Document:

ex10-3

 

EXHIBIT 10.3

AMERICAN MANAGEMENT SYSTEMS, INCORPORATED

1992 AMENDED AND RESTATED STOCK OPTION PLAN E, AS AMENDED

AND IN EFFECT ON MARCH 29, 1995

I.     Purposes

       There are three purposes of 1992 Amended and Restated Stock Option Plan E
(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 at the end of this Section 2, the Plan shall
be implemented and administered by the Board of Directors of the Corporation
(the “Board”) or a Stock Option/Award Committee (the “Committee”) appointed by
the Board and composed of three or more directors of the Corporation.

       The 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 option price of the shares subject to each option
(subject to paragraph D of Section 6), 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 Committee at a meeting at which a quorum is present, or
acts approved in writing by a majority of the members of the Committee, shall
be the valid acts of the

 

 Committee. The 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 member of the Board or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

       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 three or
more Outside Directors, each of whom is a “disinterested person” within the
meaning of Rule 16b-3(c)(2)(i) of the Securities and Exchange Commission, shall
have the sole authority (a) to make awards to directors of the Corporation who
are not Outside Directors and to all persons who are “officers” of the
Corporation or “beneficial owners” of more than ten percent of any class of
equity security 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
(b) to perform all other functions of the Board or Committee with respect to
outstanding awards to any of such directors, officers, or ten-percent
shareholders, including without limitation amendments to this Plan or such
outstanding awards which affect such persons. Further, notwithstanding any
other provision of this Section or the Plan, all awards made to Outside
Directors shall be automatic and nondiscretionary as set forth in the Plan.

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 shall also 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
Committee or the Board 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 of Directors,
or shall interfere in any way with the right of the Corporation to terminate
the membership on the Board of Directors 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 6 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. For incentive stock plans

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 granted after December 31, 1986, 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 of Directors
or the Committee 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.

       Each Outside Director automatically shall be granted non-qualified stock
options to purchase 5,000 shares on the date of the Outside Director’s first
election or appointment to the Board, subject to vesting as provided in
Paragraph B of Section 6 hereof. Each Outside Director automatically shall be
granted non-qualified stock options to purchase an additional 5,000 shares (the
“Additional Options”) on the day after all stock options previously granted
under this paragraph become 100% vested (other than vesting by reason of death
or disability). All such subsequent grants of stock options shall vest, as to
one-sixtieth, on the date of grant and shall thereafter be subject to vesting
as provided in Paragraph B of Section 6 hereof.

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 2,250,000 shares,
subject to adjustment in accordance with the provisions of paragraph G of
Section 6 hereof. Shares subject to options granted under the Plan may be
authorized and unissued shares or shares previous acquired or to be acquired by
the Corporation and held in treasury. Any shares subject to an option which
expires for any reason or is terminated unexercised as to such shares may again
be subject to an option granted under the Plan.

       B.     Maximum
Number or Options Per Year. The number of shares which may be
subject to options granted under the Plan in any single calendar year for
awards earned for one-year Performance Periods shall not exceed (i) 202.500
shares, in the case of Performance Periods ending before January 1, 1992, and
(ii) 101.250 shares in the case of Performance Periods beginning on or after
January 1, 1992, subject to adjustment in accordance with paragraph G of
Section 6 hereof. There shall be no annual limitation on options granted with
respect to awards earned for Performance Periods of more than one year. The
maximum number of shares which may be subject to options granted under the Plan
to any individual during the life of the Plan

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 shall be 100,000 shares subject to adjustment in accordance with paragraph
G of Section 6 hereof.

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 or
the Committee shall authorize. Option Agreements generally shall be in such
form and contain such additional provisions as the Board or the 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 or the Committee at
the same time the option is granted, except that the maximum vesting period for
nonqualified stock options shall be five (5) years and the maximum vesting
period for incentive stock options shall be seven (7) years. 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 or the Committee.

       One-sixtieth of options granted to each Outside Director shall vest on the
first date of election or appointment of each such Outside Director and an
additional one-sixtieth shall vest on the same day of each month thereafter, so
long as such Outside Director remains a member of the Board of Directors of the
Corporation and, if such Outside Director resigns as an Outside Director after
completion of ten (10) or more years of continuous service as an Outside
Director, so long as such individual survives, until such option is vested in
full. 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; provided, however, that (i) options granted to any director
or “officer” of the Corporation or “beneficial owner” of more than ten percent
of any class of equity security of the Corporation, as defined for purposes of
Sections 16(a) and 16(b) of the Act shall not be exercisable for a period of at
least six months from the date of grant, and (ii) no incentive stock option
granted on or before December 31, 1986 may be exercised while there is
outstanding any incentive stock option which was granted before the date of the
incentive stock option to be exercised and which relates to stock in the
Corporation, in a corporation which at the time of granting the earlier
incentive stock option was a parent or subsidiary of the Corporation, or in a
predecessor corporation of any such corporations. An incentive stock option is
considered to be outstanding until such incentive stock option is exercised in
full or expires by reason of lapse of time.

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       C.     Repurchase
Amendment. Options granted to employees 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 an 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 or the Committee shall authorize, and shall be in such form and
contain such provisions as the Board or the 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
Committee or the Board, 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 3
hereof), the purchase price of the Common Stock covered by such incentive stock
option shall not be less than 1l0% 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, except those options
granted on the basis of awards earned for one-year Performance Periods under
the Corporation’s incentive compensation programs, shall be the fair market
value of the Common Stock on the date of grant. The exercise price of
nonqualified stock options granted on the basis of awards earned for one-year
Performance Periods under the Corporation’s incentive compensation programs may
be other than the fair market value of the Common Stock on the date of grant
only if the exercise price is determined by a formula which is based on the
fair market value of the Common Stock, as of a date, or for a period, that is
within three months of the date of grant and which is selected by the Board of
Directors or Committee, in its sole discretion, and determined by the Board of
Directors or Committee, in its sole discretion, to be in the best interests of
the Corporation and consistent with the intent of the incentive compensation
program. The exercise price as determined under any such formula may be below
fair market value of the Common Stock on the date of grant.

              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 most recent 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,

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 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 in cash, or in the sole
discretion of the Board or Committee, (i) by exchange of Common Stock of the
Corporation, or (ii) partly in cash and partly by exchange of such Common
Stock, provided that 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 three (3) months
prior to the date of exercise.

       The Board or the Committee 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.     Termination
of Options. Subject to earlier termination as provided
below, (i) all nonqualified stock options shall expire, and all rights granted
under nonqualified stock Option Agreements shall become null and void on the
date specified in the Option Agreement, which date shall be no later than five
(5) years after the nonqualified stock options are granted and (ii) all
incentive stock options shall expire, and all rights granted under incentive
stock Option Agreements shall become null and void on the date specified in the
Option Agreement, which date shall be no later than eight (8) years after the
date the incentive stock options are granted.

       Upon termination of an employee’s employment with the Corporation or a
Subsidiary for any reason whatsoever, or upon termination of an Outside
Director as a member of the Board of Directors for any reason other than
resignation as an Outside Director following completion of ten (10) or more
years of continuous service as an Outside Director, death or disability, all
options held by such employee or Outside Director which are not exercisable on
the date of such termination shall expire. To the extent nonqualified stock
options are exercisable on such date, shares subject to nonqualified stock
options held by an employee may be purchased during the “exercise period,”
after which the nonqualified stock options shall expire and all rights granted
under the Option Agreement shall become null and void. The “exercise period”
for shares subject to nonqualified stock options 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 nonqualified stock option expires by its
terms, or (ii) (A), except in the case of death or disability, within thirty
(30) days, or (B) in the case of death or disability, within one (1) year after
the date of termination of employment. Upon termination of an Outside Director
as a member of the Board of Directors for the reason of resignation as an
Outside Director following completion of at least ten (10) years of continuous
service as an Outside Director, death or disability, shares subject to
nonqualified stock options may be purchased by the Outside Director, his heirs,
legatees, or legal representatives, as the case may be, at any time until the
date on which the nonqualified stock option expires by its terms.

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       To the extent incentive stock options are exercisable on the date of
termination, shares subject to incentive stock options may be purchased by the
employee, his heirs, legatees or legal representatives, as the case may be, on
the earlier of (i) the date on which the incentive stock option expires by its
terms or (ii) (A) except in the case of death or disability, within thirty (30)
days, or (B) in the case of death or disability, within ten (l0) weeks after
the date of termination of employment, after which the incentive stock options
shall expire and all rights under the Option Agreements shall become null and
void; provided, however, that if there is outstanding one or more vested
incentive stock options granted on or after January 1, l986, but before January
1, l987 (a “Post January 1986 Option”), then the period during which shares
subject to a Post January 1986 Option may be purchased shall be extended
automatically by one business day beyond the expiration date (as extended) of
the next earlier outstanding Post January 1986 Option. In no event will any
granted and outstanding incentive stock option expire more than three (3)
months after the date of the optionee’s termination of employment. The
foregoing is illustrated by the following examples. In the case of an employee
whose employment is terminated, except for death or disability, and who has
several vested Post January 1986 Options, the first would expire thirty (30)
days after the date of the employee’s termination; the second would expire
thirty (30) days and one (1) business day after the date of the employee’s
termination and the third would expire thirty (3) days and two (2) business
days after the date of the employee’s termination: and so on for up to three
(3) months after the date of the termination of the employee’s employment. In
the case of an employee whose employment is terminated because of death or
disability and who has several Post January 1986 Options, the first would
expire ten (10) weeks after the date of the employee’s termination: the second
would expire ten (10) weeks and one (1) business day after the date of the
employee’s termination; and the third would expire ten (10) weeks and two (2)
business days after the date of termination of the employee’s termination; and
so on for up to three (3) months after the date of the termination of the
employee’s employment.

       The disability of an optionee shall be determined in the sole discretion
of the Board or Committee whose determination of such disability shall be
absolute, final and conclusive.

       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, and each option shall be exercisable during the optionee’ s
lifetime only by him. 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.
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 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

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 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.

VIII.   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.

IX.     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.

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X.     Termination and Amendment of the Plan

       Subject to obtaining shareholder approval of this Amended and Restated
Stock Option Plan E at the annual meeting of the shareholders on May 8, l992,
the Plan shall remain in effect until January 1, 2002, unless sooner terminated
as hereinafter provided. 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 increase the benefits
accruing to participants under the Plan, (ii) increase the number of shares
which may be issued under the Plan (except as provided in paragraph G of
Section 6 hereof), or (iii) materially modify the requirements as to
eligibility for participation in the Plan.

       An amendment revising the exercise price, date of exercisability, vesting
provisions or number of shares subject to an nonqualified stock option granted
to an Outside Director shall not be made more frequently than every six months
unless necessary to comply with the Code or with the Employee Retirement Income
Security Act of 1974, as amended.

XI.     Indemnification of Committee

       In addition to such other rights of indemnification as they may have as
directors or as members of the Committee, the members of the 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 Committee
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 Committee member shall in writing offer the Corporation the
opportunity, at its own expense, to defend the same.

XII.    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 become 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.

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       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.

XIII.   Approval of Plan; Effective Date

       The plan was adopted by the Board of Directors on March 22, 1985,
effective as of March 22, 1985. The Plan was approved by the shareholders in
May 1985. The Plan was amended by resolutions of the Board February 21, 1986,
February 17, 1987, March 8, 1987, and March 17, 1988. The Plan was further
amended by the Board of Directors on February 18, 1988, subject to shareholder
approval at the annual meeting of the shareholders on May 13, 1988. The Plan
was further amended by resolutions of the Board on January 7, 1991, and May 10,
1991. The Plan was further amended and restated by the Board of Directors on
February 21, 1992, subject to, and effective upon, shareholder approval at the
annual meeting of the shareholders on May 8, 1992. The Plan was further
amended by the Board of Directors on February 24, 1993, subject to shareholder
approval of the amendment at the annual meeting of shareholders on May 14,
1993. The Plan was amended by the Board of Directors on February 24, l995,
subject to shareholder approval of the amendment at the annual meeting of
shareholders on May 18, 1995.

10ex10-18

 

EXHIBIT 10.18

FOURTH AMENDMENT TO CREDIT AGREEMENT

       This Fourth Amendment (the “Fourth Amendment”) dated as of February 20,
2002 amends that certain $120,000,000 Multi-Currency Revolving Credit Agreement
dated as of January 9, 1998 among American Management Systems, Incorporated (as
a Borrower and the Guarantor), various other Borrowers, the Lenders named
therein and Bank of America, N.A., formerly NationsBank, N.A., as
Administrative Agent, and Wachovia Bank, N.A., as Documentation Agent, as
amended by a certain First Amendment to Credit Agreement dated as of March 16,
1998, a certain Second Amendment to Credit Agreement dated as of March 21,
2001, and a certain Third Amendment to Credit Agreement dated as of September
28, 2001, and as further modified by a certain Waiver and Agreement dated as of
July 25, 2001 (such Credit Agreement, as amended or modified by such amendments
and such waiver and agreement, being referred to as the “Agreement”).

       WHEREAS, the Borrowers and the Guarantor have requested that the Lenders
amend certain provisions of the Agreement, and the Lenders are willing to amend
the Agreement as herein provided;

     NOW, THEREFORE, in consideration of the promises and the mutual covenants
contained herein, the Borrowers, the Guarantor and the Lenders agree as
follows:

       1.     Definitions. Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to them in the Agreement.

       2.     EBILTDA. The definition of “EBILTDA” in Section 1.1 of the Agreement
shall be amended, as of December 30, 2001, by adding the following sentences at
the end of such definition:

		
	 	“In addition, for the purposes of Section 5.2(b)
hereof only, the amount of EBILTDA computed with
respect to any four-fiscal-quarter period that
includes the fiscal quarter ended December 31, 2001,
shall be increased by adding back to the amount
otherwise calculated in accordance with the definition
of EBILTDA the amount, not to exceed $25,500,000,
recorded as non-cash charges to income for the fiscal
quarter ended December 31, 2001.

		
	 	        “Without limiting the generality of the preceding
sentence, the parties acknowledge that the adjustments
to EBILTDA set forth in such sentence shall not apply
in determining the ratio of EBILTDA to Interest and
Lease Charges for purposes of the definition of
‘Applicable Rate.’ ”

 

 

       3.     EBITDA. The definition of “EBITDA” in Section 1.1 of the Agreement
shall be amended, as of December 30, 2001, by adding the following sentences at
the end of such definition:

		
	 	“For the purposes of Section 5.2(a) hereof only, the
amount of EBITDA computed with respect to any
four-fiscal-quarter period that includes the fiscal
quarter ended December 31, 2001, shall be increased by
adding back to the amount otherwise calculated in
accordance with the definition of EBITDA the amount,
not to exceed $25,500,000, recorded as non-cash
charges to income for the fiscal quarter ended
December 31, 2001.

       4.     Conditions
Precedent. The effectiveness of this Fourth Amendment shall
be subject to fulfillment of the following conditions:

		
	 	        (a)     The Administrative Agent shall have received an original of this
Fourth Amendment executed by AMS (as Borrower and as Guarantor), each of
the other Borrowers and the Required Lenders; and
	 
	 	        (b)     AMS shall have paid to the Administrative Agent and each Lender
all amounts required to be paid to such Persons pursuant to the fee
letter dated February 20, 2002 between Bank of America, N.A. and AMS.

       5.     Acknowledgement of Guarantor. The Guarantor affirms its obligations
under the Guaranty and consents to this Fourth Amendment.

       6.     Representations and Warranties. Each Borrower represents and warrants
to the Agents and each Lender as follows:

              6.1     Existence. Each of the Borrower and its Subsidiaries is a
corporation or partnership duly organized, validly existing and in good
standing under the Laws of the nation in which it is organized and any
political subdivision thereof, and is duly qualified to do business and in good
standing in each other nation and any political subdivision thereof where the
nature or extent of its business activities requires such qualification, except
where the failure to be so qualified and in good standing could not reasonably
be expected to have a Materially Adverse Effect.

              6.2     Power and Authority. Each of the Borrower and its Subsidiaries has
all requisite power and authority to own or lease its properties, conduct its
business as now conducted and to execute and deliver the Fourth Amendment and
to perform the Agreement as amended hereby.

2

 

              6.3     Authorization and Enforceability. The execution, delivery and
performance of the Fourth Amendment have been duly authorized by all necessary
corporate or partnership action of each of the Borrower and its Subsidiaries
and require no consent of any Person which has not been obtained, and the
Fourth Amendment constitutes, and the Agreement as amended hereby constitutes,
valid and binding obligations of each of the Borrower and its Subsidiaries
party thereto, enforceable in accordance with their respective terms, except as
such enforceability may be limited by Debtor Relief Laws and by general
principles of equity.

              6.4     No Violation. The execution, delivery and performance of the Fourth
Amendment does not and will not violate any Borrower’s or any of its
Subsidiaries’ charter, bylaws, partnership agreement or other organizational
documents, any Laws applicable to such Borrower or any of its Subsidiaries or
any agreement to which such Borrower or any of its Subsidiaries is a party or
by which such Borrower or any of its Subsidiaries is bound, except for
violations of Laws or agreements which could not reasonably be expected to have
a Materially Adverse Effect.

              6.5     No Default. As of the date of this Fourth Amendment, no Default
Condition or Event of Default has occurred and is continuing under the
Agreement which has not been waived.

       7.     Cost and Expenses. AMS shall pay all reasonable out-of-pocket costs,
fees and expenses of the Administrative Agent incident to this Fourth
Amendment, including the reasonable fees, out-of-pocket expenses and other
disbursements of Smith Helms Mulliss & Moore, L.L.P., counsel for the
Administrative Agent, in connection with this Fourth Amendment.

       8.     Reaffirmation. Except as otherwise expressly amended by this Fourth
Amendment, the Agreement is and shall continue to be in full force and effect
in accordance with its terms. The parties hereto further agree that each
reference in any Loan Document to the “Agreement” or the “Loan Agreement” shall
be deemed to refer to the Agreement as amended by this Fourth Amendment and as
it may be amended, modified, supplemented, restated, renewed or extended from
time to time hereafter.

       9.     Miscellaneous.

              9.1     Governing Law. This Fourth Amendment shall be governed by, and
construed and interpreted in accordance with, the laws of the State of New
York.

              9.2     No Novation. The transactions described herein do not constitute, and
should not be construed to be, a novation of any indebtedness outstanding under
the Agreement.

              9.3     Successors and Assigns. This Fourth Amendment shall be binding upon,
inure to the benefit of and be enforceable by the Borrowers, the Guarantor, the
Agents, the Lenders and their respective successors and permitted assigns.

3

 

              9.4     Invalidity. If any provision of this Fourth Amendment shall be held
invalid by any court of competent jurisdiction, such holding shall not
invalidate any other provision hereof.

              9.5     Counterparts. This Fourth Amendment may be executed in several
counterparts, each of which shall be an original and all of which together
shall constitute but one and the same instrument.

              IN WITNESS WHEREOF, each Borrower, the Guarantor and the Lenders parties
hereto have caused this Fourth Amendment to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	AMERICAN MANAGEMENT

SYSTEMS, INCORPORATED,

as Borrower and Guarantor

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMS MANAGEMENT SYSTEMS

DEUTSCHLAND GmbH,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMS MANAGEMENT SYSTEMS

EUROPE S.A./N.V.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

4

 

	 	AMS MANAGEMENT SYSTEMS U.K. Ltd.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMS MANAGEMENT SYSTEMS CANADA

INC.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMSY MANAGEMENT SYSTEMS

NETHERLANDS, B.V.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	NORDIC BUSINESS MANAGEMENT

SYSTEMS AB,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

5

 

	 	AMS MANAGEMENT SYSTEMS

AUSTRALIA PTY. LIMITED,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMS MANAGEMENT SYSTEMS

(SWITZERLAND) AG,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMS MANAGEMENT SYSTEMS ITALIA

S.p.A.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMS MANAGEMENT SYSTEMS

FRANCE S.A.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

6

 

	 	AMS MANAGEMENT SYSTEMS

POLAND Sp. Z O.O.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMERICAN MANAGEMENT SYSTEMS

PORTUGAL-CONSULTORIA E

DESENVOLVIMENTO DE SOFTWARE,

SOCIEDADE UNIPESSOAL IDA, as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

	 	AMS MANAGEMENT SYSTEMS

ESPAÑA, S.A.,

as Borrower

	 	By:      /s/Frank A. Nicolai     

Name:      Frank A. Nicolai     

Title:      Director     

7

 

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF __________________

       The foregoing instrument was acknowledged before me in my jurisdiction
aforesaid this ____ day of __________, _______ by __________________, who is
____________ of AMS Management Systems Espana, S.A., for and on behalf of
the corporation.

	 	____________________________

                Notary Public

My commission expires: _________________________

8

 

	 	BANK OF AMERICA, N.A.,

as Administrative Agent and Lender

	 	By:      /s/Robert Martriello     

Name:      Robert Martriello     

Title:      Principal     

	 	WACHOVIA BANK, N.A.,

as Documentation Agent and Lender

	 	By:      /s/Elizabeth Witherspoon     

Name:      Elizabeth Witherspoon     

Title:      Vice President     

	 	BANK OF TOKYO – MITSUBISHI

TRUST COMPANY, as Lender

	 	By:      /s/Pamela Donnelly     

Name:      Pamela Donnelly     

Title:      Vice President     

	 	COMERICA BANK, as Lender

	 	By:      /s/Jeffrey M. Laffrehy     

Name:      Jeffrey M. Laffrehy     

Title:      Account Officer     

	 	KBC BANK N.V., as Lender

	 	By:      /s/Robert Snauffer     

Name:      Robert Snauffer     

Title:      First Vice President     

	 	By:      /s/Eric Raskin     

Name:      Eric Raskin     

Title:      Vice President     

9

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