Document:

Exhibit 10.3

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This
Executive Employment Agreement (this “Agreement”) is made effective February 6,
2006, by and between Duratek, Inc., a Delaware corporation having its principal
place of business at 10100 Old Columbia Road, Columbia, Maryland 21046
(hereinafter, “Company”), and Joseph G. Henry (hereinafter, “Employee”).

 

RECITALS

 

WHEREFORE,
Company desires to continue to employ Employee as Chief Operating Officer and
Executive Vice President, subject to the terms and provisions of this
Agreement, and Employee desires to continue such employment with Company,
subject to the terms and provisions of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:

 

1.                                      Term.  Unless earlier terminated as provided herein,
Company hereby agrees to employ Employee and Employee hereby accepts such
employment for a two year period commencing February 6, 2006 and ending on
February 6, 2008, upon the terms and conditions hereinafter set forth.  Commencing on February 6, 2008 and each
February 6th thereafter, the Term shall automatically be extended for one
additional year, unless this Agreement has been previously terminated pursuant
to Section 8 of this Agreement or, not later than the August 1st immediately
preceding such February 6th anniversary, Company or Employee shall have given
written notice to the other that it does not wish to extend this
Agreement.  For the purposes of this
Agreement, the term as defined in this Section, including any extension
thereof, shall be the “Term.”

 

2.                                      Duties.  During the Term, Employee shall serve as
Chief Operating Officer and Executive Vice President (hereinafter, “COO/EVP”)
of Company and shall report to, and have those duties, responsibilities, and
authority assigned him from time to time by, the Chief Executive Officer of
Company (hereinafter, the “CEO”) or his designee.  Employee shall have the powers and authority
consistent with such responsibilities, duties, and authority.  Employee shall devote substantially all his
working time, attention, knowledge, and skills faithfully, diligently, and to
the best of his ability, in furtherance of the business and activities of
Company.  During the Term, Employee shall
refrain from engaging in any activity which is or may be contrary to the
welfare, interests, or benefits of Company and from engaging in any activity
which is or may be competitive with the activities of Company.  The principal place of performance by
Employee of his duties hereunder shall be Company’s principal executive offices
in Columbia, Maryland or such other location as agreed to by Employee and
Company, although Employee may be required to travel outside of the area where
Company’s principal executive offices are located in connection with the
business of Company, to an extent substantially consistent with Employee’s
present business travel obligations. 
Nothing in this Section shall preclude

 

 

Employee from engaging in charitable,
professional, and community activities, in each case as long as such activities
do not interfere, conflict, or give the appearance of conflicting in any way
with Employee’s performance under this Agreement.

 

3.                                      Salary.  In consideration for the services to be
rendered by Employee hereunder and for all rights and covenants granted herein,
Company shall pay to Employee a gross salary in the amount of $290,659.20 per
year (hereinafter, the “Salary”) commencing January 30, 2006.  This Salary shall be paid in equal monthly or
bi-weekly installments, in accordance with the customary payroll practices of
Company and subject to such deductions as are required by law and applicable
regulations.  This salary may be
increased from time to time at the discretion of the Compensation Committee of
the Board of Directors of the Company.

 

4.                                      Cash Bonus.  Employee will continue to be eligible to
receive cash bonuses pursuant to the Company’s Executive Compensation Plan (the
“Executive Compensation Plan”); provided, however, that Company may not
reduce Employee’s target bonus amount (represented as a percentage of base
salary) from that in effect as of the date hereof or as may be increased from
time to time.  In the event that Company
amends or terminates the Executive Compensation Plan, Company shall provide
Employee with an annual cash bonus program that will provide him with an
opportunity to realize an annual cash bonus which is not less than the target bonus
amount (represented as a percentage of base salary) that exists under the
Executive Compensation Plan at the time it is amended or terminated, which
opportunity shall be reasonably comparable to Employee’s opportunity under the
Executive Compensation Plan as of the date hereof.

 

5.                                      Equity Incentive Plan.  Employee will continue to be eligible to
receive equity incentives pursuant to the Executive Compensation Plan.  All awards pursuant to the Executive
Compensation Plan shall be subject to the terms and provisions of the 1999
Stock Option and Incentive Plan, or any similar plan, and any award agreement
with respect to such award.  The vesting,
exercisability and termination provisions regarding such awards shall be
subject to the terms and provisions of the 1999 Stock Option and Incentive
Plan, or other similar plan pursuant to which the award was made, and the
corresponding award agreement.

 

6.                                      Employee Benefits.   Employee shall be entitled to participate in
or receive benefits under any employee benefit plan, arrangement or perquisite
made available by Company to its executives and key management employees,
subject to and on a basis consistent with the terms, conditions and overall
administration of such plans, arrangements and perquisites.  Nothing paid to Employee under any plan,
arrangement or perquisite presently in effect or made available in the future
shall be deemed to be in lieu of the salary and bonus payable to Employee
pursuant to Sections 3, 4, and 5 hereof. 
Any payments or benefits payable to Employee hereunder in respect of any
year during which Employee is employed by Company for less than the entire such
year shall, unless otherwise provided in the applicable plan or arrangement be
prorated in accordance with the number of days in such year during which he is
so employed.

 

7.                                      Vacations.  Employee
shall be entitled to four weeks’ vacation (personal time benefit) in each
calendar year, or such greater amount of vacation as may be determined in
accordance with Company’s vacation policy as in effect on the date hereof.

 

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Employee shall also be entitled to all paid
holidays and personal days given by Company to its executives.

 

8.                                      Termination.  Notwithstanding the provisions of Section 1
hereof, Employee’s employment with Company may be earlier terminated by either
party at any time, subject to the following restrictions (except that
termination due to death or disability of Employee shall be governed by Section
9 below):

 

(a) at any time during the Term, Company may
terminate this Agreement for Cause upon written notice to Employee.  For purposes hereof, “Cause” shall be defined
as: (i) Employee’s willful material misconduct or neglect in the performance of
his duties as determined by the CEO or his designee; (ii) Employee’s conviction
by a court of competent jurisdiction of any felony, offense punishable by
imprisonment in a state or federal penitentiary, or any offense, civil or
criminal, involving fraud, moral turpitude or immoral conduct; (iii) Employee’s
use of illegal drugs or abusive use of prescription drugs as determined by a
licensed physician or physicians designated by Company to examine Employee; or
(iv) Employee’s willful material breach of this Agreement as determined by the
CEO or his designee, which breach is not cured within thirty (30) days after
Employee’s receipt of written notice from Company specifying such breach and
demanding a cure thereof;

 

(b) at any time during the Term and upon six (6)
months prior written notice to Company, Employee may terminate this Agreement
for “Good Reason.”  For the purposes of
this Agreement, “Good Reason” shall mean (i) Company’s failure to perform or
observe any of the material terms or provisions of this Agreement and continued
failure of Company to cure such default within thirty (30) days after written
demand for performance has been given to Company by Employee, which demand
shall describe specifically the nature of such alleged failure to perform or
observe such material terms or provisions, (ii) a material reduction in the
scope of Employee’s duties, authority, responsibilities or title as in effect
immediately prior to such reduction; (iii) Company’s assignment to Employee of
duties which are inconsistent with Employee’s position as COO/EVP; (iv) a
reduction by Company in Employee’s base salary or in any other benefits made
available to other senior executives of Company; or (v) Employee’s relocation
to a facility or a location more than fifty (50) miles from the then present
location without Employee’s prior written consent, and in each case the failure
of Company to cure the same within thirty (30) days after receipt of written
notice thereof from Employee;

 

(c) at any time during the Term and upon six (6)
months prior written notice to Employee, Company may terminate this Agreement
for any reason other than Cause, and at any time during the Term and upon six
(6) months prior written notice to Company, Employee may terminate this
Agreement for any reason other than Good Reason;

 

(d) upon termination of this Agreement by
Company for Cause or by Employee for any reason other than Good Reason,
Employee shall be entitled only to his Salary up to the date of the termination
of this Agreement, and Company shall have no further obligation or duties to
Employee, and Employee shall have no further obligation or duties to Company
except as provided in Sections 10, 11, and 12;

 

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(e) upon termination of this Agreement by
Company for any reason other than Cause or by Employee for Good Reason, Company
shall continue to pay Employee’s Salary and provide Employee with benefits
comparable to those Employee received pursuant to Sections 6 and 7, immediately
prior to the effective date of termination through the twelfth full month
following the effective date of termination (hereinafter, the “Severance Period”),
and Employee shall have no further obligations or duties to Company, except as
provided in Sections 10, 11, and 12. 
Company shall have no further obligation or duties to Employee other
than as set forth in this Section 8(e). 
Employee’s entitlement to amounts owing pursuant to this Agreement shall
not be dependent upon Employee’s efforts to “mitigate” loss or to find other
employment, nor shall the amounts owing pursuant to this Agreement be subject
to offset by compensation earned from a subsequent employer.  Notwithstanding anything in this Section 8(e)
to the contrary, this Section 8(e) shall not apply to a termination of the
Employee’s employment that occurs within twelve (12) months after a Change of
Control.

 

9.                                      Disability and Death.  (a) If during the Term Employee shall become
unable to perform his duties or carry out his responsibilities by reason of
illness or injury, Company shall continue to pay or provide to Employee Salary
continuation under the terms of the disability insurance coverage for officers
of Company.  If, however, the disability
continues for an uninterrupted period exceeding six calendar months, Company,
at its election, may terminate this Agreement with no further obligations by
Company.  Employee shall be entitled to
any benefit for which Employee qualifies under any long-term disability plan of
Company.  The inability of Employee to
perform his duties and carry out his responsibility because of illness or
injury shall be determined by a qualified physician or physicians designated by
Company to examine Employee. To the extent physically and mentally capable,
Employee shall furnish information and assistance to Company and shall be
available to Company to undertake reasonable assignments consistent with the
dignity, importance, and scope of Employee’s prior position and current
physical and mental health.

 

(b)
If during the Term Employee shall die, this Agreement shall terminate
automatically.  In this event, Company
shall pay to Employee’s estate or to his beneficiaries, Employee’s Salary up to
the date of death.  Company shall have no
further obligation or duties to Employee’s estate or to his beneficiaries.

 

10.                               Restrictive Covenants.

 

(a)                                  Confidentiality. 
During the Term and
continuing subsequent to any termination or expiration of this Agreement,
Employee shall maintain Information, as defined in Section 10(a)(i) below, as
secret and confidential unless Employee is required to disclose Information
pursuant to the terms of a valid and effective order issued by a court of
competent jurisdiction or a governmental authority.  Employee shall use Information solely for the
purpose of carrying out those duties assigned him as an employee of Company and
not otherwise.  The disclosure of
Information to Employee shall not be construed as granting to Employee any
license under any copyright, trade secret or any right of ownership or right to
use the information whatsoever.

 

(i)                                     For
the purposes of this Section 10, “Information” shall mean information related
to Company’s business.  Such information
shall include, but

 

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shall not be limited to:
(w) any financial, business, planning, operations, services, potential
services, products, potential products, technical information, intellectual
property, trade secrets and/or know-how, formulas, production, purchasing,
marketing, sales, personnel, customer, supplier, or other information of Company;
(x) any papers, data, records, processes, methods, techniques, systems,
models, samples, devices, equipment, compilations, invoices, customer lists, or
documents of Company; (y) any confidential information or trade secrets of
any third party provided to Company in confidence or subject to other use or
disclosure restrictions or limitations; and (z) any other information,
written, oral or electronic, whether existing now or at some time in the
future, whether pertaining to current or future developments, and whether
accessed prior to Employee’s tenure with Company or to be accessed during his
future employment or association with Company, which pertains to Company’s
affairs or interests or with whom or how Company does business.  Company acknowledges and agrees that
Confidential Information shall not include information which is or becomes
publicly available other than as a result of a disclosure by Employee.

 

(ii)                                  Employee
shall promptly notify Company if he has reason to believe that the unauthorized
use, possession, or disclosure of any Information has occurred or may occur.

 

(iii)                               All
physical items containing Information, including, without limitation, the
business plan, know-how, collection methods and procedures, advertising
techniques, marketing plans and methods, sales techniques, documentation,
contracts, reports, letters, notes, any computer media, customer lists and all
other information and materials of Company’s business and operations, shall
remain the exclusive and confidential property of Company and shall be
returned, along with any copies or notes of Employee made thereof or therefrom,
to Company when Employee ceases his employment with Company.

 

(b)                                 Non-Competition. 
Employee hereby
covenants and agrees that at no time during Employee’s employment with Company
and for a period of one year immediately following termination of Employee’s
employment with Company, whether voluntary or involuntary, shall Employee (i)
develop, own, manage, operate, or otherwise engage in, participate in,
represent in any way or be connected with, as officer, director, partner,
owner, employee, agent, independent contractor, consultant, proprietor,
stockholder (except for the ownership of a less than 5% stock interest in a
publicly traded company), or otherwise, any business or activity competing with
Company or its affiliates within the United States; (ii) act in any way,
directly or indirectly, with the purpose or effect of soliciting, diverting or
taking away any business, customer, client or any supplier of Company; or (iii)
otherwise compete with Company in the sale or licensing, directly or
indirectly, as principal, agent or otherwise, of any products competitive with
the products, or services competitive with the services, developed or marketed
by Company within the United States. 
Employee acknowledges that he will provide unique services to Company
and that this covenant has unique, substantial, and immeasurable value to
Company.

 

(c)                                  Non-solicitation or hiring of employees.  Employee
hereby covenants and agrees that at no time during Employee’s employment with
Company and for a period of one year immediately following termination of
Employee’s employment with Company, whether voluntary or involuntary, will
Employee act in any way with the

 

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purpose or effect of (i)
hiring any of the employees of Company, its divisions or subsidiaries or (ii)
soliciting, recruiting or encouraging, directly or indirectly, any of Company’s
employees to leave the employ of Company, its divisions or its subsidiaries.

 

11.                               Discoveries, Inventions, Trade Secrets, Trade
Names, Copyrights, and Patents.  As part of the rights granted herein to
Company, Employee agrees that all right, title and interest of any kind and
nature whatsoever in and to any inventions, product, know-how, trade secrets,
patents, trademarks, methods, procedures, copyrights, seminars, discoveries,
improvements, ideas, creations, and other technical properties, whether or not
patentable or subject to rights of copyright and/or trademark, which are
conceived or made by Employee during the Term, and which are related to any of
the business and/or activities of Company and any other
lines of business which Company subsequently pursues in any form to include but
not be limited to a strategic plan, research, feasibility studies, development,
manufacturing, and customer contact (including but not limited to intellectual
property, know-how, trade secrets, and patents in process or granted) or the
performance by Employee of his services hereunder, shall be and become the sole
and exclusive property of Company for all purposes.  Employee shall promptly disclose to Company
any such conception or other work product of the type as is generally described
in the immediately preceding sentence. 
Employee agrees to execute any and all applications, assignments and
other written instruments that Company may deem necessary and appropriate to
confirm the title and interest of Company therein and thereto.  The obligations of Employee under this
Section 11 shall be binding upon his assignees, employers, other corporate or
research affiliates, executors, administrators and heirs.  The grant, transfer and assignment to Company
by Employee of rights to intellectual properties shall remain effective for
such periods of time as applicable law may permit with respect to the ownership
of any such intellectual property or materials.

 

12.                               Enforcement.
Employee understands and agrees that he will provide unique services to Company
and that the restrictions contained in Sections 10 and 11 of this Agreement are
reasonable, fair, and equitable in scope, terms, and duration, are necessary to
protect the legitimate business interests, trade secrets, and good will of
Company, and are a material inducement to Company to enter into this Agreement,
and that any breach or threatened breach of the restrictions stated in Sections
10 and 11 would cause Company substantial and irreparable harm for which there
is no adequate remedy at law.  Therefore,
Employee agrees and consents to the issuance of injunctive relief in favor of
Company by any court of competent jurisdiction, where, in Company’s sole
discretion, Company has acted upon reasonable information concerning a breach
or potential breach of this Agreement, to enjoin the breach of any of the
covenants of Employee contained in Sections 10 and 11 of this Agreement.  Nothing contained in this Section shall
invalidate or waive any other rights or remedies which Company may have at law
or in equity.

 

13.                               Indemnification; Directors’ and Officers’ Insurance.

 

(a)                                  While
Employee is employed by Company pursuant to this Agreement, Company covenants
that it will not repeal or modify any right to indemnification or limitation of
liability under Company’s Amended and Restated Certificate of Incorporation,
By-Laws, or otherwise so as to adversely affect any right or protection of a
director or officer of Company existing at the time of such repeal or
modification.

 

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(b)                                 Company
agrees to provide to Employee and keep current at all times during Employee’s
employment, at its expense, director’s and officer’s liability insurance, with
Employee named as the beneficiary, with such coverage limits as are determined
in the reasonable discretion of the Board of Directors of the Company.

 

14.                               Change of Control. 
Company agrees that in
the event a Change of Control (as hereinafter defined) occurs and Employee
leaves the employment of Company and the combined entity for whatever reason
(other than (i) termination for Cause, (ii) death, (iii) permanent disability
as described in Section 9 hereof or (iv) by Employee for any reason other than
Good Reason):

 

(a)                                  If
the termination occurs within twelve months after a Change of Control, Company
shall continue to pay Employee’s Salary through the twelfth (12th)
full month following the effective date of termination.  The six (6) month notice requirement prior to
the effective date of termination pursuant to Sections 8(b) and 8(c) shall
continue to be applicable following a Change of Control.  To the extent the Company gives less than six
(6) months notice (other than in the case of a termination for Cause), the
Company shall pay the Employee his or her Salary for the amount of time by
which the actual notice given is less than six (6) months.

 

(b)                                 To
the extent eligible, Employee shall continue to be covered by all noncash
benefit plans of Company, except for the retirement plans or retirement
programs in which Employee participates or any successor plans or programs in
effect on the date of a Change of Control, for 12 months thereafter; provided,
however, that if during such time period Employee should enter into the
employment of a competitor of Company, participation in such noncash benefit
plans would cease.  In the event Employee
is ineligible under the terms of such plans to continue to be so covered,
Company shall use its best efforts to provide substantially equivalent coverage
through other sources.  If Company is
unable to provide substantially equivalent coverage through other sources, then
Company shall pay in cash to Employee the amount Company would have had to
expend to provide such coverage assuming standard risk.

 

(c)                                  Employee’s
payments received hereunder shall be considered severance pay in consideration
of past service, and pay in consideration of continued service from the date
hereof and entitlement thereto shall not be governed by any duty to mitigate
damages by seeking further employment nor offset by any compensation which may
be received from future employment.

 

(d)                                 The
specific arrangements referred to above are not intended to exclude Employee’s
participation in other benefits available to executive personnel generally or
to preclude other compensation or benefits as may be authorized by the Board of
Directors of the Company from time to time, or as a result of the Change of
Control.

 

(e)                                  This
Section shall be binding upon and shall inure to the benefit of the respective
successors, assigns, legal representatives and heirs to the parties hereto.

 

(f)                                    For
the purpose of this Agreement, a “Change of Control” shall mean: a merger,
consolidation, or reorganization of Company with one or more other

 

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entities in which Company is not the surviving
entity, a sale of substantially all of the assets of Company to another entity,
or any transaction (including, without limitation, a merger or reorganization
in which Company is the surviving entity) that results in any person or entity
(or persons or entities acting as a group or otherwise in concert) becoming the
beneficial owner of fifty percent (50%) or more of the combined voting power of
all classes of securities of Company or obtaining (through stock ownership,
proxies, or otherwise) the right to elect a majority of the Board of Directors
of the Company.

 

15.                               Gross Up Payments 
If the payment provided
under this Agreement (the “Contract Payment”) is subject to the tax (the “Excise
Tax”) imposed by Section 4999 of the Internal Revenue Code of 1986, as amended
(“Code”), Company shall pay Employee on or before the fifth day following the
date of termination, an additional amount (the “Gross-Up Payment”) such that
the net amount retained by Employee, after deduction of any Excise Tax on the
Contract Payment and such other Total Payments (as defined below) and any
federal and state and local income tax and Excise Tax upon the payment provided
for by this Section, shall be equal to the Contract Payment and such other
Total Payments.  For purposes of determining
whether any of the payments will be subject to the Excise Tax and the amount of
such Excise Tax, (i) any other payments or benefits received or to be received
by Employee in connection with a Change of Control of Company or Employee’s
termination of employment, whether payable pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with Company, its
successors, any person whose actions result in a Change of Control of Company
or any corporation affiliated (or which, as a result of the completion of a
transaction causing a Change of Control, will become affiliated) with Company
within the meaning of Section 1504 of the Code (together with the Contract
Payment, the “Total Payments”) shall be treated as “parachute payments” within
the meaning of Section 280G(b)(2) of the Code, and all “excess parachute
payments” within the meaning of Section 280G(b)(1) shall be treated as subject
to the Excise Tax, unless in the opinion of tax counsel selected by Company and
acceptable to Employee, whose acceptance shall not be unreasonably withheld,
the Total Payments (in whole or in part) do not constitute parachute payments,
or such excess parachute payments (in whole or in part) represent reasonable
compensation for services actually rendered within the meaning of Section
280G(b)(4) of the Code either in their entirety or in excess of the base amount
within the meaning of Section 280G(b)(3) of the Code, or are otherwise not
subject to the Excise Tax, (ii) the amount of the Total Payments that shall be
treated as subject to the Excise Tax shall be equal to the lesser of (A) the
total amount of the Total Payments or (B) the amount of excess parachute
payments within the meaning of Section 280G(b)(1) (after applying clause (i),
above), and (iii) the value of any non-cash benefits or any deferred payment or
benefit shall be determined by Company’s independent auditors in accordance
with the principles of Sections 280G(b)(3) and (4) of the Code.  For purposes of determining the amount of the
Gross-Up Payment, Employee shall be deemed to pay federal income taxes at the
highest marginal rate of federal income taxation in the calendar year in which
the Gross-Up Payment is to be made and state and local income taxes at the
highest marginal rate of taxation in the state and locality of Employee’s
residence on the date of termination, net of the maximum reduction in federal
income taxes which could be obtained from deduction of such state and local
taxes.  In the event that the Excise Tax
is subsequently determined to be less than the amount taken into account
hereunder at the time of termination of Employee’s employment, Employee shall
repay to Company at the time that the amount of such reduction in Excise Tax is
finally determined the portion of the Gross-Up Payment attributable to such
reduction

 

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(plus the portion of the Gross-Up Payment
attributable to the Excise Tax and federal and state and local income tax
imposed on the Gross-Up Payment being repaid by Employee if such repayment
results in a reduction in Excise Tax and/or a federal state and local income
tax deduction) plus interest on the amount of such repayment at the rate
provided in Section 1274(d) of the Code. 
In the event that the Excise Tax is determined to exceed the amount
taken into account hereunder at the time of the termination of Employee’s
employment (including by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-Up Payment), Company shall make
an additional Gross-Up Payment in respect of such excess (plus any interest
payable with respect to such excess) at the time that the amount of such excess
is finally determined.

 

16.                               Survivability.  The provisions of Sections 10, 11 and 12 of this
Agreement shall survive its termination.

 

17.                               Section Titles.  The titles of the Sections of this Agreement
are for convenience only and shall not affect the interpretation of any Section
hereof.

 

18.                               Waiver.  A waiver by either party hereto of any of the
terms or conditions of this Agreement in any instance shall not be deemed or
construed to be a waiver of such term or condition for the future, or of any
subsequent breach thereof.  All remedies,
rights, undertakings, obligations and agreements contained in this Agreement
shall be cumulative and none of them shall be in limitation of any other
remedy, right, undertaking, obligation or agreement of either party hereto.

 

19.                               Severability.  The
rights and restrictions in this Agreement may be exercised and are applicable
only to the extent that they do not violate applicable laws, and are intended
to be limited to the extent necessary so that they will not render this
Agreement illegal, invalid, or unenforceable. 
If any provision of this Agreement shall be deemed to be invalid or
unenforceable, then that provision shall be modified to make it enforceable to
the maximum extent possible, and the remaining provisions of this Agreement
shall not be affected thereby and shall remain in full force and effect.

 

20.                               Assignment.  This Agreement requires the personal services
of Employee only, and Employee shall not be entitled to assign any portion of
his duties or obligations hereunder.

 

21.                               Notices.  For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered or (unless
otherwise specified) mailed by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:

 

	
  If
  to Employee:

  	
  Joseph
  G. Henry

  
	
   

  	
  1686 Kingsbridge Court

  
	
   

  	
  Annapolis, MD 21401

  

 

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  If
  to Company:

  	
  Duratek,
  Inc.

  10100 Old Columbia Road

  Columbia, Maryland 21046

  

 

22.                               Governing Law.  This Agreement has been made and executed in
the State of Maryland and shall be governed by the laws of Maryland applicable
to contracts fully to be performed therein.

 

23.                               Waiver of Jury Trial.  THE
PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND
THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT.  EACH OF THE PARTIES HERETO REPRESENTS AND
WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL.  THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING,
AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS
TO (OR ASSIGNMENTS OF) THIS AGREEMENT. 
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL (WITHOUT A JURY) BY THE COURT.

 

24.                               Entire Agreement.  This Agreement constitutes the entire
agreement of the parties and supersedes any and all previous agreements between
the Parties regarding employment.  This
Agreement may not be modified orally, but only by an agreement in writing
supplied by the party against whom enforcement of any waiver, change,
modification, extension, or discharge is sought.

 

25.                               Counterparts. 
This Agreement may be
executed in one or more counterparts, each of which shall deemed to be an
original but all of which together will constitute one and the same instrument.

 

26.                               Section 409A. 
Notwithstanding anything
in this Agreement to the contrary, if any amount payable to the Employee under
this Agreement is deferred compensation subject to Internal Revenue Code
Section 409A and the regulations promulgated thereunder (“Section 409A”) and if
the Employee is a “specified employee” within the meaning of Section 409A,
payment of such amount shall be made as follows:  Any amount that is scheduled to be paid for
the period which begins on the Employee’s separation from service, as defined
in Section 409A, and ends on the date six months from the Employee’s separation
from service, shall not be paid as scheduled, but shall be accumulated and paid
in a lump sum on the date six months after the Employee’s separation from
service.

 

27.                               Miscellaneous.  The parties agree to execute all other such documents
as may be required to effectuate or more readily carry out the provisions
hereof.

 

10

 

IN
WITNESS WHEREOF, Employee and Company have executed this Agreement.

 

	
  COMPANY:

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
  DURATEK, INC.

  	
  Joseph G. Henry

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Robert E. Prince

  	
   

  	
  /s/ Joseph G. Henry

  	
   

  
	
   

  	
   

  
	
  Name: Robert E. Prince

  	
   

  
	
   

  	
   

  
	
  Title: President/CEO

  	
   

  
	
   

  	
   

  
	
  Date: February 6, 2006

  	
  Date: February 6, 2006

  
					

 

11Exhibit 10.4

 

 

	
   

  	
  February 6, 2006

  

 

 

	
  To:

  	
  Joseph G. Henry

  
	
  From:

  	
  Robert E. Prince

  
	
  RE:

  	
  Retention Bonus

  

 

Duratek,
Inc. (the “Company”) greatly values the services that you provide to the
Company.  Accordingly, the Company wishes
to provide you with a retention bonus payable to you in the event of the sale
of the Company to EnergySolutions,
subject to the terms and conditions of this letter.  

 

You shall be
entitled to receive from the Company a retention bonus in the amount of
($100,000) (the “Retention Bonus”) from the Company for services rendered to
the Company and its affiliates during the three month period following the
closing date of the Sale (the “Retention Period”), if the closing date of the
Sale occurs prior to December 31, 2006, and you remain employed by the Company,
its successor, or any affiliate of the Company or its successor during the
Retention Period; provided, however, that if the closing date of the Sale
occurs during the term of this letter agreement but the agreement providing for
the Sale is terminated, you will be entitled to the Retention Bonus if you
remain employed by the Company, its successor, or any affiliate of the Company
or its successor during the three month period following the termination of the
agreement.  The Retention Bonus shall be
paid as soon as is reasonably practical following the last day of the Retention
Period or three months after termination of the agreement providing for the
Sale, and is subject to such deductions as are required by law and applicable
regulations. Notwithstanding the foregoing, you shall be eligible for the
Retention Bonus even if you undergo a termination of employment during the
Retention Period or the three month period after termination of the agreement
providing for the Sale, if such termination of employment is by the Company
other than for Cause or by you for Good Reason.

 

The terms “Good
Reason” and “Cause” shall have the meanings ascribed to such terms in the
employment agreement between you and the Company dated February 6, 2006; provided,
however, that for this purpose Section 10(b) of the definition of Good Reason
shall not be applicable.

 

Nothing in this letter constitutes, and shall not be
construed to provide, any assurance of your continuing employment with the
Company, its affiliates or successors.

 

 

 

Please return a signed copy of this letter to Diane
Leviski, Senior Vice President Human Resources for the Company, no later than
February 6, 2006.

 

Accepted and Agreed:

 

	
  /s/ Joseph G. Henry

  	
   

  
	
   

  
	
  Date: February 6, 2006

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