Exhibit 10.3
AMENDED AND RESTATED
EXECUTIVE EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED
EXECUTIVE EMPLOYMENT AGREEMENT (this “ Agreement
”) is made and entered into on the dates signified on the
signature page hereto and is to be effective on May 1, 2008
(the “ Effective Date ”) by and between
Affiliated Computer Services, Inc. (the “ Company
”) and Lynn Blodgett (“ Executive ” and,
together with the Company, the “ Parties ”).
This Agreement amends and restates that certain Executive
Employment Agreement dated January 4, 2008 and effective
December 14, 2007 (the “ Original Agreement
”).
PRELIMINARY STATEMENTS
A. The Company desires to
continue to employ Executive as Chief Executive Officer and
Executive desires to continue to be employed by the Company in said
capacity;
B. The Company and Executive are
parties to the Original Agreement; and
C. The Company and Executive
wish to amend and restate the Original Agreement in its entirety
and to set forth in writing the terms and conditions of their
understandings and agreements.
NOW , THEREFORE , in
consideration of the mutual covenants and obligations contained
herein, the sufficiency of which is hereby acknowledged by the
Parties, the Company hereby agrees to continue to employ Executive
and Executive hereby accepts such continued employment upon the
terms and conditions set forth in this Agreement:
STATEMENT OF AGREEMENT
1. Position .
(a) The
Company agrees to employ Executive in the position of Chief
Executive Officer (“ CEO ”). Executive shall
serve and perform the duties which may from time to time be
assigned to him by the Company’s Board of Directors (“
Board ”) or its Chairman.
(b) Executive
agrees to serve as CEO and agrees that he will devote his best
efforts and all of his business time and attention to all facets of
the business of the Company and will faithfully and diligently
carry out the duties of CEO. Executive agrees to comply with all
Company policies in effect from time to time, and to comply with
all laws, rules and regulations, including, but not limited to,
those applicable to the Company.
(c) In
addition, Executive will serve on the Board at the continuing
discretion of the stockholders, during the Term.
(d) Executive
agrees to travel as necessary to perform his duties under this
Agreement.
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2. Term . Subject to
earlier termination in accordance with the provisions of Section 5
of this Agreement, Executive shall be employed by the Company for
an initial period commencing on the Effective Date and ending on
December 14, 2008 (the “ Term ”);
provided , that the Term shall be automatically extended for
successive one-year periods thereafter unless, no later than thirty
(30) days prior to the expiration of the initial period, or
any such successive one-year renewal period, either party shall
provide to the other party written notice of its or his desire not
to extend the Term.
3. Compensation, Benefits
and Reimbursement of Expenses .
(a)
Base Salary . During the Term, the Company shall pay
Executive an annual base salary to be determined by the Board or
the Compensation Committee thereof (“ Base Salary
”).
(b)
Bonus Opportunities . In addition to the Base Salary,
Executive shall also be eligible to participate in and receive any
discretionary compensation as may be determined by the Board or the
Compensation Committee thereof (“ Discretionary Bonus
”). The Discretionary Bonus is not an accrued right under
this Agreement.
(c)
Payment . Payment of all compensation to Executive hereunder
shall be made in accordance with the terms of this Agreement and
applicable Company policies in effect from time to time, including
normal payroll practices, and shall be subject to all applicable
withholdings and taxes.
(d)
Benefits Generally . The Company shall make available to
Executive, throughout the Term, benefits as are generally provided
by the Company to its executive officers, including but not limited
to any group life, health, dental, vision, disability or accident
insurance, pension plan, profit sharing plan, retirement savings
plan, 401(k) plan, or other such benefit plan or policy which may
presently be in effect or which may hereafter be adopted by the
Company for its executive officers and key management personnel;
provided, however, that nothing herein contained shall be deemed to
require the Company to adopt or maintain any particular plan or
policy.
(e)
Vacation . Executive shall be entitled to paid vacation
during each calendar year ending during the Term, consistent with
the policies then applicable to executive officers.
(f)
Holidays . Executive shall further be entitled to paid
holidays, personal days, and sick days consistent with the policies
then applicable to executive officers.
(g)
Stock . Executive will also be eligible to participate in
the Company’s 1997 Equity Incentive Plan and 2007 Equity
Incentive Plan (together, the “ Equity Plans ”),
as may be amended from time to time or any subsequent omnibus stock
incentive or award plans that the Company has adopted prior to or
adopts during the Term.
(h)
Reimbursement of Expenses . The Company shall reimburse
Executive for all business expenses, which are reasonable and
necessary and are incurred by Executive while performing his duties
under this Agreement, upon presentation of expense statements,
receipts
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and/or
vouchers, or such other information and documentation as the
Company may reasonably require.
4. Change of Control .
Upon a Change of Control, Executive shall be entitled to a change
of control payment (the “ Change of Control Payment
”) equal to three (3) times the sum of (i)
Executive’s then annual Base Salary plus (ii) an amount
equal to Executive’s Discretionary Bonus for the immediately
preceding fiscal year; provided, however, that in the event that
Executive’s employment with the Company is terminated
simultaneous with or within three (3) days of a Change of
Control, either pursuant to Section 5(a) or Section 5(c) below,
Executive shall be entitled to receive the greater of: (a) the
amounts and benefits provided pursuant to this Section 4; or
(b) the amounts and benefits provided pursuant to Section 5(a) or
Section 5(c) below, as applicable. Company shall pay the Change of
Control Payment to Executive in a lump sum amount, in cash, within
two (2) business days after the Change of Control. In
addition, in the event of a Change of Control, any unvested stock
options or other equity-based awards granted to Executive under the
Equity Plans or any omnibus stock incentive or award plans
previously or subsequently adopted by the Company that are
outstanding as of the date of such Change of Control shall become
fully vested and non-forfeitable. However, notwithstanding any
other provision of this Section 4, any such stock options
granted to Executive that remain unexercised as of the date of
their expiration will expire in accordance with the terms of the
applicable plan and the relevant stock option agreement.
5. Termination .
(a)
Termination by the Company without Cause; Expiration of Term
. The Company may at any time terminate the Term and
Executive’s employment hereunder without Cause (and other
than due to death or Disability). If the Company terminates the
Term and Executive’s employment hereunder pursuant to this
Section 5(a) or upon the expiration of the Term, as the same may
have been extended or renewed pursuant to Section 2, the
Company shall pay Executive all accrued but unpaid Base Salary and
any earned but unpaid Discretionary Bonus for a prior year, if any
(“ Accrued Compensation ”) as soon as reasonably
practicable following such termination. In addition and subject to
Section 7, the Company shall also pay Executive a severance
payment (the “ Severance Payment ”) equal to
three (3) times the sum of (i) Executive’s then
annual Base Salary plus (ii) an amount equal to
Executive’s Discretionary Bonus for the immediately preceding
fiscal year. In addition, in the event of a termination pursuant to
this Section 5(a) or Section 5(c) below, any unvested stock options
or other equity-based awards granted to Executive under the Equity
Plans or any omnibus stock incentive or award plans previously or
subsequently adopted by the Company that are outstanding as of the
date of such termination shall become fully vested and
non-forfeitable. However, notwithstanding any other provision of
this Section 5(a), any such stock options granted to Executive
that remain unexercised as of the date of their expiration will
expire in accordance with the terms of the applicable plan and the
relevant stock option agreement. Subject to Section 7, the
Severance Payment will be paid out in a single lump sum within
50 days of the date of termination.
(b)
Termination by the Company for Cause . The Company may
terminate the Term and Executive’s employment hereunder at
any time for Cause. Upon termination of the
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Term and
Executive’s employment hereunder by the Company for Cause,
the Company shall promptly pay Executive his Accrued
Compensation.
(c)
Termination by Executive for Good Reason . Executive may
terminate the Term and Executive’s employment hereunder for
“Good Reason” (as defined below), after providing
thirty (30) days written notice to the Company, which identifies
the Good Reason for Executive’s termination. Upon termination
of the Term and Executive’s employment hereunder by Executive
for Good Reason, the Company shall pay Executive: (1) his
Accrued Compensation, to be paid as soon as reasonably practicable
following such termination; and (2) subject to Section 7,
the Severance Payment, to be paid out in a single lump sum within
50 days of the date of termination.
(d)
Termination by Executive without Good Reason . Executive may
terminate the Term and Executive’s employment hereunder other
than for Good Reason upon thirty (30) days written notice to
the Company (the “ Notice Period ”). If
Executive terminates the Term and Executive’s employment
hereunder pursuant to this Section 5(d), the Company shall
promptly pay Executive his Accrued Compensation.
(e)
Termination due to Disability . The Company may terminate
the Term and Executive’s Employment hereunder due to
Executive’s “ Disability .” Executive
shall be deemed to have sustained a “Disability” if he
shall have been unable to perform his duties for a period of more
than ninety (90) days in any twelve (12) month period.
Upon termination of the Term and Executive’s employment
hereunder pursuant to this Section 5(e), the Company shall
promptly pay Executive his Accrued Compensation.
(f)
Death . The Term and Executive’s employment hereunder
will terminate automatically upon Executive’s death. Upon
termination of the Term and Executive’s employment hereunder
because of Executive’s death, the Company shall promptly pay
Executive’s estate his Accrued Compensation.
(g)
Termination COBRA Payment . Upon termination of the Term and
Executive’s employment hereunder pursuant to
Sections 5(a), (c), or (e), the Company shall pay the cost to
Executive as such costs become due for continuation coverage under
COBRA (hereinafter referred to as the “ Termination COBRA
Payments ”) during the Continuation Period (as hereafter
defined). The Continuation Period shall be the period commencing on
the date of Executive’s termination hereunder and ending on
the earlier of the date Executive becomes employed by another
employer or twelve (12) months after the date of such termination.
Executive is required to provide the Company with written notice
when Executive becomes employed by another employer.
(h)
Employment . Upon termination of the Term and
Executive’s employment hereunder for any reason, Executive
shall be deemed to have voluntarily resigned from the Board and any
and all positions he holds as an officer or director of the Company
or any affiliate.
(i)
409A . Notwithstanding any provision of this Agreement to
the contrary, if all or any portion of the payments and/or benefits
due under this Section 5 are determined to be
“nonqualified deferred compensation” subject to
Section 409A of the United States Internal
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Revenue
Code of 1986, as amended (the “ Code ”), and the
Company determines that Executive is a “specified
employee” as defined in Section 409A(a)(2)(B)(i) of the
Code and the final regulations promulgated thereunder (the “
Treasury Regulations ”) and other guidance issued
thereunder, then such payments and/or benefits (or portion thereof)
shall commence no earlier than the first day of the seventh month
following Executive’s termination of employment (with the
first such payment being a lump sum equal to the aggregate payments
and/or benefits Executive would have received during such six-month
period if no such payment delay had been imposed). For purposes of
this Section 5, “termination of employment” shall
mean Executive’s “separation from service”, as
defined in Section 1.409A-1(h) of the Treasury Regulations,
including the default presumptions thereunder.
(j)
Other Severance Pay . Other than as stated in this
Section 5, Executive shall not be entitled to, and the Company
shall not pay, any severance pay or benefits under any other plan,
program or policy of the Company (including, without limitation, no
Discretionary Bonus for the year of termination).
(k)
Definitions . As used in this Agreement, and unless the
context requires a different meaning, the following terms, when
capitalized, have the meaning indicated:
(i) “
Cause ” shall mean: (A) the willful and continued
failure of Executive to perform substantially Executive’s
duties with the Company (other than any such failure resulting from
incapacity due to physical or mental illness), after a written
demand for substantial performance is delivered to Executive by the
Board which specifically identifies the manner in which the Board
believes that Executive has not substantially performed
Executive’s duties, or (B) the willful engaging by
Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Company.
For
purpose of this provision, no act or failure to act, on the part of
Executive, shall be considered willful unless it is done, or
omitted to be done, by Executive in bad faith or without reasonable
belief that Executive’s action or omission was in the best
interests of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board
or based upon the advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by
Executive in good faith and in the best interests of the Company.
The termination of employment of Executive shall not be deemed to
be for cause unless and until there shall have been delivered to
Executive a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such
purpose (after reasonable notice is provided to Executive and
Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of
the Board, Executive is guilty of the conduct described in
subparagraph (A) or (B) above and specifying the
particulars thereof in detail.
(ii) “
Change of Control ” shall mean the first to occur of
any of the following dates: (A) the date a Corporate Event is
consummated; (B) the date any person (as such term is used in
Section 13(d) of the Securities Exchange Act of 1934, hereinafter
the “ 1934 Act ”), other than one or more trusts
established by the Company for the benefit of employees of the
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