Document:

Exhibit 10.11

 

SUBSIDIARY GUARANTY AGREEMENT

 

SUBSIDIARY
GUARANTY AGREEMENT dated as of February 16, 2006, among each of the
Subsidiaries listed on Schedule I hereto (each such Subsidiary
individually, a “Guarantor” and collectively, the “Guarantors”)
of STANLEY, INC, a Delaware corporation (the “Borrower”), and SUNTRUST
BANK, a Georgia banking corporation as administrative agent (the “Administrative
Agent”) for the Lenders (as defined in the Credit Agreement referred to
below).

 

Reference is
made to the Revolving Credit and Term Loan Agreement dated as of February 16,
2006 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the lenders from time to time party
thereto (the “Lenders”) and SunTrust Bank, as administrative agent for
the Lenders (in such capacity, the “Administrative Agent”), swingline
lender and issuing bank (in such capacity, the “Issuing Bank”).  Capitalized terms used herein and not defined
herein shall have the meanings assigned to such terms in the Credit Agreement.

 

The Lenders
have agreed to make Loans to the Borrower, and the Issuing Bank has agreed to
issue Letters of Credit for the account of the Borrower, pursuant to, and upon
the terms and subject to the conditions specified in, the Credit
Agreement.  Each of the Guarantors is a
direct or indirect wholly-owned Subsidiary of the Borrower and acknowledges
that it will derive substantial benefit from the making of the Loans by the
Lenders, and the issuance of the Letters of Credit by the Issuing Bank.  The obligations of the Lenders to make Loans
and of the Issuing Bank to issue Letters of Credit are conditioned on, among
other things, the execution and delivery by the Guarantors of a Subsidiary
Guaranty Agreement in the form hereof. 
As consideration therefor and in order to induce the Lenders to make
Loans and the Issuing Bank to issue Letters of Credit, the Guarantors are
willing to execute this Subsidiary Guaranty Agreement (as amended, modified or
supplemented from time to time, this “Agreement”).

 

Accordingly,
the parties hereto agree as follows:

 

Section 1.  Guarantee.  Each Guarantor unconditionally
guarantees, jointly with the other Guarantors and severally, as a primary
obligor and not merely as a surety, (i) the due and punctual payment of
all Obligations, including without limitation, (A) the principal of and
premium, if any, and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Loans,
when and as due, whether at maturity, by acceleration, upon one or more dates
set for prepayment or otherwise, (B) each payment required to be made by
the Borrower under the Credit Agreement in respect of any Letter of Credit,
when and as due, including payments in respect of reimbursement or
disbursements, interest thereon and obligations to provide cash collateral, and
(C) all other monetary obligations, including reasonable fees (other than the
fees and expenses of internal counsel), costs, expenses and indemnities,
whether primary, secondary, direct, contingent, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership

 

1

 

or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), of
the Loan Parties to the Administrative Agent and the Lenders under the Credit
Agreement and the other Loan Documents, (ii) the due and punctual
performance of all covenants, agreements, obligations and liabilities of the
Loan Parties under or pursuant to the Credit Agreement and the other Loan
Documents; and (iii) the due and punctual payment and performance of all obligations
of the Borrower, monetary or otherwise, under any Hedging Transaction relating
to the Obligations entered into with a counterparty that was a Lender or an
Affiliate of a Lender at the time such Hedging Transaction was entered into
(all the monetary and other obligations referred to in the preceding
clauses (i) through (iii) being collectively called the “Guaranteed
Obligations”).  Each Guarantor
further agrees that the Guaranteed Obligations may be extended or renewed, in
whole or in part, without notice to or further assent from such Guarantor, and
that such Guarantor will remain bound upon its guarantee notwithstanding any
extension or renewal of any Guaranteed Obligations.

 

Section 2.  Obligations
Not Waived.  To the
fullest extent permitted by applicable law, each Guarantor waives presentment
or protest to, demand of or payment from the other Loan Parties of any of the
Guaranteed Obligations, and also waives notice of acceptance of its guarantee
and notice of protest for nonpayment.  To
the fullest extent permitted by applicable law, the obligations of each
Guarantor hereunder shall not be affected by (i) the failure of the
Administrative Agent or any Lender to assert any claim or demand or to enforce
or exercise any right or remedy against the Borrower or any other Guarantor
under the provisions of the Credit Agreement, any other Loan Document or
otherwise, (ii) any rescission, waiver, amendment or modification of, or
any release from any of the terms or provisions of, this Agreement, any other
Loan Document, any guarantee or any other agreement, including with respect to
any other Guarantor under this Agreement, or (iii) the failure to perfect
any security interest in, or the release of, any of the security held by or on
behalf of the Administrative Agent or any Lender.

 

Section 3.  Security.  Each of the Guarantors authorizes the
Administrative Agent and each of the Lenders to (a) take and hold security
for payment of this Guaranty and the Guaranteed Obligations and exchange,
enforce, waive and release any such security, (b) apply such security and
direct the order or manner of sale thereof as they in their sole discretion may
determine and (c) release or substitute any one or more endorsees, other
guarantors or other obligors.

 

Section 4.  Guaranty
of Payment.  Each Guarantor further agrees that
its guaranty constitutes a guaranty of payment when due and not of collection,
and waives any right to require that any resort be had by the Administrative
Agent or any Lender to any of the security held for payment of the Guaranteed
Obligations or to any balance of any deposit account or credit on the books of
the Administrative Agent or any Lender in favor of the Borrower or any other
Person.

 

Section 5.  No
Discharge or Diminishment of Guaranty.  The obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason (other than the indefeasible payment in full in cash
of the Guaranteed Obligations), including any claim of waiver, release, surrender,
alteration or compromise of any of the Guaranteed Obligations, and shall not be
subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability

 

F-2

 

of the Guaranteed
Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of each Guarantor
hereunder shall not be discharged or impaired or otherwise affected by the
failure of the Administrative Agent or any Lender to assert any claim or demand
or to enforce any remedy under the Credit Agreement, any other Loan Document or
any other agreement, by any waiver or modification of any provision of any
thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Guaranteed Obligations, or by any other act or omission
(other than the gross negligence, bad faith or willful misconduct of the
Administrative Agent or any Lender) that may or might in any manner or to the
extent vary the risk of any Guarantor or that would otherwise operate as a
discharge of each Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of all the Obligations).

 

Section 6.  Defenses
of Borrower Waived.  To the fullest extent permitted by
applicable law, each Guarantor waives any defense based on or arising out of
any defense of any Loan Party or the unenforceability of the Guaranteed
Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of any Loan Party, other than the indefeasible payment in full
in cash of the Guaranteed Obligations. 
The Administrative Agent and the Lenders may, at their election,
foreclose on any security held by one or more of them by one or more judicial
or nonjudicial sales, accept an assignment of any such security in lieu of
foreclosure, compromise or adjust any part of the Guaranteed Obligations, make
any other accommodation with any other Loan Party or any other guarantor,
without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Guaranteed Obligations have been fully and
indefeasibly paid in cash.  Pursuant to
applicable law, each Guarantor waives any defense arising out of any such election
even though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy
of such Guarantor against the Borrower or any other Guarantor or guarantor, as
the case may be, or any security.

 

Section 7.  Agreement
to Pay; Subordination.  In furtherance of the foregoing
and not in limitation of any other right that the Administrative Agent or any
Lender has at law or in equity against any Guarantor by virtue hereof, upon the
failure of the Borrower or any other Loan Party to pay any Obligation when and
as the same shall become due, whether at maturity, by acceleration, after
notice of prepayment or otherwise, each Guarantor hereby promises to and will
forthwith pay, or cause to be paid, to the Administrative Agent for the benefit
of the Lenders in cash the amount of such unpaid and overdue Obligation. Upon
payment by any Guarantor of any sums to the Administrative Agent, all rights of
such Guarantor against any Loan Party arising as a result thereof by way of
right of subrogation, contribution, reimbursement, indemnity or otherwise shall
in all respects be subordinate and junior in right of payment to the prior
indefeasible payment in full in cash of all the Guaranteed Obligations.  In addition, any indebtedness of any Loan
Party now or hereafter held by any Guarantor is hereby subordinated in right of
payment to the prior payment in full in cash of the Guaranteed Obligations.  If any amount shall erroneously be paid to
any Guarantor on account of (i) such subrogation, contribution,
reimbursement, indemnity or similar right or (ii) any such indebtedness of
any Loan Party, such amount shall be held in trust for the benefit of the
Administrative Agent and the Lenders and shall forthwith be paid to the
Administrative Agent to be credited against the payment of the Guaranteed
Obligations, whether matured or unmatured, in accordance with the terms of the
Loan Documents.

 

F-3

 

Section 8.  Information.  Each Guarantor
assumes all responsibility for being and keeping itself informed of other Loan
Parties’ financial condition and assets, and of all other circumstances bearing
upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope
and extent of the risks that such Guarantor assumes and incurs hereunder, and
agrees that none of the Administrative Agent or the Lenders will have any duty
to advise any of the Guarantors of information known to it or any of them
regarding such circumstances or risks.

 

Section 9.  Indemnity and Subrogation.  In addition to all
such rights of indemnity and subrogation as the Guarantors may have under
applicable law (but subject to Section 7), the Borrower agrees that
(a) in the event a payment shall be made by any Guarantor under this
Agreement, the Borrower shall indemnify such Guarantor for the full amount of
such payment and such Guarantor shall be subrogated to the rights of the person
to whom such payment shall have been made to the extent of such payment and (b) in
the event any assets of any Guarantor shall be sold to satisfy a claim of any
Lender under this Agreement, the Borrower shall indemnify such Guarantor in an
amount equal to the greater of the book value or the fair market value of the
assets so sold.

 

Section 10.  Contribution
and Subrogation.  Each Guarantor (a “Contributing
Guarantor”) agrees (subject to Section 7) that, in the event a
payment shall be made by any other Guarantor under this Agreement or assets of
any other Guarantor shall be sold to satisfy a claim of any Lender and such
other Guarantor (the “Claiming Guarantor”) shall not have been fully
indemnified by the Borrower as provided in Section 9, the
Contributing Guarantor shall indemnify the Claiming Guarantor in an amount
equal to the amount of such payment or the greater of the book value or the
fair market value of such assets, as the case may be, in each case multiplied
by a fraction of which the numerator shall be the net worth of the Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net
worth of all the Guarantors on the date hereof (or, in the case of any
Guarantor becoming a party hereto pursuant to Section 23, the date
of the Supplement hereto executed and delivered by such Guarantor).  Any Contributing Guarantor making any payment
to a Claiming Guarantor pursuant to this Section 10 shall be
subrogated to the rights of such Claiming Guarantor under Section 9
to the extent of such payment.

 

Section 11.  Subordination.  Notwithstanding any
provision of this Agreement to the contrary, all rights of the Guarantors under
Section 9 and Section 10 and all other rights of
indemnity, contribution or subrogation under applicable law or otherwise shall
be fully subordinated to the indefeasible payment in full in cash of the
Guaranteed Obligations.  No failure on
the part of the Borrower or any Guarantor to make the payments required under
applicable law or otherwise shall in any respect limit the obligations and
liabilities of any Guarantor with respect to its obligations hereunder, and
each Guarantor shall remain liable for the full amount of the obligations of
such Guarantor hereunder.

 

Section 12.  Representations
and Warranties.  Each Guarantor represents and
warrants as to itself that all representations and warranties relating to it
(as a Subsidiary of the Borrower) contained in the Credit Agreement are true
and correct.

 

Section 13.  Termination.  The guarantees made
hereunder (i) shall terminate without the necessity of any further action
by any party hereto when all the Guaranteed Obligations have

 

F-4

 

been paid in full in
cash and the Lenders have no further commitment to lend under the Credit
Agreement, the LC Exposure has been reduced to zero and the Issuing Bank has no
further obligation to issue Letters of Credit under the Credit Agreement and (ii) shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any Obligation is rescinded or must otherwise
be restored by any Lender or any Guarantor upon the bankruptcy or
reorganization of the Borrower, any Guarantor or otherwise.  In connection with the foregoing, the
Administrative Agent shall execute and deliver to such Guarantor or Guarantor’s
designee, at such Guarantor’s expense, any documents or instruments which such
Guarantor shall reasonably request from time to time to evidence such
termination and release.

 

Section 14.  Binding
Effect; Several Agreement; Assignments.  Whenever in this Agreement any of
the parties hereto is referred to, such reference shall be deemed to include
the successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of the Guarantors that are contained in this
Agreement shall bind and inure to the benefit of each party hereto and their
respective permitted successors and assigns. 
This Agreement shall become effective as to any Guarantor when a
counterpart hereof executed on behalf of such Guarantor shall have been
delivered to the Administrative Agent, and a counterpart hereof shall have been
executed on behalf of the Administrative Agent, and thereafter shall be binding
upon such Guarantor and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of such Guarantor, the
Administrative Agent and the Lenders, and their respective permitted successors
and assigns, except that no Guarantor shall have the right to assign its rights
or obligations hereunder or any interest herein (and any such attempted
assignment shall be void).  If all of the
capital stock of a Guarantor is sold, transferred or otherwise disposed of
pursuant to a transaction permitted by the Credit Agreement, such Guarantor
shall be released automatically from its obligations under this Agreement
without the necessity of any further action by any party hereto.  This Agreement shall be construed as a
separate agreement with respect to each Guarantor and may be amended, modified,
supplemented, waived or released with respect to any Guarantor without the
approval of any other Guarantor and without affecting the obligations of any
other Guarantor hereunder.

 

Section 15.  Waivers;
Amendment.

 

(a)           No
failure or delay of the Administrative Agent of any kind in exercising any
power or right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and of the Administrative Agent
hereunder and of the Lenders under the other Loan Documents are cumulative and
are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or consent to any departure by any Guarantor therefrom shall in any event be
effective unless the same shall be permitted by subsection (b) below,
and then such waiver and consent shall be effective only in the specific
instance and for the purpose for which given. 
No notice or demand on any Guarantor in any case shall entitle such
Guarantor to any other or further notice in similar or other circumstances.

 

(b)           Neither
this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to a written agreement entered into between the Guarantors with
respect to which such waiver, amendment or modification relates and the
Administrative Agent,

 

F-5

 

with the prior
written consent of the Required Lenders (except as otherwise provided in the
Credit Agreement).

 

Section 16.  Governing
Law.  THIS AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.  THIS
AGREEMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

Section 17.  Notices.  All communications and notices hereunder
shall be in writing and given as provided in Section 10.1 of the Credit
Agreement.  All communications and
notices hereunder to each Guarantor shall be given to it at its address set
forth on Schedule I attached hereto or any subsequent address described in
a written notice given as provided in Section 10.1 of the Credit
Agreement.

 

Section 18.  Survival
of Agreement; Severability.

 

(a)           All
covenants, agreements representations and warranties made by the Guarantors
herein and in the certificates or other instruments prepared or delivered in
connection with or pursuant to this Agreement or the other Loan Document shall
be considered to have been relied upon by the Administrative Agent and the
Lenders and shall survive the making by the Lenders of the Loans and the
issuance of the Letters of Credit by the Issuing Bank regardless of any
investigation made by any of them or on their behalf, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or any other fee or amount payable under this Agreement or any other
Loan Document is outstanding and unpaid or the LC Exposure does not equal zero
and as long as the Commitments have not been terminated.

 

(b)           In
the event one or more of the provisions contained in this Agreement or in any
other Loan Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein and therein shall not in any way be affected or impaired
thereby (it being understood that the invalidity of a particular provision in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). 
The parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

 

Section 19.  Counterparts.  This Agreement may be executed in
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute a single contract (subject to Section 14),
and shall become effective as provided in Section 14.  Delivery of an executed signature page to
this Agreement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Agreement.

 

Section 20.  Rules of
Interpretation. The rules of interpretation specified in Section 1.4
of the Credit Agreement shall be applicable to this Agreement.

 

F-6

 

Section 21.  Jurisdiction;
Consent to Service of Process.

 

(a)           Each
Guarantor hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Loan Documents, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State court or, to the
extent permitted by law, in such Federal court. 
Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any
right that the Administrative Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or
the other Loan Documents against any Guarantor or its properties in the courts
of any jurisdiction.

 

(b)           Each
Guarantor hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or the other Loan Documents in any New
York State or Federal court.  Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

 

(c)           Each
party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 17. 
Nothing in this Agreement will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

 

Section 22.  Waiver
of Jury Trial.  EACH PARTY
HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY
OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS.  EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER  AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 22.

 

Section 23.  Additional
Guarantors.  Pursuant to Section 5.11
of the Credit Agreement, each Subsidiary Loan Party that was not in existence
on the date of the Credit Agreement is required to enter into this Agreement as
a Guarantor upon becoming Subsidiary Loan Party.  Upon execution and delivery after the date
hereof by the Administrative Agent and such Subsidiary of an instrument in the
form of Annex 1, such Subsidiary shall become a Guarantor hereunder with the
same force and effect as if originally named as a Guarantor herein.  The execution and delivery of any instrument
adding an additional Guarantor as a party to this

 

F-7

 

Agreement shall not
require the consent of any other Guarantor hereunder.  The rights and obligations of each Guarantor
hereunder shall remain in full force and effect notwithstanding the addition of
any new Guarantor as a party to this Agreement.

 

Section 24.  Right of
Setoff.  If an Event of
Default shall have occurred and be continuing, each Lender and the Issuing Bank
are hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
Indebtedness at any time owing by such Lender or the Issuing Bank to or for the
credit or the account of any Guarantor against any or all the obligations of
such Guarantor now or hereafter existing under this Agreement and the other
Loan Documents held by such Lender or the Issuing Bank, irrespective of whether
or not such Person shall have made any demand under this Agreement or any other
Loan Document and although such obligations may be unmatured. The rights of
each Lender  and the Issuing Bank under
this Section 24 are in addition to other rights and remedies (including
other rights of setoff) which such Lender or the Issuing Bank, as the case may
be, may have.

 

Section 25.  Savings
Clause.

 

(a)           It
is the intent of each Guarantor and the Administrative Agent that each
Guarantor’s maximum obligations hereunder shall be, but not in excess of:

 

(i)            in
a case or proceeding commenced by or against any Guarantor under the provisions
of Title 11 of the United States Code, 11 U.S.C. §§101 et  seq.
(the “Bankruptcy Code”) on or within one year from the date on which any
of the Guaranteed Obligations are incurred, the maximum amount which would not
otherwise cause the Guaranteed Obligations (or any other obligations of such
Guarantor owed to the Administrative Agent or the Lenders) to be avoidable or
unenforceable against such Guarantor under (i) Section 548 of the
Bankruptcy Code or (ii) any state fraudulent transfer or fraudulent
conveyance act or statute applied in such case or proceeding by virtue of Section 544
of the Bankruptcy Code; or

 

(ii)           in
a case or proceeding commenced by or against any Guarantor under the Bankruptcy
Code subsequent to one year from the date on which any of the Guaranteed
Obligations are incurred, the maximum amount which would not otherwise cause
the Guaranteed Obligations (or any other obligations of such Guarantor to the
Administrative Agent or the Lenders) to be avoidable or unenforceable against
such Guarantor under any state fraudulent transfer or fraudulent conveyance act
or statute applied in any such case or proceeding by virtue of Section 544
of the Bankruptcy Code; or

 

(iii)          in
a case or proceeding commenced by or against any Guarantor under any law,
statute or regulation other than the Bankruptcy Code (including, without
limitation, any other bankruptcy, reorganization, arrangement, moratorium,
readjustment of debt, dissolution, liquidation or similar debtor relief laws),
the maximum amount which would not otherwise cause the Guaranteed Obligations
(or any other obligations of such Guarantor to the Administrative Agent or the
Lenders) to be avoidable or unenforceable against such Guarantor under such
law, statute or regulation including, without limitation,

 

F-8

 

any state fraudulent transfer or fraudulent conveyance act or statute
applied in any such case or proceeding.

 

(b)           The
substantive laws under which the possible avoidance or unenforceability of the
Guaranteed Obligations (or any other obligations of such Guarantor to the
Administrative Agent or the Lenders) as may be determined in any case or
proceeding shall hereinafter be referred to as the “Avoidance Provisions”.  To the extent set forth in Section 25(a) (i),
(ii), and (iii), but only to the extent that the Guaranteed Obligations
would otherwise be subject to avoidance or found unenforceable under the
Avoidance Provisions, if any Guarantor is not deemed to have received valuable
consideration, fair value or reasonably equivalent value for the Guaranteed
Obligations, or if the Guaranteed Obligations would render such Guarantor
insolvent, or leave such Guarantor with an unreasonably small capital to
conduct its business, or cause such Guarantor to have incurred debts (or to
have intended to have incurred debts) beyond its ability to pay such debts as
they mature, in each case as of the time any of the Guaranteed Obligations are
deemed to have been incurred under the Avoidance Provisions and after giving
effect to the contribution by such Guarantor, the maximum Guaranteed
Obligations for which such Guarantor shall be liable hereunder shall be reduced
to that amount which, after giving effect thereto, would not cause the
Guaranteed Obligations (or any other obligations of such Guarantor to the
Administrative Agent or the Lenders), as so reduced, to be subject to avoidance
or unenforceability under the Avoidance Provisions.

 

(c)           This
Section 25 is intended solely to preserve the rights of the
Administrative Agent and the Lenders hereunder to the maximum extent that would
not cause the Guaranteed Obligations of such Guarantor to be subject to
avoidance or unenforceability under the Avoidance Provisions, and neither the Guarantors
nor any other Person shall have any right or claim under this Section 25
as against the Administrative Agent or Lenders that would not otherwise be
available to such Person under the Avoidance Provisions.

 

(Signatures on following page)

 

F-9

 

IN WITNESS
WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.

 

 

	
   

  	
  STANLEY ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip O. Nolan

  	
   

  
	
   

  	
  Name:   Philip O. Nolan

  
	
   

  	
  Title:     President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  MORGAN RESEARCH CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip O. Nolan

  	
   

  
	
   

  	
  Name:   Philip O. Nolan

  
	
   

  	
  Title:     President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  SUNTRUST BANK, as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter J. Mandanis

  	
   

  
	
   

  	
  Name:   Peter J. Mandanis

  
	
   

  	
  Title:     Senior Vice President

  
	
   

  
	
  Acknowledged and agreed to:

  
	
   

  
	
  STANLEY, INC.

  
	
   

  
	
  By:

  	
  /s/ Philip O. Nolan

  	
   

  
	
  Name:  Philip O. Nolan

  
	
  Title:    President and Chief
  Executive Officer

  
						

 

10

 

ANNEX 1 TO THE

 

SUBSIDIARY GUARANTY AGREEMENT

 

SUPPLEMENT
NO.  [  
] dated as of [                 ],
to  the Subsidiary Guaranty Agreement
(the “Guaranty Agreement”) dated as of February 16, 2006, among
each of the Subsidiaries listed on Schedule I thereto (each such
Subsidiary individually, a “Guarantor” and collectively, the “Guarantors”)
of  Stanley, Inc., a Delaware
corporation (the “Borrower”), and SUNTRUST BANK, a Georgia banking
corporation, as Administrative Agent (the “Administrative Agent”) for
the Lenders (as defined in the Credit Agreement referred to below).

 

A.            Reference is made to the Revolving
Credit and Term Loan Agreement dated as of February 16, 2006 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among the Borrower, the lenders from time to time party thereto (the “Lenders”)
and SunTrust Bank, as Administrative Agent, swingline lender and issuing bank
(in such capacity, the “Issuing Bank”). 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement.

 

B.            Capitalized terms used herein and
not otherwise defined herein shall have the meanings assigned to such terms in
the Guaranty Agreement and the Credit Agreement.

 

C.            The Guarantors have entered into the
Guaranty Agreement in order to induce the Lenders to make Loans and the Issuing
Bank to issue Letters of Credit. 
Pursuant to Section 5.11 of the Credit Agreement, each Subsidiary
Loan Party that was not in existence or not a Subsidiary Loan Party on the date
of the Credit Agreement is required to enter into the Guaranty Agreement as a
Guarantor upon becoming a Subsidiary Loan Party.  Section 23 of the Guaranty Agreement
provides that additional Subsidiaries of the Borrower may become Guarantors
under the Guaranty Agreement by execution and delivery of an instrument in the
form of this Supplement.  The undersigned
Subsidiary of the Borrower (the “New Guarantor”) is executing this
Supplement in accordance with the requirements of the Credit Agreement to
become a Guarantor under the Guaranty Agreement in order to induce the Lenders
to make additional Loans and the Issuing Bank to issue additional Letters of
Credit and as consideration for Loans previously made and Letters of Credit
previously issued.

 

Accordingly,
the Administrative Agent and the New Guarantor agree as follows:

 

Section 1.  In accordance with Section 23 of the
Guaranty Agreement, the New Guarantor by its signature below becomes a
Guarantor under the Guaranty Agreement with the same force and effect as if
originally named therein as a Guarantor and the New Guarantor hereby (a) agrees
to all the terms and provisions of the Guaranty Agreement applicable to it as
Guarantor thereunder and (b) represents and warrants that the
representations and warranties made by it (but not the other Guarantors) as a
Guarantor thereunder are true and correct on and as of the date hereof.  Each reference to a Guarantor in the Guaranty
Agreement shall be deemed to

 

 

include the New Guarantor.  The Guaranty Agreement is hereby incorporated
herein by reference.

 

Section 2.  The New Guarantor represents and warrants to
the Administrative Agent and the Lenders that this Supplement has been duly
authorized, executed and delivered by it and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms, except
as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity.

 

Section 3.  This Supplement may be executed in
counterparts each of which shall constitute an original, but all of which when
taken together shall constitute a single contract.  This Supplement shall become effective when
the Administrative Agent shall have received counterparts of this Supplement
that, when taken together, bear the signatures of the New Guarantor and the
Administrative Agent.  Delivery of an
executed signature page to this Supplement by facsimile transmission shall
be as effective as delivery of a manually signed counterpart of this
Supplement.

 

Section 4.  Except as expressly supplemented hereby, the
Guaranty Agreement shall remain in full force and effect.

 

Section 5.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF [NEW YORK.

 

Section 6.  In case any one or more of the provisions
contained in this Supplement should be held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining
provisions contained herein and in the Guaranty Agreement shall not in any way
be affected or impaired thereby (it being understood that the invalidity of a
particular provision hereof in a particular jurisdiction shall not in and of
itself affect the validity of such provision in any other jurisdiction).  The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible
to that of the invalid, illegal or unenforceable provisions.

 

Section 7.  All communications and notices hereunder
shall be in writing and given as provided in Section 17 of the Guaranty
Agreement.  All communications and
notices hereunder to the New Guarantor shall be given to it at the address set
forth under its signature below, with a copy to the Borrower.

 

Section 8.  The New Guarantor agrees to reimburse the
Administrative Agent for its out-of-pocket expenses in connection with this
Supplement, including the fees, disbursements and other charges of external
counsel for the Administrative Agent.

 

(Signatures on following page)

 

 

IN WITNESS
WHEREOF, the New Guarantor and the Administrative Agent have duly executed this
Supplement to the Guaranty Agreement as of the day and year first above
written.

 

	
   

  	
  [NAME OF NEW GUARANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
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  Name:

  
	
   

  	
   

  	
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  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUNTRUST BANK, as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:QuickLinks
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Exhibit 10.5    
    

 
 

AMENDED AND RESTATED
  PROMISSORY NOTE    
    

	$133,333	 	New York, New York
	June 22, 2006	 	 

        TC
Acquisition Corp., formerly known as Treehouse Partners Corporation (the "Maker") promises to pay to the order of Robert J. Majteles
(the "Payee") the principal sum of One Hundred Thirty-Three Thousand Three Hundred Thirty-Three Dollars and 00/100 ($133,333) in lawful money of the
United States, together with interest thereon calculated from the date hereof and payable in accordance with the provisions of this promissory note (this
"Note"). This Note hereby amends, restates and integrates in its entirety the $133,333 Promissory Note, dated as of June 27, 2005, made by the
Maker in favor of the Payee (the "Prior Note"). 

        1.     Principal. The principal balance of this Note shall be repayable on the earlier of (i) June 26, 2007 or
(ii) the date on which Maker consummates an initial public offering of its securities. 

        2.     Interest. Interest shall accrue at the rate of 4% annually (non-compounded) on the unpaid principal balance of
this Note, commencing on the date of the Prior Note. 

        3.     Application of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of
any sum due under this Note, including (without limitation) reasonable attorney's fees, then to the payment in full of any late charges and finally to the reduction of the unpaid principal balance of
this Note. 

        4.     Events of Default. The following shall constitute Events of Default: 

        (a)   Failure
to Make Required Payments. Failure by Maker to pay the principal of this Note within five (5) business days following the date when due. 

        (b)   Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now constituted or hereafter amended, or any other
applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the
failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in furtherance of any of the foregoing. 

        (c)   Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in an involuntary case under
the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance
of any such decree or order unstayed and in effect for a period of 60 consecutive days. 

        5.     Remedies.

        (a)   Upon
the occurrence of an Event of Default specified in Section 4(a), Payee may, by written notice to Maker, declare this Note to be due and payable, whereupon
the principal amount of this Note, and all other amounts payable thereunder, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding. 

 

        (b)   Upon
the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all other sums payable with regard to, this Note
shall automatically and immediately become due and payable, in all cases without any action on the part of Payee. 

        6.     Waivers. Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand,
notice of dishonor, protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under the terms of this Note, and all benefits
that might accrue to Maker by virtue of any present or future laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment,
levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real estate that may be levied upon
pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee. 

        7.     Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance,
default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner
by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be
granted by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers, guarantors, or sureties may become parties hereto without notice to them or
affecting their liability hereunder. 

        8.     Notices. Any notice called for hereunder shall be deemed properly given if (i) sent by certified mail, return
receipt requested, (ii) personally delivered, (iii) dispatched by any form of private or governmental express mail or delivery service providing receipted delivery or (iv) sent by
telefacsimile or (v) to the following addresses or to such other address as either party may designate by notice in accordance with this Section: 

If
to Maker: 

TC
Acquisition Corp.

1618 Fifth Street

Berkeley, CA 94710

Attn.: Robert J. Majteles

Fax: (510) 654-6474

If to Payee: 

Robert
J. Majteles

1618 Fifth Street

Berkeley, CA 94710

Fax: (510) 654-6474 

        Notice
shall be deemed given on the earlier of (i) actual receipt by the receiving party, (ii) the date shown on a telefacsimile transmission confirmation, (iii) the
date reflected on a signed delivery receipt, or (iv) two (2) Business Days following tender of delivery or dispatch by express mail or delivery service. 

        9.     Construction. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE DOMESTIC, INTERNAL LAW, BUT NOT THE LAW OF
CONFLICT OF LAWS, OF THE STATE OF NEW YORK. 

        10.   Severability. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or 

2

 

unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. 

        IN
WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by its President the day and year first above written. 

	 	 	TC ACQUISITION CORP.
	

 	
 	

By	
 	

 
 Name: Robert J. Majteles

Title: President

3

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Exhibit 10.5

AMENDED AND RESTATED PROMISSORY NOTE

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