Document:

Exhibit10.4

 

AMERICAN SCIENCE AND ENGINEERING,
INC.

2009 Long-Term Incentive Plan
Cash Component

 

LTIP Cash Component
Agreement

 

American Science and
Engineering, Inc. (the “Company”), a Massachusetts corporation,
hereby grants, pursuant to the 2009 Long-Term Incentive Plan (the “Plan”) to
the person named below LTIP Cash Component (“LTIP Cash Component”)
representing the right to receive cash subject to the terms and conditions set
forth below and those attached hereto.

 

DEFINITIONS

 

	
  Grant Date

  	
  [Date]

  
	
   

  	
   

  
	
  Participant

  	
  [Participant]

  
	
   

  	
   

  
	
  LTIP Cash Component

  	
  [$$$]

  

 

LTIP Cash Component Schedule and
Vesting:  The LTIP Cash
Component (“Cash”; “Cash Component”) shall vest upon the achievement of
performance targets of the Company, as more particularly described herein (“Performance-Vested
LTIP Cash Component”).  Specifically, the
Performance-Vested LTIP Cash Component shall become exercisable in accordance
with the following terms: as soon as
practicable following the delivery to the Company of its audited financial
statements for the fiscal year, the Compensation Committee shall determine
whether the Performance Goals (as defined in the Plan) have been met.  Restrictions on the Performance-Vested LTIP
Cash Component will lapse, pro-rata, as each or any of the Performance Goals
are met.  If the Company has not met any
portion of the Performance Goals prior to the end of the fiscal year ending on
or before [Fiscal Year Date], one half (1/2) of the pro-rata portion of the
Performance-Vested LTIP Cash Component attributable to such unattained goals
shall immediately vest, and one half (1/2) shall be automatically and
immediately forfeited.

 

The Performance
Goals shall be established by the Committee based on one or more of the
following objective criteria prior to the beginning of such Performance Period
or within such period after the beginning of the Performance Period (as defined
in the Plan) as shall meet the requirements to be considered “pre-established
objective performance goals” for purposes of the regulations issued under Section 162(m) of
the Code: (i) increases in the price of the Common Stock, (ii) market
share, (iii) sales, (iv) revenue, (v) return on equity, assets,
or capital, (vi) economic profit (economic value added), (vii) total
shareholder return, (viii) costs, (ix) expenses, (x) margins, (xi)
earnings (including EBITDA) or earnings per share, (xii) cash flow (including
adjusted operating cash flow), (xiii) customer satisfaction, (xiv) operating
profit, (xv) net income, (xvi) research and development, (xvii) product
releases, (xviii) manufacturing, or (xix) any combination of the foregoing,
including without limitation, goals based on any of such measures relative to
appropriate peer groups or market indices, as more particularly outlined on Exhibit A,
attached to this Agreement and hereby incorporated by reference..

 

By acceptance of this Award, the Participant agrees to
the terms and conditions set forth above and those attached hereto.

 

 

	
  PARTICIPANT

  	
  AMERICAN SCIENCE
  AND ENGINEERING, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
								

 

 

AMERICAN
SCIENCE AND ENGINEERING, INC. 2009 LTIP CASH COMPONENT

 

LTIP Cash
Component Terms and Conditions

 

1.         LTIP
Cash Component.  The LTIP Cash
Component (“Cash”; “Cash Component”) represents the right to receive a portion
of LTIP value in Cash, subject to the fulfillment of the Vesting Schedule and
the other terms and conditions of this Award.

 

2.         Vesting
Schedule.  Upon each vesting of the
LTIP Cash Component in accordance with the Vesting Schedule set forth on the
face of this Grant Agreement (each, a “Vesting Date”), and subject to
the satisfaction of Section 6 below regarding taxes, the Company shall
issue to the Participant the cash value of the LTIP Cash Component that vests
on such Vesting Date as soon as practicable after such Vesting Date, but in no
event later than March 15 of the following calendar year.

 

3.         Effect
of Termination of Employment.  If the
Participant’s status as an employee of the Company or an Affiliate is
terminated for any reason (voluntary or involuntary), all LTIP Cash Components
that remain unvested shall upon termination of employment immediately and
irrevocably terminate, and such unvested LTIP Cash Components shall immediately
and irrevocably be forfeited.  Notwithstanding
the foregoing:

 

(a)                   If the Participant
is on military leave, sick leave, or other leave of absence approved by the
Company or the Affiliate, his or her employment with the Company or the
Affiliate will be treated as continuing intact during the period of such leave.  The Participant’s employment will be deemed
to have terminated on the first day after the expiration of such leave.

 

(b)                  If the Participant is terminated by reason of retirement prior
to the end of the fiscal year ending on or before [Fiscal Year Date] and the
Participant’s age is equal to or greater than 65 and the Participant’s age plus
length of service is equal to or greater than 70, one half (1/2) of the
pro-rata portion of the Cash Component reflecting the percentage of such Cash
that was accrued by the Company on its books at the time of the Participant’s
retirement date shall immediately vest, and one half (1/2) shall be
automatically and immediately forfeited.

 

(c)                   If the
Participant’s employment is terminated by reason of his or her death, the Cash
Component shall become vested on a prorated basis reflecting the percentage of
such Cash that was accrued by the Company on its books at the time of the
Participant’s death, without regard to the Vesting Schedule.  In such event, the restrictions will be
lifted from such prorated portion of the Cash, and such prorated Cash will be
freely transferable to the person(s) to whom the Participant’s Cash rights
pass by will or by the applicable laws of descent and distribution.

 

4.               Change of
Control.  To preserve the Participant’s
rights under this Award in the event of a Change in Control of the Company (as
defined below) occurring while the Participant is employed by the Company or an
Affiliate, the Committee may in its discretion take one or more of the
following actions: (i) provide for the acceleration of any Vesting Date, (ii) provide
for payment to the Participant of cash or other property with a Fair Market
Value equal to the amount that would have been received with respect to the
Award had the Award fully vested upon the Change in Control of the Company, (iii) adjust
the terms of the Award in a manner determined by the Committee to reflect the
Change in Control of the Company, (iv) cause the Award to be assumed, or
new rights substituted therefore, by another entity, or (v) make such
other provision as the Committee may consider equitable to the Participant and
in the best interests of the Company. 
For purposes of this Section, a “Change in Control of the Company” shall
mean:  (i) the consummation of (a) any
consolidation or merger of the Company in which the Company is not the
continuing or surviving entity or pursuant to which the Company’s Common Stock
is converted into cash, securities, or other property, other than a merger of
the Company in which the ownership by the Company’s stockholders of the
securities in the surviving entity is at least two-thirds of the combined
voting power; or (b) any sale, lease, exchange, or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company; (ii) the stockholders of the Company have
approved any plan or proposal for the liquidation or dissolution of the
Company; (iii) any person (as that term is used in Sections 13(d) and
14(d)(2) of the Exchange Act) has become the beneficial owner (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more
of the Company’s outstanding Common Stock; or (iv) that during any period
of two consecutive years, individuals who, at the beginning of such period, constitute
the entire Board of Directors of the Company shall cease, for any reason, to
constitute a majority thereof, unless the election, or the nomination for
election by the Company’s stockholders, of each new director was approved by a
vote of at least three-quarters of the directors then still in office who were
directors at the beginning of the period.

 

5.         Award Not Transferable.  This Award is not transferable by the
Participant other than by will or the laws of descent and distribution.  The naming of a Designated Beneficiary does
not constitute a transfer. The Committee may, in its sole discretion, allow the
Participant to transfer this Award under a domestic relations order in
settlement of marital or domestic property rights.

 

 

6.         Payment of Taxes. The
Participant shall pay to the Company, or make provision satisfactory to the
Committee for payment of, any taxes required by law to be withheld with respect
to the Award no later than the date of the event creating the tax liability.  The Company and its Affiliates may, to the
extent permitted by law, deduct any such tax obligations from any payment of
any kind due to the Participant.

 

7.         No Right To Employment.  No person shall have any claim or right to be
granted an Award.  Neither the Plan nor
this Award shall be deemed to give any Participant the right to continued
employment or to limit the right of the Company or an Affiliate to discharge
any Participant at any time.

 

8.         Amendment of Award.  The Committee may amend, modify, or terminate
this Award, including substituting therefore another instrument of the same or
a different type, provided that the Participant’s consent to such action shall
be required unless  the Committee
determines that the action, taking into account any related action, would not
materially and adversely affect the Participant.

 

9.         Data Privacy and Electronic Delivery.  By executing this Grant Agreement, the
Participant: (i) authorizes the Company, its Affiliates, and any agent of
the Company or its Affiliates administering the Plan or providing Plan
recordkeeping services, to disclose to the Company, its Affiliates or
third-party service providers such information and data as may be deemed
necessary or appropriate to facilitate the grant of Awards; (ii) waives
any data privacy rights he or she may have with respect to such information;
and (iii) authorizes the Company, its Affiliates, and third-party service
providers to store and transmit such information in electronic form.  The Participant agrees that the Company, its
Affiliates, and their agents may deliver electronically all documents relating
to the Plan or this Award.

 

10.       Cancellation and Rescission of Award.  In consideration of this Award the
Participant agrees that if Participant breaches Participant’s obligations under
the terms of the American Science & Engineering Employee
Representation, Rights in Data, and Non-Compete Agreement, then the Company may
cancel, suspend, withhold, or otherwise limit or restrict (in whole or in part)
the vesting of this Award.  If this Award
vests prior to the occurrence or discovery by the Company of any such breach,
then the Committee may rescind the vesting of this Award at any time within the
two (2) year period after such vesting. 
In the event of any rescission, the Participant shall pay to the Company
the amount of income recognized upon vesting of the Award in such manner and on
such terms and conditions as may be required by the Committee, and the Company
shall be entitled to set-off the amount of any such income against any amount
that may be owed to the Participant.Exhibit10.5

 

American Science & Engineering, Inc.

Change in Control & Severance Benefit
Agreement

 

This is a
SEVERANCE BENEFIT & CHANGE IN CONTROL Agreement (the “Agreement”)
entered into between American Science & Engineering, Inc. (the “Company”,
which term shall include any successor by merger, consolidation, sale of
substantially all of the Company’s assets or otherwise) and
                                      (“Executive”)
effective as of the 29th day of July, 2008 (the “Effective Date”).

 

1.       Purpose of this Agreement.  The Company hereby agrees to provide
severance and change in control benefits to Executive on the terms and
conditions set forth in this Agreement. 
These benefits are in lieu of any benefits that would otherwise be
payable to Executive under the severance pay plan, if any, maintained by the
Company for the benefit of senior executives or other Company employees, or by
statute.  This severance agreement does
not represent an employment contract for any definite term or period, which means
that either Executive or the Company can terminate Executive’s employment at
any time, for any reason or no reason, and with or without notice.

 

2.       Term of Agreement.  The Agreement shall become effective on the
Effective Date and shall terminate on July 29, 2011; provided that this
Agreement shall automatically be extended for successive one year terms unless
the Board provides Executive with written notice to the contrary at least
thirty (30) days before the date the Agreement would otherwise be so extended.  Such notice, in the sole discretion of the
Board, may provide that the term will not be extended in the future, and/or
that there shall be no further automatic extensions of the Term.

 

3.       Definitions. The following terms
as used in this Agreement shall have the following meanings:

 

(a)           “Affected Award” means each
Stock-Based Award held by Executive immediately prior to a Change in Control
Qualifying Termination.

 

(b)           “Affiliate” means any business entity
in which the Company holds, directly or indirectly, an equity, profits, or
voting interest of 30% or more, and includes any subsidiary.

 

(c)           “Base Salary” means (i) the
highest annual rate of base salary payable to Executive by the Company during
the one-year period ending on Executive’s Date of Termination or (ii) the
highest annual rate of base salary payable to Executive by the Company during
the one-year period ending on the Change of Control, whichever is higher.

 

(d)           “Board” means the Board of Directors
of the Company.

 

(e)           “Cause” means, for purposes of this
Agreement, as determined by the Board in its reasonable judgment: (i) Executive’s
failure to perform (other than by reason of disability), or material negligence
in the performance of, his duties and responsibilities to the Company or any of
its Affiliates; (ii) material breach by Executive of any provision of this
Agreement or any other agreement with the Company or any of its Affiliates; (iii) other
conduct by Executive that could be harmful to the business, interests or
reputation of the Company or any of its Affiliates; (iv) fraud,
embezzlement or other material dishonesty by Executive with respect to the
Company or any of its Affiliates, or (v) Executive’s conviction of, or
pleading no contest to, any felony or other crime involving moral turpitude, or
(vi) a breach of any confidentiality/non-competition/non-solicitation
agreement. With respect to a breach of (i), (ii), (iii) or (vi), Executive
shall be given thirty (30) days, after written notice of such breach, to cure a
breach to the reasonable satisfaction of the Company.

 

(f)            “Change in Control” means the
occurrence hereafter of any of the following:

 

(i)            any Person, other than the Company
or an Affiliate, becomes a beneficial owner (within the meaning of Rule 13d-3,
as amended, as promulgated under the Exchange Act), directly or indirectly, in
one or a series of transactions, of securities representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding
securities;

 

(ii)           the stockholders of the Company
approve a merger or consolidation of the Company with any other Person, other
than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities
of the surviving entity) more than fifty percent (50%) of the combined voting
power 

 

 

of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation;

 

(iii)          there occurs a closing of a sale or
other disposition by the Company of all or substantially all of the assets of
the Company;

 

(iv)          Incumbent Directors cease for any
reason to constitute at least a majority of the Board; provided,
that any individual who becomes a member of the Board subsequent to the date
hereof, whose election or nomination for election was approved by a vote of at
least two-thirds of the Incumbent Directors shall be treated as an Incumbent
Director unless he or she assumed office as a result of an actual or threatened
election contest with respect to the election or removal of directors; or

 

(v) a complete
liquidation or dissolution of the Company

 

provided, that if any payment or
benefit payable hereunder upon or following a Change in Control (as defined
herein) would be required to comply with the limitations of Section 409A(a)(2)(A)(v) of
the Code and the guidance thereunder in order to avoid an additional tax under Section 409A
of the Code, such payment or benefit shall be made only if such Change in
Control constitutes a change in ownership or control of the Company, or a
change in ownership of the Company’s assets, described in IRS Notice 2005-1 or
any successor guidance.

 

(g)           “Change in Control Qualifying Termination”
means a termination of employment if, during the period of twenty-four (24)
months following a Change in Control either the employment of Executive is
terminated by the Employer  for any reason
other than for Cause, or Executive terminates his or her employment with the
Employer for “Good Reason” (as defined in Section 3(l) below).

 

(h)           “Client” means any Person who is, or
within the preceding eighteen (18) months was, a client, customer or portfolio
company of the Company or any of its Affiliates.

 

(i)            “Code” means the Internal Revenue
Code.

 

(j)            “Company” means American Science &
Engineering, Inc.

 

(k)           “Date of Termination” means the date
on which Executive’s employment terminates.

 

(l)            “Good Reason” means (i) any
action by the Company which results in a material adverse change in Executive’s
position, title, reporting relationship, authority, duties or responsibilities
as in effect immediately prior to the Change in Control; provided,
however, that a sale or transfer of less than all or substantially
all of the business of the Company or any of its subsidiaries or other
reduction of less than all or substantially all of its business or that of its
subsidiaries, or the fact that the Company has become a subsidiary of another
company or that the securities of the Company are no longer publicly traded,
shall not be taken into account when determining whether a material adverse
change in Executive’s authority, duties or responsibilities has occurred; (ii) any
reduction in Executive’s rate of annual base salary for any fiscal year to less
than the greater of 100% of the rate of annual base salary payable to him or
her in the completed fiscal year immediately preceding the Change in Control or
100% of the rate at which annual base salary was payable to Executive
immediately prior to such reduction, (iii) any adverse change in Executive’s
annual bonus opportunity, taking into account both the maximum earnable bonus
and the targets on which the bonus is based, (iv) the failure to provide
Executive participation in an incentive plan tied to the long-term growth in
the value of the Company, which plan, whether equity- or cash-based, provided
Executive with a comparable financial opportunity to that provided to Executive
under the Company’s equity-based plan immediately prior to the Change in
Control, but excluding an isolated, insubstantial and inadvertent reduction of
annual base salary or annual bonus opportunity which is not taken in bad faith
and which is remedied by the Employer within five (5) business days after
receipt of notice thereof given by Executive; (v) any failure of the
Company to continue or cause to be continued in effect any retirement, life,
medical, dental, disability, accidental death or travel insurance plan in which
Executive was participating immediately prior to the Change in Control unless
the Company provides Executive with a plan or plans that provide at least
substantially equivalent benefits (as to extent of coverage and as to employee
cost), or the taking of any action by the Employer that would adversely effect
Executive’s participation in or materially reduce Executive’s benefits under
any such plan or deprive Executive of any material fringe benefit or perquisite
enjoyed by Executive immediately prior to the Change in Control, other than an
isolated, insubstantial and inadvertent failure not in bad faith and which is
remedied by the Employer within five (5) business days after receipt of
notice thereof given by Executive; or (vi) the Company requires Executive
to be based at any office or location that is more than twenty-five (25) miles
distant from Executive’s base office or work location immediately prior to the
Change in Control, except if such new location is closer to Executive’s
residence at the time such requirement is imposed

 

(m)          “Incumbent Directors” mean individuals
who, as of the date of this Agreement, constituted the Board.

 

 

(n)           “Non-Competition Period” means the
period while Executive is employed by the Company and for one year after
Executive’s employment terminates, except in cases of Change in Control
Qualifying Terminations”.

 

(o)           “Outstanding Company Common Stock”
means the outstanding shares of common stock of the Company.

 

(p)           “Outstanding Company Voting
Securities” means the outstanding voting securities of the Company entitled to
vote generally in the election of directors.

 

(q)           “Person” means any individual, entity
or other person, including a group within the meaning of Sections 13(d) or
14(d)(2) of the Securities Exchange Act of 1934.

 

(r)            “Qualifying Termination” means
either (a) a termination of Executive’s employment by the Employer  for any reason other than for Cause, (b) the Executive
terminates his or her employment with the Employer for “Good Reason” (as
defined in Section 3(l) above), or (c) the Executive dies.

 

(s)           “Short Term Incentive” means payments
made pursuant to  the Company’s short-term
incentive plan.

 

(t)            “Stock-Based Award” means any
option, stock appreciation right, restricted stock or restricted stock unit
granted by the Company to Executive pursuant to the Company’s 2005 Equity &
Incentive Plan or any successor plan or agreement, or any other equity
compensation plan or agreement previously adopted by the Board of Directors of
the Company in which Executive participated.

 

4.   Change in Control Severance Benefits

 

(a)           Executive agrees that once any Person
other than the Company, a direct or indirect subsidiary of the Company, or an
employee benefit plan of the Company or any such subsidiary begins a tender or
exchange offer or a solicitation of proxies from the Company’s security holders
or takes other actions to effect a “Change in Control,” as hereinafter defined,
Executive will not voluntarily terminate his or her employment with the Company
(or its Affiliates) until such Person has abandoned or terminated such efforts
to effect a Change in Control or until a Change in Control has occurred.  In the event that Executive voluntarily
terminates his or her employment prior to the Change in Control, he/she will
not be entitled to any payments or benefits under this Agreement or any
severance pay plan, if any, of the Company.

 

(b)           In the case of a Change in Control
Qualifying Termination, then Executive shall receive the following payments and
benefits, subject to the limitation set forth in Section 6:

 

(i)  Accrued Salary.  The
Company shall pay to Executive in a single cash lump sum, within ten (10) days
following the date of termination, the sum of (1) all salary and
commissions earned by Executive as of the date of termination but not yet paid
and (2) Executive’s accrued bonuses and accrued vacation earned through
the date of termination.  In addition,
the Company shall pay to Executive in cash within five (5) business days
of the date of termination, reimbursement for any unpaid, valid business
expenses that are approvable in accordance with Company policy.

 

(ii)  Severance Pay.  The
Company shall pay to Executive in a single lump sum, within sixty (60) calendar
days of the date of termination, an amount equal to two times the sum of
Executive’s annualized Base Salary plus the target Short Term Incentive amount.

 

(iii)  COBRA Premiums.  The
Company shall pay 100% of the premium toward COBRA coverage for Executive,
Executive’s spouse and his qualifying dependents, for a period of eighteen (18)
months following the Date of Termination. 
Notwithstanding the foregoing provisions of this subsection, if
Executive becomes employed by another employer and is eligible for medical,
dental or life insurance coverage that is substantially equivalent (as to extent
of coverage and as to employee cost) to the coverage of the same type that he
or she were entitled to receive under this subsection, the Employer’s
obligation to Executive and his or her dependents under this subsection shall
cease with respect to that type of coverage. 
In addition, in the event that the Company is unable to provide COBRA to
Executive as provided herein, Company will pay to Executive an equivalent
amount in reimbursement for medical insurance (of equivalent benefits and cost)
premiums paid by Executive.  

 

(iv)  Stock-Based Awards.

 

(1)           To the extent not already vested and
exercisable, each Affected Award shall become fully vested and exercisable upon
the occurrence of the Change in Control Qualifying Termination.  In the event Executive holds an Affected
Award requiring exercise, the Company shall give Executive adequate notice and
opportunity to exercise the Affected Award. 
Notwithstanding the foregoing, to the extent permitted by the equity plan
under which the Stock-Based Award was granted, nothing in 

 

 

this Agreement
shall preclude the Company from accelerating the vesting and exercisability of
an Affected Award to an earlier period, and terminating unexercised awards as
provided under the equity plan.

 

(2)           Notwithstanding the provisions of
this Section 4 to the contrary, if a Stock-Based Award held by Executive
is not assumed or replaced, or to be assumed or replaced, upon a Change in
Control, each Stock-Based Award held by such Executive, whether or not he or
she has experienced a Qualifying Termination, shall become fully vested and
exercisable, effective immediately prior to the Change in Control.

 

(v) Additional Discretionary
Payments.  The Company may
make an additional cash or stock settlement at the sole discretion of the
Board.

 

5.       Severance Benefits.   In the case of a Qualifying Termination that
is not a Change in Control Qualifying Termination, then Executive shall receive
the following payments and benefits, subject to the limitation set forth in Section 6:

 

(a)           Accrued Salary.  The Company shall pay to Executive
in a single cash lump sum, within ten (10) days following the date of
termination, the sum of (i) all salary and commissions earned by Executive
as of the date of termination but not yet paid and (ii) Executive’s
accrued bonuses and accrued vacation earned through the date of termination.   In addition, the
Company shall pay to Executive in cash within five (5) business days of
the date of termination, reimbursement for any unpaid, valid business expenses
that are approvable in accordance with Company policy.

 

(b)           Severance Pay.  The Company shall pay to Executive
in a single lump sum, within sixty (60) calendar days of the date of
termination, an amount equal to one times the Executive’s annualized Base
Salary.

 

(c)           COBRA Premiums.  The Company shall pay 100% of the
premium toward COBRA coverage for Executive, Executive’s spouse and his
qualifying dependents, for a period of one (1) year following the date of
employment termination.  Notwithstanding
the foregoing provisions of this subsection, if Executive becomes employed by
another employer and is eligible for medical, dental or life insurance coverage
that is substantially equivalent (as to extent of coverage and as to employee
cost) to the coverage of the same type that he or she were entitled to receive
under this subsection, the Employer’s obligation to Executive and his or her
dependents under this subsection shall cease with respect to that type of
coverage.

 

6.       Limitation on Payments.  If any payments pursuant to the Agreement
would be subject to tax under Section 4999 of the Internal Revenue Code
(the “Payments”), then Executive shall receive either (i) the full
Payments or (ii) such lesser amount of the Payment which would result in
no portion of such Payments being subject to the Section 4999 tax,
whichever yields the greatest net amount to Executive on an after-tax basis
(applying the then highest aggregate marginal tax rates).  If a reduction of the Payments is required
pursuant to subpart (ii), then Executive will be permitted to request which
component items of the Payment will be reduced provided, however, that
Executive must provide to the Company in writing his/her request within the
reasonable time period established by the Company and the Company must in its
discretion consent to such request (or else the Company shall make its own
determinations with respect to which Payment items are to be reduced).  The Company may elect to contest at its
expense any initial IRS determination with respect to an Executive.  Executive shall cooperate reasonably with the
Company in any effort by the Company to contest an IRS determination under this
paragraph, including by the making of such filings and appeals as the Company
may reasonably require, but nothing herein shall be construed as requiring
Executive to bear any cost or expense of such a contest or in connection
therewith to compromise any tax item (including without limitation any
deduction or credit) other than the Section 4999 tax and related interest
and penalties, if any, that are the subject of the contested IRS
determination.  In the event of any
underpayment or overpayment under this Agreement, as determined by the
nationally recognized accounting firm, the amount of such underpayment or
overpayment shall be promptly paid to Executive or refunded to the Company, as
the case may be, with interest at 120% of the applicable Federal rate provided
for in Section 7872(f)(2) of the Internal Revenue Code.

 

All tax
determinations under this Section 6 shall be made at the Company’s expense
by a nationally recognized accounting firm selected by the Company in its
reasonable discretion.  Any good faith
determinations of this accounting firm made hereunder shall be final, binding
and conclusive upon the Company and Executive.

 

7.       Noncompetition.  During the Non-Competition Period, Executive
shall not, directly or indirectly, whether as owner, partner, investor (nothing
contained in this Agreement, however, shall prevent Executive from passive
ownership of two percent (2%) or less of the voting stock of any publicly
traded company (other than the Company)), consultant, agent, employee,
co-venturer or otherwise, compete with the Company or any of its Affiliates
within the United States or in any country in which the Company or any of its
Affiliates is then doing business. Specifically, but without limiting the
foregoing, Executive agrees not to engage in any manner in any activity that is
directly or indirectly competitive or potentially 

 

 

competitive with
the business of the Company or any of its Affiliates as conducted or under
consideration at any time during Executive’s employment. Executive further
agrees that while Executive  is employed by
the Company and during the Non-Competition Period, Executive will not hire or
attempt to hire any employee of the Company or any of its Affiliates, assist in
such hiring by any Person, encourage any such employee to terminate his or her
relationship with the Company or any of its Affiliates, or solicit or encourage
any customer or vendor of the Company or any of its Affiliates to terminate or
diminish its relationship with them, or, in the case of a customer, to conduct
with any Person any business or activity which such customer conducts or could
conduct with the Company or any of its Affiliates.

 

8.       Payment Obligations Absolute.  Upon a Change in Control Qualifying
Termination or a Qualifying Termination, the Company’s obligations to pay the
benefits described in Section 4 (or the benefits described in Section 5
for a Qualifying Termination) shall be absolute and unconditional and shall not
be affected by any circumstances, including, without limitation, any set-off,
counterclaim, recoupment, defense or other right which the Company or any
Affiliate may have against any Executive; provided, however, that the Company
may delay the payment of any amounts due hereunder for six months following
termination of Executive’s employment with the Company if necessary to comply
with the “specified employee” rules pursuant to Section 409A of the
Code.  In no event shall Executive be
obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to Executive under any of the provisions of
the Agreement and, except as otherwise provided in Section 7, in no event
shall the amount of any payment hereunder be reduced by any compensation earned
by Executive as a result of employment by another employer.

 

9.       Amendment.  This Agreement may be amended or modified
only by a written instrument signed by Executive and by an expressly authorized
representative of the Company.

 

10.     Withholding.  All payments and benefits hereunder shall be
subject to reduction for applicable tax withholdings.

 

11.     Indemnification.  The Company agrees to pay all costs and
expenses (including without limitation fees and expenses of counsel) incurred
by any Executive in connection with efforts to enforce his or her rights under
this Agreement and will indemnify and hold harmless any Executive from and
against any damages, liabilities and expenses (including without limitation
fees and expenses of counsel) incurred by Executive in connection with any
litigation or threatened litigation, including any regulatory proceedings,
arising out of the making, performance or enforcement of this Agreement.

 

12.     Source of Payment.  Nothing herein shall be construed as
establishing a trust or as requiring the Company to set aside funds to meet its
obligations hereunder.  Notwithstanding
the foregoing, if the Board in its discretion so determines, the Company may
establish a so-called “rabbi trust” or similar arrangement to assist it in
meeting any such obligations that it may have.

 

13.     Required Release and Non-Disparagement.  The Company’s obligation to provide severance
pay and other benefits under this Agreement, however, is subject (a) to
Executive’s signing in a timely manner a release of claims in favor of the
Company in the form to be provided by the Company (the “Release”) and of
Executive not revoking the Release in a timely manner thereafter; and (b) to
Executive’s meeting in full his or her obligations under any other agreements
in effect between you and the Company. You agree to not make any oral or
written communication to any person or entity which has the effect of damaging
the reputation of, or otherwise working in any way to the detriment of,
AS&E, its officers, directors or management. You also acknowledge your
continuing responsibility to honor the non-compete and non-solicitation
obligations previously undertaken by you for a period of one year from the
Termination Date.

 

14.     Notices.  Any and all notices, requests, demands and
other communications provided for by this Agreement shall be in writing and
shall be effective when delivered in person or deposited in the United States
mail, postage prepaid, registered or certified, and addressed to Executive at
his last known address on the books of the Company or, in the case of the
Company, at its principal place of business, attention of the President, or to
such other address as either party may specify by notice to the other actually
received.

 

15.     Entire Agreement.  This Agreement constitutes the entire
agreement between the parties and supersedes all prior communications,
agreements and understandings, written or oral, with respect to the terms and
conditions of Executive’s severance from employment with the Company and its
Affiliates, including any prior Change in Control & Severance Benefit
Agreement with the Company.

 

16.     Severability.  Each provision of this Agreement shall be
considered severable such that if any one provision or clause conflicts with
existing or future applicable law, or may not be given full effect because of
such law, this shall not affect any other provision of the Agreement which,
consistent with such law, shall remain in full force and effect.  All surviving clauses shall be construed so
as to effectuate the purpose and intent of the parties.

 

17.     Headings.  The headings and captions in this Agreement
are for convenience only and in no way define or describe the scope or content
of any provision of this Agreement.

 

 

18.     Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be an original and all of which together
shall constitute one and the same instrument.

 

19.     Governing Law.  This Agreement shall be governed by the laws
of the Commonwealth of Massachusetts without regard to its conflicts of laws
principles.

 

 

	
  EXECUTIVE

  	
   

  	
  AMERICAN
  SCIENCE & ENGINEERING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]