Document:

EX-10.1

 Exhibit 10.1 

December 20,
2013                                     

Strictly Confidential & Personal 

Mr. James P. Regan 
 Address 1 

Address 2 
  

	 	Re:	Letter Agreement – Special Transaction Success Bonus 

 Dear Jim: 

As you know, Dynamics Research Corporation (the “Corporation”) is currently contemplating strategic alternatives involving potential
business combinations pursuant to a process designated as Project Leader. You have been and will continue to be instrumental in a successful consummation of a transaction resulting from Project Leader (the “Transaction”). To reward you for
your extraordinary efforts in working toward the consummation of such Transaction, to reward you for your anticipated extraordinary efforts expended in connection with closing the Transaction (the “Closing”), and in consideration of
(subject to payment to you of the Special Transaction Success Bonus within the time frame set forth below and execution of a Consulting Agreement between you and Engility Corporation contemporaneous with your execution of this Letter Agreement),
your agreement to waive and relinquish any current or future rights or entitlements you would otherwise have pursuant to the Change in Control Agreement that you entered into with the Corporation on November 3, 1999 (the “Change in Control
Agreement”) and pursuant to your Employment Agreement with the Corporation dated September 10, 1999 (the “Employment Agreement”), the Corporation is pleased to inform you of its intention to award to you a Special Transaction
Success Bonus in the amount of Two Million Five Hundred Thousand dollars ($2,500,000) (the “Special Bonus”), less all applicable federal, state and local taxes and withholdings. 

Payment of the Special Bonus is conditioned upon (i) your execution of this Letter Agreement by December 20, 2013, (ii) the
Closing of the Transaction, (iii) your continued employment through the Closing of the Transaction (during which period you and the Corporation will be bound by the terms of the Employment Agreement), (iv) your execution of the General
Release of Claims attached as Exhibit A hereto (the “Release”) within the forty-five (45) day review period described therein, and (v) your refraining from revoking the Release within the seven (7) day revocation period
described therein. The Corporation or its successor will pay you the Special Bonus within three business days of the later of (i) the Closing of the Transaction and (ii) the expiration of the review and revocation periods described in the
Release. This Letter Agreement is also subject to, and not effective until, its approval by the Board of Directors of the Corporation. 
 In
the event that all or a portion of the Special Bonus described in this Letter Agreement, 

 
either alone or in conjunction with any other payment to be received by you in connection with the Transaction, constitutes an “excess parachute payment” within the meaning of
Section 280G of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and, but for this paragraph, would at time of payment be subject to the excise tax imposed by Section 4999 of the Code or the loss of deduction to
the Corporation under Section 280G of the Code, then the payment of the Special Bonus under this Letter Agreement shall be reduced to the minimum degree necessary to avoid application of such excise tax and such loss of deduction (or shall be
eliminated, if no such reduction would avoid application of such excise tax and loss of such deduction). 
 Upon payment of the Special
Bonus hereunder, you agree that all your current and future rights or entitlements and all obligations of the Corporation to you under the Employment Agreement and the Change of Control Agreement are extinguished and released. All of your rights and
all obligations of the Corporation to you under your Change of Control Agreement and the Employment Agreement will remain in full force and effect in the event that the Special Bonus is not paid within the time frame set forth above. Notwithstanding
the foregoing and the termination of your Employment Agreement upon the consummation of the Transaction, you agree to continue to be bound by the provisions of Section 3 of the Employment Agreement regarding confidential information, the
protection of documents, non-competition, and assignment of intellectual property. 
 It is the intent of the Corporation and you that you
shall not be entitled to exercise your rights to a payment under the Employment Agreement or the Change of Control Agreement in exchange for the payment of the Special Bonus under this Letter Agreement. Consequently, you will not be entitled to
payment of a Special Bonus under this Letter Agreement if you exercise your rights to a payment under the Employment Agreement or the Change in Control Agreement in respect of the Transaction prior to the payment of the Special Bonus. 

You agree, prior to any public filing of a copy of this Agreement by the Corporation, not to disclose or discuss the terms of this Letter
Agreement to or with anyone without the express and specific written permission of the Corporation, it being acknowledged and agreed that the terms of this Letter Agreement may be disclosed to and discussed with your spouse and your personal
financial or legal advisors (and, in each case, with such individuals only on a need-to-know basis), and with no other persons, except as may be required by law. 

The Special Bonus under this Letter Agreement, to the extent it constitutes the deferral of compensation within the meaning of
Section 409A of the Code, is intended to comply with the requirements of Section 409A of the Code, and shall be interpreted and construed consistently with such intent. The payment of the Special Bonus under this Letter Agreement is also
intended to be exempt from Section 409A of the Code to the maximum extent possible as a short-term deferral pursuant to Treasury regulation §1.409A-1(b)(4). To the extent the review and revocation periods for the Release commences in one
calendar year and ends in another, the Special Bonus will be paid in the later calendar year. 

  
 -2- 

 Congratulations, Jim. You are deserving of this Special Bonus, and we look forward to your
continued efforts as the Corporation moves towards a Closing of the Transaction. 
  

			
	Yours sincerely,
	DYNAMICS RESEARCH CORPORATION
		
	By:	 	  /s/ George T. Babbitt, Jr.

		 	General George T. Babbitt, Jr.
		 	Chair of the Compensation Committee of the Board of Directors

  

	
	ACCEPTED AND AGREED TO:
	
	  /s/ James P. Regan

	James P. Regan
	
	 December 20, 2013

	Date

  
 -3-EX-10.2

 Exhibit 10.2 

December 20, 2013 
 Strictly
Confidential & Personal 
 Mr. David Keleher 

234 Cushing Road 
 Newmarket, NH 03857 

 

	 	Re:	Letter Agreement – Transaction Retention Bonus 

 Dear Dave: 

As you know, Dynamics Research Corporation (the “Corporation”) is currently contemplating strategic alternatives involving potential
business combinations pursuant to a process designated as Project Leader. You have been and will continue to be instrumental in a successful consummation of a transaction resulting from Project Leader (the “Transaction”). In consideration
of your anticipated extraordinary efforts to be expended in connection with closing a transaction resulting from Project Leader (the “Closing”), and to provide an incentive for you to remain with the Corporation or its successor for a
transition period following the Closing, the Corporation is pleased to inform you of its intention to award you a Special Transaction Success Bonus in an amount of up to six hundred thousand dollars ($600,000) (the “Success Bonus”), less
all applicable federal, state, and local tax and withholdings. 
 Payment of the Success Bonus is conditioned on the Corporation’s
determination that the Closing is a result of the Project Leader process. If the Corporation determines that any transaction is not the result of Project Leader process, or if the Corporation determines to discontinue the Project Leader process
prior to any transaction, no Success Bonus will be payable to you. In no event will a Success Bonus be paid if a Closing has not occurred on a Transaction by December 31, 2014. I retain discretion to determine, prior to Closing, the exact
amount of your Success Bonus, up to the maximum set forth above. 
 The Corporation or its successor will pay you the Success Bonus in two
equal installments, each equal to one-half of the foregoing amount. The first installment will be paid within five business days of the Closing of the Transaction, provided that you remain an employee in good standing through the Closing. The second
installment will be paid on the next business day following the six-month anniversary of the Closing, provided that you either (i) remain in good standing as an employee of the Corporation or its successor through that anniversary date or
(ii) after the Closing and prior to that anniversary date are involuntarily separated from service of the Company or its successor or separate voluntarily due to Good Reason. For purposes of this Agreement, “Good Reason” shall mean:

 (1) A material diminution in your base compensation; 

(2) A change in the geographic location at which you must perform services of more than 50 miles. 

 For Good Reason to exist, you must provide notice to the Corporation or its successor of the existence of any of
the foregoing conditions within ninety (90) days of the initial existence of the condition, and the Corporation shall upon such notice shall have a period of thirty (30) days during which it may remedy the condition (and upon such remedy
Good Reason shall be deemed not to have existed). 
 In the event it shall be determined that any payment(s) or distribution(s) by the
Corporation to or for your benefit (whether pursuant to the terms of this Letter Agreement or otherwise) would result, under Section 280G of the Internal Revenue Code of 1986 as amended from time-to-time (the “Code”), in a loss of tax
deduction to the Corporation or be subject to the excise tax imposed by Section 4999 of the Code, then such payment(s) or distributions(s) shall be reduced to the minimum degree necessary to avoid such loss of deductions and application of such
excise tax (or shall be eliminated, if no such reduction would avoid such loss of deduction or application of such excise tax). Any such reduction shall be made first from amounts that are not “nonqualified deferred compensation” subject
to Section 409A of the Code and, if such reduction is insufficient to satisfy the preceding sentence, then from all the remainder of such amounts pro rata. 

You agree, prior to any public filing of a copy of this Agreement by the Corporation, not to disclose or discuss the terms of this Letter
Agreement to or with anyone without the express and specific written permission of the Corporation, it being acknowledged and agreed that the terms of this Letter Agreement may be discussed with your spouse and your personal financial or legal
advisors (and, in each case, with such individuals only on a need-to-know basis), and with no other persons, except as may be required by law. 
  

			
	Yours sincerely,
	
	DYNAMICS RESEARCH CORPORATION
		
	By:	 	  /s/ James P. Regan

		 	 James P. Regan
 Chairman, President and Chief
Executive Officer

  
 -2- 

	
	ACCEPTED AND AGREED TO:
	
	  /s/ David Keleher

	David Keleher
	
	 December 20, 2013

	Date

  
 -3 -

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