Document:

Exhibit 10.20

 Exhibit 10.20 
 

 
  

							
		 		 		 	 Deltek Systems, Inc.
 13880 Dulles Corner Lane

Herndon, VA 20171-4600
  
 703.734.8606
 800.456.2009
 703.734.0346 FAX

 May 26, 2006 
 Mr. Richard Lowenstein 
 2179 Wynnton Point 
 Duluth, Georgia 30097 
 Dear Rick: 
 I
am pleased to offer you the position of Executive Vice President, Professional Services of Deltek Systems, Inc. (the “Company”). I am very excited about the Company’s future and equally excited at the prospect of your joining
our team. The following are the terms and conditions of your offer. 
  

	 	1.	Start Date. We have agreed that you will start working for the Company on June 26, 2006. 

  

	 	2.	Reporting Responsibilities. As Executive Vice President, Professional Services, you will report to me, although, as with all of the Company’s officers, you may also be
called on from time to time to give reports to the board of directors of the Company (the “Board”) directly. 

  

	 	3.	Base Salary and Annual Bonus. Your annual base salary will be $250,000, payable in accordance with the Company’s standard payroll policy, and will be reviewed
periodically. You will have an annual bonus target of $150,000. Bonuses will be paid quarterly, based on satisfaction of actual performance against agreed targets, and your actual bonuses may be more than or less than your annual bonus target. All
payments to you by the Company will be subject to any required withholding of taxes. 

  

	 	4.	Other Benefits. You will be provided with the Company’s standard benefits package in effect from time to time, which currently includes medical coverage, 401(k) plan
participation and four weeks of paid vacation. You will be reimbursed pursuant to the Company’s expense reimbursement policy in effect from time to time for the covered business expenses that you incur in connection with your service to the
Company. 

  

	 	5.	 Relocation Expenses. The Company shall pay or reimburse you for all reasonable expenses that you incur in relocating to the Washington, D.C. 

 

 
  

	 	 
metropolitan area and for the cost of any temporary housing in the Washington, D.C. metropolitan area for the Executive during such period of relocation.
Such expenses may include transportation of belongings to the Washington, D.C. metropolitan area; storage space (if necessary); house-hunting trips; brokers fees; set-up costs of telephone, cable and broadband; and airfare and lodging for family.
Such payments and/or reimbursements shall be made as soon as practicable after the submission to the Company of covered expenses. 

  

	 	6.	Insurance; Indemnification. From and after your start date and for so long as the Company maintains any directors and officers liability insurance policy, you will be
provided in respect of your service to the Company with the same coverage under such policy as is provided to other directors or officers of the Company in respect of their service to the Company. In addition, from and after your start date, the
Company will indemnify you to the maximum extent permitted under applicable law and/or the Company’s charter or by-laws to the extent that such indemnification is provided to other directors or officers of the Company. Such coverage and
indemnification will be provided, to the extent that you are entitled thereto, without regard to your termination of employment. 

  

	 	7.	Stock Options. On or as soon as practicable after your start date and upon approval of the Board, the Company will grant you an option to purchase 125,000 shares of common
stock, par value $0.001 per share, of the Company (and including any securities into which such shares are changed or for which such shares are exchanged) (the “Common Stock”), with a per share exercise price equal to the fair
market value of a share of Common Stock on the date of grant (as determined by the Board). These options will vest in 25% increments annually over four years from your start date, will be granted pursuant to the Company’s 2005 Stock Option Plan
and will be evidenced by a Stock Option Agreement in the form customarily used by the Company for its employees, a copy of which has been provided to you; provided, however, that, notwithstanding Section 4 of the Stock Option
Agreement, if your employment is terminated on the date of or within two years following a Change in Control either by the Company or its successor without Cause or by you for Good Reason, these options will become vested and exercisable in full to
the extent then unexercisable. For purposes of this letter, “Change in Control” will have the meaning set forth on Annex A hereto. 

  

	 	8.	At-Will Employment; Severance. You will have no set term of employment, and your employment will be at will. 

 If your employment is terminated before a Change in Control either by the Company without Cause or by you for Good Reason, then the Company shall continue
to pay you your then current base salary as of the date of termination for six months thereafter. In addition, upon any termination that entitles you to the foregoing severance benefits, the Company will also continue your coverage under the
Company’s medical benefit plan for twelve months at the active-employee premium rate. 

 

 
  

 If your employment is terminated on the date of or within two years following a Change in Control
either by the Company or its successor without Cause or by you for Good Reason, then the Company shall: (1) continue to pay you your then current base salary as of the date of termination for twelve months thereafter, (2) pay you a pro
rata portion of your bonus for the period in which you are terminated (as computed under the Company’s or its successor’s bonus programs in effect immediately prior to the termination), if any, which bonus shall be determined based on the
actual results of the Company for the applicable bonus period, and your pro rata share of any such bonus shall be based upon the percentage of the applicable bonus period that you were employed by the Company, and (3) continue your coverage
under the Company’s medical benefit plan for twelve months at the active-employee premium rate. 
 The continuation of base salary will
be paid in substantially equal installments over the applicable severance period in accordance with the Company’s standard payroll practices with respect to active employees but not less frequently than monthly. The payment of a pro rata
portion of your bonus (if any) will be paid in a lump sum at such time as bonuses are generally paid to executives during the period in which you are terminated. Notwithstanding the preceding two sentences, if Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), would cause the imposition of an excise tax on the salary continuation severance payment or bonus award severance payment if paid as aforesaid, then (i) payment of the installments
of the salary continuation severance payment will commence upon the earliest date that complies with Section 409A without the imposition of the excise tax, and the first such installment will include all portions of the salary continuation
severance payment that would have been paid but for the application of Section 409A to the salary continuation severance payment, and (ii) the bonus award severance payment will be paid upon the earliest date that complies with
Section 409A without the imposition of the excise tax. The Company’s obligations to make any payments and (if applicable) continue the medical coverage as set forth in this section 7 is conditioned upon: (x) your continued compliance
with your obligations under the Noncompetition Agreement, the form of which is attached hereto as Annex B, and (y) your execution, delivery and non-revocation of a valid and enforceable general release of claims substantially in the form
attached hereto as Annex C. 
 For purposes of this letter, “Cause” and “Good Reason” will
have the meanings set forth on Annex B hereto. 
  

	 	9.	Employee Covenants. As a condition of your employment, not later than your start date, you will execute and deliver the Company’s form of Noncompetition Agreement, which
is attached hereto as Annex B. 

 

 
  

 If the foregoing terms and conditions are consistent with your understanding, please sign this letter
below and return a copy to me. Rick, I am confident that you will be a valuable addition to our team, and I look forward to working with you. 
  

			
	Very truly yours,
	
	DELTEK SYSTEMS, INC.
	
	 /s/ Kevin Parker

	 By:
	 	Kevin Parker
	 Its:
	 	President and Chief Executive Officer

  

	
	ACCEPTED AND AGREED:
	
	 /s/ Richard Lowenstein

	Richard LowensteinEXHIBIT 10.21

 Exhibit 10.21 
 EMPLOYEE AGREEMENT 
 This Employee Agreement (“Agreement”) dated as of June 26,
2006, is made and entered into by and between Richard Lowenstein (the “Employee”) and Deltek Systems, Inc., a Virginia corporation (the “Company”). 
 WHEREAS, the Company desires to employ the Employee, and the Employee desires to be employed by the Company; and 
 WHEREAS, in connection with the Employee’s employment with the Company, the Employee shall receive, have access to, and contribute to various
confidential information and materials, which constitute valuable proprietary information of the Company; 
 NOW, THEREFORE, in consideration
of the premises and covenants hereinafter set forth, the continued employment by the Company of the Employee, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Employee, the parties hereto
agree as follows. 
 Section 1. Employee Covenants. The Employee agrees that (i) the Employee shall not at any time
disclose or furnish to any other Person or use for his or her own or any other Person’s account any Confidential or Proprietary Information (other than in the course of his or her employment with the Company) except for Permitted Disclosures,
(ii) the Employee shall not, at any time during his or her employment with the Company and thereafter during the Restriction Period, directly or indirectly solicit for employment, including recommending to any subsequent employer the
solicitation for employment of, any employee of the Company or any of its affiliates and (iii) the Employee shall not, at any time during his or her employment with the Company and thereafter during the Restriction Period, engage in any
Competitive Activity. 
 For purposes of this Agreement: 
 “Company’s Market Area” shall mean (x) the United States (including each state and the District of Columbia), and (y) each country or territory other than the United States which
accounted for at least two and one-half percent (2-1/2%) of software license revenue by the Company and its subsidiaries during the twelve (12) months immediately prior to the date of the Employee’s termination of employment as reported on
the Company’s financial statements. 
 “Company Product” shall mean any project-based business management and/or sales
management software and/or other product that, as of the date of the Employee’s termination of employment, the Company or any of its affiliates is developing, implementing, marketing and/or selling. 
 “Competing Business” shall mean the business of (i) developing, implementing, marketing and/or selling any Company Products or
Competing Products or (ii) developing, providing, performing, marketing or selling any Competing Services. 
 “Competing
Product” shall mean any product that competes with any Company Product. 
  

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 “Competing Service” shall mean implementation, consulting, support, maintenance,
development and/or training services relating to or in connection with the use of any Company Products or Competing Products. 
 “Competitive Activity” shall mean, directly or indirectly, (i) owning,
managing, operating, joining, controlling, being employed by, or participating in the ownership, management, operation or control of, or being connected in any manner with, including, without limitation, holding any position as a shareholder,
director, officer, consultant, independent contractor, employee or partner of, spokesman for, or investor in, any Competitor, or (ii) acting as a Competitor in an individual capacity; provided, that in no event (i) shall ownership
by the Employee of five percent (5%)or less of the outstanding securities of any class of any issuer whose securities are registered under the Securities Exchange Act of 1934, as amended, standing alone, be considered Competitive Activity, so long
as the Employee does not have, or exercise, any rights to manage or operate the business of such issuer other than rights as a shareholder thereof, (ii) shall being employed by a Competitor, standing alone, be considered Competitive Activity,
so long as (A) the Competitor has more than one discrete and readily distinguishable part of its business, (B) the Employee’s duties are not at or involving the part of the Competitor’s business that constitutes a Competing
Business, including, without limitation, serving in a capacity where any Person involved in the part of the Competitor’s business that constitutes a Competing Business reports to the Employee and (C) the Employee notifies the Company of
such employment prior to commencement of his or her employment with such Competitor, or (iii) shall being employed by a licensee of any Company Product and providing Competing Services to such licensee, standing alone, be considered Competitive
Activity. 
 “Competitor” shall mean any Person that is engaged in (or intends or proposes to engage in, or has been
organized for the purpose of engaging in) a Competing Business in the Company’s Market Area. 
 “Confidential or Proprietary
Information” shall mean any non-public information about the Company or any of its affiliates which was acquired by the Employee during his or her employment with the Company or any of its affiliates and which has or is reasonably likely to
have competitive value to the Company or any of its affiliates or to a Competitor, but excluding information that is or becomes generally available to the public other than as a result of a breach of this Agreement by the Employee. 
 “Permitted Disclosure” shall mean the disclosure of Confidential or Proprietary Information (i) made with the prior written consent
of the Company or (ii) required to be disclosed by law or legal process. 
 “Person” shall mean an individual, a
corporation, a partnership, a limited liability company, an association, a trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Restriction Period” shall mean the period commencing on the date of the Employee’s termination of employment and ending on the
twelve (12) month anniversary of such termination. 
  

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 Section 2. Remedies. The Employee agrees that any material breach of the terms of this
Agreement would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Employee therefore also agrees that in the event of said breach or any threat of breach, the Company shall be
entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Employee and/or any and all Persons acting for and/or with the Employee, without having to prove damages, in
addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including,
without limitation, the recovery of damages from the Employee. The Employee and the Company further agree that the provisions of the covenants contained in this Agreement are reasonable and necessary to protect the businesses of the Company and its
affiliates because of the Employee’s access to Confidential Information and his or her material participation in the operation of such businesses. 
 Section 3. Miscellaneous. 
 3.1. Amendments and Waivers. This Agreement and any of
the provisions hereof may be amended, waived (either generally or in a particular instance and either retroactively or prospectively), modified or supplemented, in whole or in part, only by written agreement signed by the parties hereto;
provided, that, the observance of any provision of this Agreement may be waived in writing by the party that will lose the benefit of such provision as a result of such waiver. The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach, except as otherwise explicitly provided for in such waiver. Except as otherwise expressly provided
herein, no failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single or
partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 
 3.2. Assignment; No Third-Party Beneficiaries. This Agreement, and the Employee’s rights and obligations hereunder, may not be assigned by the Employee, and any purported assignment by the Employee in
violation hereof shall be null and void. Nothing in this Agreement shall confer upon any Person not a party to this Agreement, or the legal representatives of such Person, any rights or remedies of any nature or kind whatsoever under or by reason of
this Agreement. 
 3.3. Notices. Unless otherwise provided herein, all notices, requests, demands, claims and other communications
provided for under the terms of this Agreement shall be in writing. Any notice, request, demand, claim or other communication hereunder shall be sent by (i) personal delivery (including receipted courier service) or overnight delivery service,
(ii) facsimile during normal business hours, with confirmation of receipt, to any facsimile number the Employee provides to the Company for purposes of receipt of notice, (iii) reputable commercial overnight delivery service courier or
(iv) registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below: 
  

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	 	(a)	If to the Employee, to the most recent home address that the Company maintains in its records for the Employee; and 

  

	 	(b)	If to the Company, to: 

 Deltek Systems, Inc. 

13880 Dulles Corner Lane 
 Herndon, VA
20171 
 Attention: Secretary 
 Facsimile: (703) 734-1146 
 All such notices, requests, consents and other communications shall be deemed to have been given when received.
Any party may change its facsimile number or its address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner then set forth. 
 3.4. Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights and obligations of the parties hereto shall
be governed by, the laws of the Commonwealth of Virginia, without giving effect to the conflicts of law principles thereof. 
 3.5.
Severability. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law but the invalidity or unenforceability of any provision or
portion of any provision of this Agreement in any jurisdiction shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that provision or
portion of any provision, in any other jurisdiction. In addition, should a court or arbitrator determine that any provision or portion of any provision of this Agreement is not reasonable or valid, either in period of time, geographical area, or
otherwise, the parties hereto agree that such provision should be interpreted and enforced to the maximum extent which such court or arbitrator deems reasonable or valid. 
 3.6. Entire Agreement. This Agreement shall constitute the entire agreement between the parties, and supersede all prior representations, agreements and understandings (including any prior course of dealings),
both written and oral, between the parties with respect to the subject matter hereof. The terms of this Agreement shall prevail and govern in the event of any conflict in terms between this Agreement and any Company agreement or Company policy
applicable to the Employee. 
 3.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all such counterparts shall together constitute one and the same instrument. 
 3.8. No Right to Continued
Employment. This Agreement shall not confer upon the Employee any right with respect to continuance of employment by the Company or any Affiliate thereof, nor shall it interfere in any way with the right of the Company or any Affiliate thereof
to terminate the Employee’s employment at any time. 
  

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 3.9. Binding Effect. This Agreement shall inure to the benefit of, and be binding on, the
successors and assigns of each of the parties, including, without limitation, the Employee’s heirs and the personal representatives of the Employee’s estate and any successor to all or substantially all of the business and/or assets of the
Company. 
 3.10. General Interpretive Principles. The headings of the sections, paragraphs, subparagraphs, clauses and subclauses of
this Agreement are for convenience of reference only and shall not in any way affect the meaning or interpretation of any of the provisions hereof. Words of inclusion shall not be construed as terms of limitation herein, so that references to
“include”, “includes” and “including” shall not be limiting and shall be regarded as references to non-exclusive and non-characterizing illustrations. 
 IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the parties hereto, all as of the date first above written. 
  

									
		 		 	DELTEK SYSTEM, INC.
			
	 /s/ Richard M. Lowenstein
	 		 	 /s/ Mary Burden

	Richard M. Lowenstein	 		 	By:	 	Mary Burden
	Employee	 		 	Title:	 	VP Human Resources

  

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