Document:

aacs_ex42.htm

EXHIBIT 4.2

 

Board of Directors of

American Commerce Solutions, Inc.

Special Called Meeting

April 6, 2014

Chairman Maxwell convened a special meeting of the board of directors at 3 p.m. on the 6th of April 2014. Attending the meeting were Chmn. Maxwell and Daniel L. Hefner with Frank Puissegur attending telephonically.

Chairman Maxwell brought the following item for action:

It is the desire of the officers and Directors to cause the filing of an S-8 Registration Statement to register shares for the purpose of converting booked debt in the names of Robert Maxwell and Daniel Hefner to equity.

It is suggested that AACS allow conversion of debt to equity by the named above for debt accrued and booked at 85% of the closing price on April 5, 2014. The closing price was .003 which makes the conversion at $.00255. The amount to be converted is delineated below:

 

	Robert Maxwell, Sr.	$150,000
	Daniel L. Hefner	$150,000
	Robert Maxwell, Jr.	$ 10,000
	 	$310,000 / $.00255 = 121,568,627

 

This conversion will result in the issuance of 121,568,627 common shares .

Upon motion and unanimous vote of the Board, it is resolved that the recommendation delineated is accepted and approved to be implemented at the direction and timing of management.

There being no other business, Chmn. Maxwell adjourned the meeting at 3:30 p.m.

 

Respectfully submitted,

/s/ Daniel L. Hefner

Acting SecretaryKEYW 2014.3.31 10Q EX 10.1 JK Employment Agreement

Exhibit 10.1

 THIRD AMENDMENT TO EMPLOYMENT AGREEMENT
THIS THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (the “Third Amendment”), made as of this 20th day of March, 2014, is entered into by and between The KEYW Corporation, a Maryland corporation with its principal place of business at 7740 Milestone Parkway, Suite 400, Hanover, MD 21076 (the “Company”) and John E. Krobath (the “Employee”).  

WHEREAS, the Company and Employee entered into an Employment Agreement dated June 16, 2010, as amended on March 12, 2012 (the “First Amendment”) and June 29, 2012 (the “Second Amendment”) (collectively the “Employment Agreement”);

WHEREAS, Employee wishes to pursue professional opportunities outside of the Company; and

WHEREAS, Company and Employee mutually wish to amend and then terminate the Employment Agreement.

NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Third Amendment, the parties agree:

1.    Section 4.2 of the Employment Agreement is deleted in its entirety and replaced with the following:

4.2    Termination for Cause, at the Election of the Employee, at Death, or Upon Mutual Election.  
    
(a) In the event that Employee’s employment is terminated for Cause, at the election of the Employee, or upon Employee’s death, KEYW shall have no further obligations under this Agreement other than to pay to Employee salary and accrued vacation through the last day of Employee’s actual employment by the Company.  
    
(b) The Employment Agreement shall be mutually terminated with effect as of 11:59 p.m. on March 20, 2014 (“Agreement Termination Date”).  On March 21, 2014, Employee shall convert to an “at will”.  On April 26, 2014 Employee shall convert to a Part-Time-On-Call (“PTOC”) status until February 28, 2016.  KEYW will pay in lieu of severance (i) an amount equal to employee’s base salary (annualized $280,000) from March 21, 2014 through December 26, 2014 on the regular bi-weekly payroll cycle, the last payment of which is on January 2, 2015 and (ii) a lump sum payment of Three Hundred Thirty Thousand Dollars ($330,000) on January 16, 2015.  On or before May 25, 2014, KEYW shall pay Employee the balance of any accrued Personal Time Off.  Employee shall work on obtaining a buyer for the systems engineering and technical assistance business assets known as “Project BullsEye” (the “Transaction”).  If the Transaction closes on or before July 1, 2014, KEYW shall pay Employee one percent (1%) of the gross sales price (including all earn-outs and contingencies as if achieved) of assets sold under the Transaction, such payment to be paid within thirty (30) days after the closing date of the Transaction.  Company shall also reimburse Employee for healthcare premiums through February 28, 2016 for family coverage as currently enrolled on March 20, 2014.  Notwithstanding the foregoing, the Company shall not be required to make payments under this Section 4.2 if the Employee has materially breached and failed to cure after written notice thereof any of the provisions of Sections 5 or 6, inclusive of all subsections, except subsections 5.1(a) and 5.3.  Further, subject to any overriding laws, the Company shall not be required to reimburse healthcare premiums if Employee is actually covered or becomes covered by an equivalent benefit (at the same or lesser cost to Employee, if any) from another third party source.  Any such benefit made available to Employee shall be reported to the Company.  While Employee is in a PTOC status, Employee’s outstanding equity awards that would have vested before February 28, 2016 will continue to vest on their original vesting schedule, provided that the performance criteria with respect to Employee’s 2014 stock option awards made on February 7, 2014 will be removed and 50% of such options will vest on the first anniversary of the grant date, and 25% will vest on the second anniversary of the grant date.  In consideration of the payments and benefits to be provided under this Section 4.2(b), and as a precondition to Employee becoming entitled to such payments and benefits under this Agreement, Employee agrees to execute and deliver to the Company within twenty-one (21) days after the Agreement Termination Date a waiver and release agreement in the form attached hereto as Schedule A which form will be provided to Employee by Company within three (3) days of the Agreement Termination Date (the “Release”, attached hereto as Schedule A).  If Employee fails to execute and deliver the Release within twenty-one (21) days after the Agreement Termination Date, or if Employee revokes such Release as provided therein, the Company shall have no obligation to provide the payments or benefits described above.  In any case in which the Release (and the expiration of any revocation rights provided therein) could only become effective in a particular tax year of Employee, any payment(s) conditioned on execution of the Release shall be made within ten (10) days after the Release becomes effective and such revocation rights have lapsed.  In any case in which the Release (and the expiration of any revocation rights provided therein) could become effective in one of two (2) taxable years of 

Exhibit 10.1

Employee depending on when Employee executes and delivers the Release, any payment conditioned on execution of the Release shall be made within ten (10) days after the Release becomes effective and such revocation rights have lapsed, but not earlier than the first business day of the later of such tax years.

2.  Section 4.5 is deleted in its entirety and replaced with the following:  “The provisions of Section 2.3, Subsection 4.2, Section 5 (except as hereafter provided), Section 6, and Section 9 shall survive the termination of this Agreement.  The provisions of Subsections 5.1(a) and 5.3 shall not survive.”

3.  For purposes of Section 5.2, “termination of employment” shall mean the Agreement Termination Date.

4.  The Employee acknowledges that he has carefully read this Third Amendment and understands and agrees to this Third Amendment.

5.  Capitalized terms used in this Third Amendment shall have the meaning assigned to such terms in the Employment Agreement unless otherwise provided in this Third Amendment.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year set forth above.

	
			
	 
	THE KEYW CORPORATION:
	EMPLOYEE:

	 
	 
	 

	By:
	/s/ Leonard E. Moodispaw
	/s/ John E. Krobath

	Name:
	Leonard E. Moodispaw
	John E. Krobath

	Title:
	President and Chief Executive OfficerKEYW 2014.3.31 10Q EX 10.2 Second Debt Amendment

Exhibit 10.2

EXECUTION VERSION

AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 14, 2014 (this “Amendment”), among THE KEYW CORPORATION, a Maryland corporation (the “Borrower”), each of the undersigned guarantors (the “Guarantors”) the Lenders party hereto and ROYAL BANK OF CANADA, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders (such capitalized term and, unless otherwise specified, all other capitalized terms not otherwise defined herein shall have the meanings set forth in the Credit Agreement referred to below).  
WHEREAS, the Borrower, the Lenders party thereto and the Administrative Agent and the other parties named therein, are party to that certain Amended and Restated Credit Agreement, dated as of November 20, 2012 (as amended, amended and restated, supplemented or otherwise modified to (but not including) the date hereof, the “Credit Agreement”) pursuant to which the Lenders have made certain extensions of credit available to and on behalf of the Borrower; and
WHEREAS, the Borrower and the Required Lenders party hereto have agreed to amend the Credit Agreement, but only on the terms and conditions herein set forth.
NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
Section 1.Credit Agreement Amendments.  
Section 1.Amendments to Section 1.01 - Defined Terms.  The definition of “Applicable Rate” set forth in Section 1.01 of the Credit Agreement is hereby amended as follows:
(a)The pricing grid contained therein is hereby replaced with the following pricing grid:  
	
						
	Pricing
Tier
	Consolidated Total Leverage 
Ratio
	Eurodollar Rate Loans
	Base Rate
Loans
	Commitment
Fee

	1
	≤1.50:1.00
	2.00%
	1.00%
	0.250%

	2
	> 1.50:1.00 but < 2.25:1.00
	2.25%
	1.25%
	0.325%

	3
	> 2.25:1.00 but < 3.00:1.00
	2.50%
	1.50%
	0.400%

	4
	> 3.00:1.00 but < 3.75:1.00
	2.75%
	1.75%
	0.500%

	5
	> 3.75:1.00
	3.00%
	2.00%
	0.500%

	; and
	 
	 
	 
	 

(b)The reference to “Pricing Tier 4” in the proviso thereof is hereby replaced with a reference to “Pricing Tier 5”.

LEGAL_US_E # 108774695.5 

Exhibit 10.2

Section 2.Amendments to Section 8.12 - Financial Covenants.  Section 8.12 of the Credit Agreement is hereby amended and restated in its entirety as follows.
8.12    Financial Covenants.
(a)Consolidated Senior Leverage Ratio. Permit the Consolidated Senior Leverage Ratio as of the end of any fiscal quarter of the Parent during the applicable period set forth below to be greater than the ratio corresponding to such period as set forth below: 
	
		
	Period
	Maximum Consolidated Senior Leverage Ratio

	Closing Date through June 30, 2013 
	3.50:1.00

	July 1, 2013 through December 31, 2013
	3.25:1.00

	January 1, 2014 through March 31, 2014 
	4.00:1.00 

	April 1, 2014 through June 30, 2014
	3.75:1.00

	July 1, 2014 through September 30, 2014
	3.50:1.00

	Thereafter
	3.00:1.00

(b)Consolidated Total Leverage Ratio. Permit the Consolidated Total Leverage Ratio as of the end of any fiscal quarter of the Parent during the applicable period set forth below to be greater than the ratio corresponding to such period as set forth below: 
	
		
	Period
	Maximum Consolidated Total Leverage Ratio

	Closing Date through June 30, 2013 
	4.00:1.00

	July 1, 2013 through December 31, 2013
	3.75:1.00

	January 1, 2014 through June 30, 2014
	4.00:1.00

	July 1, 2014 through September 30, 2014
	3.75:1.00

	Thereafter
	3.50:1.00

(c)Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage Ratio as of the end of any fiscal quarter of the Parent during the applicable period set forth below to be less than the ratio corresponding to such period as set forth below:
	
		
	Period
	Minimum Fixed Charge Coverage Ratio

	Closing Date through December 31, 2013 
	1.50:1.00

	January 1, 2014 through March 31, 2014 
	1.10:1.00

	Thereafter
	1.25:1.00

Section 2.Representations and Warranties, No Default.  The Borrower represents and warrants to the Administrative Agent and the Lenders as of the Amendment No. 2 Effective Date (as defined below) that:  (a)  This Amendment (a) is within each Loan Party’s corporate or other organizational powers; (b) has been duly authorized by all necessary corporate or other organizational action; and (c) does not and will not (i) contravene the terms of any of such Person’s organizational documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject or (iii) violate in any material respect any 

LEGAL_US_E # 108774695.5 

Exhibit 10.2

Law to which such Person or its property is subject.  This Amendment has been duly executed and delivered by each of the Loan Parties and constitutes, a legal, valid and binding obligation of such Loan Party, enforceable against it in accordance with its terms.  This Amendment does not require any consent, approval, exemption or authorization of, registration or filing with, or any other action by, any Governmental Authority or any other Person. 
Section 3.Conditions to Effectiveness of Amendment.  This Amendment shall become effective on the date (the “Amendment No. 2 Effective Date”) on which each of the following conditions are satisfied or waived by each applicable party:
(a)    The Administrative Agent shall have received executed signature pages to this Amendment from the Required Lenders, the Borrower and each other Loan Party;
(b)    The representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects on and as of Amendment No. 2 Effective Date (as defined below) with the same effect as though such representations and warranties had been made on and as of the Amendment No. 2 Effective Date, provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date;
(c)    At the time of and immediately after giving effect to this Amendment, no Default has occurred and is continuing; and
(d)    The Borrower shall have paid or caused to be paid the following:
(i)an amendment fee payable to the Administrative Agent for the benefit of Lenders who have delivered an executed signature page to this Amendment by March 12, 2014 at 5:00 p.m., Eastern Time (the “Consenting Lenders”), in an amount equal to 0.25% of the aggregate amount of the Consenting Lenders’ outstanding Commitments and Loans as of 5:00 p.m., Eastern Time on March 12, 2014; and  
(ii)all reasonable and documented out-of-pocket costs and expenses incurred by the Administrative Agent and its Affiliates (without duplication) including the reasonable fees, charges and disbursements of legal counsel to the Administrative Agent incurred in connection with this Amendment.
Section 4.Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic transmission (i.e. a “PDF” or “TIF”) shall be effective as delivery of a manually executed counterpart hereof.
Section 5.Applicable Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
Section 6.Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.
Section 7.Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of either such agreement or any other Loan Document, and each Loan Party acknowledges and agrees that each of the Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution 

LEGAL_US_E # 108774695.5 

Exhibit 10.2

or effectiveness of this Amendment.  Each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and reaffirmed in all respects and shall continue in full force and effect.  Each Loan Party ratifies and reaffirms its obligations under the Loan Documents to which it is party, the Liens granted by it pursuant to the Collateral Documents, which continue to secure the Obligations, and if such Loan Party is a Guarantor, its guaranty of the Obligations pursuant to the Guaranty.  From and after the Amendment No. 2 Effective Date, all references to the Credit Agreement in any Loan Document shall, unless expressly provided otherwise, refer to the Credit Agreement as amended by this Amendment.  In entering into this Amendment, each Lender has undertaken its own analysis and has not relied on any other Lender in making its decision to enter into this Amendment.  This Amendment constitutes a Loan Document.  The Borrower agrees to pay all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution, delivery and administration of this Amendment and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent) in accordance with the terms of Section 11.04 of the Credit Agreement.
[SIGNATURE PAGES FOLLOW]

LEGAL_US_E # 108774695.5 

Exhibit 10.2

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.
THE KEYW CORPORATION, 
a Maryland corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

THE KEYW HOLDING CORPORATION, 
a Maryland corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

THE ANALYSIS GROUP, LLC, 
a Virginia limited liability company

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

Everest Technology Solutions, Inc.,
a Delaware corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer 

HEXIS CYBER SOLUTIONS, INC.,
a Maryland corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer 

FLIGHT LANDATA, INC.,
a Massachusetts corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

[Signature Page to Amendment No.2 to Amended and Restated Credit Agreement]

Exhibit 10.2

FLI-HI LLC, 
a Massachusetts limited liability company

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

SENSAGE, INC., 
a California corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

SENSAGE INTERNATIONAL INC.,    
a California corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

POOLE & ASSOCIATES, INC.,
a Maryland corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

I.D.E.A.L. Technology Corporation, 
a Florida corporation

By:  /s/ Leonard E. Moodispaw                       
Name:    Leonard E. Moodispaw
Title:    Chief Executive Officer

[Signature Page to Amendment No.2 to Amended and Restated Credit Agreement]

Exhibit 10.2

ROYAL BANK OF CANADA,                                                            as a Lender

By:  /s/Richard C. Smith  
Name: Richard C. Smith
Title: Authorized Signatory

PNC Bank, as a Lender

By:  /s/  Matthew C. Bjonerud  
Name:    Matthew C. Bjonerud
Title:    Vice President

Citizens Bank of Pennsylvania, as a Lender

By:  /s/  Leslie Grizzard  
Name:    Leslie Grizzard
Title:    Senior Vice President

Citibank, as a Lender

By:  /s/  Diane Zannetti  
Name:    Diane Zannetti
Title:    Director

BANK OF AMERICA, N.A., as a Lender

By:  /s/  Mark A. Zirkle  
Name:    Mark A. Zirkle
Title:    Senior Vice President

TD Bank, N.A., as a Lender

By:  /s/  Brian Haggerty  
Name:    Brian Haggerty
Title:    Vice President

Union Bank, N.A., as a Lender

By:  /s/  David M. Hagopian  
Name:    David M. Hagopian
Title:    Vice President

[Signature Page to Amendment No.2 to Amended and Restated Credit Agreement]

Exhibit 10.2

Acknowledged and Accepted:

ROYAL BANK OF CANADA,
as Administrative Agent

By:  /s/  Ann Hurley  
Name:    Ann Hurley
Title:    Manager, Agency

[Signature Page to Amendment No.2 to Amended and Restated Credit Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00230-of-00352.parquet"}]]