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EXHIBIT 10.51 SEPARATION AGREEMENT AND GENERAL
RELEASE
This
Separation Agreement and General Release ("Agreement") is entered
into by and between Leroy R. Goff, III ("Employee") and Alion
Science and Technology Corporation ("Alion" or the "Company") as of
the latest date of execution by the parties to this Agreement (the
"Effective Date"). This Agreement supersedes any prior employment
agreements or arrangements Employee may have entered into with
Alion or its subsidiaries, affiliates, successors, assigns or
predecessors in interest, including without limitation the
Employment Agreement between Employee and Alion dated June 28,
2007, as amended (the "Employment Agreement"), except as otherwise
provided in this Agreement; provided, however, that the Employee
Intellectual Property Agreement between Employee and Alion, dated
December 19, 2002, shall remain in full force and effect.
In
consideration of the mutual covenants, agreements and
representations contained herein, the adequacy of which is hereby
acknowledged, the parties hereto expressly and intentionally bind
themselves as follows: 1.
SEPARATION OF EMPLOYEE
Employee
hereby agrees that he will announce his departure from Alion and
has notified Alion as of October 24, 2008 (the "Notification
Date") that his employment as Senior Vice President, Sector Manager
for the Defense Operations Integration Sector of Alion and his
status as a full-time employee will cease. Alion and Employee agree
that Employee shall remain an "adjunct" employee with Alion, as
defined in Alion’s policies, in an untitled position until
the first anniversary of the Notification Date (the "Separation
Date"). Employee voluntarily resigns from full-time employment with
the Company effective upon the Separation Date, and the Company
hereby accepts Employee’s resignation. Employee expressly
acknowledges that, upon the occurrence of the Separation Date, he
will no longer be an employee of Alion. Except as provided in
Paragraph 2 below, effective as of the Separation Date,
Employee shall not be eligible for further pay or benefits,
including without limitation any benefits under any severance pay
plan applicable to him as an employee of Alion, except as provided
in this Agreement. From the period of the Notification Date through
the Separation Date, and in consideration for the Salary
Continuation Payments (as defined below) Employee shall provide
such services to Alion as the Company may reasonably request.
Unless such request is made, and except as otherwise expressly
permitted by Alion’s Chief Executive Officer, Employee shall
not perform any other work for Alion, shall cease all of his
activities in connection with his duties at Alion, shall have no
authority to act on behalf of or bind Alion and shall not represent
to any third party or to any employee, agent or representative of
Alion that he has any title, role or authority to act for or on
behalf of Alion. In addition, effective on the Notification Date,
Employee expressly resigns from all offices, directorships and
fiduciary positions with the Company or any related entities.
2. PAYMENTS BY
ALION
(a) For
the period from the Notification Date through the Separation Date,
Employee shall remain on the Company’s payroll at his current
prorated annual base salary ("Salary Continuation Payments").
(b) In
addition to the Salary Continuation Payments, the Company shall pay
to Employee the amount equal to $13,145.00 representing all amounts
due for the vested and prorated unvested shares of Stock
Appreciation Rights ("SAR") under the Company’s SAR Plan.
(c) If
Employee signs and does not revoke this Agreement, then, subject to
the following paragraph and Paragraph 2(g) below, Alion shall make
the following payments ("Severance Installment Payments") to
Employee:
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(i)
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The amount of $160,000.000 representing the amount equal to his
last paid annual bonus (the "Bonus Amount"), payable on or before
December 15, 2008;
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(ii)
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The amount of $1,883,991.00, representing an additional amount
of severance ("Severance Payments"), payable as follows:
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(aa)
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$500,000.00 by the end of each of the calendar quarters
commencing on March 14, 2009 until the amount of $1,500,000.00
has been paid; and
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(bb)
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$383,991.00 by December 31, 2009.
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(iii)
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all outstanding and accrued Paid Time Off ("PTO") payable within
thirty (30) days after the Notification Date.
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(d) Notwithstanding
the foregoing, the Company’s obligation to pay the Salary
Continuation Payments, Bonus Amount and/or Severance Payments, to
the extent not already paid, shall cease immediately and such
payments will be forfeited if Employee violates any condition set
forth in Paragraph 5, 6 7 or 8.
(e) Employee
shall be permitted to continue the use of the automobile under the
Company’s current automobile lease for Employee until the
Separation Date. On or before close of business on the Separation
Date, Employee shall return the automobile, along with all
accessories purchased or reimbursed by the Company, to the
Company’s Director of Human Resources. As of one (1) day
after the Separation Date, any insurance coverage on behalf of
Employee with regard to such automobile shall cease at the
Company’s discretion.
(f) Except
as provided in this Agreement or under the terms of an applicable
employee benefit plan, no further payments shall be made to
Employee.
(g) The
Company shall withhold such tax, payroll and other amounts from
payments under this Agreement as Employee authorizes or the Company
reasonably believes to
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be required by law. Employee shall be solely responsible for
payment of his own taxes, including any taxes arising under
Internal Revenue Code Section 409A. The Company has not
provided and will not provide tax advice to Employee.
3. EMPLOYMENT
BENEFITS
(a) Employee
agrees and acknowledges that his participation in any 401(k) Plan,
short-term and long-term Disability Plans, or any other benefit
plans made available to him as an Alion employee, and his
participation in and entitlement to any and all other benefits in
which he is currently enrolled, but which are not specifically
addressed in this Agreement, will terminate on the Separation Date.
(b) Employee’s
participation in the Alion medical, dental, vision and other
insurance plans shall cease as of the Notification Date; provided
that, to the extent that Employee is eligible for and elects to
receive medical and/or dental benefits pursuant to the provisions
of the Consolidated Omnibus Budget Reconciliation Act ("COBRA") for
himself and/or any qualifying beneficiaries, the Company shall pay
on Employee’s behalf, or reimburse Employee for, the amount
of the applicable COBRA that exceeds the amount of premium payable
by Employee for the same level of coverage immediately prior to the
Effective Date. Any such COBRA premium payment by the Company that
constitutes taxable income to Employee shall be grossed up by the
Company, assuming an applicable income tax rate of forty percent
(40%). Payments under this paragraph shall cease at the earlier of
(i) the end of the first month in which Employee is no longer
eligible for COBRA for any reason (other than death or eligibility
for Medicare, provided that COBRA coverage continues for any
qualified beneficiary), or (ii) Eighteen (18) months
after the Notification Date. Employee shall notify the Company as
soon as practicable after he ceases to be eligible for COBRA
coverage due to coverage under the group health plan of another
employer.
(c) Except
as otherwise provided in this Agreement, Employee waives any right
of participation in, or additional benefits under, the employee
benefit, fringe benefit and compensation plans of Alion with
respect to any period after the Separation Date.
4. GENERAL RELEASE AND
FORFEITURE BY EMPLOYEE
(a) Employee
hereby releases and forever discharges Alion, its subsidiaries,
affiliates, insurers, predecessors, successors, and assigns, and
the directors, officers, shareholders, employees, representatives
and agents of each of the foregoing (collectively "Releasees") of
and from the following:
(i) Any
and all claims, demands, and liabilities whatsoever of every name
and nature (other than those arising directly out of this
Agreement), including, without limitation, those with respect to
Employee’s employment by Alion, or the terms and conditions
of employment, benefits or compensation, or termination of his
employment, which Employee has or ever had against Releasees; and
(ii)
Without limitation, any and all claims known or unknown as of the
date of execution of this Agreement for tortious injury, breach of
contract, and/or
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wrongful discharge (including, without limitation, any claim for
violation of public policy or constructive discharge), any personal
gain with respect to any claim arising under the qui tam
provisions of the False Claims Act, 31 U.S.C. 3730 or any other
whistleblower claim, all claims for infliction of emotional
distress, all claims for slander, libel, or defamation of
character, and all claims for reinstatement, back pay, front pay,
compensatory or punitive damages, severance pay, attorneys’
fees, or costs, as related to Employee’s employment by Alion,
or the terms and conditions or termination of his employment,
benefits or compensation, or termination of such employment; and
(iii)
Without limitation, any and all claims known or unknown based upon
any allegation of employment discrimination, including, without
limitation, discrimination on the basis of race, color, sex, sexual
orientation, age (including any claim pursuant to the federal Age
Discrimination in Employment Act), religion, disability, national
origin or any other classification protected under
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