Document:

IT CORPORATION RESTORATION PLAN

  Exhibit 10
    (iii) 34.

  

 IT
   CORPORATION

 RESTORATION
   PLAN

 (Amended and
   Restated Effective January 1, 1999)

  

 

   TABLE OF
   CONTENTS 

 	ARTICLE
     1	    	Definitions	    	1
	 
	 
	ARTICLE
     2	    	Selection,
     Enrollment, Eligibility	    	5
	
      2.1	    	Selection by
     Committee	    	5
	
      2.2	    	Enrollment
     Requirements	    	5
	
      2.3	    	Eligibility;
     Commencement of Participation	    	5
	 
	 
	ARTICLE
     3	    	Contribution and
     Interest Crediting	    	6
	
      3.1	    	Company
     Contribution	    	6
	
      3.2	    	Effect of Election
     Form	    	6
	
      3.3	    	Interest Crediting
     Prior to Distribution	    	6
	
      3.4	    	Interest Crediting
     for Installment Distributions	    	6
	
      3.5	    	FICA
     Taxes	    	6
	
      3.6	    	Vesting	    	6
	
      3.7	    	Statements	    	7
	 
	 
	ARTICLE
     4	    	Unforeseeable
     Financial Emergencies; Withdrawal Election	    	8
	
      4.1	    	Withdrawal
     Payout/Suspensions for Unforeseeable Financial Emergencies	    	8
	
      4.2	    	Withdrawal
     Election	    	8
	 
	 
	ARTICLE
     5	    	Retirement
     Termination Benefits	    	9
	
      5.1	    	Retirement
     Benefit	    	9
	
      5.2	    	Payment of
     Retirement Benefits	    	9
	
      5.3	    	Death Prior to
     Completion of Retirement Benefits	    	9
	
      5.4	    	Termination
     Benefit	    	9
	
      5.5	    	Disability	    	9
	 
	 
	ARTICLE
     6	    	Pre-Retirement
     Survivor Benefit	    	10
	
      6.1	    	Pre-Retirement
     Survivor Benefit	    	10
	
      6.2	    	Payment of
     Pre-Retirement Survivor Benefits	    	10
	 
	 
	ARTICLE
     7	    	Beneficiary
     Designation	    	11
	
      7.1	    	Beneficiary	    	11
	
      7.2	    	Beneficiary
     Designation; Change; Spousal Consent	    	11
	
      7.3	    	Acknowledgment	    	11
	
      7.4	    	No Beneficiary
     Designation	    	11
	
      7.5	    	Doubt as to
     Beneficiary	    	11
	
      7.6	    	Discharge of
     Obligations	    	11

 

 	ARTICLE
     8	    	Termination,
     Amendment or Modification	    	12
	
      8.1	    	Termination	    	12
	
      8.2	    	Amendment	    	12
	
      8.3	    	Effect of
     Payment	    	12
	 
	 
	ARTICLE
     9	    	Administration	    	13
	
      9.1	    	Committee
     Duties	    	13
	
      9.2	    	Agents	    	13
	
      9.3	    	Binding Effect of
     Decisions	    	13
	
      9.4	    	Indemnity of
     Committee	    	13
	
      9.5	    	Employer
     Information	    	13
	 
	 
	ARTICLE
     10	    	Claims
     Procedures	    	14
	10.1	    	Presentation of
     Claim	    	14
	10.2	    	Notification of
     Decision	    	14
	10.3	    	Review of a Denied
     Claim	    	14
	10.4	    	Decision on
     Review	    	14
	10.5	    	Legal
     Action	    	15
	 
	 
	ARTICLE
     11	    	Trust	    	16
	11.1	    	Establishment of
     Trust	    	16
	11.2	    	Interrelationship
     of the Plan and the Trust	    	16
	 
	 
	ARTICLE
     12	    	Miscellaneous	    	17
	12.1	    	Unsecured General
     Creditor	    	17
	12.2	    	Employer’s
     Liability	    	17
	12.3	    	Nonassignability	    	17
	12.4	    	Coordination with
     Other Benefits	    	17
	12.5	    	Not a Contract of
     Employment	    	17
	12.6	    	Furnishing
     Information	    	17
	12.7	    	Terms	    	17
	12.8	    	Captions	    	18
	12.9	    	Governing
     Law	    	18
	12.10	    	Notice	    	18
	12.11	    	Successors	    	18
	12.12	    	Spouse’s
     Interest	    	18
	12.13	    	Validity	    	18
	12.14	    	Incompetent	    	18
	12.15	    	Distribution in the
     Event of Taxation	    	18
	12.16	    	Legal Fees to
     Enforce Rights After Change in Control	    	19
	12.17	    	Counterparts	    	19
	12.18	    	Small
     Payments	    	19

 

  IT
   CORPORATION

 RESTORATION
   PLAN

 Amended and
   Restated Effective January 1, 1999

  

 Purpose

  

    
        The purpose of this Plan is to provide
   specified benefits to a select group of management or highly compensated
   employees who contribute materially to the continued growth, development and
   future business success of IT Corporation, a California corporation, and its
   affiliates. The Plan constitutes an unfunded plan that is not qualified
   under Code Section 401(a). The Plan was originally adopted effective July 1,
   1995, was amended and restated effective January 1, 1998, and is hereby
   amended and restated again, effective January 1, 1999.

  

 ARTICLE
   1

 Definitions

  

    
        For purposes hereof, unless otherwise clearly
   apparent from the context, the following phrases or terms shall have the
   following indicated meanings:

  

 	1.1
      

   	 “Account
     Balance” or “Account” shall mean, with respect to a
     Participant, the sum of (i) the Participant’s share of Company
     Contributions plus (ii) interest thereon credited in accordance with the
     applicable interest crediting provisions of the Plan, net of all
     distributions from such account. This account shall be a bookkeeping entry
     only and shall be utilized solely as a device for the measurement and
     determination of the amounts to be paid to or in respect of a Participant
     pursuant to the Plan.

   

  

 	1.2
      

   	 “Annual Bonus
     ” shall mean any compensation, in addition to Base Annual Salary,
     paid annually during a Plan Year, either in cash or stock, to a
     Participant as an employee under any Employer’s annual bonus and
     incentive plans without regard to any limits under Code Section
     401(a)(17). Notwithstanding the foregoing, the Annual Bonus shall not
     include any stock option awards or stock received upon the exercise of an
     option.

   

  

 	1.3
      

   	 “Base Annual
     Salary” shall mean the annual compensation and commissions (but
     excluding bonuses, overtime, incentive payments, non-monetary awards,
     directors fees, and other fees) paid to a Participant for services
     rendered to any Employer, before reduction for compensation deferred
     pursuant to all qualified, non-qualified and Code Section 125 plans of any
     Employer without regard to any limits under Code Section
     401(a)(17).

   

  

 	1.4
      

   	 “Beneficiary
     ” shall mean one or more persons, trusts, estates or other entities,
     designated in accordance with Article 7, that are entitled to receive
     benefits under the Plan upon the death of a Participant.

   

  

 	1.5
      

   	 “Beneficiary
     Designation Form” shall mean the form established from time to time
     by the Committee that a Participant completes, signs and returns to the
     Committee to designate one or more Beneficiaries.

   

  

 	1.6
      

   	 “Board”
     shall mean the board of directors of the Company.

   

  
 	 1.7
      

   	 “Change in
     Control” shall mean with respect to an Employer the first to occur of
     any of the following events:

   

  

 		(a)
      

   	 Any “person
     ” (as that term is used in Section 13 and 14(d)(2) of the Securities
     Exchange Act of 1934 (“Exchange Act”)), after the date hereof
     becomes the beneficial owner (as that term is used in Section 13(d) of the
     Exchange Act), directly or indirectly, of 50% or more of the Employer
     ’s capital stock entitled to vote in the election of
     directors;

   

  

 		(b)
      

   	 During any period
     of two consecutive years, individuals who at the beginning of such period
     constitute the board of directors of the Employer cease for any reason to
     constitute at least a majority thereof, unless the election or the
     nomination for election by the Employer’s shareholders of each new
     director was approved by a vote of at least three-quarters of the
     directors then still in office who were directors at the beginning of the
     period;

   

  

 		(c)
      

   	 Any consolidation
     or merger of the Employer, other than a consolidation or merger of the
     Employer in which the holders of the common stock of the Employer
     immediately prior to the consolidation or merger hold more than 50% of the
     common stock of the surviving corporation immediately after the
     consolidation or merger;

   

  

 		(d)
      

   	 The shareholders of
     the Employer approve any plan or proposal for the liquidation or
     dissolution of the Employer; or

   

  

 		(e)
      

   	 Substantially all
     of the assets of the Employer are sold or otherwise transferred to parties
     that are not within a “controlled group of corporations” (as
     defined in Section 1563 of the Code) in which the Employer is a
     member.

   

  

 	1.8
      

   	 “Claimant
     ” shall have the meaning set forth in Section 10.1.

   

  

 	1.9
      

   	 “Code”
     shall mean the Internal Revenue Code of 1986, as amended.

   

  

 	1.10
      

   	 “Committee
     ” shall mean the administrative committee appointed to manage and
     administer the Plan in accordance with its provisions pursuant to Article
     9.

   

  

 	1.11
      

   	 “Company”
     shall mean IT Corporation, a California corporation.

   

  

 	1.12
      

   	 “Company
     Contribution” shall mean any contribution made and credited to
     Participants’ Accounts by the Company in accordance with Section 3.1
     below.

   

  

 	1.13
      

   	 “Crediting Rate
     ” shall mean, for a particular Plan Year, an interest rate determined
     by the compensation committee of the Board, in its sole and absolute
     discretion.

   

  

 	1.14
      

   	 “Disability
     ” shall mean a period of disability during which a Participant
     qualifies for benefits under the Participant’s Employer’s
     long-term disability plan (or would qualify if he were a participant in
     such a plan).

   

  

 	1.15
      

   	 “Election Form
     ” shall mean the form established from time to time by the Committee
     that a Participant completes, signs and returns to the Committee upon the
     commencement of his participation hereunder to make a distribution
     election under the Plan.

   

 

  

 	 1.16
      

   	 “Employer
     ” shall mean the Company or any affiliate authorized by the Board to
     participate in the Plan.

   

  

 	1.17
      

   	 “Participant
     ” shall mean any employee of an Employer (i) who is selected to
     participate in the Plan, (ii) who signs a Plan Agreement, an Election Form
     and a Beneficiary Designation Form, (iii) whose signed Plan Agreement,
     Election Form and Beneficiary Designation Form are accepted by the
     Committee, (iv) who commences participation in the Plan, and (v) whose
     Account Balance has not been paid in full.

   

  

 	1.18
      

   	 “Plan”
     shall mean the IT Corporation Restoration Plan, which shall be evidenced
     by this instrument, as it may be constituted from time to
     time.

   

  

 	1.19
      

   	 “Plan Agreement
     ” shall mean a written agreement, as may be amended from time to
     time, which is entered into by and between one or more Employers and a
     Participant. Each Plan Agreement executed by a Participant shall provide
     for the entire benefit to which such Participant is entitled under the
     Plan, and shall specify the Employer or Employers liable for the
     Participant’s benefits hereunder and the magnitude or extent of such
     liability. The Plan Agreement bearing the latest date of acceptance by the
     Committee shall govern such entitlement and each Employer’s
     liability. Upon the complete payment of a Participant’s Account
     Balance, each individual’s Plan Agreement and his or her status as a
     Participant shall terminate.

   

  

 	1.20
      

   	 “Plan Year
     ” shall, for the first Plan Year, begin on July 1, 1995, and end on
     December 31, 1995. For each Plan Year thereafter, the Plan Year shall
     begin on January 1 of each year and continue through December
     31.

   

  

 	1.21
      

   	 
     “Pre-Retirement Survivor Benefit” shall mean the benefit set
     forth in Article 6.

   

  

 	1.22
      

   	 “Retirement,
     ” “Retire,” “Retires,” or “Retired”
     shall mean severance from employment with all Employers for any reason
     other than a leave of absence on or after the attainment of (a) the date
     on which the sum of a Participant’s age and Years of Service is equal
     to seventy (70), or (b) age sixty-five (65), whichever is
     earlier.

   

  

 	1.23
      

   	 “Retirement
     Benefit” shall mean the benefit set forth in Article 5.

   

  

 	1.24
      

   	 “Termination
     Benefit” shall mean the benefit set forth in Article 5.

   

  

 	1.25
      

   	 “Termination
     of Employment” shall mean the ceasing of employment with all
     Employers, voluntarily or involuntarily, for any reason other than
     Retirement, death or an authorized leave of absence.

   

  

 	1.26
      

   	 “Trust”
     shall mean the one or more trusts established pursuant to that certain
     trust agreement between the Employers and the trustee named therein, as
     amended from time to time.

   

  

 	1.27
      

   	 “Unforeseeable
     Financial Emergency” shall mean an unanticipated emergency that is
     caused by an event beyond the control of the Participant that would result
     in severe financial hardship to the Participant resulting from (i) a
     sudden and unexpected illness or accident of the Participant or a
     dependent of the Participant, (ii) a loss of the Participant’s
     property due to casualty, or (iii) such other extraordinary and
     unforeseeable circumstances arising as a result of events beyond the
     control of the Participant, all as determined in the sole and absolute
     discretion of the Committee.

   

  

 	 1.28
      

   	 “Years of
     Service” shall mean, with respect to a Participant, the total number
     of such years recognized and taken into account under the IT Corporation
     Retirement Plan.

   

  

  ARTICLE
   2

 Selection,
   Enrollment, Eligibility

  

 	2.1
      

   	 Selection by
     Committee.    Participation in the Plan shall
     be limited to employees of an Employer who are part of a select group of
     management or highly compensated employees. Generally, such group shall be
     limited to (a) employees whose Base Annual Salary for a year is at least
     equal to the annual compensation limitation set forth in Code Section
     401(a)(17) and (b) corporate officers of IT Group, Inc. From the
     foregoing, the Committee shall select, in its sole and absolute
     discretion, employees to participate in the Plan.

   

  

 	2.2
      

   	 Enrollment
     Requirements.    As a condition to
     participation, each selected employee shall complete, execute and return
     to the Committee within 30 days of selection a Plan Agreement, an Election
     Form and a Beneficiary Designation Form. In addition, the Committee shall
     establish from time to time such other enrollment requirements as it
     determines in its sole and absolute discretion are necessary.

   

  

 	2.3
      

   	 Eligibility;
     Commencement of Participation.    Provided an
     employee selected to participate herein has met all enrollment
     requirements set forth herein and required by the Committee, including
     returning all required documents to the Committee within 30 days of
     selection, that employee shall commence participation in the Plan upon the
     timely completion of those requirements and the Committee’s
     acceptance of all submitted documents. If an employee fails to meet all
     such requirements within the required 30 day period, that employee shall
     not be eligible to participate in the Plan until the first day of the Plan
     Year following the delivery to and acceptance by the Committee of the
     required documents.

   

  

  ARTICLE
   3

 Contributions
   and Interest Crediting

  

 	3.1
      

   	 Company
     Contribution.    For each Plan Year, each
     Employer shall make a Company Contribution on behalf of each Participant
     equal to (a) the maximum percentage of eligible compensation contributed
     as a matching contribution under the IT Corporation Retirement Plan to any
     participant (without regard to any adjustments to the matching
     contribution to comply with applicable antidiscrimination rules) therein
     multiplied by the sum of the Participant’s Base Annual Salary and
     Annual Bonus, less (b) the amount that would have been contributed on
     behalf of the Participant under the company matching contribution portion
     of the IT Corporation Retirement Plan for such Plan Year had the
     Participant contributed at least four percent (4%) of eligible
     compensation to such plan for such Plan Year.

   

  

 	3.2
      

   	 Effect of
     Election Form.    In connection with a
     Participant’s commencement of participation in the Plan, the
     Participant shall deliver to the Committee a completed and signed Election
     Form, which election and form must be accepted by the Committee for a
     valid election to exist. In such Election Form, the Participant shall
     specify the commencement time and format of distributions where such
     matters are elective hereunder.

   

  

 	3.3
      

   	 Interest
     Crediting Prior to Distribution.    Prior to
     any distributions of benefits under Articles 4, 5, or 6, interest at the
     Crediting Rate shall be credited and compounded annually on a Participant
     ’s Account Balance as of the date the Company Contribution for that
     Plan Year was actually credited. In the event of Retirement, death or a
     Termination of Employment prior to the end of a Plan Year, the basis for
     that year’s interest crediting will be a fraction of the full year
     ’s interest, based on the number of full months that the Participant
     was employed with the Employer during the Plan Year prior to the
     occurrence of such event. If a distribution is made under this Plan, for
     purposes of crediting interest, the Account Balance shall be reduced as of
     the first day of the month in which the distribution is made. A
     Participant shall receive credit for a full month of interest if he or she
     was a Participant for at least 15 days of a particular month.

   

  

 	3.4
      

   	 Interest
     Crediting for Installment Distributions.    In
     the event a benefit is paid in installments under Articles 5 or 6,
     interest shall be credited and compounded on the undistributed portion of
     the Participant’s Account Balance commencing on the first day of the
     month in which the Participant terminates employment, using a fixed
     interest rate that is determined by averaging the Crediting Rates for the
     Plan Year in which installment payments commence and the four (4)
     preceding Plan Years. If a participant has completed fewer than five (5)
     full years of Plan participation, this average shall be determined using
     the Crediting Rates for the Plan Years during which the Participant
     participated in the Plan.

   

  

 	3.5
      

   	 FICA
     Taxes.    For each Plan Year, the Participant
     ’s Employer(s) shall ratably withhold from that portion of the
     Participant’s Base Annual Salary and/or Annual Bonus, the Participant
     ’s share, if any, of FICA taxes on contributions (or earnings
     thereon).

   

  

 	3.6
      

   	 Vesting.
         A Participant shall have at all times a vested
     and nonforfeitable interest in his Account Balance hereunder that is
     coextensive with his vested and nonforfeitable

   

 		  interest in the
     company contribution portion of the IT Corporation Retirement Plan, except
     that a Participant’s interest shall become fully vested and
     nonforfeitable upon the onset of a Disability. Notwithstanding the
     foregoing, all Account Balances hereunder shall become fully vested and
     nonforfeitable upon the occurrence of a Change in Control.

   

  

 	3.7
      

   	 Statements.    The Company shall
     provide no less frequently than annually to each Participant a statement
     of the Participant’s total Account Balance including earnings
     credited thereto.

   

  

  ARTICLE
   4

 Unforeseeable
   Financial Emergencies;

 Withdrawal
   Election

  

 	 4.1
      

   	 Withdrawal
     Payout/Suspensions for Unforeseeable Financial Emergencies.  
       If the Participant experiences an Unforeseeable Financial
     Emergency, the Participant may petition the Committee to receive a partial
     or full payout from the Plan. The payout shall not exceed the lesser of
     the vested portion of the Participant’s Account Balance, calculated
     as if such Participant were receiving a Termination Benefit, or the amount
     reasonably needed to satisfy the Unforeseeable Financial Emergency. If,
     subject to the sole and absolute discretion of the Committee, the petition
     for a suspension and/or payout is approved, suspension shall take effect
     upon the date of approval and any payout shall be made within 60 days of
     the date of approval.

   

  

 	 4.2
      

   	 Withdrawal
     Election.    A Participant may elect, at any
     time, to withdraw all of the vested portion of his or her Account Balance,
     calculated as if such Participant were receiving a Termination Benefit,
     less a 15% withdrawal penalty (the net amount shall be referred to as the
     “Withdrawal Amount”). No partial withdrawals of that balance
     shall be allowed. The Participant shall make this election by giving the
     Committee advance written notice of the election in a form determined from
     time to time by the Committee. The penalty shall be equal to 15% of the
     vested portion of the Participant’s Account Balance determined
     immediately prior to the date of his or her election. Once the Withdrawal
     Amount is paid, the Participant’s participation in the Plan shall
     terminate and the Participant shall not be eligible to participate in the
     Plan in the future.

   

  

  ARTICLE
   5

 Retirement and
   Termination Benefits

  

 	 5.1
      

   	 Retirement
     Benefit.    A Participant who Retires shall
     receive, as a Retirement Benefit, his or her Account Balance.

   

  

 	 5.2
      

   	 Payment of
     Retirement Benefits.    A Participant, in
     connection with his or her commencement of participation in the Plan,
     shall elect on the Election Form to receive the Retirement Benefit in a
     lump sum or in equal monthly payments over a period of 60, 120, or 180
     months. The lump sum payment shall be made, or installment payments shall
     commence, on the date at or after his or her Retirement specified on the
     Election Form. The Participant may change these elections to an allowable
     alternative payout format by submitting a new Election Form to the
     Committee, provided that any such new Election Form is submitted at least
     3 years prior to the Participant’s Retirement. The Election Form most
     recently accepted by the Committee shall govern the payout of the
     Retirement Benefit.

   

  

 	 5.3
      

   	 Death Prior
     to Completion of Retirement Benefits.    If a
     Participant dies after Retirement but before the Retirement Benefit is
     paid in full, the Participant’s unpaid Retirement Benefit payments
     shall continue and shall be paid to the Participant’s Beneficiary (a)
     over the remaining number of months and in the same amounts as that
     benefit would have been paid to the Participant had the Participant
     survived, or (b) in a lump sum, if requested by the beneficiary and
     allowed at the sole and absolute discretion of the Committee. The lump sum
     payment will be the Participant’s Account Balance at the time of his
     or her death.

   

  

 	 5.4
      

   	 Termination
     Benefit.    If a Participant experiences a
     Termination of Employment prior to his or her Retirement, the Participant
     shall receive a Termination Benefit, which shall be equal to the vested
     portion of the Participant’s Account Balance. Such Benefit shall be
     payable in either a lump sum or in equal monthly payments over a period of
     60, 120, or 180 months, as selected by the Participant, in connection with
     his or her commencement of participation in the Plan, on the Election
     Form. The lump sum payment shall be made, or installment payments shall
     commence, on the date at or after his or her Termination of Employment
     specified on the Election Form. The Participant may change these elections
     to an allowable alternative payout format by submitting a new Election
     Form to the Committee, provided that any such new Election Form is
     submitted at least 3 years prior to the Participant’s Termination of
     Employment. The Election Form most recently accepted by the Committee
     shall govern the payout of the Termination Benefit.

   

  

 	 5.5
      

   	 Disability.    A Participant
     suffering a Disability shall continue to be considered employed and shall
     be eligible for the benefits provided for in Articles 4, 5, and 6 in
     accordance with the provisions of those Articles, unless the Committee
     determines during such Disability, in its sole and absolute discretion,
     that the Participant shall, for purposes of the Plan, be deemed to have
     experienced a Termination of Employment.

   

  

  ARTICLE
   6

 Pre-Retirement
   Survivor Benefit

  

 	 6.1
      

   	 Pre-Retirement Survivor Benefit.   
      If a Participant dies before he or she Retires, the Participant
     ’s Beneficiary shall receive a Pre-Retirement Survivor Benefit equal
     to the Participant’s Account Balance.

   

  

 	 6.2
      

   	 Payment of
     Pre-Retirement Survivor Benefits.    The
     Pre-Retirement Survivor Benefit shall be paid in the payment period
     previously elected by the Participant for the payment of the Termination
     Benefit, or, if the Participant was eligible to Retire at the time of his
     or her death, the Retirement Benefit. However, the Pre-Retirement Survivor
     Benefit payment may be made as a lump sum at the request of the
     Beneficiary and at the sole and absolute discretion of the Committee. The
     first (or only payment, if made in lump sum) shall be made within 60 days
     of the Committee’s receiving proof of the Participant’s
     death.

   

  

  ARTICLE
   7

 Beneficiary
   Designation

  

 	 7.1
      

   	 Beneficiary.    Each Participant
     shall have the right, at any time, to designate his or her Beneficiary
     (both primary as well as contingent) to receive any benefits payable under
     the Plan to a Beneficiary upon the death of a Participant. The Beneficiary
     designated under this Plan may be the same as or different from the
     beneficiary designation under any other plan of an Employer in which the
     Participant participates.

   

  

 	 7.2
      

   	 Beneficiary
     Designation; Change; Spousal Consent.    A
     Participant shall designate his or her Beneficiary by completing and
     signing the Beneficiary Designation Form, and returning it to the
     Committee or its designated agent. A Participant shall have the right to
     change a Beneficiary by completing, signing and otherwise complying with
     the terms of the Beneficiary Designation Form and the Committee’s
     rules and procedures, as in effect from time to time. Where required by
     law or by the Committee, in its sole and absolute discretion, if the
     Participant names someone other than his or her spouse as a Beneficiary, a
     spousal consent, in the form designated by the Committee, must be signed
     by that Participant’s spouse and returned to the Committee. Upon the
     acceptance by the Committee of a new Beneficiary Designation Form, all
     Beneficiary designations previously filed shall be canceled. The Committee
     shall be entitled to rely on the last Beneficiary Designation Form filed
     by the Participant and accepted by the Committee prior to his or her
     death.

   

  

 	 7.3
      

   	 Acknowledgment.    No designation
     or change in designation of a Beneficiary shall be effective until
     received, accepted and acknowledged in writing by the Committee or its
     designated agent.

   

  

 	 7.4
      

   	 No
     Beneficiary Designation.    If a Participant
     fails to designate a Beneficiary as provided in Sections 7.1, 7.2 and 7.3
     above, or, if all designated Beneficiaries predecease the Participant or
     die prior to complete distribution of the Participant’s benefits,
     then the Participant’s designated Beneficiary shall be his or her
     surviving spouse. If the Participant has no surviving spouse, the benefits
     remaining under the Plan shall be paid to the Participant’s
     estate.

   

  

 	 7.5
      

   	 Doubt as to
     Beneficiary.    If the Committee has any doubt
     as to the proper Beneficiary to receive payments pursuant to this Plan,
     the Committee shall have the right, exercisable in its sole and absolute
     discretion, to cause the Participant’s Employer to withhold such
     payments until this matter is resolved to the Committee’s
     satisfaction.

   

  

 	 7.6
      

   	 Discharge of
     Obligations.    The payment of benefits under
     the Plan to a Beneficiary shall fully and completely discharge all
     Employers and the Committee from all further obligations under this Plan
     with respect to the Participant, and that Participant’s Plan
     Agreement shall terminate upon such full payment of benefits.

   

  

  ARTICLE
   8

 Termination,
   Amendment or Modification

  

 	 8.1
      

   	 Termination.    Any Employer
     reserves the right to terminate the Plan at any time with respect to
     Participants employed by the Employer. Upon the termination of the Plan,
     the vested portion of a Participant’s Account Balance shall be paid
     out as though the Participant had experienced a Termination of Employment
     on the date of Plan termination, or, if Plan termination occurs after the
     date upon which the Participant was eligible to Retire, the Participant
     had Retired on the date of Plan termination, or, if Plan termination
     occurs after the Participant Retired and commenced (but not completed)
     distribution hereunder, benefits shall continue to the Participant
     pursuant to the terms hereof without regard to the termination. Prior to a
     Change in Control, an Employer shall have the right, in its sole and
     absolute discretion, and notwithstanding any elections made by the
     Participant, to pay all such benefits in a lump sum.

   

  

 	 8.2
      

   	 Amendment.
         Any Employer may, at any time, amend or modify
     the Plan in whole or in part with respect to that Employer; provided,
     however, that no amendment or modification shall be effective to decrease
     the vested portion of a Participant’s Account Balance, calculated as
     though the Participant had experienced a Termination of Employment as of
     the effective date of the amendment or modification, or, if the amendment
     or modification occurs after the date upon which the Participant was
     eligible to Retire, the Participant had Retired as of the effective date
     of the amendment or modification. In addition, no amendment or
     modification of the Plan shall affect the right of any Participant or
     Beneficiary who was eligible to or did Retire on or before the effective
     date of such amendment or modification to receive benefits in the manner
     he or she elected.

   

  

 	 8.3
      

   	 Effect of
     Payment.    The full payment of the applicable
     benefit under Articles 4, 5, 6, or 8 of the Plan shall completely
     discharge all obligations to a Participant under this Plan and the
     Participant’s Plan Agreement shall terminate.

   

  

  ARTICLE
   9

 Administration

  

 	 9.1
      

   	 Committee
     Duties.    This Plan shall be administered by
     a Committee which shall consist of individuals selected by the President
     and Chief Executive Officer of the Company. Members of the Committee may
     be Participants under this Plan. The Committee shall also have the
     discretion and authority to make, amend, interpret, and enforce all
     appropriate rules and regulations for the administration of this Plan and
     decide or resolve any and all questions including interpretations of this
     Plan, as may arise in connection with the Plan. Any Committee member must
     recuse himself or herself on any matter of personal interest to such
     member that comes before the Committee.

   

  

 	 9.2
      

   	 Agents.
         In the administration of this Plan, the
     Committee may, from time to time, employ agents and delegate to them such
     administrative duties as it sees fit and may from time to time consult
     with counsel who may be counsel to any Employer.

   

  

 	 9.3
      

   	 Binding
     Effect of Decisions.    The decision or action
     of the Committee with respect to any question arising out of or in
     connection with the administration, interpretation and application of the
     Plan and the rules and regulations promulgated hereunder shall be final
     and conclusive and binding upon all persons having any interest in the
     Plan.

   

  

 	 9.4
      

   	 Indemnity of
     Committee.    All Employers shall indemnify
     and hold harmless the members of the Committee against any and all claims,
     losses, damages, expenses or liabilities arising from any action or
     failure to act with respect to this Plan, except in the case of willful
     misconduct by the Committee or any of its members.

   

  

 	 9.5
      

   	 Employer
     Information.    To enable the Committee to
     perform its functions, each Employer shall supply full and timely
     information to the Committee on all matters relating to the compensation
     of its Participants, the date and circumstances of the Retirement,
     Disability, death or Termination of Employment of its Participants, and
     such other pertinent information as the Committee may reasonably
     require.

   

  

  ARTICLE
   10

 Claims
   Procedures

  

 	10.1
      

   	 Presentation
     of Claim.    Any Participant or Beneficiary of
     a deceased Participant (such Participant or Beneficiary being referred to
     below as a “Claimant”) may deliver to the Committee a written
     claim for a determination with respect to the amounts distributable to
     such Claimant from the Plan. If such a claim relates to the contents of a
     notice received by the Claimant, the claim must be made within 60 days
     after such notice was received by the Claimant. All other claims must be
     made within 180 days of the date on which the event that caused the claim
     to arise occurred. The claim must state with particularity the
     determination desired by the Claimant.

   

  

 	10.2
      

   	 Notification
     of Decision.    The Committee shall consider a
     Claimant’s claim within 60 days of the making of the claim, and shall
     notify the Claimant in writing:

   

  

 		(a)
      

   	 that the Claimant
     ’s requested determination has been made, and that the claim has been
     allowed in full; or

   

  

 		(b)
      

   	 that the Committee
     has reached a conclusion contrary, in whole or in part, to the Claimant
     ’s requested determination, and such notice must set forth in a
     manner calculated to be understood by the Claimant:

   

  

 		(i)
      

   	 the specific
     reason(s) for the denial of the claim, or any part of it;

   

  

 		(ii)
      

   	 specific
     reference(s) to pertinent provisions of the Plan upon which such denial
     was based;

   

  

 		(iii)
      

   	 a description of
     any additional material or information necessary for the Claimant to
     perfect the claim, and an explanation of why such material or information
     is necessary; and

   

  

 		(iv)
      

   	 an explanation of
     the claim review procedure set forth in Section 10.3 below.

   

  

 	10.3
      

   	 Review of a
     Denied Claim.    Within 60 days after
     receiving a notice from the Committee that a claim has been denied, in
     whole or in part, a Claimant (or the Claimant’s duly authorized
     representative) may file with the Committee a written request for a review
     of the denial of the claim. Thereafter, but not later than 30 days after
     the review procedure begins, the Claimant (or the Claimant’s duly
     authorized representative):

   

  

 		(a)
      

   	 may review
     pertinent documents;

   

  

 		(b)
      

   	 may submit written
     comments or other documents; and/or

   

  

 		(c)
      

   	 may request a
     hearing, which the Committee, in its sole discretion, may
     grant.

   

  

 	10.4
      

   	 Decision on
     Review.    The Committee shall render its
     decision on review promptly, and not later than 60 days after the filing
     of a written request for review of the denial, unless a hearing is held or
     other special circumstances require additional time, in which case the
     Committee’s decision must be rendered within 120 days after
     such

   

    

 		  date. Such
     decision must be written in a manner calculated to be understood by the
     Claimant, and it must contain:

   

  

 		(a)
      

   	 specific reasons
     for the decision;

   

  

 		(b)
      

   	 specific
     reference(s) to the pertinent Plan provisions upon which the decision was
     based; and

   

  

 		(c)
      

   	 such other matters
     as the Committee deems relevant.

   

  

 	10.5
      

   	 Legal
     Action.    A Claimant’s compliance with
     the foregoing provisions of this Article 10 is a mandatory prerequisite to
     a Claimant’s right to commence any legal action with respect to any
     claim for benefits under this Plan.

   

  

  ARTICLE
   11

 Trust

  

 	11.1
      

   	 Establishment
     of Trust.    The Employers shall establish the
     Trust and shall transfer over to the Trust such assets, if any, as the
     Committee determines, from time to time and in its sole discretion, are
     appropriate.

   

  

 	11.2
      

   	 Interrelationship of the Plan and the Trust.  
       The provisions of the Plan shall govern the rights of a
     Participant to receive distributions pursuant to the Plan. The provisions
     of the Trust shall govern the rights of the Participant and the creditors
     of the Employers to the assets transferred to the Trust. The Employers
     shall at all times remain liable to carry out their obligations under the
     Plan. The Employers’ obligations under the Plan may be satisfied with
     Trust assets distributed pursuant to the terms of the Trust.

   

  

  ARTICLE
   12

 Miscellaneous

  

 	12.1
      

   	 Unsecured
     General Creditor.    Participants and their
     Beneficiaries, heirs, successors and assigns shall have no legal or
     equitable right, interest or claim in any property or assets of an
     Employer. Any and all of an Employer’s assets shall be, and remain,
     the general, unpledged and unrestricted assets of the Employer. An Employer
     ’s obligation under the Plan shall be merely that of an unfunded and
     unsecured promise to pay money in the future.

   

  

 	12.2
      

   	 Employer
     ’s Liability.    An Employer’s
     liability for the payment of benefits shall be defined only by the Plan.
     An Employer shall have no obligation to a Participant under the Plan
     except as expressly provided in the Plan.

   

  

 	12.3
      

   	 Nonassignability.    Neither a
     Participant nor any other person shall have any right to commute, sell,
     assign, transfer, pledge, anticipate, mortgage, or otherwise encumber,
     transfer, hypothecate or convey in advance of actual receipt, the amounts,
     if any, payable hereunder, or any part thereof, which are, and all rights
     to which are expressly declared to be unassignable and non-transferable.
     No part of the amounts payable shall, prior to actual payment, be subject
     to seizure or sequestration for the payment of any debts, judgments,
     alimony or separate maintenance owed by a Participant or any other person,
     nor be transferable by operation of law in the event of a Participant
     ’s or any other person’s bankruptcy or insolvency.

   

  

 	12.4
      

   	 Coordination
     with Other Benefits.    The benefits provided
     for a Participant and Participant’s Beneficiary under the Plan are in
     addition to any other benefits available to such Participant under any
     other plan or program for employees of the Participant’s Employer.
     The Plan shall supplement and shall not supersede, modify or amend any
     other such plan or program except as may otherwise be expressly
     provided.

   

  

 	12.5
      

   	 Not a
     Contract of Employment.    The terms and
     conditions of this Plan shall not be deemed to constitute a contract of
     employment between any Employer and the Participant. Such employment is
     hereby acknowledged to be an “at will” employment relationship
     that can be terminated at any time for any reason, with or without cause,
     unless expressly provided in a written employment agreement. Nothing in
     this Plan shall be deemed to give a Participant the right to be retained
     in the service of any Employer, either as an employee or a director, or to
     interfere with the right of any Employer to discipline or discharge the
     Participant at any time.

   

  

 	12.6
      

   	 Furnishing
     Information.    A Participant or his or her
     Beneficiary will cooperate with the Committee by furnishing any and all
     information requested by the Committee and take such other actions as may
     be requested in order to facilitate the administration of the Plan and the
     payments of benefits hereunder.

   

  

 	12.7
      

   	 Terms.
         Whenever any words are used herein in the
     singular or in the plural, they shall be construed as though they were
     used in the plural or the singular, as the case may be, in all cases where
     they would so apply. The masculine pronoun shall be deemed to include the
     feminine and vice versa, unless the context clearly indicates
     otherwise.

   

  
 	 12.8
      

   	 Captions.
         The captions of the articles, sections and
     paragraphs of this Plan are for convenience only and shall not control or
     affect the meaning or construction of any of its provisions.

   

  

 	12.9
      

   	 Governing
     Law.    Subject to ERISA, the provisions of
     this Plan shall be construed and interpreted according to the laws of the
     State of California.

   

  

 	12.10
      

   	 Notice.
         Any notice or filing required or permitted to
     be given to the Committee under this Plan shall be sufficient if in
     writing and hand-delivered, or sent by registered or certified mail,
     to:

   

  

 		 Human Resources
     Department

   

 		 IT
     Corporation

   

 		 2790 Mosside
     Boulevard

   

 		 Monroeville,
     Pennsylvania 15146-2792

   

  

 		 Such notice shall
     be deemed given as of the date of delivery or, if delivery is made by
     mail, as of the date shown on the postmark on the receipt for registration
     or certification.

   

  

 		 Any notice or
     filing required or permitted to be given to a Participant under this Plan
     shall be sufficient if in writing and hand-delivered, or sent by mail, to
     the last known address of the Participant.

   

  

 	12.12
      

   	 Successors.    The provisions of
     this Plan shall bind and inure to the benefit of the Participant’s
     Employer and its successors and assigns and the Participant, the
     Participant’s Beneficiaries, and their permitted successors and
     assigns.

   

  

 	12.12
      

   	 Spouse’s
     Interest.    The interest in the benefits
     hereunder of a spouse of a Participant who has predeceased the Participant
     shall automatically pass to the Participant and shall not be transferable
     by such spouse in any manner, including but not limited to such spouse
     ’s will, nor shall such interest pass under the laws of intestate
     succession.

   

  

 	12.13
      

   	 Validity.
         In case any provision of this Plan shall be
     illegal or invalid for any reason, said illegality or invalidity shall not
     affect the remaining parts hereof, but this Plan shall be construed and
     enforced as if such illegal or invalid provision had never been inserted
     herein.

   

  

 	12.14
      

   	 Incompetent.    If the Committee
     determines in its discretion that a benefit under this Plan is to be paid
     to a minor, a person declared incompetent or to a person incapable of
     handling the disposition of that person’s property, the Committee may
     direct payment of such benefit to the guardian, legal representative or
     person having the care and custody of such minor, incompetent or incapable
     person. The Committee may require proof of minority, incompetency,
     incapacity or guardianship, as it may deem appropriate prior to
     distribution of the benefit. Any payment of a benefit shall be a payment
     for the account of the Participant and the Participant’s Beneficiary,
     as the case may be, and shall be a complete discharge of any liability
     under the Plan for such payment amount.

   

  

 	12.15
      

   	 Distribution
     in the Event of Taxation.    If, for any
     reason, all or any portion of a Participant’s benefit under this Plan
     becomes taxable to the Participant prior to receipt, a Participant may
     petition the Committee for a distribution of assets sufficient to meet the
     Participant’s tax liability (including additions to tax, penalties
     and interest). Upon the grant of such a petition, which grant shall not
     be

   

  

 		  unreasonably
     withheld, a Participant’s Employer shall distribute to the
     Participant immediately available funds in an amount equal to that
     Participant’s federal, state and local tax liability associated with
     such taxation (which amount shall not exceed the Participant’s vested
     Account Balance), which liability shall be measured by using that
     Participant’s then current highest federal, state and local marginal
     tax rate, plus the rates or amounts for the applicable additions to tax,
     penalties and interest. If the petition is granted, the tax liability
     distribution shall be made within 90 days of the date when the Participant
     ’s petition is granted. Such a distribution shall reduce the benefits
     to be paid under this Plan.

   

  

 	12.16
      

   	 Legal Fees to
     Enforce Rights After Change in Control.    The
     Company is aware that upon the occurrence of a Change in Control with
     respect to an Employer, the board of directors of such Employer (which
     might then be composed of new members) or a shareholder of such Employer,
     or of any successor corporation might then cause or attempt to cause the
     Employer or such successor to refuse to comply with its obligations under
     the Plan and might cause or attempt to cause the Employer to institute, or
     may institute, litigation seeking to deny Participants the benefits
     intended under the Plan. In these circumstances, the purpose of the Plan
     could be frustrated. Accordingly, if, following a Change in Control, it
     should appear to any Participant that an Employer or the Committee has
     failed to comply with any of its obligations under the Plan or any
     agreement thereunder or, if an Employer or any other person takes any
     action to declare the Plan void or unenforceable or institutes any
     litigation or other legal action designed to deny, diminish or to recover
     from any Participant or Beneficiary the benefits intended to be provided,
     then all Employers irrevocably authorize such person to retain counsel of
     his or her choice at the expense of the Employers to represent such person
     in connection with the initiation or defense of any litigation or other
     legal action, whether by or against an Employer, the Committee, or any
     director, officer, shareholder or other person affiliated with any of them
     or any successor thereto in any jurisdiction.

   

  

 	12.17
      

   	 Counterparts.    This instrument
     may be executed in one or more counterparts each of which shall be legally
     binding and enforceable.

   

  

 	12.18
      

   	 Small
     Payments.    Notwithstanding any other
     provision hereof, in the event that any Participant’s or Beneficiary
     ’s Account hereunder is less than $5,000, the Committee may, in its
     discretion, automatically pay such amount in one lump sum, rather than
     installments, but in all other respects in accordance with the terms of
     the Plan or an applicable Election Form.

   

  

    
        IN WITNESS WHEREOF, the Company has signed
   this amended and restated Plan document on behalf of all Employers as of
   January 1, 1999.

  

 		 IT
     CORPORATION,

   

 		 a California
     Corporation

   

  

 		 By: /s/ 
                 
                 
                 
                 
             

   

  

 		 Its: Vice
     President, AdministrationJAMES R. MAHONEY SEPARATION AGREEMENT

  Exhibit 10
    (iii) 38.

  

 SEPARATION
   AGREEMENT

  

    
        This Separation Agreement (hereinafter the
   “Agreement”) is entered into by James R. Mahoney (hereafter
   “Mahoney”), an individual, and The IT Group, Inc., a Delaware
   corporation, and its subsidiaries and affiliates (collectively referred to
   as the “Company”).

  

 RECITALS

  

    
        A.    WHEREAS,
   Mahoney has been employed by the Company, has held the position of Sr.
   Vice President of The IT Group, Inc. and IT Corporation, as well as serving
   as an officer and director of other affiliates and subsidiaries of the
   Company; and

  

    
        B.    WHEREAS,
   Mahoney and the Company wish to finally and forever resolve all matters
   between them relative to Mahoney’s employment and his entitlement to
   severance pay and other additional forms of compensation and benefits, and
   to provide for his resignation and the termination of the employment
   relationship;

  

    
        C.    NOW, THEREFORE,
   in consideration of the aforementioned recitals and the mutual covenants
   and conditions set forth below and in full settlement of any and all claims
   for allegedly lost compensation including, without limitation, all claims
   for back pay, severance pay, accrued Paid Time Off, continuation of health
   or other benefits or any other payment in the nature of compensation
   allegedly attributable to Mahoney’s employment by the Company, and any
   and all other claims which were or could have been raised by either party
   prior to the date of this Agreement, the sufficiency of which consideration
   is hereby acknowledged, Mahoney and the Company hereby agree as
   follows:

  

 AGREEMENT

  

    
        1.    Resignation and
   Termination of Employment.    Effective as of August
   21, 1999 (the “Resignation Date”), Mahoney resigns as an employee
   and officer of the Company, knowing that he is irrevocably giving up
   whatever rights he has, if any, to continued employment with the Company
   after the Resignation Date. The Company accepts Mahoney’s resignation,
   and has informed Mahoney prior to his execution of this Agreement that it
   will not permit Mahoney to withdraw his resignation. Mahoney shall perform
   no further duties for the Company after August 21, 1999 except such duties
   as may arise under the terms of this Agreement.

  

    
        2.    Salary 
      Effective as of August 21, 1999, the Company will pay to
   Mahoney the rate of his annual salary, less payroll deductions for taxes, in
   equal biweekly payments, until December 31, 1999 or the date that
   this Agreement has been accepted and signed by Mahoney and Company. All sums
   paid biweekly after the Resignation Date shall be credited against the
   Severance Pay described in Paragraph 3.

  

    
        3.    Severance Pay.
       The Company shall pay to Mahoney a severance payment
   of $340,000.00, less normal payroll deductions, in a lump sum, which shall
   be payable seven (7) days’ after the signature and acceptance of this
   Agreement by both Mahoney and Company. This severance payment is in lieu of
   and extinguishes all rights or claims to any other salary or severance
   right, or to any other payment except as expressly provided herein. Mahoney
   agrees that he has been fully paid for any and all accrued and vested wages
   and benefits to the date of resignation.

  

  

     
        4.    Paid Time Off
       Mahoney acknowledges that he has been paid all
   accrued salary and Paid Time Off, less normal payroll deductions, through
   the Resignation Date, except for the sum of $2,604.44 which shall be payable
   to Mahoney, less normal payroll deductions, with the Severance Pay provided
   in Paragraph “3.” Paid Time Off benefits shall cease to accrue
   after the Resignation Date.

  

    
        5.    Benefits 
      Mahoney’s eligibility to participate in the Company
   ’s benefit programs, including but not limited to disability and life
   insurance benefits, shall terminate effective August 21, 1999. The Company
   shall arrange to provide a maximum of fifty (50) months of executive health
   insurance coverage from the date of termination or until Mahoney is employed
   by a company or entity which offers health insurance coverage, or until
   Mahoney obtains any other health insurance coverage. Mahoney will notify the
   company when he becomes eligible for such health insurance coverage. In
   order to qualify for this executive health insurance coverage, Mahoney
   agrees to be an “employee on call.” Mahoney will be available to
   provide services to the Company as requested by the Company anytime during
   the initial thirty-two (32) month period or portion thereof. Mahoney will be
   paid for such services at his last salary rate, prorated over the time of
   performance. Mahoney will execute any necessary or appropriate documents to
   establish his status as an employee on call. In regard to the last eighteen
   (18) months of executive health insurance coverage, this coverage will be
   provided pursuant to COBRA and Mahoney will be responsible to pay the
   premiums for such coverage. Mahoney will also be provided any additional
   benefits that are agreed upon between the Company and Mr. Raymond Pompe,
   retroactive to the Resignation Date of August 21, 1999.

  

    
        6.    Expenses Related
   to Seeking Employment.    In further consideration
   of the promises and releases contained herein, Company agrees to provide to
   Mahoney the sum of $25,000.00 on account of outplacement services, which sum
   shall be payable seven (7) days’ after the execution and acceptance of
   this Agreement by both Mahoney and Company.

  

    
        7.    Retirement
   Plans.    Mahoney shall cease to participate in
   Company’s qualified and non-qualified retirement plans on August 21,
   1999, in accordance with the terms of those plans. For purposes of the
   Executive Stock Ownership and Executive Bonus Plans, it is acknowledged and
   agreed that Mahoney is considered as having retired. In lieu of any company
   payments to the 401K plan or restoration plan in the year 2000, Company will
   pay Mahoney a lump sum of $8,000.00. Company will also pay Mahoney the sum
   of $2,060.00, which represents the matching funds that were credited to his
   account at Fidelity after August 21, 1999, which will subsequently be
   debited to his account.

  

    
        8.   
    Bonuses.

  

    
        (a)    Management
   Incentive Plan.    Mahoney acknowledges that he has
   been paid all monies payable to him under the FY 1999 Management Incentive
   Plan (MIP), in lieu of any other bonus or Incentive Awards. Mahoney shall
   not be entitled any incentive awards for any period of time after August 21,
   1999.

  

    
        (b)    Executive Bonus
   Plan.    Mahoney is entitled to one performance
   bonus and one continuous service bonus, totaling $54,813.00. Such amount has
   been applied to reduce the loan balance due under Paragraph 10(c) of this
   Agreement, to the amount shown in such paragraph.

  Mahoney is entitled
   to be paid a tax gross-up on such bonus, in the amount of $51,410.00. In
   addition, Mahoney shall be eligible for further performances bonuses through
   August 21, 2000, if the Company’s stock price reaches the levels
   established in the Plan.

  

    
        9.    Stock Rights and
   Options    As provided in Paragraph “7”
   hereof, the parties acknowledge that for purposes of Mahoney’s Stock
   Options, he shall be recognized as having retired effective August 21,
   1999:

  

    
        (a)    The parties
   acknowledge that Mahoney has received stock options of the Company which
   were awarded to him on May 7, 1992, June 3, 1993, April 29, 1994, February
   25, 1997, May 13, 1997, May 26, 1998 and February 23, 1999, which may be
   exercised by Mahoney in accordance with, and subject to, the terms of such
   grants.

  

    
        (b)    The parties
   acknowledge that Mahoney has 2,500 shares of Restricted Stock. In
   consideration for the promises and releases contained herein, the Company
   agrees to lift the restrictions on these shares of stock.

  

    
        (c)    The parties
   acknowledge that Mahoney has received certain options pursuant to Company
   ’s November 17, 1998 Executive Stock Ownership Program. Such options,
   whether vested or nonvested, shall expire or remain eligible for vesting in
   accordance with the terms of the grants.

  

    
        10.    Loans: 
      The parties acknowledge that Mahoney has received a
   Relocation loan and two Stock Purchase Loans from Company:

  

    
        (a)    December 2, 1996
   Stock Purchase Loan    The balance of $100,000.00
   owing to the Company by Mahoney on the 1996 Stock Purchase Loan shall be
   repaid to Company in accordance with the terms of that Loan Agreement.
   Mahoney hereby authorizes Company to withhold the balance owing to Company
   from the Severance Payment provided for in Paragraph 3 of this
   Agreement.

  

    
        (b)    Relocation
   Loan    No interest shall accrue on account of the
   1998 Relocation Loan until August 21, 1999, after which interest shall be
   paid on the unpaid principal at prime rate plus 1% per annum. The Principal
   remaining due of Eighty Thousand and no/100 Dollars ($80,000.00) on this
   Relocation Loan shall be repaid by Mahoney in 8 annual installments of Ten
   Thousand and no/100 Dollars, plus interest ($10,000.00), payable on or
   before December 31st of each year, beginning on December 31, 1999. The
   outstanding principal balance of this Loan shall become immediately due and
   payable upon Mahoney’s failure to make payment of any installment when
   due. Mahoney shall have the right to prepay at any time all or any portion
   of the principal due under the Relocation Loan without penalty or premium.
   Mahoney agrees that the first Annual Installment in the amount of
   $12,603.84, including interest through February 28, 2000, of such Relocation
   Loan will be paid within seven (7) days’ after signing this
   Agreement.

  

    
        (c)    November 17,
   1998 Executive Stock Ownership Program Loan    The
   balance owing to the Company by Mahoney on the Executive Stock Ownership
   Loan shall be payable by Mahoney on the Resignation Date, in accordance with
   the terms of that loan and the Executive Stock Ownership Program. This Loan
   is due thirteen (13) months after termination of employment,
   i.e.,

  September 19, 2000.
   The amount due will be $107,524.00, and Mahoney agrees to pay that amount
   due on that date. Mahoney may pay the balance due earlier than September 19,
   2000, and his total payment will be reduced by the amount of the interest
   that would accrue between the early payment date and September 19,
   2000.

  

    
        11.    Deferred
   Compensation    Mahoney shall be entitled to receive
   all sums vested and payable to him under the Company Deferred Compensation
   Plan and the Company Restoration Plan, pursuant to Mahoney’s elections
   and the terms of those benefit plans.

  

    
        12.    Car
   Allowance.    No car allowance shall be granted by
   Company to Mahoney after August 21, 1999.

  

    
        13.    Other
   Expenses    Mahoney agrees to reimburse Company for
   all personal expenses charged to the Company, and Company agrees to
   reimburse Mahoney for any reasonable expenses incurred by Company at Company
   ’s request, in accordance with Company policy.

  

    
        14.    Sole
   Entitlement.    Mahoney agrees that his sole
   entitlement to compensation, payments of any kind, monetary and/or
   nonmonetary benefits and/or perquisites with respect to his employment with,
   his services rendered to, and all other matters between Mahoney and the
   Company, is as expressly set forth in this Agreement.

  

    
        Mahoney and the Company expressly agree that
   the Employment Agreement dated November 20, 1996, between Mahoney and the
   Company is hereby terminated and is of no force and effect whatsoever. Any
   provisions of such Employment Agreement, including but not limited to
   Paragraphs 5, 6 and Paragraph 17 thereof, which are or may be claimed to be
   inconsistent with this termination or Mahoney’s resignation, are hereby
   waived by both parties.

  

    
        15.    Releases by
   Mahoney.    Mahoney does hereby and forever release
   and discharge the Company and the past and present parent, subsidiary and
   affiliated corporations of the Company as well as the successors,
   shareholders, officers and directors of corporate shareholders, officers,
   directors, heirs, predecessors, assigns, agents, employees, attorneys and
   representatives of each of them, past or present, from any and all cause or
   causes of action, actions, judgments, liens, indebtedness, damage, losses,
   claims, liabilities, and demands of whatsoever kind or character, known or
   unknown, suspected to exist or not suspected to exist, anticipated or not
   anticipated, whether or not heretofore brought before any state or federal
   court or before any state or federal agency or other governmental entity,
   whether statutory or common law, Including without limitation on the
   generality of the foregoing, any and all claims, demands or causes of action
   attributable to, connected with, or incidental to the employment of Mahoney
   by the Company, the separation of that employment and any dealings between
   the parties concerning Mahoney’s employment or any other matter
   existing prior to the date of execution of this Agreement, excepting only
   those obligations to be performed hereunder. This release is intended to
   apply to any claims arising from federal, state or local laws which prohibit
   discrimination on the basis of race, national origin, sex, religion, age,
   marital status, pregnancy, disability, disability, ancestry, sexual
   orientation, family or personal leave or any other form of discrimination,
   or to laws such as workers’ compensation laws, which provide rights and
   remedies for injuries sustained in the workplace or any common law claims of
   any kind, including, but not limited

  to, breach of
   privacy, misrepresentation, defamation, wrongful termination, tortious
   infliction of emotional distress, loss of consortium and breach of fiduciary
   duty, violation of public policy and any other common law claim of any kind
   whatever, any claims for severance pay, sick leave, family leave, vacation,
   life insurance, bonuses (including, but not limited to, bonuses payable
   under the FY 1999 Management Incentive Plan), health insurance, disability
   or medical insurance or any other fringe benefit or compensation, and all
   rights and claims arising under the Employee Retirement Income Security Act
   of 1974 (“ERISA”), or pertaining to ERISA regulated
   benefits.

  

    
        16.    Continuing
   Fiduciary Obligations and Unfair Competition.

  

    
        (a)    Mahoney
   acknowledges that he is obligated by contract and by operation of law to
   maintain the confidentiality of the Company’s trade secrets and other
   confidential information (i.e., information designated or commonly known as
   confidential) not publicly known, and covenants and agrees that he shall not
   use or divulge, disclose, or communicate to any other person, firm, or
   corporation, any of the Company’s trade secrets or confidential
   information except as disclosure shall be compelled by judicial process.
   Nothing contained in this paragraph is intended to preclude Mahoney from
   working for a competitor or from using non-trade secrets and/or
   non-confidential information learned by him in the course of his employment
   with the Company.

  

    
        (b)    Mahoney agrees that
   he shall not, for a period of one year from August 21, 1999, directly or
   indirectly, by or for himself, or as the agent of another, or through others
   as an agent, directly (i) recruit, solicit or induce, or attempt to induce
   any officer or employee (other than employees engaged in secretarial
   functions) of Company or any of its affiliates, to leave the Company’s
   employ or otherwise interfere with the employment relationship between any
   such person and the Company or any of its affiliates or (ii) hire any such
   person recruited in violation of (i) immediately above. Nothing herein shall
   preclude Mahoney or any other person, firm or corporation which whom he is
   associated, from hiring any officer or employee of Company or any of its
   affiliates, if such officer or employee elects to apply for such employment
   of his or her own volition.

  

    
        (c)    Mahoney agrees that
   he has delivered to Company all correspondence, drawings, manuals, letters,
   notes, notebooks, reports, programs, plans, proposals, financial documents,
   or any other documents concerning the Company’s customers, business
   plans, marketing strategies, products or processes which are Company
   property, or which are non-public or which contain proprietary information
   or trade secrets.

  

    
        17.    Prohibition
   Against Defamation and Willful Disparagement.    The
   Company and Mahoney agree that they will not orally or in writing defame,
   criticize, or willfully disparage, or in any manner undermine the reputation
   of the other, or in the case of the Company, any subsidiary or affiliated
   corporation of the company, the Company itself, or any employee, officer or
   director of the Company or any subsidiary or affiliate of the Company,
   except as required by compulsion of law to truthfully testify. Company
   agrees to provide to Mahoney a letter of reference, in the form attached
   hereto. It is the intention of the parties that any inquiries from potential
   employers of Mahoney as to Mahoney’s job performance, his interpersonal
   and other management skills and the reason for his departure from employment
   at the Company be responded to solely by the Human Resources Department of
   Company in accordance with Company policies. In any such communication to
   a

  prospective employer
   of Mahoney, the reason for Mahoney’s departure shall be given as a
   consolidation of management functions.

  

    
        18.    Cooperation.
       Mahoney agrees to cooperate with the company in
   connection with any future or currently pending litigation, including
   without limitation, by making himself available to testify in actions as
   reasonably requested by the Company. In the event that Mahoney is required
   to spend a significant amount of time in any such activities, he shall be
   compensated at an hourly rate of $250 per hour, except that Mahoney shall
   not receive such compensation in any case or matter in which Mahoney is
   personally named as a defendant. In the event Mahoney is named as a
   defendant in any litigation or other proceeding involving the Company where
   Mahoney is required to defend himself with respect to events which relate to
   or occurred during his employment with the Company, to the extent that
   Mahoney is not otherwise covered by any insurance policy maintained by the
   Company, the Company shall be responsible for providing a defense to, and
   indemnify, Mahoney, to the same extent and under the same conditions as if
   he were an officer of the Company.

  

    
        19.    Legal Advice.
       Each party has received independent legal advice
   from his or its attorneys with respect to the advisability of making the
   settlement provided for herein, with respect to the advisability of
   executing this Agreement and with respect to its meaning. Mahoney
   specifically acknowledges that his release includes any unknown,
   unsuspected, and/or unanticipated claims that he may have, whether or not
   they may be material to this Separation Agreement and the releases it
   contains. To the maximum extent permitted by law, Mahoney waives any and all
   state and federal laws to the contrary.

  

    
        20.    Factual
   Investigation.    Each party to this Agreement has
   made such investigation of the facts pertaining to the matters resolved by
   this Agreement and of all the matters pertaining thereto as he or it deems
   necessary. Each party hereto is aware that he or it may hereafter discover
   claims or facts in addition to or different from those he or it now knows or
   believes to be true with respect to the matters resolved herein.
   Nevertheless, it is the intention of each party to fully, finally and
   forever settle and release all such matters and all claims relative thereto
   which may exist or may heretofore have existed between them.

  

    
        21.   
    Confidentiality.    This Agreement and its
   provisions are intended to be confidential. Accordingly, except as may be
   required to satisfy the Company’s public disclosure or financial or
   accounting requirements or as may be compelled by court order, neither the
   Company, its officers and directors, nor Mahoney shall disclose or publicize
   to any person, firm or corporation, the terms of this Agreement without the
   consent of the other party. As reasonably necessary, Mahoney may discuss
   this Agreement with his wife, attorney, financial advisor, tax advisor,
   benefit advisor or compensation advisor and Company may discuss this
   Agreement with its attorneys, officers, directors and managers provided,
   however, that each agrees to be bound by the terms of this paragraph to keep
   the information confidential. Mahoney may also discuss this Agreement with
   James G. Kirk, and Ann Harris, so long as in each instance they are Company
   employees at the time of Mahoney’s discussions, and as necessary with
   any employer or prospective employer.

  

    
        22.    Assignment.
       Each of the parties represents and warrants that he
   or it has not heretofore assigned, transferred or granted or purported to
   assign, transfer or grant any claims, matters,

  demands or causes of
   action herein released, disclaimed, discharged or terminated, and agrees to
   indemnify and hold harmless any other party from and against any and all
   costs, expense, loss or liability incurred as a consequence of any such
   assignment.

  

    
        23.    Recitals and
   Paragraph Headings.    Each term of this Agreement
   is contractual and not merely a recital. All recitals are incorporated by
   reference into this Agreement. Captions and paragraph headings are used
   herein for convenience only, are no part of this Agreement and shall not be
   used in interpreting or construing it.

  

    
        24.    Additional
   Documents.    The parties will execute all such
   further and additional documents and undertake all such other actions as
   shall be reasonable, convenient, necessary or desirable to carry out the
   provisions of this Agreement.

  

    
        25.    No
   Admissions.    This Agreement effects the settlement
   of claims which are denied, disputed and/or contested and nothing contained
   herein shall be construed as an admission by any party hereto of any
   liability of any kind to any other party. Each of the parties hereto denies
   any liability in connection with any claim and intends merely to avoid the
   uncertainties and costs of litigation and buy his or its peace.

  

    
        26.    Entire
   Agreement.    This Agreement constitutes a single
   integrated contract expressing the entire agreement of the parties with
   respect to the subject matter hereof and supersedes all prior and
   contemporaneous oral and written agreements and discussions with respect to
   the subject matter hereof. There are no other agreements, written or oral,
   express or implied, between the parties hereto, concerning the subject
   matter hereof, except as set forth herein. This Agreement may be amended
   only by an agreement in writing.

  

    
        27.    Binding
   Effect.    This Agreement is binding upon and shall
   inure to the benefit of the parties hereto, their heirs, assignees and
   successors in interest (including successors in any reorganization or merger
   with any other entity).

  

    
        28.    Construction of
   Agreement.    Each party has cooperated in the
   drafting and preparation of this Agreement, and, accordingly, in any
   construction or interpretation of this Agreement, the same shall not be
   construed against any party by reason of the source of drafting.

  

    
        29.    Costs and
   Attorneys’ Fees.    Each party is to bear its
   own costs and attorneys’ fees incurred in connection with the matters
   resolved by this Agreement and in connection with the negotiation and the
   preparation of this Agreement. However, in the event of litigation or
   arbitration relating to or for the enforcement of this Agreement, the
   prevailing party shall be entitled to reasonable attorneys’ fees and
   costs actually incurred.

  

    
        30.    Taxes. 
      Mahoney acknowledges his responsibility for any and all
   taxes due with respect to the sums paid to him under this Agreement,
   represents that he has received independent advice concerning his tax
   obligations, and states that he has not relied upon representations or
   advice, if any, of the Company or their counsel concerning the taxable or
   nontaxable nature of the sums payable hereunder. Mahoney agrees that he will
   indemnify and hold the company harmless from any

  and all claims for
   taxes, penalties and/or interest based upon the payments to be made under
   this Agreement.

  

    
        31.    No Waiver.
       The failure to enforce at any time any of the
   provisions of this Agreement, or to require at any time performance by the
   other party of any of the provisions hereof, shall in no way be construed to
   be a waiver of such provisions or to affect either the validity of this
   Agreement or any part hereof or the right of either party thereafter to
   enforce each and every provision in accordance with the terms of this
   Agreement.

  

    
        32.    Arbitration.
       Except in connection with an action by the Company
   or Mahoney for injunctive or other equitable relief, any controversy,
   dispute, or claim between the parties of this Agreement or any party
   released pursuant to it, including any claim arising out of or in connection
   with the interpretation, performance or breach of this Agreement, shall be
   resolved exclusively by arbitration before a single arbitrator conducted in
   Washington, D.C., in accordance with the rules of the American Arbitration
   Association for the resolution of Employment Disputes. This agreement to
   resolve any disputes by binding arbitration shall extend to claims against
   any shareholder of the Company, any subsidiary or affiliates of the Company,
   any officers, directors, employees, or agents of the Company, or any of the
   above, and shall apply as well to claims arising out of state and federal
   statutes and local ordinances as well as to claims arising under the common
   law. The parties intend that this Agreement to arbitrate be valid,
   enforceable and irrevocable and that it provide the exclusive remedy with
   respect to all disputes within its scope.

  

    
        33.    Mahoney’s
   Understanding.    Mahoney states that he has
   carefully read this Agreement, which it has been fully explained to him by
   his attorney, that he fully understands its final and binding effect and
   understands that he is releasing certain rights and entitlements, that the
   only promises made to him to sign the Agreement are those stated above, and
   that he is signing this Agreement voluntarily.

  

    
        34.    Age
   Discrimination in Employment Act Waiver.    The
   waiver given below is given only in exchange for consideration which is in
   addition to anything of value to which Mahoney is already entitled, the
   sufficiency of which is hereby acknowledged by Mahoney. The waiver set forth
   below does not waive rights or claims which may arise after the date of
   execution of this Agreement. Mahoney acknowledges that (i) this entire
   Agreement is written in a manner calculated to be understood by Mahoney;
   (ii) that by reviewing this Agreement or drafts thereof he has been advised
   in writing to consult with an attorney before executing this Agreement, and
   (iii) he was given a period of 21 days within which to consider the
   Agreement, and (iv) to the extent he executes this Agreement before the
   expiration of the 21-day period, he does so knowingly and voluntarily and
   only after consulting with an attorney. Mahoney shall have the right to
   cancel and revoke this Agreement during a period of 7 days following his
   execution of the Agreement and this Agreement shall not become effective,
   and no money shall be paid hereunder until the expiration of such 7-day
   period. Mahoney or his counsel shall notify the Company’s counsel in
   writing of the date of the execution of this Agreement and shall send by fax
   ((412)858-3997) to Company’s counsel a signed and dated copy of the
   signature page signed by Mahoney. The 7-day period of revocation shall
   commence upon the date of Mahoney’s execution of this agreement. Within
   the 7-day revocation period, Mahoney or his counsel shall forward to the
   Company and Company’s counsel a copy of this Agreement fully executed
   by Mahoney. In order to revoke this Agreement, Mahoney shall deliver to the
   Company,

  prior to the
   expiration of said 7-day period, a written notice of
   cancellation.

  

    
        In addition to the release set forth at
   Paragraph 15 hereof, Mahoney hereby voluntarily and knowingly waives all
   rights or claims arising under the Federal Age Discrimination in Employment
   Act.

  

    
        IN WITNESS WHEREOF, the parties hereto
   have executed this Agreement on the dates and years written
   below.

  

 EXECUTION AND
   ACKNOWLEDGMENT BY JAMES R. MAHONEY

  

    
        I received this Separation Agreement on
   February 28, 2000. I understand that I have twenty-one (21) days thereafter
   within which to consider this Agreement with my legal counsel. I freely
   choose to sign this Separation Agreement on February 28, 2000. I understand
   that I will have seven (7) days thereafter within which to revoke my
   acceptance of this Separation Agreement and that the Separation Agreement
   shall not be effective under the expiration of that seven (7) day period.
   Executed at Washington, DC, this 28th day of February, 2000.

  

 		 /s/ JAMES R.
     MAHONEY

   

 		 
 

 		 JAMES R.
     MAHONEY

   

  

 EXECUTION AND
   ACKNOWLEDGMENT BY THE IT GROUP, INC.

  

 Dated:   
               
               
               
               
             ,
   2000

 At:   
        Monroeville, Pennsylvania

  

 		 THE IT GROUP,
     INC.

   

  

 		 By:  
       /s/ ANN P. HARRIS

   

 		 

   

 		 Duly Authorized ANN
     P. HARRIS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]