are required by law to be offered for periods following the Executive’s Date of Termination. 

  

	(b)	If the Company terminates the Executive without Cause, or due to Disability, or due death, then in addition to the amounts payable under the preceding paragraphs, the Executive
shall be entitled to: 

  

	 	(i)	A payment equivalent to 24 months of salary, payable in a lump sum or payable in accordance with the Company’s payroll cycle. 

  

	 	(ii)	Immediate vesting of the unvested portion of any outstanding stock option, consistent with the provisions of the applicable stock option plan. 

  

	 	(iii)	Continued coverage under the medical, dental, short and long-term disability, life and other similar benefit programs for the 24 month period listed above, as if he were still
employed by the Company. If, pursuant to the terms and conditions of such benefit programs, such continued coverage cannot be provided, Executive shall be entitled to payment of the cash equivalent of such benefits. 

 5. Non-Competition. During the Agreement Term and for a period of 24 months subsequent to the date of termination, the Executive shall not,
without the prior written consent of the Company, directly or indirectly, (i) own or acquire in any manner any interest (other than the ownership solely for investment purposes of not more than five percent of the shares of any corporation, the
shares of which are publicly and regularly traded on a national securities exchange or in the over-the-counter market) in any person, firm, partnership, company, association or other entity that competes with the Company in the business of
enterprise security and integration solutions and services to customers in the United States government and industry (the “Business”), (ii) be employed by, or serve as an employee, agent, officer, director of, any person, firm,
partnership, corporation or provider of services competitive with the Business of the Company, or (iii) provide financial, technical, marketing or other assistance or act as a representative, broker, director, officer, employee, advisor,
consultant or agent of any person or entity that is competitive with the Business of the Company. 
 6. Confidentiality. The Executive
promises that he will receive, develop and hold Confidential Information (as defined below) in strict confidence and will not use or disclose Confidential Information, or make copies of any documents containing Confidential Information, except in
furtherance of the Business of the Company, unless the Company provides prior written 

  

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consent. The Executive further agrees to use reasonable efforts to safeguard the Confidential Information and protect it from disclosure, misuse, loss or
theft. The foregoing promises of confidentiality shall not apply if and to the extent that the Executive is ordered by a court or other governmental agency to disclose Confidential Information, provided the Executive has given the Company prompt
written notice of the order or subpoena and provides all reasonable cooperation necessary to limit such disclosure and to protect the confidentiality of any Confidential Information so disclosed. “Confidential Information” means all
nonpublic information (whether or not specifically labeled or identified as confidential), that has been or is disclosed to, developed or learned by the Executive as a result of employment with the Company and that relates to the business, finances,
products, services, customers, research or development of the Company or third parties with whom the Company does business or from whom the Company receives information. The definition of Confidential Information includes, but is not limited to, the
following: access codes, security devices and naming conventions used in software and hardware systems; databases of information; other proprietary software; proprietary specifications for hardware and software platforms, the identity and
transactions with customers, clients and suppliers; marketing product and service plans, objectives and strategies; tactical objectives, approaches, and competitive advantages; internal financial information; specialized marketing programs related
to products and services offered or under development by the Company (or any parent or affiliate of the Company); data and reports related to marketing programs; proprietary systems and operations manuals; proprietary training manuals; proprietary
technical and scientific know-how, data and strategies; the Company’s information gathering processes and compilations of information; and information disclosed to the Company by its business partners, licensees, customers and clients in
reliance on promises that its confidentiality will be preserved. 
 7. Non-Solicitation. 
 (a) The Executive recognizes that the Company incurs significant expense in training employees to provide services in accordance with the Company’s
Business and that the Company will disclose Confidential Information to each such employee. The Executive promises that, during the Agreement Term and for a period of 24 months after expiration of the Agreement Term, the Executive will not, without
the prior written consent of the Company, knowingly hire, directly or indirectly, any person then employed by the Company, or knowingly solicit, directly or indirectly, such a person either to terminate or diminish employment with the Company, or to
work for any other person or entity, whether or not a competitor, and the Executive shall not approach any such employee for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.

 (b) The Executive also acknowledges that the Company incurs significant expense in developing business partners, licensees, customers and
clients. The Executive promises that, during the Agreement Term and for a period of 24 months after the Agreement Term ends, the Executive will not, without the prior written consent of the Company, knowingly directly or indirectly, solicit any
customer, business partner, licensee or client of the Company to terminate or diminish its business relationship with the Company or to purchase any product or service that is or may be used as a substitute for any product or service of the Company,
and the Executive shall not knowingly approach any such customer, supplier, lessor or lessee for such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity. 
  

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 8. Restrictions Reasonable. Executive agrees that the restrictions set forth in sections 5
(Non-Competition), 6 (Confidentiality), and 7 (Non-Solicitation) are reasonable, proper and necessitated by the legitimate business interests of the Company, and do not constitute an unlawful or unreasonable restraint upon Executive’s ability
to earn a living. Executive acknowledges that it may be impossible to assess the monetary damages occurred by Executive’s violation of sections 6, 7 or 8 of this Agreement, that violations of those sections will be material breaches of this
Agreement and will cause irreparable injury to the Company. Accordingly, Executive agrees that Company will be entitled, in addition to all other rights and remedies which may be available, to an injunction in joining and restraining Executive and
any other involved party from committing a violation of this Agreement, and Executive consents to the issuance and entry of such injunction. In addition, Company will be entitled to such damages as it can demonstrate that it sustained by reason of
the violation of this Agreement by the Executive and/or others. The parties agree that in the event of any litigation to enforce or interpret this Agreement, the prevailing party will be entitled to recover all costs, including reasonable
attorney’s fees, from the non-prevailing party. In the event Company enforces this section through a Court Order, Executive agrees that the restriction on Executive following termination of employment set forth in this Agreement shall remain in
effect for a period of one year from the date of the final Court Order enforcing this Agreement. 
 9. Return of Materials. Upon the
Executive’s Date of Termination, or at any time upon the Company’s request, the Executive (or if deceased, the Executive’s personal representative) shall promptly deliver to the Company without retaining copies, all tangible things
that are or contain Confidential Information. The Executive or such personal representative shall also promptly deliver to the Company all computer print-outs, books, software manuals and directions, floppy disks and other such media for storing
software and information, work papers, files, customer lists, supplier lists, employee lists, telephone and/or address books, Rolodex or equivalent cards, memoranda, appointment books, calendars, employee manuals, sales aides, keys and other
tangible things provided to the Executive by the Company, or authored in whole or in part by the Executive within the scope of his employment by the Company, even if they do not contain Confidential Information; provided that the Executive
shall not be required to deliver personal files and personal information unrelated to the Company’s business. At the time of such deliveries, the Executive shall disclose to the Company any passwords or other knowledge required to access and
use any of the foregoing. The Executive acknowledges that he does not have, and will not acquire, any ownership rights in such materials and things. 
 10. Nonalienation. The interests of the Executive under this Agreement are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by
the Executive’s creditors or beneficiaries. 
 11. Successors. This Agreement shall be binding upon, and inure to the benefit of,
the Company and its successors and assigns and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business. 
 12. Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by
registered or certified mail, return 

  

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receipt requested, postage prepaid, or sent by facsimile or prepaid overnight courier to the parties at the addresses set forth below (or such other
addresses as shall be specified by the parties by like notice): 
 To the Company: 
 Telos Corporation 
 19886 Ashburn Road

 Ashburn, VA 20147 
 Attn.:
General Counsel 
 To the Executive: 
 John B.
Wood 
 3074 Rectortown Road 
 P.O. Box F 
 Rectortown, VA 20140 
 13. Severability. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, and this Agreement will be
construed as if such invalid or unenforceable provision were omitted (but only to the extent that such provision cannot be appropriately reformed or modified). 
 14. Waiver of Breach. No waiver of either party hereto of a breach of any provision of this Agreement by the other party will operate or be construed as a waiver of any subsequent breach by such other party.
The failure of either party to take any action by reason of such breach will not deprive such party of the right to take action at any time while such breach continues. 
 15. Amendment. This Agreement may be amended or canceled only by mutual agreement of the parties in writing without the consent of any other person. So long as the Executive lives, no person, other than the
Executive and the Company, shall have any rights under or interest in this Agreement or the subject matter hereof. 
 16. Choice of Law
and Forum Selection. This Agreement shall be governed by the laws of the Commonwealth of Virginia as to its validity, interpretation and enforcement. Should it be necessary for the Company to file suit, exclusive jurisdiction will lie in the
courts of the Commonwealth of Virginia. 
 17. Survival of Agreement. Except as otherwise expressly provided in this Agreement, the
rights and obligations of the parties to this Agreement shall survive the termination of the Executive’s employment with the Company. 
 18. Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, if any, between the parties relating to the
subject matter hereof. 
  

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 19. Acknowledgement by Executive. The Executive represents to the Company that he is knowledgeable
and sophisticated as to business matters, including the subject matter of this Agreement, that he has read this Agreement and that he understands its terms. The Executive acknowledges that, prior to assenting to the terms of this Agreement, he has
been given a reasonable time to review it, to consult with counsel of his choice, and to negotiate at arm’s-length with the Company as to the contents. The Executive and the Company agree that the language used in this Agreement is the language
chosen by the parties to express their mutual intent, and that no rule of strict construction is to be applied against either party hereto. 
 IN WITNESS WHEREOF, the Executive has hereunto set his hand, and the Company has caused these presents to be executed in its name and on its behalf, as of the date above first written. 
  

									
	EXECUTIVE	 		 	TELOS CORPORATION,
a Maryland corporation
				
	/s/ John Wood	 		 	By:	 	/s/ David Borland
	John B. Wood	 		 	Name:	 	David Borland
	Executive	 		 	Title:	 	Member Board of Directors

  

 8EXHIBIT 10.103

 Exhibit 10.103 
 WAIVER AND NINTH AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT 
 THIS WAIVER AND NINTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of April 10, 2006, by and among
TELOS CORPORATION, a Maryland corporation (“Parent”), XACTA CORPORATION, a Delaware corporation (“Xacta”; Parent and Xacta are referred to hereinafter each individually as a “Borrower”, and individually
and collectively, jointly and severally, as the “Borrowers”), TELOS DELAWARE, INC., a Delaware corporation (“Telos-Delaware”), UBIQUITY.COM, INC., a Delaware corporation (“Ubiquity”), TELOS.COM, INC.,
a Delaware corporation (“Telos.com”), TELOS INTERNATIONAL CORP., a Delaware corporation (“TIC”), TELOS INTERNATIONAL ASIA, INC., a Delaware corporation (“TIA”), SECURE TRADE, INC., a
Delaware corporation (“STI”), KUWAIT INTERNATIONAL, INC., a Delaware corporation (“KII”), TELOS INFORMATION SYSTEMS, INC., a Delaware corporation (“TIS”), TELOS FIELD ENGINEERING, INC., a Delaware
corporation (“TFE”), and TELOS FEDERAL SYSTEMS, INC., a Delaware corporation (“TFS”; Telos-Delaware, Ubiquity, Telos.com, TIC, TIA, STI, KII, TIS, TFE and TFS are referred to hereinafter each individually as a “Credit
Party” and collectively, jointly and severally, as the “Credit Parties”), and WELLS FARGO FOOTHILL, INC. (formerly known as Foothill Capital Corporation), as agent (“Agent”) for the Lenders (defined below) and as a
Lender. 
 WHEREAS, Borrowers, Credit Parties, Agent and certain other financial institutions from time to time party thereto (the
“Lenders”) are parties to that certain Loan and Security Agreement dated as of October 21, 2002 (as amended from time to time, the “Loan Agreement”); 
 WHEREAS, the Companies failed to maintain minimum EBITDA for the 12 month periods ended October 31, 2005, November 30,
2005, December 31, 2005, January 31, 2006 and February 28, 2006, which resulted in breaches of Section 7.20(a)(i) of the Loan Agreement and therefore Events of Default under Section 8.2 of the Loan Agreement
(collectively, the “Existing Defaults”); and 
 WHEREAS, subject to the terms and conditions contained herein, Agent and Lenders
have agreed to waive the Existing Defaults and the Borrowers, Credit Parties, Agent and Lenders have agreed to amend the Loan Agreement in certain respects. 
 NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto agree as follows: 
 1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to such terms in the Loan Agreement. 
 2. Waiver. Subject to the satisfaction of the conditions set forth in Section 5 hereof, Agent and Lenders hereby waive the Existing Defaults.
The foregoing 

 
shall not constitute a waiver of any other Event of Default that may exist, or a waiver of any future Event of Default that may occur. 
 3. Amendments to Loan Agreement. Subject to the satisfaction of the conditions set forth in Section 5 hereof, the Loan Agreement is amended
in the following respects: 
 (a) The definition of “Availability Block” as set forth in Section 1.1 of the Loan Agreement is
amended and restated in its entirety, as follows: 
 “Availability Block” means an amount equal to $500,000;
provided, that Availability Block shall mean an amount equal to $0 for the period from April 10, 2006 through and including July 30, 2006. 
 (b) The following defined terms are added to Section 1.1 of the Loan Agreement in their respective alphabetical orders therein: 
 “Additional Availability Amount” means an amount equal to (i) $2,500,000 during the period commencing April 10,
2006 and ending May 30, 2006, (ii) $1,000,000 during the period commencing May 31, 2006 and ending June 15, 2006, (iii) $500,000 during the period commencing June 16, 2006 and ending June 29, 2006, and
(iv) zero at all times on and after June 30, 2006. 
 “Sales’” means, with respect to a
particular period, all of the sales and services billed by Borrowers to their customers during such period. 
 (c) The second sentence of
Section 2.1(a) of the Loan Agreement is amended and restated in its entirety as follows: 
 For purposes of this Agreement,
“Borrowing Base,” as of any date of determination, shall mean the result of: 
 (x) the lesser of

  

	 	(i)	85% of the amount of Eligible Accounts (net of the Deferred Revenue Reserve), less the amount, if any, of the Dilution Reserve, and 

  

	 	(ii)	an amount equal to Borrowers’ Collections with respect to Accounts for the immediately preceding 60 day period, plus 

 (y) commencing April 10, 2006, the Additional Availability Amount, minus 
  

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 (z) the sum of (i) the Bank Products Reserve, (ii) the Availability Block, and
(iii) the aggregate amount of reserves, if any, established by Agent under Section 2.l(b). 
 (d) Section 2.6(a) of the
Loan Agreement is amended and restated in its entirety as follows: 
 (a) Interest Rates. Except as provided in clause
(c) below, all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as follows:
(i) if the relevant Obligation is an Advance that is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin, and (ii) otherwise, at a per annum rate equal to the Base Rate plus the Base Rate Margin;
provided, that notwithstanding anything contained herein to the contrary, the portion of the Advances predicated on the Additional Availability Amount shall bear interest on the Daily Balance thereof at a per annum rate equal to 5 percentage points
plus the Base Rate. For purposes of determining whether Advances are predicated on the Additional Availability Amount or Eligible Accounts, Advances will be deemed to be predicated last on the Additional Availability Amount. 
 (e) Section 6.3 of the Loan Agreement is hereby amended by (i) deleting the word “and” at the end of clause (f) thereof and
(ii) amending and restating clause (g) thereof and adding a new clause (h) at the end thereof as follows: 
 (g) (i) no later than April 28, 2006, a forecast of weekly projected cash flow covering Parent’s and its Subsidiaries’ operations for the 13 week period beginning May 1, 2006 and ending on July 31, 2006 and
(ii) no later than May 31, 2006, a forecast of weekly projected cash flow covering Parent’s and its Subsidiaries’ operations for the 13 week period beginning June 1, 2006 and ending on August 31, 2006; and 

(h) upon the request of Agent, any other report reasonably requested relating to the financial condition of Companies. 
 (f) Section 7.20(a)(i) of the Loan Agreement is hereby amended and restated in its entirety as follows: 
 (i) Minimum EBITDA. EBITDA, measured on a fiscal month-end basis, for each period set forth below, of not less than the required amount set forth
in the following table for the applicable period set forth opposite thereto; 
  

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	 Applicable Amount
	  	 Applicable Period

	 ($3,407,965)
	  	For the 3 month period ending March 31, 2006
		
	 ($3,513,451)
	  	For the 4 month period ending April 30, 2006
		
	 ($4,462,838)
	  	For the 5 month period ending May 31, 2006
		
	 ($4,213,173)
	  	For the 6 month period ending June 30, 2006
		
	 ($2,636,162)
	  	For the 7 month period ending July 31, 2006
		
	 ($2,103,578)
	  	For the 8 month period ending August 31, 2006
		
	 ($339,231)
	  	For the 9 month period ending September 30, 2006
		
	 $1,215,689
	  	For the 10 month period ending October 31, 2006
		
	 $2,813,765
	  	For the 11 month period ending November 30, 2006
		
	85% of EB1TDA for such period as reflected in the most recent Projections delivered to Agent pursuant to Section 6.3(c) and approved by Required Lenders but in no event less than
$4,250,230	  	For the 12 month period ending December 31, 2006 and the 12 month period ending on the last day of each fiscal month thereafter

  

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 (g) The following new clause (iii) is added immediately after Section 7.20(a)(ii) of the Loan
Agreement: 
 (iii) Minimum Sales. Gross amount of Sales, in any period set forth below, of not less than the required
amount set forth in the following table opposite such period: 
  

			
	 Applicable Amount
	  	 Applicable Period

		
	 $7,016,462
	  	 For the 5 week period ending March 24, 2006

		
	 $7,215,753
	  	 For the 5 week period ending March 31, 2006

		
	 $8,450,467
	  	 For the 5 week period ending April 7, 2006

		
	 $7,463,421
	  	 For the 5 week period ending April 14, 2006

		
	 $7,622,500
	  	 For the 5 week period ending April 21, 2006

		
	 $9,722,500
	  	 For the 5 week period ending April 28, 2006

		
	 $10,172,500
	  	 For the 5 week period ending May 5, 2006

		
	 $9,672,500
	  	 For the 5 week period ending May 12, 2006

		
	 $9,711,250
	  	 For the 5 week period ending May 19, 2006

		
	 $10,813,250
	  	 For the 5 week period ending May 26, 2006

		
	 $10,563,250
	  	 For the 5 week period ending June 2, 2006

		
	 $9,563,251
	  	 For the 5 week period ending June 9, 2006

		
	 $9,563,251
	  	 For the 5 week period ending June 16, 2006

		
	 $9,813,251
	  	 For the 5 week period ending June 23, 2006

		
	 $10,000,000
	  	 For the 5 week period ending June 30, 2006

  

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 Notwithstanding the foregoing, Agent may, in its sole discretion, increase the covenant
levels for any of the 5 week periods set forth above commencing with the period ending on or after May 5, 2006, to an amount not to exceed 85% of the gross amount of Sales for such period reflected in the most recent cash flow forecast
delivered to Agent pursuant to Section 6.3(g). 
 4. Ratification. This Amendment, subject to satisfaction of the conditions
provided below, shall constitute a waiver and amendment to the Loan Agreement and all of the Loan Documents as appropriate to express the agreements contained herein. Except as specifically set forth herein, the Loan Agreement and the Loan Documents
shall remain unchanged and in full force and effect in accordance with their original terms. 
 5. Conditions to Effectiveness. This
Amendment shall become effective as of the date hereof and upon the satisfaction of the following conditions precedent: 
 (a) Each party
hereto shall have executed and delivered this Amendment to Agent; 
 (b) Agent shall have received the Additional Availability Fee described
in Section 5 hereof; 
 (c) Borrowers shall have delivered to Agent such documents, agreements and instruments as may be requested or
required by Agent in connection with this Amendment, each in form and content acceptable to Agent; 
 (d) No Default or Event of Default
other than the Existing Defaults shall have occurred and be continuing on the date hereof or as of the date of the effectiveness of this Amendment; and 
 (e) All proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments and other legal matters incident thereto shall be satisfactory to Agent and its legal
counsel. 
 6. Additional Availability Fee. To induce Agent and Lenders to enter into this Amendment, Borrowers shall pay to Agent,
for the benefit of Lenders, a non-reiundable fee equal to $100,000 (the “Additional Availability Fee”), which shall be due and payable on the date hereof. 
  

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 7. Miscellaneous. 
 (a) Warranties and Absence of Defaults. To induce Agent and Lenders to enter into this Amendment, each Company hereby represents and warrants to Agent and Lenders that: 
 (i) The execution, delivery and performance by it of this Amendment and each of the other agreements, instruments and documents
contemplated hereby are within its corporate power, have been duly authorized by all necessary corporate action, have received all necessary governmental approval (if any shall be required), and do not and will not contravene or conflict with any
provision of law applicable to it, its articles of incorporation and by-laws, any order, judgment or decree of any court or governmental agency, or any agreement, instrument or document binding upon it or any of its property; 
 (ii) Each of the Loan Agreement and the other Loan Documents, as amended by this Amendment, are the legal, valid and binding obligation of
it enforceable against it in accordance with its terms, except as the enforcement thereof may be subject to (A) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor’s rights
generally, and (B) general principles of equity; 
 (iii) The representations and warranties contained in the Loan
Agreement and the other Loan Documents are true and accurate as of the date hereof with the same force and effect as if such had been made on and as of the date hereof; and 
 (iv) It has performed all of its obligations under the Loan Agreement and the Loan Documents to be performed by it on or before the date
hereof and as of the date hereof, it is in compliance with all applicable terms and provisions of the Loan Agreement and each of the Loan Documents to be observed and performed by it and no event of default or other event which upon notice or lapse
of time or both would constitute an event of default has occurred. 
 (b) Expenses. Companies, jointly and severally, agree to pay on
demand all costs and expenses of Agent (including the reasonable fees and expenses of outside counsel for Agent) in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and all other instruments or
documents provided for herein or delivered or to be delivered hereunder or in connection herewith. In addition, Companies agree, jointly and severally, to pay, and save Agent harmless from all liability for, any stamp or other taxes which may be
payable in connection with the execution or delivery of this Amendment or the Loan Agreement, as amended hereby, and the execution and delivery of any instruments or documents provided for herein or delivered or to be delivered hereunder or in
connection herewith. All obligations provided herein shall survive any termination of the Loan Agreement as amended hereby. 
 (c)
Governing Law. This Amendment shall be a contract made under and governed by the internal laws of the State of Illinois. 
 (d)
Counterparts. This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all
such counterparts shall together constitute but one and the same Amendment. 
  

 -7- 

 8. Release. 
 (a) In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Company, on behalf of
itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present and former
shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the
“Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and
all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at
law and in equity, which such Company or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action,
cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with any of the Loan Agreement, or any of the
other Loan Documents or transactions thereunder or related thereto. 
 (b) Each Company understands, acknowledges and agrees that the release
set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

 (c) Each Company agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be
discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above. 
 [signature pages follow]

  

 -8- 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective
officers thereunto duly authorized and delivered as of the date first above written. 
  

			
	BORROWERS:
	
	TELOS CORPORATION,
	 a Maryland corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	XACTA CORPORATION,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	CREDIT PARTIES:
	
	TELOS DELAWARE, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	UBIQUITY.COM, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

 Signature Page to Waiver and Ninth Amendment to Loan and Security Agreement

			
	
	TELOS.COM, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	TELOS INTERNATIONAL CORP.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	TELOS INTERNATIONAL ASIA, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	SECURE TRADE, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	KUWAIT INTERNATIONAL, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

 Signature Page to Waiver and Ninth Amendment to Loan and Security Agreement

			
	
	TELOS INFORMATION SYSTEMS, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	TELOS FIELD ENGINEERING, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	TELOS FEDERAL SYSTEMS, INC.,
	 a Delaware corporation

		
	By	 	 /s/ Michael P. Flaherty

	 Title
	 	 EVP, General Counsel, CAO

	
	AGENT AND LENDER:
	
	 WELLS FARGO FOOTHILL, INC. (formerly
 known as Foothill Capital Corporation)

		
	By	 	  
	 Title
	 	  

 Signature Page to Waiver and Ninth Amendment to Loan and Security Agreement

			
	
	TELOS INFORMATION SYSTEMS, INC.,
	 a Delaware corporation

		
	By	 	  
	 Title
	 	  
	
	TELOS FIELD ENGINEERING, INC.,
	 a Delaware corporation

		
	By	 	  
	 Title
	 	  
	
	TELOS FEDERAL SYSTEMS, INC.,
	 a Delaware corporation

		
	By	 	  
	 Title
	 	  
	
	AGENT AND LENDER:
	
	 WELLS FARGO FOOTHILL, INC. (formerly
 known as Foothill Capital Corporation)

		
	By	 	 /s/ David J. Sanchez

	 Title
	 	 V.P.

 Signature Page to Waiver and Ninth Amendment to Loan and Security Agreement

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