Document:

EXHIBIT 10.8

 EXHIBIT 10.8 
  
 CONSENT AND THIRD AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT 
  
 THIS CONSENT AND THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Amendment”), dated as of July 25, 2005, is made by and among NCI INFORMATION SYSTEMS, INCORPORATED, a Virginia corporation
(“NCI Virginia”), and SCIENTIFIC AND ENGINEERING SOLUTIONS, INC., a Maryland corporation (“SES,” together with NCI Virginia, collectively, the “Borrowers,” and individually, a
“Borrower”), the several banks and other financial institutions from time to time party to the Loan Agreement (the “Lenders”), SUNTRUST BANK, or such Affiliate as it shall designate, in its capacity as Lead
Arranger and Book Manager (in such capacity, the “Arranger”) and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”). 
  
 RECITALS 
  
 The Lenders and the Borrowers are parties to a certain Loan and Security
Agreement, dated as of December 23, 2003, as amended by the Amendment to Loan and Security Agreement, dated as of May 6, 2004, but effective as of December 31, 2003, as amended by the Second Amendment to Loan and Security Agreement, dated as of
March 15, 2005, but effective as of September 30, 2004 (as further amended, modified or supplemented from time to time, the “Loan Agreement”). Capitalized terms defined in the Loan Agreement and undefined herein shall have the same
defined meanings when such terms are used in this Amendment. 
  
 NCI Acquisition, LLC, a Virginia limited liability company (“Acquisition”) is or will be a direct, wholly owned subsidiary of NCI, Inc., a Delaware corporation (“NCI Delaware”). Narang will
contribute all of his shares of capital stock of NCI Virginia to Acquisition in exchange for shares of Class B common stock of NCI Delaware (each, a “NCI Delaware Class B Share”) pursuant to a Share Exchange Agreement in the form
attached hereto as Exhibit A-1 (the “Share Exchange Agreement”). The transactions contemplated by the Share Exchange Agreement are referred to as the “Narang Share Exchange.” NCI Virginia, Acquisition and NCI
Delaware will become parties to an Agreement and Plan of Merger in the form of Exhibit A-2 attached hereto (the “Merger Agreement”). Pursuant to the provisions of the Merger Agreement, (1) NCI Virginia will merge with
Acquisition, with NCI Virginia being the surviving entity of such merger, and the existence of Acquisition terminating (the “Merger”), and (2) each share of common stock, par value $0.01 per share, of NCI Virginia issued and
outstanding (each, a “NCI Virginia Share”) converting, by virtue of the Merger and without any action on the part of the holder thereof, into a right to receive, upon surrender of the certificate representing such NCI Virginia
Share, one share of Class A common stock of NCI Delaware (each, a “NCI Delaware Class A Share”), with all NCI Virginia Shares owned by NCI Virginia as treasury stock being, by virtue of the Share Conversion, no longer outstanding,
and automatically cancelled and retired without payment of any consideration therefor (the “Share Conversion,” and together with the 
  

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 Narang Share Exchange and the Merger, collectively, the “Reincorporation Transaction”). As a result of
the Reincorporation Transaction, and pursuant to the terms and conditions of the Share Exchange Agreement and the Merger Agreement, NCI Delaware will became the holder of all of the outstanding capital stock of NCI Virginia. 
  
 To finance the payment of a portion of a distribution to the shareholders of
NCI Virginia, the Borrowers have requested that the Lenders make a time loan to the Borrowers of up to $15,000,000. The Lenders have agreed to do so, subject to the terms and conditions hereof. 
  
 The Borrowers have requested that the Lenders consent to the Reincorporation
Transaction and to the initial public offering of the NCI Delaware Class A Shares and amend certain provisions of the Loan Agreement to take into account the effect of the Reincorporation Transaction, the initial public offering and certain
dividends by NCI Virginia and/or NCI Delaware. The Lenders have agreed to do so, subject to the other terms of this Amendment. 
  
 Accordingly, for valuable consideration, the receipt and sufficiency of which are acknowledged, the parties hereto agree as follows: 
  
 AGREEMENT 
  
 1. Incorporation of Recitals. The Recitals hereto are incorporated
herein by reference to the same extent and with the same force and effect as if fully set forth herein. 
  
 2. Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows: 
  
 (a) All references in the Loan Agreement to the Company shall mean NCI Virginia prior to the satisfaction of the
Reincorporation Conditions, as hereinafter defined, and NCI Delaware from and after satisfaction of the Reincorporation Conditions. 
  
 (b) The definitions of “Borrower” and “Borrowers” in Section 1 of the Loan Agreement shall be deemed to include NCI Delaware from and
after satisfaction of the Reincorporation Conditions. 
  
 (c) The
following definitions are added in the appropriate alphabetical order to Section 1 of the Loan Agreement: 
  
 “AAA Distribution” means any distribution made by either NCI Virginia or NCI Delaware out of NCI Virginia’s accumulated
adjustments account with respect to the cumulative total of undistributed Net Income items generated by NCI Virginia during the period of the effectiveness of its election to be treated as an S corporation under the Code. 
  

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 “Deposit Rate” means, if applicable, the rate of interest paid on the deposit
account maintained with the Administrative Agent and pledged and assigned pursuant to the Narang Security Agreement. 
  
 “IPO” means the initial public offering of the NCI Delaware Class A Shares. 
  
 “Narang” means Chander K. Narang. 
  
 “Narang Security Agreement” means the Custody
Account Security Agreement, dated as of July 25, 2005, from Narang in favor of the Administrative Agent for the ratable benefit of the Lenders, as the same may be amended, modified or supplemented from time to time. 
  
 “NCI Delaware” means NCI, Inc., a Delaware
corporation. 
  
 “NCI Virginia” means
NCI Information Systems, Incorporated, a Virginia corporation. 
  
 “Permitted AAA Distributions” means AAA Distributions in an aggregate amount not to exceed (a) up to $18,000,000 to be funded by Revolving Loans in an aggregate amount not to exceed $3,000,000 and the Time
Loans in an aggregate amount of up to $15,000,000, plus (b) an additional amount approved by the Board of Directors of NCI Delaware and/or NCI Virginia, as applicable, to be paid concurrently with the receipt of the Net Cash Proceeds of the Equity
Issuance in connection with the IPO or within 12 months thereafter, provided that in to event shall the total amount of Permitted AAA Distributions exceed $23,000,000 plus the amount by which the Net Cash Proceeds of the Equity Issuance in
connection with the IPO exceeds $30,000,000. 
  
 “Time Loan” has the meaning assigned to such term in as defined in Section 2.8A. 
  
 “Time Loan Commitment” means as to any Lender, the obligation of such Lender, if any, to make a Time Loan to the Borrowers
hereunder in a principal amount not to exceed the amount set forth with respect to such Lender on the signature pages to this Agreement. The original aggregate amount of the Time Loan Commitments is $15,000,000. 
  
 “Time Loan Date” shall mean the date on which the
Time Loans are made. 
  

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 “Time Loan Lender” means each Lender that has an undrawn Time Loan Commitment
or, after the Time Loan Date, is the holder of a Time Loan. 
  
 “Time Loan Percentage” means as to any Time Loan Lender at any time, the percentage which such Lender’s undrawn Time Loan Commitment then constitutes of the aggregate undrawn Time Loan Commitments (or,
at any time after the Time Loan Date, the percentage which the aggregate principal amount of such Lender’s Time Loans then outstanding constitutes of the aggregate principal amount of the Time Loans then outstanding). 
  
 “Time Loan Maturity Date” means on the first to
occur of (a) NCI Delaware’s receipt of the Net Cash Proceeds of the Equity Issuance in connection with the IPO, (b) six months after the Time Loan Date, or (c) March 31, 2006. 
  
 “Time Loan Reserve” shall mean at any time: (a) if United States Treasury bills are pledged as
security under the Narang Security Agreement, the amount by which the quotient obtained by dividing the sum of the outstanding Time Loans by 0.95 exceeds the sum of the outstanding Time Loans, or (b) zero if a deposit maintained by Narang with the
Administrative Agent is pledged as security under the Narang Security Agreement. 
  
 “Time Note” means a promissory note payable to the order of a requesting Time Loan Lender, in form and substance acceptable to
the Administrative Agent and the requesting Time Loan Lender, in the principal amount of such Time Loan Lender’s Time Loan, and evidencing the joint and several obligations of the Borrowers to repay the Time Loan made by such Time Loan Lender,
together with interest thereon, and all extensions, renewals, modifications and amendments of such note, made in accordance with the terms hereof. 
  
 “Voting Control” means the ownership of shares of stock representing the right to vote not less than 51% of the votes on all
matters submitted to a vote of the stockholders of the Company. 
  
 (d) The following definitions in Section 1 of the Loan Agreement are hereby amended to read as follows: 
  
 “Aggregate Exposure” means, with respect to any Lender at any time, an amount equal to the sum of (i) the aggregate then unpaid
principal 
  

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 amount of such Lender’s Term Loans, (ii) the aggregate then unpaid principal amount of such
Lender’s Time Loans (or, prior to the Time Loan Date, the amount of such Lender’s Time Loan Commitment then in effect), and (iii) the amount of such Lender’s Revolving Commitment then in effect or, if the Revolving Commitments have
been terminated, the amount of such Lender’s Revolving Credit Exposure then outstanding. 
  
 “Borrowing Base” means, at the time in question, the sum of the following, without duplication, (a) 90% of Eligible Billed
Government Receivables arising out of Government Contracts on which a Borrower is a prime contractor; plus (b) 85% of Eligible Billed Government Receivables arising out of Government Contracts on which a Borrower is a subcontractor;
plus (c) 85% of Eligible Billed Commercial Receivables; minus (d) the Term Loan Reserve; minus (e) the Time Loan Reserve, and minus (f) the Contingent Payment Reserve; provided, however, that if the
Borrowing Base attributable to clauses (b) and (c) shall exceed 25% of the Borrowing Base, the Administrative Agent may, with written notice to the Borrowers, reduce the advance percentage used in clauses (b) and (c) from 85% to such lower
percentage as the Lender shall deem to be appropriate, provided that at no time will such percentage be reduced to less than 80% without the consent of the Borrowers. For the purposes of determining the Borrowing Base as of the end of each calendar
month, an Eligible Receivable may be treated as having been billed if the applicable Borrower is then entitled under the term of the contract or agreement with the applicable Customer to bill such Eligible Receivable and an appropriate invoice is
delivered to such Customer by the 20th day of the next succeeding calendar month; provided that in no event shall an
Eligible Receivable which has not been billed as of the date of any Borrowing Base Certificate be classified as an Eligible Billed Commercial Receivable or an Eligible Billed Government Receivable on such Borrowing Base Certificate. 
  
 “Cash Flow Available for Fixed Charges” means, for
any period, EBITDA for such period, minus Restricted Payments paid during such period, other than Permitted AAA Distributions, minus income taxes paid in cash during such period, and minus Non-Financed Capital Expenditures for
such period, all as determined on a consolidated basis for the Company and its Subsidiaries in accordance with GAAP. 
  
 “Class,” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are Revolving Loans, Swingline Loans, Term Loans or Time Loans and when 
  

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 used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a
Swingline Commitment, a Term Loan Commitment or a Time Loan Commitment. 
  
 “Commitment” shall mean a Revolving Commitment, a Swingline Commitment, a Term Loan Commitment or a Time Loan Commitment, or any combination thereof (as the context shall permit or require). 
  
 “Funded Debt Ratio” means, at any time, the ratio
of (a) consolidated Funded Debt of the Company and its Subsidiaries then outstanding, excluding the Time Loans for as long as the security pledged and assigned to the Administrative Agent pursuant to the Narang Security Agreement consists of a
deposit account maintained with the Administrative Agent or United States Treasury bills, maturing not later than six months after the Time Loan Date and held in a securities account under the control of the Administrative Agent, to (b) consolidated
EBITDA of the Company and its Subsidiaries for the period of four fiscal quarters most recently ended, or, if such determination is being made at the end of a fiscal quarter of the Company, for the period of four fiscal quarters then ended.

  
 “Loan Documents” means this
Agreement, each Notice of Borrowing, each Revolving Note, the Swingline Note, each Term Note, each Time Note, the Narang Security Agreement, each Assumption Agreement, each Intellectual Property Assignment, each Letter of Credit Agreement, each LC
Document, each Hedging Agreement between any Borrower and the Administrative Agent or any Lender or the Issuing Bank or any Affiliate of the Administrative Agent or any Lender or the Issuing Bank, any Mortgage and any other document now or hereafter
executed or delivered in connection with the Obligations, in evidence thereof or as security therefor, including, without limitation, any life insurance assignment, pledge agreement, security agreement, interest rate swap agreement or similar
agreement, deed of trust, mortgage, guaranty, promissory note or subordination agreement. 
  
 “Loans” means all Revolving Loans, Swingline Loans, Term Loans and Time Loans in the aggregate or any of them, as the context
may require, to be made by the Lenders to the Borrowers pursuant to Section 2.1 of this Agreement. 
  
 “Minimum Compliance Level” means (a) Net Worth of (1) zero as of September 30, 2005, (2) $2,000,000 as of December 31, 2005, (3)

  

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 $2,500,000 as of March 31, 2006, (4) $3,700,000 as of June 30, 2006, (5) $4,900,000 as of September 30,
2006, and (6) $6,400,000 as of December 31, 2006, and at all times thereafter, (b) adjusted upwards (1) as of the end of each fiscal quarter of the Company by an amount equal to 70% of (i) the Net Cash Proceeds of any Equity Issuance, and (ii) the
fair market value, as determined in accordance with GAAP, of any non-cash proceeds of any Equity Issuance received by the Company or any Subsidiary subsequent to June 30, 2005. In addition, the Minimum Compliance Level shall adjusted upwards or
downwards, as applicable, as follows: (i) upwards as of the end of any fiscal quarter by the amount that the aggregate amount of Permitted AAA Distributions paid after June 30, 2005 and prior to the end of such fiscal quarter is less than
$18,000,000, or (ii) downwards, in an aggregate amount not greater than $5,000,000, by the amount that the aggregate amount of Permitted AAA Distributions paid after June 30, 2005 and prior to the end of such fiscal quarter exceeds
$18,000,000.” 
  
 “Notes” shall
mean, collectively, the Revolving Notes, the Swingline Note, the Term Notes and the Time Notes. 
  
 “Notice of Borrowing” shall mean a written notice (or telephonic notice promptly confirmed in writing) constituting a request
for a Revolving Loan Borrowing or a Swingline Loan, containing the specific requirements of Sections 2.3, 2.5, 2.8 or 2.8B, as the case may be. 
  
 “Obligations” means (a) the Loans, the LC Disbursements, the Revolving Notes, the Term Notes, the Time Notes, the Letter of
Credit Agreements, all indebtedness and obligations of a Borrower under this Agreement and the other Loan Documents, and all other Debt and obligations of a Borrower to the Administrative Agent, the Issuing Bank or any Lender (including the
Swingline Lender) arising out of or relating to any Loan Document, now existing or hereafter arising, of every kind and description, direct or indirect, fixed or contingent, liquidated or unliquidated, due or to become due, secured or unsecured,
joint, several or joint and several, as amended, modified, renewed, extended or increased from time to time, including without limitation, all principal, interest (including any interest accruing after the filing of any petition in bankruptcy or the
commencement of any insolvency, reorganization or like proceeding relating to the Borrowers, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), (b) any overdrafts in any deposit account maintained by a
Borrower with the Administrative Agent or any Lender (including the Swingline Lender), (c) 
  

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 any obligations arising under any Hedging Agreements between a Borrower and the Administrative Agent or
any Affiliate of the Administrative Agent, (d) any obligations under any purchasing card or credit card account established for a Borrower by the Administrative Agent or any Affiliate of the Administrative Agent, (e) any obligations of a Borrower
arising under any agreement between a Borrower and the Administrative Agent or any Affiliate of the Administrative Agent relating to foreign exchange transactions, (f) all reimbursement obligations, fees, expenses, indemnification and reimbursement
payments, costs and expenses (including all fees and expenses of counsel to the Administrative Agent and any Lender) incurred pursuant to this Agreement or any other Loan Document, and (g) all obligations and liabilities incurred in connection with
collecting and enforcing the foregoing, together with all renewals, extensions, or modifications thereof. 
  
 (e) Section 2.1 of the Loan Agreement is amended to read as follows: 
  
 “2.1. Loans and Letters of Credit. Subject to the terms and conditions of this Agreement,
(a) the Revolving Credit Lenders hereby establish in favor of the Borrowers a revolving credit facility pursuant to which the Revolving Credit Lenders severally agree (to the extent of each Revolving Credit Lender’s Revolving Credit Percentage
up to such Revolving Credit Lender’s Revolving Commitment) to make Revolving Loans to the Borrowers in accordance with Section 2.2; (b) the Issuing Bank agrees to issue Letters of Credit for the account of the Borrowers in accordance with
Section 2.6; (c) the Swingline Lender agrees to make Swingline Loans in accordance with Section 2.4; (d) each Revolving Credit Lender severally agrees to purchase a participation interest in the Letters of Credit and the Swingline Loans pursuant to
the terms and conditions hereof; provided, that in no event shall the aggregate amount of Revolving Credit Exposure exceed at any time the Aggregate Revolving Commitments from time to time in effect; (e) each Term Loan Lender severally agrees to
make a Term Loan to the Borrowers in a principal amount not exceeding such Term Loan Lender’s Term Loan Commitment on the Closing Date, and (f) each Time Loan Lender severally agrees to make a Time Loan to the Borrowers in a principal amount
not exceeding such Time Loan Lender’s Time Loan Commitment on or before September 30, 2005.” 
  

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 (f) The following Sections 2.8A and 2.8B are added to follow Section 2.8 of the Loan Agreement and to
precede Section 2.9 of the Loan Agreement: 
  
 “2.8A. Time Loan Commitments. Subject to the terms and conditions set forth herein, each Time Loan Lender severally agrees to make a loan (each, a “Time Loan”) to the Borrowers on or before September 30, 2005,
in a principal amount not to exceed the Time Loan Commitment of such Time Loan Lender; provided, that if for any reason the full amount of such Time Loan Lender’s Time Loan Commitment is not fully drawn by such date, the undrawn portion thereof
shall automatically be cancelled. 
  
 2.8B.
Procedure for Borrowing Time Loans. The Company, on behalf of the Borrowers, shall give the Administrative Agent a Notice of Borrowing with respect to the Time Loans prior to 10:00 a.m. on the Business Day on which the Time Loans are
to be disbursed. Such Notice of Borrowing under this Section shall be irrevocable and shall specify: (i) the principal amount of each such Time Loan, and (ii) the account of the Company to which the proceeds of such Time Loan should be credited. The
Administrative Agent will promptly advise the Time Loan Lenders of such request and the details thereof.” 
  
 (g) The following is added as subparagraph (f) at the end of Section 2.10 of the Loan Agreement: 
  
 “(f) Notwithstanding the foregoing provisions of this
Section 2.10 or the provisions of Section 2.12, the Time Loans shall bear interest at a rate per annum equal to the (1) Index Rate plus 0.45% if the collateral pledged pursuant to the Narang Security Agreement consists of United States Treasury
bills, based on the Index Rate in effect on the first Index Rate Determination Date therefor, and shall be adjusted on each Index Rate Determination Date thereafter to reflect the Index Rate then in effect, and (2) the Deposit Rate plus 1% if the
collateral pledged pursuant to the Narang Security Agreement is a deposit account maintained with the Administrative Agent, adjusted when and as the Deposit Rate is changed. Interest on the principal amount of all Time Loans shall accrue from and
including the date such Time Loans are made to but excluding the date of any repayment thereof. Interest on all outstanding Time Loans shall be payable monthly in arrears on the last day of each calendar month and on the Time Loan Maturity
Date.” 
  

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 (h) The following is added as subparagraph (d) at the end of Section 2.11 of the Loan Agreement:

  
 “(d) The Borrowers unconditionally
promise to pay to the Administrative Agent for the account of each Time Loan Lender the then unpaid principal amount of the Time Loans of such Time Loan Lender, together with all accrued and unpaid interest thereon, on the Time Loan Maturity Date.
Notwithstanding the provisions of Section 2.23, the Net Cash Proceeds of any Equity Issuance in connection with the IPO shall be first applied to the prepayment of the Time Loans. Each optional prepayment in respect of the Time Loans shall be
allocated pro rata according to the respective outstanding principal amounts of the Time Loans. Each payment (including each prepayment) of the Time Loans shall be allocated among the Time Loan Lenders holding such Time Loans
pro rata based on the principal amount of such Time Loans held by such Time Loan Lenders. Amounts prepaid on account of the Time Loans may not be reborrowed.” 
  
 (i) The following is added at the end of Section 2.21(a) of the Loan Agreement: 
  
 “The Time Loan Commitments shall terminate on September
30, 2005 or upon the making of the Time Loans pursuant to Section 2.8A. 
  
 (j) The following sentence is added at the end of Section 4.9 of the Loan Agreement: 
  
 “The Borrowers shall use the proceeds of the Time Loans and an aggregate amount of up to $3,000,000 of the Revolving Loans to be
disbursed on the date of disbursement of the Time Loans, to make Permitted AAA Distributions on or before September 30, 2005.” 
  
 (k) Section 6.6 of the Loan Agreement is amended to read as follows: 
  
 “6.6 Restricted Payments. No Borrower shall make any Restricted Payment if (a) an Event
of Default has occurred and is continuing, or would occur after giving effect thereto, or if, assuming that such Restricted Payment had been made on the last day of the immediately preceding fiscal quarter, the Company would not have been in
compliance with the financial covenants contained in Section 7, or (b) the aggregate amount of AAA Distributions would exceed Permitted AAA Distributions.” 
  

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 (l) Section 6.13 of the Loan Agreement is amended to read as follows: 
  
 “6.13 Capital Expenditures. No Borrower
will make Capital Expenditures during any fiscal year if, after giving effect thereto, the aggregate amount of Capital Expenditures for all Borrowers would exceed $2,000,000 for the fiscal year of the Company ending on December 31, 2005, or
$1,500,000 for any subsequent fiscal year; provided, that if the amount expended in the fiscal year ended on December 31, 2005 is less than $2,000,000, the shortfall, may be carried over for expenditure in the next succeeding fiscal
year.” 
  
 (m) The following is added as subparagraph (f) at
the end of Section 8.2 of the Loan Agreement: 
  
 “(f) On or prior to the date of disbursement of the Time Loans, the Administrative Agent shall have (1) received the Narang Security Agreement, duly executed and delivered by Narang, and (2) a perfected first priority security interest
in a deposit account maintained with the Administrative Agent in the amount of the Time Loans, or United States Treasury bills, maturing no later than six months after the Time Loan Date, and with an aggregate purchase price equal to the amount of
the Time Loans.” 
  
 (n) Section 9.1(a) of the Loan Agreement
is amended to read as follows: 
  
 “(a)
Failure of a Borrower to pay any Obligation, including, without limitation, the principal of or interest on any Revolving Note, Term Note, Time Note, the Swingline Note or the Loans, or any reimbursement obligation in respect of any LC Disbursement
or other amounts due under a Letter of Credit Agreement, when the same shall become due and payable, whether at maturity, or otherwise, and such failure shall continue for a period of ten days after written notice from the Administrative Agent or
any Lender (which may be a computer generated late payment notice); or” 
  
 (o) From and after the date on which the Reincorporation Conditions are satisfied, Section 9.1(p) of the Loan Agreement shall be amended to read as follows: 
  
 “(p) If Chander K. Narang at any time owns less than
Voting Control of the Company, free and clear of all Liens; or” 
  
 (p) From and after the date on which the Reincorporation Conditions are satisfied, Section 9.1(q) of the Loan Agreement shall be deleted and such section shall be amended to read as “reserved.” 
  

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 (q) Except as specifically modified by this Amendment, the terms and provisions of the Loan Agreement are
ratified and confirmed by the parties hereto and remain in full force and effect. 
  
 (r) Each of the Borrowers, the Administrative Agent and each Lender agrees that each reference in the Loan Documents to the Loan Agreement shall be deemed to be a reference to the Loan Agreement as amended hereby.

  
 3. Consents. The Administrative Agent and the Lenders
hereby: 
  
 (a) Grant consent to the Reincorporation Transaction
as expressed in the Share Exchange Agreement and the Merger Agreement, and agree that such Reincorporation Transaction shall not constitute an Event of Default under any of the provisions of the Loan Agreement, provided that the following conditions
are satisfied (the “Reincorporation Conditions”) as of the effective date of the Reincorporation Transaction (the “Reincorporation Date”): 
  
 (i) No Default or Event of Default shall have occurred and be continuing as of the Reincorporation Date; 
  
 (ii) All representations and warranties contained in the Loan Documents
shall be true and correct in all material respects as if made on the Reincorporation Date (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date, in which case such representation or
warranty shall be true and correct as of such date 
  
 (iii) The
Administrative Agent shall have received and approved the Share Exchange Agreement and the Merger Agreement and all other documents relating to the Reincorporation Transaction; 
  
 (iv) The Narang Share Exchange, the Merger and the Share Conversion shall have become effective in accordance in all
material respects with the terms of the Share Exchange Agreement and the Merger Agreement; 
  
 (v) the Certificate of Incorporation of NCI Delaware shall be effective in the form of Exhibit B attached to this Amendment, with such changes therein as shall have been approved by the Administrative Agent in
writing; 
  
 (vi) the Bylaws of NCI Delaware shall be effective
in the form of Exhibit C attached to this Amendment, with such changes therein as shall have been approved by the Administrative Agent in writing; 
  

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 (vii) Narang shall have become the owner of the NCI Delaware Class B Shares in accordance with the terms
of the Share Exchange Agreement and has Voting Control of NCI Delaware, free and clear of all Liens; and 
  
 (viii) all of the conditions in Section 8.3 of the Loan Agreement shall have been satisfied with respect to NCI Delaware (except that NCI Delaware shall
be the parent of NCI Virginia rather than a Subsidiary); and 
  
 (b) Grant consent to the Change in Control resulting from the IPO, and agree that such Change in Control shall not constitute an Event of Default under any of the provisions of the Loan Agreement; provided that as of the closing date of the
IPO: 
  
 (i) the Reincorporation Conditions shall have been
satisfied; 
  
 (ii) NCI shall have received not less than
$30,000,000 of Net Cash Proceeds from the Equity Issuance in connection therewith; 
  
 (iii) all of such Net Cash Proceeds shall have been applied to the repayment of the Loans in accordance with the terms of the Loan Agreement, as amended by this Amendment; and 
  
 (iv) after giving effect to such Change in Control, Narang shall have Voting
Control of NCI Delaware, free and clear of all Liens. 
  
 4.
Conditions Precedent. This Amendment shall become effective upon (i) the execution of a counterpart hereof by each of the parties hereto and delivery thereof to the Agent and (ii) satisfaction of each of the following conditions precedent to
the effectiveness of this Amendment and the consents provided in Section 3 of this Amendment (the date such conditions are first satisfied being the “Effective Date”): 
  
 (a) The Time Notes shall have been appropriately completed, duly executed by the Borrowers and delivered to the
Administrative Agent. 
  
 (b) The Narang Security Agreement shall
have been appropriately completed, duly executed by Narang and delivered to the Administrative Agent, and shall create a first, perfected priority security interest in a deposit account maintained by Narang with the Administrative Agent, in the
amount of Time Loans, or by United States Treasury Bills, maturing not later than six months after the Time Loan Date, and with an aggregate purchase price equal to the amount of the Time Loans. 
  
 (c) The Borrowers shall have delivered to the Administrative Agent (1)
certified copies of evidence of all corporate actions taken by the Borrowers to authorize the execution and delivery of this Amendment and the Time Notes, (2) certified copies of the articles 
  

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 or certificate of incorporation and bylaws of the Borrowers, (3) a certificate of incumbency for the officers of the
Borrowers executing this Amendment and the Time Notes, (4) a good standing certificate, dated not more than 30 days prior to the date of this Amendment, from the appropriate state official of any state in which the Borrowers are incorporated or
qualified to do business, and (5) such additional supporting documents as the Administrative Agent or counsel for the Administrative Agent reasonably may request. 
  
 (d) The Administrative Agent shall have received a written opinion of counsel to the Borrowers, in form and substance
satisfactory to the Administrative Agent. 
  
 (e) No Default or
Event of Default shall have occurred and be continuing as of the Effective Date; 
  
 (f) All representations and warranties contained in the Loan Documents shall be true and correct in all material respects as if made on the Effective Date (except to the extent any such representation or warranty is
expressly stated to have been made as of a specific date, in which case such representation or warranty shall be true and correct as of such date); and 
  
 (g) All documents delivered pursuant to this Amendment must be in form and substance satisfactory to the Administrative Agent and its counsel, and all
legal matters incident to this Amendment must be satisfactory to the Administrative Agent’s counsel. 
  
 5. Amendment Only; No Novation; Modification of Loan Documents; Confirmation of Lien. Each of the Borrowers acknowledges and agrees that this
Amendment only amends the terms of the Loan Agreement and the other Loan Documents and does not constitute a novation, and each of the Borrowers ratifies and confirms the terms and provisions of, and its obligations under, the Loan Agreement and the
other Loan Documents in all respects. Each of the Borrowers acknowledges and agrees that each reference in the Loan Documents to any particular Loan Document shall be deemed to be a reference to such Loan Document as amended by this Amendment. To
the extent of a conflict between the terms of any Loan Document and the terms of this Amendment, the terms of this Amendment shall control. The Borrowers acknowledge and agree that the prior grant of a security interest in the Collateral continues
to secure the Obligations, is in full force and effect, and is ratified and confirmed by the Borrowers in all respects. 
  
 6. No Further Amendments. Nothing in this Amendment or any prior amendment to the Loan Documents shall require the Administrative Agent or any
Lender to grant any further amendments to the terms of the Loan Documents. Each of the Borrowers acknowledges and agrees that there are no defenses, counterclaims or setoffs against any of their respective obligations under the Loan Documents.

  
 7. Representations and Warranties. Each Borrower
represents and warrants that this Amendment has been duly authorized, executed and delivered by it in accordance with 
  

 14 

 resolutions adopted by its board of directors. All other representations and warranties made by the Borrowers in the Loan
Documents are incorporated by reference in this Amendment and are deemed to have been repeated as of the date of this Amendment with the same force and effect as if set forth in this Amendment, except to the extent any such representation or
warranty is expressly stated to have been made as of a specific date, in which case such representation or warranty shall be true and correct as of such date. 
  

8. Fees and Expenses. In consideration of the amendments contained herein, the Borrowers jointly and severally agree to pay to the
Administrative Agent on the date of execution hereof a non-refundable amendment fee of $20,000. The Borrowers jointly and severally agree to pay all reasonable, out-of-pocket costs and expenses of the Administrative Agent., including the fees,
charges and disbursements of counsel for the Administrative Agent in connection with the preparation and administration of this Amendment. 
  
 9. Severability. Any provision of this Amendment held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction,
be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity or unenforceability of a
particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 10. Governing Law. This Amendment shall be construed in accordance with and be governed by the laws (without giving effect to the conflict of law
principles thereof) of the Commonwealth of Virginia. 
  
 11.
Counterparts. This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the
same instrument. It shall not be necessary that the signature of, or on behalf of, each party, or that the signatures of the persons required to bind any party, appear on more than one counterpart. 
  
 [SIGNATURES ON FOLLOWING PAGES] 
  

 15 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be signed by their respective duly
authorized representatives all as of the day and year first above written. 
  

			
	NCI VIRGINIA:
	
	 NCI INFORMATION SYSTEMS,
 INCORPORATED, a Virginia corporation

		
	By:	 	 /s/ Chander K. Narang

	 	 	Chander K. Narang
	 	 	Chairman and Chief Executive Officer
	
	SES:
	
	 SCIENTIFIC AND ENGINEERING
 SOLUTIONS, INC., a Maryland corporation

		
	By:	 	 /s/ Chander K. Narang

	 	 	Chander K. Narang
	 	 	Chairman and Chief Executive Officer

  
 [SIGNATURES
CONTINUE ON FOLLOWING PAGES] 
  

 16 

			
	ADMINISTRATIVE AGENT:
	
	SUNTRUST BANK, a Georgia banking corporation, as Administrative Agent
		
	By:	 	 /s/ Linda L. Bergmann

	 	 	Linda L. Bergmann
	 	 	Vice President
	
	LENDERS:
	
	SUNTRUST BANK, a Georgia banking corporation
		
	By:	 	 /s/ Linda L. Bergmann

	 	 	Linda L. Bergmann
	 	 	Vice President

  

			
	Revolving Commitment:	  	$30,000,000
		
	Time Loan Commitment:	  	$15,000,000

  
  

 Exhibit A-1 
  
 Share Exchange Agreement 

 Exhibit A-2 
  
 Merger Agreement 

 Exhibit B 
  
 Certificate of Incorporation 

 Exhibit C 
  
 BylawsEXHIBIT 10.9

 Exhibit 10.9 
  
 W I N T H R O P 
  
 Financial Services 
  
 Lease Agreement Number NC102203 
  
 Lease Agreement 
  
 This Lease Agreement, dated October 22, 2003, by and between WINTHROP RESOURCES CORPORATION (the “Lessor”) with an office located
at 11100 Wayzata Boulevard, Suite 800, Minnetonka, Minnesota 55305 and NCI INFORMATION SYSTEMS, INC. (the “Lessee”) with an office located at 11730 Plaza America Drive, Reston, VA 20190. 
  
 Lessor hereby leases or grants to the Lessee the right to use and Lessee
hereby rents and accepts the right to use the equipment listed by serial number and related services, and software and related services on the Lease Schedule(s) attached hereto or incorporated herein by reference from time to time (collectively, the
equipment, software and services are the “Equipment”), subject to the terms and conditions hereof, as supplemented with respect to each item of Equipment by the terms and conditions set forth in the appropriate Lease Schedule. The term
“Lease Agreement” shall include this Lease Agreement and the various Lease Schedule(s) identifying each item of Equipment or the appropriate Lease Schedule(s) identifying one or more particular items of Equipment. 
  

	1.	Term 

  
 This Lease Agreement is effective from the date it is executed by both parties. The term of this Lease Agreement, as to all Equipment designated on any particular Lease Schedule, shall commence on the Installation
Date for all Equipment on such Lease Schedule and shall continue for an initial period ending that number of months from the Commencement Date as set forth in such Lease Schedule (the “Initial Term”) and shall continue from year to year
thereafter until terminated. The term of this Lease Agreement as to all Equipment designated on any particular Lease Schedule may be terminated without cause at the end of the Initial Term or any year thereafter by either party mailing written
notice of its termination to the other party not less than one-hundred twenty (120) days prior to such termination date. 
  

	2.	Commencement Date 

  
 The Installation Date for each item of Equipment shall be the day said item of Equipment is installed at the Location of Installation, ready for use, and
accepted in writing by the Lessee. The Commencement Date for any Lease Schedule is the first of the month following installation of all the Equipment on the Lease Schedule, unless the latest Installation Date for any Equipment on the Lease Schedule
falls on the first day of the month, in which case that is the Commencement Date. The Lessee agrees to complete, execute and deliver a Certificate of Acceptance to Lessor upon installation of the Equipment. 
  

	3.	Lease Charge 

  
 The lease charges for the Equipment leased pursuant to this Lease Agreement shall be the aggregate “Monthly Lease Charge(s)” as set forth on
each and every Lease Schedule executed pursuant hereto (the aggregate “Monthly Lease Charge(s)” are the “Lease Charges”). Lessee agrees to pay to Lessor the Lease Charges in accordance with the Lease Schedule(s), and the payments
shall be made at Lessor’s address indicated thereon. 

  

 1 

 
The Lease Charges shall be paid by Lessee monthly in advance with the first full month’s payment due on the Commencement Date. The Lease Charge for the
period from the Installation Date to the Commencement Date (the “Installation Period”) shall be an amount equal to the “Monthly Lease Charge” divided by thirty (30) and multiplied by the number of days from and including the
Installation Date to the Commencement Date and such amount shall be due and payable upon receipt of an invoice from Lessor. Charges for taxes made in accordance with Section 4 and charges made under any other provision of this Lease Agreement and
payable by Lessee shall be paid to Lessor at Lessor’s address specified on the Lease Schedule(s) on the date specified in invoices delivered to Lessee. If payment, as specified above, is not received by Lessor on the due date, Lessee agrees to
and shall pay, to the extent permitted by law, on demand, as a late charge, an amount equal to one and one-half percent (11⁄2 %), or the maximum percentage allowed by law if less, of the amount past due (“Late Charges”). Late Charges
will accrue until billed by Lessor. Late Charges shall be charged and added to any past due amount(s) on the date such payment is due and every thirty (30) days thereafter until all past due amounts are paid in full to Lessor. 
  

	4.	Taxes 

  
 In addition to the Lease Charges set forth in Section 3, the Lessee shall reimburse Lessor for all license or registration fees, assessments, sales and
use taxes, rental taxes, gross receipts taxes, personal property taxes and other taxes now or hereafter imposed by any government, agency, province or otherwise upon the Equipment, the Lease Charges or upon the ownership, leasing, renting, purchase,
possession or use of the Equipment, whether the same be assessed to Lessor or Lessee (the “Taxes”). Lessor shall file all property tax returns and pay all Taxes when due. Lessee, upon notice to Lessor, may, in Lessee’s own name,
contest or protest any Taxes, and Lessor shall honor any such notice except when in Lessor’s sole opinion such contest is futile or will cause a levy or lien to arise on the Equipment or cloud Lessor’s title thereto. Lessee shall, in
addition, be responsible to Lessor for the payment and discharge of any penalties or interest as a result of Lessee’s actions or inactions. Nothing herein shall be construed to require Lessee to be responsible for any federal or state taxes or
payments in lieu thereof, imposed upon or measured by the net income of Lessor, or state franchise taxes of Lessor, or except as provided hereinabove, any penalties or interest resulting from Lessor’s failure to timely remit such tax payments.

  

	5.	Delivery and Freight Costs 

  
 Lessee shall accept delivery of and install the Equipment before such time as the applicable vendor requires payment for such Equipment. 
  
 All transportation charges upon the Equipment for delivery to Lessee’s
designated Location of Installation are to be paid by Lessee. All rigging, drayage charges, structural alterations, rental of heavy equipment and/or other expense necessary to place the Equipment at the Location of Installation are to be promptly
paid by Lessee. 
  

	6.	Installation 

  
 Lessee agrees to pay for the actual installation of the Equipment at Lessee’s site. Lessee shall make available and agrees to pay for all costs
associated with providing a suitable place of installation and necessary electrical power, outlets and air conditioning required for operating the Equipment as defined in the Equipment manufacturer’s installation manual or instructions. All
supplies consumed or required by the Equipment shall be furnished and paid for by Lessee. 
  

 2 

	7.	Return to Lessor 

  
 On the day following the last day of the lease term associated with a Lease Schedule (the “Return Date”), Lessee shall cause and pay for the
Equipment on that Lease Schedule to be deinstalled, packed using the manufacturer’s standard packing materials and shipped to a location designated in writing by Lessor (the “Return Location”). If the Equipment on the applicable Lease
Schedule is not at the Return Location within ten (10) days of the Return Date, or Lessee fails to deinstall and ship the Equipment on the Return Date, then any written notice of termination delivered by Lessee shall become void, and the Lease
Schedule shall continue in accordance with this Lease Agreement. Irrespective of any other provision hereof, Lessee will bear the risk of damage from fire, the elements or otherwise until delivery of the Equipment to the Return Location. At such
time as the Equipment is delivered to the Lessor at the Return Location, the Equipment will be at the risk of Lessor. 
  

	8.	Maintenance 

  
 Lessee, at its sole expense, shall maintain the Equipment in good working order and condition. Lessee shall enter into, pay for and maintain in force
during the entire term of any Lease Schedule, a maintenance agreement with the manufacturer of the Equipment providing for continuous uninterrupted maintenance of the Equipment (the “Maintenance Agreement”). Lessee will cause the
manufacturer to keep the Equipment in good working order in accordance with the provisions of the Maintenance Agreement and make all necessary adjustments and repairs to the Equipment. The manufacturer is hereby authorized to accept the directions
of Lessee with respect thereto. Lessee agrees to allow the manufacturer full and free access to the Equipment. All maintenance and service charges, whether under the Maintenance Agreement or otherwise, and all expenses, if any, of the
manufacturer’s customer engineers incurred in connection with maintenance and repair services, shall be promptly paid by Lessee. Lessee warrants that all of the Equipment shall be in good working order operating according to manufacturer’s
specification and eligible for the manufacturer’s standard maintenance agreement upon delivery to and inspection and testing by the Lessor. If the Equipment is not free of physical defect or damage, operating according to manufacturer’s
specification, in good working order and/or eligible for the manufacturer’s standard maintenance agreement, then Lessee agrees to reimburse Lessor for all costs, losses, expenses and fees associated with such equipment and the repair or
replacement thereof. 
  

	9.	Location, Ownership and Use 

  
 The Equipment shall, at all times, be the sole and exclusive property of Lessor. Lessee shall have no right or property interest therein, except for the
right to use the Equipment in the normal operation of its business at the Location of Installation, or as otherwise provided herein. The Equipment is and shall remain personal property even if installed in or attached to real property. Lessor shall
be permitted to display notice of its ownership on the Equipment by means of a suitable stencil, label or plaque affixed thereto. 
  
 Lessee shall keep the Equipment at all times free and clear from all claims, levies, encumbrances and process. Lessee shall give Lessor immediate notice
of any such attachment or other judicial process affecting any of the Equipment. Without Lessor’s written permission, Lessee shall not attempt to or actually: (i) pledge, lend, create a security interest in, sublet, exchange, trade, assign,
swap, use for an allowance or credit or otherwise; (ii) allow another to use; (iii) part with possession; (iv) dispose of; or (v) remove from the Location of Installation, any item of Equipment. If any item of Equipment is exchanged, assigned,
traded, swapped, used for an allowance or credit or otherwise to acquire new or different equipment (the “New Equipment”) without Lessor’s prior written 

  

 3 

 
fconsent, then all of the New Equipment shall become Equipment owned by Lessor subject to this Lease Agreement and the applicable Lease Schedule. 

 
 Any feature(s) installed on the Equipment at the time of delivery which
are not specified on the Lease Schedule(s) are and shall remain the sole property of the Lessor. 
  
 Lessee shall cause the Equipment to be operated in accordance with the applicable vendor’s or manufacturer’s manual of instructions by competent
and qualified personnel. 
  

	10.	Financing Statement 

  
 Lessor is hereby authorized by Lessee to cause this Lease Agreement or other instruments, including Uniform Commercial Code Financing Statements, to be
filed or recorded for the purposes of showing Lessor’s interest in the Equipment. Lessee agrees to execute any such instruments as Lessor may request from time to time. 
  

	11.	Alterations and Attachments 

  
 Upon prior written notice to Lessor, Lessee may, at its own expense, make minor alterations in or add attachments to the Equipment, provided such
alterations and attachments shall not interfere with the normal operation of the Equipment and do not otherwise involve the pledge, assignment, exchange, trade or substitution of the Equipment or any component or part thereof. All such alterations
and attachments to the Equipment shall become part of the Equipment leased to Lessee and owned by Lessor. If, in Lessor’s sole determination, the alteration or attachment reduces the value of the Equipment or interferes with the normal and
satisfactory operation or maintenance of any of the Equipment, or creates a safety hazard, Lessee shall, upon notice from Lessor to that effect, promptly remove the alteration or attachment at Lessee’s expense and restore the Equipment to the
condition the Equipment was in just prior to the alteration or attachment. 
  

	12.	Loss and Damage 

  
 Lessee shall assume and bear the risk of loss, theft and damage (including any governmental requisition, condemnation or confiscation) to the Equipment
and all component parts thereof from any and every cause whatsoever, whether or not covered by insurance. No loss or damage to the Equipment or any component part thereof shall impair any obligation of Lessee under this Lease Agreement, which shall
continue in full force and effect except as hereinafter expressly provided. Lessee shall repair or cause to be repaired all damage to the Equipment. In the event that all or part of the Equipment shall, as a result of any cause whatsoever, become
lost, stolen, destroyed or otherwise rendered irreparably unusable or damaged (collectively, the “Loss”) then Lessee shall, within ten (10) days after the Loss, fully inform Lessor in writing of such a Loss and shall pay to Lessor the
following amounts: (i) the Monthly Lease Charges (and other amounts) due and owing under this Lease Agreement at the time of the Loss, plus (ii) one-hundred twelve (112%) percent of the original cost of the Equipment subject to the Loss (or Event of
Default, as defined hereinafter) amortized by the Monthly Lease Charges received by Lessor during the Initial Term using an amortization rate of 350 basis points over the interest rate of the three (3) year United States Treasury Note as reported by
The Wall Street Journal on the Commencement Date (collectively, the sum of (i) plus (ii) shall be the “Casualty Loss Value”). Upon receipt by Lessor of the Casualty Loss Value: (i) the applicable Equipment shall be removed from the Lease
Schedule; and (ii) Lessee’s obligation to pay Lease Charges associated with the applicable Equipment shall cease. Lessor may request, and Lessee shall complete, an affidavit(s) which swears out the facts supporting the Loss of any item of
Equipment. 

  

 4 

	13.	Insurance 

  
 Until the Equipment is returned to Lessor or as otherwise herein provided, whether or not this Lease Agreement has terminated as to the Equipment, Lessee,
at its expense, shall maintain: (i) property and casualty insurance insuring the Equipment for its Casualty Loss Value naming Lessor or its assigns as sole loss payee; and (ii) comprehensive public liability and third-party property insurance naming
Lessor and its assigns as additional loss payees. The insurance shall cover the interest of both the Lessor and Lessee in the Equipment, or as the case may be, shall protect both the Lessor and Lessee in respect to all risks arising out of the
condition, delivery, installation, maintenance, use or operation of the Equipment. All such insurance shall provide for thirty (30) days prior written notice to Lessor of cancellation, restriction, or reduction of coverage. Lessee hereby irrevocably
appoints Lessor as Lessee’s attorney-in-fact to make claim for, receive payment of and execute and endorse all documents, checks or drafts for loss or damage or return premium under any insurance policy issued on the Equipment. Prior to
installation of the Equipment, all policies or certificates of insurance shall be delivered to Lessor by Lessee. Lessee agrees to keep the Equipment insured with an insurance company which is at least “A” rated by A.M. Best. The proceeds
of any loss or damage insurance shall be payable to Lessor, but Lessor shall remit all such insurance proceeds to Lessee at such time as Lessee either (i) provides Lessor satisfactory proof that the damage has been repaired and the Equipment has
been restored to good working order and condition or (ii) pays to Lessor the Casualty Loss Value. It is understood and agreed that any payments made by Lessee or its insurance carrier for loss or damage of any kind whatsoever to the Equipment are
not made as accelerated rental payments or adjustments of rental, but are made solely as indemnity to Lessor for loss or damage of its Equipment. 
  

	14.	Enforcement of Warranties 

  
 Lessee, in its own name, shall, so long as this Lease Agreement is in force, enforce any manufacturer’s Equipment warranty. 
  

	15.	Warranties, Disclaimers and Indemnity 

  
 Lessor warrants that at the time the Equipment is delivered to Lessee, Lessor will have full right, power and authority to lease the Equipment to Lessee.
EXCEPT FOR THE WARRANTY IN THE SENTENCE DIRECTLY PRECEDING THIS ONE, THE LESSOR DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING THE WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. LESSEE ACKNOWLEDGES THAT IT IS NOT
RELYING ON LESSOR’S SKILL OR JUDGMENT TO SELECT OR FURNISH GOODS SUITABLE FOR ANY PARTICULAR PURPOSE AND THAT THERE ARE NO WARRANTIES CONTAINED IN THIS LEASE AGREEMENT. LESSEE REPRESENTS AND WARRANTS THAT IT IS NOT A FOREIGN “FINANCIAL
INSTITUTION” OR ACTING ON BEHALF OF A FOREIGN “FINANCIAL INSTITUTION” AS THAT TERM IS DEFINED IN THE BANK SECRECY ACT, 31 U.S.C. 5318, AS AMENDED. LESSEE ACKNOWLEDGES THAT LESSOR, IN COMPLIANCE WITH SECTION 326 OF THE USA PATRIOT ACT,
WILL BE VERIFYING CERTAIN INFORMATION ABOUT LESSEE. LESSEE FURTHER ACKNOWLEDGES AND AGREES THAT LESSOR AND ITS REPRESENTATIVES AND EMPLOYEES HAVE NOT MADE ANY STATEMENT, REPRESENTATION OR WARRANTY RELATIVE TO THE ACCOUNTING OR TAX ENTRIES,
TREATMENT, BENEFIT, 

  

 5 

 
fUSE OR CLASSIFICATION OF THE LEASE AGREEMENT OR ASSOCIATED LEASE SCHEDULES. LESSEE ACKNOWLEDGES THAT IT AND/OR ITS INDEPENDENT ACCOUNTANTS ARE SOLELY
RESPONSIBLE FOR (i) ANY AND ALL OF LESSEE’S ACCOUNTING AND TAX ENTRIES ASSOCIATED WITH THE LEASE AGREEMENT AND/OR THE LEASE SCHEDULES AND (ii) THE ACCOUNTING AND TAX TREATMENT, BENEFITS, USES AND CLASSIFICATION OF THE LEASE AGREEMENT OR ANY
LEASE SCHEDULE. LESSOR SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE RELATIONSHIP BETWEEN THE LESSOR AND LESSEE, THIS LEASE
AGREEMENT OR THE PERFORMANCE, POSSESSION, LEASE OR USE OF THE EQUIPMENT. THIS LEASE AGREEMENT IS A “FINANCE LEASE” AS THAT TERM IS DEFINED AND USED IN ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE. NO RIGHTS OR REMEDIES REFERRED TO IN ARTICLE
2A OF THE UNIFORM COMMERCIAL CODE WILL BE CONFERRED ON LESSEE. 
  
 Lessee agrees that Lessor shall not be liable to Lessee for, and Lessee shall indemnify, defend and hold Lessor harmless with respect to, any claim from a third party for any liability, claim, loss, damage or expense of any kind or nature,
whether based upon a theory of strict liability or otherwise, caused, directly or indirectly, by: (i) the inadequacy of any item of Equipment, including software, for any purpose; (ii) any deficiency or any latent or other defects in any Equipment,
including software, whether or not detectable by Lessee; (iii) the selection, manufacture, rejection, ownership, lease, possession, maintenance, operation, use or performance of any item of Equipment, including software; (iv) any interruption or
loss of service, use or performance of any item of Equipment, including software; (v) patent, trademark or copyright infringement; or (vi) any loss of business or other special, incidental or consequential damages whether or not resulting from any
of the foregoing. Lessee’s duty to defend and indemnify Lessor shall survive the expiration, termination, cancellation or assignment of this Lease Agreement or a Lease Schedule and shall be binding upon Lessee’s successors and permitted
assigns. 
  

	16.	Event of Default 

  
 The occurrence of any of the following events shall constitute an Event of Default under this Lease Agreement and/or any Lease Schedule: 
  

	 	(1)	the nonpayment by Lessee of any Lease Charges when due, or the nonpayment by Lessee of any other sum required hereunder to be paid by Lessee which non-payment continues for a period
of ten (10) days from the date when due; 

  

	 	(2)	the failure of Lessee to perform any other term, covenant or condition of this Lease Agreement, any Lease Schedule or any other document, agreement or instrument executed pursuant
hereto or in connection herewith, which is not cured within ten (10) days after written notice thereof from Lessor; 

  

	 	(3)	Lessee attempts to or does remove, transfer, sell, swap, assign, sublease, trade, exchange, encumber, receive an allowance or credit for, or part with possession of, any item of
Equipment; 

  

	 	(4)	Lessee ceases doing business as a going concern, is insolvent, makes an assignment for the benefit of creditors, fails to pay its debts as they become due, offers a settlement to
creditors or calls a meeting of creditors for any such purpose, files a voluntary petition in bankruptcy, is subject to an involuntary petition in bankruptcy, is adjudicated bankrupt or insolvent, files or has filed against it a petition seeking any
reorganization, arrangement or composition, under any present or future statute, law or regulation; 

  

 6 

	 	(5)	any of Lessee’s representations or warranties made herein or in any oral or written statement or certificate at any time given in writing pursuant hereto or in connection
herewith shall be false or misleading in any material respect; 

  

	 	(6)	Lessee defaults under or otherwise has accelerated any material obligation, credit agreement, loan agreement, conditional sales contract, lease, indenture or debenture; or Lessee
defaults under any other agreement now existing or hereafter made with Lessor; or 

  

	 	(7)	the breach or repudiation by any party thereto of any guaranty, subordination agreement or other agreement running in favor of Lessor obtained in connection with this Lease
Agreement. 

  

	17.	Remedies 

  
 Should any Event of Default occur, Lessor may, in order to protect its interests and reasonably expected profits, with or without notice or demand upon
Lessee, retain any and all security deposits and pursue and enforce, alternatively, successively and/or concurrently, any one or more of the following remedies: 
  

	 	(1)	recover from Lessee all accrued and unpaid Lease Charges and other amounts due and owing on the date of the default; 

  

	 	(2)	recover from Lessee from time to time all Lease Charges and other amounts as and when becoming due hereunder; 

  

	 	(3)	accelerate, cause to become immediately due and recover the present value of all Lease Charges and other amounts due and/or likely to become due hereunder from the date of the
default to the end of the lease term using a discount rate of four (4%) percent; 

  

	 	(4)	cause to become immediately due and payable and recover from Lessee the Casualty Loss Value of the Equipment which Lessee agrees is not a penalty but rather the fair measure of
Lessor’s loss in or damage to Lessor’s interests in the Equipment and Lease caused by Lessee’s default hereunder; 

  

	 	(5)	terminate any or all of the Lessee’s rights, but not its obligations, associated with the lease of Equipment under this Lease Agreement; 

  

	 	(6)	retake (by Lessor, independent contractor, or by requiring Lessee to assemble and surrender the Equipment in accordance with the provisions of Section 7 hereinabove) possession of
the Equipment without terminating the Lease Schedule or the Lease Agreement free from claims by Lessee which claims are hereby expressly waived by Lessee; 

  

	 	(7)	require Lessee to deliver the Equipment to a location designated by Lessor; 

  

	 	(8)	proceed by court action to enforce performance by Lessee of its obligations associated with any Lease Schedule and/or this Lease Agreement; and/or 

  

	 	(9)	pursue any other remedy Lessor may otherwise have, at law, equity or under any statute, and recover damages and expenses (including attorneys’ fees) incurred by Lessor by
reason of the Event of Default. 

  
 Upon
repossession of the Equipment, Lessor shall have the right to lease, sell or otherwise dispose of such Equipment in a commercially reasonable manner, with or without notice, at a public or private sale. Lessor’s pursuit and enforcement of any
one or more remedies shall not be deemed an election or waiver by Lessor of any other remedy. Lessor shall not be obligated to sell or re- 

  

 7 

 
lease the Equipment. Any sale or re-lease may be held at such place or places as are selected by Lessor, with or without having the Equipment present. Any
such sale or re-lease, may be at wholesale or retail, in bulk or in parcels. Time and exactitude of each of the terms and conditions of this Lease Agreement are hereby declared to be of the essence. Lessor may accept past due payments in any amount
without modifying the terms of this Lease Agreement and without waiving any rights of Lessor hereunder. 
  

	18.	Costs and Attorneys’ Fees 

  
 In the event of any default, claim, proceeding, including a bankruptcy proceeding, arbitration, mediation, counter-claim, action (whether legal or
equitable), appeal or otherwise, whether initiated by Lessor or Lessee (or a debtor-in-possession or bankruptcy trustee), which arises out of, under, or is related in any way to this Lease Agreement, any Lease Schedule, or any other document,
agreement or instrument executed pursuant hereto or in connection herewith, or any governmental examination or investigation of Lessee, which requires Lessor’s participation (individually and collectively, the “Claim”), Lessee, in
addition to all other sums which Lessee may be called upon to pay under the provisions of this Lease Agreement, shall pay to Lessor, on demand, all costs, expenses and fees paid or payable in connection with the Claim, including, but not limited to,
attorneys’ fees and out-of-pocket costs, including travel and related expenses incurred by Lessor or its attorneys. 
  

	19.	Lessor’s Performance Option 

  
 Should Lessee fail to make any payment or to do any act as provided by this Lease Agreement, then Lessor shall have the right (but not the obligation),
without notice to Lessee of its intention to do so and without releasing Lessee from any obligation hereunder to make or to do the same, to make advances to preserve the Equipment or Lessor’s title thereto, and to pay, purchase, contest or
compromise any insurance premium, encumbrance, charge, tax, lien or other sum which in the judgment of Lessor appears to affect the Equipment, and in exercising any such rights, Lessor may incur any liability and expend whatever amounts in its
absolute discretion it may deem necessary therefor. All sums so incurred or expended by Lessor shall be due and payable by Lessee within ten (10) days of notice thereof. 
  

	20.	Quiet Possession and Inspection 

  
 Lessor hereby covenants with Lessee that Lessee shall quietly possess the Equipment subject to and in accordance with the provisions hereof so long as
Lessee is not in default hereunder; provided, however, that Lessor or its designated agent may, at any and all reasonable times during business hours, enter Lessee’s premises for the purposes of inspecting the Equipment and the manner in which
it is being used. 
  

	21.	Assignments 

  
 This Lease Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Lessee, however,
shall not assign this Lease Agreement or sublet any of the Equipment without first obtaining the prior written consent of Lessor and its assigns, if any. Lessee acknowledges that the terms and conditions of this Lease Agreement have been fixed in
anticipation of the possible assignment of Lessor’s rights under this Lease Agreement and in and to the Equipment as collateral security to a third party (“Assignee” herein) which will rely upon and be entitled to the benefit of the
provisions of this Lease Agreement. Lessee agrees with Lessor and such Assignee to recognize in writing any such assignment within fifteen (15) days after receipt of written notice thereof and to pay thereafter all sums due to Lessor hereunder
directly to such Assignee if directed by 

  

 8 

 
Lessor, notwithstanding any defense, set-off or counterclaim whatsoever (whether arising from a breach of this Lease Agreement or not) that Lessee may from
time to time have against Lessor. Upon such assignment, the Lessor shall remain obligated to perform any obligations it may have under this Lease Agreement and the Assignee shall (unless otherwise expressly agreed to in writing by the Assignee) have
no obligation to perform such obligations. Any such assignment shall be subject to Lessee’s rights to use and possess the Equipment so long as Lessee is not in default hereunder. 
  

	22.	Survival of Obligations 

  
 All covenants, agreements, representations, and warranties contained in this Lease Agreement, any Lease Schedule, or in any document attached thereto,
shall be for the benefit of Lessor and Lessee and their successors, any assignee or secured party. Further, all covenants, agreements, representations, and warranties contained in this Lease Agreement, any Lease Schedule, or in any document attached
thereto, shall survive the execution and delivery of this Lease Agreement and the expiration or other termination of this Lease Agreement. 
  

	23.	Corporate Authority 

  
 The parties hereto covenant and warrant that the persons executing this Lease Agreement and each Lease Schedule on their behalf have been duly authorized
to do so, and this Lease Agreement and any Lease Schedule constitute a valid and binding obligation of the parties hereto. The Lessee will, if requested by Lessor, provide to Lessor, Certificates of Authority naming the officers of the Lessee who
have the authority to execute this Lease Agreement and any Lease Schedules attached thereto. 
  

	24.	Landlords’ and Mortgagees’ Waiver 

  
 If requested, Lessee shall furnish waivers, in form and substance satisfactory to Lessor, from all landlords and mortgagees of any premises upon which any
Equipment is located. 
  

	25.	Miscellaneous 

  
 This Lease Agreement, the Lease Schedule(s), attached riders and any documents or instruments issued or executed pursuant hereto will have been made,
executed and delivered in, and shall be governed by the internal laws (as opposed to conflicts of law provisions) and decisions of, the State of Minnesota. Lessee and Lessor consent to the exclusive jurisdiction of any local, state or federal court
located within Minnesota. Venue must be in Minnesota and Lessee hereby waives local venue and any objection relating to Minnesota being an improper venue to conduct any proceeding relating to this Lease Agreement. At Lessor’s sole election and
determination, Lessor may select an alternative forum, including arbitration or mediation, to adjudicate any dispute arising out of this Lease Agreement. 
  
 This Lease Agreement was jointly drafted by the parties, and the parties hereby agree that neither should be favored in the construction, interpretation
or application of any provision or any ambiguity. There are no unwritten or oral agreements between the parties. This Lease Agreement and associated Lease Schedule(s) constitute the entire understanding and agreement between Lessor and Lessee with
respect to the lease of the Equipment superseding all prior agreements, understandings, negotiations, discussions, proposals, representations, promises, commitments and offers between the parties, whether oral or written. No provision of this Lease
Agreement or any Lease Schedule shall be deemed waived, amended, discharged or modified orally or by custom, usage or course of conduct unless such waiver, amendment or modification is in writing and signed by an officer of each of the parties
hereto. If 

  

 9 

 
any one or more of the provisions of this Lease Agreement or any Lease Schedule is for any reason held invalid, illegal or unenforceable, the remaining
provisions of this Lease Agreement and any such Lease Schedule will be unimpaired, and the invalid, illegal or unenforceable provisions shall be replaced by a mutually acceptable valid, legal and enforceable provision that is closest to the original
intention of the parties. Lessee agrees that neither the manufacturer, nor the supplier, nor any of their salespersons, employees or agents are agents of Lessor. 
  
 Any notice provided for herein shall be in writing and sent by certified or registered mail to the parties at the addresses
stated on page 1 of this Lease Agreement. 
  
 The Monthly Lease
Charge is intended to be fixed from the Commencement Date to the end of the term. The three year treasury rate is an integral part of the lease rate. The Lessee and Lessor agree that the lease rate shall also be fixed during the Installation Period
but should the three year treasury note increase during such Installation Period, the lease rate will be adjusted on the Commencement Date. 
  
 Lessor is entitled to review a complete set of Lessee’s financial statements, including a statement of cash flows, balance sheet and income
statement, and any other financial information that Lessor may request. If during the Installation Period the Lessee’s financial condition changes in any material respect (as determined by the Lessor in its sole discretion), then Lessor shall
be entitled to stop purchasing equipment to be leased to Lessee and commence the applicable lease schedule(s). 
  
 This Lease Agreement shall not become effective until delivered to Lessor at its offices at Minnetonka, Minnesota and executed by Lessor. If this Lease
Agreement shall be executed by Lessor prior to being executed by Lessee, it shall become void at Lessor’s option five (5) days after the date of Lessor’s execution hereof, unless Lessor shall have received by such date a copy hereof
executed by a duly authorized representative of Lessee. 
  
 This
Lease Agreement is made subject to the terms and conditions included herein and Lessee’s acceptance is effective only to the extent that such terms and conditions are consistent with the terms and conditions herein. Any acceptance which
contains terms and conditions which are in addition to or inconsistent with the terms and conditions herein will be a counter-offer and will not be binding unless agreed to in writing by Lessor. 
  
 The terms used in this Lease Agreement, unless otherwise defined, shall have
the meanings ascribed to them in the Lease Schedule(s). 
  

	26.	REPOSSESSION 

  
 LESSEE ACKNOWLEDGES THAT, PURSUANT TO SECTION 17 HEREOF, LESSOR HAS BEEN GIVEN THE RIGHT TO REPOSSESS THE EQUIPMENT SHOULD LESSEE BECOME IN DEFAULT OF ITS
OBLIGATIONS HEREUNDER. LESSEE HEREBY WAIVES THE RIGHT, IF ANY, TO REQUIRE LESSOR TO GIVE LESSEE NOTICE AND A JUDICIAL HEARING PRIOR TO EXERCISING SUCH RIGHT OF REPOSSESSION. 
  

	27.	Net Lease 

  
 This Lease Agreement is a net lease and Lessee’s obligations to pay all Lease Charges and other amounts payable hereunder shall be absolute and
unconditional and, except as expressly provided herein, shall not be subject to any: (i) delay, abatement, reduction, defense, counterclaim, set-off, or recoupment; (ii) discontinuance or termination of any license; (iii) Equipment failure, defect
or deficiency; (iv) damage to or destruction of the Equipment; or (v) dissatisfaction with the Equipment or otherwise, 

  

 10 

 
including any present or future claim against Lessor or the manufacturer, supplier, reseller or vendor of the Equipment. To the extent that the Equipment
includes intangible (or intellectual) property, Lessee understands and agrees that: (i) Lessor is not a party to and does not have any responsibility under any software license and/or other agreement with respect to any software; and (ii) Lessee
will be responsible to pay all of the Lease Charges and perform all its other obligations under this Lease Agreement despite any defect, deficiency, failure, termination, dissatisfaction, damage or destruction of any software or software license.
Except as expressly provided herein, this Lease Agreement shall not terminate for any reason, including any defect in the Equipment or Lessor’s title thereto or any destruction or loss of use of any item of Equipment. 
  

	28.	Headings 

  
 Section headings herein are used for convenience only and shall not otherwise affect the provisions of this Lease Agreement. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be signed by their
respective duly authorized representative. 
  

									
	 Every Term is Agreed to and Accepted:
	 	 	 	 Every Term is Agreed to and Accepted:

			
	 WINTHROP RESOURCES CORPORATION
	 	 	 	 NCI INFORMATION SYSTEMS, INC.

					
	By:	 	 /s/ Richard J. Pieper
	 	 	 	By:	 	 /s/ Judith L. Bjornaas

					
	 Print Name:
	 	 Richard J. Pieper
	 	 	 	 Print Name:
	 	 Judith L. Bjornaas

					
	 Title:
	 	 Senior Vice President
	 	 	 	 Title:
	 	 Vice President of Finance

					
	 Date:
	 	 10/27/2003
	 	 	 	 Date:
	 	 10/24/2003

  

 11

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