Document:

EXECUTION
VERSION

     

    CONTRIBUTION
AGREEMENT

     

    by
and among

     

    D.
PATRICK CURRY

     

    2008
DENNIS PATRICK CURRY GRANTOR RETAINED ANNUITY TRUST

     

    KEVIN
B. WILSHERE

     

    TAG
HOLDINGS, LLC

     

    THE
ANALYSIS GROUP, LLC

     

    and

     

    
      THE
KEYW HOLDING CORPORATION

       

      THE
KEYW CORPORATION

       

      Dated
as of February 22, 2010

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE OF
CONTENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    	 
      	 
      	
                                                                                                            Page

                                                                                                          
	 	 
	
                                                                                                            SECTION
      1: DEFINED TERMS

                                                                                                          	
                                                                                                            1

                                                                                                          
	
                                                                                                            1.1

                                                                                                          	
                                                                                                            Certain
      Definitions

                                                                                                          	
                                                                                                            1

                                                                                                          
	
                                                                                                            SECTION
      2: CONTRIBUTION TO KHC

                                                                                                          	
                                                                                                            11

                                                                                                          
	
                                                                                                            2.1

                                                                                                          	
                                                                                                            Contribution

                                                                                                          	
                                                                                                            11

                                                                                                          
	
                                                                                                            2.2

                                                                                                          	
                                                                                                            Aggregate
      Consideration

                                                                                                          	
                                                                                                            12

                                                                                                          
	
                                                                                                            SECTION
      3: CONTRIBUTOR ACKNOWLEDGMENTS

                                                                                                          	
                                                                                                            19

                                                                                                          
	
                                                                                                            3.1

                                                                                                          	
                                                                                                            Contributor
      Acknowledgments

                                                                                                          	
                                                                                                            19

                                                                                                          
	
                                                                                                            SECTION 4: REPRESENTATIONS AND
      WARRANTIES OF CONTRIBUTOR AND THE
      MEMBERS

                                                                                                          	
                                                                                                            20

                                                                                                          
	
                                                                                                            4.1

                                                                                                          	
                                                                                                            Title
      to Interests

                                                                                                          	
                                                                                                            20

                                                                                                          
	
                                                                                                            4.2

                                                                                                          	
                                                                                                            Organization,
      Authority and Capacity

                                                                                                          	
                                                                                                            21

                                                                                                          
	
                                                                                                            4.3

                                                                                                          	
                                                                                                            Execution
      and Enforceability

                                                                                                          	
                                                                                                            21

                                                                                                          
	
                                                                                                            4.4

                                                                                                          	
                                                                                                            Conflicts;
      Consents of Third Parties

                                                                                                          	
                                                                                                            21

                                                                                                          
	
                                                                                                            4.5

                                                                                                          	
                                                                                                            Investment
      Intent

                                                                                                          	
                                                                                                            22

                                                                                                          
	
                                                                                                            4.6

                                                                                                          	
                                                                                                            Non-Foreign
      Status

                                                                                                          	
                                                                                                            22

                                                                                                          
	
                                                                                                            4.7

                                                                                                          	
                                                                                                            Suitability

                                                                                                          	
                                                                                                            23

                                                                                                          
	
                                                                                                            4.8

                                                                                                          	
                                                                                                            Contributor
      Acknowledgement; Access to Information

                                                                                                          	
                                                                                                            23

                                                                                                          
	
                                                                                                            4.9

                                                                                                          	
                                                                                                            No
      Brokers

                                                                                                          	
                                                                                                            23

                                                                                                          
	
                                                                                                            4.10

                                                                                                          	
                                                                                                            Full
      Disclosure

                                                                                                          	
                                                                                                            23

                                                                                                          
	
                                                                                                            SECTION
      5: REPRESENTATIONS AND WARRANTIES OF CONTRIBUTOR, MEMBERS AND THE
      COMPANY

                                                                                                          	
                                                                                                            24

                                                                                                          
	
                                                                                                            5.1

                                                                                                          	
                                                                                                            Organization
      and Standing

                                                                                                          	
                                                                                                            24

                                                                                                          
	
                                                                                                            5.2

                                                                                                          	
                                                                                                            Authorization,
      Execution and Enforceability

                                                                                                          	
                                                                                                            24

                                                                                                          
	
                                                                                                            5.3

                                                                                                          	
                                                                                                            No
      Conflict or Violation

                                                                                                          	
                                                                                                            25

                                                                                                          
	
                                                                                                            5.4

                                                                                                          	
                                                                                                            No
      Consent or Filing

                                                                                                          	
                                                                                                            25

                                                                                                          
	
                                                                                                            5.5

                                                                                                          	
                                                                                                            The
      Interests

                                                                                                          	
                                                                                                            25

                                                                                                          
	
                                                                                                            5.6

                                                                                                          	
                                                                                                            Waiver
      and Termination of Buy-Sell Agreement

                                                                                                          	
                                                                                                            26

                                                                                                          
	
                                                                                                            5.7

                                                                                                          	
                                                                                                            Financial
      Information

                                                                                                          	
                                                                                                            26

                                                                                                          
	
                                                                                                            5.8

                                                                                                          	
                                                                                                            Conduct
      of Business; No Company Material Adverse Effect

                                                                                                          	
                                                                                                            26

                                                                                                          
	
                                                                                                            5.9

                                                                                                          	
                                                                                                            Material
      Contracts

                                                                                                          	
                                                                                                            27

                                                                                                          
	
                                                                                                            5.10

                                                                                                          	
                                                                                                            Property,
      Assets and Leases

                                                                                                          	
                                                                                                            28

                                                                                                          
	
                                                                                                            5.11

                                                                                                          	
                                                                                                            No
      Litigation; Compliance with Laws

                                                                                                          	
                                                                                                            29

                                                                                                          
	
                                                                                                            5.12

                                                                                                          	
                                                                                                            No
      Undisclosed Liabilities

                                                                                                          	
                                                                                                            30

                                                                                                          
	
                                                                                                            5.13

                                                                                                          	
                                                                                                            Insurance

                                                                                                          	
                                                                                                            30

                                                                                                          
	
                                                                                                            5.14

                                                                                                          	
                                                                                                            No
      Brokers

                                                                                                          	
                                                                                                            30

                                                                                                          
	
                                                                                                            5.15

                                                                                                          	
                                                                                                            No
      Transactions with Interested Persons

                                                                                                          	
                                                                                                            30

                                                                                                          
	
                                                                                                            5.16

                                                                                                          	
                                                                                                            Environmental
      Matters

                                                                                                          	
                                                                                                            31

                                                                                                          
	
                                                                                                            5.17

                                                                                                          	
                                                                                                            Intellectual
      Property

                                                                                                          	
                                                                                                            31

                                                                                                          
	
                                                                                                            5.18

                                                                                                          	
                                                                                                            Tax
      Matters

                                                                                                          	
                                                                                                            33

                                                                                                          
	
                                                                                                            5.19

                                                                                                          	
                                                                                                            Employee
      Benefit Plans

                                                                                                          	
                                                                                                            34

                                                                                                          
	
                                                                                                            5.20

                                                                                                          	
                                                                                                            Labor
      and Employment Matters

                                                                                                          	
                                                                                                            35

                                                                                                          

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    	
                                                                                                            5.21

                                                                                                          	
                                                                                                            Government
      Contracts and Subcontracts

                                                                                                          	
                                                                                                            36

                                                                                                          
	
                                                                                                            5.22

                                                                                                          	
                                                                                                            Banking
      Relationships

                                                                                                          	
                                                                                                            39

                                                                                                          
	
                                                                                                            5.23

                                                                                                          	
                                                                                                            Improper
      and Other Payments

                                                                                                          	
                                                                                                            39

                                                                                                          
	
                                                                                                            5.24

                                                                                                          	
                                                                                                            Customer
      and Suppliers

                                                                                                          	
                                                                                                            39

                                                                                                          
	
                                                                                                            5.25

                                                                                                          	
                                                                                                            Accounts
      Receivable; Inventory

                                                                                                          	
                                                                                                            40

                                                                                                          
	
                                                                                                            5.26

                                                                                                          	
                                                                                                            Subsidiaries

                                                                                                          	
                                                                                                            40

                                                                                                          
	
                                                                                                            5.27

                                                                                                          	
                                                                                                            Termination
      of Credit Agreement

                                                                                                          	
                                                                                                            41

                                                                                                          
	
                                                                                                            5.28

                                                                                                          	
                                                                                                            No
      Other Representations and Warranties

                                                                                                          	
                                                                                                            41

                                                                                                          
	
                                                                                                            SECTION
      6: REPRESENTATIONS AND WARRANTIES OF KHC

                                                                                                          	
                                                                                                            41

                                                                                                          
	
                                                                                                            6.1

                                                                                                          	
                                                                                                            Organization,
      Standing and Power

                                                                                                          	
                                                                                                            41

                                                                                                          
	
                                                                                                            6.2

                                                                                                          	
                                                                                                            Authorization,
      Execution and Enforceability

                                                                                                          	
                                                                                                            42

                                                                                                          
	
                                                                                                            6.3

                                                                                                          	
                                                                                                            No
      Conflict or Violation

                                                                                                          	
                                                                                                            42

                                                                                                          
	
                                                                                                            6.4

                                                                                                          	
                                                                                                            No
      Consent or Filing

                                                                                                          	
                                                                                                            42

                                                                                                          
	
                                                                                                            6.5

                                                                                                          	
                                                                                                            No
      Litigation; Compliance with Laws

                                                                                                          	
                                                                                                            42

                                                                                                          
	
                                                                                                            6.6

                                                                                                          	
                                                                                                            No
      Brokers

                                                                                                          	
                                                                                                            43

                                                                                                          
	
                                                                                                            6.7

                                                                                                          	
                                                                                                            Securities
      Act

                                                                                                          	
                                                                                                            43

                                                                                                          
	
                                                                                                            6.8

                                                                                                          	
                                                                                                            Experience

                                                                                                          	
                                                                                                            43

                                                                                                          
	
                                                                                                            6.9

                                                                                                          	
                                                                                                            Capitalization;
      KHC Shares

                                                                                                          	
                                                                                                            43

                                                                                                          
	
                                                                                                            6.10

                                                                                                          	
                                                                                                            Financial
      Information

                                                                                                          	
                                                                                                            44

                                                                                                          
	
                                                                                                            6.11

                                                                                                          	
                                                                                                            No
      Undisclosed Liabilities

                                                                                                          	
                                                                                                            45

                                                                                                          
	
                                                                                                            6.12

                                                                                                          	
                                                                                                            Conduct
      of Business; No Company Material Adverse Effect

                                                                                                          	
                                                                                                            45

                                                                                                          
	
                                                                                                            6.13

                                                                                                          	
                                                                                                            Material
      Contracts

                                                                                                          	
                                                                                                            45

                                                                                                          
	
                                                                                                            6.14

                                                                                                          	
                                                                                                            Property
      and Assets

                                                                                                          	
                                                                                                            45

                                                                                                          
	
                                                                                                            6.15

                                                                                                          	
                                                                                                            Tax
      Matters

                                                                                                          	
                                                                                                            46

                                                                                                          
	
                                                                                                            6.16

                                                                                                          	
                                                                                                            Government
      Contracts

                                                                                                          	
                                                                                                            46

                                                                                                          
	
                                                                                                            6.17

                                                                                                          	
                                                                                                            Solvency

                                                                                                          	
                                                                                                            47

                                                                                                          
	
                                                                                                            6.18

                                                                                                          	
                                                                                                            Full
      Disclosure

                                                                                                          	
                                                                                                            47

                                                                                                          
	
                                                                                                            6.19

                                                                                                          	
                                                                                                            KHC
      Acknowledgement

                                                                                                          	
                                                                                                            48

                                                                                                          
	
                                                                                                            6.20

                                                                                                          	
                                                                                                            No
      Other Representations and Warranties

                                                                                                          	
                                                                                                            48

                                                                                                          
	
                                                                                                            SECTION
      7: COVENANTS

                                                                                                          	
                                                                                                            48

                                                                                                          
	
                                                                                                            7.1

                                                                                                          	
                                                                                                            Confidentiality

                                                                                                          	
                                                                                                            48

                                                                                                          
	
                                                                                                            7.2

                                                                                                          	
                                                                                                            Further
      Actions

                                                                                                          	
                                                                                                            49

                                                                                                          
	
                                                                                                            7.3

                                                                                                          	
                                                                                                            Publicity

                                                                                                          	
                                                                                                            49

                                                                                                          
	
                                                                                                            7.4

                                                                                                          	
                                                                                                            Expenses

                                                                                                          	
                                                                                                            50

                                                                                                          
	
                                                                                                            7.5

                                                                                                          	
                                                                                                            [Reserved]

                                                                                                          	
                                                                                                            50

                                                                                                          
	
                                                                                                            7.6

                                                                                                          	
                                                                                                            DSS

                                                                                                          	
                                                                                                            50

                                                                                                          
	
                                                                                                            7.7

                                                                                                          	
                                                                                                            Employees

                                                                                                          	
                                                                                                            50

                                                                                                          
	
                                                                                                            7.8

                                                                                                          	
                                                                                                            Manager
      and Officer Indemnification

                                                                                                          	
                                                                                                            50

                                                                                                          
	
                                                                                                            7.9

                                                                                                          	
                                                                                                            Tax
      Returns

                                                                                                          	
                                                                                                            51

                                                                                                          
	
                                                                                                            7.10

                                                                                                          	
                                                                                                            Cooperation
      on Tax Matters

                                                                                                          	
                                                                                                            52

                                                                                                          
	
                                                                                                            7.11

                                                                                                          	
                                                                                                            Tax
      Adjustment

                                                                                                          	
                                                                                                            53

                                                                                                          
	
                                                                                                            7.12

                                                                                                          	
                                                                                                            Certain
      Post-Closing Payments

                                                                                                          	
                                                                                                            54

                                                                                                          
	
                                                                                                            SECTION
      8: INDEMNIFICATION

                                                                                                          	
                                                                                                            54

                                                                                                          
	
                                                                                                            8.1

                                                                                                          	
                                                                                                            Survival
      Period

                                                                                                          	
                                                                                                            54

                                                                                                          
	
                                                                                                            8.2

                                                                                                          	
                                                                                                            Indemnification
      by the Members and Contributor

                                                                                                          	
                                                                                                            55

                                                                                                          
	
                                                                                                            8.3

                                                                                                          	
                                                                                                            Indemnification
      by KHC

                                                                                                          	
                                                                                                            56

                                                                                                          

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          	
                                                                  8.4

                                                                	
                                                                  Third
      Party Claims

                                                                	
                                                                  57

                                                                
	
                                                                  8.5

                                                                	
                                                                  Limitations
      on Indemnification

                                                                	
                                                                  57

                                                                
	
                                                                  8.6

                                                                	
                                                                  Cooperation

                                                                	
                                                                  59

                                                                
	
                                                                  8.7

                                                                	
                                                                  Subrogation

                                                                	
                                                                  59

                                                                
	
                                                                  8.8

                                                                	
                                                                  Exclusive
      Remedy

                                                                	
                                                                  59

                                                                
	SECTION
      9:
      DELIVERIES AT CLOSING	
                                                                  60

                                                                
	
                                                                  9.1

                                                                	
                                                                  Deliveries
      by Contributors, the Member or the Company at the Closing

                                                                	
                                                                  60

                                                                
	
                                                                  9.2

                                                                	
                                                                  Deliveries
      by KHC to Contributors at the Closing

                                                                	
                                                                  60

                                                                
	
                                                                  SECTION
      10: MISCELLANEOUS

                                                                	
                                                                  61

                                                                
	
                                                                  10.1

                                                                	
                                                                  Interpretation

                                                                	
                                                                  61

                                                                
	
                                                                  10.2

                                                                	
                                                                  Governing
      Law

                                                                	
                                                                  61

                                                                
	
                                                                  10.3

                                                                	
                                                                  Counterparts;
      Facsimile

                                                                	
                                                                  61

                                                                
	
                                                                  10.4

                                                                	
                                                                  Notices

                                                                	
                                                                  62

                                                                
	
                                                                  10.5

                                                                	
                                                                  Severability

                                                                	
                                                                  63

                                                                
	
                                                                  10.6

                                                                	
                                                                  Binding
      Effect

                                                                	
                                                                  63

                                                                
	
                                                                  10.7

                                                                	
                                                                  Assignment

                                                                	
                                                                  63

                                                                
	
                                                                  10.8

                                                                	
                                                                  No
      Third Party Beneficiaries

                                                                	
                                                                  63

                                                                
	
                                                                  10.9

                                                                	
                                                                  Reserved

                                                                	
                                                                  63

                                                                
	
                                                                  10.10

                                                                	
                                                                  Entire
      Agreement; Amendments and Waivers

                                                                	
                                                                  64

                                                                
	
                                                                  10.11

                                                                	
                                                                  Guaranty

                                                                	
                                                                  64

                                                                

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Exhibits

     

    Exhibit A – Member Ownership
of Contributor

    Exhibit B-l – Form of
Consideration Note

    Exhibit B-2 – Form of Escrow
Note

    Exhibit C – DCU Participants
and Payments

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXECUTION
VERSION

     

    CONTRIBUTION
AGREEMENT

     

    THIS
CONTRIBUTION AGREEMENT,
is dated as of February 22, 2010 (the “Agreement”), among
The KEYW Holding Corporation,
a Maryland corporation (“KHC”), TAG Holdings, LLC, a Virginia
limited liability company (“Contributor”), The Analysis Group, LLC, a
Virginia limited liability company (“Company”), D. Patrick Curry (“Curry”), 2008 Dennis Patrick Curry Grantor
Retained Annuity Trust, (“Trust”), Kevin B. Wilshere (“Wilshere” and
together with Curry and the Trust, the “Members” and each a
“Member”) and
solely for purposes of Section 10.11 below,
The KEYW Corporation, a
Maryland corporation and a wholly-owned subsidiary of KHC (the “Guarantor” or “KEYW”).

     

    RECITALS

     

    WHEREAS, Members are the
owners of all the issued and outstanding limited liability company interests of
Contributor;

     

    WHEREAS, Contributor is the
owner of all of the issued and outstanding limited liability company interests
of the Company (the “Interests”);

     

    WHEREAS, KHC desires to
acquire all of the Interests and Contributor desires to contribute to KHC, all
right, title and interest of Contributor in and to the Interests, in exchange
the consideration set forth herein, on the terms and subject to the conditions
set forth herein;

     

    WHEREAS, following the
transactions contemplated hereby, KHC will own 100% of the ownership interests
in the Company; and

     

    WHEREAS, the transactions
contemplated hereby are in contemplation of a potential subsequent initial
public offering of KHC.

     

    NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and conditions set forth
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as
follows:

     

    SECTION
1: DEFINED TERMS

     

    1.1        
 Certain
Definitions.

     

    For
purposes of this Agreement, the following terms have the meanings specified in
this Section
1.1:

     

    “2009 Financial
Statements” shall have the meaning set forth in Section
5.7(b).

     

    “A5XP Contract” shall
mean that certain contract for Strategic Plans and Policy Support Services to be
awarded by the United States Air Force under procurement number
GSC-TFMG-09-32148.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    “A5XP Protest
Reimbursements” shall mean amounts reimbursed to the Company following
the Closing for Company costs and expenses incurred by the Company in connection
with the Company’s successful protest of the award of the A5XP Contract (Bid No.
B-401726).

     

    “Accounts Receivable”
means the accounts receivable, and any other accounts, notes and other
receivables of the Company, calculating using line items and methodology
consistent with the Balance Sheet.

     

    “Affiliate” means,
with respect to any Person, any other Person that, directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person. The term “control” (including the terms
“controlled by” and “under common control with”) means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through ownership of voting securities, by
contract or otherwise.

     

    “Aggregate
Consideration” shall have the meaning set forth in Section
2.2(a).

     

    “Agreement” shall have
the meaning set forth in the preamble hereto.

     

    “Allocation Schedule”
shall have the meaning set forth in Section
7.9(e).

     

    “Annual Financial
Statements” shall have the meaning set forth in Section
5.7(a).

     

    “Average Gross Margin”
shall mean the sum of (A) (1) the Gross Margin for the period beginning January
1, 2010 through December 31, 2010 plus (2) the Gross Margin for
the period beginning January 1, 2011 through December 31, 2011, divided by (B)
2.

     

    “Average Revenue”
shall have the meaning set forth in Section
2.2(d)(i)(l).

     

    “Balance Sheet” means
the unaudited balance sheet of the Company as of October 31, 2009.

     

    “Balance Sheet Date”
means the date of the Balance Sheet.

     

    “Buy-Sell Agreement”
means the Buy-Sell Agreement, dated January 1, 2007, by and among the Company
and the Contributors.

     

    “Business Day” means
any day other than a Saturday, Sunday or a day on which the banks in New York
City are authorized or obligated by Law or executive order to
close.

     

    “Cash” means, as of
the date of determination, the difference of (a) the aggregate amount of cash
and cash equivalents held as of 5:00 p.m. (Eastern Time) in the bank accounts,
including money market accounts, of the Company, plus (b) deposits in
transit and deposits not yet cleared minus (c) the
aggregate balance of all outstanding checks written against such
accounts.

     

    “Cash Consideration”
shall have the meaning set forth in Section
2.2(a).

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Change of Control”
shall mean (i) any change, in a single or series of related transactions, of
fifty percent (50%) or more of the combined voting power of all classes of the
voting equity or other economic interests (including assets) of any member or
members of the KEYW Group whose revenue, individually or combined, is equal to
or greater than fifty percent (50%) of the aggregate revenue of all members of
the KEYW Group immediately prior to such transaction or series of related
transactions; provided, that the
issuance of the equity of a member of the KEYW Group as consideration in
connection with a member of the KEYW Group’s acquisition of assets, equity or
other property of another Person or Persons shall not in any event constitute a
Change of Control, or (ii) (x) a sale, or other disposition of a majority of the
assets of the Company, (y) a transfer or sale of more than fifty percent (50%)
of the combined voting power of all classes of the voting equity of the Company,
or (z) a merger or consolidation involving the Company in which the Company’s
voting equity interests outstanding immediately prior to such merger or
consolidation are converted by virtue of the merger into other property, whether
in the form of securities, cash or otherwise, and a third party controls the
Company as a result.

     

    “Claim” shall have the
meaning set forth in Section
8.4.

     

    “Closing” means the
consummation of the transactions set forth in Section
2.

     

    “Closing Date” means
the date hereof.

     

    “Closing
Date Net Working Capital” shall have the meaning set forth in Section
2.2(b).

     

    “Code” means the
Internal Revenue Code of 1986, as amended.

     

    “Company” shall have
the meaning set forth in the preamble hereto.

     

    “Company Material Adverse
Effect” means any event, change, circumstance or effect that,
individually or in the aggregate, has had or could reasonably be expected to
have a material adverse effect on the business, assets, liabilities (contingent
or otherwise), properties, results of operations, or financial condition of the
Company; provided, however, that effects
caused solely by (a) adverse changes in general economic or political conditions
or (b) changes in Laws or orders of any Governmental Authority or changes in
GAAP or other applicable accounting rules, in each case, which do not affect the
Company disproportionately to other companies in its industry, shall be deemed
to not constitute a “Company Material Adverse Effect” and shall not be
considered in determining whether a “Company Material Adverse Effect” has
occurred.

     

    “Company Operating
Agreement” shall have the meaning set forth in Section
2.1(c).

     

    “Consideration Note”
shall have the meaning set forth in Section
2.2(a).

     

    “Contribution” shall
have the meaning set forth in Section
2.1(a).

     

    “Contributor” shall
have the meaning set forth in the preamble hereto.

     

    “Contributor Indemnified
Parties” shall have the meaning set forth in Section
8.3.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Contributor Redemption
Rights” shall mean the Contributor’s rights to elect to have KHC
repurchase KHC Shares pursuant to Section 2.2(d)(i)(l)(A), Section 2.2(d)(i)(3),
Section 2.2(d)(i)(4)(A) and/or Section 2.2(d)(v).

     

    “Copyrights” means
copyrights, including in and to works of authorship and all other rights
corresponding thereto throughout the world, whether published or unpublished,
including rights to prepare, reproduce, perform, display and distribute
copyrighted works and copies, compilations and derivative works
thereof.

     

    “Credit Agreement”
means that certain term loan between the Company and Commerce Bank (now TD Bank)
dated as of June 27, 2007.

     

    “Current Assets” and
“Current
Liabilities” mean, as of any date, the current assets and current
liabilities, respectively, of the Company as of such date, determined in
accordance with GAAP and consistent with prior accounting principles, policies,
practices, classifications and methodologies used in preparation of the Balance
Sheet, and not considering any event, change or effect occurring subsequent to
the Closing; provided, that, notwithstanding GAAP, (i) current assets will
exclude (A) Cash (which may be distributed to the Contributors on or prior to
the Closing) and (B) any deferred Tax asset, (ii) current assets shall include
$116,787.48 of A5XP Protest Reimbursements, and (iii) current liabilities will
exclude (A) any Indebtedness of the Company paid pursuant to Section 2.2, (B) any
transaction expenses of the Company paid pursuant to Section 2.2, (C) any
payments made under the DCU Plans pursuant to Section 2.2, (D) all
amounts due after the Closing Date under operating leases, and (E) any deferred
Tax liability.

     

    “Curry” shall have the
meaning set forth in the preamble hereof.

     

    “Deferred
Consideration” shall have the meaning set forth in Section
7.11.

     

    “Determination
Date” shall have the meaning set forth in Section
2.2(d)(i)(l)(A)(l).

     

    “Disclosure Schedules”
shall have the meaning set forth in Section 5
hereof.

     

    “Dispute Notice” shall
have the meaning set forth in Section
2.2(b).

     

    “DCU
Termination Agreements” shall have the meaning set forth in Section
2.2(a)(i)(3).

     

    “DCU Participants”
shall mean the individuals entitled to payments at and/or after the Closing
under the DCU Plans.

     

    “DCU Plans” shall have
the meaning set forth in Section
9.1(g).

     

    “Environmental Laws”
means any applicable Laws relating to (a) the remediation, generation,
production, installation, use, storage, treatment, transportation, release, or
disposal of Hazardous Materials or (b) the protection of natural resources, the
environment, or human health and safety including the Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. sections 9601
et seq. (“CERCLA”), the
Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq., the Resource
Conservation and Recovery Act (“RCRA”), 42 U.S.C. §
6901 et seq., the Clean Water Act, 33 U.S.C. § 1251 et seq., the Clean Air Act,
42 U.S.C. § 7401 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et
seq., the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et
seq., the Oil Pollution Act of 1990, 33 U.S.C § 2701 et seq. and the
Occupational Safety and Health Act, 29 U.S.C. § 651 et seq. (to the extent it
relates to Hazardous Materials), as such Laws have been amended or supplemented,
and the regulations promulgated pursuant thereto, and all analogous applicable
foreign, federal, state or local Laws.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “ERISA” shall have the
meaning set forth in Section
5.19(a).

     

    “ERISA Affiliate”
means any trade or business, whether or not incorporated, that together with the
Company or any of its Affiliates would be deemed a single employer for purposes
of Section 4001 of ERISA or Section 414 of the Code.

     

    “Escrow Note” shall
have the meaning set forth in Section
2.2(a).

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended.

     

    “Facility Security
Clearances” shall have the meaning set forth in Section
5.2l(o).

     

    “Fair Market Value” of
a share of KHC common stock shall be determined as follows:

     

    (a)           if
traded on a securities exchange or the NASDAQ Stock Market, the value shall be
deemed to be the average of the closing prices of the securities on such
exchange or market over the 30-period ending three days prior to the date of
payment of the applicable indemnity obligation under Section
8;

     

    (b)           if
actively traded over-the-counter, the value shall be deemed to be the average of
the closing bid prices over the 30-day period ending three days prior to the
date of payment of the applicable indemnity obligation under Section 8;
or

     

    (c)           if
there is no active public market, the value shall be the fair market value
thereof, as determined in good faith by the Board of Directors of
KHC.

     

    “Flow of Funds
Memorandum” shall have the meaning set forth in Section
2.2(a).

     

    “GAAP” means generally
accepted accounting principles in the United States as in effect from time to
time.

     

    “Government Contract”
means any Government Prime Contract, Government Subcontract, Offer or Teaming
Agreement and any current proposals related to the foregoing and contracts
issued in response to any such proposals, in each case including any Loss
Contract; provided that for purposes of this
definition and the definitions of “Government Prime Contract” and “Government
Subcontract” any purchase order, delivery order or task order under a Government
Contract, Government Prime Contract or Government Subcontract shall not
constitute a separate Government Contract, Government Prime Contract or
Government Subcontract, as applicable, but shall be part of the Government
Contract, Government Prime Contract or Government Subcontract to which it
relates.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    “Government Prime
Contract” means any prime contract, basic ordering agreement, letter
contract, change, arrangement or other commitment of any kind, on which final
payment has not been made and close-out not completed, between the Company and a
Governmental Authority.

     

    “Government
Subcontract” means any subcontract, basic ordering agreement, letter
subcontract, change, arrangement or other commitment of any kind, on which final
payment has not been made, between the Company and any prime contractor to a
Governmental Authority or any subcontractor with respect to a Government Prime
Contract.

     

    “Governmental
Authority” means any government or political subdivision, whether
federal, state, local, foreign or supranational, or any agency, authority,
official or instrumentality of any such government or political subdivision, or
any federal, state, local, foreign or supranational court, tribunal or
arbitrator.

     

    “Gross Margin” shall
mean, for the applicable measurement period, Revenue minus the aggregate
amounts of labor and other direct expenses, including expenses for materials,
subcontracts, consultants and travel incurred by the Company in providing
services under the applicable contracts and shall exclude overhead, fringe and
general and administrative expenses, in each case calculated in accordance with
GAAP consistent with the Company’s historical practices, divided by Revenue, and
expressed as a percentage.

     

    “Guarantor” shall have
the meaning set forth in the preamble hereto.

     

    “Hazardous Materials”
means methyl tertiary butyl ether (MTBE), toxic mold, asbestos, polychlorinated
biphenyls, and any wastes, substances, radiation, or materials (whether solids,
liquids or gases) that are listed, regulated or defined under any Environmental
Laws, including but not limited to “hazardous substances” listed under “CERCLA”
and petroleum or any derivatives thereof.

     

    “Indebtedness” means,
without duplication, all indebtedness of a Person for borrowed money, whether
secured or unsecured, including, without limitation, (a) indebtedness of such a
Person for the deferred purchase price of property or services represented by a
note, earnout or contingent purchase payment, (b) all indebtedness of such
Person created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person, (c) all indebtedness
of such Person secured by a mortgage or other Lien to secure all or part of the
purchase price of the property subject to such lien or mortgage, (d) all
obligations under leases which are required under GAAP to be recorded as capital
leases in respect of which such Person is liable as the lessee, (e) any
liability of such Person in respect of banker’s acceptances or letters of
credit, (f) any obligations under any interest rate swap agreements, (g) all
interest, fees and other expenses owed with respect to the indebtedness referred
to above and (h) all indebtedness referred to above which is directly or
indirectly guaranteed by such Person.

     

    “Independent Accounting
Firm” shall have the meaning set forth in Section
2.2(b).

     

    “Indemnified
or Indemnifying Party” shall have the meaning set forth in Section
8.4.

     

    “Indemnity Cap” shall
have the meaning set forth in Section
8.5(a).

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    “Intellectual
Property” means Patents, Trademarks, trade names, service marks,
Copyrights and all pending applications for and registrations of any of the
foregoing, and websites, domain names, computer software programs and Trade
Secrets and other proprietary intellectual property rights.

     

    “Interests” shall have
the meaning set forth in the recitals hereto.

     

    “Inventory” means all
raw materials, work-in-process, goods, supplies, inventory, spare parts,
replacement and component parts, and materials used or consumed in a Person’s
business.

     

    “IRS” shall have the
meaning set forth in Section
5.19(a).

     

    “KEYW” shall have the
meaning set forth in the preamble hereto.

     

    “KEYW Government
Contract” means any prime contract, subcontract, teaming agreement or
arrangement, joint venture, basic ordering agreement, blanket purchase
agreement, letter agreement, grant, cooperative agreement, change order or other
commitment or funding vehicle between KEYW and (a) a Governmental Authority, (b)
any prime contractor to a Governmental Authority or (c) any subcontractor with
respect to any contract described in clause (a) or (b) and any current proposals
related to the foregoing and contracts issued in response to any such proposals.
A purchase order, delivery order, or task order under a KEYW Government Contract
shall not constitute a separate KEYW Government Contract for purposes of this
definition, but shall be part of the KEYW Government Contract to which it
relates.

     

    “KEYW Group” shall
mean the Company, KHC, KEYW and any Person directly or indirectly controlling
the Company, KHC and/or KEYW.

     

    “KHC” shall have the
meaning set forth in the preamble hereto.

     

    “KHC Balance Sheet”
means the unaudited balance sheet of KEYW as of December 31, 2009.

     

    “KHC Disclosure
Schedules” shall have the meaning set forth in Section 6
hereof.

     

    “KHC Financial
Statements” shall have the meaning set forth in Section
6.10(a).

     

    “KHC Indemnified
Parties” shall have the meaning set forth in Section
8.2(a).

     

    “KHC Indemnity Cap”
shall have the meaning set forth in Section
8.5(b).

     

    “KHC Material
Contracts” means all material contracts, agreements, bonds, notes,
indentures, mortgages, debt instruments, licenses (or other agreements
concerning Intellectual Property), franchises, leases and other instruments or
obligations of any kind, written or oral (including any amendments and other
modifications thereto), to which KHC or KEYW is a party or which are binding
upon KHC or KEYW or their respective assets.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    “KHC Material Adverse
Effect” means any event, change, circumstance or effect that,
individually or in the aggregate, has had or could reasonably be expected to
have a material adverse effect on the business, assets, liabilities (contingent
or otherwise), properties, results of operations, or financial condition of KHC
or its Affiliates; provided, however, that effects
caused solely by (a) adverse changes in general economic or political conditions
or (b) changes in Laws or orders of any Governmental Authority or changes in
GAAP or other applicable accounting rules, in each case, which do not affect KHC
or its Affiliates disproportionately to other companies in their industry, shall
be deemed to not constitute a “KHC Material Adverse Effect” and shall not be
considered in determining whether a “KHC Material Adverse Effect” has
occurred.

     

    “KHC
Non-Basket Representations” shall have the meaning set forth in Section
8.5(b).

     

    “KHC Shares” shall
mean the shares of common stock, par value $.001 per share, of KHC, that may be
issued to the Contributor pursuant to Section
2.2(a).

     

    “Knowledge of
Contributor” means the actual awareness of a particular fact or matter by
Contributor and each of the Chief Executive Officer of the Company (a position
held by D. Patrick Curry) and the President of the Company (a position held by
Kevin B. Wilshere) and all knowledge which could have been obtained by them upon
reasonable inquiry and investigation in their capacities as officers, members or
managers of Contributor or the Company.

     

    “Knowledge of KHC”
means the actual awareness of a particular fact or matter by each of the Chief
Executive Officer, the President and the Chief Financial Officer of KHC and
KEYW, respectively, and all knowledge which could have been obtained by them
upon reasonable inquiry and investigation.

     

    “Law” means any law,
statute, code, ordinance, regulation or other legally enforceable requirement of
any Governmental Authority.

     

    “Lien” means any
mortgage, lien, option, encumbrance, restriction, pledge, adverse claim,
interest, charge or other similar encumbrance, in each case other than (a) any
lien for Taxes not yet due or delinquent or that are being contested in good
faith by appropriate proceedings or that may thereafter be paid without penalty
or (b) any lien which is a carrier’s, warehousemen’s, mechanic’s, materialmen’s,
repairmen’s or other similar lien arising in the ordinary course of business or
(c) with respect to the Interests, any liens created by the Company Operating
Agreement or imposed by applicable securities Laws.

     

    “Loss Contracts” means
any contract for the sale of goods and/or services which, after allocation of
costs including overhead and general and administrative expenses, would result
in negative profit on the contract; provided, that Loss Contracts
shall not include any contracts in which the net loss is de
minimus.

     

    “Losses” shall have
the meaning set forth in Section
8.2(a).

     

    “Material Contracts”
shall have the meaning set forth in Section
5.9(a).

     

    “Members” shall have
the meaning set forth in the preamble hereto.

     

    “Minimum
Deemed Value Per Share” shall have the meaning set forth in Section
2.2(e).

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    “Multiplier” shall
mean: (A) if Average Gross Margin equals 20%, 0.76, (B) if Average Gross Margin
is greater or less than 20%, (1) 0.76 multiplied by (2) the Average
Gross Margin divided by
.20.

     

    “Net Working Capital”
means Current Assets minus Current Liabilities.

     

    “Non-Basket
Representations” shall have the meaning set forth in Section
8.5(a).

     

    “Obligation” shall
have the meaning set forth in Section
10.11.

     

    “Offer” means an
“offer” to which the Company is a party as defined in the Federal Acquisition
Regulation (“FAR”) 2.101.

     

    “Patents” means all
United States and foreign patents and utility models and applications, and all
reissues, divisions, re-examinations, renewals, extensions, provisionals,
continuations and continuations-in-part thereof, and equivalent or similar
rights anywhere in the world in inventions and discoveries, including invention
disclosures related to the business of the Company.

     

    “PBGC” shall have the
meaning set forth in Section
5.19(h).

     

    “Permitted Use” shall
have the meaning set forth in Section
7.2(b).

     

    “Person” means any
individual, corporation, partnership, firm, joint venture, association, limited
liability company, limited liability partnership, joint-stock company, trust,
joint venture, unincorporated organization, governmental, judicial or regulatory
body, business unit, division or any other business entity, organization or
Governmental Authority.

     

    “Plans” shall have the
meaning set forth in Section
5.19(a).

     

    “Promissory Notes”
shall have the meaning set forth in Section
2.2(a).

     

    “Publicly Traded
Company” shall have the meaning provided under Section 409A of the Code
and the rules and regulations thereunder for the purposes of determining a
“specified employee” thereunder.

     

    “Real Property” shall
have the meaning set forth in Section
5.10(c).

     

    “Release” means any
presence, emission, spill, seepage, leak, escape, leaching, discharge,
injection, pumping, pouring, emptying, dumping, disposal, migration, or release
of Hazardous Materials from any source into or upon the environment, including
the air, soil, improvements, surface water, groundwater, the sewer, septic
system, storm drain, publicly owned treatment works, or waste treatment,
storage, or disposal systems.

     

    “Remediation” means
any investigation, clean-up, removal action, remedial action, restoration,
repair, response action, corrective action, abatement, monitoring, sampling and
analysis, installation, reclamation, closure, or post-closure in connection with
the suspected, threatened or actual Release of Hazardous
Materials.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    “Retained Losses”
shall have the meaning set forth in Section
8.2(a).

     

    “Revenue” shall mean,
for the applicable measurement period, the Company’s revenue, determined on the
accrual basis in accordance with GAAP consistent with the Company’s historical
practices.

     

    “Revenue Floor” shall
have the meaning set forth in Section
2.2(d)(i)(2).

     

    “Revenue Payments”
shall have the meaning set forth in Section
2.2(d)(i)(l)(B).

     

    “Revenue Target” shall
have the meaning set forth in Section
2.2(d)(i)(l).

     

    “SEC” means the
Securities and Exchange Commission.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
thereunder.

     

    “Security Clearances”
shall have the meaning set forth in Section
5.2l(o).

     

    “Survival Termination
Date” shall have the meaning set forth in Section
8.1.

     

    “Target Net Working
Capital” shall have the meaning set forth in Section
2.2(c).

     

    “Tax” or “Taxes” means any
taxes of any kind, including but not limited to any and all federal, state,
local and foreign income, gross receipts, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental, customs
duties, capital stock, franchise, branch, profits, license, withholding,
payroll, social security, unemployment, disability, ad valorem, real property,
personal property, sales, use, transfer, registration, value added, alternative
or add-on minimum, estimated, or other similar taxes (together with any and all
interest, penalties and additions to tax imposed with respect thereto) imposed
by any governmental or Tax authority.

     

    “Tax Amount” shall
have the meaning set forth in Section
7.11.

     

    “Tax Losses” shall
have the meaning set forth in Section
8.2(c).

     

    “Tax Returns” means
any and all returns, declarations, claims for refund, or information returns or
statements, reports and forms relating to Taxes filed with any Tax authority
(including any schedule or attachment thereto) with respect to the Company,
including any amendment thereof.

     

    “Teaming Agreement”
means a “contractor team arrangement(s)” as referenced in the FAR Subpart 9.601
to which the Company is a party.

     

    “Trademarks” means any
and all trademarks, service marks, logos, trade names, corporate names, Internet
domain names and addresses and general-use e-mail addresses, and all goodwill
associated therewith throughout the world.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    “Trade Secrets” means
all trade secrets under applicable Law and other rights in know-how and
confidential or proprietary information, processing, manufacturing or marketing
information, including new developments, inventions, processes, ideas or other
proprietary information that provide a Person with advantages over competitors
who do not know or use it and documentation thereof (including related papers,
blueprints, drawings, chemical compositions, formulae, diaries, notebooks,
specifications, designs, methods of manufacture and data processing software,
compilations of information) and all claims and rights related
thereto.

     

    “Transaction
Documents” means this Agreement and each agreement, instrument or
document attached hereto as an Exhibit and the other agreements, certificates
and instruments to be executed by any of the parties in connection with or
pursuant to this Agreement.

     

    “Trust” shall have the
meaning set forth in the preamble hereto.

     

    “Unaudited
KHC Financial Statements” shall have the meaning set forth in Section
6.10(b).

     

    “Unresolved Claim”
shall have the meaning set forth in Section
8.2(b).

     

    “WARN Act” shall have
the meaning set forth in Section
5.20(c).

     

    “Wilshere” shall have
the meaning set forth in the preamble hereto.

     

    SECTION
2: CONTRIBUTION TO KHC

     

    2.1         Contribution.

     

    (a)           Subject
to the terms and conditions of this Agreement, in reliance upon the
representations, warranties, covenants and agreements of KHC set forth herein
and for the consideration set forth in Section 2.2 below,
Contributor hereby contributes or otherwise transfers, assigns and conveys to
KHC, and KHC acquires and accepts from Contributor, simultaneously with the
execution of this Agreement, all of Contributor’s right, title and interest in
and to the Interests held by such Contributor, free and clear of all Liens (the
“Contribution”).

     

    (b)           By
execution of this Agreement, the Members hereby irrevocably constitutes and
appoints the Secretary of Contributor, as attorney-in-fact, with full power of
substitution, to transfer such Interests on Contributor’s books sufficient to
vest in KHC good and marketable title to such Interests.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (c)           In
exchange for the release of claims by the Company set forth below, Contributor
and each Member, on Contributor’s and such Member’s own behalf and on behalf of
Contributor’s and such Member’s respective heirs, successors and assigns, hereby
voluntarily and irrevocably (i) releases, acquits and forever discharges the
Company and the Company’s officers, managers, and Affiliates from any and all
liabilities, obligations, claims, demands, actions or causes of action arising
from or relating to the Interests (whether absolute, contingent, accrued or
otherwise) and any event, occurrence, act, omission or condition occurring or
existing on or prior to the Closing Date; and (ii) waives all breaches, defaults
or violations of any agreement applicable to any of the Interests transferred
and contributed hereunder and releases any and all claims arising in connection
with any prior default, violation or failure to comply with or satisfy any such
preemptive or other rights relating to the Interests or the Contribution; provided, that notwithstanding
the preceding release, under no circumstances does Contributor or such Member
release such named Persons from (even if in conflict with the foregoing) and
Contributor and such Member specifically reserve all rights to (i) any rights or
obligations under this Agreement or the other Transaction Documents, (ii) rights
to indemnification provided for in Sections 2 and 3 of Article XIII of The
Analysis Group, LLC Operating Agreement, dated January 1, 2007 (as amended as of
the date hereof, the “Company Operating
Agreement”) and in Section 5.09 of the TAG Holdings, LLC Operating
Agreement, dated February 19, 2010, (iii) rights of such Member as an employee
of Company (if applicable) to receive current earned and accrued but unpaid
compensation, un-reimbursed business expenses or other employment benefits
generally available to all employees of the Company and (iv) any Losses, acts or
omissions occurring after the Closing Date.

     

    (d)         
In exchange for the release of claims by the Contributor and the Members set
forth above, the Company, on its own behalf and on behalf of its successors and
assigns, hereby voluntarily and irrevocability releases, acquits and forever
discharges Contributor and each Member, and their respective trustees, heirs,
successors and assigns from any and all liabilities, obligations, claims,
demands, actions or causes of action arising from or relating to the Interests
(whether absolute, contingent, accrued or otherwise) and any event, occurrence,
act, omission or condition occurring or existing on or prior to the Closing
Date; provided,
that
notwithstanding the preceding release, under no circumstances does the Company
release such named Persons from (even if in conflict with the foregoing) and the
Company specifically reserves all rights to (i) any rights or obligations under
this Agreement or the other Transaction Documents and (ii) any Losses, acts or
omissions occurring after the Closing Date.

     

    2.2     
    Aggregate
Consideration.

     

    (a)         
Subject to the terms and conditions of this Agreement, in reliance upon the
representations, warranties, covenants and agreements of the Members,
Contributor and the Company set forth herein, and as consideration for the
contribution of the Interests, KHC agrees to pay the Contributor an aggregate of
(A) Twenty-Three Million Dollars ($23,000,000) in cash (the “Cash Consideration”),
payable in the manner set forth below in Section 2.2(a)(i)(4),
(B) (1) an unsecured subordinated promissory note in the principal amount of
Eight Million Two Hundred Fifty-One Thousand Seventy-Six Dollars ($8,251,076),
in the form attached hereto as Exhibit
B-l (the
“Consideration
Note”) and (2) an unsecured subordinated promissory note in the principal
amount of Three Million Four Hundred Thousand Dollars ($3,400,000), in the form
attached hereto as Exhibit
B-2 (the
“Escrow Note”,
and collectively with the Consideration Note, the “Promissory Notes”),
payable in the manner set forth below in Section 2.2(a)(ii),
and (C) the right to receive up to Three Million (3,000,000) KHC Shares, in
accordance with Section 2.2(d) (collectively and as adjusted pursuant to Sections 2.2(c) and
2.2(d), the
“Aggregate
Consideration”). Simultaneously with the execution and delivery of this
Agreement, KHC will pay the Aggregate Consideration, as follows:

     

    (i)         
The Cash Consideration by wire transfer of immediately available funds to the
recipients as designated in a flow of funds memorandum (with wire instructions
for the below payments or instructions to pay certain amounts by check) prepared
by the Members, Contributor
and reasonably acceptable to KHC (the “Flow of Funds
Memorandum”) containing the following:

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              (1) 

            	
              The
      amount of Indebtedness (if any) that will be paid at
    Closing;

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      amount of the expenses payable by the Members, Contributor and the Company
      in connection with the consummation of the transactions contemplated
      hereby (e.g., payment to legal counsel, accountants and financial
      advisors) to the extent remaining unpaid as of the
  Closing;

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      aggregate amount of cash payable at the Closing by Contributor to the DCU
      Participants pursuant to DCU Termination Agreements to be entered into
      prior to the Closing by and among each DCU Participant, Contributor and
      the Company and providing for the cancellation of the DCUs and
      consideration therefor (the “DCU Termination
      Agreements”); and

            

    

     

    
      	
               
      

            	
              (4)

            	
              The
      Cash Consideration (less the amounts set forth in clauses (1), (2) and (3)
      above) to Contributor.

            

    

     

    After
receipt of the Cash Consideration set forth in clause (3) above, Contributor
will immediately pay thereafter the DCU Payments to the DCU Participants (except
Contributor’s payment of the DCU Payments to the DCU Participants will be net of
applicable withholding Taxes). All applicable withholding Taxes withheld from
the DCU Payments will be paid by Contributor to the applicable Tax authority
when due; and

     

    (iii)      The
Promissory Notes to the Contributor.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (b)         
Within sixty (60) days after the Closing Date, KHC shall prepare and deliver to
the Contributors the calculation of Net Working Capital as of 11:59 p.m. on the
Closing Date (the “Closing Date Net Working
Capital”), which calculation shall contain reasonable details and
statements as to the assumptions, means and other inputs by which such
calculation was determined. The calculation of the Closing Date Net Working
Capital will be prepared by applying the definition of Net Working Capital
herein. The calculation of the Closing Date Net Working Capital shall be final
and binding on the parties unless, within thirty (30) days after delivery to
Contributor, Contributor delivers to KHC a notice of dispute (a “Dispute Notice”)
specifying in reasonable detail the items in dispute. During such 30-day review
period, KHC will provide Contributor and its representatives with reasonable
access during normal business hours to the books and records of the Company and
all work papers and back up materials relating to the determination of Closing
Date Net Working Capital. Such items in dispute shall be limited to claims of
KHC’s error or use of accounting principles, policies, practices,
classifications or methodologies other than the Company used in preparation of
the 2009 Financial Statements. After delivery of a Dispute Notice, Contributor
and KHC shall promptly negotiate in good faith with respect to the subject of
the Dispute Notice, and if they are unable to reach an agreement within fifteen
(15) days after delivery to Contributor of the Dispute Notice, the dispute shall
be submitted (no later than five (5) Business Days at the end of such 15-day
resolution period) by the parties to RSM McGladrey, Inc., or such other
independent public accounting firm as mutually agreed to by KHC and Contributor
(the “Independent
Accounting Firm”). Each party agrees to execute, if requested by the
Independent Accounting Firm, a reasonable engagement letter with respect to the
work to be performed by the Independent Accounting Firm. The Independent
Accounting Firm shall be directed by KHC and Contributor to issue a final and
binding decision within thirty (30) days of submission of the Dispute Notice to
the Independent Accounting Firm, as to the issues of disagreement referred to in
the Dispute Notice and not resolved by KHC and the Contributor. The Independent
Accounting Firm shall determine only those items still in dispute by the parties
and the Independent Accounting Firm’s determination will be based upon and
consistent with the terms and conditions of this Agreement. The determination by
the Independent Accounting Firm will be based solely on presentations with
respect to such disputed items by KHC and the Contributor to the Independent
Accounting Firm and not on the Independent Accounting Firm’s independent review.
KHC and Contributor will use their reasonable best efforts to make their
respective presentations as promptly as practicable following submission to the
Independent Accounting Firm of the disputed items, and each party shall be
entitled, a part of its presentation, to respond to the presentation of the
other party and any questions and requests of the Independent Accounting Firm.
In deciding any matter, the Independent Accounting Firm (i) will be bound by the
provisions of this Section 2.2(b) and
(ii) may not assign a value to any item greater than the greatest value for such
item claimed by either KHC or Contributor or less than the smallest value for
such item claimed by KHC or Contributor. Each of the parties hereto agrees that
it shall be bound by the determination of the Independent Accounting Firm and
such determination may only be reviewed, corrected or set aside by a court of
competent jurisdiction only upon a finding by such court that the Independent
accounting Firm committed manifest error with respect to its determination. The
determination of the Independent Accounting Firm will not be deemed an award
subject to review under the Federal Arbitration Act or any other statute. The
fees and expenses of the Independent Accounting Firm shall be borne by the
non-prevailing party to the decision of the Independent Accounting Firm if one
party prevails on all disputed items; if neither KHC or Contributor were correct
with respect to all of the disputed items, then KHC, on the one hand, and
Contributor, on the other hand, will each pay half of the Independent Auditor’s
fees. Any such fees and expenses of the Independent Auditor payable by
Contributor will be paid, at Contributor’s option by either (i) payment in cash
or (ii) set off of the outstanding principal under Section 8.2(b) hereof
and the terms of the Escrow Note. Except as provided in the preceding sentences,
all other costs and expenses incurred by the parties in connection with
resolving any dispute hereunder before the Independent Accounting Firm will be
borne by the party incurring such cost and expense.

     

    (c)          
If the Closing Date Net Working Capital, as determined in accordance with Section 2.2(b) above,
is less than $3,000,000 (the “Target Net Working
Capital”), the Aggregate Consideration shall be reduced on a
dollar-for-dollar basis by the amount by which the Target Net Working Capital
exceeds the Closing Date Net Working Capital, and Contributor shall pay such
deficit to KHC, at Contributor’s option by either (i) payment in cash or (ii)
set off of the outstanding principal under Section 8.2(b) hereof
and the terms of the Escrow Note. If the Closing Date Net Working Capital is
greater than the Target Net Working Capital, then the Cash Consideration shall
be increased on a dollar-for-dollar basis by the amount by which the Closing
Date Net Working Capital exceeds the Target Net Working Capital, and KHC shall
pay Contributor the dollar amount by which the Closing Date Net Working Capital
exceeds the Target Net Working Capital. Any such payment due under this Section 2.2(c) shall
be made in cash or same day funds or reduction of the outstanding principal
under the Escrow Note within five (5) Business Days after the final
determination of the Closing Date Net Working Capital pursuant to Section
2.2(b).

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (d)        
Contributor will be entitled to receive KHC Shares and additional cash payments
following the Closing in accordance with the following terms and
conditions.

     

    (i)        (1)        
If the sum of (x) the Revenue of the Company for the period beginning January 1,
2010 through December 31, 2010 plus (y) the Revenue of the Company for the
period beginning January 1, 2011 through December 31, 2011, divided by two (the
“Average
Revenue”) is greater than or equal to Sixty-Seven Million Five Hundred
Forty-Four Thousand Dollars ($67,544,000) (the “Revenue Target”),
then:

     

    
      	
               
      

            	
              (A)

            	
              KHC
      shall issue to Contributor, within three (3) Business Days of the date
      Average Revenue and Average Gross Margin are finally determined (the
      “Determination
      Date”), Three Million (3,000,000) KHC Shares; provided, that in the
      event that KHC is not a Publicly Traded Company as of the Determination
      Date, upon notice delivered with thirty (30) days of the Determination
      Date by either (i) Contributor to KHC electing to have up to 32.5% of the
      KHC Shares issued to Contributor under this Section
      2.2(d)(i)(l)(A) repurchased, or (ii) KHC to Contributor electing to
      repurchase from Contributor up to all of the KHC Shares issued to
      Contributor under this Section
      2.2(d)(i)(l)(A). KHC shall, within five (5) Business Days of the
      date of such notice, repurchase the KHC Shares so elected to be
      repurchased, at a price per share equal to the greater of (x) the fair
      market value of a KHC Share determined by an independent valuation firm
      mutually agreed upon by KHC and the Contributors and (y) the Minimum
      Deemed Value Per Share; and

            

    

     

    
      	
               
      

            	
              (B)

            	
              Within
      three (3) Business Days of the Determination Date, KHC shall pay to the
      Contributor an aggregate amount in cash equal to the Multiplier times the
      amount by which the Average Revenue exceeds the Target (collectively such
      payments, the “Revenue
      Payment”).

            

    

     

    
      	
            	
              (2) 

            	
              If
      the Average Revenue is less than or equal to Forty-Five Million Eight
      Hundred Thirty-Four Thousand Dollars ($45,834,000) (subject to adjustment
      as set forth in Section
      2.2(d)(i)(4), the “Revenue
      Floor”), no KHC  Shares will be issued to
      Contributor;

            

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
            	
              (3)

            	
              If
      the Average Revenue is less than the Revenue Target and greater than the
      Revenue Floor, then KHC shall issue to Contributor, within three (3)
      Business Days of the Determination Date, an aggregate number of KHC Shares
      equal to sum of (A)(1) the Average Revenue less (2) the Revenue Floor
      times (3) the Multiplier divided by (B) the Minimum Deemed Value Per
      Share; provided, that in the event that KHC is not a Publicly Traded
      Company as of the Determination Date, upon notice delivered with thirty
      (30) days of the Determination by either (i) Contributor to KHC electing
      to have up to 32.5% of the KHC Shares issued to Contributor under this
      Section
      2.2(d)(i)(3) repurchased, or (ii) KHC to Contributor electing to
      repurchase from Contributor up to all of the KHC Shares issued to
      Contributor under this Section
      2.2(d)(i)(3), KHC shall, within five (5) Business Days of the date
      of such notice, repurchase the KHC Shares so elected to be repurchased, at
      a price per share equal to the greater of (x) the fair market value of a
      KHC Share determined by an independent valuation firm mutually agreed upon
      by KHC and the Contributors and (y) the Minimum Deemed Value Per
      Share.

            

    

     

    
      	
            	
              (4)

            	
              If
      the Company is awarded, either as a prime contractor or as a direct or
      indirect subcontractor to a prime contractor, the A5XP Contract on or
      before July 30, 2010 and such contract will result in revenue of at least
      $4 million dollars over two years,
then:

            

    

     

    
      	
               
      

            	
              (A)

            	
              KHC
      shall issue to Contributor, within three (3) Business Days of the award of
      the A5XP Contract meeting the condition set forth above, Seven Hundred
      Fifty Thousand (750,000) KHC Shares; provided, that in the event that KHC
      is not a Publicly Traded Company as of the date such 750,000 KHC Shares
      are issued under this clause (4), upon notice delivered with thirty (30)
      days of the date of issuance of such KHC Shares by either (i) Contributor
      to KHC electing to have up to 32.5% of the KHC Shares issued to
      Contributor under this Section 2.2(d)(i)(4)(A) 
      repurchased, or (ii) KHC to Contributor electing to repurchase from
      Contributor up to all of the KHC Shares issued to Contributor under this
      Section
      2.2(d)(i)(4)(A), KHC shall, within five (5) Business Days of the
      date of such notice, repurchase the KHC Shares so elected to be
      repurchased, at a price per share equal to the greater of (x) the fair
      market value of a KHC Share determined by an independent valuation firm
      mutually agreed upon by KHC and the Contributors and (y) the Minimum
      Deemed Value Per Share; provided, further, that, in the event KHC has a
      Registration Statement on Form S-l on file with the SEC at the time of any
      request for repurchase by Contributor under (i) above, KHC shall not be
      required to repurchase such portion of the KHC Shares until the earlier of
      30 days following effectiveness of the Registration Statement or six (6)
      months from the date of issuance of such KHC
  Shares.

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
       

      (B) For
purposes of the calculations in clause (2) and (3) above, the Revenue Floor
shall be deemed to be Fifty-One Million Two Hundred Sixty-One Thousand Dollars
($51,261,000).

       

      (ii)       No
later than March 31, 2012, KHC shall prepare and deliver to the Contributor its
calculation of Average Revenue and Average Gross Margin, which calculations
shall contain reasonable details and statements as to the assumptions, means and
other inputs by which such calculations were determined. The calculation of
Average Revenue and Average Gross Margin will be prepared by applying the
definitions thereof, respectively, herein. KHC’s calculation of Average Revenue
and Average Gross Margin shall be final and binding on the parties unless,
within thirty (30) days after delivery to the Contributor, Contributor delivers
to KHC a Dispute Notice with respect thereto, specifying in reasonable detail
the items in dispute. In the event that a party delivers a Dispute Notice, the
provisions of Section
2.2(b) governing a Closing Date Net Working Capital dispute shall be
followed for resolution of a dispute concerning this Section
2.2(d).

       

      (iii)      KHC
agrees and acknowledges that following the expiration of the period in which
rights to repurchase KHC Shares may be exercised under Section
2.2(d)(i)(l)(A), Section 2.2(d)(i)(3),
Section
2.2(d)(i)(4)(A) or Section 2.2(d)(v), as
the case may be, the KHC Shares may be distributed to the Members in accordance
with the TAG Holdings Operating Agreement and/or paid to the DCU Participants in
accordance with the DCU Termination Agreements; provided that such distribution
may only occur if it complies with applicable federal and state securities laws
in effect at the time of such distribution and, provided, further, that, prior
to any distribution, the Members and any DCU Participant receiving such
distribution provide evidence satisfactory to KHC of such
compliance.

       

      (iv)      The
parties agree that, during the period beginning the Closing Date through
December 31, 2011, Company shall, and KHC shall cause the Company
to:

       

      (1)           Maintain
the Company as a discrete business unit and maintain a financial reporting
system that will separately account for Revenue and Gross Margin;

       

      (2)           Conduct
the operation of and manage the Company in the usual and ordinary course of
business and in a manner reasonably consistent with the past practices
of the Company, but taking into account the acquisition of the Company by KHC as
a wholly-owned, indirect, subsidiary of KHC;

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      (3)           Not,
without the prior written consent of D. Patrick Curry and Kevin B. Wilshere,
terminate, transfer or reassign to any other Person or any other business unit
within KHC and/or KEYW any then current contracts or business opportunities of
the Company;

       

      (4)           Not
interfere with the reasonable, good faith decisions of D. Patrick Curry and
Kevin B. Wilshire regarding management of then current contracts and projects
(including bidding on new contracts and projects) proposed to be undertaken by
the Company;

       

      (5)           Not
take any action intended to result in a reduction in Revenue or Gross Margin
below that which would have been achieved if such action had not been taken, or
otherwise take any other action with the intent to impede the Company’s
achievement of the Revenue Target or an Average Gross Margin of greater than
20%;

       

      (6)           Refrain
from assigning responsibilities or other duties, or transferring or
re-assigning, any of the Contributors, Jim Smith, Mike Buehrle, Mike Loughran,
Andrea Kallies or Suzy Wendt, in any manner that would prevent such individuals
from devoting their primary efforts to the business of the Company;
and/or

       

      (7)           Use
its best commercial efforts to maintain the relations and good will with
suppliers, customers, landlords, employees, agents and others having business
relationships with Company.

       

      (v)       In
the event that, prior to the Determination Date, (i) a Change of Control occurs,
or (ii) any declaration of a bankruptcy of any member of the KEYW Group or
liquidation of KHC occurs or (iii) the Company ceases to operate as a separate
subsidiary, KHC shall issue a number of KHC Shares to Contributor equal to Three
Million (3,000,000) less the number of KHC Shares previously issued to
Contributor under Section 2.2(d), and
upon such event the provisions of Section 2.2(d)(i)(l)
through (4) above shall be of no further force or effect; provided, that in the
event that KHC is not a Publicly Traded Company as of the date such KHC Shares
are issued under this Section 2.2(d)(v),
upon notice delivered with thirty (30) days of the date of issuance of such KHC
Shares by Contributor to KHC electing to have up to 32.5% of the KHC Shares
issued to Contributor under this Section 2.2(d)(v)
repurchased, KHC shall, within five (5) Business Days of the date of such
notice, repurchase the KHC Shares so elected to be repurchased, at a price per
share equal to the greater of (x) the fair market value of a KHC Share
determined by an independent valuation firm mutually agreed upon by KHC and the
Contributors and (y) the Minimum Deemed Value Per Share.

       

      (vi)      Notwithstanding
anything to the contrary in this Agreement, no KHC Shares shall be issued to
Contributor unless, at the time of such issuance, the Contributor provides
written certification satisfactory to KHC that the provisions set forth in Sections 3.1 (except
to the extent that the second paragraph of the restrictive legend of Section 3.1(b) and/or
the first sentence of Section 3.1(c) is
untrue as of the issuance of the KHC Shares), 4.5, 4.6, 4.7, 4.8, and 4.9 remain true and correct as of the
date of the issuance of the KHC Shares and that such issuance to the Contributor
complies with applicable federal and state securities laws.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      (vii)   
From the date hereof until the last date that any KHC Shares may be issued to
Contributor under this Section 2.2(d),
except for KHC’s right under the KHC 2008 and 2009 Stock Incentive Plans to
repurchase shares of KHC common stock from employees of the KEYW Group who
terminate their employment with the KEYW Group, KHC will not enter into any
contract, agreement, instrument or other arrangement, establish any plan or
otherwise grant any right, under which any Person has any right or option to
cause KHC, or KHC has any right, obligation or other commitment, to redeem,
repurchase or otherwise reacquire any shares of the common stock of KHC, which
right or obligation is superior to or pari passu with (in priority, amount or
otherwise) or otherwise in conflict with, the Contributor Redemption
Rights.

       

      (e)  
       For tax and accounting purposes, the
parties will treat the Closing as being effective as of 11:59 p.m. (Eastern
Time) on the Closing Date.

       

      SECTION
3: CONTRIBUTOR ACKNOWLEDGMENTS

       

      
        	
                3.1

              	
                Contributor
      Acknowledgments.

              

      

       

      Contributor
and Members, jointly and severally, hereby acknowledge the
following:

       

      (a)      
  The KHC shares issued to Contributor hereunder will not be registered
under the Securities Act and will be issued in reliance upon exemptions from
registration contained in the Securities Act. Reliance upon such exemptions is
based in part upon Contributor’s and the Members’ acknowledgements,
representations, warranties and agreements contained in this
Agreement.

       

      (b)    
    The following legend shall appear on the certificates
for the KHC Shares issued hereunder:

       

      THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR STATE SECURITIES LAWS AND
CANNOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF REGISTRATION
OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND
REGULATIONS PROMULGATED THEREUNDER AND APPLICABLE STATE SECURITIES LAWS, AND
PRIOR TO ANY SUCH PROPOSED SALE OR TRANSFER BY ANY HOLDER OF THE SHARES
REPRESENTED HEREBY IN RELIANCE ON ANY SUCH EXEMPTION OR EXEMPTIONS FROM
REGISTRATION, IF REQUESTED BY THE ISSUER HEREOF, SUCH SHAREHOLDER SHALL HAVE
PROVIDED THE ISSUER HEREOF WITH A WRITTEN OPINION FROM LEGAL COUNSEL REASONABLY
ACCEPTABLE TO THE ISSUER HEREOF TO THE EFFECT THAT AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS IS AVAILABLE WITH RESPECT TO THE PROPOSED SALE OR TRANSFER AND THAT NO SUCH
REGISTRATION IS REQUIRED.

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      THE
VOTING RIGHTS WITH RESPECT TO, AND SALE OR OTHER DISPOSITION OF, THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY AND SUBJECT TO THE PROVISIONS
OF AN AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT DATED AS OF MAY 22, 2009, A
COPY OF WHICH IS AVAILABLE FOR INSPECTION AT THE OFFICES OF THE
COMPANY.

       

      (c)       
  No public market now exists for the KHC Shares and no party hereto
has made any assurances that a public market for such securities will ever
exist. An investment in the KHC Shares involves a high degree of risk of loss by
the Contributor. There are substantial restrictions on the transferability of
the securities acquired pursuant hereto.

       

      (d)     
    KHC is not under any obligation to take any action
necessary in order to make any exemption available for the sale or transfer,
without registration, of the KHC Shares issued hereunder and, except as provided
in that certain Registration Rights Agreement, dated as of May 22, 2009, by and
among KHC and its stockholders (as the same may be amended or restated from time
to time), KHC is not obligated to register the KHC Shares issued
hereunder.

       

      (e)     
    The Aggregate Consideration issued to Contributor with
respect to the Interests transferred to KHC in the Contribution is fair and
adequate consideration for such Interests contributed to KHC by Contributor and
shall be deemed to be payment in full satisfaction of all rights, claims,
liabilities and obligations (whether absolute, accrued, contingent, or
otherwise) pertaining to such Interests (excluding for these purposes all
rights, claims, liabilities and obligations (whether absolute, accrued,
contingent, or otherwise) of the Contributor under this Agreement and the other
Transaction Documents).

       

      SECTION
4: REPRESENTATIONS AND WARRANTIES OF CONTRIBUTOR AND

      THE
MEMBERS

       

      Contributor
and each Member, severally and not jointly, represent and warrants to KHC as
follows, as of the date hereof:

       

      
        	
                4.1

              	
                Title to
      Interests.

              

      

       

      Contributor
has good and marketable title to the Interests to be transferred under this
Agreement, with full right and authority to transfer such Interests hereunder,
and upon transfer of such Interests under this Agreement, KHC will receive good
and marketable title to such Interests, free and clear of all Liens. Other than
the Company Operating Agreement (which is being amended and restated immediately
following the Closing hereunder), there are no voting trusts, irrevocable
proxies or other contracts or understandings to which Contributor is a party or
is bound with respect to the voting or consent of any membership interests or
other equity interests of the Company.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      
        	
                4.2

              	
                Organization,
      Authority and Capacity.

              

      

       

      Each
Member that is a natural person has the full authority and legal capacity
necessary to execute, deliver and perform his obligations under this Agreement
and all other Transaction Documents to which such Member is a party. Contributor
is duly organized, validly existing and in good standing under the laws of its
state of organization and has the full limited liability company power and
authority necessary to execute, deliver and perform its obligations under the
Transaction Documents to be executed and delivered by Contributor, and
Contributor is duly qualified to do business and is in good standing in each
jurisdiction in which the failure to be so qualified or in good standing could
have a material adverse effect on Contributor’s ability to perform its
obligations under the Transaction Documents to be executed and delivered by
Contributor.

       

      
        	
                4.3

              	
                Execution and
      Enforceability.

              

      

       

      This
Agreement and each other Transaction Document to which Contributor or a Member
is a party has been duly executed and delivered by Contributor and such Member.
Assuming the due authorization, execution and delivery by each other party
thereto, this Agreement and each other Transaction Documents to which
Contributor or a Member is a party constitute the legal, valid and binding
obligations of Contributor and such Member, enforceable against Contributor and
such Member in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, or other similar laws. Assuming the due
authorization, execution and delivery by each other party thereto, the
execution, delivery and performance of the Transaction Documents executed and
delivered by Contributor or any Member have been duly executed and delivered by
Contributor and such Member, as the case may be, and constitute the legal, valid
and binding obligations of Contributor and such Member, enforceable in
accordance with their respective terms, except as may be limited by bankruptcy,
insolvency, or other similar laws.

       

      
        	
                4.4

              	
                Conflicts; Consents of
      Third Parties.

              

      

       

      The
execution, delivery and performance by Contributor or any Member of this
Agreement and the other Transaction Documents executed and delivered by
Contributor or such Member (i) do not require the consent of or notice to any
governmental or regulatory authority or any other third party; (ii) will not
conflict with, or result in the breach of, any provision of the certificate of
incorporation, bylaws, trust or other organizational document of Contributor or
any Member that is not a natural person (as applicable); (iii) will not conflict
with or result in a violation of any law, ordinance, regulation, ruling,
judgment, order or injunction of any court or governmental instrumentality to
which Contributor or such Member is subject or by which Contributor or such
Member is bound; and (iv) will not conflict with, constitute grounds for
termination of, result in a breach of, constitute a default under, require any
notice under, or accelerate or permit the acceleration of any performance
required by the terms of any agreement, instrument, license or
permit.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	
                4.5

              	
                Investment
      Intent.

              

      

       

      (a)           To
the extent that Contributor is issued any KHC Shares pursuant to Section 2.2(d)
hereof, Contributor agrees that the KHC Shares are to be held for Contributor’s
own account for investment and not as agent or nominee, with no present
intention of dividing participation with others, reselling any such shares, and
not with a view to the resale or distribution in whole or in part thereof;
provided, however, that Contributor intends to distribute any KHC Shares
received by it to the Members under the terms of the TAG Holdings Operating
Agreement, and may distribute a portion of the KHC Shares to the DCU
Participants under the terms of the DCU Termination Agreements; provided,
further that any such distribution by Contributor will only be made if such
distribution complies with applicable federal and state securities laws in
effect at the time of such distribution and that, prior to any distribution, the
Members and any DCU Participant receiving such distribution provide evidence
satisfactory to KHC of such compliance. Contributor acknowledges that
appropriate stop transfer instructions will be entered in the stock transfer
records of KHC. Contributor and the Members recognize that, in view of the
matters set forth in this Section 4.5,
Contributor and/or the Members must bear the economic risk of the investment
represented by the KHC Shares it or they receive for an indefinite period.
Contributor and the Members acknowledge that KHC is not presently subject, and
may never be subject, to the reporting requirements of the Exchange Act, to the
extent required to enable Contributor and/or the Members to transfer or sell KHC
Shares pursuant to Rule 144 under the Interests Act.

       

      (b)          Contributor
and each Member represents that its financial condition is such that it can
indefinitely bear the economic risk of the investment in the KHC Shares and
Contributor and the Members have such knowledge and experience in financial and
business matters that Contributor and the Members are capable of evaluating the
merits and risks of an investment in the connection with the
Contribution.

       

      (c)          Each
Member that is a natural person either (i) has an individual net worth, or net
worth with such Member’s spouse, of more than $1,000,000 or (ii) had an
individual income in excess of $200,000 in each of the two most recent years or
joint income with such Member’s spouse in excess of $300,000 in each of those
years and has a reasonable expectation of reaching the same income level in the
current year.

       

      (d)          Contributor
and each Member that is not a natural person, is (i) an entity in which all of
the equity owners are accredited investors, (ii) a trust with total assets in
excess of $5,000,000, not formed for the specific purpose of acquiring the KHC
Shares to be issued in the Contribution, whose purchase is directed by a
sophisticated person as described in Rule 506(b)(2)(ii) of the Securities Act,
or (iii) a corporation or partnership not formed for the specific purpose of
acquiring the KHC Shares to be issued in the Contribution, with total assets in
excess of $5,000,000.

       

      
        	
                4.6

              	
                Non-Foreign
      Status.

              

      

       

      Contributor
represents that it is not a foreign corporation, foreign partnership, foreign
trust, or foreign state (as those terms are defined in the Code and the rules
and regulations promulgated thereunder) nor a nonresident alien for United
States income tax purposes.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      
        	
                4.7

              	
                Suitability

              

      

       

      Contributor
and each Member has carefully considered and has, to the extent Contributor or
such Member believes such discussion necessary, discussed with Contributor’s or
such Member’s professional legal, tax and financial advisers the suitability of
the transaction hereunder for Contributor’s or such Member’s particular tax and
financial situation.

       

      
        	
                4.8

              	
                Contributor
      Acknowledgement; Access to
Information.

              

      

       

      (a)        
 Contributor and each Member acknowledges that none of KHC, its Affiliates,
nor any other Person acting on behalf of KHC or its Affiliates (a) has made any
representation or warranty, express or implied, regarding KHC or its Affiliates,
except as expressly set forth in this Agreement, the other Transaction Documents
to which they are a party and the KHC Disclosure Schedules or (b) makes or will
be deemed to have made hereunder any representations or warranties, express or
implied, at law or in equity, of any kind or nature whatsoever concerning or as
to the accuracy or completeness of any projections, budgets, forecasts or other
forward-looking financial information concerning the future revenue, income,
profit or other financial results of KHC and its Affiliates. In addition,
Contributor and each Member acknowledges that there are uncertainties inherent
in attempting to make any such projections, budgets, forecasts or other
forward-looking financial information and actual results of operations may
differ materially from any such projections, budgets, forecasts or other
forward-looking financial information.

       

      (b)        
 Contributor and each Member represents that Contributor and such Member
has had access during the course of this Contribution transaction to such
information relating to KHC (and its direct and indirect subsidiaries) as
Contributor or such Member has desired, that Contributor and such Member has had
the opportunity to ask questions of and receive answers from KHC’s management
and its representatives concerning the terms and conditions of the Contribution
transaction contemplated hereby and to obtain such additional information about
the business and financial condition of KHC (and its direct and indirect
subsidiaries) as such Contributor or his or her representative has requested (to
the extent that any such entity possessed such information or could acquire it
without unreasonable effort or expense).

       

      
        	
                4.9

              	
                No
      Brokers.

              

      

       

      Except as
set forth on Schedule
4.9, no Person acted, directly or indirectly, as broker, finder or
financial advisor for Contributor or the Members in connection with the
transactions contemplated by this Agreement and no Person, claiming through
Contributor or the Members, is or will be entitled to any fee or commission or
like payment in respect thereof.

       

      
        	
                4.10

              	
                Full
      Disclosure

              

      

       

      To the
Knowledge of Contributor, no representation or warranty made by Contributor or a
Member in this Agreement contains any untrue statement of a material fact and
neither Contributor nor such Member has omitted to state any material fact
necessary to make any of the representations or warranties made by Contributor
or such Member in this Agreement not misleading in any material
respect.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      SECTION
5: REPRESENTATIONS AND WARRANTIES OF 

      CONTRIBUTOR,
MEMBERS AND THE COMPANY

       

      Contributor,
each Member and the Company hereby jointly and severally represent and warrant
to KHC, except as set forth in the disclosure schedules attached hereto (the
“Disclosure
Schedules”), the following as of the date hereof (except to the extent
that a representation, warranty or information in the Disclosure Schedules,
expressly states that such representation, warranty or information in the
Disclosure Schedules is current only as of an earlier date):

       

      
        	
                5.1

              	
                Organization and
      Standing.

              

      

       

      Except as
set forth on Schedule
5.1 of the Disclosure Schedules, the Company (a) is duly organized,
validly existing and in good standing under the Laws of the Commonwealth of
Virginia, (b) is duly qualified to do business as a foreign entity and is in
good standing in each jurisdiction in which the conduct of its business requires
it to be so qualified except where the failure to be so qualified would not
reasonably be expected to have a Company Material Adverse Effect and (c) has the
power and authority to own or lease its properties and to conduct its business
as such business is currently conducted. Except as set forth on Schedule 5.1 of the
Disclosure Schedules, the Company does not own, directly or indirectly,
any securities or other interests issued by any other Person, and is not a
participant in any joint venture. The Company has made available to KHC true and
complete copies of its Articles of Organization and the Company Operating
Agreement, each as currently in effect.

       

      
        	
                5.2

              	
                Authorization,
      Execution and
Enforceability.

              

      

       

      The
Company has the requisite corporate or other power and authority to execute and
deliver this Agreement and each other Transaction Document to which it is a
party, and perform its obligations hereunder and thereunder and consummate the
transactions contemplated hereby. The execution and delivery by the Company of
this Agreement and each Transaction Document to which it is a party, the
performance of its obligations hereunder and thereunder and the consummation of
the transactions contemplated hereby and thereby have been duly authorized by
all necessary corporate or other action on the part of the Company. This
Agreement and each other Transaction Document to which it is a party has been
duly executed and delivered by the Company to the extent it is a party hereto
and thereto. Assuming the due authorization, execution and delivery by each
other party thereto, this Agreement and each other Transaction Document
constitutes the valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and other similar Laws relating to or affecting creditors’ rights
generally, by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in equity or at Law) or by an
implied covenant of good faith and fair dealing.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	
                5.3

              	
                No Conflict or
      Violation.

              

      

       

      Except as
set forth on Schedule
5.3 of the Disclosure Schedules, the execution, delivery and performance
of this Agreement and each other Transaction Document to which the Company is
party, and the consummation of the transactions contemplated hereby and thereby
by the Company will not, (a) conflict with any of the provisions of the
organizational documents of the Company, (b) conflict with, result in a material
breach of or a material default (with or without notice or lapse of time, or
both) under, give rise to a right of termination, cancellation or acceleration
of any obligation or loss of a material benefit under, require the consent of
any Person under, or result in the creation of any Lien on any property or asset
of the Company under, any contract, indenture or other agreement, permit,
franchise, license or other instrument or undertaking to which the Company is a
party or by which the Company or any of its assets is bound or affected, or (c)
result in a violation or contravention in any material respect of any statute,
Law, ordinance, rule, regulation, order, judgment, injunction, decree,
determination or award applicable to the Company, or any of its properties or
assets.

       

      
        	
                5.4

              	
                No Consent or
      Filing.

              

      

       

      Except as
set forth on Schedule
5.4 of the Disclosure Schedules, no consent, approval or authorization
of, or declaration or filing with, or notice to, any Governmental Authority is
required to be obtained or made by or with respect to the Company in connection
with the execution, delivery or performance of this Agreement or any other
Transaction Document, or the consummation of the transactions contemplated
hereby by the Company.

       

      
        	
                5.5 

              	
                The
      Interests.

              

      

       

      Exhibit
A sets
forth all of the Company’s limited liability membership interests that are
authorized and are owned as of the date hereof, all of such owned membership
interests constitute 100% of the outstanding membership interests of the Company
and are owned by Contributor and no preemptive or similar rights exist and no
person or entity is entitled to a share of the profits and losses of the Company
or has a right to receive distributions from the Company other than those
distributions set forth on Exhibit
C. The Interests are not, and have
never been, certificated. The Interests are owned beneficially and of record by
Contributor, free and clear of all Liens. Upon delivery of Aggregate
Consideration for the Interests as provided herein, KHC will acquire good and
valid title to the Interests, free and clear of all Liens. There are no
outstanding warrants, options, agreements, convertible or exchangeable
securities or other commitments (other than this Agreement) pursuant to which
Contributor or the Company may become obligated to issue, sell, purchase or
redeem any membership interests of the Company after the Closing. Except as set
forth on Schedule 5.5
of the Disclosure Disclosures, after payment at Closing of the amounts
set forth on Exhibit
C to be paid
at the Closing in accordance with the DCU Termination Agreements, there are no
outstanding contractual obligations of the Company to repurchase, redeem or
otherwise acquire any outstanding securities of the Company, to vote or to
dispose of any Interests or to provide funds to or make any investment (in the
form of a loan, capital contribution or otherwise) to any other Person. Other
than the Company Operating Agreement, the Company is not a party to any
stockholders’ agreement, buy-sell agreement, voting trust agreement or
registration rights agreement that will be in effect immediately after Closing
and which relates to any equity securities of the Company or any other contract
relating to disposition, voting or dividends with respect to any equity
interests or securities of the Company. All of the Interests have been offered,
issued and sold by the Company in compliance with applicable federal and state
securities Laws.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      
        	
                5.6

              	
                Waiver and Termination
      of Buy-Sell Agreement.

              

      

       

      Contributor
and the Company hereby agree (i) that the transfer of the Interests pursuant to
this Agreement shall not be deemed to violate the terms and conditions of the
Buy-Sell Agreement, (ii) that that the execution of this Agreement by the
Members, Contributor and the Company shall serve as the requisite consent to (A)
effect the transfer of Interests as contemplated by this Agreement and (B)
terminate the Buy-Sell Agreement effective as of the Closing, and (iii) KHC will
have no liability or obligation with respect to the Buy-Sell
Agreement.

       

      
        	
                5.7

              	
                Financial
      Information.

              

      

       

      (a)           Company
has furnished to KHC the audited balance sheets, statement of operations and
statement of changes in equity and statement of cash flows for the Company as of
December 31, 2008 and 2007 (collectively, the “Annual Financial
Statements”), copies of which are attached hereto as Schedule 5.7. The
audited Annual Financial Statements, including the footnotes thereto, present
fairly in all material respects the financial position of the Company as of such
dates and the results of operations and cash flow for the respective periods
indicated and are consistent with the books and records of the Company. The
Annual Financial Statements have been prepared in accordance with GAAP and in
accordance with past practices on a consistent basis throughout the periods
covered thereby. The Annual Financial Statements are accompanied by the related
report of Goodman & Company, LLP, independent certified public accountants.
The Company maintains a system of internal accounting controls sufficient to
provide reasonable assurances that transactions are recorded as necessary to
permit preparation of audited financial statements for the Company in conformity
with GAAP and the Company has established and maintained an effective system of
internal policies and controls, including operational, financial reporting and
organizational controls, sufficient to provide reasonable assurances that all
material or unique matters arising in connection with the operation of its
business are promptly reported to the Company’s senior management.

       

      (b)          Schedule 5.7 of the
Disclosure Schedules sets forth the audited balance sheet and statement
of operations and income for the Company for period ending as of October 31,
2009 (the “2009
Financial Statements”). The 2009 Financial Statements, including the
footnotes thereto, present fairly in all material respects the financial
position of the Company for such periods and as of such dates as are indicated
therein and are consistent with the books and records of the Company. The 2009
Financial Statements have been prepared in accordance with GAAP and in
accordance with past practices on a consistent basis throughout the periods
covered thereby. The 2009 Financial Statements are accompanies by the related
report of Goodman & Company, LLP, independent certified public
accountants.

       

      
        	
                5.8

              	
                Conduct of Business;
      No Company Material Adverse
Effect.

              

      

       

      Except as
set forth on Schedule
5.8 of the Disclosure Schedules since the Balance Sheet Date:

       

      (a)     
     the Company has conducted its business in all material
respects in the ordinary course of business consistent with past
practice;

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      (b)          there
has not been any damage, destruction or loss, whether or not covered by
insurance, with respect to the property and assets of the Company having a
replacement cost of more than $50,000 for any single loss:

       

      (c)          there
has not been any material change by the Company in accounting or Tax reporting
principles, methods or policies;

       

      (d)          the
Company has not entered into any transaction or contract or incurred any
obligation or liability not in the ordinary course of business consistent with
past practice and involving the expenditure of more than $50,000;

       

      (e)          the
Company has not mortgaged, pledged or subjected to any Lien any asset, or
acquired any assets or sold, assigned, transferred, conveyed, leased or
otherwise disposed of any of its assets for which the aggregate consideration
paid or payable in any individual transaction was in excess of
$50,000;

       

      (f)      
    the Company has not canceled or compromised any debt or
claim with a value, individually or in the aggregate, exceeding $50,000 or
amended, canceled, terminated, relinquished, waived or released any contract or
right involving the expenditure of more than $50,000;

       

      (g)          the
Company has not made or committed to make any capital expenditures or capital
additions in excess of $50,000;

       

      (h)          the
Company has not instituted or settled any legal proceeding in which equitable
relief was sought or in which claimed damages exceeded $50,000;

       

      (i)   
        the Company has not amended any
Plan or established any new employee benefit plan;

       

      (j)          
there have been no labor strikes, work stoppages or lockouts against the
Company; and

       

      (k)          there
has not been a Company Material Adverse Effect.

       

      
        	
                5.9

              	
                Material
      Contracts.

              

      

       

      (a)        
Schedule 5.9 of the
Disclosure Schedules sets forth, as of the date hereof, the following
agreements currently in effect that relate to the Company (each, a “Material
Contract”):

       

      (i)        
 Each agreement or letter of intent to which the Company is a party
requiring payments, contingent or otherwise, or generating revenues in excess of
$50,000 in any one year period; provided that the amount of payments due
or revenues to be generated under any requirements agreement shall be measured
by the amount paid or payable thereunder during the one-year period ending on
the date of this Agreement;

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      (ii)         
Each agreement to which the Company is a party with respect to Indebtedness for
money borrowed in excess of $50,000, including letters of credit, guaranties,
indentures, swaps and similar agreements;

       

      (iii)         Other
than standard agreements entered into by employees of the Company upon the
commencement of employment (copies of which have been made available to KHC),
each management, consulting, employment, severance, collective bargaining or
similar agreement to which the Company is a party;

       

      (iv)         Each
confidentiality agreement or non-competition agreement to which the Company is a
party;

       

      (v)          Each
partnership and joint venture agreement to which the Company is a party;

       

      (vi)         Each
material agreement relating to the license, sale or development of Intellectual
Property to which the Company is a party (excluding commercial off-the-shelf
software for the purposes hereof);

       

      (vii)        Each
lease or sublease for Real Property;

       

      (viii)       Each
agreement to which the Company is a party under which the consequences of a
default or termination could reasonably be expected to result in a Company
Material Adverse Effect.

       

      (b)          Each
Material Contract is valid, binding and enforceable against the Company, in
accordance with its terms, except as limited by any applicable bankruptcy,
reorganization, insolvency, moratorium or similar Laws affecting the enforcement
of creditors’ rights generally and subject to general principles of equity
(whether or not considered in a court of Law or equity). There are no existing
material defaults by the Company under any Material Contract and to the
Knowledge of the Contributor, no event has occurred (whether with or without
notice, lapse of time or the happening or occurrence of any other event) that
would constitute a material default under any Material Contract by any other
party thereto. The Company does not have any Material Contracts that are Loss
Contracts and, to the Knowledge of Contributor, has no bids outstanding that
could result in Loss Contracts.

       

      
        	
                5.10

              	
                Property, Assets and
      Leases.

              

      

       

      (a)          Except
as set forth on Schedule 5.10(a) of the
Disclosure Schedules, the Company has good and marketable title to, or a
valid leasehold interest in, its respective material assets as reflected on the
Balance Sheet, in each case free and clear of all Liens. Such assets constitute
all of the assets necessary to the conduct of the business of the Company as
currently conducted.

       

      (b)          All
material tangible personal property owned by the Company is in good working
order and condition, ordinary wear and tear excepted.

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      (c)           Schedule 5.10(c) of the
Disclosure Schedules sets forth the real property owned or leased by the
Company (collectively, the “Real
Property”).  Except as set forth on Schedule 5.10(c) of the Disclosure
Schedules, with respect to each parcel of Real Property, (i) there are no
pending or, to the Knowledge of Contributor, threatened material condemnation
proceedings, lawsuits or administrative actions relating to it, (ii) there are
no leases, subleases, licenses or concessions, written or oral, granting to any
Person the right to use or occupy any portion of it and (iii) to the Knowledge
of Contributor, there are no outstanding options or rights of first refusal to
purchase it or any portion thereof or interest therein. Section 5.10(c) of the
Disclosure Schedules lists all leases and other agreements under which
the Company is lessee or lessor of any asset, or holds, manages or operates any
asset owned by any third party, or under which any asset owned by the Company is
held, operated or managed by a third party. The Company is the owner and holder
of all the leasehold estates purported to be granted to it by the documents
described in Section
5.10 of the Disclosure Schedules. Each such lease and other agreement is
in full force and effect and constitutes a legal, valid and binding obligation
of, and is legally enforceable against, the Company and, to the Knowledge of
Contributor, the other parties thereto, except as such enforceability may be
limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and other similar Laws relating to or affecting creditors’ rights
generally, by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in equity or at Law) or by an
implied covenant of good faith and fair dealing, and grants the leasehold estate
it purports to grant free and clear of all Liens (other than as set forth in the
applicable lease agreement). The Company has in all material respects performed
all obligations thereunder required to be performed by it to date. The Company
is not, and to the Knowledge of Contributor, no other party is in default in any
respect under any of the foregoing, and there has not occurred any event which
(whether with or without notice, lapse of time or the happening or occurrence of
any other event) would constitute such a default. All of the assets subject to
such leases are in good operating condition and repair, normal wear and tear
excepted. Except as forth in Schedule 5.10 of the
Disclosure Schedules, no consent is required from lessor under any of the
agreements set forth in Schedule 5.10 of the
Disclosure Schedules in connection with the transactions contemplated by
this Agreement.

       

      (d)        
 All existing minute books, books, ledgers and registers, if any, and other
records relating to the organization, ownership and maintenance of the Company
are currently located at 300 N. Washington Street, Suite 101, Falls Church,
Virginia 22046, except to the extent they have been delivered to KHC prior to
the date hereof.

       

      
        	
                5.11

              	
                No Litigation;
      Compliance with Laws.

              

      

       

      (a)          Except
as set forth on Schedule 5.11(a) of the
Disclosure Schedules, (i) there is no litigation or other claim pending
or, to the Knowledge of Contributor, threatened against the Company before any
Governmental Authority and (ii) there are no judgments, orders or decrees of any
Governmental Authority against the Company. The Company is not operating under,
subject to or in default with respect to, any order, award, writ, injunction,
decree or judgment of any court, arbitrator or Governmental
Authority.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      (b)          Since
January 30, 2007, the Company has conducted its business in compliance in all
material respects with applicable Law and has received no notice of or been
charged with the violation of any applicable Law during such period. The Company
has all licenses, permits, franchises, orders, approvals, written waivers and
other authorizations of Governmental Authorities as are required in order to
enable it to own or lease its assets and conduct its business in all respects as
currently conducted, a list of which is set forth on Schedule 5.11(b) of the
Disclosure Schedules and copies of which have been made available to KHC.
Except as set forth on Schedules 5.3 or
5.4 of the Disclosure
Schedules, no registration, filing, notice, order, approval, written
waiver or other action of any Governmental Authority is required by virtue of
the execution and delivery of this Agreement or the consummation of the
transactions contemplated hereby in order to maintain the rights pertaining to
the licenses, permits, franchises, orders, approvals, written waivers and other
authorizations of Governmental Authorities referred to in the preceding
sentence.

       

      
        	
                5.12

              	
                No Undisclosed
      Liabilities.

              

      

       

      Except as
set forth in the Balance Sheet (including the footnotes thereto) attached hereto
as part of Schedule
5.12 of the Disclosure Schedules, there are no material liabilities of
the Company other than (a) liabilities set forth on Schedule 5.12 of the
Disclosure Schedules and (b) liabilities that have arisen since the
Balance Sheet Date in the ordinary course of business consistent with past
practice which have not had and would not reasonably be expected to have a
Company Material Adverse Effect or (c) obligations to perform after the date
hereof any contracts or other agreements of the Company which have been
disclosed on Schedule
5.9 of the Disclosure Schedules or which are not required to be disclosed
on Schedule 5.9 of the
Disclosure Schedules because such contracts or other agreements do not
meet the disclosure thresholds under Section 5.9
above.

       

      
        	
                5.13

              	
                Insurance.

              

      

       

      Schedule 5.13 of the
Disclosure Schedules sets forth a listing of the material terms of all
insurance policies (including policies providing property, casualty, liability,
and workers’ compensation coverage, benefits or coverage for any Plan described
in Section
5.19, and bond and surety arrangements) to which the Company has been a
party, a named insured or otherwise the beneficiary of coverage during the one
year preceding the date of this Agreement. Each of the insurance policies set
forth on Schedule 5.13
of the Disclosure Schedules is in full force and effect, and neither the
Company nor any Contributor has received any notice of termination or intent to
terminate any such insurance policy.

       

      
        	
                5.14

              	
                No
      Brokers.

              

      

       

      Except as
set forth on Schedule
5.14 of the Disclosure Schedules, no broker, finder or similar agent has
been retained by or to act on behalf of any Contributor or the Company, and no
Person is entitled to any brokerage commission, finder’s fee or any similar
compensation for services provided to any Contributor or the Company in
connection with this Agreement and any other transaction contemplated
hereby.

       

      
        	
                5.15

              	
                No Transactions with
      Interested Persons.

              

      

       

      Except as
set forth on Schedule
5.15 of the Disclosure Schedules, with respect to any customer, supplier
or competitor of the Company or any entity party to any Material Contract, no
executive officer of the Company (a) directly owns any interest in such entity
(other than stock of a publicly-held company where such investment does not
exceed three percent (3%) of the total outstanding stock) or (b) serves as an
executive officer or director of such entity.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      
        	
                5.16

              	
                Environmental
      Matters.

              

      

       

      (a)          Except
as set forth on Schedule 5.16 of the
Disclosure Schedules, (i) the Company is and has been in compliance with
all applicable Environmental Laws, (ii) the Company possesses all permits and
approvals issued pursuant to Environmental Laws that are required to conduct the
business of the Company as it is currently conducted, and are and have been in
compliance with all such permits and approvals, (iii) to the Knowledge of
Contributor, no Releases of any Hazardous Material have occurred at, on, from or
under any real property, for which Releases the Company is or would be liable
under any Environmental Law, (iv) the Company has not received any written claim
or notice from any Governmental Authority or other Person, related to exposure
to Hazardous Materials or alleging that the Company is or may be in violation
of, or has any liability under, any Environmental Law and (v) no Real Property
or property formerly owned, leased or operated by the Company is listed or
proposed to be listed on the National Priorities List or CERCLIS or on any
similar governmental database that require Remediation under Environmental
Laws.

       

      (b)          The
Company has made available to KHC copies of all environmental assessments,
reports, audits and other material documents in its possession or under its
control that relate to the Company’s compliance with Environmental Laws or the
environmental condition any real property that Company currently or formerly has
owned, operated, or leased. Any information (if any) the Company has made
available to KHC concerning the environmental condition of any real property,
prior uses of any real property, and the operations of Company related to
compliance with Environmental Laws is, taken as a whole, accurate and complete
in all material respects.

       

      
        	
                5.17

              	
                Intellectual
      Property.

              

      

       

      (a)          Schedule 5.17(a) of the
Disclosure Schedules sets forth a complete list of (i) all registered and
material unregistered Intellectual Property owned by the Company, specifying,
for each item of Intellectual Property that is registered or for which an
application to register is pending, the status of such registration or
applications, and (ii) all licenses and sublicenses granted by or to the Company
with respect to any Intellectual Property, other than with respect to use by the
Company of government furnished property, and excluding license rights granted
by the Company pursuant to standard clauses required under Federal Acquisition
Regulations and Defense Acquisition Regulations in Government Contracts, and
commercial off the shelf software licenses with a per seat fee of less than
$1,000. The Intellectual Property and licenses listed on Schedule 5.17(a) of the
Disclosure Schedules (together with the licensed Intellectual Property
not required to be set forth on such schedule as a result of the exceptions)
constitutes all of the material Intellectual Property necessary to the conduct
of the business of the Company as currently conducted.

       

      (b)          The
Company owns, free and clear of all Liens, or has sufficient rights to use, all
Intellectual Property used in the conduct of the business of the Company as
currently conducted.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      (c)          Except
as set forth on Schedule 5.17(c) of the
Disclosure Schedules, (i) the Company is not in default (or with the
giving of notice or lapse of time or both, would not be in default) under any
license to use any Intellectual Property, (ii) to the Knowledge of Contributor,
no Intellectual Property owned by the Company and necessary to the conduct of
the business of the Company as currently conducted is being infringed by any
third party or has been infringed or misappropriated by any third party in the
past and (iii) to the Knowledge of Contributor, the Company is not infringing,
and has not misappropriated, any Intellectual Property of any third
party.

       

      (d)          Except
as set forth on Schedule 5.17(d) of the
Disclosure Schedules, (i) there is no pending or, to the Knowledge of
Contributor, threatened, significant claim or dispute regarding the ownership
of, or use by, the Company of any Intellectual Property, (ii) the execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby will not cause the loss of use of any Intellectual Property owned or
licensed by the Company and necessary to the conduct of the business of the
Company as currently conducted and (iii) to the Knowledge of Contributor, there
is no fact or circumstance existing that would render the right to use any of
the Intellectual Property set forth on Schedule 5.17(a) of the
Disclosure Schedules unenforceable or invalid.

       

      (e)          Except
as set forth on Schedule 5.17(e) of the
Disclosure Schedules, the Company has taken commercially reasonably
actions to maintain and protect (i) its rights relating to the Intellectual
Property owned by the Company and set forth on Schedule 5.17(a) of the
Disclosure Schedules and (ii) the secrecy, confidentiality, value and the
rights in the Trade Secrets of the Company. Except as set forth on Schedule 5.17(e) of the
Disclosure Schedules, the Company has and enforces a policy requiring all
employees, consultants and contractors of the Company with access to Company
Trade Secrets or who develop or have developed any Intellectual Property on
behalf of the Company to execute appropriate agreements imposing on such
individuals confidentiality obligations and assigning to the Company all rights
in Intellectual Property developed for the Company. All copies thereof have been
made available to KHC. To the Knowledge of Contributor, there has been no
violation of such Intellectual Property agreements or unauthorized disclosure of
any Trade Secret of the Company.

       

      (f)           Except
as set forth on Schedule 5.17(f) of the
Disclosure Schedules and to the Knowledge of Contributor, none of the
Intellectual Property claimed to be owned or developed by the Company, its
employees or consultants, or assigned to the Company, was developed by or on
behalf of, or using grants or other subsidies of, any governmental entity or any
university, nor was any government funding, facilities or resources of a
university, college, other educational institution or research center or funding
from third parties was used in the development of such Intellectual Property. To
the extent the Intellectual Property claimed to be owned or developed by the
Company was delivered under a Government Contract, the Company has complied with
all applicable regulations and Laws and with all applicable contractual
requirements relating to the placement of legends or restrictive markings on
such Intellectual Property.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      
        	
                5.18

              	
                Tax
      Matters.

              

      

       

      (a)       
  Except as set forth on Schedule 5.18(a) of the
Disclosure Schedules, the Company (i) has timely filed or caused to be
filed or will timely file or cause to be filed (taking into account any
extension of time to file granted or obtained) all Tax Returns required to be
filed by it and all such Tax Returns are (or will be, as appropriate) true,
correct and complete in all material respects; and (ii) has timely paid or will
timely pay all material amounts of Taxes that have become due and payable by it
except to the extent that such Taxes are being contested in good faith. There
are no Liens for Taxes upon any of the assets of the Company. All amounts of
Taxes required to have been withheld by or with respect to the Company have been
or will be timely withheld and remitted to the applicable taxing authority (and
all related reporting and recordkeeping requirements have been or will be
complied with). No claim has ever been made by an authority in a jurisdiction
where the Company does not file Tax Returns that the Company is or may be
subject to taxation by that jurisdiction.

       

      (b)          Except
as set forth on Schedule 5.18(b) of the
Disclosure Schedules, to the Knowledge of Contributor, there are no
pending audits, examinations, investigations or other proceedings in respect of
any Tax of the Company and no Contributor or officer (or employee responsible
for Tax matters) of the Company expects any authority to assert any additional
taxes for any period for which Tax Returns have been filed. No deficiency for
any material amount of Tax has been asserted in writing or assessed by any
taxing authority in writing against the Company, which deficiency has not been
satisfied by payment, settled or been withdrawn or contested in good faith. The
Contributors have delivered or made available to KHC correct and complete copies
of all Tax Returns, exemption reports and statements of deficiencies assessed
against or agreed to by the Company filed or received since December 31,
2004.

       

      (c)          The
unpaid Taxes of the Company did not, as of the Balance Sheet Date, exceed the
reserve for Tax liability (rather than any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) set forth
on the face of the Balance Sheet (rather than in any notes thereto) and will not
exceed that reserve as adjusted for the passage of time through the Closing Date
in accordance with the past custom and practice of the Company.

       

      (d)          The
Company has no liability for the Taxes of any Person (other than Taxes of the
Company) under Treasury regulation 1.1502-6 (or any similar provision or state,
local or foreign Law), as a transferee or successor, by contract, or otherwise
other than any contract the primary purpose of which is not the allocation or
payment of Tax liability and in which such provisions regarding Tax liability
are typical of such type of contracts).

       

      (e)           The
Company has not waived any statute of limitations in respect of any Tax or
agreed to any extension of time with respect to a Tax assessment or deficiency
(other than pursuant to extensions of time to file Tax Returns obtained in the
ordinary course of business).

       

      (f)           The
Company has not participated in any “listed transaction” within the meaning of,
and the Company has complied with the reporting requirements of, Treasury
regulation 1.6011-4.

       

      (g)          The
Company has at all times since its formation been treated, and qualified to be
treated, as a partnership for United States federal income tax purposes and will
be treated, and qualifies to be treated, as a partnership for United States
federal income tax purposes for all taxable periods through the Closing
Date.

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      
        	
                5.19

              	
                Employee Benefit
      Plans.

              

      

       

      (a)        
 Schedule 5.19(a)
of the Disclosure Schedules sets forth all material employee benefit
plans (as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974, as
amended (“ERISA”)) and all
material bonus, stock option, stock purchase, restricted stock, incentive,
deferred compensation, retiree medical or life insurance, supplemental
retirement, severance or other material benefit plans, programs or arrangements,
and all material employment, termination, severance or other material contracts
or agreements to which the Company is a party, with respect to which the Company
has any obligation or which are maintained, contributed to or sponsored by the
Company for the benefit of any current or former employee, consultant,
independent contractor officer or director of the Company, but excluding any
multiemployer plans within the meaning of Sections 3(37) or 4001(a)(3) of ERISA
(collectively, without regard to materiality, the “Plans”). The
Contributors and the Company have made available to KHC a true, current and
complete copy of (i) each Plan that has been reduced to writing, together with
all amendments; (ii) in the case of each Plan that not been reduced to writing,
a summary of all material terms of the Plan, as amended and in effect and (iii)
for each Plan, the following, to the extent applicable: (A) any related summary
plan description or similar summary; (B) any related trust agreements, group
annuity contracts, insurance contracts, administrative services agreements or
similar agreements; (C) for any such Plan for which a Form 5500 is required to
be filed, the two most recently filed Forms 5500; (D) for any Plan that is
intended to qualify under Section 401(a) of the Code, (1) a copy of the most
recent Internal Revenue Service of the United States (the “IRS”) determination
letter or, if a prototype plan, an opinion letter and (2) any material
correspondence with or notices from the IRS or the Department of Labor; and (E)
the most recent actuarial report or statement of Plan assets.

       

      (b)          Except
as set forth on Schedule 5.19(b) of the
Disclosure Schedules, each Plan that is intended to be qualified under
Section 401(a) of the Code has received a favorable determination letter or
prototype opinion letter from the IRS that the Plan is so qualified, and, to the
Knowledge of Contributor, no circumstance exists that could reasonably be
expected to adversely affect the qualified status of any Plan.

       

      (c)          Except
as set forth on Schedule 5.19(c) of the
Disclosure Schedules, (i) each Plan has been established and administered
in material compliance, in both form and operation, in accordance with its
terms, and with the applicable provisions of ERISA, the Code and other
applicable Laws, and all contributions to, premiums with respect to and benefit
payments under each such Plan have been timely made or, to the extent not yet
due, appropriately accrued, and (ii) no Plan provides retiree welfare benefits,
and the Company has no obligation to provide any retiree welfare benefits other
than as required by Section 4980B of the Code or similar State Law.

       

      (d)          With
respect to any Plan, as of the date of this Agreement (i) no claims (other than
routine claims for benefits in the ordinary course) are pending or, to the
Knowledge of Contributor, threatened in writing, (ii) no administrative
investigation, audit or other administrative proceeding by the Department of
Labor, the IRS or other Governmental Authority is pending, in progress or, to
the Knowledge of Contributor, threatened and (iii) to the Knowledge of
Contributor no event has occurred from which a material liability could arise
under the “prohibited transaction” rules (as defined in Section 406 of ERISA or
Section 4975 of the Code) and, to the Knowledge of Contributor no “fiduciary”
(as defined in ERISA Section 3(21)) has any material liability for any breach of
fiduciary duty or any other failure to act or comply in connection with the
administration or investment of the assets of any Plan.

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      (e)          Except
as set forth on Schedule 5.19(e) of the
Disclosure Schedules, none of the Company or any of its ERISA Affiliates
has at any time maintained, contributed to or incurred any material liability
under any defined benefit pension plan subject to Title IV of ERISA or any
“multiemployer plan” or “multiple employer plan” as those terms are defined in
ERISA.

       

      (f)       
   The execution, delivery and performance by the Company of its
obligations under the transactions contemplated by this Agreement and the
Transaction Documents to which it is party will not (either alone or upon the
occurrence of any additional or subsequent events) result in the triggering or
imposition of (x) any material restrictions or material limitations on the right
of the Company to amend or terminate any Plan, or (y) result in “excess
parachute payments” within the meaning of Section 280G(b)(l) of the Code that
would be non-deductible by the Company by virtue of Section 4999 of the
Code.

       

      (g)       
  The Company does not have any Plan that is subject to the Laws of a
jurisdiction other than the United States (whether or not United States Law also
applies).

       

      (h)          With
respect to any “single-employer plan,” within the meaning of Section 4001 (a)(
15) of ERISA, maintained or contributed to by the Company, (i) no liability to
the Pension Benefit Guaranty Corporation (the “PBGC”) has been
incurred (other than for premiums not yet due), (ii) no proceedings to terminate
any such plan have been instituted by the PBGC and no event or condition has
occurred which would constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any such plan and
(iii) no “accumulated funding deficiency,” within the meaning of Section 302 of
ERISA or Section 412 of the Code, whether or not waived, exists. With respect to
any “multi- employer plan,” as such term is defined in ERISA, all premiums to
the PBGC have been timely paid in full and no liability (other than for premiums
to the PBGC under Title IV of ERISA has been or is expected to be incurred by
the Company or any ERISA Affiliate.

       

      
        	
                5.20

              	
                Labor and Employment
      Matters.

              

      

       

      (a)        
 Except as set forth on Schedule 5.20 of the
Disclosure Schedules, as of the date of this Agreement (i) no employee of
the Company is represented by a labor union, work council or similar
organization in connection with their employment by the Company, (ii) the
Company is not a party to, or otherwise subject to, any collective bargaining
agreement or other labor union contract, (iii) to the Knowledge of Contributor,
no petition is currently pending, instituted or in progress by an employee or
group of employees of the Company with any labor relations board seeking
recognition of a bargaining representative, (iv) to the Knowledge of
Contributor, there is no organizational effort currently being made or
threatened by, or on behalf of, any labor union to organize employees of the
Company and no written demand for recognition of employees of the Company has
been made to the Company by, or on behalf of, any labor union, (v) there are no
unfair labor practice complaints pending against the Company before the National
Labor Relations Board or any other Governmental Authority or any current union
representation questions involving employees of the Company, and (vi) there is
no labor strike, work stoppage or lockout pending, or, to the Knowledge of
Contributor, threatened, by or with respect to any employees of the
Company.

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      (b)          The
Company is in material compliance with all employment agreements, consulting and
other service contracts, and severance and separation agreements. Section 5.20(b) of the
Disclosure Schedules lists all managers, employees and consultants of the
Company who, individually, have received or are scheduled to receive annual
compensation from the Company in excess of $200,000 for the current fiscal year,
showing each such person’s name, position, annual salary and bonuses for the
current fiscal year.

       

      (c)          The
Company, during the four (4) year period prior to the date hereof, has not taken
any action that would constitute a “Mass Layoff or ”Plant Closing“ within the
meaning of the Worker Adjustment Retraining and Notification Act (the “WARN Act”) or would
otherwise trigger notice requirements or liability under any plant closing
notice Law without complying in all material respects with the applicable
requirements under the WARN Act or such other applicable plant closing notice
Law.

       

      
        	
                5.21

              	
                Government Contracts
      and Subcontracts.

              

      

       

      (a)          Except
as set forth on Schedule 5.21(a) of the
Disclosure Schedules, (i) no cost incurred by the Company pertaining to
any Government Contract has been questioned or challenged in writing by any
Governmental Authority or representative thereof, (ii) to the Knowledge of
Contributor, all amounts previously charged or at present carried as chargeable
by the Company to any Government Contract have been or are reasonable, allowable
and allocable to each such Government Contract and (iii) no written notice has
been given of a cost accounting standard noncompliance.

       

      (b)          Except
as set forth on Schedule 5.21(b) of the
Disclosure Schedules, (i) none of the officers or to the Knowledge of
Contributor, the employees of the Company is, or since January 30, 2006, has
been, under administrative, civil or criminal investigation, or has been under
indictment by any Governmental Authority or, other than routine contract audits
by the Defense Contract Audit Agency, has been the subject of any audit,
investigation or action with respect to any alleged irregularity, misstatement
or omission arising under or relating to any Government Contract and (ii) since
its formation, the Company has not conducted or initiated any formal internal
investigation using outside counsel or consultants or made a voluntary
disclosure to any Governmental Authority with respect to any alleged
irregularity, misstatement or omission arising under or relating to any
Government Contract.

       

      (c)           There
does not exist and has not existed since January 30, 2006 any irregularity,
misstatement or omission arising under or relating to any Government Contract
that has led or would reasonably be expected to lead to any of the consequences
set forth in Section
5.21(b) above, or any other material damage, penalty assessment,
recoupment of payment or disallowance of cost.

       

      (d)          There
exists no (i) outstanding written claims against the Company, either by any
Governmental Authority or by any prime contractor, subcontractor, vendor or
other Person, arising under or relating to any Government Contract and, to the
Knowledge of Contributor, there are no facts or circumstances upon which such a
claim would reasonably be expected to be based in the future or (ii) material
disputes between the Company and any Governmental Authority under the Contract
Disputes Act, the Federal Acquisition Regulations, Acquisition Management
System or any other federal statute or regulation, or between the Company and
any prime contractor, subcontractor or vendor, in each case arising under or
relating to any Government Contract; and to the Knowledge of Contributor, there
are no facts or circumstances that could reasonably be expected to lead to such
a dispute in the future.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      
        (e)           Except
for claims for payment of fees and purchase prices in the ordinary course of
business, the Company does not have any interest in any pending claim against
any Governmental Authority or any prime contractor, subcontractor or vendor
arising under or relating to any Government Contract.

         

        (f)           Except
as set forth on Schedule 5.21(f) of the
Disclosure Schedule, routine contract audits by the Defense Contract
Audit Agency and routine security audits by the Defense Security Service, no
Government Contract to which the Company is a party is currently, or has been
within the one-year period prior to the date of this Agreement, under audit by
any Governmental Authority or any other Person that is a party to such
Government Contract.

         

        (g)           Except
as set forth on Schedule 5.21(a) of the
Disclosure Schedules, the Company has not received any draft or final
post award audit report, any draft or final notice of cost disallowance, or any
draft or final notice of noncompliance with any cost accounting standard. All
information made available or accessible by the Company for any such audit was
current, complete and accurate and in compliance in all material respects with
applicable regulations and cost accounting standards.

         

        (h)          The
Company has not been suspended or debarred from bidding on contracts or
subcontracts
for any Governmental Authority, nor to the Knowledge of Contributor, has any
suspension
or debarment action been commenced. No valid basis exists for the Company’s
suspension
or debarment from bidding on contracts or subcontracts for any Governmental
Authority.

         

        (i)           Other
than routine contract audits by the Defense Contract Audit Agency or
routine
security audits by the Defense Security Service, since January 30, 2006, the
Company has not
been, nor is it now being, audited or investigated by any government agency,
including without
limitation the General Accounting Office, the Defense Contract Audit Agency, the
Defense
Contract Administrative Service, the Department of Labor, the Department of
Health and Human
Services, the Environmental Protection Agency, the General Services
Administration, or the
Inspector General or Auditor General or similar functionary of any agency or
instrumentality,
nor, to the Knowledge of Contributor, is any such audit or investigation
threatened
in writing.

         

        (j)           The
Company does not have any disputes pending before a contracting office (not
including decisions in the ordinary course of business) of, or any current claim
pending against, any agency or instrumentality of any Governmental
Authority.

         

        (k)           Since
January 30, 2006, the Company has not, with respect to any Government Contract
(i) received a cure notice or show cause notice advising the Company that it was
in default or would, if it failed to take remedial action, be in default under
such Government Contract
or (ii) had such Government Contract terminated or cancelled other than
termination in accordance with its terms.

        
          
             

          

          
            37

            
              

            

          

          
             

          

        

         

        (1)           There
are no outstanding claims with respect to Government Contracts (other than
routine invoices in process and unbilled charges), by the Company against a
customer, or by a customer against the Company.

         

        (m)           The
Company has not received from any Governmental Authority of the United States of
America or any prime contractor or subcontractor working for a Governmental
Authority of the United States of America any special, preferential or
advantageous treatment in the award of a Government Contract, or in any other
manner, including as a “small business concern,” “small disadvantaged business”
(or “minority-owned business”), “women-owned” concern, “service disabled veteran
owned” concern, or any other socially and economically disadvantaged
classification, as defined in the Small Business Act (15 U.S.C. Sec. 631, et.
seq.), the Federal Property and Administrative Services Act (41 U.S.C. Sec.
252), Section 7102 of the Federal Acquisition Streamlining Act of 1994 (Public
Law 103-355), 10 U.S.C. Sec. 2323, Executive Order 12138, May 18, 1979, or
regulations implementing these requirements, including the Federal Acquisition
Regulations.

         

        (n)           Except
as set forth on Schedule 5.21(n) of the
Disclosure Schedules, the Company has no bids outstanding for any
Government Contract.

         

        (o)           Except
as set forth on Schedule 5.21(o) of the
Disclosure Schedules, the employees of the Company possess all United
States Government security clearances required to perform the applicable
Government Contracts of the Company (“Security Clearances”)
and the Company possesses all facility security clearances required to perform
the applicable Government Contracts of the Company (“Facility Security
Clearances”) and (A) to the Knowledge of Contributor, the
subcontractor(s) and independent contractor(s) of the Company possess all
necessary security clearances required to perform the applicable Government
Contracts of the Company; (B) except to the extent disclosure thereof is
prohibited by applicable Law, Schedule 5.2l(o) of the
Disclosure Schedules sets forth a true and complete list of all Facility
Security Clearances (by category only) held by the Company and all personnel
Security Clearances held by the employees of the Company to the extent held or
required in connection with the conduct of the business of the Company. The
clearances set forth on Schedule 5.2l(o) of the
Disclosure Schedules (except to the extent disclosure thereof is
prohibited by applicable Law) are all of the Facility Security Clearances and
personnel Security Clearances (by category only) reasonably necessary to conduct
the current business of the Company; (C) all requisite Security Clearances and
Facility Security Clearances are valid and in full force and effect; and (D) the
Company is in compliance with all material requirements of the National
Industrial Security Program Operating Manual.

        
          
             

          

          
            38

            
              

            

          

          
             

          

        

         

        (p)           Export Control. To
the Knowledge of Contributor, the Company has not been (and has not been
required by applicable Law to be) registered with or held any license from the
U.S. Department of State (Office of Defense Trade Controls) or the U.S.
Department of Commerce relating to the import, export or re-export of products,
technology, software, services or other information from the United States, and
neither the Company is required to transfer, obtain or hold any such license to
authorize the continuation of its current importing, exporting or other business
activities. The Company has not within the past five (5) years, (i) to the
Knowledge of Contributor, been the subject of an investigation or inquiry by any
Governmental Authority, (ii) subject to civil or criminal penalties imposed by
any Governmental Authority or (iii) made a voluntary disclosure with respect to
violations of applicable Laws relating to the import, export or re-export of
products, technology, software, services or other information from the United
States. The Company has not manufactured “defense articles,” exported “defense
articles” or furnished “defense services” or “technical data” to foreign
nationals in the United States or abroad, as those terms are defined in 22 Code
of Federal Regulations Sections 120.6, 120.9 and 120.10, in violation of
applicable Law.

         

        (q)           The
Company has complied in all material respects with all representations,
warranties, terms and conditions of each Government Contract and all Laws
pertaining thereto.

         

        5.22        Banking
Relationships.

         

        Schedule 5.22 of the
Disclosure Schedules sets forth (a) a list of each account, lock box or
safe deposit box of the Company (including any necessary identifying
information), (b) the name of each Person authorized to draw thereon or to have
access thereto and the name of each Person or entity, if any, holding powers of
attorney with respect thereto and (c) a summary statement of the balances and
contents thereof as of February 18, 2009 (taking into account distributions of
Cash to the members of the Company prior to the Closing). The Contributors and
the Company have taken all action necessary to terminate, effective as of the
Closing, any powers of attorney and replace each Person authorized to draw or
have access to the Company’s accounts, lock boxes and safe deposit boxes with
those designees of KHC.

         

        5.23        Improper and Other
Payments.

         

        Except as
set forth on Schedule
5.23 of the Disclosure Schedules, none of the Company, or to the
Knowledge of Contributor, any member, officer, employee, agent or representative
of the Company, or Person acting on behalf of any of them, directly or
indirectly (i) has made, paid or received any bribes, kickbacks or other similar
payments to or from any Person, whether lawful or unlawful, (ii) has made any
unlawful contributions to a domestic or foreign political party or candidate or
(iii) has made any unlawful foreign payment (as defined in the Foreign Corrupt
Practices Act, 15 U.S.C. 78dd-l et seq.). The internal accounting controls of
the Company are adequate to provide reasonable assurance that instances of any
of the foregoing are detected in a timely manner.

         

        5.24        Customers and
Suppliers.

         

        (a)           Schedule 5.24(a) of the
Disclosure Schedules sets forth a list of each customer that has
accounted for more than 5% of the revenues of the Company in any fiscal year
beginning with the fiscal year ended December 31, 2008. Except as set forth on
Schedule 5.24(a) of
the Disclosure Schedules and expect with respect to the expiration or
completion of Government Contracts or other material contracts of the Company,
the relationship between the Company and any customer set forth on Schedule 5.24(a) of the
Disclosure Schedules has not changed in any material respect since the
later of December 31, 2008 or
the commencement of such relationship nor, to the Knowledge of Contributor, is
there any fact or circumstance that could reasonably be expected to lead to any
such material change.

        
          
             

          

          
            39

            
              

            

          

          
             

          

        

         

        (b)           Schedule 5.24(b) of the
Disclosure Schedules sets forth a list of each supplier that has
accounted for more than 5% of the consolidated payments to suppliers by the
Company in any fiscal year beginning with the fiscal year ended December 31,
2008. Except as set forth on Schedule 5.24(b) of the
Disclosure Schedules and expect with respect to the expiration or
completion of Government Contracts or other material contracts of the Company,
the relationship between the Company and any supplier set forth on Schedule 5.24(b) of the
Disclosure Schedules has not changed in any material respect since the
later of December 31, 2008 or the commencement of such relationship nor, to the
Knowledge of Contributor, is there any fact or circumstance that could
reasonably be expected to lead to any such material change.

         

        (c)           To
the Knowledge of Contributor and expect with respect to the expiration or
completion of Government Contracts or other material contracts of the Company,
each of the customers and suppliers set forth on Schedules 5.24(a) of the
Disclosure Schedules will continue their relationship and continue to
conduct business with the Company after the Closing Date in the same manner and
on the same terms and conditions as prior to the Closing Date.

         

        5.25           Accounts Receivable;
Inventory.

         

        (a)           Schedule 5.25(a) of the
Disclosure Schedules sets forth a list of all Accounts Receivable of the
Company existing as of February 18, 2010, separately showing those receivables
that as of such date have not yet been billed, and billed receivables that have
been outstanding 30 days or less, 31 to 60 days, 61 to 90 days and more than 90
days.

         

        (b)           Except
as set forth on Schedule 5.25(b) of the
Disclosure Schedules, each Accounts Receivable that has been billed is
and each unbilled Accounts Receivable will be when billed (i) valid and existing
and represents monies due for goods sold and delivered and services performed in
bona fide commercial transactions; (ii) to the Knowledge of Contributor, a
legally binding obligation of the account debtor enforceable in accordance with
its terms, free and clear of all Liens and not subject to refunds, discounts
(other than trade discounts provided in the ordinary course of business),
setoffs, adverse claims, counterclaims, assessments, defaults, prepayments,
defenses or conditions precedent, (iii) to the Knowledge of Contributor, except
for the Outstanding International Treaties AR, fully collectible, net of any
reserve for uncollectible accounts and (iv) since the Balance Sheet Date, no
Accounts Receivable have been written off or sold by the Company.

         

        (c)           Any
Inventory of the Company in existence on the Closing Date is in good and
merchantable condition, usable or saleable in the ordinary course of
business.

         

        5.26           Subsidiaries.

         

        The
Company does not have and has never had any subsidiaries.

        
          
             

          

          
            40

            
              

            

          

          
             

          

        

         

        5.27           Termination of Credit
Agreement.

         

        Prior to
or simultaneously with Closing, the Company has repaid all outstanding
Indebtedness and terminated all outstanding commitments under the Credit
Agreement and caused the lenders and agents thereunder to release any security
interests in, claims to or controls over any of the assets of the
Company.

         

        5.28           No Other Representations and
Warranties.

         

        Except
for the representations and warranties expressly set forth in this Agreement
(including the Disclosure Schedules), neither the Members, Contributor nor the
Company, nor any other Person (a) makes any representations or warranty,
expressed or implied, as to condition, merchantability, suitability or fitness
for a particular purpose of any of the assets used in the Company’s business or
held by the Company, or (b) makes any representation or warranty, express or
implied, as to the accuracy or completeness of any information regarding the
Company, its business, the Members or Contributor.

         

        SECTION
6: REPRESENTATIONS AND WARRANTIES OF KHC

         

        KHC
hereby represents and warrants to Contributor, except as set forth in the
disclosure schedules attached hereto (the “KHC Disclosure
Schedules”), the following as of the date hereof (except to the extent
that a representation, warranty or information in the KHC Disclosure Schedules,
expressly states that such representation, warranty or information in the KHC
Disclosure Schedules is current only as of an earlier date):

         

        6.1             Organization, Standing and
Power.

         

        Each of
KHC and KEYW (a) is duly organized, validly existing and in good standing under
the Laws of the State of Maryland, (b) is duly qualified to do business as a
foreign entity and is in good standing in each jurisdiction in which the conduct
of its business requires it to be so qualified except where the failure to be so
qualified would not reasonably be expected to have a KHC Material Adverse Effect
and (c) has the power and authority to own or lease its properties and to
conduct its business as such business is currently conducted. KEYW is a
wholly-owned subsidiary of KHC. Other than its ownership of KEYW and KEYW’s
direct and indirect subsidiaries, KHC does not own, directly or indirectly, any
securities or other interests issued by any other Person, and is not a
participant in any joint venture. KHC has made available to the Contributors
true and complete copies of the Articles of Incorporation and Bylaws for KHC and
KEYW, each as currently in effect.

        

        
          
             

          

          
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        6.2       
    Authorization, Execution and
Enforceability.

         

        Each of
KHC and KEYW has all requisite corporate power and authority to enter into this
Agreement and each other Transaction Document to which it is a party, perform
its obligations hereunder and thereunder and consummate the transactions
contemplated hereby and thereby. The execution and delivery by each of KHC and
KEYW of this Agreement and each other Transaction Document to which it is a
party, the performance of its obligations hereunder and thereunder and the
consummation of the transactions contemplated hereby and thereby have been duly
authorized by all necessary corporate actions on the part of KHC and KEYW. This
Agreement and each other Transaction Document to which it is a party has been
duly executed and delivered by each of KHC and KEYW. Assuming the due
authorization, execution and delivery by each other party thereto, this
Agreement and each other Transaction Document constitutes the valid and binding
obligation of KHC and KEYW, enforceable against KHC and KEYW in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and other similar
Laws relating to or affecting creditors’ rights generally, by general equitable
principles (regardless of whether such enforceability is considered in a
proceeding in equity or at Law) or by an implied covenant of good faith and fair
dealing.

         

        6.3        
   No
Conflict or Violation.

         

        The
execution, delivery and performance of this Agreement and each other Transaction
Document to which it is a party, and the consummation of the transactions
contemplated hereby and thereby, in each case by KHC or KEYW will not, (a)
conflict with any of the provisions of the organizational documents of KHC or
KEYW, (b) conflict with, result in a material breach of or a material default
(with or without notice or lapse of time, or both) under, give rise to a right
of termination, cancellation or acceleration of any obligation or loss of a
material benefit under, require the consent of any Person under, or result in
the creation of any Lien on any property or asset of KHC or KEYW under, any
contract, indenture or other agreement, permit, franchise, license or other
instrument or undertaking to which KHC or KEYW is a party or by which KHC or
KEYW or any of their respective assets is bound or affected, or (c) result in a
violation or contravention of any statute, Law, ordinance, rule, regulation,
order, judgment, injunction, decree, determination or award applicable to KHC or
KEYW or any of their respective properties or assets.

         

        6.4       
    No Consent or
Filing.

         

        No
consent, approval or authorization of, or declaration or filing with, or notice
to, any Governmental Authority is required to be obtained or made by or with
respect to KHC or KEYW in connection with the execution, delivery or performance
of this Agreement and each other Transaction Document which it is a party, or
the consummation of the transactions contemplated hereby or thereby, in each
case by KHC or KEYW.

         

        6.5        
   No
Litigation; Compliance with Laws.

         

         
(a)           Except as
set forth on Schedule
6.5(a) of the KHC Disclosure Schedules, (i) there is no litigation or
other claim pending or, to the Knowledge of KHC, threatened, against KHC or any
of its Affiliates before any Governmental Authority and (ii) there are no
judgments, orders or decrees of any Governmental Authority against KHC or any of
its Affiliates. Neither KHC nor any of its Affiliates is operating under,
subject to or in default with respect to any order, award, writ, injunction,
decree or judgment of any court, arbitrator or Governmental
Authority.

         

         
(b)           Since
January 30, 2007, each of KHC and its Affiliates have conducted their respective
businesses in compliance in all material respects with applicable Law and have
received no written notice of or been charged with the violation of any
applicable Law during such period.   KHC and its Affiliates have
all material licenses, permits, franchises, orders, approvals, written waivers
and other authorizations of Governmental Authorities as are required in order to
enable each to own or lease its assets and conduct their respective businesses
in all respects as currently conducted.

        
          
             

          

          
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        6.6            
No
Brokers.

         

        No
broker, finder or similar agent has been retained by or to act on behalf of KHC
or KEYW, and no Person is entitled to any brokerage commission, finder’s fee or
any similar compensation for services provided to KHC or KEYW in connection with
this Agreement any other transaction contemplated hereby.

         

        6.7            
Securities
Act.

         

        KHC is
acquiring the Interests for investment only and not with a view to any public
distribution thereof, and KHC shall not offer to sell or otherwise dispose of
the Interests so acquired by it in violation of the registration requirements of
the Securities Act.

         

        6.8        
    Experience.

         

        KHC has
specific knowledge and experience in financial and business matters such that
KHC is capable of evaluating the merits and risks of its purchase of the
Interests and its investment in the Interests being acquired hereunder. KHC is
an “accredited investor” within the meaning of Rule 501 under the Securities
Act. KHC understands and is able to evaluate the Interests and is able to bear
any economic risks associated with such investment (including, without
limitation, the necessity of holding the securities for an indefinite period of
time, inasmuch as the Interests have not been registered under the Securities
Act or any state securities laws).

         

        6.9          
  Capitalization; KHC
Shares.

         

        (a)           The
authorized capital stock of KHC consists of 100,000,000 shares of common stock,
par value $.001 per share of which 14,187,520 are issued and outstanding. Except
as set forth on Schedule 6.9 of the KHC
Disclosure Schedules, there are no outstanding or authorized stock
appreciation, phantom stock or similar rights with respect to KHC, nor are there
any voting trusts, proxies, shareholder agreements or any other agreements or
understandings with respect to the voting of KHC’s capital stock. Except as set
forth on Schedule 6.9
of the KHC Disclosure Schedules, there are no options, warrants or other
rights to subscribe for or purchase any capital stock or other equity interests
of KHC or securities convertible into or exchangeable for, or that otherwise
confer on the holder any right to acquire any capital stock of KHC, or
preemptive rights or rights of first refusal or first offer nor are there any
contracts, commitments, agreements, understandings, arrangements or restrictions
to which KHC or to the Knowledge of KHC any stockholder of KHC is a party or by
which KHC, or to the Knowledge of KHC, any stockholder of KHC is bound relating
to any shares of KHC’s capital stock or any other equity securities of the
Company, whether or not outstanding. All outstanding capital stock and
convertible securities of KHC have been offered, issued and sold by KHC in
compliance with applicable federal and state securities Laws. Except for KHC’s
right under the KHC 2008 and 2009 Stock Incentive Plans to repurchase shares of
KHC common stock from employees of the KEYW Group who terminate their employment
with the KEYW Group, no Person has any right to require KHC, and KHC has no
right, obligation or commitment, to repurchase, redeem or otherwise reacquire
shares of its common stock.

        
          
             

          

          
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        (b) Upon
their issuance in accordance with the terms hereof, all of the KHC Shares will
be validly issued, fully paid, nonassessable and not subject to any preemptive
rights, or similar rights under the Maryland General Corporate Law, the charter
documents of KHC, or to any agreement to which KHC is a party or by which KHC
may be bound other than this Agreement and the Amended and Restated
Stockholders’ Agreement dated as of May 22, 2009. Except as set forth on Schedule 6.9 of the KHC
Disclosure Schedules, there are no options, warrants, calls, conversion
rights, commitments, agreements, contracts, understandings, restrictions,
arrangements or rights of any character to which KHC is a party or by which KHC
may be bound obligating KHC to issue, deliver or sell, or cause to be issued,
delivered or sold, any shares of its common stock. There is no agreement or
right allowing for the repurchase or redemption of such shares. Assuming the
accuracy of the representations set forth in Section 4, upon their
issuance in accordance with the terms hereof, all of the KHC Shares will have
been offered, issued and sold by KHC in compliance with applicable federal and
state securities Laws.

         

        6.10    
       Financial
Information.

         

        (a)           KHC
has furnished to the Contributors the audited balance sheets, statement of
operations and statement of changes in equity and statement of cash flows for
KEYW and its Affiliates as of December 31, 2008 (collectively, the “KHC Financial
Statements”), copies of which are attached hereto as Schedule 6.10. The
KHC Financial Statements, including the footnotes thereto, present fairly in all
material respects the financial position of KEYW as of such dates and the
results of operations and cash flow for the respective periods indicated and are
consistent with the books and records of KHC and its Affiliates. The KHC
Financial Statements have been prepared in accordance with GAAP and in
accordance with past practices on a consistent basis throughout the periods
covered thereby. The KHC Financial Statements are accompanied by the related
report of Stegman & Company, independent certified public accountants. KHC
and its Affiliates maintains a system of internal accounting controls sufficient
to provide reasonable assurances that transactions are recorded as necessary to
permit preparation of audited financial statements for KHC and its Affiliates in
conformity with GAAP and KHC and its Affiliates have established and maintained
an effective system of internal policies and controls, including operational,
financial reporting and organizational controls, sufficient to provide
reasonable assurances that all material or unique matters arising in connection
with the operation of its business are promptly reported to the senior
management of KHC and its Affiliates.

         

        (b)           Schedule 6.10 of the KHC
Disclosure Schedules sets forth the unaudited balance sheet and statement
of operations and income for KHC and its Affiliates as of December 31, 2009
(collectively, the “Unaudited KHC Financial
Statements”). The Unaudited KHC Financial Statements, including the
footnotes thereto, present fairly in all material respects the financial
position of KHC and its Affiliates for such periods and as of such dates as are
indicated therein. The Unaudited KHC Financial Statements have been prepared in
accordance with GAAP and in accordance with past practices on a consistent basis
throughout the periods covered thereby.

        
          
             

          

          
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        6.11   
        No Undisclosed
Liabilities.

         

        Except as
set forth in the KHC Balance Sheet (including the footnotes thereto) attached
hereto as part of Schedule 6.11 of the KHC
Disclosure Schedules, there are no liabilities of KHC and its Affiliates
other than (a) liabilities set forth on Schedule 6.11 of the KHC
Disclosure Schedules and (b) liabilities that have arisen since December
31, 2009 in the ordinary course of business consistent with past practice which
have not had and would not reasonably be expected to have a KHC Material Adverse
Effect.

         

        6.12          Conduct of Business; No
Company Material Adverse Effect.

         

        Except as
set forth on Schedule
6.12 of the KHC Disclosure Schedules since December 31, 2009: (a) other
than pursuing the transaction contemplated hereunder, each of KHC and KEYW has
conducted its business in all material respects in the ordinary course of
business consistent with past practice; and (b) there has not been a KHC
Material Adverse Effect.

         

        6.13           Material
Contracts.

         

        Each KHC
Material Contract is valid, binding and enforceable against KHC and KEYW, as
applicable, in accordance with its terms, except as limited by any applicable
bankruptcy, reorganization, insolvency, moratorium or similar Laws affecting the
enforcement of creditors’ rights generally and subject to general principles of
equity (whether or not considered in a court of Law or equity). There are no
existing material defaults by KHC or KEYW under any such KHC Material Contract
and to the Knowledge of KHC, whether with or without notice, lapse of time or
the happening or occurrence of any other event, no event has occurred that would
constitute a material default under any KHC Material Contract by any other party
thereto. Neither KHC nor KEYW has any KHC Material Contracts that are Loss
Contracts and, to the Knowledge of KHC, has any bids outstanding that could
result in Loss Contracts.

         

        6.14           Property and
Assets.

         

        (a)           Except
as set forth on Schedule 6.14(a) of the KHC
Disclosure Schedules, KEYW has good and marketable title to, or a valid
leasehold interest in, its respective material assets as reflected on the KHC
Balance Sheet, in each case free and clear of all Liens. Such assets constitute
all of the assets necessary to the conduct of the business of KEYW as currently
conducted. KHC has no assets other than (i) its equity interest in KEYW and cash
and (ii) those assets set forth on Schedule 6.14(a) of the KHC
Disclosure Schedules.

         

        (b)           All
material tangible personal property owned by KEYW is in good operating condition
and repair, normal wear and tear excepted.

        
          
             

          

          
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        6.15           Tax
Matters.

         

        (a)           Except
as set forth on Schedule 6.15(a) of the KHC
Disclosure Schedules, KEYW (i) has timely filed or caused to be filed or
will timely file or cause to be filed (taking into account any extension of time
to file granted or obtained) all Tax Returns required to be filed by it and all
such Tax Returns are (or will be, as appropriate) true, correct and complete in
all material respects; and (ii) has timely paid or will timely pay all material
amounts of Taxes that have become due and payable by it except to the extent
that such Taxes are being contested in good faith. There are no Liens for Taxes
upon any of the assets of KEYW. All amounts of Taxes required to have been
withheld by or with respect to KEYW have been or will be timely withheld and
remitted to the applicable taxing authority (and all related reporting and
recordkeeping requirements have been or will be complied with). No claim has
ever been made by an authority in a jurisdiction where KEYW does not file Tax
Returns that KEYW is or may be subject to taxation by that
jurisdiction.

         

        (b)           Except
as set forth on Schedule 6.15(b) of the KHC
Disclosure Schedules, to the Knowledge of KHC, there are no pending
audits, examinations, investigations or other proceedings in respect of any Tax
of KEYW and no officer (or employee responsible for Tax matters) of KHC or KEYW
expects any authority to assert any additional Taxes for any period for which
Tax Returns have been filed. No deficiency for any material amount of Tax has
been asserted in writing or assessed by any taxing authority in writing against
KEYW, which deficiency has not been satisfied by payment, settled or been
withdrawn or contested in good faith. KHC has delivered or made available to the
Contributors correct and complete copies of all Tax Returns, exemption reports
and statements of deficiencies assessed against or agreed to by KEYW filed or
received since December 31, 2004.

         

        (c)           The
unpaid Taxes of KEYW did not, as of December 31, 2009, exceed the reserve for
Tax liability (rather than any reserve for deferred Taxes established to reflect
timing differences between book and Tax income) set forth on the face of the KHC
Balance Sheet (rather than in any notes thereto) and will not exceed that
reserve as adjusted for the passage of time through the Closing Date in
accordance with the past custom and practice of KEYW.

         

        (d)           Neither
KHC not KEYW has any liability for the Taxes of any Person (other than Taxes of
KHC and KEYW) under Treasury regulation 1.1502-6 (or any similar provision or
state, local or foreign Law), as a transferee or successor, by contract, or
otherwise other than any contract the primary purpose of which is not the
allocation or payment of Tax liability and in which such provisions regarding
Tax liability are typical of such type of contracts).

         

        (e)           Neither
KHC nor KEYW has waived any statute of limitations in respect of any Tax or
agreed to any extension of time with respect to a Tax assessment or deficiency
(other than pursuant to extensions of time to file Tax Returns obtained in the
ordinary course of business).

         

        (f)           Neither
KHC nor KEYW has participated in any “listed transaction” within the meaning of,
and each of KHC and KEYW has complied with the reporting requirements of,
Treasury regulation 1.6011-4.

         

        6.16           Government
Contracts.

         

        (a)           Except
as set forth on Schedule 6.16(a) of the KHC
Disclosure Schedules, with respect to each KEYW Government
Contract:

         

        (i)           KEYW
has complied in all material respects with all representations, warranties,
terms and conditions of each KEYW Government Contract and all Laws pertaining
thereto;

        
          
             

          

          
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        (ii)           KEYW
has not received any written notice from a Governmental Authority
of the United States of America nor any prime contractor, subcontractor or other
Person
that KEYW has breached, defaulted under, or materially violated any Law,
certification, representation,
clause, provision or requirement pertaining to such KEYW Government Contract
and to
the Knowledge of KHC, there are no facts or circumstances upon which such a
claim would
reasonably be expected to be based;

         

        (iii)          no
termination for convenience, termination for default, cure notice or
show
cause notice is currently in effect pertaining to any KEYW Government
Contract;

         

        (iv)          there
are no outstanding, pending or unresolved notices of cost disallowance
pertaining to any KEYW Government Contract;

         

        (v)           to
the Knowledge of KHC, neither KEYW nor any officer or employee of KEYW or
KHC is under civil, administrative or criminal investigation or indictment or
has information
with respect to any alleged materially irregularity, misstatement or omission
arising under or
relating to any KEYW Government Contract; and

         

        (vi)          to
the Knowledge of KHC, there are no facts or circumstances that could
reasonably
be expected to result in the events described in clauses (a)(i) through and
including (a)(v)
above.

         

        (b)           Except
as set forth on Schedule 6.16(b) of the KHC
Disclosure Schedules, there are (i) no outstanding claims against KEYW,
either by any Governmental Authority or by any prime contractor, subcontractor,
vendor or other Person, arising under or relating to any KEYW Government
Contract and (ii) no disputes between KEYW and the U.S. Government under the
Contract Disputes Act or any other federal statute or between KEYW and any prime
contractor, subcontractor or vendor arising under or relating to any KEYW
Government Contract.

         

        (c)           During
the three-year period prior to the date of this Agreement, KEYW has not been
debarred or suspended from participation in the award of contracts with the U.S.
Government or any other Governmental Authority (excluding for this purpose
ineligibility to bid on certain contracts due to generally applicable bidding
requirements). No valid basis exists for KEYW’s suspension or debarment from
bidding on contracts or subcontracts for any Governmental
Authority.

         

        6.17           Solvency.

         

        Each of
KHC and KEYW is now solvent. KHC has immediately available funds sufficient to
consummate the transactions contemplated by this Agreement, including the
payment of all fees and expenses payable by KHC in connection with the
transactions contemplated by this Agreement. KHC will not become insolvent as a
result of consummating the transactions contemplated by this
Agreement.

         

        6.18           Full
Disclosure

         

        To the
Knowledge of KHC, no representation or warranty made by KHC in this Agreement
contains any untrue statement of a material fact and KHC has not omitted to
state any material fact necessary to make any of the representations or
warranties made by KHC in this Agreement not misleading in any material
respect.

        
          
             

          

          
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        6.19           KHC
Acknowledgement

         

        KHC
acknowledges that none of Contributor, the Company nor any Member, nor any other
Person acting on behalf of the Members, Contributor or the Company (a) has made
any representation or warranty, express or implied, regarding any Member, the
Company or Contributor, except as expressly set forth in this Agreement, the
other Transaction Documents to which they are a party and the Disclosure
Schedules or (b) makes or will be deemed to have made hereunder any
representations or warranties, express or implied, at law or in equity, of any
kind or nature whatsoever concerning or as to the accuracy or completeness of
any projections, budgets, forecasts or other forward-looking financial
information concerning the future revenue, income, profit or other financial
results of the Company. In addition, KHC acknowledges that there are
uncertainties inherent in attempting to make any such projections, budgets,
forecasts or other forward-looking financial information and actual results of
operations may differ materially from any such projections, budgets, forecasts
or other forward-looking financial information. KHC has conducted such
investigations of the Company as it deems necessary and appropriate in
connection with the execution and delivery of this Agreement and the
consummation of the transactions contemplated by this Agreement and has been
provided access to the Company, its books and records, management and employees,
and facilities as was necessary to conduct such investigation.

         

        6.20           No Other Representations and
Warranties.

         

        Except
for the representations and warranties expressly set forth in this Agreement
(including the KHC Disclosure Schedules), neither KHC nor any other Person (a)
makes any representations or warranty, expressed or implied, as to condition,
merchantability, suitability or fitness for a particular purpose of any of the
assets used in the business of KHC and its Affiliates or held by KHC or its
Affiliates, or (b) makes any representation or warranty, express or implied, as
to the accuracy or completeness of any information regarding KHC or the business
of KHC and its Affiliates.

         

        SECTION
7: COVENANTS

         

        7.1          Confidentiality.

         

        Except as
required by applicable Law, the Members and Contributor shall, and shall use
commercially reasonable efforts to cause Persons directly controlled by the
Members and Contributor to, for a period of five (5) years from the date hereof,
hold in confidence all knowledge and information with respect to the business of
the Company and shall not disclose, publish or make use of the same without the
prior written consent of KHC, except (i) to the extent that such information
shall have become public knowledge other than by breach of this Agreement by any
Member or Contributor; (ii) in the event such Member or Contributor is requested
in a legal proceeding (by deposition, interrogatories, requests for information
or documents in legal proceedings, subpoena, civil investigative demand or other
similar process) to disclose any of the knowledge and information, such Member
or Contributor shall give KHC prompt notice of such request so that KHC may seek
a protective order or other similar relief with respect to such disclosure so as
to maintain the confidential nature of the information and (iii) in the event
such Member or Contributor is otherwise required by law to disclose any of his
or its knowledge or information regarding KHC, such Member or Contributor shall
(if permitted by such process) give KHC notice of the information to be
disclosed and such opportunity as is reasonably practicable to review the
proposed disclosure and comment thereon.

        
          
             

          

          
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        7.2          
  Further
Actions.

         

        (a)           After
the Closing, at the request of the other, the Members, Contributor and KHC shall
cooperate and use commercially reasonable efforts to carry out the intent of
this Agreement, and each will execute and deliver such other instruments of
conveyance, assignment, transfer and delivery and take such other actions as the
other reasonably may request in order to consummate, complete and carry out the
transactions contemplated hereby.

         

        (b)           Each
party agrees that it will reasonably cooperate with and make available (or cause
to be made available) to the other parties, during normal business hours, all
books and records, information and employees (without substantial disruption of
employment) retained, remaining in existence or continuing to be employed after
the Closing Date which are necessary or useful in connection with any Tax
inquiry, audit, or dispute, any litigation or investigation or any other matter
requiring any such books and records, information or employees for any
reasonable business purpose (a “Permitted Use”). The
party requesting any such books and records, information or employees will bear
all of the out-of-pocket costs and expenses reasonably incurred in connection
with providing such books and records, information or employees. All information
received pursuant to this Section 7.2(b) will
be kept confidential pursuant to Section 7.1 by the
party receiving it, except to the extent that disclosure is reasonably necessary
in connection with any Permitted Use

         

        7.3        
    Publicity.

         

        Except as
required by applicable Law, no publicity, release or announcement concerning
this Agreement or the transactions contemplated hereby shall be issued by any
Member, Contributor or the Company, on the one hand, or KHC, on the other hand,
without the advance written consent of the other, which consent shall not be
unreasonably withheld or delayed; provided, however, that KHC
shall be permitted to make disclosures concerning this Agreement and the
transactions contemplated hereby to prospective investors, lenders and target
companies in connection with financings and acquisitions that it is
contemplating. In the event that a party is required by applicable Law to make a
release or announcement, such party shall provide the other parties with a
reasonable opportunity (if allowable by such process) (in no event less than
five (5) Business Days’ prior written notice) to review such release or
announcement before such release or announcement is made.

        
          
             

          

          
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        7.4 
            Expenses.

         

        Except as
otherwise specifically provided in this Agreement, the parties to this Agreement
shall bear their respective expenses incurred in connection with the
preparation, execution and performance of this Agreement and consummation of the
transactions contemplated hereby, including, without limitation, all fees and
expenses of agents, representatives, counsel, financial advisors, actuaries and
accountants; provided, however, that Contributor will use a portion of the cash
it receives at Closing to pay all its transaction costs and those costs incurred
by the Members and the Company in connection with this Agreement, the
Transaction Documents and the transactions contemplated hereby; provided,
further, that any transaction costs incurred by the Members and the Company that
are tendered for payment after the Closing shall be paid by Contributor or
reimbursed to KHC by Contributor and/or the Members. Notwithstanding the
foregoing, (a) Contributor and the Company, on the one hand, and KHC, on the
other hand, shall pay 50% of any costs of conveyances, notary fees and sales,
stamp, documentary, transfer and recording Taxes and fees applicable to the
Transaction Documents and the transactions contemplated hereby and (b)
Contributor and KHC shall bear equally the cost of any filing with or consent of
any Governmental Authority with respect thereto.

         

        7.5      
      [Reserved].

         

        [Reserved].

         

        7.6        
    DSS.   As soon as
practicable after the date of this Agreement, the Company, in consultation with
KHC, will prepare and submit to the Defense Security Service (DSS) of the United
States Department of Defense and, to the extent applicable, the United States
Department of Energy (DOE) a notification under the National Industrial Security
Program Operating Manual (NISPOM) and any applicable DOE security regulations,
as may be required in connection with the transactions contemplated hereby. The
Company and KHC shall use commercially reasonable efforts to cooperate and take
all reasonable efforts to avoid DSS from taking any adverse action in connection
with the security clearances of the Company’s employees or the Company’s
facility security clearance.

         

        7.7 
           Employees.   Employees of the
Company who continue to be employed by KHC, the Company or any of their
Affiliates following the Closing will be given full credit for their years of
service with the Company before the Closing for purposes of vesting and
eligibility to participate in Plans of KHC and its Affiliates that are made
available to such employees after the Closing. KHC agrees to maintain levels of
employee benefits (other than equity-based benefits) that are, in the aggregate,
comparable to those provided by the Company prior to Closing for at least
eighteen (18) months following the Closing.

         

        7.8   
         Manager and Officer
Indemnification.

         

        (a)              KHC
agrees that it will cause, for a period of six (6) years after the Closing, all
rights to indemnification existing immediately prior to the Closing in favor of
the managers (both in their capacity as managers and officers of the Company) of
the Company at or prior to the Closing as provided for in the Company Operating
Agreement as of the date hereof to continue (without amendment or modification
in any way unless required by Law) in full force. Subject to the foregoing, KHC
may, from and after the Closing, cause the Company to merge, dissolve or
reorganize.

        
          
             

          

          
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        (b)         
    This Section 7.8 will be
binding on all successors and assigns of the Company and KHC. In the event that
KHC or the Company or any of their respective successors or assigns (i)
consolidates with or merges into any other Person and will not be the continuing
or surviving corporation or entity of such consolidation or merger or (ii)
transfers all or substantially all of its properties and assets to any Person,
then and in each such case, proper provision will be made so that such
successors and assigns will assume all obligations set forth in this Section
7.8.

         

        7.9     
       Tax
Returns.

         

        (a)       
      Periods Ending on or Before the Closing
Date. The Company, at its cost and expense, will prepare or cause to be prepared
and timely file all Tax Returns required to be filed by or on behalf of the
Company after the Closing Date which apply to periods ending on or prior to the
Closing Date. No later than fifteen (15) days prior to filing, the Company will
deliver to Contributor all such Tax Returns and will permit Contributor to
review and comment on each such Tax Return and will make such revisions to such
Tax Returns as are reasonably requested by Contributor. Any Taxes of the Company
with respect to such period, shall be paid by the Company; provided, that to the
extent such Taxes were not included as a liability or not reserved against in
the calculation of Closing Date Net Working Capital, the Company will be
reimbursed by the Contributor, at Contributor’s option, by either (i) payment in
cash or (ii) set off of the outstanding principal under Section 8.2(b) hereof
and the terms of the Escrow Note.

         

        (b)       
      Periods Beginning Before and Ending After
the Closing Date. To the extent that any Tax Returns of the Company relate to
any Tax periods which begin before the Closing Date and end after the Closing
Date, the Company, at its cost and expense, will prepare or cause to be prepared
in a manner consistent with the prior Tax Returns of the Company and file or
cause to be filed any such Tax Returns. The Company will permit Contributor to
review and comment on each such Tax Return described in the preceding sentence
at least fifteen (15) days prior to filing such Tax Returns and will make such
revisions to such Tax Returns as are reasonably requested by Contributor. Any
Taxes of the Company with respect to the portion of such period ending on the
Closing Date, (i) to the extent such Taxes were included as a liability or
reserved against in the calculation of Closing Date Net Working Capital, shall
be paid by the Company or (ii) to the extent such Taxes were not included as a
liability or not reserved against in the calculation of Closing Date Net Working
Capital, will be paid by Contributor, at Contributor’s option, by either (i)
payment in cash or (ii) set off of the outstanding principal under Section
8.2(b) hereof and the terms of the Escrow Note. For purposes of this Section
7.9(b), in the case of any Taxes that are imposed on a periodic basis and are
payable for a taxable period that includes but does not end on the Closing Date,
the portion of such Tax which relates to the portion of such taxable period
ending on the Closing Date will (i) in the case of any Taxes other than Taxes
based upon or related to income or receipts, be deemed to be the amount of such
Tax for the entire taxable period multiplied by a fraction the numerator of
which is the number of days in the taxable period ending on the Closing Date and
the denominator of which is the number of days in the entire taxable period, and
(ii) in the case of any Tax based upon or related to income or receipts be
deemed equal to the amount which would be payable if the relevant taxable period
ended on the Closing Date. Any credits relating to a taxable period that begins
before and ends after the Closing Date will be taken into account as though the
relevant taxable period ended on the Closing Date.

        
          
             

          

          
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        (c)        
     The Company and KHC will prepare or cause to be
prepared all Tax Returns of the Company for periods commencing after the Closing
Date and will be responsible for paying any Taxes shown as due on such Tax
Returns, and neither any Member nor Contributor shall be liable for any such
Taxes, whether as a result in a reduction in the Aggregate Consideration, other
consideration hereunder or otherwise.

         

        (d)           
  The parties hereto agree that, for income Tax purposes, all
operations of the Company through the end of the Closing Date, including the
payment of compensation to the DCU Participants pursuant to Section 2.2(a), will
be reflected on either the Company’s or the Contributor’s partnership Tax
Returns for the period ending on the Closing Date. The parties further agree
that, for income Tax purposes, the Company will be treated as a disregarded
entity for the period beginning on the day after the Closing Date.

         

        (e)           
  The Aggregate Consideration paid hereunder shall be allocated among
the assets of the Company as mutually agreed by KHC and Contributor within
thirty (30) days after the Closing Date (the “Allocation Schedule”). Contributor
and KHC agree to use the allocations determined pursuant to the Allocation
Schedule for all Tax purposes. Contributor and KHC agree to (i) be bound by the
Allocation Schedule, (ii) act in a manner consistent with the Allocation
Schedule in the preparation of financial statements and filing of all state and
United States federal income Tax Returns and in the course of any Tax audit, Tax
review or Tax litigation relating thereto, and (iii) take no position and cause
their Affiliates to take no position inconsistent with the Allocation Schedule
for any Tax purposes.

         

        7.10           Cooperation on Tax
Matters.

         

        (a)           KHC,
the Members, Contributor and the Company (each at its, his or her own expense)
will cooperate fully, as and to the extent reasonably requested by the other
parties, in connection with the filing of all Tax Returns and any audit,
litigation or other proceeding with respect to Taxes. Such cooperation will
include the retention and (upon the other parties’ request) the provision of
records and information that are reasonably relevant to any such audit, Tax
Return or other action and making employees available on a mutually convenient
basis to provide additional information and explanation of any material provided
hereunder. KHC and the Company agree to retain all books and records with
respect to Tax matters pertinent to the Company relating to any taxable period
beginning before the Closing Date until the expiration of the statute of
limitations of the relevant taxable periods (and any extensions thereof), and to
abide by all record retention agreements entered into with any Governmental
Authority.

         

        (b)           Except
in connection with an audit resolved pursuant to Section 7.10(c)
(including consistent correlative adjustments for non-audited taxable periods),
neither KHC, the Company nor any Affiliate thereof may amend a Tax Return of the
Company or file or amend any Tax election of the Company, in each case, for a
taxable period beginning prior to the Closing Date, without the consent of
Contributor, not to be unreasonably withheld, delayed or conditioned. KHC will,
upon request by Contributor, and at its sole expense, cooperate in the
preparation of and submission to the proper Governmental Authority of any such
amended Tax Return which is required to cause such Tax Return to be consistent
with adjustments to the Tax Returns of the Company for any other taxable period
proposed by any Governmental Authority, or to give effect to an allowable loss
carryback or carryover from a taxable period of the Company ending on or before
the Closing Date.

        
          
             

          

          
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        (c)           If
the Company or KHC receives any notice of a pending or threatened Tax audit,
assessment, or adjustment relating to the Company which may give rise to
liability of the Members or Contributor hereunder, the Company or KHC, as
applicable, will promptly notify Contributor, within ten (10) Business Days of
the receipt of such notice. The parties each agree to consult with and to keep
the other parties hereto informed on a regular basis regarding the status of any
Tax audit or proceeding to the extent that such audit or proceeding could affect
a liability of such other parties (including indemnity obligations hereunder).
Contributor will have the right to represent the Company’s interests in any Tax
audit or administrative or judicial proceeding and to employ counsel of
Contributor’s choice, but reasonably satisfactory to KHC, at Contributor’s
expense, but only to the extent such audit or other proceeding pertains to
taxable periods ending on or before the Closing Date. KHC will have the right to
participate in such proceeding at its own expense, and will be entitled to
control the disposition of any issue involved in such proceeding which does not
affect a potential liability of the Members or Contributor. KHC and the Members
and Contributor will be entitled to represent their own interests in light of
their responsibilities (including indemnity obligations) for the related Taxes,
at their own expense, in any audit or administrative or judicial proceedings
involving a taxable period that includes but does not end on the Closing Date.
Notwithstanding the foregoing, neither the Members nor Contributor will agree to
any settlement for any taxable period that would affect Tax liabilities of KHC
or the Company for any taxable period beginning on or after the Closing Date
without prior written consent of KHC, not to be unreasonably, withheld or
delayed.

         

        7.11       
   Tax
Adjustment.

         

        Within
forty-five (45) days of receipt of any KHC Shares pursuant to Section 2.2(d) by the
Contributor (the “Deferred
Consideration”), each member of Contributor shall calculate (i) such
Person’s state and federal Tax liability incurred from receipt of such Person’s
portion of such Deferred Consideration, which shall include interest payable or
already paid to any taxing authority on any deferred Tax liability under Section
453A of the Code and shall take into account such portion of the Deferred
Consideration that is treated as imputed interest under the applicable
provisions of the Code and Treasury Regulations, and (ii) such Person’s state
and federal Tax liability for such Deferred Consideration had such consideration
been received at Closing and the transactions contemplated under this Agreement,
in their totality, qualified as a transfer under Section 351(a) of the Code (and
assuming the Deferred Consideration was received at Closing, and then sold, at
its then current fair market value, at the time of the Contributor’s receipt
thereof pursuant to Section 2.2(d)). If
with respect to any such Person the amount in clause (i) is greater than the
amount in clause (ii) (the “Tax Amount”), KHC
shall pay in cash as additional consideration the following portion of the
aggregate Tax Amount for all such Persons (not per individual): (A) the first
Two Hundred and Fifty Thousand Dollars ($250,000) of the aggregate Tax Amount;
and (B) one-half of any excess of the aggregate Tax Amount over Two Hundred and
Fifty Thousand Dollars ($250,000) up to a total for all aggregate Tax Amount
payments of Five Hundred Seventy Five Thousand Dollars ($575,000), as “grossed
up” to take into account any incremental Tax cost to such Person occasioned by
the payment of such difference. The calculation by each member of Contributor of
such Person’s Tax Amount and supporting work papers shall be submitted to KHC
for its review. The calculation by each member of Contributors of such Person’s
Tax Amount shall be final and binding on the parties unless, within thirty (30)
days after delivery to KHC, KHC delivers to such Person a Dispute Notice with
respect thereto, specifying in reasonable detail the items in dispute. In the
event that a party delivers a Dispute Notice, the provisions of Section 2.2(b)
governing a Closing Date Net Working Capital dispute shall be followed for
resolution of a dispute concerning this Section 2.2(e). KHC
shall pay to each Member of Contributor such Person’s Tax Amount within ten (10)
Business Days of the final determination of such amount.

        
          
             

          

          
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        7.12      
   Certain Post-Closing
Payments.

         

        (a)           Within
thirty (30) days following the Closing Date, KHC shall pay to Contributor, as
additional Cash Consideration, any Cash of the Company as of the Closing Date
that the Company did not distribute to Contributor or any other member of the
Company entitled thereto on or prior to the Closing Date.

         

        (b)           In
the event that, following the Closing Date, the Company receives A5XP Protest
Reimbursements which in the aggregate are greater than the amount of the A5XP
Protest Reimbursement included in the final calculation of Closing Date Net
Working Capital, then within five (5) Business Days of the date such A5XP
Protest Reimbursements are received, KHC shall pay to Contributor, as additional
Cash Consideration sixty percent (60%) of the difference between (i) the
aggregate amount of all A5XP Protest Reimbursements and (ii) the amount of the
A5XP Protest Reimbursement included in the final calculation of Closing Date Net
Working Capital.

         

        SECTION
8: INDEMNIFICATION

         

        8.1         
   Survival
Period.

         

        Each of
the representations, warranties, covenants, indemnities and other agreements
contained in this Agreement or in any other Transaction Document shall survive
for purposes of this Section 8 as follows:
(i) the representations and warranties shall survive until the date that is
twelve (12) months following the Closing Date (the “Survival Termination
Date”), except the representations and warranties set forth in Sections 4.1 (Title
to Interests), 4.2 (Organization, Authority,
and Capacity), 4.3 (Execution
and Enforceability), 5.2 (Authorization,
Execution and Enforceability), 5.5 (The Interests), 6.2 (Authorization,
Execution and Enforceability) and 6.9 (Capitalization; KHC Shares) shall
survive forever, (ii) the representations and warranties set forth in Sections 5.16
(Environmental Matters), 5.18 (Tax Matters),
5.19 (Employee
Benefit Plans) and 6.15 (Tax Matters)
shall survive until the expiration of any applicable statute of limitations
(after giving effect to any extension or waiver) plus forty-five (45) days, and
(iii) the covenants and agreements set forth in Section 7 and this
Section 8 shall
survive forever (unless such earlier time is provided for herein). No party
shall have any liability with respect to claims first asserted in connection
with any representation, warranty, covenant or agreement after the Survival
Termination Date. In the event, however, that notice of any claim for
indemnification for breach of a representation, warranty, covenant or agreement
under Sections 8.2 or 8.3 of this Agreement is given to the
other party in accordance with Section 10.5 prior to
or on the Survival Termination Date, the cause of action that is the subject of
such indemnification claim shall survive until such time as such claim is
finally resolved.

        
          
             

          

          
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        8.2           
 Indemnification
by the Members and Contributor.

         

        (a)           Subject
to Section 8.1,
Contributor and each Member hereby agrees that, from and after the Closing Date,
they shall jointly and severally indemnify, defend and hold harmless KHC, the
Company (post-Closing), their Affiliates, and, as applicable, their respective
directors, officers, employees, members, shareholders and agents and their
heirs, successors and assigns (collectively, the “KHC Indemnified
Parties”) from and against any demands, claims, obligations, complaints,
actions or causes of action, suits, proceedings, investigations, arbitrations,
assessments, losses, damages, liabilities, judgments, settlements, costs and
expenses (including reasonable attorneys’ fees and disbursements and the cost of
litigation) (collectively, “Losses”) asserted
against, imposed on, incurred, sustained or suffered by any such KHC Indemnified
Party relating to or arising out of (a) the breach or violation of, or failure
to perform, any representation, warranty, covenant or agreement of any Member,
Contributor or the Company contained in this Agreement and any Tax Loss imposed
or to be imposed on KHC or any member of the KEYW Group as a result of a breach
or violation of a representation or warranty set forth in Section 5.18 (Tax
Matters) (provided, that Members’ obligation to indemnify for breaches of Sections 3 and 4 or
for breaches of covenants or agreements shall be several and not joint), (b) any
Losses incurred in connection with the DCU Plans and termination of the Buy-Sell
Agreement except to the extent such Losses were included as a liability or
reserved against in the calculation of Closing Date Net Working Capital, (c) any
Losses for any Taxes or the nonpayment thereof of Contributor or the Company
with respect to any Tax period or portion thereof ending on or before the
Closing Date except to the extent such Taxes were included as a liability or
reserved against in the calculation of Closing Date Net Working Capital and (d)
any Losses incurred in connection with the claims against the Company by Patti
Comden in connection with her employment; ((b), (c) and (d) are collectively
referred to as the “Retained Losses”).
KHC’s indemnification rights under this Agreement will not be limited or
otherwise affected by any knowledge obtained by KHC prior to the Closing, with
respect to any inaccuracy or breach of any of the Members’, Contributor’s or the
Company’s representations and warranties.

         

        
          
             

          

          
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          (b)           Any
payments that the Members or Contributor are obligated to make to any KHC
Indemnified Party shall (i) first be charged against the outstanding principal
amount due under the Escrow Note if such Escrow Note is outstanding at the time
indemnification is sought and (ii) second may, at KHC’s election, be charged
against any amounts of cash or KHC Shares due to Contributor under Section
2.2(d) hereof if any amounts remain to be paid or issued under Section
2.2(d) at the time indemnification is sought (unless a Member or
Contributor, by written notice to KHC, elects to pay his or its portion of such
Losses in cash). In the event that a claim for indemnification under this Section
8 is asserted by a KHC Indemnified Party in writing prior to the date
upon which the Escrow Note becomes due or prior to the payment of the final
amount of KHC Shares and/or cash due under Section
2.2(d) (an “Unresolved
Claim”), KHC shall withhold such amount from the principal paid (and
reduce the interest calculated on such principal accordingly) upon maturity of
the Escrow Note based on the amount of the Claim or, if such Escrow Note is no
longer outstanding or insufficient for purposes of satisfying such Claim, KHC
may withhold such amounts of cash or KHC Shares due under Section
2.2(d) based on the amount of the Unresolved Claim (the amount to first
be withheld from any KHC Share consideration due), equal to the amount that it
estimates in good faith will be required to satisfy the indemnification
obligation with respect to such Unresolved Claim. For purposes of the preceding
two sentences of this Section
8.2(b), any KHC Shares withheld or charged against by KHC shall be valued
at the greater of (i) the then current Fair Market Value of the KHC Shares or
(ii) the Minimum Deemed Value Per Share. Within five (5) Business Days following
the final outcome of an Unresolved Claim, (i) if a KHC Indemnified Party is owed
any Losses and a Member has elected to pay such Losses in cash, such Member or
Contributor, as the case may be, will pay such amounts to the applicable KHC
Indemnified Party, and (ii) any amount retained by KHC (taking into account any
cash payment by a Member or Contributor) in excess of the indemnification
obligations related thereto shall be paid by KHC to the Contributor together
with interest thereon calculated in accordance with the terms of the Escrow
Note. To the extent the amount withheld under the Escrow Note is insufficient
for purposes of satisfying an indemnification obligation (or the Escrow Note has
been paid by KHC prior to payment by the Members or Contributor of the indemnity
obligation) or the KHC obligations under Section
2.2(d) to issue stock and/or cash to the Contributor have been satisfied,
any amount remaining to be paid that cannot be offset by cancellation of the
Escrow Note or nonpayment of any consideration due under Section
2.2(d) shall be paid either: (i) in cash to the KHC Indemnified Parties
by the Members or Contributor or (ii) in shares of KHC common stock valued at
its then current Fair Market Value; provided,
however,
that any liability of the Members in excess of the aggregate amount due pursuant
to the Escrow Note and Section
2.2(d) will be several and not joint.

        

         

        (c) For
purposes of this Agreement, “Tax Loss” shall mean
the present value at the time of a breach or violation of a representation or
warranty set forth in Section 5.18 (Tax
Matters) of any Taxes that would reasonably be expected to be incurred by KHC or
any member of the KEYW Group in the event of such a breach or violation, in
excess of the present value of any Taxes that would reasonably be expected to be
incurred by KHC or any member of the KEYW Group absent such breach or violation.
The calculation by KHC of the Tax Loss amount shall be final and binding on the
parties unless, within thirty (30) days after delivery of KHC’s calculation of
any Tax Loss to Contributor and the Members, Contributor and/or the Members
deliver to KHC a Dispute Notice with respect thereto, specifying in reasonable
detail the items in dispute. In the event that a party delivers a Dispute Notice
under this Section
8.2(c), the provisions of Section 2.2(b)
governing a Closing Date Net Working Capital dispute shall be followed for
resolution of a dispute concerning this Section 8.2(c). The
Contributor and/or the Members shall pay to KHC the amount of such Tax Loss
within thirty (30) days of the final determination of such amount.

         

        8.3        
    Indemnification by
KHC.

         

        Subject
to Section
8.1,
KHC hereby agrees that, from and after the Closing Date, it shall indemnify,
defend and hold harmless the Members, Contributor, their Affiliates and their
respective successors, heirs, assigns, directors, officers, employees and agents
(the “Contributor
Indemnified Parties”) from and against any Losses incurred or suffered by
any such Contributor Indemnified Party relating to or arising out of the breach
or violation of, or failure to perform, any representation, warranty, covenant
or agreement of KHC contained in this Agreement or the Promissory Notes. The
Contributors Indemnified Parties’ indemnification rights under this Agreement
will not be limited or otherwise affected by any knowledge obtained by the
Members, Contributor or the Company prior to the Closing, with respect to any
inaccuracy or breach of any of the KHC’s representations and
warranties.

        
          
             

          

          
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    8.4     
   Third Party
Claims.

     

    Promptly
after the receipt by either a Contributor Indemnified Party or a KHC Indemnified
Party (in either case an “Indemnified Party”)
of notice of the commencement of any action against such Indemnified Party by a
third party (a “Claim”), such
Indemnified Party shall, if a Claim with respect thereto is to be made pursuant
to Section 8.2
or Section 8.3,
give the Members and Contributor or KHC, as the case may be (in either case an
“Indemnifying
Party”) written notice thereof in reasonable detail in light of the
circumstances then known to such Indemnified Party along with a copy of the
Claim. The failure to give such notice shall not relieve the Indemnifying Party
from any obligation under this Section 8 except
where, and then solely to the extent that, such failure actually and materially
prejudices the rights of the Indemnifying Party. If the Claim relates to Losses
for which the Indemnified Party is entitled to indemnification pursuant to this
Section 8, the
Indemnifying Party shall have the right to defend such Claim, at the
Indemnifying Party’s expense and with counsel of its choice reasonably
satisfactory to Indemnified Party. If the Indemnifying Party assumes the defense
of such Claim, the Indemnified Party shall reasonably cooperate in such defense
so long as the Indemnified Party is not materially prejudiced thereby. The
Indemnified Party may retain separate co-counsel at its sole cost and expense
and may participate in the defense of such claim. Neither the Indemnifying Party
nor any Indemnified Party will consent, without the prior written consent of the
other, to the entry of any judgment or enter into any settlement with respect to
such Claim that does not include as an unconditional term thereof the giving by
the claimant or the plaintiff to the Indemnified Party a release from all
liability in respect of such Claim. Notwithstanding the foregoing, an
Indemnified Party shall be entitled to participate with separate counsel at the
expense of the Indemnifying Party if (i) so requested by the Indemnifying Party
or, (ii) in the reasonable written opinion of counsel to the Indemnified Party,
a conflict or potential conflict exists between either the Indemnifying Party
and the Indemnified Party which would materially prejudice the Indemnified
Party. Regardless of which party shall assume the defense of such Claim, each
party shall provide to the other parties on request all information and
documentation reasonably necessary to support and verify any Losses which give
rise to such claim for indemnification and shall provide reasonable access to
all books, records and personnel in their possession or under their control
which would have a bearing on such Claim.

     

    8.5         Limitations on
Indemnification.

     

    (a)           Other
than Losses arising from breach of Sections 4.1 (Title
to Interests), 4.2 (Organization, Authority,
and Capacity), 4.3 (Execution and
Enforceability), 5.2 (Authorization, Execution
and Enforceability), 5.5 (The
Interests), 5.16 (Environmental
Matters), 5.18
(Tax Matters), and 5.19 (Employee
Benefit Plans) (collectively, the “Non-Basket
Representations”), breach of the covenants contained in this Agreement,
and the Retained Losses, no amount is required to be paid by the Members or
Contributor with respect to claims for indemnification under this Section 8 unless and
until the aggregate amount of all Losses arising out of Claims otherwise payable
by the Members under this Section 8 exceeds
$400,000. At such time as the total amount payable by the Members and
Contributor exceeds $400,000 in the aggregate, the KHC Indemnified Parties shall
be entitled to be indemnified against the full amount of all Losses that have
been incurred or suffered by the KHC Indemnified Parties in excess of the
$400,000 threshold (i.e., a deductible basket). The Members’ total liability
under this Section
8 shall not exceed, in the aggregate, Five Million Five Hundred Thousand
Dollars ($5,500,000)(the “Indemnity Cap”);
provided, however, that the
Indemnity Cap shall not apply to indemnification obligations relating to or
arising out of the breach of any of the Non-Basket Representations, the Retained
Losses or the covenants set forth in this Agreement; and provided, further that in no
event shall the total liability of the Members and Contributor hereunder exceed
the Aggregate Consideration (with the KHC Shares valued at the Minimum Deemed
Value Per Share) and provided, further, that each
Member’s total liability under this Agreement shall not exceed the value of the
Aggregate Consideration (with the KHC Shares on a per share basis valued at the
Minimum Deemed Value Per Share) received by such Member.

    
      
         

      

      
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    (b)         Other
than Losses arising from breach of representations and warranties set forth
in 6.2 (Authorization,
Execution and Enforceability), 6.9 (Capitalization; KHC Shares) and
6.15 (Tax Matters)
(collectively, the “KHC Non-Basket
Representations”), breach of the covenants contained in this Agreement,
no amount is required to be paid by KHC with respect to claims for
indemnification under this Section 8 unless and
until the aggregate amount of all Losses arising out of Claims otherwise payable
by KHC under this Section 8 exceeds
$400,000. At such time as the total amount payable by KHC exceeds $400,000 in
the aggregate, the Contributor Indemnified Parties shall be entitled to be
indemnified against the full amount of all Losses that have been incurred or
suffered by the KHC Indemnified Parties in excess of the $400,000 threshold
(i.e., a deductible basket). The KHC’s total liability under this Section 8 shall not
exceed, in the aggregate, Five Million Five Hundred Thousand Dollars
($5,500,000) (the “KHC
Indemnity Cap”); provided, however, that the KHC
Indemnity Cap shall not apply to indemnification obligations relating to or
arising out of the breach of any of the Non-Basket Representations or the
covenants set forth in this Agreement.

     

    (c)         Solely
for purposes of determining the amount of Losses or Tax Losses that an
Indemnified Party has suffered, and not for determining whether a representation
or warranty in this Agreement is inaccurate or has been breached by a party
hereunder, where such representation or warranty is modified or otherwise
qualified by the terms “material” or Material Adverse Effect“ (or other words of
similar import), such terms or qualifiers will be ignored.

     

    (d)    
   The amount of any Losses or Tax Losses payable under this Section 8 shall be
net of any amounts actually recovered by Indemnified Parties under applicable
insurance policies after reducing such amounts by the costs of recovery
(including deductibles, retroactive or retrospective premium adjustments,
experienced based premiums) and any increase in the cost of insurance. If an
Indemnified Party receives any amounts under such applicable insurance policies
subsequent to an indemnification payment by the Indemnifying Party, then such
Indemnified Party shall promptly reimburse the Indemnifying Party for any
payment made or expense incurred by the Indemnifying Party in connection with
providing such indemnification payment up to the amount received by the
Indemnified Party, net of any expenses incurred by such Indemnified Party in
collecting such amount and any increased insurance costs resulting therefrom.
The Indemnified Parties shall be under no obligation to seek first recovery
under such insurance coverage, but will use commercially reasonable efforts
subsequently to seek recovery from any insurance coverage that may be available
if, in the reasonable opinion of such Indemnified Party, doing so will not
materially jeopardize any rights to continued coverage it may have under its
insurance coverage.

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

     

    (e)         To
the extent claims for indemnification pursuant to this Section 8 do not
involve a third party claim, an Indemnifying Party shall not be responsible or
liable for Losses or Tax Losses or other amounts under this Section 8 that are
speculative, punitive, consequential, incidental, indirect or special damages,
“multiple of profit or cash flow”, diminution of value or other premium
damages.

     

    (f)         Notwithstanding
anything herein to the contrary, no party is entitled to indemnification or
reimbursement under any provision of this Agreement for any amount to the extent
such party or its Affiliate has been indemnified or reimbursed for such amount
under any other provision of this Agreement, or any other Transaction Document
executed in connection with this Agreement or otherwise.

     

    (g)         Notwithstanding
anything else in this Section 8 to the
contrary, no party shall be limited, at any time, from recovering any and all
Losses or Tax Losses incurred or suffered by it relating to or arising out of or
in connection with fraud.

     

    8.6         Cooperation.

     

    The
parties shall cooperate with any reasonable request of the other and make
available, at the other’s expense, all information (but excluding privileged
communications) necessary for the other to pursue any indemnification or
reimbursement from a third party for any Losses or Tax Losses in the event that
the other elects to pursue such indemnification or reimbursement. Each party
agrees to use reasonable efforts to mitigate any Loss or Tax Loss which forms
the basis of a Claim hereunder. Unless otherwise required by applicable Law, all
indemnification payments will constitute adjustments to the Aggregate
Consideration for all Tax purposes, and no party will take any position
inconsistent with such characterization.

     

    8.7         Subrogation.

     

    Upon
making an indemnity payment pursuant to this Agreement, the Indemnifying Party
will, to the extent of such payment, be subrogated to all rights of the
Indemnified Party against any third party in respect of the damages to which the
payment related. Without limiting the generality of any other provision hereof,
each such Indemnified Party and Indemnifying Party will duly execute upon
request all instruments reasonably necessary to evidence and perfect the above
described subrogation rights

     

    8.8         Exclusive
Remedy.

     

    Other
than equitable remedies arising out of breaches or other violations of this
Agreement, fraud, or as otherwise provided in other documents delivered in
connection herewith, the indemnification provided by this Section 8 shall be
the sole and exclusive remedy of the Indemnified Parties for any Claims in
connection with the transactions contemplated by this
Agreement.

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

     

    SECTION
9: DELIVERIES AT CLOSING

     

    9.1         Deliveries by Contributors,
the Member or the Company at the Closing.

     

    At the
Closing, the Members, Contributor or the Company, as applicable, shall deliver
the following:

     

    (a)          a
certified copy of the resolutions adopted by the member and the board of
managers of each of Contributor and the Company authorizing the transactions
contemplated by this Agreement;

     

    (b)          a
Virginia good standing certificate for each of Contributor and the Company as of
a date not more than fifteen days prior to the Closing Date;

     

    (d)          the
employment agreements entered into between each of Curry and Wilshere and
KHC;

     

    (e)          the
Flow of Funds Memorandum;

     

    (f)           evidence
satisfactory to KHC of (i) the satisfaction of the obligations of the
Contributor and the Company to be fulfilled at the Closing under the Deferred
Compensation Unit Plan for Employees and Other Non-Advisors of The TAG Analysis
Group, LLC and the Deferred Compensation Unit Plan for Advisors of the TAG
Analysis Group, LLC (collectively, the “DCU Plans”), (ii) the
termination of the DCU Plans, and (iii) full releases of those individuals
listed on Exhibit
C hereof who
received payment pursuant to either of the DCU Plans;

     

    (g)          all
consents of third parties which are required to be obtained in order to
consummate the transactions contemplated and are listed on Schedule
9.1(h);

     

    (h)          joinder
agreements to the Amended and Restated Stockholders’ Agreement dated
as of May
22, 2009 and the Amended and Restated Registration Rights Agreement dated as of
May 22,
2009; and

     

    (i)           such
other documents as KHC may reasonably request.

     

    9.2         Deliveries by KHC to
Contributors at the Closing.

     

    At the
Closing, KHC shall deliver the following to the Members and Contributor, as
applicable:

     

    (a)          the
Aggregate Consideration in accordance with Section
2.2(a);

     

    (b)          a
certified copy of the resolutions adopted by the board of directors of KHC and
KEYW
authorizing the transactions contemplated by this Agreement;

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

     

    (c)          Maryland
good standing certificates for KHC and KEYW as of a date not more than fifteen
days prior to the Closing Date;

     

    (d)          the
employment agreements entered into between each of Curry and Wilshere and
KHC;

     

    (e)           joinder
agreements to the Amended and Restated Stockholders’ Agreement dated as of May
22, 2009 and the Amended and Restated Registration Rights Agreement dated as of
May 22, 2009; and

     

    (f)           such
other documents as the Contributors may reasonably request.

     

    SECTION
10: MISCELLANEOUS

     

    10.1 
     Interpretation.

     

    When a
reference is made in this Agreement to a Section, Schedule or Exhibit, such
reference shall be to a Section of, or a Schedule or Exhibit, to, this Agreement
unless otherwise indicated. All terms used herein in the singular shall be
deemed to include the plural, and vice versa, as the context may require. The
table of contents and headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. Whenever the words “include,” “includes,” or “including” are
used in this Agreement, they shall be deemed to be followed by the words
“without limitation.”

     

    10.2  
    Governing
Law.

     

    (a)           This
Agreement, the rights and obligations of the parties hereto, and any claims or
disputes relating thereto, shall be governed by and construed under and in
accordance with the Laws of the State of Maryland, excluding the choice of Law
rules thereof.

     

    (b)           THE
PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER EXISTING,
AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES HERETO AGREE
THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT BETWEEN OR AMONG
THE PARTIES HERETO IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY ACTION OR
PROCEEDING WHATSOEVER BETWEEN OR AMONG THEM RELATING TO THIS AGREEMENT, ANY
OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY SHALL INSTEAD
BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A
JURY.

     

    10.3   
   Counterparts;
Facsimile.

     

    This
Agreement may be executed in one or more counterparts and by facsimile (or other
electronic transmission of signature pages), all of which shall be considered
one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same
counterpart.

    
      
         

      

      
        61

        
          

        

      

      
         

      

    

     

    10.4    
  Notices.

     

    (a) All
notices, demands, requests, or other communications which may be or are required
to be given, served, or sent by any party to any other party pursuant to this
Agreement shall be in writing and shall be hand delivered, sent by overnight
courier or mailed by first-class, registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

    

     

    (i)           If
to Contributor:

    

    TAG
Holdings, LLC

    c/o D.
Patrick Curry

    316 Van
Buren Street

    Falls
Church, VA 22046

     

    with a
copy (which shall not constitute notice) to:

    

    Holland
Knight, LLP

    1600
Tysons Boulevard, Suite 700

    McLean,
VA 22102

    Attn:
William Mutryn and Marisa C. Terrenzi

     

    (iii)         If
to the Members:

    

    D.
Patrick Curry

    316 Van
Buren Street

    Falls
Church, VA 22046

    

    2008
Dennis Patrick Curry Grantor Retained Annuity Trust

    c/o D.
Patrick Curry, Trustee

    316 Van
Buren Street

    Falls
Church, VA 22046

    

    Kevin B.
Wilshere

    12773
Lost Creek Court

    Manassas,
VA 20112

     

    with a
copy (which shall not constitute notice) to:

    

    Holland
Knight, LLP

    1600
Tysons Boulevard, Suite 700

    McLean,
VA 22102

    Attn:
William Mutryn and Marisa C. Terrenzi

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

     

    (ii)          If
to KHC or the Company following the Closing:

    

    The KEYW
Holding Corporation

    1334
Ashton Road, Suite A

    Hanover,
MD 21076

    Attn:
John Krobath

     

    with a
copy (which shall not constitute notice) to:

    

    Hogan
& Hartson LLP

    100
International Drive, Suite 2000

    Baltimore,
Maryland 21202

    Attention:
A. Lynne Puckett

     

    (b)           Each
party may designate by notice in writing a new address to which any notice,
demand, request or communication may thereafter be so given, served or sent.
Each notice, demand, request, or communication which shall be hand delivered,
sent, mailed, in the manner described above, shall be deemed sufficiently given,
served, sent, received or delivered for all purposes at such time as it is
delivered to the addressee (with the return receipt, the delivery receipt, or
being deemed conclusive, but not exclusive, evidence of such delivery) or at
such time as delivery is refused by the addressee upon
presentation.

    

    10.5    
  Severability.

     

    If any
provision of this Agreement is invalid or unenforceable, the balance of this
Agreement shall remain in effect.

     

    10.6   
   Binding
Effect.

     

    All terms
of this Agreement, whether so expressed or not, shall be binding upon the
respective successors and assigns of the parties hereto and shall inure to the
benefit of and be enforceable by the respective successors and assigns of the
parties hereto.

     

    10.7  
    Assignment.

     

    This
Agreement shall not be assignable by any of the parties hereto without the prior
written consent of the other parties.

     

    10.8  
    No Third Party
Beneficiaries.

     

    Except as
specifically set forth in Section 8, nothing in
this Agreement shall create or be deemed to create any third party beneficiary
rights in any person or entity not a party to this Agreement.

     

    10.9 
     Reserved.

     

    [Reserved].

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

     

    10.10 
   Entire Agreement;
Amendments and Waivers. 

     

    This
Agreement and the exhibits, schedules, certificates and other documents
delivered in connection with this Agreement and the Closing contain and
constitute the entire agreement and understanding between the parties related to
the subject matter hereof and the Closing and supersede and cancel all prior
agreements and understandings relating to the subject matter hereof and the
Closing, whether written or oral. Neither this Agreement nor any term hereof may
be changed, waived, discharged or terminated, except in writing signed by the
parties hereto.

     

    10.11   
 Guaranty.

     

    Guarantor
does hereby unconditionally and irrevocably guarantee to Contributor the prompt
payment and performance of all obligations, monetary or non monetary, of KHC now
or hereafter owed to the Contributor pursuant to this Agreement (collectively,
the “Obligation”), and
does hereby agree that if the Obligation or any portion thereof is not paid by
KHC, Guarantor will make such payments upon written demand by Contributor.
Guarantor hereby waives and agrees not to assert or take advantage of any
defense, including unenforceability (because of bankruptcy or for any other
reason) of the Obligation, except the defense of payment in full of the
Obligation. Guarantor acknowledges that Guarantor is entering into this
Agreement in order to induce Contributor to consummate the transaction
contemplated by this Agreement.

     

    [SIGNATURES
APPEAR ON THE FOLLOWING PAGES]

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Contribution Agreement to be executed as of the
date first written above.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 	
                                          TAG
      HOLDINGS, LLC

                                        
	 	 
      
	 	
                                          By:  

                                        	
                                          /s/
      D. Patrick Curry

                                        
	 	 
      	Name: 	
                                          D.
      Patrick Curry

                                        
	 	 
      	Title: 	
                                          Manager

                                        
	 	 
      
	 	
                                          THE
      ANALYSIS GROUP, LLC

                                        
	 	 
      
	 	
                                          By: 

                                        	
                                          
                                            /s/
      D. Patrick Curry

                                          

                                        
	 	 
      	Name:  	
                                          D.
      Patrick Curry

                                        
	 	 
      	Title:
      	
                                          Manager

                                        
	 	 
      
	 	
                                          THE
      KEYW HOLDING CORPORATION

                                        
	 	 
	 	
                                          By:

                                        	
                                          
                                            /s/
      Leonard E. Moodispaw

                                          

                                        
	 	
                                            

                                        	
                                          Name:
      Leonard E. Moodispaw

                                        
	 	
                                           

                                        	
                                          Title:
      Chief Executive Officer

                                        
	 	 
      
	 	
                                          MEMBERS:

                                        
	 	 
      
	 	
                                          2008
      Dennis Patrick Curry Grantor

                                          Retained
      Annuity Trust

                                        
	 	 
      
	 	
                                          By:

                                        	
                                          
                                            /s/
      D. Patrick Curry

                                          

                                        
	 	 
      	
                                          D.
      Patrick Curry, Trustee

                                        
	 	 
      
	 	
                                          
                                            /s/
      D. Patrick Curry

                                          

                                        
	 	
                                          D.
      Patrick
Curry

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    	 	/s/  Kevin
      B. Wilshere
	 	
                            Kevin
      B. Wilshere

                          
	 	 
      
	 	
                            GUARANTOR,
      solely for the purposes of Section

                            10.11
      of the
      Agreement

                          
	 	 
      
	 	
                            THE
      KEYW CORPORATION

                          
	 	 
      
	 	
                            By: 

                          	
                            
                              /s/ Leonard E. Moodispaw

                            

                          
	 	 	 
	   
      	
                             

                          	
                            Name:
      Leonard E. Moodispaw

                          
	 	 	 
	  
      	
                             

                          	
                            Title:
      Chief Executive
Officer

                          

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
A

    Contributor
and Company Ownership

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	

                                                  Contributor
      Ownership

                                                	 
	 	 	 	 
	 	 	
                                                  Contributor

                                                	 
	 	 	
                                                  Ownership

                                                	 
	
                                                  
                                                    Name
      of Contributor
Interest
      Holder

                                                	 	
                                                  Percentage

                                                  (%)

                                                	 
	 	 	 	 	 
	
                                                  D.
      Patrick Curry

                                                	 	 	42.81	%
	 
      	 	 	 	 
	
                                                  2008
      Dennis Patrick

                                                	 	 	8.19	%
	
                                                  Curry
      Grantor Retained

                                                	 	 	 	 
	
                                                  Annuity
      Trust

                                                	 	 	 	 
	 
      	 	 	 	 
	
                                                  Kevin
      B. Wilshere

                                                	 	 	49	%
	 
      	 	 	 	 
	
                                                  Total

                                                	 	 	100	%

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Company
Ownership

    

    
      
        
          
            
              	
                      Name of Company

                      Interest Holder

                    	 	
                      Company

                      Ownership

                      Percentage

                      (%)

                    	 
	 
      	 	 	 
	
                      TAG
      Holdings, LLC

                    	 	 	100	%

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
B-1

     

    Form
of Consideration Note

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
B-1

     

    Form
of Escrow NoteTHIS
PROMISSORY NOTE IS SUBORDINATED TO ANY PRESENT OR FUTURE INDEBTEDNESS OWING FROM
THE MAKER TO BANK OF AMERICA, N.A. AND ITS ASSIGNS, AND MAY BE ENFORCED ONLY IN
ACCORDANCE WITH THAT CERTAIN SUBORDINATION AGREEMENT DATED FEBRUARY 22, 2010,
BETWEEN TAG HOLDINGS, LLC AND BANK OF AMERICA, N.A.

     

    SUBORDINATED UNSECURED
PROMISSORY NOTE

     

    
      
        	
                US
      $8,251,076.00

              	
                February 22,
  2010

              

      

    

    

    For Value
Received, THE
KEYW HOLDING
CORPORATION, a
Maryland corporation (“Company”),
hereby promises to pay to the order of TAG Holdings, LLC, a Virginia
limited liability company (“Seller”),
in lawful money of the United States of America and in immediately available
funds, the principal sum of EIGHT MILLION TWO HUNDRED FIFTY ONE
THOUSAND SEVENTY SIX DOLLARS (US $8,251,076.00) together with accrued and
unpaid interest thereon, each due and payable on the dates and in the manner set
forth below.  This Subordinated Unsecured Promissory Note (this “Note”) is
made in connection with that certain Contribution Agreement, dated as of the
date hereof (the “Contribution
Agreement”), by
and among Company, Seller, the members of Seller, The Analysis Group, LLC, a
Virginia limited liability company, and certain other parties
thereto.  All capitalized terms used but not defined herein shall have
the respective meanings assigned thereto in the Contribution
Agreement.

     

    1.           Principal
Repayment.  Subject to Section 7 hereof, the outstanding
principal amount of this Note shall be due and payable on the earlier of (i)
February 28, 2011; (ii) seven (7) days following an IPO Event (as defined
below); or (iii) simultaneous with a Change of Control (as defined below) (the
“Maturity
Date”).  Notwithstanding the foregoing, all principal payments
in respect of this Note shall be subject to Section 8 of the Contribution
Agreement, the Subordination Agreement (as defined below), and subject to the
provisions hereunder.

     

    2.           Definitions.  For
purposes of this Note, (A) a “Change of
Control” shall mean (i) any change, in a single or series of related
transactions, of fifty percent (50%) or more of the combined voting power
of all classes of the voting equity or other economic interests (including
assets) of any member or members of the HoldCo Group whose revenue,
individually or combined, is equal to or greater than fifty percent (50%)
of the aggregate revenue of all members of the HoldCo Group immediately prior to
such transaction or series of related transactions; provided, that the
issuance of the equity of a member of the HoldCo Group as
consideration in connection with such member's acquisition of assets,
equity or other property of another Person or Persons shall not in any event
constitute a Change of Control, or (ii) (x) a sale, or other
disposition of a majority of the assets of Company, (y) a transfer or sale of
more than fifty percent (50%) of the combined voting power of all classes of the
voting equity of Company, or (z) a merger or consolidation involving
Company in which Company's voting equity interests outstanding immediately prior
to such merger or consolidation are converted by virtue of the merger into other
property, whether in the form of securities, cash or otherwise, and a third
party controls Company as a result, (B) “HoldCo
Group” shall
mean Company or any direct or indirect subsidiary of Company and (C) “IPO
Event” shall
mean the consummation of an initial public offering pursuant to an effective
registration statement under the Securities Act of 1933 of any member of HoldCo
Group.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.           Interest Rate and
Payments.  Company further promises to pay interest on the
outstanding principal amount of this Note from the date hereof until payment in
full at an interest rate equal to eight percent (8%) per annum, compounded
quarterly, and such interest shall be payable in full on the date that the
principal amount hereof is required to be paid hereunder.  All
computations of interest shall be made by Seller on the basis of a year of 360
days based upon the actual number of days elapsed.  Notwithstanding
the foregoing, all interest payments and late charges in respect of this Note
shall be subject to Section 8 of the Contribution Agreement, the Subordination
Agreement, and subject to the provisions hereunder.

     

    4.           Place of
Payment.  All amounts payable hereunder shall be payable in
immediately available funds to Seller at the address or to the wire transfer
account designated by Seller by prior written notice, which notice shall contain
wire transfer instructions, if applicable.

     

    5.           Application of
Payments.  Payment on this Note received by Seller shall be
applied first to late payment charges or other sums owned to Seller hereunder,
next to accrued interest, and thereafter to the outstanding balance of the
principal amount hereof.

     

    6.           Capital Gains Rate Change
Payment.   In the event that any principal, and/or other
payment (other than interest) under this Note is paid after December 31, 2010,
the amount of any such payment shall be increased by an amount equal to (i) the
amount of such payment multiplied by (ii) the
difference, if any, between (a) the U.S. federal long-term capital gains tax
rate applicable to Seller on the date that such payment is made and (b) the U.S.
federal long-term capital gains tax rate applicable to payments made in calendar
year 2010 (the "CGRC
Payment").  Any CGRC Payment payable hereunder shall be due and
payable by Company to Seller on the date that any principal payment is required
to be paid pursuant to this Note.  In the event that the U.S. federal
long-term capital gains tax rate applicable to Seller on the date that such
payment is made is less than the U.S. federal long-term capital gains tax rate
applicable to payments made in calendar year 2010, the amount of any payment
under this Note shall be decreased by an amount equal to (i) the amount of such
payment multiplied by
(ii) the difference, if any, between (a) the U.S. federal long-term capital
gains tax rate applicable to Seller on the date that such payment is made and
(b) the U.S. federal long-term capital gains tax rate applicable to payments
made in calendar year 2010.

     

    7.           Prepayment. Company may, at its option at
any time and from time to time hereafter, prepay, in whole or part, without
premium or penalty, the outstanding principal amount of this Note, together with
accrued but unpaid interest on such principal amount to the date of
prepayment.

     

    8.           Default.  Each of
the following events shall be an “Event of
Default” hereunder:

     

    (a)             if
Company shall fail to pay timely any of the principal or interest due under this
Note on the date the same becomes due and payable and such default is not cured
within five (5) days following written notice thereof by Seller to
Company;

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b)             if
Company shall fail to perform, in the time and manner required, any of its
obligations or covenants under, or shall fail to comply with any of the
provisions of, this Note, which does not involve the failure to make a payment
when due (be it principal or interest), and such default is not cured within
thirty (30) days following written notice thereof by Seller to
Company;

     

    (c)             if
a default or event of default with respect to any Senior Debt (as defined in
Section 12 below) has occurred and is continuing and the holders of such Senior
Debt have accelerated the maturity of such Senor Debt;

     

    (d)             if
any member of HoldCo Group files any petition or commences any case or other
proceeding with respect thereto for relief under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, liquidation, or moratorium law or
any other law for the relief of, or relating to, debtors, now or hereafter in
effect, or makes any assignment for the benefit of creditors, or admits in
writing its inability to pay or generally fails to pay its debts as they mature
or become due, or takes any corporate action in furtherance of any of the
foregoing; or

     

    (e)             if
an involuntary petition is filed or any case or other proceeding is commenced
against any member of HoldCo Group (unless such petition is dismissed or
discharged within ninety (90) days) under any bankruptcy, reorganization,
arrangement, insolvency, adjustment of debt, liquidation or moratorium statute
now or hereafter in effect, or a custodian, receiver, trustee, liquidator,
assignee for the benefit of creditors (or other similar official) is applied for
or appointed for any member of HoldCo Group or is applied for or appointed to
take possession, custody or control of any property of such member of HoldCo
Group.

     

    9.           Default Interest
Rate.  Upon and from the occurrence of any Event of Default
throughout the time that such Event of Default continues and remains uncured and
that any portion of the outstanding principal amount of this Note or any CGRC
Payment remains unpaid and outstanding, such outstanding principal amount and
outstanding CGRC Payment will bear interest at the rate equal to fourteen
percent (14%) per annum.

     

    10.         Remedies.  Upon
the occurrence of
an Event of Default the then-outstanding principal balance of this Note,
together with any accrued but unpaid interest on such principal amount and all
other sums payable, shall at the option of Seller become immediately due and
payable.  Notwithstanding the foregoing, if there shall occur an Event
of Default under Section 8(d) or 8(e) above, the then-outstanding principal
balance of this Note, together with any accrued but unpaid interest on such
principal amount and all other sums payable, shall become immediately due and
payable without any action on the part of Seller.

     

    11.         Payment of
Stock.  In the event that, notwithstanding the terms of the
Subordination Agreement (or any other subordination agreement), Company does not
pay the principal amount of this Note and all accrued but unpaid interest under
this Note on the Maturity Date, Company shall pay Seller an aggregate of One
Hundred Forty Thousand (140,000) shares of common stock of
Company.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    12.         Subordination.  The
rights of Seller under this Note are expressly subordinate to the indebtedness
and other obligations to Bank of America, N.A. (the “Bank”)
pursuant to the terms of the that certain subordination agreement, dated
February 22, 2010 executed by Seller and accepted by the Bank and Company,
subordinating this Note to the Bank’s indebtedness (the “Subordination
Agreement”), and to Company’s future non-affiliated lenders of Senior
Debt to the extent provided in any future subordination agreement Seller enters
into pursuant to the terms of this Section 12; provided that any future
subordinations shall exclude Company’s obligations under Sections 1(ii) and
1(iii) hereof and shall incorporate the limitations of this Section 12. Without
limiting the terms of the Subordination Agreement, by accepting this Note,
Seller hereby agrees, upon the written request of Company, to enter into
additional subordination agreements containing such commercially reasonable
terms and conditions as Seller and such lender(s) mutually agree upon (which
terms and conditions may be less restrictive than those in the Subordination
Agreement) for the purposes of subordinating payment of the indebtedness
evidenced by this Note to any other future senior or mezzanine secured
indebtedness of Company held by the Bank or another financial institution
(collectively “Senior
Debt”); provided, that no such future subordination agreements shall
contain terms and conditions more adverse to Seller or more restrictive with
respect to Seller’s right to payments hereunder, than those contained in the
Subordination Agreement.

     

    13.         Covenants of
Company.  Until all principal hereunder is paid in full,
together with all interest and any CGRC Payment required to be paid on the date
of such payment, Company agrees to comply with the following
covenants:

     

    (a)  Company
shall cause this Note to be senior in right of payment to any other subordinated
notes or indebtedness for borrowed money incurred by Company in connection with
any future acquisition of other entities or assets by Company (excluding third
party mezzanine financing from institutional lenders, which excluded lenders
shall not include the sellers of any entity or assets acquired by Company or
their affiliates);

     

    (b)  Company
shall not redeem or purchase securities in Company from any equity holder of
Company (other than Seller) without the prior written consent of Seller until
this Note is paid in full except for any repurchases of Capital Stock of Company
in an aggregate amount not to exceed $500,000 without the prior written consent
of the lender providing the Senior Debt;

     

    (c)   At
the time Company delivers to the holders of Senior Debt any reports or financial
statements required under the documentation evidencing the Senior Debt
(including any reports or financial statements required to be delivered to the
Bank), it shall deliver copies of such reports and financial statements to
Seller; and

     

    (d)  Company
shall promptly provide the Bank (and any other lender providing Senior Debt) all
compliance certificates and other materials required by the Subordination
Agreement (or other subordination agreement entered into by Seller with respect
to the Senior Debt) to permit the payment of amounts due to Seller by the
Company.

     

    14.         Governing Law.  This
Note shall be governed by, and construed and enforced in accordance with, the
laws of the State of Maryland, excluding conflict of laws principles that would
cause the application of laws of any other jurisdiction.

     

    15.         Successors and
Assigns.  The provisions of this Note shall inure to the
benefit of and be binding on any successor to Company and
Seller.  This Note may not be assigned, transferred (by operation of
law or otherwise) or pledged by Seller without the prior written consent of
Company (which consent shall not be unreasonably conditioned, withheld or
delayed), provided that any such transferee, assignee or pledgee shall be
subject to all of the terms and conditions of this Note, including, without
limitation, Section 12 and any subordination agreement executed by Seller with
respect to this Note.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    16.         Third Party
Beneficiaries.  The provisions contained in Section 12 of this
Note are and will be for the benefit of any third party that is a holder of
Senior Debt; and, accordingly, any such third party shall have the right to
enforce such provisions of this Note.

     

    17.         Enforcement
Costs.  Should the indebtedness represented by this Note or any
part hereof be collected in any proceeding, Seller shall be entitled to collect
its reasonable fees and costs incurred in such proceeding, including reasonable
attorneys’ fees.  In addition, and without duplication, following an
Event of Default, Company shall be required to pay all reasonable attorney’s
fees and expenses incurred by Seller in enforcing and collecting this Note in
circumstances where suit is not brought, so long as the actions taken by Seller
are in compliance with and permitted under this Note or any other written
agreements signed by Seller regarding the indebtedness contemplated
hereby.

     

    18.         Waiver of Jury
Trial.  THE COMPANY AND SELLER EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT TO ANY LITIGATION BASED HEREON, OR ARISING OUT OF OR UNDER THIS NOTE, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF ANY PARTY IN CONNECTION WITH THIS NOTE.

     

    19.         Notice.  All notices
hereunder shall be provided in the manner set forth in the Contribution
Agreement.

     

    20.         Waiver.  Company
hereby expressly waives presentment for payment, demand, protest and notice of
dishonor and protest, and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement of this
Note.

     

    21.         Commercial
Loan.  Company acknowledges and warrants that the debt
evidenced hereby is a “commercial loan” within the meaning of Title 12 of the
Commercial Law Articles of the Annotated Code of Maryland.

    

    22.         Replacement of
Note.  Upon receipt by Seller of evidence satisfactory to it of
the loss, theft, destruction, or mutilation of this Note and (in the case of
loss, theft or destruction) of an indemnity reasonably satisfactory to it, and
upon surrender and cancellation of this Note, if mutilated, Company will deliver
a new Note of like tenor in lieu of this Note.  Any Note delivered in
accordance with this paragraph shall be dated as of the date of this
Note.

     

    23.         Entire Agreement;
Amendments.  This Note, together with the Contribution
Agreement and the other Transaction Documents, constitutes the entire agreement
and understanding of the parties, and supersedes and replaces in their entirety
any prior discussions, agreements, etc., all of which are merged herein and
therein.   None of the terms of this Note may be amended or
otherwise modified except by an agreement in writing executed by each of Company
and Seller.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    In Witness
Whereof, this Subordinated Unsecured Promissory Note has been duly
executed as an instrument under seal as of the date first set forth
above.

    

    
      
        
          
            	
                    COMPANY:

                  	
                    THE
      KEYW HOLDING CORPORATION

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ John E. Krobath

                  
	 	 	 
	 
      	
                    Name:

                  	
                    John
      E. Krobath

                  
	 	 	 
	 
      	
                    Title:

                  	
                    Chief
      Financial Officer

                  

          

        

      

    

    

    Acknowledged
and Agreed:

    

    
      
        
          	
                  SELLER:

                	 
      
	 
      	 
      
	
                  /s/ D. Patrick Curry

                	 
      
	
                  TAG
      Holdings, LLC

                	 
      

        

      

    

    

    Date
of Note:  February 22, 2010

    Payor:  The
KEYW Holding Corporation

    Principal
Amount:   $8,251,076.00

    

    Signature
Page to Promissory Note

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