EX-10.4






Exhibit 10.4




AMENDED AND RESTATED

SENIOR OFFICER EMPLOYMENT AGREEMENT




     THIS AMENDED AND RESTATED SENIOR OFFICER EMPLOYMENT AGREEMENT (this “Agreement”) is entered
into effective the 31st day of December, 2008 by and between The GEO Group, Inc. (the
“Company”) and John J. Bulfin (the “Employee” and, together with the Company, the “Parties”).



     WHEREAS, the Employee and the Company have previously entered into a Senior Officer Employment
Agreement, effective March 23, 2005 (the “Prior Employment Agreement”), which set forth the
Parties’ rights and obligations with respect to the Employee’s employment with the Company in order
to facilitate the continued employment of the Employee as Senior Vice President, General Counsel and Corporate Secretary; and



     WHEREAS, the Employee and the Company wish to amend and restate the Prior Employment Agreement
to, among other things, make it compliant with Section 409A of the Internal Revenue Code of 1986,
as amended from time to time (the “Code”), and its implementing regulations and guidance
(collectively, “Code Section 409A”), and to ensure that certain provisions of this Agreement comply
with guidance recently issued under Section 162(m) of the Code; and



     WHEREAS, the terms of this Agreement have been reviewed and approved by the members of the
Compensation Committee of the Board of Directors of the Company (the “Board”).



     NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
for other valuable consideration the receipt and adequacy of which is hereby acknowledged, the
Parties hereby agree as follows:



     1.     Position and Duties. The Company hereby agrees to continue to employ the Employee and the
Employee hereby accepts continued employment and agrees to continue to serve as
 Senior Vice President, General Counsel and Corporate Secretary of the Company. The Employee will perform all duties and responsibilities
and will have all authority inherent in the position of Senior Vice President, General Counsel and Corporate Secretary.



     2.     Term of Agreement and Employment. The term of the Employee’s employment under this
Agreement will be for an initial period of two (2) years, beginning on the effective date of this
Agreement, and terminating two years thereafter. The term of employment under this Agreement will
be automatically extended by one day every day such that it has a continuous “rolling” two-year
term until the age of 67 years, unless otherwise terminated pursuant to Section 6 or 7 of this
Agreement.



     3.     Definition — Cause. For purposes of this Agreement, “Cause” for the termination of the
Employee’s employment hereunder shall be deemed to exist if, in the reasonable judgment of the
Company’s Chief Executive Officer (CEO): (i) the Employee commits fraud, theft or embezzlement
against the Company or any subsidiary or affiliate thereof; (ii) the Employee commits a felony or a
crime involving moral turpitude; (iii) the Employee breaches any non-



1









 




competition, confidentiality or non-solicitation agreement with the Company or any subsidiary
or affiliate thereof; (iv) the Employee breaches any of the terms of this Agreement and fails to
cure such breach within 30 days after the receipt of written notice of such breach from the
Company; or (v) the Employee engages in gross negligence or willful misconduct that causes harm to
the business and operations of the Company or a subsidiary or affiliate thereof.




     4.     Compensation.




	 	A.	 	Annual Base Salary. The Employee shall be paid his current
annual base salary of $360,000 for the remainder of calendar year 2008
(as such may be amended from time to time, the “Annual Base Salary”). The
Company may increase the Annual Base Salary paid to the Employee in an amount
to be determined by the Chief Executive Officer of the Company. The Annual
Base Salary shall be payable at such regular times and intervals as the Company
customarily pays its employees from time to time.
	 
	 	B.	 	Annual Performance Award. For each fiscal year of employment
during which the Company employs the Employee, the Employee shall be entitled
to receive a target annual performance award in accordance with the terms of
any plan governing employee performance awards then in effect as established by
the Board (the “Annual Performance Award”).





     5.     Employee Benefits. The Employee will be entitled to twenty-one (21) paid-time-off (PTO)
days of vacation per fiscal year during his/her first ten (10) years of service, and twenty-six
(26) paid-time-off (PTO) days of vacation per fiscal year thereafter. The Employee, the Employee’s
spouse, and qualifying members of the Employee’s family will be eligible for and will participate
in any benefits and perquisites available to other senior vice presidents of the Company, including
any group health, dental, life insurance, disability, or other form of employee benefit plan or
program of the Company now existing or that may be later adopted by the Company (collectively, the
“Employee Benefits”).



     6.     Death or Disability. The Employee’s employment will terminate immediately upon the
Employee’s death. If the Employee becomes physically or mentally disabled so as to become unable
for a period of more than five consecutive months or for shorter periods aggregating at least five
months during any twelve-month period to perform the Employee’s duties hereunder on a substantially
full-time basis, the Employee’s employment will terminate as of the end of such five-month or
twelve-month period and this shall be considered a “disability” under this Agreement. Such
termination shall not affect the Employee’s benefits under the Company’s disability insurance
program, if any, then in effect.



     7.     Termination. Either the Employee or the Company may terminate this Agreement for any
reason upon not less than thirty (30) days written notice.




	 	A.	 	Termination of Employment Without Cause or Upon the Death or
Disability of the Employee. Upon the termination of the Employee’s




2









 






	 	 	 	employment under this Agreement by the Company without Cause or the death or
disability of the Employee, the following shall apply:






	 	(i)	 	Termination Payment. The Employee shall be
entitled to and paid a termination payment (the “Termination Payment”)
equal to two (2) years’ Annual Base Salary as set forth in Section 4
based upon the then current salary level. The Termination Payment
shall be made within 10 days of any termination pursuant to this
Section 7(A).
	 
	 	(ii)	 	Termination Benefits. The Company shall
continue to provide the Employee and any covered dependents of the
Employee (and if applicable, his beneficiaries) with the Employee
Benefits (as described in Section 5 hereof) for a period of 2 years
after the date of termination of the Employee’s employment with the
Company. Such Employee Benefits shall be provided at no cost to the
Employee in no less than the same amount, and on the same terms and
conditions, as in effect on the date on which the termination of
employment occurs. If the Employee dies during the 2-year period
following a termination pursuant to this Section 7(A), the Company
shall continue to provide the Employee Benefits to the Employee’s
covered dependents under the same terms as were being provided prior to
the Employee’s death and, to the extent applicable, to the Employee’s
estate.
	 
	 	(iii)	 	Termination Automobile. Within 10 days
following termination, the Company shall transfer all of its interest
in any automobile used by the Employee pursuant to the Company’s
Employee Automobile Policy (the “Employee Automobile Policy”) and shall
pay the balance of any outstanding loans or leases on such automobile
(whether such obligations are those of the Employee or the Company) so
that the Employee owns the automobile outright (in the event such
automobile is leased, the Company shall pay the residual cost of such
lease).
	 
	 	(iv)	 	Termination Stock Options. All of the
outstanding unvested stock options granted to the Employee prior to
termination will fully vest immediately upon termination.






	 	B.	 	Termination of Employment by Resignation of Employee or by the
Company With Cause. Upon the termination of the Employee’s employment by the
voluntary resignation of the Employee or by the Company with Cause, the
Employee shall be due no further compensation under this Agreement related to
Annual Base Salary, Annual Performance Award, Employee Benefits, or Termination
Payment other than what is due and owing through the effective date of the
Employee’s resignation or termination.




3









 






	 	C.	 	Retirement Plan Rights Unaffected. Termination of the
Employee’s employment under this Agreement for any reason whatsoever shall not
affect the Employee’s rights under the Company’s retirement plan applicable to
the Employee.





     8.     Restrictive Covenants.




	 	A.	 	General. The Company and the Employee hereby acknowledge and
agree that (i) the Employee is in possession of trade secrets (as defined in
Section 688.002(4) of the Florida Statutes) of the Company (the “Trade
Secrets”), (ii) the restrictive covenants contained in this Section 8 are
justified by legitimate business interests of the Company, including, but not
limited to, the protection of the Trade Secrets, in accordance with Section
542.335(1)(e) of the Florida Statutes, and (iii) the restrictive covenants
contained in this Section 8 are reasonably necessary to protect such legitimate
business interests of the Company.
	 
	 	B.	 	Non-Competition. During the period of the Employee’s
employment with the Company and until two (2) years after the termination of
the Employee’s employment with the Company, the Employee will not, directly or
indirectly, either (i) on the Employee’s own behalf or as a partner, officer,
director, trustee, employee, agent, consultant or member of any person, firm or
corporation, or otherwise, enter into the employ of, render any service to, or
engage in any business or activity which is the same as or competitive with any
business or activity conducted by the Company or any of its affiliates or
majority-owned subsidiaries or (ii) become an officer, employee or consultant
of, or otherwise assume a substantial role or relationship with, any
governmental entity, agency or political subdivision that is a client or
customer of the Company or any subsidiary or affiliate of the Company;
provided, however, that the foregoing shall not be deemed to prevent the
Employee from investing in securities of any company having a class of
securities which is publicly traded, so long as through such investment
holdings in the aggregate, the Employee is not deemed to be the beneficial
owner of more than 5% of the class of securities that is so publicly traded.
During the period of the Employee’s employment and until two (2) years after
the termination of the Employee’s employment, the Employee will not, directly
or indirectly, on the Employee’s own behalf or as a partner, shareholder,
officer, employee, director, trustee, agent, consultant or member of any
person, firm or corporation or otherwise, seek to employ or otherwise seek the
services of any employee of the Company or any of its affiliates or
majority-owned subsidiaries.
	 
	 	C.	 	Confidentiality. During and following the period of the
Employee’s employment with the Company, the Employee will not use for the
Employee’s own benefit or for the benefit of others, or divulge to others, any
information, Trade Secrets, knowledge or data of a secret or





4









 











	 	 	 	confidential nature and otherwise not available to members of the general
public that concerns the business or affairs of the Company or its
subsidiaries or affiliates and which was acquired by the Employee at any
time prior to or during the term of the Employee’s employment with the
Company, except with the specific prior written consent of the Company.
	 
	 	D.	 	Work Product. The Employee agrees that all programs,
inventions, innovations, improvements, developments, methods, designs,
analyses, reports and all similar or related information which relate to the
business of the Company and its subsidiaries and affiliates, actual or
anticipated, or to any actual or anticipated research and development conducted
in connection with the business of the Company and its subsidiaries affiliates,
and all existing or future products or services, which are conceived, developed
or made by the Employee (alone or with others) during the term of this
Agreement (“Work Product”) belong to the Company. The Employee will cooperate
fully in the establishment and maintenance of all rights of the Company and its
subsidiaries and affiliates in such Work Product. The provisions of this
Section 8(D) will survive termination of this Agreement indefinitely to the
extent necessary to require actions to be taken by the Employee after the
termination of the Agreement with respect to Work Product created during the
term of this Agreement.
	 
	 	E.	 	Enforcement. The Parties agree and acknowledge that the
restrictions contained in this Section 8 are reasonable in scope and duration
and are necessary to protect the Company or any of its subsidiaries or
affiliates. If any covenant or agreement contained in this Section 8 is found
by a court having jurisdiction to be unreasonable in duration, geographical
scope or character of restriction, the covenant or agreement will not be
rendered unenforceable thereby but rather the duration, geographical scope or
character of restriction of such covenant or agreement will be reduced or
modified with retroactive effect to make such covenant or agreement reasonable,
and such covenant or agreement will be enforced as so modified. The Employee
agrees and acknowledges that the breach of this Section 8 will cause
irreparable injury to the Company or any of its subsidiaries or affiliates and
upon the breach of any provision of this Section 8, the Company or any of its
subsidiaries or affiliates shall be entitled to injunctive relief, specific
performance or other equitable relief, without being required to post a bond;
provided, however, that, this shall in no way limit any other remedies which
the Company or any of its subsidiaries or affiliates may have (including,
without limitation, the right to seek monetary damages).





     9.     Representations. The Employee hereby represents and warrants to the Company that (i) the
execution, delivery and full performance of this Agreement by the Employee does not and will not
conflict with, breach, violate or cause a default under any agreement, contract or instrument to
which the Employee is a party or any judgment, order or decree to which the



5









 




Employee is subject; (ii) the Employee is not a party or bound by any employment agreement,
consulting agreement, agreement not to compete, confidentiality agreement or similar agreement with
any other person or entity; and (iii) upon the execution and delivery of this Agreement by the
Employee and the Company, this Agreement will be the Employee’s valid and binding obligation,
enforceable in accordance with its terms.




     10.     Arbitration. In the event of any dispute between the Company and the Employee with
respect to this Agreement, either party may, in its sole discretion by notice to the other, require
such dispute to be submitted to arbitration. The arbitrator will be selected by agreement of the
Parties or, if they cannot agree on an arbitrator or arbitrators within 30 days after the giving of
such notice, the arbitrator will be selected by the American Arbitration Association. The
determination reached in such arbitration will be final and binding on both Parties without any
right of appeal. Execution of the determination by such arbitrator may be sought in any court
having jurisdiction. Unless otherwise agreed by the Parties, any such arbitration will take place
in West Palm Beach, Florida and will be conducted in accordance with the rules of the American
Arbitration Association. If the Employee is the prevailing party in any such arbitration, he will
be entitled to reimbursement by the Company of all reasonable costs and expenses (including
attorneys’ fees incurred in such arbitration).



     11.     Assignment. The Employee may not assign, transfer, convey, mortgage, hypothecate, pledge
or in any way encumber the compensation or other benefits payable to the Employee or any rights
which the Employee may have under this Agreement. Neither the Employee nor the Employee’s
beneficiary or beneficiaries will have any right to receive any compensation or other benefits
under this Agreement, except at the time, in the amounts and in the manner provided in this
Agreement. This Agreement will inure to the benefit of and will be binding upon any successor to
the Company, and any successor to the Company shall be authorized to enforce the terms and
conditions of this Agreement, including the terms and conditions of the restrictive covenants
contained in Section 8 hereof. As used in this Agreement, the term “successor” means any person,
firm, corporation or other business entity which at any time, whether by merger, purchase or
otherwise, acquires all or substantially all of the capital stock or assets of the Company. This
Agreement may not otherwise be assigned by the Company.



     12.     Governing Law. This Agreement shall be governed by the laws of the State of Florida
without regard to the application of conflicts of laws.



     13.     Entire Agreement. This Agreement constitutes the only agreement between the Company and
the Employee regarding the Employee’s employment by the Company. This Agreement supersedes any and
all other agreements and understandings, written or oral, between the Company and the Employee
regarding the subject matter hereof and thereof. A waiver by either party of any provision of this
Agreement or any breach of such provision in an instance will not be deemed or construed to be a
waiver of such provision for the future, or of any subsequent breach of such provision. This
Agreement may be amended, modified or changed only by further written agreement between the Company
and the Employee, duly executed by both Parties.



6









 





     14.     Severability; Survival. In the event that any provision of this Agreement is found to be
void and unenforceable by a court of competent jurisdiction, then such unenforceable provision
shall be deemed modified so as to be enforceable (or if not subject to modification then eliminated
herefrom) to the extent necessary to permit the remaining provisions to be enforced in accordance
with the Parties’ intention. The provisions of Section 8 (and the restrictive covenants contained
therein) shall survive the termination for any reason of this Agreement and/or the Employee’s
relationship with the Company.



     15.     Notices. Any and all notices required or permitted to be given hereunder will be in
writing and will be deemed to have been given when deposited in United States mail, certified or
registered mail, postage prepaid. Any notice to be given by the Employee hereunder will be
addressed to the Company to the attention of its General Counsel at its main offices, One Park
Place, Suite 700, 621 Northwest 53rd Street, Boca Raton, Florida 33487. Any notice to be given to
the Employee will be addressed to the Employee at the Employee’s residence address last provided by
the Employee to Company. Either party may change the address to which notices are to be addressed
by notice in writing to the other party given in accordance with the terms of this Section.



     16.     Headings. Section headings are for convenience of reference only and shall not limit or
otherwise affect the meaning or interpretation of this Agreement or any of its terms and
conditions.



     17.     Cancellation of the Prior Employment Agreement. The Prior Employment Agreement is hereby
cancelled and terminated as of the effective date of this Agreement.



     18.     SECTION 409A COMPLIANCE.




	 	A.	 	GENERAL. It is the intention of both the Company and the Employee that
the benefits and rights to which the Employee is entitled pursuant to this Agreement
comply with Code Section 409A, to the extent that the requirements of Code Section 409A
are applicable thereto, and the provisions of this Agreement shall be construed in a
manner consistent with that intention. If the Employee or the Company believes, at any
time, that any such benefit or right that is subject to Code Section 409A does not so
comply, it shall promptly advise the other and shall negotiate reasonably and in good
faith to amend the terms of such benefits and rights such that they comply with Code
Section 409A (with the most limited possible economic effect on the Employee and on the
Company).
	 
	 	B.	 	DISTRIBUTIONS ON ACCOUNT OF SEPARATION FROM SERVICE. To the extent
required to comply with Code Section 409A, any payment or benefit required to be paid
under this Agreement on account of termination of the Employee’s service (or any other
similar term) shall be made only in connection with a “separation from service” with
respect to the Employee within the meaning of Code Section 409A.




7









 












	 	C.	 	NO ACCELERATION OF PAYMENTS. Neither the Company nor the Employee,
individually or in combination, may accelerate any payment or benefit
that is subject to Code Section 409A, except in compliance with Code Section 409A
and the provisions of this Agreement, and no amount that is subject to Code Section
409A shall be paid prior to the earliest date on which it may be paid without
violating Code Section 409A.
	 
	 	D.	 	SIX MONTH DELAY FOR SPECIFIED EMPLOYEES. In the event that the
Employee is a “specified employee” (as described in Code Section 409A), and any payment
or benefit payable pursuant to this Agreement constitutes deferred compensation under
Code Section 409A, then the Company and the Employee shall cooperate in good faith to
undertake any actions that would cause such payment or benefit not to constitute
deferred compensation under Code Section 409A. In the event that, following such
efforts, the Company determines (after consultation with its counsel) that such payment
or benefit is still subject to the six-month delay requirement described in Code
Section 409A(2)(b) in order for such payment or benefit to comply with the requirements
of Code Section 409A, then no such payment or benefit shall be made before the date
that is six months after the Employee’s “separation from service” (as described in Code
Section 409A) (or, if earlier, the date of the Employee’s death). Any payment or
benefit delayed by reason of the prior sentence shall be paid out or provided in a
single lump sum at the end of such required delay period in order to catch up to the
original payment schedule.
	 
	 	E.	 	TREATMENT OF EACH INSTALLMENT AS A SEPARATE PAYMENT. For purposes of
applying the provisions of Code Section 409A to this Agreement, each separately
identified amount to which the Employee is entitled under this Agreement shall be
treated as a separate payment. In addition, to the extent permissible under Code
Section 409A, any series of installment payments under this Agreement shall be treated
as a right to a series of separate payments.
	 
	 	F.	 	REIMBURSEMENTS AND IN-KIND BENEFITS. With respect to reimbursements
and in-kind benefits that may be provided under the Agreement (the “Reimbursement
Plans”), to the extent any benefits provided under the Reimbursement Plans are subject
to Section 409A, the Reimbursement Plans shall meet the following requirements:






          (i)     Reimbursement Plans shall use an objectively determinable, nondiscretionary
definition of the expenses eligible for reimbursement or of the in-kind benefits to
be provided;




          (ii)     Reimbursement Plans shall provide that the amount of expenses eligible for
reimbursement, or in-kind benefits provided, during the Employee’s taxable year may
not affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year, provided, however, that Reimbursement Plans
providing for reimbursement of expenses referred to in Code Section 105(b) shall not
fail to meet the requirement of this Section 18(G)(ii) solely because such
Reimbursement Plans provide for a limit on the
amount of expenses that may be reimbursed under such arrangements over some or
all of the period in which Reimbursement Plans remain in effect;



8









 






          (iii)     The reimbursement of an eligible expense is made on or before the last
day of the Employee’s taxable year following the taxable year in which the expense
was incurred; and




          (iv)     The right to reimbursement or in-kind benefits under the Reimbursement
Plans shall not be subject to liquidation or exchange for another benefit.




	G.	 	EMPLOYEE BENEFITS. With respect to any Employee Benefits that do not
comply with (or are not exempt from) Code Section 409A, to the extent applicable, the
Employee shall be deemed to receive from the Company a monthly payment necessary for
the Employee to purchase the benefit in question.





     IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement under seal
as of the date first above written.



	 	 	 	 	 
	 	THE GEO GROUP, INC.

 	 
	 	By:  	/s/ George C. Zoley
 	 
	 	 	Name:  	George C. Zoley 	 
	 	 	Title:  	Chairman & Chief Executive Officer 	 
	 



	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	By:  	/s/ John J. Bulfin
 	 
	 	 	Name:  	John J. Bulfin 	 
	 	 	Title:  	Sr. Vice President, General Counsel and Corporate Secretary

The GEO Group, Inc. 	 
	 




9