Document:

exv10w1

 

Exhibit 10.1  

SEPARATION AGREEMENT AND GENERAL RELEASE 

     THIS SEPARATION AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made
and entered into by and between John S. Brittain, Jr. (“Employee”), residing at
11300 Peacock Hill Way, Great Falls, VA 22066, and American Management Systems,
Incorporated (“AMS”), with its principal place of business at 4050 Legato Road,
Fairfax, VA, 22033, (each individually a “Party” and collectively “the
Parties”), and is effective as of the date of execution by Employee.

     WHEREAS, Employee is employed by AMS as an Executive Vice President and
Chief Financial Officer; and

     WHEREAS, pursuant to this Agreement, Employee and AMS agree to end the
employment relationship as of September 30, 2003; and

     WHEREAS, AMS wishes to provide Employee assistance in transitioning from
AMS employment and so has offered, and Employee has agreed to accept, this
Agreement as set forth below; and

     WHEREAS, the Parties agree that it is in their mutual interest to resolve
all matters between them on an amicable basis;

     NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements set forth in this Agreement, the sufficiency of which the Parties
acknowledge, it is agreed as follows:

          1. Separation from Employment.

               Employee’s last day as an AMS employee will be September 30, 2003 (the
“Separation Date”).

          2. Severance and Other Consideration.

  	 	 
	 (a) In consideration
        for Employee’s promises in this Agreement, and in full settlement
        and release of any actual or potential claims, AMS agrees to do the following:
	 	 
	 	 i) pay to Employee the sum
        of Four Hundred Thousand Dollars ($400,000.00) which constitutes an amount
        equal to one year of Employee’s current base salary;

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	 	 ii) pay to Employee an additional
        payment in the amount of Three Hundred Sixty-Two Thousand Dollars ($362,000.00);
	 	 
	 	 iii) pay on behalf of Employee
        eighteen (18) months of premiums for health and dental insurance
        continuation coverage under any AMS health plan in which Employee is enrolled
        as of the Separation Date pursuant to Section 4980B of the Internal
        Revenue Code of 1986, as amended (the “Code”), less the employee
        portion of such premiums which Employee agrees to timely pay on a monthly
        basis, such coverage not to extend beyond March 31, 2005. AMS’s
        share of the premiums paid for such plans shall not constitute taxable
        income to Employee. In the event that Employee secures alternative coverage
        before the expiration of this time period, AMS’s obligation hereunder
        will cease;
	 	 
	 	 iv) provide Employee with
        the option of recording an outgoing message for his AMS voicemail box
        that contains information as to where he can be reached. AMS will maintain
        the outgoing message in the voicemail system for three (3) months
        after the Separation Date. Employee shall provide AMS with the contents
        of this outgoing message and AMS shall have the right to approve of the
        contents of any such message;
	 	 
	 	 v) provide Employee with executive
        outplacement services through Right Management Consultants’ Professional
        Management Service program or another outplacement services company selected
        by Employee for a period of up to twelve (12) months after he first
        engages services with Right Management Consultants or another outplacement
        services company, subject to advance consultation with and written approval
        by AMS’s Chief Human Resources Officer; and
	 	 
	 	 vi) consult with Employee
        as to the content of any press release relating to his departure from
        AMS.

  	 	 
	 (b) Within thirty
        (30) days following the receipt by AMS of this Agreement signed by
        Employee, seventy-five percent (75%) of the payments referenced in Sections 2(a)(i)
        and (ii) will be made by direct
	 	 
	 	 

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	 deposit into
        Employee’s bank account into which his paychecks are currently deposited.
        These payments shall be subject to all legally required withholdings and
        deductions. The remaining twenty-five percent (25%) of the payments contemplated
        under Sections 2(a)(i) and (ii) shall be paid with interest,
        at the federal prime rate, two (2) months after the Separation Date,
        provided Employee has fully complied with the obligations set forth in
        this Agreement. This second payment will be subject to all legally required
        withholdings and deductions. If Employee has not complied with the obligations
        in this Agreement, in particular Sections 11, 12, 13, 16, 17 and
        21, Employee shall not be entitled to, nor shall Employee be paid, the
        remaining twenty-five percent (25%) of the severance payment referenced
        in Sections 2(a)(i) and (ii) above.

         Employee understands that AMS will not provide him with severance
pay or any of the other benefits listed above if he revokes his
signature as provided for in Section 18 of this Agreement.

         3. Consideration Acknowledgement.

         The Parties agree that AMS’s promises in Section 2 are in full, final and
complete settlement of all claims Employee may have against AMS, its
affiliates, past and present officers, directors, employees, agents, successors
and assigns, and exceed those to which Employee otherwise would be entitled
absent his promises in this Agreement.

         4. Stock Options and Restricted Stock.

         The Employee was granted a nonqualified stock option for 65,000 shares of
common stock of AMS at a strike price equal to $19.12 on March 11, 2002 and an
additional nonqualified stock option grant for 40,000 shares of common stock of
AMS at a strike price equal to $11.04 on March 6, 2003. All of Employee’s
stock options shall fully vest on the Separation Date. Employee shall retain
the right to exercise any of his outstanding stock options through September
30, 2004. Additionally, Employee’s Five Thousand (5,000) shares of AMS common
stock granted in the form of deferred stock units shall fully vest on
Separation Date. Employee acknowledges and recognizes that he is subject to
all applicable laws and regulations with regard to trading in AMS securities.
Accordingly, in order to ensure compliance with all applicable laws and
regulations, Employee agrees to clear any intended acquisition or disposition
of AMS securities with AMS’s Office of the General Counsel.

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         5. Other Welfare Benefit Plans.

         This Agreement does not affect in any way Employee’s rights to any vested
amounts in his accounts under the American Management Systems, Inc. 401(k)
Plan, the American Management Systems, Inc. WealthBuilder Plan, the American
Management Systems, Incorporated Deferred Compensation Plan, and the American
Management Systems, Incorporated StockBuilder Plan.

         6. Accrued Vacation.

         AMS will pay Employee any accrued but unused annual leave at current rate
of pay as of his Separation Date, in accordance with AMS policies. Such
payment will be disbursed by check made payable to Employee no later than the
next regularly scheduled payday after the Separation Date and delivered to
Employee’s home address.

         7. Business Expenses.

         AMS will reimburse Employee for legitimate business expenses incurred on
or before the Separation Date in accordance with AMS’s expense reimbursement
practices so long as such expenses are submitted on or before October 31, 2003.

         8. Non-Admission of Liability.

         Nothing in this Agreement shall be construed as an admission of liability
by AMS, its affiliates, or its past and present officers, directors, employees
or agents, and AMS specifically disclaims liability to or wrongful treatment of
Employee on the part of itself, its affiliates, and its past and present
officers, directors, employees and agents.

         9. No Pending Actions.

         Employee represents that he has not filed any complaints or charges
against AMS with the U.S. Department of Labor, the Equal Employment Opportunity
Commission, or with any other federal, state or local agency or court, and
covenants that he will not seek to recover on any claim released in this
Agreement. To the extent permitted by law, Employee promises that he will not
voluntarily assist any third party in pursuing any legal claim against AMS, and
he will immediately notify AMS if he is asked to provide such assistance.

         10. Legal Fees and Indemnification.

  	 
	(a) In the event that Employee is made a party, or, is threatened
to be made a party, to any action, suit or proceeding, whether
civil, criminal, administrative, or

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	 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 twenty
        (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 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.

         With respect to any claim(s) that may be advanced against Employee
personally for actions lawfully taken during the ordinary course of his
employment with AMS, Employee shall be entitled to the same right to
indemnification by AMS that is afforded to similarly situated employees of AMS,
namely the indemnification rights that may exist under AMS’s insurance policies
or in an individual employment agreement. No provision in this Agreement shall
be construed to create any additional rights to indemnification.

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       11.  Transfer of Duties.

         Employee shall take all steps reasonably requested by AMS to ensure an
orderly transfer of his duties as an officer and/or director of AMS and its
subsidiaries and shall take all steps reasonably necessary to ensure that the
accounts of AMS and each of its subsidiaries of which Employee is a director or
officer immediately prior to the Separation Date in respect of the 2002
financial year (or part thereof) are finalized and, if requested by AMS,
approved by Employee on or prior to the Separation Date.

       12. Ongoing Cooperation.

       In the event that a third party pursues a legal claim against AMS relating
in any way to any task or project on which Employee worked while at AMS,
Employee agrees to provide reasonable and lawful cooperation to AMS in its
defense against such claim. AMS shall pay any reasonable expenses incurred by
Employee in connection with such cooperation. Employee voluntarily agrees to
make himself available to AMS for interviews and to provide AMS with truthful
and accurate information including, but not limited to, documents, testimony,
or written or oral statements. Employee agrees to notify AMS, directly or
through counsel, within five (5) days of receipt of any subpoena regarding his
employment with AMS so that AMS may take any action that it deems appropriate
to protect its proprietary and other interests.

     13. Employee’s General Release and Covenant Not to Sue.

     Employee covenants not to sue, and fully and forever releases and
discharges AMS, its subsidiaries, affiliates, divisions, successors and
assigns, together with its past and present shareholders, directors, officers,
employees, and agents (collectively, the “Releasees”) from any and all claims,
debts, liens, liabilities, demands, obligations, acts, agreements, causes of
action, suits, costs and expenses (including attorneys’ fees), damages (whether
pecuniary, actual, compensatory, punitive or exemplary) or liabilities of any
nature or kind whatsoever in tort, contract, or by federal, state or local
statute, regulation or order, law or equity or otherwise, whether now known or
unknown; provided, however, that nothing in this Agreement shall
either waive any rights or claims of Employee that arise after the date
Employee signs this Agreement or which, as a matter of law, cannot be released
or waived. Moreover, nothing in this Agreement shall impair or preclude
Employee’s right to claim reasonable expenses, legal fees or indemnification
pursuant to Sections 10 and 12, or to take action to enforce the terms of this

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Agreement. This release includes, but is not limited
  to, claims arising under federal, state or local laws prohibiting employment
  discrimination, including but not limited to Title VII of the Civil Rights Act
  of 1964, as amended, the Age Discrimination in Employment Act, as amended, or
  the Americans with Disabilities Act; claims under the Worker Adjustment and
  Retraining Notification Act; claims for attorneys’ fees or costs; workers’
  compensation claims; any and all claims regarding any employment contract, whether
  written, oral, implied or otherwise; claims relating to AMS’s right to
  terminate its employees; claims for salary, payments in lieu of extended leave,
  incentive payments or any other remuneration, or any other claims under federal,
  state, or local statute, regulation or ordinance, common law, or any other law
  whatsoever, to the fullest extent permitted by law. Employee expressly agrees
  and understands that this is a 

GENERAL RELEASE.

         14. AMS’s Release and Covenant Not to Sue.

         Except as otherwise stated in this Section 14, AMS, on its sole behalf,
agrees not to sue, and further agrees to release, Employee with respect to any
claims, whether known or unknown, that it now has, has ever had, or may ever
have, against Employee related to any act or omission arising from and during
the course of Employee’s employment with AMS and occurring or existing on or
prior to the date on which AMS executes this Agreement, except,
however, this release is not intended, nor shall it be construed, to be
a release of any claims that may be brought by AMS against Employee for fraud,
embezzlement, misrepresentation, misappropriation, breach of fiduciary duty, or
similar intentional wrongdoing. AMS confirms that it has not filed any legal
proceedings against Employee; that it has not transferred any such claims to
any other person or entity; and that as of the date of AMS’s execution of this
Agreement, AMS is unaware of any claim that falls within the exceptions to this
release as set forth in this Section 14. Furthermore, this release is not
intended, and shall not be construed, to extend to any of Employee’s
undertakings under this Agreement or under the AMS Confidentiality and
Intellectual Property Rights Agreement signed by Employee on March 11,
2002.

         15. Employment Verification.

         Employee shall direct all employment verification inquiries to Ms.
Patricia Bradshaw, Vice President, Human Resources Operations, AMS, 4050 Legato
Road, Fairfax, VA 22033, who shall provide requestor only Employee’s dates of
employment and last job title and shall confirm his most recent salary.

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         16. Confidential Information and Return of Company Property.

         Employee acknowledges that all confidential information regarding the
business of AMS compiled by, created by, obtained by, or furnished to, Employee
during his employment with AMS is the exclusive property of AMS. On or before
the Separation Date, Employee shall return to AMS all originals and copies of
any material involving such confidential information. Employee further agrees
that such confidential information is a valuable and unique asset of AMS and
agrees that he will not at any time after execution of this Agreement, directly
or indirectly, divulge or use such information, whether or not such information
is in written or other tangible form unless required by law. Employee also
shall return to AMS on or before the Separation Date any items in his
possession, custody or control that are the property of AMS including, but not
limited to, his computer, employee manual, passwords, office equipment,
identification card, parking pass and office keys. In the event that AMS
believes that Employee has not returned its confidential information or
property, AMS shall notify Employee in writing of its belief and basis for its
claim. Employee shall have seven (7) days to cure the alleged defect or verify
in writing that he has returned the confidential information or company
property.

         17. Non-Disparagement.

         Subject to Employee’s obligation to provide truthful and accurate
information in legal proceedings, Employee agrees that he will not voluntarily
make any negative or disparaging statements (written or oral) about AMS or any
of its directors, officers or employees. It is not AMS management’s intent to
disparage Employee’s work abilities or to impede Employee’s ability to secure
alternate employment. In the event that Employee notifies the AMS Chief Human
Resources Officer of an alleged disparagement by a specific AMS employee, AMS
shall investigate such allegation, and if determined to be necessary, take
appropriate action to deter any such conduct.

         18. Execution and Revocation Periods.

         Employee acknowledges that he has been given at least twenty-one (21) days
to consider this Agreement and that he has seven (7) days from the date he
executes this Agreement in which to revoke it and that this Agreement will not
be effective or enforceable nor the payments and other benefits set forth in
Section 2(a) provided until after the seven (7) day revocation period ends.
Employee’s signature below, on a date before the expiration of the twenty-one
(21) day

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review period, shows that he has waived any of the remaining time within
the twenty-one (21) days. Revocation can be made by delivery of a written
notice of revocation to Mr. Garry Griffiths, Chief Human Resources Officer,
American Management Systems, Inc., 4050 Legato Road, Fairfax, VA, 22033, by
midnight on or before the seventh (7th) calendar day after Employee signs the
Agreement.

         19. Consultation with Counsel and Voluntary Acceptance.

         Employee acknowledges that he has been advised to consult with an attorney
of his choice with regard to this Agreement. AMS agrees to contribute up to
Three Thousand Dollars ($3,000.00) towards legal expenses incurred by Employee
for legal consultation, provided AMS receives a written invoice for such
expenses from Employee’s attorney representing that such services have, in
fact, been provided. Monies paid to Employee for legal expenses will be
considered taxable income to Employee. Furthermore, Employee hereby
acknowledges that he understands the significance of this Agreement, and
represents that the terms of this Agreement are fully understood and
voluntarily accepted by him.

         20. Binding Effect.

         This Agreement shall be binding on AMS and Employee and upon their
respective heirs, administrators, representatives, executors, successors and
assigns, and shall run to the benefit of the Releasees and each of them and to
their respective heirs, administrators, representatives, executors, successors
and assigns.

         21. Non-Compete, Non-Solicitation Provisions.

         Employee acknowledges that in the course of his employment with AMS he has
been exposed to a significant amount of highly confidential information about
AMS and its clients, business practices and strategies and that even
inadvertent disclosure of this information would cause AMS great harm.
Accordingly Employee agrees that:

  	 
	(a) for twelve (12) months from the Separation Date (the
“Restricted Period”) he will not, on his own behalf or on behalf of
any other person or entity, directly or indirectly solicit for the
provision of, or provide competitive products or services to, any
AMS customers for which he provided products and services on behalf
of AMS during the two (2) years prior to the Separation Date, or
any prospective customers that AMS was actively soliciting to
become clients during the two (2) years prior to his Separation
Date and in which Employee had any

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	 involvement
        in the solicitation or proposal process. “Competitive Products or
        Services” shall be defined as products or services, which are in
        whole or in part similar to AMS’s proprietary products or to services
        then available from AMS on the Separation Date;
	 	 
	 (b) during the Restricted Period, Employee
        will not directly or indirectly, on his own behalf or in aid of another
        person or entity, hire or engage or solicit for hire or engagement any
        individual who was an employee of AMS in the three (3) months prior to
        the solicitation or hire;
	 	 
	 (c) Employee
        agrees that the above restrictions are reasonable – including the
        short length of time, and the limitation as to AMS customers and prospective
        customers – and do not unreasonably restrict his ability to earn
        a living after the Separation Date. Employee further agrees that these
        restrictions protect AMS’s legitimate business interests. Employee
        also agrees that in addition to any other remedies, including an action
        for damages, AMS also may seek injunctive relief against Employee for
        violation of this Section.

         At the sole discretion of AMS, any of the provisions of Section 21 may be
waived by the Chief Human Resources Officer, but such waiver must be in
writing.

         22. Entire Agreement.

         This Agreement sets forth the entire agreement between Employee and AMS,
and fully supersedes any and all prior agreements or understandings, whether
written or oral, between them regarding its subject matter; provided,
however, that nothing in this Agreement is intended to or shall be
construed to modify, impair or terminate any obligation (a) of Employee
pursuant to the AMS Confidentiality and Intellectual Property Rights Agreement
signed by Employee on March 11, 2002, that by its terms imposes obligations
that survive Employee’s separation from employment with AMS (copy attached as
Exhibit A), or (b) of Employer pursuant to any agreements establishing the
terms of benefit or long term compensation plans with the exception of any
stock option agreements. Employee acknowledges that he has not relied upon any
statement or representation, written or oral, by any AMS Releasee that is not
set forth or referenced in this Agreement.

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         23. Amendment.

         This Agreement may be modified only by written agreement signed by both
Parties.

         24. Choice of Law.

         This Agreement shall be governed in all respects by the laws of the
Commonwealth of Virginia, without regard to its conflict of laws principles.

         25. Confidential Nature of Agreement.

         Employee agrees to keep both the existence and the terms of this Agreement
confidential and not reveal its contents to any person or entity (including
former and current employees of AMS). Notwithstanding the foregoing, Employee
may discuss this Agreement with his attorney, immediate family members,
financial consultants, or as otherwise required by law. However, Employee must
advise whomsoever he tells that he/she has the same confidentiality obligations
as Employee. This confidentiality provision is an essential part of the
consideration for AMS to enter into this Agreement and if breached, AMS would
be irreparably harmed and entitled to recover damages.

         26. Counterparts.

         This Agreement may be signed in counterparts and each such counterpart
shall be deemed to be an original but together all such counterparts shall be
deemed a single Agreement.

         27. Interpretation and Severability.

         The language in this Agreement shall be construed as a whole and will be
given its fair meaning. This Agreement will not be interpreted for or against
any Party. In the event that any one or more of the provisions contained
herein shall for any reason be held to be unenforceable in any respect under
the law of any state or of the United States, such unenforceability shall not
affect any other provision of this Agreement, but, with respect only to that
jurisdiction holding the provision to be unenforceable, this Agreement shall be
construed as if such unenforceable provision had never been in the Agreement.

         28. Arbitration.

         Any dispute or controversy arising under or in connection with this
Agreement shall be settled by arbitration, in accordance with the National
Rules for the Resolution of Employment Disputes 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

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within thirty (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 Commonwealth of Virginia.
  AMS and the Employee each irrevocably consent to the jurisdiction of the federal
  and state courts located in the Commonwealth of 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 obligations undertaken by the Employee pursuant to Sections 12,
  16, 17 and 21 hereof. 

 

PLEASE READ CAREFULLY.

THIS AGREEMENT AND GENERAL RELEASE INCLUDES A

RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

EMPLOYEE’S SIGNATURE BELOW ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT,

UNDERSTANDS ITS TERMS, AND HAS ENTERED INTO IT VOLUNTARILY AND KNOWINGLY.

  	 	 	 	 
	Dated: 	 09/09/03 	 	/s/ John S. Brittain, Jr. 
      
	 	
	 	

	 	 	 	John S. Brittain, Jr.
	 
	Dated:	  09/09/03 
	 	AMERICAN MANAGEMENT SYSTEMS,
        INCORPORATED
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/ Garry Griffiths
	 	 	  	 
  Garry
        Griffiths

        Executive Vice President &

           Chief Human Resources Officer

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Exhibit 10.2

SEPARATION AGREEMENT AND GENERAL RELEASE

      THIS SEPARATION AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made
and entered into by and between LARRY R. SEIDEL (“Employee”), residing at 4431
Dittmar Road, Arlington, Virginia 22207 and AMERICAN MANAGEMENT SYSTEMS,
INCORPORATED (“AMS”), with its principal place of business at 4050 Legato Road,
Fairfax, VA, 22033, (each individually a “party” and collectively “the
parties”) and is effective as of the date on which the last party to execute
this Agreement signs on the signature page hereof.

      WHEREAS, Employee was employed by AMS as an Executive Vice President; and

      WHEREAS, Employee and AMS agreed to end the employment relationship
effective July 31, 2003; and

      WHEREAS, AMS wishes to provide Employee assistance in transitioning from
AMS employment and so has offered and Employee has agreed to accept this
Agreement as set forth below; and

      WHEREAS, the parties agree that it is in their mutual interest to resolve
all matters between them on an amicable basis;

      NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements set forth in this Agreement, the sufficiency of which the parties
acknowledge, it is agreed as follows:

      1. Separation from Employment

          Employee’s last day as an AMS employee was July 31, 2003 (the
“Separation Date”).

      2. Severance and Other Consideration

	 	(a)	 	In consideration for Employee’s promises in this Agreement,
and in full settlement of any actual or potential claims for any
bonus, incentive compensation and severance obligations for 2003 and
prior years, and for the release of any other claims or potential
claims described in Section 12 herein, AMS agrees to do the
following:

	 	i)	 	pay to Employee the sum of One Million One
Hundred Forty Thousand Dollars ($1,140,000.00);

 

 

	 	ii)	 	(A) pay to Employee an amount equal to eighteen
(18) months of premiums for health and dental insurance
continuation coverage under any AMS health plans in which
Employee is enrolled as of the Separation Date pursuant to
Section 4980B of the Internal Revenue Code of 1986, as amended
(the “Code”); this amount will be “grossed up” so that the
payment net of taxes will be Sixteen Thousand One Hundred
Sixty-Five and 80/100 Dollars ($16,165.80);

	 		 	(B) after COBRA coverage has expired (in general, COBRA
coverage extends for eighteen (18) months from the Separation
Date), AMS will provide Employee the after-tax economic
equivalent of the benefits Employee would have received under
the AMS Retiree Medical Program, had Employee qualified for
that program on the Separation Date. The economic equivalent
of the benefits Employee would have received under the
Program shall be the lowest cost that would be incurred by
the Employee in obtaining health insurance coverage for
himself and his eligible dependents that will provide
benefits comparable to the benefits offered under the AMS
Retiree Medical Program, less any required Employee
contributions or premiums Employee would have paid under the
Program. Employee agrees to work closely and cooperatively
with AMS Benefits to “shop” for a comparable individual
policy that most closely matches the coverage currently
provided under the AMS Retiree Medical Program. AMS will pay
the cost of this coverage, less the amounts Employee would
have had to pay for premiums under the AMS Retiree Medical
Program (which is two times the full premium cost for active
employees). AMS’s obligation to provide the after-tax
economic equivalent of the benefits Employee would have
received shall continue until the date Employee becomes
eligible for Medicare coverage at age 65; however, if AMS
should terminate or materially reduce the coverage of its
Retiree Medical Program at any time prior to Employee
attaining age 65, AMS shall pay Employee an after-tax lump
sum amount equal to the average monthly difference between
the cost of comparable coverage (as

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	 		 	calculated as of the time immediately preceding the material
reduction in coverage) and the Employee premium, computed on
the basis of the preceding six (6) months, and then
multiplied by the number of months, including partial months,
remaining until Employee reaches age 65. This lump sum
amount shall be discounted to net present value;

	 	iii)	 	provide Employee with the option of recording an
outgoing message for his AMS voicemail system, subject to
AMS’s approval, that contains information as to where he can
be reached. AMS will maintain the outgoing message in the
voicemail system for three (3) months after the Separation
Date; and

	 	iv)	 	provide Employee with executive outplacement
services through Right Management Consultants’ Professional
Management Service program for a period of up to nine (9)
months after he first consults with Right Management
Consultants.

	 	(b)	 	Within fifteen (15) business days following the
receipt by AMS of this Agreement signed by Employee, AMS
shall pay to Employee the amount of One Million One Hundred
Forty Thousand Dollars ($1,140,000.00) referenced in Section
2(a)(i) and the full amount referenced in Section
2(a)(ii)(A). Said payments will be made by check delivered
to Employee’s home address. These payments shall be subject
to all legally required withholdings and deductions. The
2(a)(ii)(A) payment is referenced net of taxes and
withholdings.

	 	(c)	 	Employee understands that AMS will not provide him
with any of the payments or other benefits set forth above if
he revokes his signature as provided for in Section 16 below.

      3. Consideration Acknowledgement

      The parties agree that AMS’s commitments in Section 2 are in full, final
and complete settlement of all claims Employee may have against AMS, its
affiliates, past and present officers,

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directors, employees, agents, successors and assigns, and exceed those to
which Employee otherwise would be entitled absent his promises in this
Agreement.

      4. Stock Options and Restricted Stock

      Employee’s outstanding stock options, which have not yet vested, shall
fully vest on Separation Date. Employee shall retain the right to exercise any
of his outstanding non-qualified stock options through July 31, 2004 or the
expiration date of the option, whichever is earlier. However, any incentive
stock options (ISOs) must be exercised within thirty (30) days of Separation
Date. Employee also retains the right to 3,334 vested deferred stock units
granted as part of a restricted stock award, for which AMS will either issue
stock certificates to Employee or transfer into a brokerage account as per
Employee’s written instructions. The remaining 6,666 unvested restricted stock
units will be vested as of Separation Date and AMS will either grant stock
certificates to Employee or transfer into a brokerage account as per Employee’s
written instructions.

      5. Other Welfare Benefit Plans

      This Agreement does not affect Employee’s rights to receive his vested
account balances (if any) under the American Management Systems, Inc. 401(k)
Plan, the American Management Systems, Inc. WealthBuilder Plan, the American
Management Systems, Incorporated Executive Deferred Compensation Plan, and the
American Management Systems, Incorporated StockBuilder Plan.

      6. Accrued Vacation

      AMS will pay Employee any accrued but unused annual leave at current rate
of pay as of his Separation Date, in accordance with AMS policies. Such
payment will be made by check made payable to Employee no later than the next
regularly scheduled payday after the Separation Date and delivered to
Employee’s home address.

      7. Business Expenses

      AMS will reimburse Employee for legitimate business expenses incurred on
or before the Separation Date in accordance with AMS’s expense reimbursement
practices, so long as such expenses are submitted on or before October 24,
2003.

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      8. Non-Admission of Liability

      Nothing in this Agreement shall be construed as an admission of liability
by AMS, its affiliates, or its past and present officers, directors, employees
or agents, and AMS specifically disclaims liability to or wrongful treatment of
Employee on the part of itself, its affiliates, and its past and present
officers, directors, employees and agents.

      9. No Pending Actions

      Employee represents that he has not filed any complaints or charges
against AMS with the U.S. Department of Labor, the Equal Employment Opportunity
Commission, or with any other federal, state or local agency or court, and
covenants that he will not seek to recover on any claim released in this
Agreement. To the extent permitted by law, Employee promises that he will not
voluntarily assist any third party in pursuing any legal claim against AMS, and
he will immediately notify AMS if he is asked to provide such assistance.

      10. Legal Fees and Indemnification

	 	(a)	 	In the event that 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 twenty (20) days after receipt
by AMS of a written request for such advance.

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	 		 	Such request shall include an undertaking by the Employee to repay
the amount of such advance if it shall 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.

      11. Ongoing Cooperation

      In the event that a third party pursues a legal claim against AMS relating
in any way to any task or project on which Employee worked while employed by
AMS, he agrees to provide reasonable and lawful cooperation to AMS in its
defense against such claim. AMS shall pay any reasonable expenses incurred by
Employee in connection with such cooperation. Employee voluntarily agrees to
make himself available to AMS for interviews and to provide AMS with truthful
and accurate information including, but not limited to, documents, testimony,
or written or oral statements. Employee agrees to notify AMS, directly or
through counsel, within five (5) days of receipt of any subpoena or other legal
process regarding his employment with AMS so that AMS may take any action that
it deems appropriate to protect its proprietary and other interests.

      12. General Release and Covenant Not to Sue

      Employee covenants not to sue, and fully and forever releases and
discharges AMS, its subsidiaries, affiliates, divisions, successors and
assigns, together with its past and present shareholders, directors, officers,
employees, and agents (collectively, the “Releasees”) from any and all claims,
debts, liens, liabilities, demands, obligations, acts, agreements, causes of
action, suits, costs and expenses (including attorneys’ fees), damages (whether
pecuniary, actual, compensatory, punitive or exemplary) or liabilities of any
nature or kind whatsoever in tort, contract, or by federal, state or local
statute, regulation or order, law or equity or otherwise,

-6-

 

whether now known or unknown; provided, however, that nothing in this
Agreement shall either waive any rights or claims of Employee that arise after
the date Employee signs this Agreement or which, as a matter of law, cannot be
released or waived. Moreover, nothing in this Agreement shall impair or
preclude Employee’s right to claim reasonable expenses, legal fees or
indemnification pursuant to Sections 10 and 11, or to take action to enforce
the terms of this Agreement. This release includes but is not limited to
claims arising under federal, state or local laws prohibiting employment
discrimination, including but not limited to Title VII of the Civil Rights Act
of 1964, as amended, the Age Discrimination in Employment Act, as amended, or
the Americans with Disabilities Act; claims under the Worker Adjustment and
Retraining Notification Act; claims for attorneys’ fees or costs; workers’
compensation claims; any and all claims regarding any employment contract,
whether written, oral, implied or otherwise; claims relating to AMS’s right to
terminate its employees; claims for salary, payments in lieu of extended leave,
incentive payments or any other remuneration; claims relating to or arising
from any amendment or termination of the American Management Services,
Incorporated Executive Deferred Compensation Plan, the American Management
Systems, Incorporated Umbrella Trust Agreement By and Between American
Management Systems, Incorporated and Key Trust Company of Ohio, N.A. for
Executive Deferred Compensation Plan, or any other employee benefit plan or
arrangement or perquisite sponsored or offered by AMS; or any other claims
under federal, state, or local statute, regulation or ordinance, common law, or
any other law whatsoever, to the full extent permitted by law. Employee
expressly agrees and understands that this is a General Release.
Notwithstanding the foregoing release and ongoing covenants contained in this
Agreement, Employee is not relinquishing any rights he may possess as an AMS
stockholder, and no exercise of such rights shall be construed as a violation
of this Agreement.

      13. Employment Verification

      Employee shall direct all employment verification inquiries to Ms.
Patricia Bradshaw, Vice President Human Resources Operations, American
Management Systems, Incorporated, 4050 Legato Road, Fairfax, VA 22033 who shall
provide requestor only Employee’s dates of employment and last job title and
shall confirm his most recent salary.

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      14. Confidential Information and Return of Company Property

      Employee acknowledges that all confidential information regarding the
business of AMS compiled by, created by, obtained by, or furnished to, Employee
during his employment with AMS is the exclusive property of AMS. On or before
Separation Date, Employee will return to AMS all originals and copies of any
material involving such confidential information. Employee further agrees that
such confidential information is a valuable and unique asset of AMS and agrees
that he will not at any time after execution of this Agreement, directly or
indirectly, divulge or use such information, whether or not such information is
in written or other tangible form unless required by law. Employee shall also
return to AMS on or before Separation Date any items in his possession, custody
or control that are the property of AMS including, but not limited to, his
employee manual, passwords, office equipment, identification card and office
keys. Notwithstanding the foregoing, AMS and Employee agree that Employee may
retain for personal use the following AMS property: a laptop computer (Asset
No. 41279). Such laptop computer will be provided to Employee within fifteen
(15) days of his execution of this Agreement provided he has complied with the
terms of this Section 14. In order to ensure that AMS is not in breach of its
software licenses, Employee shall return the laptop computer to the AMS’s IT
Department in order that AMS may delete all Company or third party software and
data files from the computer. Employee shall not make any copies of the same
prior to this deletion exercise. AMS provides no warranty as to the condition
of the computer which has been in Employee’s possession and subject to
Employee’s control. Employee shall return any other computer property of AMS
in accordance with the provisions of this Section 14.

      15. Non-Disparagement

      Subject to Employee’s obligation to provide truthful and accurate
information in legal proceedings, Employee agrees that he will not voluntarily
make any disparaging statements (written or oral) about AMS or any of its
directors, officers or employees.

      16. Execution and Revocation Periods

      Employee acknowledges that he has been given at least twenty-one (21) days
from receipt of this Agreement to consider this Agreement and that he has seven
(7) days from the date he executes this Agreement in which to revoke it, and
that this Agreement will not be

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effective or enforceable nor the payments and other benefits set forth in
Section 2(a) provided until after the seven (7) day revocation period ends.
Employee’s signature below, on a date before the expiration of the twenty-one
(21) day review period, demonstrates that he has waived any of the remaining
time within the twenty-one (21) days. Revocation can be made by delivery of a
written notice of revocation to Mr. Garry Griffiths, Chief Human Resources
Officer, American Management Systems, Incorporated, 4050 Legato Road, Fairfax,
VA, 22033, by midnight on or before the seventh (7th) calendar day after
Employee signs the Agreement.

      17. Consultation with Counsel

      Employee acknowledges that he has been advised to consult with an attorney
of his choice with regard to this Agreement. AMS agrees to contribute up to
Three Thousand Dollars ($3,000.00) in legal expenses incurred by Employee for
legal consultation provided AMS receives a written invoice for such expenses
from Employee’s attorney representing that such services have, in fact, been
provided. Monies paid to Employee for legal expenses will be considered
taxable income to Employee. Employee hereby acknowledges that he understands
the significance of this Agreement, and represents that the terms of this
Agreement are fully understood and voluntarily accepted by him.

      18. Binding Effect

      This Agreement shall be binding on AMS and Employee and upon their
respective heirs, administrators, representatives, executors, successors and
assigns, and shall inure to the benefit of the Releasees and each of them and
to their respective heirs, administrators, representatives, executors,
successors and assigns.

      19. Non-Compete, Non-Solicitation Provisions

      Employee acknowledges that in the course of his employment with AMS, he
has been exposed to a significant amount of highly confidential information
about AMS and its clients, business practices and strategies and that even
inadvertent disclosure of this information would cause AMS great harm.
Accordingly Employee agrees that:

	 	a.	 	for twelve (12) months from the Separation Date (the
“Restricted Period”) he will not, on his own behalf or on behalf of
any other person or entity, directly or indirectly solicit for the
provision of, or provide competitive products or services

-9-

 

	 		 	to, any AMS customers for which he provided products and services
on behalf of AMS during the two (2) years prior to the Separation
Date, or any prospective customers that AMS was actively soliciting
to become clients during the two (2) years prior to his Separation
Date and in which Employee had any material involvement in the
solicitation or proposal process. “Competitive Products or
Services” shall be defined as products or services, which are in
whole or in part similar to AMS’s proprietary products or to
services then available from AMS on the Separation Date; and

	 	b.	 	during the Restricted Period Employee will not directly or
indirectly, on his own behalf or in aid of another person or
entity, hire or engage or solicit for hire or engagement any
individual who was an employee of AMS in the three (3) months prior
to the solicitation or hire; and

	 	c.	 	Employee agrees that the above restrictions are reasonable
– including the short length of time, and the limitation as to AMS
customers and prospective customers – and do not unreasonably
restrict his ability to earn a living after the Separation Date.
Employee further agrees that these restrictions protect AMS’s
legitimate business interests. Employee also agrees that in
addition to any other remedies, including an action for damages,
AMS also may seek injunctive relief against Employee for violation
of this Section.

      20.  Entire Agreement

      This Agreement sets forth the entire agreement between Employee and AMS,
and fully supersedes any and all prior agreements or understandings, oral or
written, between the parties regarding its subject matter; provided, however,
that nothing in this Agreement is intended to or shall be construed to modify,
impair or terminate any obligation (a) of Employee pursuant to the AMS 1977
letter regarding confidentiality obligations signed by Employee on July 20,
1977, that by its terms continues after Employee’s separation from AMS’s
employment (copy attached as Exhibit A), or (b) of Employer pursuant to any
agreements establishing the terms of benefit or long term compensation plans
with the exception of any stock option agreements. This Agreement renders null
and void the Employment Agreement signed by Employee on September

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6, 2002.

      21. Amendment

      This Agreement may be modified only by a written agreement signed by both
parties. Employee acknowledges that he has not relied upon any statement or
representation, written or oral, by any AMS Releasee that is not set forth or
referenced in this Agreement.

      22. Choice of Law

      This Agreement shall be governed in all respects by the laws of the
Commonwealth of Virginia, without regard to its conflict of laws principles.

      23. Counterparts

      This Agreement may be signed in counterparts and each such counterpart
shall be deemed to be an original but together all such counterparts shall be
deemed a single agreement.

      24. Interpretation and Severability

      The language in this Agreement shall be construed as a whole and will be
given its fair meaning. This Agreement will not be interpreted for or against
any party. In the event that any one or more of the provisions contained
herein shall for any reason be held to be unenforceable in any respect under
the law of any state or of the United States, such unenforceability shall not
affect any other provision of this Agreement, but, with respect only to that
jurisdiction holding the provision to be unenforceable, this Agreement shall be
construed as if such unenforceable provision had never been in the Agreement.

      25. Arbitration

      Any dispute or controversy arising under or in connection with this
Agreement shall be settled by arbitration, in accordance with the Employment
Arbitration Rules and 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 thirty (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 Commonwealth of Virginia. AMS and the Employee each

-11-

 

irrevocably consent to the jurisdiction of the federal and state courts
located in the Commonwealth of 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
Sections 11, 14, 15, and 19.

PLEASE READ CAREFULLY.

THIS AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE OF

ALL KNOWN AND UNKNOWN CLAIMS.

EMPLOYEE’S VOLUNTARY SIGNATURE BELOW ACKNOWLEDGES THAT

HE HAS READ THIS AGREEMENT, UNDERSTANDS ITS TERMS, AND HAS

ENTERED INTO IT KNOWINGLY.

	 	 	 	 	 	 	 
	Date:	 	
10/23/2003
	 	 	 	/s/ Larry R. Seidel
	 	 	

	 	 	 	

	 	 	 	 	 	 	LARRY R. SEIDEL
	 	 	 	 	 	 	 
	Date:	 	
10/28/2003

	 	 	 	AMERICAN MANAGEMENT SYSTEMS,

INCORPORATED
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Garry Griffiths
	 	 	 	 	 	 	

	 	 	 	 	 	 	GARRY GRIFFITHS
	 	 	 	 	 	 	Executive Vice President &
	 	 	 	 	 	 	   Chief Human Relations Officer

-12-

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