Document:

Exhibit 10.1

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

This
Amended and Restated Executive Employment Agreement (this “Agreement”) is made
effective February 6, 2006, by and between Duratek, Inc., a Delaware
corporation having its principal place of business at 10100 Old Columbia Road,
Columbia, Maryland 21046 (hereinafter, “Company”), and Robert E. Prince
(hereinafter, “Employee”).

 

RECITALS

 

WHEREFORE,
Company desires to continue employ Employee as President and Chief Executive
Officer, subject to the terms and provisions of this Agreement, and Employee
desires to continue such employment with Company, subject to the terms and
provisions of this Agreement.

 

AGREEMENT

 

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

 

1.                                      Term.  Unless earlier terminated as provided herein,
Company hereby agrees to employ Employee and Employee hereby accepts such
employment for a two year period commencing June 3, 2002 and ending on June 3,
2004, upon the terms and conditions hereinafter set forth.  Commencing on June 3, 2004 and each June 3rd
thereafter, the Term shall automatically be extended for one additional year,
unless this Agreement has been previously terminated pursuant to Section 8 of
this Agreement or, not later than the December 1st immediately preceding such
June 3rd anniversary, Company or Employee shall have given written notice to
the other that it does not wish to extend this Agreement.  For the purposes of this Agreement, the term
as defined in this Section, including any extension thereof, shall be the
“Term.”

 

2.                                      Duties.  During the Term, Employee shall serve as
President and Chief Executive Officer (hereinafter, “President and Chief
Executive Officer”) of Company and shall report to, and have those duties,
responsibilities, and authority assigned him from time to time by, the Board of
Directors of Company (hereinafter, the “Board”).  Employee shall have the powers and authority
consistent with such responsibilities, duties, and authority.  Employee shall devote substantially all his
working time, attention, knowledge, and skills faithfully, diligently, and to
the best of his ability, in furtherance of the business and activities of
Company.  During the Term, Employee shall
refrain from engaging in any activity which is or may be contrary to the
welfare, interests, or benefits of Company and from engaging in any activity
which is or may be competitive with the activities of Company.  The principal place or places of performance
by Employee of his duties hereunder shall be as agreed to by Employee and
Company, although Employee will be required to engage in considerable travel in
connection with the business of Company. Nothing in this Section shall preclude
Employee from engaging in charitable, professional, and community activities,
in each case as long as such activities do not interfere, conflict,

 

 

or give the appearance of conflicting in any way
with Employee’s performance under this Agreement.

 

3.                                      Salary.  In consideration for the services to be
rendered by Employee hereunder and for all rights and covenants granted herein,
Company shall pay to Employee a gross salary in the amount of $275,018 per year
(hereinafter, the “Salary”) commencing July 8, 2002.  This Salary shall be paid in equal monthly or
bi-weekly installments, in accordance with the customary payroll practices of
Company and subject to such deductions as are required by law and applicable
regulations.  This Salary may be
increased from time to time at the discretion of the Compensation Committee of
the Board.

 

4.                                      Cash Bonus.  Employee will continue to be eligible to
receive cash bonuses pursuant to the Company’s Executive Compensation Plan (the
“Executive Compensation Plan”); provided, however, that Company may not
reduce Employee’s target bonus amount (represented as a percentage of base
salary) from that in effect as of June 3, 2002 or as may be increased from time
to time.  In the event that Company
amends or terminates the Executive Compensation Plan, Company shall provide
Employee with an annual cash bonus program that will provide him with an
opportunity to realize an annual cash bonus which is not less than the target
bonus amount (represented as a percentage of base salary) that exists under the
Executive Compensation Plan at the time it is amended or terminated, which
opportunity shall be reasonably comparable to Employee’s opportunity under the
Executive Compensation Plan as of June 3, 2002.

 

5.                                      Equity Incentive Plan.  Employee will continue to be eligible to
receive equity incentives pursuant to the Executive Compensation Plan.  All awards pursuant to the Executive
Compensation Plan shall be subject to the terms and provisions of the 1999
Stock Option and Incentive Plan, or any similar plan, and any award agreement
with respect to such award.  The vesting,
exercisability and termination provisions regarding such awards shall be
subject to the terms and provisions of the 1999 Stock Option and Incentive
Plan, or other similar plan pursuant to which the award was made, and the
corresponding award agreement.

 

6.                                      Employee Benefits.   Employee shall be entitled to participate in
or receive benefits under any employee benefit plan, arrangement or perquisite
made available by Company to its executives and key management employees,
subject to and on a basis consistent with the terms, conditions and overall
administration of such plans, arrangements and perquisites.  Nothing paid to Employee under any plan,
arrangement or perquisite presently in effect or made available in the future
shall be deemed to be in lieu of the salary and bonus payable to Employee
pursuant to Sections 3, 4, and 5 hereof. 
Any payments or benefits payable to Employee hereunder in respect of any
year during which Employee is employed by Company for less than the entire such
year shall, unless otherwise provided in the applicable plan or arrangement be
prorated in accordance with the number of days in such year during which he is
so employed.

 

7.                                      Vacations.  Employee
shall be entitled to five weeks’ vacation (personal time benefit) in each
calendar year, or such greater amount of vacation as may be determined in
accordance with Company’s vacation policy as in effect on June 3, 2002.  Employee shall also be entitled to all paid
holidays and personal days given by Company to its executives.

 

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8.                                      Termination.  Notwithstanding the provisions of Section 1
hereof, Employee’s employment with Company may be earlier terminated by either
party at any time, subject to the following restrictions (except that
termination due to death or disability of Employee shall be governed by Section
9 below):

 

(a) at any time during the Term, Company may
terminate this Agreement for Cause upon written notice to Employee.  For purposes hereof, “Cause” shall be defined
as: (i) Employee’s willful material misconduct or neglect in the performance of
his duties as determined by the Board; (ii) Employee’s conviction by a court of
competent jurisdiction of any felony, offense punishable by imprisonment in a
state or federal penitentiary, or any offense, civil or criminal, involving
fraud, moral turpitude or immoral conduct; (iii) Employee’s use of illegal
drugs or abusive use of prescription drugs as determined by a licensed
physician or physicians designated by Company to examine Employee; or (iv)
Employee’s willful material breach of this Agreement as determined by the
Board, which breach is not cured within thirty (30) days after Employee’s
receipt of written notice from Company specifying such breach and demanding a
cure thereof;

 

(b) at any time during the Term and upon six (6)
months prior written notice to Company, Employee may terminate this Agreement
for “Good Reason.”  For the purposes of
this Agreement, “Good Reason” shall mean (i) Company’s failure to perform or
observe any of the material terms or provisions of this Agreement and continued
failure of Company to cure such default within thirty (30) days after written
demand for performance has been given to Company by Employee, which demand
shall describe specifically the nature of such alleged failure to perform or
observe such material terms or provisions, (ii) a material reduction in the
scope of Employee’s duties, authority, responsibilities or title as in effect
immediately prior to such reduction; (iii) Company’s assignment to Employee of
duties which are inconsistent with Employee’s position as President and Chief
Executive Officer; (iv) a reduction by Company in Employee’s base salary or in
any other benefits made available to other senior executives of Company; (v)
Employee’s relocation to a facility or a location more than fifty (50) miles
from the then present location without Employee’s prior written consent; (vi)
removal of Employee as a director of Company or failure of Employee to be
re-elected as a director of Company, and in the case of subsections 8(b)(i),
(ii), (iii), (iv), (v), and (vi), the failure of Company to cure the same
within thirty (30) days after receipt of written notice thereof from Employee;
or (vii) a Change of Control (as defined in Section 14);

 

(c)  at
any time during the Term and upon six (6) months prior written notice to
Employee, Company may terminate this Agreement for any reason other than Cause,
and at any time during the Term and upon six (6) months prior written notice to
Company, Employee may terminate this Agreement for any reason other than Good
Reason;

 

(d) upon termination of this Agreement by
Company for Cause or by Employee for any reason other than Good Reason,
Employee shall be entitled only to his Salary up to the date of the termination
of this Agreement, and Company shall have no further obligation or duties to
Employee, and Employee shall have no further obligation or duties to Company
except as provided in Sections 10, 11, and 12;

 

3

 

(e) upon termination of this Agreement by
Company for any reason other than Cause or by Employee for Good Reason, Company shall pay the Employee in a
single lump sum within ten (10) days of the termination an amount equal to two
(2) times the sum of (i) his annual Salary and (ii) the product of: (x) his
annual Salary and (y) the highest bonus award percentage applicable to the
Employee during the three years preceding the year in which the termination
takes place.  To the extent the Company
gives less than six (6) months notice (other than in the case of a termination
for Cause), the Company shall pay the Employee his or her Salary for the amount
of time by which the actual notice given is less than six (6) months.  Company shall provide Employee with benefits
comparable to those Employee received pursuant to Sections 6 and 7,
immediately prior to the effective date of termination through the
twenty-fourth full month following the effective date of termination
(hereinafter, the “Severance Period”),
and Employee shall have no further obligations or duties to Company, except as
provided in Sections 10, 11, and 12. 
Company shall have no further obligation or duties to Employee other
than as set forth in this Section 8(e). 
Employee’s entitlement to amounts owing pursuant to this Agreement shall
not be dependent upon Employee’s efforts to “mitigate” loss or to find other
employment, nor shall the amounts owing pursuant to this Agreement be subject
to offset by compensation earned from a subsequent employer.  Notwithstanding anything in this Section 8(e)
to the contrary, this Section 8(e) shall not apply to a termination of the
Employee’s employment that occurs within twelve (12) months after a Change of
Control.

 

9.                                      Disability and Death.  (a) If during the Term Employee shall become
unable to perform his duties or carry out his responsibilities by reason of
illness or injury, Company shall continue to pay or provide to Employee Salary
continuation under the terms of the disability insurance coverage for officers
of Company.  If, however, the disability
continues for an uninterrupted period exceeding six calendar months, Company,
at its election, may terminate this Agreement with no further obligations by
Company.  Employee shall be entitled to
any benefit for which Employee qualifies under any long-term disability plan of
Company.  The inability of Employee to
perform his duties and carry out his responsibility because of illness or
injury shall be determined by a qualified physician or physicians designated by
Company to examine Employee. To the extent physically and mentally capable,
Employee shall furnish information and assistance to Company and shall be
available to Company to undertake reasonable assignments consistent with the
dignity, importance, and scope of Employee’s prior position and current
physical and mental health.

 

(b)
If during the Term Employee shall die, this Agreement shall terminate
automatically.  In this event, Company
shall pay to Employee’s estate or to his beneficiaries, Employee’s Salary up to
the date of death.  Company shall have no
further obligation or duties to Employee’s estate or to his beneficiaries.

 

10.                               Restrictive Covenants.

 

(a)                                  Confidentiality. 
During the Term and
continuing subsequent to any termination or expiration of this Agreement,
Employee shall maintain Information, as defined in Section 10(a)(i) below, as
secret and confidential unless Employee is required to disclose Information
pursuant to the terms of a valid and effective order issued by a court of
competent jurisdiction or a governmental authority.  Employee shall use

 

4

 

Information solely for
the purpose of carrying out those duties assigned him as an employee of Company
and not otherwise.  The disclosure of
Information to Employee shall not be construed as granting to Employee any license
under any copyright, trade secret or any right of ownership or right to use the
information whatsoever.

 

(i)                                     For
the purposes of this Section 10, “Information” shall mean information related
to Company’s business.  Such information
shall include, but shall not be limited to: (w) any financial, business,
planning, operations, services, potential services, products, potential
products, technical information, intellectual property, trade secrets and/or
know-how, formulas, production, purchasing, marketing, sales, personnel,
customer, supplier, or other information of Company; (x) any papers, data,
records, processes, methods, techniques, systems, models, samples, devices,
equipment, compilations, invoices, customer lists, or documents of Company;
(y) any confidential information or trade secrets of any third party
provided to Company in confidence or subject to other use or disclosure
restrictions or limitations; and (z) any other information, written, oral
or electronic, whether existing now or at some time in the future, whether
pertaining to current or future developments, and whether accessed prior to
Employee’s tenure with Company or to be accessed during his future employment
or association with Company, which pertains to Company’s affairs or interests
or with whom or how Company does business. 
Company acknowledges and agrees that Confidential Information shall not
include information which is or becomes publicly available other than as a
result of a disclosure by Employee.

 

(ii)                                  Employee
shall promptly notify Company if he has reason to believe that the unauthorized
use, possession, or disclosure of any Information has occurred or may occur.

 

(iii)                               All
physical items containing Information, including, without limitation, the
business plan, know-how, collection methods and procedures, advertising
techniques, marketing plans and methods, sales techniques, documentation,
contracts, reports, letters, notes, any computer media, customer lists and all
other information and materials of Company’s business and operations, shall
remain the exclusive and confidential property of Company and shall be
returned, along with any copies or notes of Employee made thereof or therefrom,
to Company when Employee ceases his employment with Company.

 

(b)                                 Non-Competition. 
Employee hereby
covenants and agrees that at no time during Employee’s employment with Company
and for a period of one year immediately following termination of Employee’s
employment with Company, whether voluntary or involuntary, shall Employee (i)
develop, own, manage, operate, or otherwise engage in, participate in,
represent in any way or be connected with, as officer, director, partner,
owner, employee, agent, independent contractor, consultant, proprietor,
stockholder (except for the ownership of a less than 5% stock interest in a publicly
traded company), or otherwise, any business or activity competing with Company
or its affiliates within the United States; (ii) act in any way, directly or
indirectly, with the purpose or effect of soliciting, diverting or taking away
any business, customer, client or any supplier of Company; or (iii) otherwise
compete with Company in the sale or licensing, directly or indirectly, as
principal, agent or otherwise, of any products competitive with the products,
or services competitive with the services, developed or marketed by Company
within the

 

5

 

United States.  Employee acknowledges that he will provide
unique services to Company and that this covenant has unique, substantial, and
immeasurable value to Company.

 

(c)                                  Non-solicitation or hiring of employees.  Employee
hereby covenants and agrees that at no time during Employee’s employment with
Company and for a period of one year immediately following termination of
Employee’s employment with Company, whether voluntary or involuntary, will
Employee act in any way with the purpose or effect of (i) hiring any of the
employees of Company, its divisions or subsidiaries or (ii) soliciting,
recruiting or encouraging, directly or indirectly, any of Company’s employees
to leave the employ of Company, its divisions or its subsidiaries.

 

11.                               Discoveries, Inventions, Trade Secrets, Trade
Names, Copyrights, and Patents.  As part of the rights granted herein to
Company, Employee agrees that all right, title and interest of any kind and
nature whatsoever in and to any inventions, product, know-how, trade secrets,
patents, trademarks, methods, procedures, copyrights, seminars, discoveries,
improvements, ideas, creations, and other technical properties, whether or not
patentable or subject to rights of copyright and/or trademark, which are
conceived or made by Employee during the Term, and which are related to any of
the business and/or activities of Company and any other
lines of business which Company subsequently pursues in any form to include but
not be limited to a strategic plan, research, feasibility studies, development,
manufacturing, and customer contact (including but not limited to intellectual
property, know-how, trade secrets, and patents in process or granted) or the
performance by Employee of his services hereunder, shall be and become the sole
and exclusive property of Company for all purposes.  Employee shall promptly disclose to Company
any such conception or other work product of the type as is generally described
in the immediately preceding sentence. 
Employee agrees to execute any and all applications, assignments and
other written instruments that Company may deem necessary and appropriate to
confirm the title and interest of Company therein and thereto.  The obligations of Employee under this
Section 11 shall be binding upon his assignees, employers, other corporate or
research affiliates, executors, administrators and heirs.  The grant, transfer and assignment to Company
by Employee of rights to intellectual properties shall remain effective for
such periods of time as applicable law may permit with respect to the ownership
of any such intellectual property or materials.

 

12.                               Enforcement.
Employee understands and agrees that he will provide unique services to Company
and that the restrictions contained in Sections 10 and 11 of this Agreement are
reasonable, fair, and equitable in scope, terms, and duration, are necessary to
protect the legitimate business interests, trade secrets, and good will of Company,
and are a material inducement to Company to enter into this Agreement, and that
any breach or threatened breach of the restrictions stated in Sections 10 and
11 would cause Company substantial and irreparable harm for which there is no
adequate remedy at law.  Therefore,
Employee agrees and consents to the issuance of injunctive relief in favor of
Company by any court of competent jurisdiction, where, in Company’s sole
discretion, Company has acted upon reasonable information concerning a breach
or potential breach of this Agreement, to enjoin the breach of any of the
covenants of Employee contained in Sections 10 and 11 of this Agreement.  Nothing contained in this Section shall
invalidate or waive any other rights or remedies which Company may have at law
or in equity.

 

6

 

13.                               Indemnification; Directors’ and Officers’ Insurance.

 

(a)                                  While
Employee is employed by Company pursuant to this Agreement, Company covenants
that it will not repeal or modify any right to indemnification or limitation of
liability under Company’s Amended and Restated Certificate of Incorporation,
By-Laws, or otherwise so as to adversely affect any right or protection of a
director or officer of Company existing at the time of such repeal or
modification.

 

(b)                                 Company
agrees to provide to Employee and keep current at all times during Employee’s
employment, at its expense, director’s and officer’s liability insurance, with
Employee named as the beneficiary, with such coverage limits as are determined
in the reasonable discretion of the Board.

 

14.                               Change of Control.  Notwithstanding any other provisions of this
Agreement, Company agrees that in the event a Change of Control (as hereinafter
defined) occurs and Employee leaves the employment of Company and the combined
entity for whatever reason (other than (i) termination for Cause,
(ii) death, (iii) permanent disability as described in Section 9
hereof or (iv) by Employee for any reason other than Good Reason):

 

(a)  If the termination occurs within
twelve months after a Change of Control, Company shall pay the Employee in a
single lump sum within ten (10) days of the termination an amount equal to two
(2) times the sum of (i) his annual Salary and (ii) the product of: (x) his
annual Salary and (y) the highest bonus award percentage applicable to the
Employee during the three years preceding the year in which the termination
takes place.  The six (6) month notice
requirement prior to the effective date of termination pursuant to Sections 8(b)
and 8(c) shall continue to be applicable following a Change of Control.  To the extent the Company gives less than six
(6) months notice (other than in the case of a termination for Cause), the
Company shall pay the Employee his or her Salary for the amount of time by
which the actual notice given is less than six (6) months.

 

(b)  To the extent eligible, Employee
shall continue to be covered by all noncash benefit plans of Company
(including, but not limited to, the medical and dental plans and the special
disability policy for officers), except for the retirement plans or retirement
programs in which Employee participates or any successor plans or programs in
effect on the date of a Change of Control, for 24 months thereafter;
provided, however, that if during such time period Employee should enter into
the employment of a competitor of Company, participation in such noncash
benefit plans would cease. In the event Employee is ineligible under the terms
of such plans to continue to be so covered, Company shall use its best efforts
to provide substantially equivalent coverage through other sources. If Company
is unable to provide substantially equivalent coverage through other sources,
then Company shall pay in cash to Employee the amount Company would have had to
expend to provide such coverage assuming standard risk.

 

7

 

(c)  Employee’s payments received
hereunder shall be considered severance pay in consideration of past service,
and pay in consideration of continued service from June 3, 2002 and entitlement
thereto shall not be governed by any duty to mitigate damages by seeking
further employment nor offset by any compensation which may be received from
future employment.

 

(d)  The specific arrangements referred
to above are not intended to exclude Employee’s participation in other benefits
available to executive personnel generally or to preclude other compensation or
benefits as may be authorized by the Board of Directors of the Company from
time to time, or as a result of the Change of Control.

 

(e)  This Section shall be binding
upon and shall inure to the benefit of the respective successors, assigns,
legal representatives and heirs to the parties hereto.

 

(f)                                    For the purpose of this Agreement, a
“Change of Control” shall mean: a merger, consolidation, or reorganization of
Company with one or more other entities in which Company is not the surviving
entity, a sale of substantially all of the assets of Company to another entity,
or any transaction (including, without limitation, a merger or reorganization
in which Company is the surviving entity) that results in any person or entity
(or persons or entities acting as a group or otherwise in concert) becoming the
beneficial owner of fifty percent (50%) or more of the combined voting power of
all classes of securities of Company or obtaining (through stock ownership,
proxies, or otherwise) the right to elect a majority of the Board of Directors
of the Company.

 

15.                               Gross Up Payments 
If the payment provided
under this Agreement (the “Contract Payment”) is subject to the tax (the
“Excise Tax”) imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (“Code”), Company shall pay Employee on or before the fifth day
following the date of termination, an additional amount (the “Gross-Up
Payment”) such that the net amount retained by Employee, after deduction of any
Excise Tax on the Contract Payment and such other Total Payments (as defined
below) and any federal and state and local income tax and Excise Tax upon the
payment provided for by this Section, shall be equal to the Contract Payment
and such other Total Payments.  For
purposes of determining whether any of the payments will be subject to the
Excise Tax and the amount of such Excise Tax, (i) any other payments or
benefits received or to be received by Employee in connection with a Change of
Control of Company or Employee’s termination of employment, whether payable
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement with Company, its successors, any person whose actions result in a
Change of Control of Company or any corporation affiliated (or which, as a
result of the completion of a transaction causing a Change of Control, will
become affiliated) with Company within the meaning of Section 1504 of the Code
(together with the Contract Payment, the “Total Payments”) shall be treated as
“parachute payments” within the meaning of Section 280G(b)(2) of the Code, and
all “excess parachute payments” within the meaning of Section 280G(b)(1) shall
be treated as subject to the Excise Tax, unless in the opinion of tax counsel
selected by Company and acceptable to Employee, whose acceptance shall not be
unreasonably withheld, the Total Payments (in whole or in part) do not constitute
parachute payments, or such excess parachute payments (in whole or in part)
represent reasonable compensation for services actually rendered within the
meaning of Section 280G(b)(4) of the Code either in their entirety or in

 

8

 

excess of the base amount within the meaning of
Section 280G(b)(3) of the Code, or are otherwise not subject to the Excise Tax,
(ii) the amount of the Total Payments that shall be treated as subject to the
Excise Tax shall be equal to the lesser of (A) the total amount of the Total
Payments or (B) the amount of excess parachute payments within the meaning of
Section 280G(b)(1) (after applying clause (i), above), and (iii) the value of
any non-cash benefits or any deferred payment or benefit shall be determined by
Company’s independent auditors in accordance with the principles of Sections
280G(b)(3) and (4) of the Code.  For
purposes of determining the amount of the Gross-Up Payment, Employee shall be
deemed to pay federal income taxes at the highest marginal rate of federal
income taxation in the calendar year in which the Gross-Up Payment is to be
made and state and local income taxes at the highest marginal rate of taxation
in the state and locality of Employee’s residence on the date of termination,
net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes. 
In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time of termination of
Employee’s employment, Employee shall repay to Company at the time that the
amount of such reduction in Excise Tax is finally determined the portion of the
Gross-Up Payment attributable to such reduction (plus the portion of the
Gross-Up Payment attributable to the Excise Tax and federal and state and local
income tax imposed on the Gross-Up Payment being repaid by Employee if such
repayment results in a reduction in Excise Tax and/or a federal state and local
income tax deduction) plus interest on the amount of such repayment at the rate
provided in Section 1274(d) of the Code. 
In the event that the Excise Tax is determined to exceed the amount
taken into account hereunder at the time of the termination of Employee’s employment
(including by reason of any payment the existence or amount of which cannot be
determined at the time of the Gross-Up Payment), Company shall make an
additional Gross-Up Payment in respect of such excess (plus any interest
payable with respect to such excess) at the time that the amount of such excess
is finally determined.

 

16.                               Survivability.  The provisions of Sections 10, 11 and 12 of
this Agreement shall survive its termination.

 

17.                               Section Titles.  The titles of the Sections of this Agreement are
for convenience only and shall not affect the interpretation of any Section
hereof.

 

18.                               Waiver.  A waiver by either party hereto of any of the
terms or conditions of this Agreement in any instance shall not be deemed or
construed to be a waiver of such term or condition for the future, or of any
subsequent breach thereof.  All remedies,
rights, undertakings, obligations and agreements contained in this Agreement
shall be cumulative and none of them shall be in limitation of any other
remedy, right, undertaking, obligation or agreement of either party hereto.

 

19.                               Severability.  The rights and restrictions in this Agreement may be
exercised and are applicable only to the extent that they do not violate
applicable laws, and are intended to be limited to the extent necessary so that
they will not render this Agreement illegal, invalid, or unenforceable.  If any provision of this Agreement shall be
deemed to be invalid or unenforceable, then that provision shall be modified to
make it enforceable to the maximum extent possible, and the remaining
provisions of this Agreement shall not be affected thereby and shall remain in
full force and effect.

 

9

 

20.                               Assignment.  This Agreement requires the personal services
of Employee only, and Employee shall not be entitled to assign any portion of
his duties or obligations hereunder.

 

21.                               Notices.  For the purposes of this Agreement,
notices, demands and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when delivered
or (unless otherwise specified) mailed by United States certified or registered
mail, return receipt requested, postage prepaid, addressed as follows:

 

	
  If
  to Employee:

  	
  Robert
  E. Prince

  
	
   

  	
  3825
  Island Path

  
	
   

  	
  Louisville,
  TN 37777

  
	
   

  	
   

  
	
   

  	
   

  
	
  If
  to Company:

  	
  Duratek,
  Inc.

  
	
   

  	
  10100
  Old Columbia Road

  
	
   

  	
  Columbia,
  Maryland 21046

  

 

22.                               Governing Law.  This Agreement has been made and executed in
the State of Maryland and shall be governed by the laws of Maryland applicable
to contracts fully to be performed therein.

 

23.                               Waiver of Jury Trial.  THE PARTIES HERETO HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE
SUBJECT MATTER OF THIS TRANSACTION.  THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
AGREEMENT.  EACH OF THE PARTIES HERETO
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
SUPPLEMENTS OR MODIFICATIONS TO (OR ASSIGNMENTS OF) THIS AGREEMENT.  IN THE EVENT OF LITIGATION, THIS AGREEMENT
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL (WITHOUT A JURY) BY THE COURT.

 

24.                               Entire Agreement.  This Agreement constitutes the entire
agreement of the parties and supersedes any and all previous agreements between
the Parties, including the employment agreements between Company and Employee
dated January 24, 1995 and June 3, 2002 (the “Prior Agreements”).  Upon the execution by the parties of this
Agreement, the Prior Agreements shall be terminated and of no further force and
effect.  This Agreement may not be
modified orally, but only by an agreement in writing supplied

 

10

 

by the party against whom enforcement of any
waiver, change, modification, extension, or discharge is sought.

 

25.                               Counterparts.                    This
Agreement may be executed in one or more counterparts, each of which shall
deemed to be an original but all of which together will constitute one and the
same instrument.

 

26.                               Section 409A.                   Notwithstanding
anything in this Agreement to the contrary, if any amount payable to the
Employee under this Agreement is deferred compensation subject to Internal
Revenue Code Section 409A and the regulations promulgated thereunder (“Section
409A”) and if the Employee is a “specified employee” within the meaning of
Section 409A, payment of such amount shall be made as follows:  Any amount that is scheduled to be paid for
the period which begins on the Employee’s separation from service, as defined
in Section 409A, and ends on the date six months from the Employee’s separation
from service, shall not be paid as scheduled, but shall be accumulated and paid
in a lump sum on the date six months after the Employee’s separation from
service.

 

27.                               Miscellaneous.  The parties agree to execute all other such
documents as may be required to effectuate or more readily carry out the
provisions hereof.

 

IN
WITNESS WHEREOF, Employee and Company have executed this Agreement.

 

	
  COMPANY:

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
  DURATEK, INC.

  	
  Robert E. Prince

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/  Robert F. Shawver

  	
   

  	
  /s/  Robert E. Prince

  	
   

  
	
   

  	
   

  
	
  Name: Robert F. Shawver

  	
   

  
	
   

  	
   

  
	
  Title: Executive VP/CFO

  	
   

  
	
   

  	
   

  
	
  Date: February 6, 2006

  	
  Date: February 6, 2006

  
						

 

11Exhibit 10.2

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

This
Amended and Restated Executive Employment Agreement (this “Agreement”) is made
effective February 6, 2006, by and between Duratek, Inc., a Delaware
corporation having its principal place of business at 10100 Old Columbia
Road, Columbia, Maryland 21046 (hereinafter, “Company”), and Robert F. Shawver
(hereinafter, “Employee”).

 

RECITALS

 

WHEREFORE, Company desires to continue to employ Employee as Executive Vice
President and Chief Financial Officer, subject to the terms and provisions of
this Agreement, and Employee desires to continue such employment with Company,
subject to the terms and provisions of this Agreement.

 

AGREEMENT

 

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

 

1.                                      Term.  Unless
earlier terminated as provided herein, Company hereby agrees to employ Employee
and Employee hereby accepts such employment for a two year period commencing
June 3, 2002 and ending on June 3, 2004, upon the terms and
conditions hereinafter set forth. Commencing on June 3, 2004 and each
June 3rd thereafter, the Term shall automatically be extended for one
additional year, unless this Agreement has been previously terminated pursuant
to Section 8 of this Agreement or, not later than the December 1st
immediately preceding such June 3rd anniversary, Company or Employee shall
have given written notice to the other that it does not wish to extend this
Agreement. For the purposes of this Agreement, the term as defined in this
Section, including any extension thereof, shall be the “Term.”

 

2.                                      Duties.  During the Term, Employee shall serve as Executive Vice President and
Chief Financial Officer (hereinafter, “Executive Vice President and Chief
Financial Officer”) of Company and shall report to, and have those duties,
responsibilities, and authority assigned him from time to time by, the Chief
Executive Officer of Company (hereinafter, the “CEO”). Employee shall have the
powers and authority consistent with such responsibilities, duties, and
authority. Employee shall devote substantially all his working time, attention,
knowledge, and skills faithfully, diligently, and to the best of his ability,
in furtherance of the business and activities of Company. During the Term,
Employee shall refrain from engaging in any activity which is or may be
contrary to the welfare, interests, or benefits of Company and from engaging in
any activity which is or may be competitive with the activities of Company. The
principal place of performance by Employee of his duties hereunder shall be
Company’s principal executive offices in Columbia, Maryland or such other
location as agreed to by Employee and Company, although Employee may be
required to travel outside of the area where Company’s principal executive
offices are located in connection with the business of Company, to an extent
substantially consistent with Employee’s present business travel obligations.
Nothing in this Section shall preclude Employee from engaging in charitable,
professional,

 

 

and
community activities, in each case as long as such activities do not interfere,
conflict, or give the appearance of conflicting in any way with Employee’s
performance under this Agreement.

 

3.                                      Salary.  In
consideration for the services to be rendered by Employee hereunder and for all
rights and covenants granted herein, Company shall pay to Employee a gross
salary in the amount of $192,005.00 per year (hereinafter, the “Salary”)
commencing July 8, 2002. This Salary shall be paid in equal monthly or
bi-weekly installments, in accordance with the customary payroll practices of
Company and subject to such deductions as are required by law and applicable
regulations. This Salary may be increased from time to time at the discretion
of the Compensation Committee of the Board of Directors of the Company.

 

4.                                      Cash Bonus.  Employee
will continue to be eligible to receive cash bonuses pursuant to the Company’s
Executive Compensation Plan (the “Executive Compensation Plan”); provided, however, that Company may not
reduce Employee’s target bonus amount (represented as a percentage of base
salary) from that in effect as of June 3, 2002 or as may be increased from time
to time. In the event that Company amends or terminates the Executive
Compensation Plan, Company shall provide Employee with an annual cash bonus
program that will provide him with an opportunity to realize an annual cash bonus
which is not less than the target bonus amount (represented as a percentage of
base salary) that exists under the Executive Compensation Plan at the time it
is amended or terminated, which opportunity shall be reasonably comparable to
Employee’s opportunity under the Executive Compensation Plan as of June 3,
2002.

 

5.                                      Equity Incentive Plan.  Employee
will continue to be eligible to receive equity incentives pursuant to the
Executive Compensation Plan. All awards pursuant to the Executive Compensation
Plan shall be subject to the terms and provisions of the 1999 Stock Option and
Incentive Plan, or any similar plan, and any award agreement with respect to
such award. The vesting, exercisability and termination provisions regarding
such awards shall be subject to the terms and provisions of the 1999 Stock
Option and Incentive Plan, or other similar plan pursuant to which the award
was made, and the corresponding award agreement.

 

6.                                      Employee Benefits.  Employee
shall be entitled to participate in or receive benefits under any employee
benefit plan, arrangement or perquisite made available by Company to its
executives and key management employees, subject to and on a basis consistent
with the terms, conditions and overall administration of such plans, arrangements
and perquisites. Nothing paid to Employee under any plan, arrangement or
perquisite presently in effect or made available in the future shall be deemed
to be in lieu of the salary and bonus payable to Employee pursuant to
Sections 3, 4, and 5 hereof. Any payments or benefits payable to Employee
hereunder in respect of any year during which Employee is employed by Company
for less than the entire such year shall, unless otherwise provided in the
applicable plan or arrangement be prorated in accordance with the number of
days in such year during which he is so employed.

 

7.                                      Vacations.  Employee
shall be entitled to five weeks’ vacation (personal time benefit) in each
calendar year, or such greater amount of vacation as may be

 

2

 

determined in accordance
with Company’s vacation policy as in effect on June 3, 2002. Employee shall
also be entitled to all paid holidays and personal days given by Company to its
executives.

 

8.                                      Termination.  Notwithstanding
the provisions of Section 1 hereof, Employee’s employment with Company may
be earlier terminated by either party at any time, subject to the following
restrictions (except that termination due to death or disability of Employee
shall be governed by Section 9 below):

 

(a)  at any time during the Term, Company may terminate this
Agreement for Cause upon written notice to Employee. For purposes hereof,
“Cause” shall be defined as: (i) Employee’s willful material misconduct or
neglect in the performance of his duties as determined by the CEO;
(ii) Employee’s conviction by a court of competent jurisdiction of any
felony, offense punishable by imprisonment in a state or federal penitentiary,
or any offense, civil or criminal, involving fraud, moral turpitude or immoral
conduct; (iii) Employee’s use of illegal drugs or abusive use of
prescription drugs as determined by a licensed physician or physicians
designated by Company to examine Employee; or (iv) Employee’s willful
material breach of this Agreement as determined by the CEO, which breach is not
cured within thirty (30) days after Employee’s receipt of written notice
from Company specifying such breach and demanding a cure thereof;

 

(b)  at any time during the Term and upon six (6) months
prior written notice to Company, Employee may terminate this Agreement for
“Good Reason.” For the purposes of this Agreement, “Good Reason” shall mean
(i) Company’s failure to perform or observe any of the material terms or
provisions of this Agreement and continued failure of Company to cure such
default within thirty (30) days after written demand for performance has
been given to Company by Employee, which demand shall describe specifically the
nature of such alleged failure to perform or observe such material terms or provisions,
(ii) a material reduction in the scope of Employee’s duties, authority,
responsibilities or title as in effect immediately prior to such reduction;
(iii) Company’s assignment to Employee of duties which are inconsistent
with Employee’s position as Executive Vice President and Chief Financial
Officer; (iv) a reduction by Company in Employee’s base salary or in any
other benefits made available to other senior executives of Company;  (v) Employee’s relocation to a facility
or a location more than fifty (50) miles from the then present location
without Employee’s prior written consent, and in the case of subsections
8(b)(i), (ii), (iii), (iv) and (v), the failure of Company to cure the same
within thirty (30) days after receipt of written notice thereof from Employee;
or (vi) a Change of Control (as defined in Section 14);

 

(c)  at any time during the Term and upon six (6) months
prior written notice to Employee, Company may terminate this Agreement for any
reason other than Cause, and at any time during the Term and upon six
(6) months prior written notice to Company, Employee may terminate this
Agreement for any reason other than Good Reason;

 

3

 

(d)  upon termination of this Agreement by Company for Cause
or by Employee for any reason other than Good Reason, Employee shall be
entitled only to his Salary up to the date of the termination of this
Agreement, and Company shall have no further obligation or duties to Employee,
and Employee shall have no further obligation or duties to Company except as
provided in Sections 10, 11, and 12;

 

(e)  upon termination of this Agreement by Company for
any reason other than Cause or by Employee for Good Reason, Company shall pay the Employee in a single
lump sum within ten (10) days of the termination an amount equal to two (2)
times the sum of (i) his annual Salary and (ii) the product of: (x) his annual
Salary and (y) the highest bonus award percentage applicable to the Employee
during the three years preceding the year in which the termination takes
place.  To the extent the Company gives
less than six (6) months notice (other than in the case of a termination for
Cause), the Company shall pay the Employee his or her Salary for the amount of
time by which the actual notice given is less than six (6) months.  Company shall provide Employee with benefits
comparable to those Employee received pursuant to Sections 6 and 7,
immediately prior to the effective date of termination through the
twenty-fourth full month following the effective date of termination
(hereinafter, the “Severance Period”), and Employee shall have no further
obligations or duties to Company, except as provided in Sections 10, 11,
and 12. Company shall have no further obligation or duties to Employee other
than as set forth in this Section 8(e). Employee’s entitlement to amounts
owing pursuant to this Agreement shall not be dependent upon Employee’s efforts
to “mitigate” loss or to find other employment, nor shall the amounts owing
pursuant to this Agreement be subject to offset by compensation earned from a
subsequent employer.  Notwithstanding
anything in this Section 8(e) to the contrary, this Section 8(e) shall not
apply to a termination of the Employee’s employment that occurs within twelve
(12) months after a Change of Control.

 

9.                                      Disability and Death.  (a) If
during the Term Employee shall become unable to perform his duties or carry out
his responsibilities by reason of illness or injury, Company shall continue to
pay or provide to Employee Salary continuation under the terms of the
disability insurance coverage for officers of Company. If, however, the
disability continues for an uninterrupted period exceeding six calendar months,
Company, at its election, may terminate this Agreement with no further obligations
by Company. Employee shall be entitled to any benefit for which Employee
qualifies under any long-term disability plan of Company. The inability of
Employee to perform his duties and carry out his responsibility because of
illness or injury shall be determined by a qualified physician or physicians
designated by Company to examine Employee. To the extent physically and
mentally capable, Employee shall furnish information and assistance to Company
and shall be available to Company to undertake reasonable assignments
consistent with the dignity, importance, and scope of Employee’s prior position
and current physical and mental health.

 

(b)  If
during the Term Employee shall die, this Agreement shall terminate
automatically. In this event, Company shall pay to Employee’s estate or to his
beneficiaries, Employee’s Salary up to the date of death. Company shall have no
further obligation or duties to Employee’s estate or to his beneficiaries.

 

4

 

10.                               Restrictive Covenants.

 

(a)                                  Confidentiality.  During
the Term and continuing subsequent to any termination or expiration of this
Agreement, Employee shall maintain Information, as defined in
Section 10(a)(i) below, as secret and confidential unless Employee is
required to disclose Information pursuant to the terms of a valid and effective
order issued by a court of competent jurisdiction or a governmental authority.
Employee shall use Information solely for the purpose of carrying out those
duties assigned him as an employee of Company and not otherwise. The disclosure
of Information to Employee shall not be construed as granting to Employee any
license under any copyright, trade secret or any right of ownership or right to
use the information whatsoever.

 

  (i)  For the purposes of this Section 10,
“Information” shall mean information related to Company’s business. Such
information shall include, but shall not be limited to: (w) any financial,
business, planning, operations, services, potential services, products, potential
products, technical information, intellectual property, trade secrets and/or
know-how, formulas, production, purchasing, marketing, sales, personnel,
customer, supplier, or other information of Company; (x) any papers, data,
records, processes, methods, techniques, systems, models, samples, devices,
equipment, compilations, invoices, customer lists, or documents of Company;
(y) any confidential information or trade secrets of any third party
provided to Company in confidence or subject to other use or disclosure
restrictions or limitations; and (z) any other information, written, oral
or electronic, whether existing now or at some time in the future, whether
pertaining to current or future developments, and whether accessed prior to
Employee’s tenure with Company or to be accessed during his future employment
or association with Company, which pertains to Company’s affairs or interests
or with whom or how Company does business. Company acknowledges and agrees that
Confidential Information shall not include information which is or becomes
publicly available other than as a result of a disclosure by Employee.

 

(ii)  Employee shall promptly notify Company if he has reason
to believe that the unauthorized use, possession, or disclosure of any
Information has occurred or may occur.

 

(iii)  All physical items containing Information, including,
without limitation, the business plan, know-how, collection methods and
procedures, advertising techniques, marketing plans and methods, sales
techniques, documentation, contracts, reports, letters, notes, any computer
media, customer lists and all other information and materials of Company’s
business and operations, shall remain the exclusive and confidential property
of Company and shall be returned, along with any copies or notes of Employee
made thereof or therefrom, to Company when Employee ceases his employment with
Company.

 

5

 

(b)                                 Non-Competition.  Employee
hereby covenants and agrees that at no time during Employee’s employment with
Company and for a period of one year immediately following termination of
Employee’s employment with Company, whether voluntary or involuntary, shall
Employee (i) develop, own, manage, operate, or otherwise engage in,
participate in, represent in any way or be connected with, as officer,
director, partner, owner, employee, agent, independent contractor, consultant,
proprietor, stockholder (except for the ownership of a less than 5% stock
interest in a publicly traded company), or otherwise, any business or activity
competing with Company or its affiliates within the United States;
(ii) act in any way, directly or indirectly, with the purpose or effect of
soliciting, diverting or taking away any business, customer, client or any
supplier of Company; or (iii) otherwise compete with Company in the sale
or licensing, directly or indirectly, as principal, agent or otherwise, of any
products competitive with the products, or services competitive with the
services, developed or marketed by Company within the United States. Employee
acknowledges that he will provide unique services to Company and that this
covenant has unique, substantial, and immeasurable value to Company.

 

(c)                                  Non-solicitation or hiring
of employees.  Employee hereby covenants and agrees that at
no time during Employee’s employment with Company and for a period of one year
immediately following termination of Employee’s employment with Company,
whether voluntary or involuntary, will Employee act in any way with the purpose
or effect of (i) hiring any of the employees of Company, its divisions or
subsidiaries or (ii) soliciting, recruiting or encouraging, directly or
indirectly, any of Company’s employees to leave the employ of Company, its
divisions or its subsidiaries.

 

11.                               Discoveries, Inventions,
Trade Secrets, Trade Names, Copyrights, and Patents.  As
part of the rights granted herein to Company, Employee agrees that all right,
title and interest of any kind and nature whatsoever in and to any inventions,
product, know-how, trade secrets, patents, trademarks, methods, procedures,
copyrights, seminars, discoveries, improvements, ideas, creations, and other
technical properties, whether or not patentable or subject to rights of
copyright and/or trademark, which are conceived or made by Employee during the
Term, and which are related to any of the business and/or activities of Company
and any other lines of business which Company subsequently pursues in any form
to include but not be limited to a strategic plan, research, feasibility studies,
development, manufacturing, and customer contact (including but not limited to
intellectual property, know-how, trade secrets, and patents in process or
granted) or the performance by Employee of his services hereunder, shall be and
become the sole and exclusive property of Company for all purposes. Employee
shall promptly disclose to Company any such conception or other work product of
the type as is generally described in the immediately preceding sentence.
Employee agrees to execute any and all applications, assignments and other
written instruments that Company may deem necessary and appropriate to confirm
the title and interest of Company therein and thereto. The obligations of
Employee under this Section 11 shall be binding upon his assignees, employers,
other corporate or research affiliates, executors, administrators and heirs.
The grant, transfer and assignment to Company by Employee of rights to
intellectual properties

 

6

 

shall remain effective for
such periods of time as applicable law may permit with respect to the ownership
of any such intellectual property or materials.

 

12.                               Enforcement.  Employee
understands and agrees that he will provide unique services to Company and that
the restrictions contained in Sections 10 and 11 of this Agreement are
reasonable, fair, and equitable in scope, terms, and duration, are necessary to
protect the legitimate business interests, trade secrets, and good will of
Company, and are a material inducement to Company to enter into this Agreement,
and that any breach or threatened breach of the restrictions stated in
Sections 10 and 11 would cause Company substantial and irreparable harm
for which there is no adequate remedy at law. Therefore, Employee agrees and consents
to the issuance of injunctive relief in favor of Company by any court of
competent jurisdiction, where, in Company’s sole discretion, Company has acted
upon reasonable information concerning a breach or potential breach of this
Agreement, to enjoin the breach of any of the covenants of Employee contained
in Sections 10 and 11 of this Agreement. Nothing contained in this Section
shall invalidate or waive any other rights or remedies which Company may have
at law or in equity.

 

13.                               Indemnification; Directors’
and Officers’ Insurance.

 

(a)  While Employee is employed by Company pursuant to this
Agreement, Company covenants that it will not repeal or modify any right to
indemnification or limitation of liability under Company’s Amended and Restated
Certificate of Incorporation, By-Laws, or otherwise so as to adversely affect
any right or protection of a director or officer of Company existing at the
time of such repeal or modification.

 

(b)  Company agrees to provide to Employee and keep current
at all times during Employee’s employment, at its expense, director’s and
officer’s liability insurance, with Employee named as the beneficiary, with
such coverage limits as are determined in the reasonable discretion of the
Board of Directors of the Company.

 

14.                               Change of Control.  Notwithstanding
any other provisions of this Agreement, Company agrees that in the event a
Change of Control (as hereinafter defined) occurs and Employee leaves the
employment of Company and the combined entity for whatever reason (other than
(i) termination for Cause, (ii) death, (iii) permanent
disability as described in Section 9 hereof or (iv) by Employee for
any reason other than Good Reason):

 

(a)  If the termination occurs within twelve months after a
Change of Control, Company shall pay the Employee in a single lump sum within
ten (10) days of the termination an amount equal to two (2) times the sum of
(i) his annual Salary and (ii) the product of: (x) his annual Salary and (y)
the highest bonus award percentage applicable to the Employee during the three
years preceding the year in which the termination takes place.  The six (6) month notice requirement prior to
the effective date of termination pursuant to Sections 8(b) and 8(c) shall
continue to be applicable following a Change of Control.  To the extent the Company gives less than six
(6) months notice (other than in the case of a termination for Cause), the
Company shall

 

7

 

pay
the Employee his or her Salary for the amount of time by which the actual
notice given is less than six (6) months.

 

(b)  To the extent eligible, Employee shall continue to be
covered by all noncash benefit plans of Company (including, but not limited to,
the medical and dental plans and the special disability policy for officers),
except for the retirement plans or retirement programs in which Employee
participates or any successor plans or programs in effect on the date of a
Change of Control, for 24 months thereafter; provided, however, that if
during such time period Employee should enter into the employment of a
competitor of Company, participation in such noncash benefit plans would cease.
In the event Employee is ineligible under the terms of such plans to continue
to be so covered, Company shall use its best efforts to provide substantially
equivalent coverage through other sources. If Company is unable to provide
substantially equivalent coverage through other sources, then Company shall pay
in cash to Employee the amount Company would have had to expend to provide such
coverage assuming standard risk.

 

(c)  Employee’s payments received hereunder shall be
considered severance pay in consideration of past service, and pay in
consideration of continued service from June 3, 2002 and entitlement thereto shall
not be governed by any duty to mitigate damages by seeking further employment
nor offset by any compensation which may be received from future employment.

 

(d)  The specific arrangements referred to above are not
intended to exclude Employee’s participation in other benefits available to
executive personnel generally or to preclude other compensation or benefits as
may be authorized by the Board of Directors of the Company from time to time,
or as a result of the Change of Control.

 

(e)  This Section shall be binding upon and shall inure to
the benefit of the respective successors, assigns, legal representatives and
heirs to the parties hereto.

 

(f)  For the purpose of this Agreement, a “Change of Control”
shall mean: a merger, consolidation, or reorganization of Company with one or
more other entities in which Company is not the surviving entity, a sale of
substantially all of the assets of Company to another entity, or any
transaction (including, without limitation, a merger or reorganization in which
Company is the surviving entity) that results in any person or entity (or
persons or entities acting as a group or otherwise in concert) becoming the
beneficial owner of fifty percent (50%) or more of the combined voting power of
all classes of securities of Company or obtaining (through stock ownership,
proxies, or otherwise) the right to elect a majority of the Board of Directors
of the Company.

 

15.                               Gross Up Payments  If the payment provided under this Agreement (the “Contract Payment”)
is subject to the tax (the “Excise Tax”) imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (“Code”), Company shall pay Employee
on or before the fifth day following the date of termination, an additional
amount (the “Gross-Up Payment”) such that the net amount retained by Employee,
after deduction of any Excise Tax on the Contract Payment and such other Total
Payments (as defined below) and any

 

8

 

federal and state and local
income tax and Excise Tax upon the payment provided for by this Section, shall
be equal to the Contract Payment and such other Total Payments. For purposes of
determining whether any of the payments will be subject to the Excise Tax and
the amount of such Excise Tax, (i) any other payments or benefits received
or to be received by Employee in connection with a Change of Control of Company
or Employee’s termination of employment, whether payable pursuant to the terms
of this Agreement or any other plan, arrangement or agreement with Company, its
successors, any person whose actions result in a Change of Control of Company
or any corporation affiliated (or which, as a result of the completion of a
transaction causing a Change of Control, will become affiliated) with Company
within the meaning of Section 1504 of the Code (together with the Contract
Payment, the “Total Payments”) shall be treated as “parachute payments” within
the meaning of Section 280G(b)(2) of the Code, and all “excess parachute
payments” within the meaning of Section 280G(b)(1) shall be treated as
subject to the Excise Tax, unless in the opinion of tax counsel selected by
Company and acceptable to Employee, whose acceptance shall not be unreasonably
withheld, the Total Payments (in whole or in part) do not constitute parachute
payments, or such excess parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered within the meaning of
Section 280G(b)(4) of the Code either in their entirety or in excess of
the base amount within the meaning of Section 280G(b)(3) of the Code, or
are otherwise not subject to the Excise Tax, (ii) the amount of the Total
Payments that shall be treated as subject to the Excise Tax shall be equal to
the lesser of (A) the total amount of the Total Payments or (B) the
amount of excess parachute payments within the meaning of
Section 280G(b)(1) (after applying clause (i), above), and
(iii) the value of any non-cash benefits or any deferred payment or
benefit shall be determined by Company’s independent auditors in accordance
with the principles of Sections 280G(b)(3) and (4) of the Code. For
purposes of determining the amount of the Gross-Up Payment, Employee shall be
deemed to pay federal income taxes at the highest marginal rate of federal
income taxation in the calendar year in which the Gross-Up Payment is to be
made and state and local income taxes at the highest marginal rate of taxation
in the state and locality of Employee’s residence on the date of termination,
net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes. In the event that the Excise Tax
is subsequently determined to be less than the amount taken into account
hereunder at the time of termination of Employee’s employment, Employee shall
repay to Company at the time that the amount of such reduction in Excise Tax is
finally determined the portion of the Gross-Up Payment attributable to such
reduction (plus the portion of the Gross-Up Payment attributable to the Excise
Tax and federal and state and local income tax imposed on the Gross-Up Payment
being repaid by Employee if such repayment results in a reduction in Excise Tax
and/or a federal state and local income tax deduction) plus interest on the
amount of such repayment at the rate provided in Section 1274(d) of the
Code. In the event that the Excise Tax is determined to exceed the amount taken
into account hereunder at the time of the termination of Employee’s employment
(including by reason of any payment the existence or amount of which cannot be
determined at the time of the Gross-Up Payment), Company shall make an
additional Gross-Up Payment in respect of such excess (plus any interest
payable with respect to such excess) at the time that the amount of such excess
is finally determined.

 

16.                               Survivability.  The
provisions of Sections 10, 11 and 12 of this Agreement shall survive its
termination.

 

9

 

17.                               Section Titles.  The
titles of the Sections of this Agreement are for convenience only and shall not
affect the interpretation of any Section hereof.

 

18.                               Waiver.  A
waiver by either party hereto of any of the terms or conditions of this
Agreement in any instance shall not be deemed or construed to be a waiver of
such term or condition for the future, or of any subsequent breach thereof. All
remedies, rights, undertakings, obligations and agreements contained in this
Agreement shall be cumulative and none of them shall be in limitation of any
other remedy, right, undertaking, obligation or agreement of either party
hereto.

 

19.                               Severability.  The
rights and restrictions in this Agreement may be exercised and are applicable
only to the extent that they do not violate applicable laws, and are intended
to be limited to the extent necessary so that they will not render this
Agreement illegal, invalid, or unenforceable. If any provision of this
Agreement shall be deemed to be invalid or unenforceable, then that provision
shall be modified to make it enforceable to the maximum extent possible, and
the remaining provisions of this Agreement shall not be affected thereby and
shall remain in full force and effect.

 

20.                               Assignment.  This
Agreement requires the personal services of Employee only, and Employee shall
not be entitled to assign any portion of his duties or obligations hereunder.

 

21.                               Notices.  For
the purposes of this Agreement, notices, demands and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have
been duly given when delivered or (unless otherwise specified) mailed by United
States certified or registered mail, return receipt requested, postage prepaid,
addressed as follows: 

 

	
  If to Employee:

  	
   

  	
  Robert F. Shawver

  3908 Skye Court

  Ellicott City, MD 21042

  
	
   

  	
   

  	
   

  
	
  If to Company:

  	
   

  	
  Duratek, Inc.

  10100 Old Columbia Road

  Columbia, Maryland 21046

  

 

22.                               Governing Law.  This
Agreement has been made and executed in the State of Maryland and shall be
governed by the laws of Maryland applicable to contracts fully to be performed
therein.

 

23.                               Waiver of Jury Trial.  THE
PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
AGREEMENT. EACH OF THE PARTIES HERETO REPRESENTS AND WARRANTS THAT IT HAS
REVIEWED THIS WAIVER WITH ITS

 

10

 

LEGAL COUNSEL, AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS TO (OR ASSIGNMENTS OF) THIS
AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL (WITHOUT A JURY) BY THE COURT.

 

24.                               Entire Agreement.  This
Agreement constitutes the entire agreement of the parties and supersedes any
and all previous agreements between the Parties, including the employment
agreements between Company and Employee dated January 24, 1995 and June 3,
2002 (the “Prior Agreements”). Upon the execution by the parties of this
Agreement, the Prior Agreements shall be terminated and of no further force and
effect. This Agreement may not be modified orally, but only by an agreement in
writing supplied by the party against whom enforcement of any waiver, change,
modification, extension, or discharge is sought.

 

25.                               Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall
deemed to be an original but all of which together will constitute one and the
same instrument.

 

26.                               Section
409A.  Notwithstanding anything in
this Agreement to the contrary, if any amount payable to the Employee under
this Agreement is deferred compensation subject to Internal Revenue Code
Section 409A and the regulations promulgated thereunder (“Section 409A”) and if
the Employee is a “specified employee” within the meaning of Section 409A,
payment of such amount shall be made as follows:  Any amount that is scheduled to be paid for
the period which begins on the Employee’s separation from service, as defined
in Section 409A, and ends on the date six months from the Employee’s separation
from service, shall not be paid as scheduled, but shall be accumulated and paid
in a lump sum on the date six months after the Employee’s separation from
service.

 

27.                               Miscellaneous.  The
parties agree to execute all other such documents as may be required to
effectuate or more readily carry out the provisions hereof.

 

IN
WITNESS WHEREOF, Employee and Company have executed this Agreement. 

 

	
  COMPANY:

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
  DURATEK, INC.

  	
  Robert F. Shawver

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Robert E. Prince

  	
   

  	
  /s/ Robert F. Shawver

  	
   

  
	
   

  	
   

  
	
  Name: Robert E. Prince

  	
   

  
	
   

  	
   

  
	
  Title: President/CEO

  	
  Date: February 6, 2006

  
	
   

  	
   

  
	
  Date: February 6, 2006

  	
   

  
						

 

11

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