Exhibit 10.2
Change in Control
Protection
Agreement
This CHANGE IN CONTROL PROTECTION
AGREEMENT is dated June 3, 2009, by and between ManTech
International Corporation, a Delaware corporation (the “
Company ”), and Lawrence B. Prior III (the “
Executive ”).
PURPOSE
In order to induce the Executive to
remain in the employment of the Company, particularly in the event
of the threat or occurrence of a Change in Control (as hereafter
defined), the Company desires to enter into this Agreement to
provide the Executive with certain benefits in the event the
Executive’s employment is terminated as a result of, or in
connection with, a Change in Control.
NOW, THEREFORE, in consideration of
the respective agreements of the parties contained herein, it is
agreed as follows:
SECTION 1.
Definitions
For purposes of this Agreement, the
following terms have the meanings set forth below:
“Accrued
Compensation” means an amount which includes all amounts
earned or accrued by the Executive through and including the
Termination Date but not paid to the Executive on or prior to such
date, including (a) all base salary, (b) all vacation pay
and (c) all bonuses and incentive compensation, paid in the
case of (a) promptly after the Termination Date and in the
case of (c) in accordance with the terms of the applicable
plans or programs.
“Base Salary
Amount” means
the Executive’s annual base salary at the rate in effect on
the Termination Date.
“Board” means the Board of Directors of the
Company.
“Bonus
Amount” means
the target Annual Cash Bonus (as defined in the Employment
Agreement) of the Executive for the fiscal year in which the
Termination Date occurs, but not less than 120 percent of Base
Salary Amount. Bonus Amount includes only the annual cash bonus and
does not include any restricted stock awards, options or other
long-term incentive compensation that may have been awarded to the
Executive.
“Cause” shall have the same meaning as in the Employment
Agreement.
“Change in
Control” of the
Company means, and shall be deemed to have occurred upon, any of
the following events:
(a) The acquisition by any Person of
beneficial ownership (as defined in Rule 13d-3 of the General Rules
and Regulations under the Securities Exchange Act) of fifty percent
(50%) or more of the outstanding voting power of the
Company’s stock; provided, however, that the following
acquisitions shall not constitute a Change in Control for purposes
of this subparagraph (a): (i) any acquisition by the Company
or any of its Subsidiaries; (ii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by
the Company or any of its Subsidiaries; or (iii) acquisitions
complying with the terms of paragraph (c) below.
(b) Individuals who, as of the date
of this Agreement, constitute the Board (the “ Incumbent
Board ”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual who
becomes a director of the Company subsequent to the date of this
Agreement and whose election, or whose nomination for election by
the Company’s stockholders, to the Board was either
(i) approved by a vote of at least a majority of the directors
then comprising the Incumbent Board or (ii) recommended by a
nominating committee comprised entirely of directors who are then
Incumbent Board members, shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for
this purpose, any such individual whose initial assumption of
office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Securities Exchange Act),
other actual or threatened solicitation of proxies or consents or
an actual or threatened tender offer; or
(c) Consummation of a
reorganization, merger, or consolidation or sale or other
disposition of all or substantially all of the assets of the
Company (a “ Business Combination ”), in each
case unless following such Business Combination, (i) all or
substantially all of the Persons who were the Beneficial Owners,
respectively, of the outstanding shares and outstanding voting
securities immediately prior to such Business Combination own,
directly or indirectly, more than fifty percent (50%) of the
combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors of the
Company, as the case may be, of the entity resulting from the
Business Combination (including, without limitation, an entity
which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business
Combination, of the outstanding voting securities (provided,
however, that for purposes of this clause (i) any shares of
common stock or voting securities of such resulting entity received
by such Beneficial Owners in such Business Combination other than
as the result of such Beneficial Owners’ ownership of
outstanding shares or outstanding voting securities immediately
prior to such Business Combination shall not be considered to be
owned by such Beneficial Owners for the purposes of calculating
their percentage of ownership of the outstanding common stock and
voting power of the resulting entity); and (ii) no Person
(excluding any entity resulting from such Business Combination or
any employee benefit plan (or related trust) of the Company or such
entity resulting from the Business Combination) beneficially owns,
directly or indirectly, fifty percent (50%) or more of the
combined voting power of the then outstanding voting securities of
such entity resulting from the Business Combination unless such
Person owned fifty percent (50%) or more of the outstanding
shares or outstanding voting securities immediately prior to the
Business Combination.
(d) Approval by the Company’s
stockholders of a complete liquidation or dissolution of the
Company.
“Code” means the Internal Revenue Code of 1986, as
amended.
“Employment
Agreement” means the Employment Agreement dated the date
hereof between ManTech and the Executive.
“Disability”
shall have the same meaning as under
the Employment Agreement.
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Change in Control
Protection Agreement
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“Full
Release” shall
have the same meaning as “Release” under the
Employment Agreement.
“Good
Reason” shall
have the same meaning as under the Employment Agreement, provided
that the permitted reduction of base salary pursuant to the
parenthetical phrase in Section 5.1(b)(b) of the Employment
Agreement shall not apply.
“ Pro Rata Bonus
” shall mean the
annual bonus based on actual results for the year of termination
and the relative portion of the year during which the Executive
provided services, paid when said bonus would have been paid if the
Executive continued employment.
“Subsidiary”
means any corporation with respect
to which another specified corporation has the power under ordinary
circumstances to vote or direct the voting of sufficient securities
to elect a majority of the directors.
“Successor”
means a corporation or other entity
acquiring all or substantially all the assets and business of the
Company, whether by operation of law, by assignment or
otherwise.
“Termination
Date” means
(a) in the case of the Executive’s death, the
Executive’s date of death, and (b) in all other cases,
the final date of Executive’s employment with the Company.
Notwithstanding anything to the contrary herein, an
Executive’s employment shall not be considered to have
terminated unless the executive has experienced a “separation
from service,” as defined in Code Section 409A and the
regulations there under.
SECTION 2. Term of
Agreement
The term of this Agreement (the
“ Term ”) will commence on July 3, 2009,
and will continue in effect for a period of two (2) years;
provided however that after such two (2) year period, and on
each one (1) year anniversary of such date thereafter, the
Term shall automatically be extended for an additional one
(1) year, unless not later than ninety (90) days prior to
the end of one of the periods, either the Company or the Executive
shall have given notice to the other party not to extend the Term.
Notwithstanding the foregoing, and subject to Section 4.2, the
Term shall be deemed to have immediately expired without any
further action, and this Agreement will immediately terminate and
be of no further effect if, prior to a Change in Control, the
Executive’s employment is terminated for any reason.
Additionally, in the event that a Change in Control occurs during
the Term, then the Term shall automatically extend for a period of
up to two additional years, if necessary, to accommodate the
two-year post-Change in Control period specified in
Section 4.1 below.
SECTION 3. Acceleration of
Options upon Change in Control
If a Change in Control occurs during
the Term of this Agreement, then, all unvested stock awards then
held by Executive shall accelerate and become immediately
vested.
SECTION 4. Termination of
Employment after Change in Control
4.1 If the Executive’s
employment with the Company is terminated within two (2) years
following a Change in Control that occurs during the Term (and
following the procedures in the Employment Agreement), the
Executive will be entitled to the following compensation and
benefits:
(a) If the Executive’s
employment with the Company is terminated (i) by th