Document:

exv10w2

 

Exhibit 10.2

AMERICAN MANAGEMENT SYSTEMS, INCORPORATED

OUTSIDE DIRECTORS STOCK-FOR-FEES PLAN

(as approved by the stockholders on May 18, 1995)

(amended and restated as of February 27, 2004)

ARTICLE I. PURPOSE OF THE PLAN

     The Outside Directors Stock-for-Fees Plan (the “Plan”) is intended to
provide a means by which individuals who serve as outside directors of American
Management Systems, Incorporated (the “Corporation”) may increase their
proprietary interest in the Corporation by electing to receive the annual
retainer and other fees earned in connection with service as a director in the
form of the Corporation’s $0.01 par value common stock (the “Common Stock”)
rather than in cash.

ARTICLE II. ELIGIBILITY

     Each member of the Board of Directors of the Corporation who is not and
has not been an officer or employee of the Corporation (“Outside Director”)
shall be eligible to participate in the Plan.

ARTICLE III. SHARES SUBJECT TO PLAN

     The number of shares authorized to be issued pursuant to the Plan is
150,0001 shares of the Corporation’s Common Stock subject to adjustment as
provided herein. Those shares may consist, in whole or in part, of authorized
and unissued shares or shares previously acquired or to be acquired by the
Corporation and held in treasury. In the event of any stock dividend, stock
split or other event that is functionally equivalent to a stock split or stock
dividend, the number of remaining shares authorized for issuance under this
Plan shall be adjusted proportionately.

ARTICLE IV. ELECTION TO RECEIVE STOCK

     Each Outside Director shall be permitted to receive the remuneration
otherwise payable to the Outside Director as an annual retainer and for
attending meetings of the Board of Directors and meetings of the committees of
the Board of Directors (“Director’s Fees”) in the form of Common Stock rather
than cash in accordance with the following provisions:

	 	(a)	 	Election to Participate. Each Outside Director shall
have the right to elect to receive Director’s Fees in the
form of Common Stock rather than cash by tendering an
irrevocable written election to the Secretary of the
Corporation pursuant to which all Director’s Fees otherwise
payable to the

1 As adjusted to reflect a 3-for-2 split of the Common Stock effective January 5, 1996

 

 

Outside Director shall be paid in the form of Common Stock
as provided in (b) below. Each Outside Director may elect
to have one-half or all of the Director’s Fees paid in the
form of Common Stock. Such election shall become effective
six (6) months after its delivery to the Secretary of the
Corporation by the Outside Director. Such election shall
remain in effect until the earlier of (i) the date six (6)
months after such Outside Director shall have delivered to
the Secretary of the Corporation irrevocable written notice
that his or her participation shall cease as of the date six
months following delivery of the notice, or (ii) the date on
which such Outside Director terminates as a member of the
Board of Directors by reason of resignation, non-reelection,
death, or disability. Any Outside Director who having
terminated participation in the Plan or having failed to
elect to participate in the Plan may elect to participate in
the Plan as of the date six (6) months following delivery of
irrevocable written notice of such election to the Secretary
of the Corporation. An Outside Director who does not elect
to have Director’s Fees paid in Common Stock shall receive
his or her remuneration in cash at such times that such
remuneration is otherwise due.

	 	(b)	 	Issuance of Shares. If an Outside Director elects to
receive payment of Director’s Fees in the form of Common
Stock, such Common Stock shall be issued as soon as
practicable after the determination date (as hereinafter
defined). The number of shares of Common Stock to be issued
to such Outside Director shall be determined by dividing:

	 	(i)	 	the remuneration otherwise payable to the
Outside Director, by
	 
	 	(ii)	 	the closing price of the Corporation’s
Common Stock on the determination date (or, if the
Corporation’s Common Stock is not traded on such date,
on the trading day immediately preceding the
determination date), rounding up or down any fractional
share to the nearest whole share.

     The determination date shall be the last day of each calendar quarter in
which a relevant meeting of the Board of Directors or any committee thereof is
held and for which Director’s Fees are payable.

	 	(c)	 	Restrictions on Shares. Shares of Common Stock issued
under this Plan shall be free of any restrictions except for
restrictions applicable under the Securities Exchange Act of
1934, as amended.

ARTICLE V. AMENDMENT AND TERMINATION

     The Board of Directors of the Corporation, or the Compensation Committee
thereof, may amend, modify, alter or terminate the Plan; provided, however,
that without the approval of the stockholders of the Corporation:

 

 

	 	(a)	 	the number of Shares which may be reserved for
issuance under the Plan may not be increased except as
provided in Article III hereof;
	 
	 	(b)	 	the class of individuals who are eligible to
participate in the Plan shall not be modified; and
	 
	 	(c)	 	the benefits accruing to Outside Directors under the
Plan shall not be increased materially;

provided, further, that the Plan may not be amended, modified, or altered more
than once in any six (6) month period.

ARTICLE VI. MISCELLANEOUS

	 	(a)	 	This Plan shall be administered by the Compensation
Committee of the Board of Directors.
	 
	 	(b)	 	The Plan shall be construed in accordance with and
governed by the laws of the State of Delaware.
	 
	 	(c)	 	This Plan shall become effective on the date on which
it is approved by the stockholders of the Corporation.exv10w12

 

Exhibit 10.12

AMERICAN MANAGEMENT SYSTEMS, INCORPORATED

CHANGE IN CONTROL AGREEMENT

ARTICLE I : DEFINITIONS

     The following capitalized words and phrases as used in this Agreement
shall have the following meanings, unless a different meaning is clearly
required by the context:

     1.1 Agreement. The American Management Systems, Incorporated Change in
Control Agreement, as set forth in this document and as amended from time to
time.

     1.2 Board. The Board of Directors of AMS.

     1.3 Change in Control. The first of the following events to occur:

         (a) Any person or group (within the meaning of Sections
13(d) and 14(d) of the Securities Exchange Act of 1934 (the
“Act”)), other than AMS or a trustee or other fiduciary holding
securities under an employee benefit plan of AMS or a
corporation owned directly or indirectly by the stockholders of
AMS in substantially the same proportions as their ownership of
stock of AMS, becomes the beneficial owner (within the meaning
of Rule 13 (d)(3) under the Act), directly or indirectly, of
securities representing 50 percent or more of the combined
voting power of AMS’s then-outstanding securities entitled
generally to vote for the election of directors;

         (b) AMS’s stockholders approve an agreement to merge or
consolidate with another corporation (other than a
majority-controlled subsidiary of AMS) unless AMS’s
stockholders immediately before the merger or consolidation are
to own more than two-thirds (66-2/3 percent) of the combined
voting power of the resulting entity’s voting securities
entitled generally to vote for the election of directors;

         (c) AMS’s stockholders approve an agreement (including,
without limitation, an agreement of liquidation) to sell or
otherwise dispose of all (100 percent) of the business or
assets of AMS; or

 

 

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         (d) During any period of two (2) consecutive years,
individuals who, at the beginning of the period, constituted
the Board cease for any reason to constitute at least a
majority thereof, unless the election or the nomination for
election by AMS’s stockholders of each new director was
approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of the
period (either by a specific vote or by approval of the proxy
statement of AMS in which such person is named as a nominee for
director, without objection to such nomination).

     However, no Change in Control shall be deemed to have occurred by reason
of (i) any event involving a transaction in which you or a group of persons or
entities with whom or with which you act in concert, acquire(s), directly or
indirectly, 50 percent or more of the combined voting power of AMS’s
then-outstanding voting securities or the business or assets of AMS; or (ii)
any event involving or arising out of a proceeding under Title 11 of the United
States Code or the provisions of any future United States bankruptcy law, an
assignment for the benefit of creditors or an insolvency proceeding under state
or local law.

     This Agreement, once triggered by a Change in Control event, shall apply
with respect to that Change in Control event only and not with respect to any
later Change in Control event.

     1.4 Compensation. The sum of your annual base salary plus your target
annual bonus in effect either a) immediately before the Change in Control, or
b) on your Termination date, whichever is greater.

     1.5 AMS. American Management Systems, Incorporated, a corporation
organized under the laws of the State of Delaware, and any successor by merger
or consolidation with another corporation in which AMS’s stockholders
immediately before the merger or consolidation are to own more than two-thirds
(66-2/3 percent) of the combined voting power of the resulting entity’s voting
securities entitled generally to vote for the election of directors.

     1.6 Successor. The entity or entities that succeed, directly or
indirectly, to the business of AMS, whether through one or more mergers,
consolidations, transfers of assets, reorganizations, asset sales,
liquidations, dissolutions or other similar transactions.

     1.7 Employer. Includes both AMS and its Successor(s).

     1.8 Effective Date. This Agreement shall be effective as of October 1,
2003.

     1.9 Good Reason. Any of the following occurring on or after a Change in
Control:

 

 

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         (a) an involuntary and significant reduction in the nature
or scope of your authority or the duties that you perform (this
does not include being given new authority or assigned new
duties that are substantially comparable to your previous
authority and duties);

         (b) a significant reduction in your annual base salary
and/or target annual bonus percentage (except as part of a
general reduction that applies to other similarly-situated
employees); or

         (c) a significant reduction in your employee benefits as a
whole (other than a change made as part of a program or plan
modification that applies generally to you and the other
persons then party to agreements identical to this Agreement).

The foregoing notwithstanding, Good Reason shall not be considered to exist
unless you give the Employer written notice setting forth in reasonable detail
the facts and circumstances constituting Good Reason within 30 days after you
learn of the circumstances. The Employer shall have 15 days after receipt of
that notice and before the effective date of your resignation to rectify those
circumstances. If the Employer timely rectifies the circumstances, Good Reason
shall not exist based on those circumstances and your resignation shall be
deemed withdrawn.

     1.10 Cause. Any of the following:

         (a) Conviction of, or the entry of a plea of guilty or
nolo contendere to, 1) any felony, or 2) any misdemeanor
involving moral turpitude;

         (b) Fraud, misappropriation or embezzlement;

         (c) Willful failure, gross negligence or gross misconduct,
including, but not limited to, gross insubordination, in the
performance of your assigned duties for the Employer;

         (d) Breach of a fiduciary duty to the Employer; or

         (e) Any act or omission by you that reflects adversely on
the integrity and reputation for honesty and fair dealing of
the Employer or has a material detrimental effect on the
Employer’s financial condition, position or business.

     1.11 Disability. For purposes of this Agreement, your employment will be
considered to have been terminated due to Disability if, but only if, you
qualify for total disability benefits under a long-term disability policy
provided by the Employer.

 

 

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     1.12 Inability to Work. Your substantial inability to perform one or more
essential functions of your job for at least 90 days in any 12-month period.

     1.13 Term. The initial term of this Agreement shall end on September 30,
2004. On that date, and on each anniversary thereafter, unless AMS delivers
written notice to you of its intention not to extend the Agreement at least 60
days before such anniversary date, the term of this Agreement shall
automatically be extended for one additional year. Notwithstanding the
foregoing, if a Change in Control occurs during the initial term of this
Agreement, the Agreement’s initial term is automatically extended one year
beyond the date of the Change in Control. The Change in Control date would
then become the basis for determining the anniversary date referenced above.

     1.14 Termination Date. The date that you cease to be an employee of the
Employer; provided that for purposes of this Agreement, if you are on a bona
fide unpaid leave status your Termination Date shall not be deemed to occur
until either you or the Employer terminate your leave status.

ARTICLE II : SEVERANCE BENEFIT

     If (a) your employment with the Employer is terminated, either (i) by the
Employer for any reason other than for Cause or Disability, or (ii) by you for
Good Reason that did not result from Cause or Inability to Work; (b) your
Termination Date occurs during the term of this Agreement; (c) your Termination
Date occurs during the one (1) year period beginning on the date of the Change
in Control; and (d) you timely execute a release in the form provided by the
Employer similar to the release attached hereto, the Employer shall pay to you
a benefit equal to your Compensation. Such benefit shall be paid in a lump sum
in cash as soon as reasonably practicable after the later of 1) your
Termination Date, 2) your execution of such release, or 3) the last day for
revoking such release.

     It is the intent of the parties that this severance benefit, if payable,
shall be inclusive of, and not in addition to, any other source of separation
payments. To that end, you agree that if you become eligible for the severance
benefit provided under this Agreement that you will not be eligible for any
other separation payments (including payments in lieu of notice) under any
other policy, practice, severance plan, benefit plan or agreement. Further,
you agree that if severance, redundancy, pay-in-lieu of notice or other similar
payments are required by law in your particular locale, the payment to you
pursuant to this Agreement shall be reduced by the amount of those
legally-required payments.

     If your employment with the Employer terminates due to your Death, this
Agreement shall terminate and no severance benefit will be due under this
Agreement. If your Termination Date does not occur during the term of this
Agreement, and does not occur during the one (1) year period beginning on the
date of the Change in Control, this

 

 

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Agreement shall not apply, regardless of the reason for the termination
and regardless of any claimed connection between the termination and a Change
in Control.

ARTICLE III : MISCELLANEOUS

     3.1 Amendments. The Board shall have complete power and authority to amend
or modify this Agreement at any time, provided that no such action by the Board
shall adversely affect your rights under this Agreement.

     3.2 Assignment and Alienation. Neither you nor any other person shall
have the right to assign, alienate, transfer, encumber, or otherwise subject to
lien the benefit provided under this Agreement.

     3.3 Benefit Solely from General Assets. The benefit provided under this
Agreement shall be paid solely from the general assets of the Employer.
Nothing herein shall be construed to require the Employer to maintain any fund
or to segregate any amount for your benefit or the benefit of any other person,
and neither you nor any other person shall have any claim against, right to, or
security or other interest in any fund, account, or other specific asset of the
Employer from which any payment pursuant to this Agreement may be made.

     3.4 Complete Statement of Agreement. This Agreement constitutes the
entire Agreement of the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements and understandings, whether written
or oral, relating to the subject matter hereof.

     3.5 Death. If you become entitled to receive a benefit under this
Agreement while alive but die before receiving the benefit, the Employer shall
pay the benefit to which you were entitled to your surviving spouse, or to your
estate if there is no surviving spouse.

     3.6 Governing Law. This Agreement shall be construed, administered, and
enforced in accordance with the laws applicable to contracts executed in and to
be entirely performed within the Commonwealth of Virginia.

     3.7 Headings. The headings and subheadings of this Agreement have been
inserted for convenience of reference only and shall not affect the
construction of the provisions thereof.

     3.8 Internal Revenue Code Section 280G.

For employees subject to payment of U.S. taxes, the payment provided under this
Agreement shall be provided without regard to any limitations imposed by
Section 280G or 4999 of the Internal Revenue Code of 1986, as amended (“Section
280G”). Notwithstanding the foregoing, if the payment provided under this
Agreement, together

 

 

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with any other payments or transfers of property, would constitute a “parachute
payment” under Section 280G, and if a reduction in the payment provided under
this Agreement sufficient to avoid “parachute payment” treatment would result
in an increase in the total amount of payments and transfers of property to you
net of all applicable taxes, then, and only then, the payment provided under
this Agreement shall be reduced to the amount that, when combined with all
other payments and transfers of property taken into account under Section 280G,
is one dollar less than the smallest sum that would be considered to be a
“parachute payment.”

     3.9 Limitation of Rights. Neither the establishment of this Agreement nor
any amendment thereof shall be construed as giving you or any other person any
legal or equitable right against the Employer, except as provided by the
express terms of this Agreement, and in no event shall your terms of employment
or service (including your eligibility for any plan, program, policy or
practice provided by the Employer) be modified or in any way affected by the
establishment of this Agreement or any amendment hereof. This Agreement does
not create an employment contract and your employment status remains at-will.
This Agreement is not in substitution for any other rights and claims you may
have against the Employer with respect to accrued amounts due you on your
Termination Date, such as base salary for periods worked and not yet paid,
expense reimbursements which may be due you, and other claims for accrued sums
to the Termination Date, except as otherwise expressly provided in Article II
above.

     3.10 No Mitigation or Setoff. In no event shall you be required to seek
other employment or take any other action to mitigate the amount of the benefit
provided under this Agreement, and such amount shall not be reduced whether or
not you obtain other employment. The Employer’s obligation to pay the benefit
provided under this Agreement shall not be subject to or affected by any
setoffs, counterclaims or defenses that the Employer might have against you or
others, except as otherwise expressly provided in Article II above.

     3.11 Notice of Termination. Any termination by the Employer for Cause, or
by you for Good Reason, shall be communicated to the other party hereto given
in accordance with Section 3.12 of this Agreement. The notice shall (i)
indicate the specific termination provision in this Agreement being relied
upon, (ii) set forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of your employment under the provision so
indicated, and (iii) specify the date of termination.

     3.12 Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
(i) delivered by hand and receipted for by the party to whom said notice or
other communication shall have been directed, or (ii) mailed by certified or
registered mail with postage prepaid, when received and signed for, or (iii)
sent by facsimile with receipt confirmed:

(a) If to you, to:

 

 

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Your address of record with the Employer

(b) If to the Employer, to:

American Management Systems, Incorporated

4050 Legato Road

Fairfax, Virginia 22033

Fax: (703) 267-5111

Attention: Chief Human Resources Officer

or to such other address as may have been furnished to you by the Employer or
to the Employer by you, as the case may be.

     3.13 Severability. In the event that any provision of this Agreement is
held unlawful, such provision shall be of no force and effect, and this
Agreement shall be treated as if such provision had not been contained herein.

     3.14 Successors. This Agreement shall not be terminated by the voluntary
or involuntary dissolution of the Employer, by a merger, consolidation or
acquisition in which the Employer is not the surviving or acquiring
corporation, by a transfer of all of the Employer’s assets, or by any other
change in the Employer’s structure or the manner in which the Employer’s
business or assets are held. In the event of such dissolution, merger,
consolidation, acquisition, transfer or other event, the provisions of this
Agreement shall be binding upon and shall inure to the benefit of the
Employer’s Successor, and the Employer shall require such Successor to agree
expressly to be bound by the provisions of this Agreement. Any termination of
your employment that results from any such dissolution, merger, consolidation,
acquisition, transfer or other event shall not be considered a termination of
employment for purposes of this Agreement if the Successor offers you continued
employment and expressly agrees to be bound by the provisions of this
Agreement.

     3.15 Arbitration. Any controversy or claim arising out of or relating to
the Agreement that would otherwise be resolved in court will instead be settled
by binding arbitration in accordance with the commercial arbitration rules of
the American Arbitration Association (AAA). The arbitration shall be conducted
before a single arbitrator and shall take place in Fairfax, Virginia, unless
the parties mutually agree in writing to an alternate location. AMS will
advance all filing and hearing fees of the AAA and the arbitrator(s) to the
extent such fees exceed $500. Judgment upon any award rendered by the
arbitrator may be entered into any court having jurisdiction thereof. The
losing party in the arbitration shall pay the filing and hearing fees of the
AAA and the arbitrator(s).

     3.16 Withholding. The Employer may deduct from all benefits provided
under this Agreement any taxes reasonably determined to be required to be
withheld by any government or government agency. You (or your beneficiary or
estate, if applicable)

 

 

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shall bear all taxes on benefits provided under this Agreement to the
extent that the Employer does not withhold taxes or withholds insufficient
taxes, irrespective of whether withholding is required.

* * * *

AMERICAN MANAGEMENT SYSTEMS, INCORPORATED:

By: GARRY GRIFFITHS

EVP & Chief Human Resources Officer

On behalf of and with the express authorization of

Alfred T. Mockett, Chairman & CEO

Date:

 

 

 

EMPLOYEE:

I hereby agree to and accept the terms and conditions of this Change in Control

Executive Retention Agreement:

  Employee Signature

  

  

  Printed Name:

Date:

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