Document:

exv10w2

 

EXHIBIT 10.2

AMERICAN MANAGEMENT SYSTEMS, INCORPORATED

1996 AMENDED STOCK OPTION PLAN F

(As Amended Effective As Of May 10, 2002)1

I.      Purposes

        There are three purposes of the 1996 Stock Option Plan F (the “Plan”).
The first is to offer to those employees who contribute materially to the
successful operation of AMERICAN MANAGEMENT SYSTEMS, INCORPORATED (the
“Corporation”) additional incentive and encouragement to remain in the employ
of the Corporation by increasing their personal participation in the
Corporation through stock ownership. The second purpose is to provide an
alternative means of compensating key employees whose performances contribute
significantly to the success of the Corporation. The third is to attract and
retain directors who have not at any time been officers or employees of the
Corporation (“Outside Directors”) and to compensate such Outside Directors for
service to the Corporation. The Plan provides a means whereby optionees may
purchase shares of the $0.01 par value common stock of the Corporation (the
“Common Stock”) pursuant to options. The options may be either one of two
types, (1) “incentive stock options” which will qualify as such under Section
422 of the Internal Revenue Code of 1986, as amended (the “Code”), or under any
applicable successor statute, or (2) “nonqualified stock options,” that is,
options which are not intended to qualify as incentive stock options under
Section 422 of the Code.

II.      Administration

          Except as otherwise provided in this Section II, the Plan shall be
implemented and administered by the Board of Directors of the Corporation (the
“Board”) or a Stock Option/Award Committee appointed by the Board and composed
of three or more directors of the Corporation.

          The Stock Option/Award Committee may be delegated the authority and
discretion to adopt and revise such rules and regulations as it shall deem
necessary for the administration of the Plan, and to determine, consistent with
the provisions of the Plan, the employees to be granted options, whether such
options shall be nonqualified stock options or incentive stock options, the
times at which options shall be granted, the exercise price of the shares
subject to each option (subject to paragraph D of Section VI), the number of
shares subject to each option, the vesting schedule of options or whether the
options shall be immediately vested, the times when options shall terminate,
and whether the exercise price of options shall be paid in cash or stock. Acts
of a majority of the members of the Stock Option/Award Committee at a meeting
at which a quorum is present, or acts approved in writing by a majority of the
members of the Stock Option/Award Committee, shall be the valid acts of the
Stock Option/Award Committee. The Stock Option/Award Committee’s actions,
including any interpretation or construction of any provisions of the Plan or
any option granted hereunder, shall be final, conclusive and binding unless
otherwise determined by the Board at its next regularly scheduled meeting. No
adjustment to decrease the exercise price of an outstanding stock option
granted under the Plan, whether by amending the exercise price of the
outstanding stock option or by canceling the outstanding stock option and
reissuing a replacement or substitute stock option having a lower exercise
price, may be made without shareholder approval (except as provided in
paragraph G of Section VI hereof).2

	 
	          1 Revised February 22, 2002, effective on the same date, and May 10, 2002,
effective on the same date.
	          2 Added February 22, 2002, effective on the same date, subject to shareholder
approval. Revised April 28, 2002, effective as if included in the original
amendment.

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           Notwithstanding any other provision of this Section or the Plan or any
documentation governing incentive compensation plans pursuant to which officers
may elect to receive options under this Plan, a committee composed of at least
two Non-Employee Directors, within the meaning of Rule 16b-3(b)(3) of the
Securities and Exchange Commission who also are “outside directors” within the
meaning of Section 162(m) of the Code (the “Compensation Committee”), shall
have the authority (a) to make awards to directors of the Corporation who are
not Outside Directors, to all persons who are “officers” of the Corporation as
defined for purposes of Sections 16(a) and 16(b) of the Securities Exchange Act
of 1934, as amended (the “Act”), and to “covered employees,” within the meaning
of Section 162(m) of the Code and (b) to perform all other functions of the
Board or Stock Option/Award Committee, as the case may be, with respect to
outstanding awards to any of such directors, officers, and covered employees
including without limitation amendments to this Plan or such outstanding awards
which affect such persons.No member of the Board, the Stock Option/Award
Committee or the Compensation Committee, as the case may be, shall be liable
for any action or determination made in good faith with respect to the Plan or
any option granted under it.

III.      Eligibility; Participation; Special Limitations

           All key employees (including officers and directors) of the Corporation,
or any corporation in which the Corporation owns stock possessing more than 50
percent of the voting power (a “Subsidiary”), who meet minimum salary and other
requirements established by the Board, shall be eligible to receive options
under the Plan. All Outside Directors also shall be eligible to receive
options under the Plan. An employee who has been granted an option may be
granted an additional option or options or rights under the Plan if the Board,
the Stock Option/Award Committee or the Compensation Committee, as the case may
be, shall so determine. The granting of an option under the Plan shall not
affect any outstanding stock option previously granted to an employee under the
Plan or any other plan of the Corporation.

           Nothing contained in the Plan, or in any option granted pursuant to the
Plan, shall (i) confer upon any employee the right to continued employment, or
shall interfere in any way with the right of the Corporation or a Subsidiary to
terminate the employment of such employee at any time or (ii) confer upon any
Outside Director the right to continued membership on the Board, or shall
interfere in any way with the right of the Corporation to terminate the
membership on the Board of such Outside Director.

           In no event, however, shall an incentive stock option be granted to any
person who then owns (as that term is defined in Section 424 of the Code) stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Corporation or of any of its Subsidiaries, unless the exercise
price as determined under paragraph D of Section VI hereof is equal to at least
110% of the fair market value of the stock subject to the incentive stock
option as of the date of grant and unless the term during which such incentive
stock option may be exercised does not exceed five years from the date of the
grant thereof. Options will not be treated as incentive stock options to the
extent that the aggregate fair market value (determined as of the date the
option is granted) of the Common Stock with respect to which options are
exercisable for the first time by an employee during any calendar year (under
all incentive stock option plans of the Corporation and its Subsidiaries)
exceeds $100,000.

IV.      Basis of Grant

           Options shall be granted to employees either (a) on the basis of awards
earned under the Corporation’s incentive compensation programs for groups of
key employees, as in effect from time to time, or (b) as the Board, the Stock
Option/Award Committee or the Compensation Committee, as the case may be, may
determine from time to time. If options are granted based on (a) hereof, then
performance bonuses and options based thereon shall be earned based on the
employee’s success in meeting predetermined performance standards during one or
more years (the “Performance Period”). Options shall be granted under (a)
hereof, if at all, at the time that the Corporation determines in its judgment
that the employee has met or will meet the employee’s predetermined performance
standards for the Performance Period.

           Options shall be granted to Outside Directors as the Compensation
Committee may determine from time to time.

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V.      Number of Shares and Options

          A.     Shares of Stock Subject to the Plan. The number of shares authorized
to be issued pursuant to options granted under the Plan is 5,800,000 shares,
subject to adjustment in accordance with the provisions of paragraph G of
Section VI hereof. Shares subject to options granted under the Plan may be
authorized and unissued shares or shares previously acquired or to be acquired
by the Corporation and held in treasury. Any shares subject to an option that
are not issued by reason of expiration, forfeiture or settlement in cash or by
reason of tendering or withholding shares to pay all or a portion of the
exercise price or to satisfy all or a portion of the related tax withholding
obligations and any shares that are purchased by the Corporation with the
amount of cash option proceeds received upon the exercise of options may again
be subject to an option granted under the Plan.3

          B.     Maximum Number of Options. The maximum number of shares which may be
subject to options granted under the Plan to any “covered employee” for
purposes of Section 162(m) of the Code during any two (2) consecutive calendar
years shall be 500,000 shares, subject to adjustment in accordance with
paragraph G of Section VI hereof.4

VI.      Terms and Conditions of Options

           A.     Option Agreement. Each option granted pursuant to the Plan shall be
evidenced by an agreement (“Option Agreement”) between the Corporation and the
optionee receiving the option. Option Agreements (which need not be identical)
shall state whether the option is an incentive stock option or a nonqualified
stock option, shall designate the number of shares and the exercise price of
the options to which they pertain, shall set forth the vesting schedule of the
options or state that the options are vested immediately. The Option
Agreements shall be in writing, dated as of the date the option is granted, and
shall be executed on behalf of the Corporation by such officers as the Board,
the Stock Option/Award Committee or the Compensation Committee, as the case may
be, shall authorize. Option Agreements generally shall be in such form and
contain such additional provisions as the Board, the Stock Option/Award
Committee or the Compensation Committee, as the case may be, shall prescribe,
but in no event shall they contain provisions inconsistent with the provisions
of the Plan.

           B.     Exercise of Options. Options are exercisable only to the extent they
are vested. Options granted to employees shall vest either immediately or
periodically pursuant to a schedule selected by the Board, the Stock
Option/Award Committee or the Compensation Committee, as the case may be, at
the same time the option is granted, except that the maximum vesting period
shall be ten (10) years for nonqualified stock options and for incentive stock
options.5 The Option Agreement shall either state that the options are fully
vested upon grant and immediately exercisable in full or shall set forth the
vesting schedule selected by the Board, the Stock Option/Award Committee or the
Compensation Committee, as the case may be.

           Options granted to Outside Directors shall vest either immediately or
periodically pursuant to a schedule selected by the Compensation Committee at
the same time the option is granted, provided that upon termination of an
Outside Director as a member of the Board of Directors by reason of death or
disability, all options held by such Outside Director shall vest fully as of
the date of termination.

           Optionees may exercise at any time or from time to time all of any portion
of a vested option.

	 
	3 Revised February 22, 2002, effective on the same date.
	4 Revised February 22, 2002, effective on the same date, subject to shareholder approval.
	5 Revised February 25, 2000, effective as of April 1, 1999.

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           C.     Repurchase Amendment. Options granted to employees or Outside
Directors may be amended to advance the date on which the option shall vest.
If an option is so amended, the amendment also may provide that the shares
which would not have been vested under the vesting schedule set forth in the
Option Agreement shall be subject to repurchase by the Corporation for a
specified period of time at the original exercise price if the employment of
the optionee is terminated for any reason prior to expiration of the repurchase
period. The amendment shall be evidenced by a written agreement (the
“Repurchase Amendment”) between the Corporation and the optionee, shall be
executed on behalf of the Corporation by such officers as the Board, the Stock
Option/Award Committee or the Compensation Committee, as the case may be, shall
authorize, and shall be in such form and contain such provisions as the Board,
the Stock Option/Award Committee or the Compensation Committee, as the case may
be, shall prescribe.

           D.     Exercise Price.

	
	                    1.  Incentive Stock Options. The price at which incentive stock options
granted pursuant to the Plan may be exercised shall be determined by the Board,
the Stock Option/Award Committee or the Compensation Committee, as the case may
be, which price shall be at least equal to the fair market value of the
underlying Common Stock at the date at the options are granted. In the case of
incentive stock options granted to a person who owns, immediately after the
grant of such incentive stock option, stock possessing more than 10% of the
total combined voting power of all classes of stock of the Corporation or of
any of its Subsidiaries (as more fully set forth in Section III hereof), the
purchase price of the Common Stock covered by such incentive stock option shall
not be less than 110% of the fair market value of such stock on the date of
grant.

	
	                    2.  Nonqualified Stock Options. The price at which all nonqualified stock
options granted pursuant to the Plan may be exercised shall be the fair market
value of the Common Stock on the date of grant.6
	 
	                    3.  Fair Market Value. For purposes of the Plan the term “fair market
value” shall be defined as the closing bid price of the Common Stock quoted
over the National Association of Securities Dealers Automated Quotation System
(“NASDAQ”) in the national market on the date of grant of the option or if
there is no trade on such date, the closing bid price on the last preceding
date upon which such Common Stock was traded. In the event that the Common
Stock is not traded over NASDAQ, the term fair market value shall be defined as
the closing bid price of the Common Stock published in the National Daily Stock
Quotation Summary on the date of grant of the option, of if there are no
quotations published on such date, on the most recent date upon which such
Common Stock was quoted. In the event that the Common Stock is listed upon an
established stock exchange or exchanges, such fair market value shall be deemed
to be the highest closing price of the Common Stock on such stock exchange or
exchanges on the date the option is granted, or if no sale of the Common Stock
shall have been made on any exchange on that date, then the next preceding day
on which there was a sale of such stock.

	
	                    4.  Payment.  Payment of the exercise price may be (i) in cash, (ii) by
delivery to the Corporation of (x) irrevocable instructions to deliver to a
broker the stock certificates representing the shares for which the option is
being exercised, and (y) irrevocable instructions to the broker to sell such
shares and promptly deliver to the Corporation the portion of the proceeds
equal to the exercise price, or in the sole discretion of the Board or
Committee, (iii) by exchange of Common Stock of the Corporation, or, (iv)
partly in cash and partly by exchange of such Common Stock, provided that for
purposes of (iii) and (iv) the value of such Common Stock shall be the fair
market value on the date of exercise, and further provided that such Common
Stock shall have been held by the optionee for a period of at least six (6)
months prior to the date of exercise.

	 
	6 Revised February 22, 2002, effective on the same date.

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           The Board, the Stock Option/Award Committee or the Compensation Committee,
as the case may be, may permit deferred payment of all or any part of the
purchase price of the shares purchased pursuant to the Plan, provided the par
value of the shares must be paid in cash.

           E.     Suspension or Termination of Options.  Subject to earlier termination
as provided below, all stock options shall expire, and all rights granted under
Option Agreements shall become null and void, on the date specified in the
Option Agreement, which date shall be no later than ten (10) years after the
stock options are granted.

           Upon termination of an employee’s employment with the Corporation or a
Subsidiary for any reason, all options held by the employee that are not vested
and exercisable on the date of termination shall expire, and all rights granted
under the Option Agreement shall become null and void. To the extent that
stock options held by the employee are vested and exercisable on the date of
termination, shares subject to the stock options may be purchased during the
“exercise period,” after which the stock options shall expire, and all rights
granted under the Option Agreement shall become null and void. The “exercise
period” for shares subject to a nonqualified stock option held by an employee,
his heirs, legatees or legal representatives, as the case may be, ends on the
earlier of (i) the date on which the stock option expires by its terms, or (ii)
(A) when termination is due to death, disability, or resignation following
completion of a period of ten (10) or more years of continuous service, one (1)
year after the date of the employee’s termination of employment, or (B) when
termination is due to any other reason, thirty (30) days after the date of
termination. The “exercise period” for shares subject to an incentive stock
option held by an employee, his heirs, legatees or legal representatives, as
the case may be, ends on the earlier of (i) the date on which the incentive
stock option expires by its terms, or (ii) (A) when termination is due to death
or disability one (1) year after the date of the employee’s termination of
employment, or (B) when termination is due to any other reason, thirty (30)
days after the date of termination.

           Upon termination of an Outside Director as a member of the Board due to
(i) resignation following completion of a period of ten (10) or more years of
continuous service as an Outside Director, (ii) death or (iii) disability, all
options held by the Outside Director that are not vested and exercisable on the
date of termination shall continue to vest during the “exercise period”
(defined below), as if the Outside Director had remained a member of the Board
during that period. Upon termination of an Outside Director as a member of the
Board for any other reason, all options held by the Outside Director that are
not vested and exercisable on the date of termination shall expire, and all
rights granted under the Option Agreement shall become null and void. To the
extent that stock options held by the Outside Director are vested and
exercisable on the date of termination, or become vested and exercisable during
the “exercise period” as provided above, shares subject to the stock options
may be purchased during that period, after which the stock options shall
expire, and all rights granted under the Option Agreement shall become null and
void. The “exercise period” for shares subject to a stock option held by an
Outside Director, his heirs, legatees or legal representatives, as the case may
be, ends on the earlier of (i) the date on which the stock option expires by
its terms, or (ii) (A) when termination is due to death, disability, or
resignation following completion of a period of ten (10) or more years of
continuous service as an Outside Director, one (1) year after the date of
termination of the Outside Director’s service as a member of the Board, or (B)
when termination is due to any other reason, thirty (30) days after the date of
termination.7

           An Option Agreement may provide for an exercise period following
termination of employment or termination as a member of the Board of up to six
(6) months in lieu of the thirty (30)-day period specified above.8

	 
	7 Revised May 11, 2001, February 22, 2002, and May 10, 2002, each effective as
if included in the plan as revised in 1997.
	8 Added February 22, 2002, effective as of December 1, 2001.

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           If the Director of Human Resources of the Corporation or his or her
designee reasonably believes an optionee other than an Outside Director has
committed an act of misconduct as described in this paragraph, the Director of
Human Resources may suspend the optionee’s rights to exercise any option
pending a determination by the Board. If the Board determines an optionee
other than an Outside Director has committed an act of embezzlement, fraud,
dishonesty, nonpayment of any obligation owed to the Corporation, breach of
fiduciary duty or deliberate disregard of Corporation rules resulting in loss,
damage or injury to the Corporation, or if an optionee makes an unauthorized
disclosure of any trade secret or confidential information, engages in any
conduct constituting unfair competition, induces any customer to breach a
contract with an optionee or induces any principal for whom the Corporation
acts as agent to terminate such agency relationship, neither the optionee nor
his or her estate shall be entitled to exercise any option whatsoever. In
making such determination, the Board shall act fairly and shall give the
optionee an opportunity to appear and present evidence on his or her behalf at
a hearing before a committee of the Board. For any optionee who is an
“officer” for purposes of Section 16 of the Act, the determination shall be
made by the Board, the Stock Option/Award Committee or the Compensation
Committee, whichever is responsible for administration of the Plan with respect
to the optionee.

           F.     Non-Transferability of Options.  Options pursuant to the Plan are not
transferable by the optionee otherwise than by will or the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined by
the Code, Title I of the Employee Retirement Income Security Act of 1974, as
amended, or the rules thereunder. Except as permitted by the preceding
sentence, no option nor any right granted under an Option Agreement shall be
transferred, assigned, pledged, hypothecated or disposed of in any other way
(whether by operation of law or otherwise), or be subject to execution,
attachment or similar process, and each option shall be exercisable during the
optionee’s lifetime only by the optionee. Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of such options or of such
other rights contrary to the provisions hereof, or to subject such options or
such other rights to execution, attachment or similar process, such options and
such other rights shall immediately terminate and become null and void.

           G.     Adjustment Provisions.  Except as otherwise provided in this paragraph
G, in the event of changes in the Common Stock by reason of any stock split,
combination of shares, stock dividend, reclassification, merger, consolidation,
reorganization, recapitalization or similar adjustment, or by reason of the
dissolution or liquidation of the Corporation, appropriate adjustments may be
made in (i) the aggregate number of or class of shares available under the
Plan, and (ii) the number, class and exercise price of shares remaining subject
to all outstanding options. Whether any adjustment or modification is to be
made as a result of the occurrence of any of the events specified in this
section, and the extent thereof, shall be determined by the Board, whose
determination shall be binding and conclusive. Notwithstanding the previous
sentence, in the event of a stock split, stock dividend or other event that is
functionally equivalent to a stock split or stock dividend, (i) the number of
shares subject to then-outstanding options will be adjusted so that upon
exercise of the option, the holder of each option will be entitled to receive
the number of shares or other securities which the holder would have been
entitled to receive after the event had the option been exercised immediately
before the earlier of the date of the consummation of the event or the record
date of the event (the “event date”), (ii) the price of each share subject to
then-outstanding options will be adjusted proportionately so that the aggregate
purchase price for all then-outstanding options will be the same immediately
after the event date as before the event date, (iii) an appropriate and
proportionate adjustment will be made as of the event date in the maximum
number of shares that may be issued pursuant to options granted under the Plan,
(iv) any adjustment with respect to then-outstanding incentive stock options
will be made in a transaction that does not constitute a modification under
Section 424(h)(3) of the Code, and (v) any option to purchase fractional shares
resulting from an adjustment will be eliminated. Existence of the Plan or of
Option Agreements pursuant to the Plan shall in no way impair the right of the
Corporation or its stockholders to make or effect any adjustments,
recapitalizations, reorganizations or other changes in the Corporation’s
capital structure or its business, or any merger, consolidation, dissolution or
liquidation of the Corporation, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock of the
Corporation, or any grant of options on its stock not pursuant to the Plan.

VII.      Rights as a Shareholder

             Optionees shall not have any of the rights and privileges of shareholders
of the Corporation in respect of any of the shares subject to any option
granted pursuant to the Plan unless and until a certificate, if any,
representing such shares shall have been issued and delivered.

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VIII.     Withholding

              To the extent required by applicable federal, state, local or foreign law,
an optionee shall make arrangements satisfactory to the Corporation for the
satisfaction of any withholding tax obligations that arise by reason of an
option exercise or the disposition of shares acquired upon exercise of an
incentive stock option. The Corporation shall not be required to issue shares
until such obligations are satisfied. The Board, the Stock Option/Award
Committee, or the Compensation Committee, as the case may be, may permit these
obligations to be satisfied by having the Corporation withhold a portion of the
shares of Common Stock that otherwise would be issued upon exercise of the
option, or to the extent permitted, by permitting the optionee to tender shares
owned by the optionee.

IX.        Receipt of Prospectus

             Upon the execution of an Option Agreement, each optionee receiving options
pursuant to the Plan shall be given a Prospectus, as filed by the Corporation
under the Securities Act of 1933, including any exhibits thereto, describing
the Plan. Each Option Agreement shall contain an acknowledgment by the
optionee that the requirements of this section have been met.

X.         Successors

             The provisions of the Plan shall be binding upon, and inure to the benefit
of, all successors of any optionee, including, without limitation, his estate
and the executors, administrators or trustees thereof, his heirs and legatees,
and any receiver, trustee in bankruptcy or representative of creditors of such
optionee.

XI.        Termination and Amendment of the Plan

             The Plan shall remain in effect until January 1, 2006, unless sooner
terminated as hereinafter provided.9 The Board shall have complete power and
authority at any time to terminate the Plan or to make such modification or
amendment thereof as it deems advisable and may from time to time suspend,
discontinue or abandon the Plan, provided that no such action by the Board
shall adversely affect any right or obligation with respect to any grant
theretofore made, and, further provided that without approval by vote of the
shareholders, the Board shall not adopt any amendment that would (i) materially
modify the requirements as to the exercise price of stock options, (ii)
increase the number of shares which may be issued under the Plan (except as
provided in paragraph G of Section VI hereof), (iii) materially modify the
requirements as to eligibility for participation in the Plan, or (iv) modify
the material terms of the Plan as to “covered employees” within the meaning of
Section 162(m) of the Code.

XII.        Indemnification of Committee

               In addition to such other rights of indemnification as they may have as
directors or as members of the Board, the Stock Option/Award Committee or the
Compensation Committee, as the case may be, the members of the Board, the Stock
Option/Award Committee or the Compensation Committee shall be indemnified by
the Corporation against the reasonable expenses, including attorneys’ fees
actually and necessarily incurred in connection with the defense of any action,
suit or proceeding, or in connection with any appeal therein, to which they or
any of them may be a party by reason of any action taken or failure to act
under or in connection with the Plan, Option Agreements or any option granted
hereunder, and against all amounts paid by them in settlement thereof (provided
such settlement is approved by legal counsel selected by the Corporation) or
paid by them in satisfaction of a judgment in any such action, suit or
proceeding, except in relation to matters as to which it shall be adjudged in
such action, suit or proceeding that such member is liable for negligence or
misconduct in the performance of his duties; provided that within sixty (60)
days after institution of any such action, suit or proceeding a member shall in
writing offer the Corporation the opportunity, at its own expense, to defend
the same.

	 
	9 Revised May 10, 2002, effective on the same date.

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XIII.     Merger of the Corporation

             Unless the options issued pursuant to this Plan are assumed in a
transaction to which Section 424(a) of the Code applies, if the Corporation
shall (i) merge or consolidate with another corporation under circumstances
where the Corporation is not the surviving corporation, (ii) sell all, or
substantially all of its assets, or (iii) liquidate or dissolve, then each
option shall terminate on the date and immediately prior to the time such
merger, consolidation, sale, liquidation or dissolution becomes effective or is
consummated, provided that the holder of the option shall have the right
immediately prior to the effectiveness or consummation of such merger,
consolidation, sale, liquidation or dissolution, to exercise any or all of the
vested portion of the option, unless such option has otherwise expired or been
terminated pursuant to its terms or the terms hereof. In the event of such
merger, consolidation, sale, liquidation or dissolution, any portion of an
outstanding option which would have vested within one year after the date on
which such merger, consolidation, sale, liquidation or dissolution becomes
effective or is consummated shall vest immediately prior to the effectiveness
or consummation of such merger, consolidation, sale, liquidation or dissolution
and shall be part of the vested portion of the option which the holder of the
option may exercise.

XIV.     Approval of Plan; Effective Date

             The plan was adopted by the Board on April 3, 1996, and was approved by
the shareholders on May 10, 1996. The Plan was further amended by the Board on
February 26, 1999, February 25, 2000, and May 11, 2001. The Plan was further
amended by the Board on February 22, 2002, April 28, 2002, and May 10, 2002,
subject in certain respects to shareholder approval of the amendments at the
annual meeting of shareholders on June 7, 2002.10

	 
	10 Revised February 22, 2002, effective on the same date, and May 10, 2002,
effective on the same date.

8exv10w4

 

Exhibit 10.4

EMPLOYMENT AGREEMENT

Paul A. Turner

          This EMPLOYMENT AGREEMENT (the “Agreement”) is made effective July 1, 2002
between American Management Systems, Incorporated, a corporation formed under
the laws of the State of Delaware with its principal place of business at 4000
and 4050 Legato Road, Fairfax, VA 22033 (“AMS”), and Paul A. Turner, residing
at 10696 Henderson Road, Fairfax Station, VA 22039 (the “Employee”).

          WHEREAS, AMS desires to engage the services of the Employee as Executive
Vice President, and the Employee is willing to render such services to AMS in
consideration of the terms and conditions agreed to by the parties; and

          WHEREAS, AMS has approved the employment of the Employee on the terms and
conditions set forth in this Agreement;

          NOW THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, AMS agrees
to employ the Employee, and the Employee agrees to perform services for AMS as
an employee, effective as of July 1, 2002 upon the terms and conditions set
forth herein.

	 	 	 
	1.	 	
Term.
 
	 	 	
The initial term of this Agreement shall end on June 30, 2003, unless it
is terminated earlier as provided herein. Beginning on that date, and on
each anniversary thereafter, unless it is terminated earlier as provided
herein or AMS delivers written notice to the Employee of its intention
not to extend the Agreement at least 90 days before such anniversary
date, the term of this Agreement shall automatically be extended for one
additional year. The restrictive covenants in Sections 10 and 11 hereof
shall survive the termination of this Agreement.
 
	2.	 	
Title and Duties.
 
	 	 	
The Employee shall be employed as Executive Vice President of AMS. The
Employee shall perform such services consistent with his position as
might be assigned to him from time to time and are consistent with the
bylaws of AMS.
 
	3.	 	
Location.
 
	 	 	
The Employee’s place of employment shall be within a 25-mile radius of
the location of the offices described above as AMS shall reasonably
direct, or at any other location that may be mutually agreed upon in the
future.

1

 

	 	 	 
	4.	 	
Extent of Services.

	 	 	 
	a.	 	
General.
 
	 	 	
The Employee agrees not to engage in any business activities during
the term of this Agreement except those that are for the benefit of
AMS, and to devote his entire business time, attention, skill and
effort to the performance of his duties under this Agreement.
Notwithstanding the foregoing, the Employee may engage in
charitable, professional and civic activities that do not impair
the performance of his duties to AMS, as the same may be changed
from time to time, or otherwise adversely affect AMS’s interest,
reputation, business or welfare. Nothing contained herein shall
prevent the Employee from managing his own personal investments and
affairs, including but not limited to investing his assets in the
securities of publicly traded companies; provided, however, that
the Employee’s activities do not constitute a conflict of interest,
violate securities laws, or otherwise interfere with the
performance of his duties and responsibilities as described herein.
The Employee agrees to adhere to AMS’s published policies and
procedures affecting directors, officers, employees, and agents and
shall use his best efforts to promote AMS’s interest, reputation,
business and welfare.
 
	b.	 	
Corporate Opportunities.
 
	 	 	
The Employee agrees that he will not take personal advantage of any
AMS business opportunities that arise during his employment with
AMS and that might be of benefit to AMS. All material facts
regarding such opportunities must be promptly reported to the Board
for consideration by AMS.

	 	 	 
	5.	 	
Compensation and Benefits.

	 	 	 
	a.	 	
Base Salary.
 
	 	 	
The Employee’s initial annualized base salary shall be $400,000.
The base salary shall be payable in accordance with AMS’s standard
payroll practices. The Employee’s annual base salary shall be
reviewed no less frequently than annually by the AMS Compensation
Committee and/or Board; provided, however, that at no time during
the term of this Agreement shall the Employee’s base salary be
decreased from the base salary then in effect except as part of a
general program of salary adjustment by AMS applicable to all
similarly-situated employees.
 
	b.	 	
Incentive Compensation.

	 	 	 
	(i)	 	
The Employee shall be eligible for an annual cash
bonus having a value of from 0% to 120% of his annual base
salary for the relevant year, depending on AMS’s and the
Employee’s performance with a target percentage of 60%
(“Target Annual Bonus”). Such annual bonuses shall be paid at
the usual times for the payment of annual bonuses by AMS.

-2-

 

	 	 	 
	(ii)	 	
The Employee shall be eligible to participate in
all long term incentive plans
in which other executive vice presidents are eligible to
participate.

	 	 	 
	c.	 	
Other Benefits.
 
	 	 	
The Employee shall be entitled to paid compensatory leave and
vacation, sick leave, and holiday pay in accordance with AMS’s
policies in effect from time to time, and to participate in such
life, health, and disability insurance, pension, deferred
compensation and incentive compensation plans, stock options and
awards, performance bonuses and other benefits as AMS extends, as a
matter of policy, to its executive vice presidents.

	 	 	 
	6.	 	
Termination of Employment.

	 	 	 
	a.	 	
In General.
 
	 	 	
Except as specifically provided below or elsewhere in this
Agreement, the Employee’s employment may be terminated by either
party at any time with or without Cause. In any event, the
Employee’s employment shall terminate immediately upon his death.
 
	 	 	
Except as specifically provided below or elsewhere in this
Agreement, in the event that the Employee’s employment is
terminated, this Agreement shall terminate and the Employee shall
be entitled only to such rights and payment of such benefits as
might be provided by the terms of any employee benefit plan or
program of AMS, or any other agreement between AMS and the
Employee.
 
	 	 	
Except as specifically provided below or elsewhere in this
Agreement, constructive termination of the Employee’s employment by
AMS shall be treated the same as actual termination for purposes of
this Agreement. Constructive termination shall mean a termination
of the Employee’s employment at his own initiative following the
occurrence, without the Employee’s prior written consent, of one or
more of the following events:

	 	 	 
	(i)	 	
a significant diminution in the nature or scope
of the Employee’s authority or the duties that the Employee
performs, unless the Employee is given new authority or
assigned new duties (whichever is applicable) that are
substantially comparable to his previous authority and duties;
 
	(ii)	 	
a significant reduction in the Employee’s then
current base salary, a significant reduction in his
opportunities for earnings under his incentive compensation
plans, or a significant reduction in his employee benefits as
a whole (in each case except as part of a general reduction
that applies to other similarly-situated employees); or

-3-

 

	 	 	 
	(iii)	 	
the relocation of the Employee’s office from its
location at the time of the change to a location more than 25
miles away without his prior written consent.

	 	 	 
	 	 	
The mere failure of AMS to extend (or notice of its intention not
to extend) the Agreement shall not result in actual or constructive
termination; provided, however, that if AMS fails to extend the
Agreement its obligation to provide the benefits set forth in
Section 6.c. hereof, on the terms and conditions set forth in that
section, and without regard to any other section hereof, shall
survive the termination of the Agreement. Under no circumstances
shall a termination or constructive termination be deemed to occur
for purposes of subsection c above if AMS’s obligation to perform
this Agreement is assigned or transferred to a successor employer
pursuant to Section 17 hereof or if the Employee otherwise becomes
employed without a significant period of unemployment under
substantially similar terms and conditions by a successor to some
or all of the business of AMS.
 
	b.	 	
Voluntary Termination.
 
	 	 	
The Employee’s voluntary termination of employment shall be
effective upon 30 days’ prior written notice to AMS, unless the
parties mutually agree to advance or delay the effective date.
 
	c.	 	
Termination Without Cause.
 
	 	 	
AMS’s termination of the Employee’s employment (or taking of any
action or actions resulting in constructive termination of
employment) without Cause shall be effective upon 30 days’ prior
written notice to the Employee, unless the parties mutually agree
to advance or delay the effective date.
 
	 	 	
If the Employee’s employment is terminated without Cause and not on
account of Disability, the Employee shall be entitled to receive
from AMS the following benefits in addition to any other benefits
to which he might be entitled:

	 	 	 
	(i)	 	
a severance benefit in an amount equal to 100% of
the Employee’s annual base salary in effect immediately
preceding such termination, but only if (1) the Employee
executes a release substantially identical to the release
attached hereto, (2) the period for revoking such release has
expired, and (3) the Employee has complied with the
requirements of Sections 10 and 11 hereof;
 
	(ii)	 	
full vesting of any unexercised stock options;
and
 
	(iii)	 	
payment of amounts equal to any premiums for
health and dental insurance continuation coverage under any
AMS health plans that is elected by the Employee or his
beneficiaries pursuant to Section 4980B of the Internal
Revenue Code of 1986, as amended (the “Code”), other than the
employee

-4-

 

	 	 	 
	 	 	
portion of such premiums, at a time or times mutually
agreed to by the parties.

	 	 	 
		 	
AMS shall pay 75% of the severance benefit in paragraph (i) within
30 days after all of the applicable conditions are satisfied. AMS
shall pay the other 25% of the severance benefit with interest 12
months after all of the applicable conditions are
satisfied, provided that the Employee complies with the covenants
in Sections 10 and 11 hereof throughout that period. If the
Employee does not comply with the requirements of Sections 10 and
11 hereof at any time during that period, the other 25% of the
severance benefit shall not be paid to the Employee. All severance
benefits paid to the Employee shall be paid subject to all legally
required payroll deductions and withholdings for sums owed by the
Employee to AMS.
 
	 	 	
For purposes of this Agreement, “Cause” shall mean: (1) the
conviction of the Employee of, or the entry of a plea of guilty or
nolo contendere by the Employee to, any felony or misdemeanor
involving moral turpitude; (2) fraud, misappropriation or
embezzlement by the Employee; (3) the Employee’s willful failure,
gross negligence or gross misconduct in the performance of his
assigned duties for AMS; (4) the Employee’s breach of a fiduciary
duty to AMS; (5) any act or omission of the Employee not at the
express direction of the board or other appropriate authority that
reflects adversely on the integrity and reputation for honesty and
fair dealing of AMS or has a material detrimental effect on AMS’s
financial condition, position or business; or (6) the breach by the
Employee of any material term of this Agreement. For purposes of
this Agreement, “Disability” shall mean disability as defined in
AMS’s existing long term disability policy.

	 	 	 
	7.	 	
Effect of Change in Control.

	 	 	 
	a.	 	
Additional Benefits.
 
	 	 	
If the Employee’s employment is terminated within twelve (12)
months following a Change of Control of AMS, and a severance
benefit is payable pursuant to Section 6.c.(i) hereof, (i) the
amount of the severance benefit shall be increased to 200% of the
sum of the Employee’s base salary and target annual bonus, (ii) the
25% hold-back of the severance benefit shall not apply, and (iii)
the Employee shall be entitled to the Gross-up Payment, if any,
described in subsection c below.
 
	b.	 	
Definition of Change of Control.
 
	 	 	
A “Change of Control” shall mean the first of the following events
to occur:

	 	 	 
	(i)	 	
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,

-5-

 

	 	 	 
	 	 	
becomes the beneficial owner
(within the meaning of Rule 13d-3 under the Act), directly or
indirectly, of securities representing 50% or more of the
combined voting power of AMS’s then-outstanding securities
entitled generally to vote for the election of directors;
 
	(ii)	 	
AMS’s stockholders approve an agreement to merge
or consolidate with another corporation unless AMS’s
stockholders immediately before the merger or consolidation
are to own more than two-thirds (66-2/3%) of the
combined voting power of the resulting entity’s voting
securities entitled generally to vote for the election of
directors;
 
	(iii)	 	
AMS’s stockholders approve an agreement
(including, without limitation, an agreement of liquidation)
to sell or otherwise dispose of all or substantially all of
the business or assets of AMS; or
 
	(iv)	 	
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 of Control shall be deemed to have occurred by
reason of (1) any event involving a transaction in which the
Employee or a group of persons or entities with whom or with which
the Employee acts in concert, acquires, directly or indirectly, 50%
or more of the combined voting power of AMS’s then-outstanding
voting securities or the business or assets of AMS, (2) 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.
 
	c.	 	
Effect of Section 280G.
 
	 	 	
The benefit provided under this Section 7 or Section 6 hereof, if
applicable, shall be provided without regard to any limitations
imposed by Section 280G or 4999 of the Code.

	 	 	 
	(i)	 	
In the event that the Employee becomes entitled
to the benefits (including the acceleration of certain
benefits) provided under this Section 7 or Section 6 hereof,
if applicable (the “Benefits”), if any of the Benefits will be
subject to the tax (the “Excise Tax”) imposed by Section 4999
of the Code (or any similar tax that may hereafter be
imposed), AMS shall pay to the Employee an additional amount
(the “Gross-up Payment”) such that the net amount retained by
the Employee, after deduction of any Excise Tax on the Total

-6-

 

	 	 	 
	 	 	
Benefits (as hereinafter defined) and any federal, state and
local income tax and Excise Tax upon the Gross-up Payment
provided for by this subparagraph (i), but before deduction
for any federal, state or local income tax on the Benefits,
shall be equal to the “Total Benefits,” as defined below.
 
	(ii)	 	
For purposes of determining whether any of the
Benefits will be subject to the Excise Tax and the amount of
such Excise Tax:

	 	 	 
	(1)	 	
Any other payments or benefits
received or to be received by the Employee in connection
with a change of control of AMS or the
Employee’s termination of employment (whether pursuant
to the terms of this Agreement or any other plan,
arrangement or agreement with AMS, any person whose
actions result in a change of control of AMS, or any
person affiliated with AMS or such person) (which,
together with the Benefits, shall constitute the “Total
Benefits”) shall be treated as “parachute payments”
within the meaning of Section 280G(b)(2) of the Code,
and all “excess parachute payments” within the meaning
of Section 280G(b)(1) of the Code shall be treated as
subject to the Excise Tax, unless in the opinion of tax
counsel selected by AMS’s independent auditors such
other payments or benefits (in whole or in part) will
not constitute parachute payments, or such excess
parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered
within the meaning of Section 280G(b)(4) of the Code in
excess of the base amount within the meaning of Section
280G(b)(3) of the Code or are otherwise not subject to
the Excise Tax, and such tax counsel shall provide such
opinion in writing to the Employee such that he and his
tax advisors can rely on it,
 
	(2)	 	
The amount of the Total Benefits
which shall be treated as subject to the Excise Tax
shall be equal to the lesser of (I) the total amount of
the Total Benefits and (II) the amount of excess
parachute payments within the meaning of Section
280G(b)(1) of the Code (after applying paragraph (1),
above), and
 
	(3)	 	
The value of any non-cash benefits or
any deferred payment or benefit shall be determined by
AMS’s independent auditors in accordance with the
principles of Section 280G(d)(3) and (4) of the Code.

	 	 	 
	(iii)	 	
For purposes of determining the amount of the
Gross-up Payment, the Employee shall be deemed to pay federal
income taxes at the highest marginal rate of federal income
taxation for the calendar year in which the Gross-up Payment
is to be made and the applicable state and local income taxes
at the highest marginal rate of taxation for the calendar year
in which the Gross-up Payment is to be made, net of the
maximum reduction in

-7-

 

	 	 	 
	 	 	
federal income taxes which could be
obtained from deduction of such state and local taxes. In the
event that the Excise Tax is subsequently determined to be
less than the amount taken into account hereunder at the time
the Gross-up Payment is made, the Employee shall repay to AMS
at the time that the amount of such reduction in Excise Tax is
finally determined the portion of the Gross-up Payment
attributable to such reduction (plus the portion of the
Gross-up Payment attributable to the Excise Tax and federal
and state and local income tax imposed on the portion of the
Gross-up Payment being repaid by the Employee if such
repayment results in a reduction in Excise Tax and/or a
federal and state and local income tax deduction), plus
interest on the amount of such repayment at the rate
provided in Section 1274(b)(2)(B) of the Code. In the event
that the Excise Tax is determined to exceed the amount taken
into account hereunder at the time the Gross-up Payment is
made (including by reason of any payment the existence or
amount of which cannot be determined at the time of the
Gross-up Payment), AMS shall make an additional gross-up
payment in respect of such excess (plus any interest payable
with respect to such excess) at the time that the amount of
such excess is finally determined.

	 	 	 
	d.	 	
Effect on Pre-existing Change in Control Retention Agreement.
 
	 	 	
The American Management Systems, Incorporated Change in Control
Executive Retention Agreement between AMS and the Employee shall be
cancelled and all rights granted to the Employee under that
agreement shall become null and void upon the effective date of
this Agreement.

	 	 	 
	8.	 	
Mitigation and Offset.
 
	 	 	
If the Employee’s employment is terminated during the term of this
Agreement without Cause, the Employee shall be under no duty or
obligation to seek or accept other employment, and no payment or benefits
of any kind due him under this Agreement shall be reduced, suspended or
in any way offset by any subsequent employment.
 
	9.	 	
Entitlement to Other Benefits.
 
	 	 	
Except as expressly provided herein, this Agreement shall not be
construed as limiting in any way any rights or benefits the Employee, his
spouse, dependents or beneficiaries may have pursuant to any other
employee benefits plans or programs.
 
	10.	 	
Confidentiality.
 
	 	 	
The Employee acknowledges that all confidential information regarding the
business of AMS and its subsidiaries and affiliates is the exclusive
property of AMS. On or before the date that his employment with AMS
terminates, the Employee shall return to AMS all copies of any material
involving such confidential information to AMS, and the Employee

-8-

 

	 	 	 
	 	 	
agrees
that he will not, directly or indirectly, divulge or use such
information, whether or not such information is in written or other
tangible form. The Employee also shall return to AMS by that date any
other items in his possession, custody or control that are the property
of AMS. The Employee understands that even after the date that his
employment with AMS terminates he will remain bound by the terms of the
American Management Systems, Incorporated Confidentiality and
Intellectual Property Rights Agreement, the AMS Ethical Business Conduct
policy statement, and the restrictive covenants contained in this Section
10 and Section 11 hereof. This Section is intended to cover confidential
information of AMS that relates to the business of AMS that has not
otherwise been made public and shall not apply to employee responses that
may be required by proper governmental or judicial inquiry. No breach of
this Section shall be deemed to have occurred unless AMS provides
written notice to the Employee of the breach within 90 days after AMS
becomes aware of it.
 
	11.	 	
Non-Solicitation.
 
	 	 	
Effective on the date that his employment with AMS terminates and for a
period of 12 months thereafter, the Employee shall not directly (a)
employ or solicit for employment, or assist in any way in solicitation
for employment, any person employed by AMS or any of its affiliates then
or at any time within the preceding 12 months; or (b) solicit, or assist
in any way in the solicitation of business from any of AMS’s or its
affiliates’ clients or prospective clients, either for the Employee’s own
benefit or the benefit of anyone other than AMS, unless the business
being solicited is not competitive with the services or products provided
by AMS or its affiliates. Clause (b) shall not apply unless the business
being solicited is in a line of business in which AMS was already engaged
or already had under active consideration while the Employee was employed
by AMS or is a natural extension of such a line business with a client
that was an existing client of AMS during that time.
 
	12.	 	
Employee Representation.
 
	 	 	
The Employee represents and warrants to AMS that he is not now under any
obligation of a contractual or other nature to any person, business or
other entity that is inconsistent or in conflict with this Agreement or
that would prevent him from performing his obligations under this
Agreement.
 
	13.	 	
Arbitration.
 
	 	 	
Any dispute or controversy arising under or in connection with this
Agreement shall, if AMS or the Employee so elects, be settled by
arbitration, in accordance with the Commercial Arbitration Rules
procedures of the American Arbitration Association. Arbitration shall
occur before a single arbitrator, provided, however, that if the parties
cannot agree on the selection of such arbitrator within 30 days after the
matter is referred to arbitration, each party shall select one arbitrator
and those arbitrators shall jointly designate a third arbitrator to
comprise a panel of three arbitrators. The decision of the arbitrator
shall be rendered in writing, shall be final, and may be entered as a
judgment in any court in the

-9-

 

	 	 	 
	 	 	
Commonwealth of Virginia. AMS and the
Employee each irrevocably consent to the jurisdiction of the federal and
state courts located in Virginia for this purpose. The arbitrator shall
be authorized to allocate the costs of arbitration between the parties.
Notwithstanding the foregoing, AMS, in its sole discretion, may bring an
action in any court of competent jurisdiction to seek injunctive relief
in order to avoid irreparable harm and such other relief as AMS shall
elect to enforce the Employee’s covenants in Sections 10 and 11 hereof.
 
	14.	 	
Legal Expenses.
 
	 	 	
Except as provided in Section 13 hereof, if any dispute or controversy
arises under or in connection with this agreement, AMS shall promptly pay
all the Employee’s legal fees and expenses relating to the dispute or
controversy, including, by way of example rather than
limitation, reasonable attorneys’ fees incurred by the Employee in
seeking to obtain or enforce any right or benefit under this Agreement,
provided, however, that this obligation of AMS shall not apply unless the
Employee prevails in whole or in part on the dispute or controversy.
This obligation shall apply irrespective of whether the dispute or
controversy is resolved by arbitration, litigation, or a settlement
thereof.
 
	15.	 	
Interest.
 
	 	 	
AMS shall pay to the Employee interest at the prime lending rate as
announced from time to time by Citibank, N.A. or its successors or
another substantially similar rate on all or any part of any amount to be
paid to the Employee hereunder that is not paid when due.
 
	16.	 	
Indemnification.

	 	 	 
	a.	 	
AMS agrees that if the Employee is made a party, or, is
threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative, or investigative (a
“Proceeding”), by reason of the fact that he is or was a director,
officer or employee of AMS, or is or was serving at the request of
AMS as a director, officer, member, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise,
including service with respect to employee benefit plans, whether or
not the basis of such Proceeding is the Employee’s alleged action in
an official capacity while serving as a director, officer, member,
employee or agent, the Employee shall be indemnified and held
harmless by AMS to the fullest extent permitted or authorized by
AMS’s certificate of incorporation and by-laws. To the extent
consistent with the foregoing, this obligation to indemnify the
Employee and hold him harmless shall continue even if he has ceased
to be a director, officer, member, employee or agent of AMS or other
such entity described above, and shall inure to the benefit of the
Employee’s heirs, executors and administrators. AMS shall advance
to the Employee all reasonable costs and expenses incurred by him in
connection with a Proceeding within 20 days after receipt by AMS of
a written request for such advance. Such request shall include an
undertaking by the Employee to repay the amount of such advance if
it shall

-10-

 

	 	 	 
	 	 	
ultimately be determined that the Employee is not entitled
to be indemnified against such costs and expenses.
 
	b.	 	
Neither the failure of AMS (including its Board, independent
legal counsel or stockholders) to have made a determination before
such Proceeding concerning payment of amounts claimed by the
Employee under subsection a above that indemnification of the
Employee is proper because he has met the applicable standards of
conduct, nor a determination by AMS (including its Board,
independent legal counsel or stockholders) that the Employee has not
met such applicable standards of conduct, shall create a presumption
that the Employee has not met the applicable standards of conduct.

	 	 	 
	17.	 	
Assignability and Binding Nature.
 
	 	 	
This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors, heirs (in the case of the
Employee) and assigns. No rights or obligations may be assigned or
transferred by AMS except that such rights or obligations may be assigned
or transferred pursuant to a merger or consolidation in which AMS is not
the continuing entity, or the sale or liquidation of all or substantially
all of the assets of AMS, provided that the assignee or transferee is the
successor to all or substantially all of the assets of AMS and such
assignee or transferee assumes the liabilities, obligations, and duties
of AMS, as contained in this Agreement, either contractually, or as a
matter of law. AMS further agrees, that in the event of a sale of assets
or liquidation as described in the foregoing sentence, it shall take
whatever action it is legally entitled to take in order to cause the
assignee or transferee to expressly assume the liabilities, obligations,
and duties of AMS under this Agreement. Notwithstanding any such
assignment, AMS shall not be relieved from liability under this
Agreement. No rights or obligations of the Employee under this Agreement
may be assigned or transferred by the Employee other than his right to
receive compensation and benefits, provided such assignment or transfer
is otherwise permitted by law.
 
	18.	 	
Notices.
 
	 	 	
All notices required or permitted hereunder shall be in writing and shall
be deemed effective: (a) upon personal delivery; (b) upon deposit with
the United States Postal Service, by registered or certified mail,
postage prepaid; or (c) in the case of delivery by nationally recognized
overnight delivery service, when received, addressed as follows:
 
	 	 	
If to AMS to:

	 
	American Management Systems, Incorporated
	4050 Legato Road
	Fairfax, VA 22033
	Attention: Garry Griffiths, Chief Human Resources Officer

-11-

 

          With a copy (which shall not constitute notice) to:

	 
	Shaw Pittman LLP
	2300 N Street, N.W
	Washington, DC 20037
	Attention: Barbara M. Rossotti, Esq

          If to the Employee, to:

	 
	Paul A. Turner
	10696 Henderson Road
	Fairfax Station, VA 22039

	 	 	 
	 	 	
or to such other address or addresses as either party shall designate to
the other in writing from time to time by like notice. At AMS’s sole
discretion it may substitute, for any
advance notification otherwise required in this Agreement (including the
right to a delayed effective date provided in Section 6 hereof in lieu of
advance notice), continued payment of regular salary and benefits during
the otherwise required advance notification period.
 
	19.	 	
Amendment.
 
	 	 	
This agreement may be amended or modified only by a written instrument
executed by both AMS and the Employee.
 
	20.	 	
Captions.
 
	 	 	
The captions appearing herein are for convenience of reference only and
in no way define, limit or affect the scope or substance of any section
hereof.
 
	21.	 	
Time.
 
	 	 	
All reference herein to periods of days are to calendar days, unless
expressly provided otherwise. Where the time period specified herein
would end on a weekend or holiday, the time period shall be deemed to end
on the next business day.
 
	22.	 	
Entire Agreement.
 
	 	 	
Except for other agreements specifically referenced herein, this
Agreement constitutes the entire agreement between AMS and the Employee
and supersedes all prior agreements and understandings, whether written
or oral relating to the subject matter hereof.

-12-

 

	 	 	 
	23.	 	
Severability.
 
	 	 	
In case any provision hereof shall be held by a court or arbitrator with
jurisdiction over AMS or the Employee to be invalid, illegal or otherwise
unenforceable, such provision shall be restated to reflect as nearly as
possible the original intentions of AMS and the Employee in accordance
with applicable law, and the validity, legality and enforceability of the
remaining provisions shall in not way be affected or impaired thereby.
 
	24.	 	
Waiver.
 
	 	 	
No delays or omission by AMS or the Employee in exercising any right
hereunder shall operate as a waiver of that or any other right. A waiver
or consent given by AMS or the Employee or any one occasion shall be
effective only in that instance and shall not be construed as a bar or
waiver of any right on any other occasion.
 
	25.	 	
Governing Law.
 
	 	 	
This Agreement shall be construed, interpreted and enforced in accordance
with the laws of the Commonwealth of Virginia, without regard to its
conflicts of laws principles.

	 	 	 
	26.	 	
Withholding.
 
	 	 	
AMS may make any appropriate arrangements to deduct from all benefits
provided hereunder any taxes reasonably determined to be required to be
withheld by any government or government agency. The Employee shall bear
all taxes on benefits provided hereunder to the extent that no taxes are
withheld, irrespective of whether withholding is required.
 
	27.	 	
Counterparts.
 
	 	 	
This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute
one and the same instruments.

IN WITNESS WHEREOF, AMS and the Employee have executed this Agreement effective
as of July 1, 2002.

	 	 	 
	EMPLOYEE	 	
AMERICAN MANAGEMENT

SYSTEMS, INCORPORATED
	 
	/s/ PAUL A. TURNER

Paul A. Turner	 	
By:  /s/ GARRY GRIFFITHS

Garry Griffiths
	 
	Date: June 17 02

	 	
Date:   6/17/02

-13-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]