Item 8.01. Other Information

On December 18, 2012, Telos Corporation (the "Company") prepaid and satisfied in full its obligations under that certain Subordinated Non-Transferable Promissory Note, dated July 1, 2011 (the "Note"), issued to IT Logistics, Inc. ("ITL") in connection with the acquisition of certain assets from ITL in July 2011. The Note had a principal amount of $15,000,000, accrued interest at a rate of 6.0% per annum beginning November 1, 2012, and was payable on the earlier of July 1, 2041 or the occurrence of a Change in Control (as defined in the Note), provided that certain Senior Obligations (as defined in the Note) were satisfied prior to or concurrent with such Change in Control.

As a condition to the prepayment of the Note, ITL accepted payment in the amount of $7,556,712.33, which is the sum of $7,500,000 in principal plus $56,712.33 in accrued interest. This amount represents a discount of 50% off of the principal amount of the Note. No penalties were due to ITL in connection with the prepayment of the Note.

Item 9.01. Financial Statements and Exhibits.

99.1 Subordinated Non-Transferable Promissory Note, dated July 1, 2011, issued to IT Logistics, Inc. by Telos Corporation in the principal amount of $15 million (incorporated by reference to Exhibit 4 filed with the Company's Current Report on Form 8-K on July 8, 2011).

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