Exhibit 10.1
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (“
Agreement ”), originally executed as of the 19th day
of March, 2007, and amended on the 4 th day of August, 2008 is hereby amended this 5th
day of May, 2009 by and between ATS Corporation, a Delaware
corporation (the “ Corporation ”), and Dr.
Edward H. Bersoff, a resident of the State of Maryland (the “
Executive ”).
WHEREAS, the Executive commenced service as the
Corporation’s Chairman, President and Chief Executive Officer
on January 16, 2007, the date of the closing of the
Corporation’s acquisition of Advanced Technology Systems,
Inc.; and
WHEREAS, the Corporation and the Executive
initially formalized the terms of the employment relationship in
this Agreement on March 19, 2007; and
WHEREAS, the Corporation and the Executive
amended the agreement on August 4, 2008 to extend the term and make
certain other revisions to the terms of such employment
relationship; and
WHEREAS, the parties desire to further extend
the term of the Executive’s service as Chief Executive
Officer through December 31, 2011; and
WHEREAS, the Executive and the Corporation wish
to formalize such extension to the Agreement.
NOW, THEREFORE, in consideration of the premises
and the mutual agreements made herein, and intending to be legally
bound hereby, the Corporation and the Executive hereby agree to
amend and restate the Agreement in the form hereinafter set
forth:
(a)
Employment and Employment Period . The
Corporation shall employ the Executive to serve as the
Corporation’s Chairman, Chief Executive Officer, and
President (the “ Chairman/CEO ”) for a period to
be agreed upon by the Executive and the Compensation Committee of
the Board of Directors (the “ Compensation Committee
”), such period currently expected to extend until on or
about December 31, 2011 (the “Employment Period
”). Further, the phrase “termination of
employment” as used hereinafter, shall be deemed to be
“separation from service” under Section 409A of the
Internal Revenue Code (the “ Code
”). The Employment Period may be extended by
mutual agreement of the parties.
(b)
Offices, Duties and Responsibilities . The
Executive shall perform such customary, appropriate and reasonable
executive duties as are usually performed by a corporation’s
Chairman, Chief Executive Officer and President . The
Executive’s offices shall be located at the
Corporation’s headquarters building in McLean,
Virginia.
(c)
Devotion to Interests of the Corporation . Except
as expressly authorized by the Board and so long as the Executive
serves as Chairman/CEO, the Executive will not, without the prior
written consent of the Corporation, directly or indirectly engage
in any other business activities or pursuits, except activities in
connection with (i) any professional, charitable or civic
activities (other than as an officer), (ii) personal investments,
(iii) serving as an executor, trustee or in another similar
fiduciary capacity for a non-commercial entity, and (iv) continued
service on a number of corporate boards consistent with the
Executive’s current board service; provided, however ,
that any such activities do not materially interfere with the
performance of his responsibilities and obligations pursuant to
this Agreement. The Executive shall use his best efforts
to promote the interests and welfare of the Corporation.
2.
Compensation and Fringe Benefits .
(a)
Base Compensation . So long as the Executive
serves as Chairman/CEO, the Corporation shall pay the Executive a
base salary at the rate of $300,000 per year, as adjusted from time
to time with the approval of the Compensation Committee (“
CEO Base Compensation ”). The CEO Base
Compensation shall be payable in installments in accordance with
the Corporation’s normal payroll practices for compensating
executive personnel and shall be subject to payroll deductions and
tax withholdings in accordance with the Corporation’s usual
practices and as required by law.
(b)
Incentive Compensation . The Executive shall be
entitled to performance-based incentive compensation within the
meaning of Section 409A of the Code (“ Incentive
Compensation ”) during the Employment Period in an amount
up to 65% of the CEO Base Compensation. The Incentive
Compensation payable for each performance period (which
shall not be less than twelve (12) months) shall be contingent on
and based on corporate and individual performance criteria agreed
to between the Executive and the Compensation Committee from time
to time. The target amount payable as Incentive
Compensation, as agreed upon between the Executive and the
Compensation Committee from time to time, is hereinafter referred
to as the “ Incentive Compensation Target
.”
(c)
Fringe Benefits . The Executive shall also be
entitled to such fringe benefits as are generally made available by
the Corporation to executive personnel, including, but not limited
to, health insurance. The Executive also will be reimbursed for
reasonable expenses incurred in connection with travel and
entertainment related to the Corporation’s business and
affairs, to be paid by the Corporation in a manner consistent with
past practice and as amended by any subsequent changes of corporate
policy.
(d)
Restricted Stock . In connection with the initial
execution of this Agreement in March 2007, the Executive was
awarded one hundred fifty thousand (150,000) shares of restricted
stock under the terms of the Company’s 2006 Omnibus Incentive
Compensation Plan, thirty thousand (30,000) of such shares to vest
on each December 31 during the Employment Period commencing with
December 31, 2007 so long as the Executive continues to serve as
Chairman/CEO, and with acceleration following a change in control
as defined in the applicable award agreement.
3.
Trade Secrets . The Executive shall not use or
disclose any of the Corporation’s trade secrets or other
confidential information. The term “trade secrets
or other confidential information” includes, by way of
example, matters of a technical nature, such as scientific, trade
and engineering secrets, “know-how,” formulae, secret
processes or machines, inventions, computer programs (including
documentation of such programs) and research projects, and matters
of a business nature, such as proprietary information about costs,
profits, markets, sales, lists of customers, plans for future
development, and other information of a similar nature that is
designated as confidential or generally maintained as confidential
or proprietary by the Corporation. After termination of
the Executive’s employment, the Executive shall not use or
disclose trade secrets or other confidential information unless
such information becomes a part of the public domain other than
through a breach of the Corporation's policies or is disclosed to
the Executive by a third party who is entitled to receive and
disclose such information.
4.
Return of Documents and Property . Upon the
effective date of notice of the Executive’s or the
Corporation’s election to terminate the Executive’s
employment, or at any time upon the request of the Corporation, the
Executive (or his heirs or personal representatives) shall deliver
to the Corporation (a) all documents and materials containing trade
secrets or other confidential information relating to the
Corporation's business and affairs, and (b) all documents,
materials and other property belonging to the Corporation, which in
either case are in the possession or under the control of the
Executive (or his heirs or personal representatives).
5.
Discoveries and Works . All discoveries and works
made or conceived by the Executive during his employment by the
Corporation, jointly or with others, that relate to the
Corporation's activities shall be owned by the
Corporation. The term “discoveries and
works” includes, by way of example, inventions, computer
programs (including documentation of such programs), technical
improvements, processes, drawings and works of
authorship. The Executive shall (a) promptly notify,
make full disclosure to, and execute and deliver any documents
requested by, the Corporation to evidence or better assure title to
such discoveries and works in the Corporation, (b) assist the
Corporation in obtaining or maintaining for itself at its own
expense United States and foreign patents, copyrights, trade secret
protection or other protection of any and all such discoveries and
works, and (c) promptly execute, whether during his employment by
the Corporation or thereafter, all applications or other
endorsements necessary or appropriate to maintain patents and other
rights for the Corporation and to protect its title
thereto. Any discoveries and works which, within six
months after the termination of the Executive’s employment by
the Corporation, are made, disclosed, reduced to a tangible or
written form or description, or are reduced to practice by the
Executive and which pertain to the business carried on or products
or services being sold or developed by the Corporation at the time
of such termination shall, as between the Executive and the
Corporation, be presumed to have been made during the
Executive’s employment by the Corporation. Set
forth on Schedule 5 attached hereto is a list of inventions,
patented or unpatented, if any, including a brief description
thereof, which are owned by the Executive, which the Executive
conceived or made prior to his employment by the Corporation and
which are excluded from this Agreement.
(a) Upon
thirty (30) days’ prior written notice the Corporation may
terminate the Executive’s employment, with or without
“Cause,” as defined in Section 6(f)
below. Upon thirty (30) days’ prior written
notice, the Executive may terminate his employment, with or without
“Good Reason,” as defined in Section 6(e)
below. Upon any termination of the Executive’s
employment (the “ Date of Termination ”) for any
reason, the Corporation shall:
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pay to the
Executive any unpaid CEO Base Compensation through the Date of
Termination;
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pay to the
Executive any unpaid Incentive Compensation earned with respect to
completed performance periods but not paid through the date of
termination under the terms of applicable incentive compensation
arrangements; and
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provide to or
for the benefit of the Executive the benefits, if any, otherwise
expressly provided under this Section 6, Section 7 or Section 8, as
applicable.
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Any payments
under this Section 6, Section 7 or Section 8 that are to be made in
connection with the termination of the Executive’s employment
will be paid in cash (with deduction of such amount as may be
required to be withheld under applicable law and regulations)
within ten (10) business days of the Executive’s termination
of employment; provided , however , that in the event
the Executive’s employment is terminated pursuant to Section
6(b) below, then, at the Corporation’s election, the
“No Cause/Good Reason Termination Fee” (as therein
defined) shall be payable in equal monthly installments over the
Applicable Severance Period (as provided in Section 6(b)) with the
first payment due within five business days after the date of the
Executive’s termination of employment (collectively, the
“ Termination Fee Installment Payments
”). All other compensation and employment benefit
arrangements provided for in this Agreement shall cease upon such
termination of employment except to the extent required by law or
otherwise expressly provided by such arrangements.
(b) In
the event the Corporation terminates the Executive’s
employment without Cause or the Executive terminates his employment
for Good Reason, then, in addition to the benefits provided for
under Sections 6(a)(i) and 6(a)(ii) and subject to the provisions
of Section 18, the Corporation shall pay to the Executive (i) a
severance benefit equal to the Executive’s then applicable
CEO Base Compensation for a period of twelve (12) months following
the termination of employment if the termination takes place during
the Employment Period (the “ Applicable
Severance Period ”), (ii) the cost of maintaining the
level of health insurance then maintained by the Executive
(including family) under Federal COBRA laws for a period of
eighteen (18) months following the effective date of the
termination, plus (iii) an amount equal to fifty percent (50%) of
the Incentive Compensation Target, if any, applicable for the first
calendar year ending during the Applicable Severance Period
(collectively, the “ No Cause/Good Reason Termination
Fee ”). In addition, all unvested restricted
stock, stock options and any other equity-based compensation
arrangements shall vest, and all stock options and other
equity-based compensation arrangements that must be exercised shall
be exercisable in accordance with the applicable award agreement.
On or before March 15 of the calendar year following the calendar
year in which the Executive’s employment with the Corporation
is terminated, the Corporation shall calculate the amount of
Incentive Compensation the Executive would have received had the
Executive remained employed by the Corporation for the entire
applicable calendar year. To the extent that the amount
of the Incentive Compensation the Executive would have received had
the Executive remained employed by the Corporation for the entire
applicable calendar year is in excess of 50% of the Incentive
Compensation Target for that year (the “ Overage
Amount ”), the Corporation shall then promptly pay to the
Executive the Overage Amount. No Overage Amount shall be
payable in respect of years following the year in which the
Executive’s employment with the Corporation is
terminated.
(c) In
the event the Corporation terminates the Executive’s
employment for Cause, then, in addition
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