AMERICAN MANAGEMENT SYSTEMS INC
EXHIBIT 10.2
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>w65369exv10w2.htm
<DESCRIPTION>EXHIBIT 10.2
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<P align="right"><FONT size="2">Exhibit&nbsp;10.2
</FONT>

<P align="center"><FONT size="2"><B>EMPLOYMENT AGREEMENT<BR>
Richard C. Lottie</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This EMPLOYMENT AGREEMENT (the &#147;Agreement&#148;) is made effective August&nbsp;5,
2002 between American Management Systems, Incorporated, a corporation formed
under the laws of the State of Delaware with its principal place of business at
4000 and 4050 Legato Road, Fairfax, VA 22033 (&#147;AMS&#148;), and Richard C. Lottie,
residing at 3805 Silver Falls Court, Plano, TX 75093 (the &#147;Employee&#148;).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, AMS desires to engage the services of the Employee as Executive
Vice President, and the Employee is willing to render such services to AMS in
consideration of the terms and conditions agreed to by the parties; and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, AMS has approved the employment of the Employee on the terms and
conditions set forth in this Agreement;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto, AMS agrees
to employ the Employee, and the Employee agrees to perform services for AMS as
an employee, effective as of August&nbsp;5, 2002 upon the terms and conditions set
forth herein.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>1.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Term.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">The initial term of this Agreement shall end on August&nbsp;4, 2004, unless it
is terminated earlier as provided herein. Beginning on that date, and on
each anniversary thereafter, unless it is terminated earlier as provided
herein or AMS delivers written notice to the Employee of its intention
not to extend the Agreement at least 90&nbsp;days before such anniversary
date, the term of this Agreement shall automatically be extended for one
additional year. The restrictive covenants in Sections&nbsp;10 and 11 hereof
shall survive the termination of this Agreement.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>2.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Title and Duties.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">The Employee shall be employed as Executive Vice President of AMS. The
Employee shall perform such services consistent with his position as
might be assigned to him from time to time and are consistent with the
bylaws of AMS.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>3.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Location.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">The Employee&#146;s place of employment shall be within a 25-mile radius of
the Dallas office (except that, as business needs require, AMS may change
that office to the offices described above), or at any other location
that may be mutually agreed upon in the future.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>4.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Extent of Services.</B></FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>a.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>General.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee agrees not to engage in any business activities during
the term of this Agreement except those that are for the benefit of
AMS, and to devote his entire business time, attention, skill and
effort to the performance of his duties under this Agreement.
Notwithstanding the foregoing, the Employee may engage in
charitable, professional and civic activities that do not impair
the performance of his duties to AMS, as the same may be changed
from time to time, or otherwise adversely affect AMS&#146;s interest,
reputation, business or welfare. Nothing contained herein shall
prevent the Employee from managing his own personal investments and
affairs, including but not limited to investing his assets in the
securities of publicly traded companies; provided, however, that
the Employee&#146;s activities do not constitute a conflict of interest,
violate securities laws, or otherwise interfere with the
performance of his duties and responsibilities as described herein.
The Employee agrees to adhere to AMS&#146;s published policies and
procedures affecting directors, officers, employees, and agents and
shall use his best efforts to promote AMS&#146;s interest, reputation,
business and welfare.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>b.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Corporate Opportunities.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee agrees that he will not take personal advantage of any
AMS business opportunities that arise during his employment with
AMS and that might be of benefit to AMS. All material facts
regarding such opportunities must be promptly reported to the Board
for consideration by AMS.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>5.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Compensation and Benefits.</B></FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>a.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Base Salary.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee&#146;s initial annualized base salary shall be $320,000.
The base salary shall be payable in accordance with AMS&#146;s standard
payroll practices. The Employee&#146;s annual base salary shall be
reviewed no less frequently than annually by the AMS Compensation
Committee and/or Board; provided, however, that at no time during
the term of this Agreement shall the Employee&#146;s base salary be
decreased from the base salary then in effect except as part of a
general program of salary adjustment by AMS applicable to all
similarly-situated employees.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>b.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Incentive Compensation.</B></FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(i)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee shall be eligible for an annual cash
bonus having a value of</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 2 -</FONT>
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<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">from 0% to 120% of his annual base salary for the relevant
year, depending on AMS&#146;s and the Employee&#146;s performance with
a target percentage of 60% (&#147;Target Annual Bonus&#148;). Such
annual bonuses shall be paid at the usual times for the
payment of annual bonuses by AMS.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(ii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee shall be eligible to participate in
all long term incentive plans in which other executive vice
presidents are eligible to participate.</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>c.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Hiring Grants.</B></FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(i)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">As of August&nbsp;5, 2002, the Employee shall be
granted the right, in the form of deferred stock units, to
receive 5,000 shares of common stock of AMS that are subject
to vesting and other restrictions. The stock shall be
granted, to the extent possible, under the American Management
Systems Restricted Stock and Stock Bonus Plan (the &#147;Restricted
Stock Plan&#148;), and, in any event, the grant shall have terms
substantially similar to the terms of Discretionary Awards
made under the Restricted Stock Plan. If the Employee&#146;s
employment is terminated without Cause and not on account of
Disability (as defined below), the deferred stock units shall
become fully vested. The shares will vest over three years in
equal increments on the anniversary of the grant date.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(ii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee shall be granted a nonqualified
stock option for 25,000 shares of common stock of AMS at the
closing market price on August&nbsp;5, 2002. The option shall be
granted, to the extent possible, under American Management
Systems, Incorporated 1996 Amended Stock Option Plan F (&#147;Plan
F&#148;), and in any event shall have terms substantially similar
to the terms of nonqualified stock options granted under Plan
F. The options will vest over four years in increments of
twenty-five percent on the anniversary of the grant date.</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>d.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Other Benefits.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee shall be entitled to paid compensatory leave and
vacation, sick leave, and holiday pay in accordance with AMS&#146;s
policies in effect from time to time, and to participate in such
life, health, and disability insurance, pension, deferred
compensation and incentive compensation plans, stock options and
awards, performance bonuses and other benefits as AMS extends, as a
matter of policy, to its executive vice presidents.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>6.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Termination of Employment.</B></FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>a.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>In General.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">Except as specifically provided below or elsewhere in this
Agreement, the Employee&#146;s employment may be terminated by either
party at any time with or without Cause. In any event, the
Employee&#146;s employment shall terminate immediately upon his death.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 3 -</FONT>
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<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">Except as specifically provided below or elsewhere in this
Agreement, in the event that the Employee&#146;s employment is
terminated, this Agreement shall terminate and the Employee shall
be entitled only to such rights and payment of such benefits as
might be provided by the terms of any employee benefit plan or
program of AMS, or any other agreement between AMS and the
Employee.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">Except as specifically provided below or elsewhere in this
Agreement, constructive termination of the Employee&#146;s employment by
AMS shall be treated the same as actual termination for purposes of
this Agreement. Constructive termination shall mean a termination
of the Employee&#146;s employment at his own initiative following the
occurrence, without the Employee&#146;s prior written consent, of one or
more of the following events:</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(i)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">a significant diminution in the nature or scope
of the Employee&#146;s authority or the duties that the Employee
performs, unless the Employee is given new authority or
assigned new duties (whichever is applicable) that are
substantially comparable to his previous authority and duties;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(ii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">a significant reduction in the Employee&#146;s then
current base salary, a significant reduction in his
opportunities for earnings under his incentive compensation
plans, or a significant reduction in his employee benefits as
a whole (in each case except as part of a general reduction
that applies to other similarly-situated employees); or</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(iii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">the relocation of the Employee&#146;s office from its
location at the time of the change to a location more than 25
miles away without his prior written consent.</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The mere failure of AMS to extend (or notice of its intention not
to extend) the Agreement shall not result in actual or constructive
termination; provided, however, that if AMS fails to extend the
Agreement its obligation to provide the benefits set forth in
Section&nbsp;6.c. hereof, on the terms and conditions set forth in that
section, and without regard to any other section hereof, shall
survive the termination of the Agreement. Under no circumstances
shall a termination or constructive termination be deemed to occur
for purposes of Section&nbsp;6.c. hereof, if AMS&#146;s obligation to perform
this Agreement is assigned or transferred to a successor employer
pursuant to Section&nbsp;17 hereof or if the Employee otherwise becomes
employed without a significant period of unemployment under
substantially similar terms and conditions by a successor to some
or all of the business of AMS.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>b.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Voluntary Termination.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The Employee&#146;s voluntary termination of employment shall be
effective upon 30&nbsp;days&#146; prior written notice to AMS, unless the
parties mutually agree to advance or delay the effective date.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 4 -</FONT>
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<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>c.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Termination Without Cause.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">AMS&#146;s termination of the Employee&#146;s employment (or taking of any
action or actions resulting in constructive termination of
employment) without Cause shall be effective upon 30&nbsp;days&#146; prior
written notice to the Employee, unless the parties mutually agree
to advance or delay the effective date.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">If the Employee&#146;s employment is terminated without Cause and not on
account of Disability, the Employee shall be entitled to receive
from AMS the following benefits in addition to any other benefits
to which he might be entitled:</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(i)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">a severance benefit in an amount equal to 100% of
the Employee&#146;s annual base salary in effect immediately
preceding such termination, but only if (1)&nbsp;the Employee
executes a release substantially identical to the release
attached hereto, (2)&nbsp;the period for revoking such release has
expired, and (3)&nbsp;the Employee has complied with the
requirements of Sections&nbsp;10 and 11 hereof;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(ii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">full vesting of any unexercised stock options;
and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(iii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">payment of amounts equal to any premiums for
health and dental insurance continuation coverage under any
AMS health plans that is elected by the Employee or his
beneficiaries pursuant to Section&nbsp;4980B of the Internal
Revenue Code of 1986, as amended (the &#147;Code&#148;), other than the
employee portion of such premiums, at a time or times mutually
agreed to by the parties.</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">AMS shall pay 75% of the severance benefit in paragraph (i)&nbsp;within
30&nbsp;days after all of the applicable conditions are satisfied. AMS
shall pay the other 25% of the severance benefit with interest 12
months after all of the applicable conditions are satisfied,
provided that the Employee complies with the covenants in Sections
10 and 11 hereof throughout that period. If the Employee does not
comply with the requirements of Sections&nbsp;10 and 11 hereof at any
time during that period, the other 25% of the severance benefit
shall not be paid to the Employee. All severance benefits paid to
the Employee shall be paid subject to all legally required payroll
deductions and withholdings for sums owed by the Employee to AMS.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">For purposes of this Agreement, &#147;Cause&#148; shall mean: (1)&nbsp;the
conviction of the Employee of, or the entry of a plea of guilty or
nolo contendere by the Employee to, any felony or misdemeanor
involving moral turpitude; (2)&nbsp;fraud, misappropriation or
embezzlement by the Employee; (3)&nbsp;the Employee&#146;s willful failure,
gross negligence or gross misconduct in the performance of his
assigned duties for AMS; (4)&nbsp;the Employee&#146;s breach of a fiduciary
duty to AMS; (5)&nbsp;any act or omission of the Employee not at the
express direction of the board or other appropriate authority that
reflects adversely on the integrity and reputation for honesty and
fair dealing of AMS or has a material detrimental effect on AMS&#146;s
financial condition, position or business; or (6)&nbsp;the breach by the
Employee of any material term of this Agreement.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 5 -</FONT>
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<P>
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">For purposes of this Agreement, &#147;Disability&#148; shall mean disability
as defined in AMS&#146;s existing long term disability policy.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>7.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Effect of Change in Control.</B></FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>a.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Additional Benefits.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">If the Employee&#146;s employment is terminated within twelve (12)
months following a Change of Control of AMS, and a severance
benefit is payable pursuant to Section&nbsp;6.c.(i) hereof, (i)&nbsp;the
amount of the severance benefit shall be increased to 200% of the
sum of the Employee&#146;s base salary and target annual bonus, (ii)&nbsp;the
25% hold-back of the severance benefit shall not apply, and (iii)
the Employee shall be entitled to the Gross-up Payment, if any,
described in subsection c below.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>b.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Definition of Change of Control.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">A &#147;Change of Control&#148; shall mean the first of the following events
to occur:</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(i)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">Any person or group (within the meaning of
Sections&nbsp;13(d) and 14(d) of the Securities Exchange Act of
1934 (the &#147;Act&#148;)), other than AMS or a trustee or other
fiduciary holding securities under an employee benefit plan of
AMS or a corporation owned directly or indirectly by the
stockholders of AMS in substantially the same proportions as
their ownership of stock of AMS, becomes the beneficial owner
(within the meaning of Rule&nbsp;13d-3 under the Act), directly or
indirectly, of securities representing 50% or more of the
combined voting power of AMS&#146;s then-outstanding securities
entitled generally to vote for the election of directors;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(ii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">AMS&#146;s stockholders approve an agreement to merge
or consolidate with another corporation unless AMS&#146;s
stockholders immediately before the merger or consolidation
are to own more than two-thirds (66-2/3%) of the combined
voting power of the resulting entity&#146;s voting securities
entitled generally to vote for the election of directors;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(iii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">AMS&#146;s stockholders approve an agreement
(including, without limitation, an agreement of liquidation)
to sell or otherwise dispose of all or substantially all of
the business or assets of AMS; or</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(iv)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">During any period of two (2)&nbsp;consecutive years,
individuals who, at the beginning of the period, constituted
the Board cease for any reason to constitute at least a
majority thereof, unless the election or the nomination for
election by AMS&#146;s stockholders of each new director was
approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of
the period (either by a specific vote or by approval of the
proxy statement of AMS in which such person is named as a
nominee for director, without objection to such nomination).</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 6 -</FONT>
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<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">However, no Change of Control shall be deemed to have occurred by
reason of (1)&nbsp;any event involving a transaction in which the
Employee or a group of persons or entities with whom or with which
the Employee acts in concert, acquires, directly or indirectly, 50%
or more of the combined voting power of AMS&#146;s then-outstanding
voting securities or the business or assets of AMS, (2)&nbsp;any event
involving or arising out of a proceeding under Title 11 of the
United States Code or the provisions of any future United States
bankruptcy law, an assignment for the benefit of creditors or an
insolvency proceeding under state or local law.</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>c.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2"><B>Effect of Section&nbsp;280G.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The benefit provided under this Section&nbsp;7 or Section&nbsp;6 hereof, if
applicable, shall be provided without regard to any limitations
imposed by Section&nbsp;280G or 4999 of the Code.</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(i)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">In the event that the Employee becomes entitled
to the benefits (including the acceleration of certain
benefits) provided under this Section&nbsp;7 or Section&nbsp;6 hereof,
if applicable (the &#147;Benefits&#148;), if any of the Benefits will be
subject to the tax (the &#147;Excise Tax&#148;) imposed by Section&nbsp;4999
of the Code (or any similar tax that may hereafter be
imposed), AMS shall pay to the Employee an additional amount
(the &#147;Gross-up Payment&#148;) such that the net amount retained by
the Employee, after deduction of any Excise Tax on the Total
Benefits (as hereinafter defined) and any federal, state and
local income tax and Excise Tax upon the Gross-up Payment
provided for by this subparagraph (i), but before deduction
for any federal, state or local income tax on the Benefits,
shall be equal to the &#147;Total Benefits,&#148; as defined below.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(ii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">For purposes of determining whether any of the
Benefits will be subject to the Excise Tax and the amount of
such Excise Tax:</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="89%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(1)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">Any other payments or benefits
received or to be received by the Employee in connection
with a change of control of AMS or the Employee&#146;s
termination of employment (whether pursuant to the terms
of this Agreement or any other plan, arrangement or
agreement with AMS, any person whose actions result in a
change of control of AMS, or any person affiliated with
AMS or such person) (which, together with the Benefits,
shall constitute the &#147;Total Benefits&#148;) shall be treated
as &#147;parachute payments&#148; within the meaning of Section
280G(b)(2) of the Code, and all &#147;excess parachute
payments&#148; within the meaning of Section&nbsp;280G(b)(1) of
the Code shall be treated as subject to the Excise Tax,
unless in the opinion of tax counsel selected by AMS&#146;s
independent auditors such other payments or benefits (in
whole or in part) will 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 in excess of the base amount
within the meaning of Section&nbsp;280G(b)(3) of the Code or
are</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 7 -</FONT>
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<P align="right">
<TABLE width="89%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">otherwise not subject to the Excise Tax, and such tax
counsel shall provide such opinion in writing to the
Employee such that he and his tax advisors can rely on
it,</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(2)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The amount of the Total Benefits
which shall be treated as subject to the Excise Tax
shall be equal to the lesser of (I)&nbsp;the total amount of
the Total Benefits and (II)&nbsp;the amount of excess
parachute payments within the meaning of Section
280G(b)(1) of the Code (after applying paragraph (1),
above), and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(3)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">The value of any non-cash benefits or
any deferred payment or benefit shall be determined by
AMS&#146;s independent auditors in accordance with the
principles of Section&nbsp;280G(d)(3) and (4)&nbsp;of the Code.</FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="94%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>(iii)</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">For purposes of determining the amount of the
Gross-up Payment, the Employee shall be deemed to pay federal
income taxes at the highest marginal rate of federal income
taxation for the calendar year in which the Gross-up Payment
is to be made and the applicable state and local income taxes
at the highest marginal rate of taxation for the calendar year
in which the Gross-up Payment is to be made, 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
the Gross-up Payment is made, the Employee shall repay to AMS
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 (plus the portion of the
Gross-up Payment attributable to the Excise Tax and federal
and state and local income tax imposed on the portion of the
Gross-up Payment being repaid by the Employee if such
repayment results in a reduction in Excise Tax and/or a
federal and state and local income tax deduction), plus
interest on the amount of such repayment at the rate provided
in Section&nbsp;1274(b)(2)(B) of the Code. In the event that the
Excise Tax is determined to exceed the amount taken into
account hereunder at the time the Gross-up Payment is made
(including by reason of any payment the existence or amount of
which cannot be determined at the time of the Gross-up
Payment), AMS 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.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>8.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Mitigation and Offset.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">If the Employee&#146;s employment is terminated during the term of this
Agreement without Cause, the Employee shall be under no duty or
obligation to seek or accept other employment, and no payment or benefits
of any kind due him under this Agreement shall be reduced, suspended or
in any way offset by any subsequent employment.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 8 -</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>9.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Entitlement to Other Benefits.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Except as expressly provided herein, this Agreement shall not be
construed as limiting in any way any rights or benefits the Employee, his
spouse, dependents or beneficiaries may have pursuant to any other
employee benefits plans or programs.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>10.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Confidentiality.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">The Employee acknowledges that all confidential information regarding the
business of AMS and its subsidiaries and affiliates is the exclusive
property of AMS. On or before the date that his employment with AMS
terminates, the Employee shall return to AMS all copies of any material
involving such confidential information to AMS, and the Employee agrees
that he will not, directly or indirectly, divulge or use such
information, whether or not such information is in written or other
tangible form. The Employee also shall return to AMS by that date any
other items in his possession, custody or control that are the property
of AMS. The Employee understands that even after the date that his
employment with AMS terminates he will remain bound by the terms of the
American Management Systems, Incorporated Confidentiality and
Intellectual Property Rights Agreement, the AMS Ethical Business Conduct
policy statement, and the restrictive covenants contained in this Section
10 and Section&nbsp;11 hereof. This Section is intended to cover confidential
information of AMS that relates to the business of AMS that has not
otherwise been made public and shall not apply to employee responses that
may be required by proper governmental or judicial inquiry. No breach of
this Section shall be deemed to have occurred unless AMS provides written
notice to the Employee of the breach within 90&nbsp;days after AMS becomes
aware of it.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>11.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Non-Solicitation.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Effective on the date that his employment with AMS terminates and for a
period of 12&nbsp;months thereafter, the Employee shall not directly (a)
employ or solicit for employment, or assist in any way in solicitation
for employment, any person employed by AMS or any of its affiliates then
or at any time within the preceding 12&nbsp;months; or (b)&nbsp;solicit, or assist
in any way in the solicitation of business from any of AMS&#146;s or its
affiliates&#146; clients or prospective clients, either for the Employee&#146;s own
benefit or the benefit of anyone other than AMS, unless the business
being solicited is not competitive with the services or products provided
by AMS or its affiliates. Clause (b)&nbsp;shall not apply unless the business
being solicited is in a line of business in which AMS was already engaged
or already had under active consideration while the Employee was employed
by AMS or is a natural extension of such a line business with a client
that was an existing client of AMS during that time.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>12.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Employee Representation.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">The Employee represents and warrants to AMS that he is not now under any
obligation of a contractual or other nature to any person, business or
other entity that is inconsistent or in conflict with this Agreement or
that would prevent him from performing his obligations under this
Agreement.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 9 -</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>13.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Arbitration.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Any dispute or controversy arising under or in connection with this
Agreement shall, if AMS or the Employee so elects, be settled by
arbitration, in accordance with the Commercial Arbitration Rules
procedures of the American Arbitration Association. Arbitration shall
occur before a single arbitrator, provided, however, that if the parties
cannot agree on the selection of such arbitrator within 30&nbsp;days after the
matter is referred to arbitration, each party shall select one arbitrator
and those arbitrators shall jointly designate a third arbitrator to
comprise a panel of three arbitrators. The decision of the arbitrator
shall be rendered in writing, shall be final, and may be entered as a
judgment in any court in the Commonwealth of Virginia. AMS and the
Employee each irrevocably consent to the jurisdiction of the federal and
state courts located in Virginia for this purpose. The arbitrator shall
be authorized to allocate the costs of arbitration between the parties.
Notwithstanding the foregoing, AMS, in its sole discretion, may bring an
action in any court of competent jurisdiction to seek injunctive relief
in order to avoid irreparable harm and such other relief as AMS shall
elect to enforce the Employee&#146;s covenants in Sections&nbsp;10 and 11 hereof.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>14.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Legal Expenses.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Except as provided in Section&nbsp;13 hereof, if any dispute or controversy
arises under or in connection with this agreement, AMS shall promptly pay
all the Employee&#146;s legal fees and expenses relating to the dispute or
controversy, including, by way of example rather than limitation,
reasonable attorneys&#146; fees incurred by the Employee in seeking to obtain
or enforce any right or benefit under this Agreement, provided, however,
that this obligation of AMS shall not apply unless the Employee prevails
in whole or in part on the dispute or controversy. This obligation shall
apply irrespective of whether the dispute or controversy is resolved by
arbitration, litigation, or a settlement thereof.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>15.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Interest.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">AMS shall pay to the Employee interest at the prime lending rate as
announced from time to time by Citibank, N.A. or its successors or
another substantially similar rate on all or any part of any amount to be
paid to the Employee hereunder that is not paid when due or that is
deferred under an express obligation to pay interest.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>16.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Indemnification.</B></FONT></TD>
</TR>
</TABLE>
<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>a.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">AMS agrees that if the Employee is made a party, or, is
threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative, or investigative (a
&#147;Proceeding&#148;), by reason of the fact that he is or was a director,
officer or employee of AMS, or is or was serving at the request of
AMS as a director, officer, member, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise,
including service with respect to employee benefit plans, whether or
not the basis of such Proceeding is the Employee&#146;s alleged action in
an official capacity while serving as a director, officer, member,
employee or agent, the Employee shall be indemnified and held
harmless by AMS to the</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 10 -</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P align="right">
<TABLE width="98%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">fullest extent permitted or authorized by AMS&#146;s certificate of
incorporation and by-laws. To the extent consistent with the
foregoing, this obligation to indemnify the Employee and hold him
harmless shall continue even if he has ceased to be a director,
officer, member, employee or agent of AMS or other such entity
described above, and shall inure to the benefit of the Employee&#146;s
heirs, executors and administrators. AMS shall advance to the
Employee all reasonable costs and expenses incurred by him in
connection with a Proceeding within 20&nbsp;days after receipt by AMS of
a written request for such advance. Such request shall include an
undertaking by the Employee to repay the amount of such advance if
it shall ultimately be determined that the Employee is not entitled
to be indemnified against such costs and expenses.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"><B>b.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">Neither the failure of AMS (including its Board, independent
legal counsel or stockholders) to have made a determination before
such Proceeding concerning payment of amounts claimed by the
Employee under subsection a above that indemnification of the
Employee is proper because he has met the applicable standards of
conduct, nor a determination by AMS (including its Board,
independent legal counsel or stockholders) that the Employee has not
met such applicable standards of conduct, shall create a presumption
that the Employee has not met the applicable standards of conduct.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>17.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Assignability and Binding Nature.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors, heirs (in the case of the
Employee) and assigns. No rights or obligations may be assigned or
transferred by AMS except that such rights or obligations may be assigned
or transferred pursuant to a merger or consolidation in which AMS is not
the continuing entity, or the sale or liquidation of all or substantially
all of the assets of AMS, provided that the assignee or transferee is the
successor to all or substantially all of the assets of AMS and such
assignee or transferee assumes the liabilities, obligations, and duties
of AMS, as contained in this Agreement, either contractually, or as a
matter of law. AMS further agrees, that in the event of a sale of assets
or liquidation as described in the foregoing sentence, it shall take
whatever action it is legally entitled to take in order to cause the
assignee or transferee to expressly assume the liabilities, obligations,
and duties of AMS under this Agreement. Notwithstanding any such
assignment, AMS shall not be relieved from liability under this
Agreement. No rights or obligations of the Employee under this Agreement
may be assigned or transferred by the Employee other than his right to
receive compensation and benefits, provided such assignment or transfer
is otherwise permitted by law.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>18.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Notices.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">All notices required or permitted hereunder shall be in writing and shall
be deemed effective: (a)&nbsp;upon personal delivery; (b)&nbsp;upon deposit with
the United States Postal Service, by registered or certified mail,
postage prepaid; or (c)&nbsp;in the case of delivery by nationally recognized
overnight delivery service, when received, addressed as follows:</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 11 -</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%">
<FONT size="2">If to AMS to:<P>American Management Systems, Incorporated<BR>
4050 Legato Road<BR>
Fairfax, VA 22033<BR>
Attention: Garry Griffiths, Chief Human Resources Officer
</FONT>
<P><FONT size="2">With a copy (which shall not constitute notice) to:
</FONT>
<P><FONT size="2">Shaw Pittman LLP<BR>
2300 N Street, N.W.<BR>
Washington, DC 20037<BR>
Attention: Barbara M. Rossotti, Esq.
</FONT>
<P><FONT size="2">If to the Employee, to:
</FONT>
<P><FONT size="2">Richard C. Lottie<BR>
3805 Silver Falls Court<BR>
Plano, TX 75093
</FONT>
<P>
<FONT size="2">
or to such other address or addresses as either party shall designate to
the other in writing from time to time by like notice. At AMS&#146;s sole
discretion it may substitute, for any advance notification otherwise
required in this Agreement (including the right to a delayed effective
date provided in Section&nbsp;6 hereof in lieu of advance notice), continued
payment of regular salary and benefits during the otherwise required
advance notification period.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>19.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Amendment.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">This agreement may be amended or modified only by a written instrument
executed by both AMS and the Employee.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>20.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Captions.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">The captions appearing herein are for convenience of reference only and
in no way define, limit or affect the scope or substance of any section
hereof.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>21.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Time.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">All reference herein to periods of days are to calendar days, unless
expressly provided otherwise. Where the time period specified herein
would end on a weekend or holiday, the time period shall be deemed to end
on the next business day.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>22.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Entire Agreement.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Except for other agreements specifically referenced herein, this
Agreement constitutes the entire agreement between AMS and the Employee
and supersedes all prior agreements and understandings, whether written
or oral relating to the subject matter hereof.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">- 12 -</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>23.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Severability.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">In case any provision hereof shall be held by a court or arbitrator with
jurisdiction over AMS or the Employee to be invalid, illegal or otherwise
unenforceable, such provision shall be restated to reflect as nearly as
possible the original intentions of AMS and the Employee in accordance
with applicable law, and the validity, legality and enforceability of the
remaining provisions shall in not way be affected or impaired thereby.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>24.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Waiver.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">No delays or omission by AMS or the Employee in exercising any right
hereunder shall operate as a waiver of that or any other right. A waiver
or consent given by AMS or the Employee or any one occasion shall be
effective only in that instance and shall not be construed as a bar or
waiver of any right on any other occasion.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>25.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Governing Law.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">This Agreement shall be construed, interpreted and enforced in accordance
with the laws of the Commonwealth of Virginia, without regard to its
conflicts of laws principles.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>26.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Withholding.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">AMS may make any appropriate arrangements to deduct from all benefits
provided hereunder any taxes reasonably determined to be required to be
withheld by any government or government agency. The Employee shall bear
all taxes on benefits provided hereunder to the extent that no taxes are
withheld, irrespective of whether withholding is required.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2"><B>27.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><B>Counterparts.</B></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute
one and the same instruments.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">IN WITNESS WHEREOF, AMS and the Employee have executed this Agreement effective
as of August&nbsp;5, 2002.
</FONT>

<P>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
<TR valign="bottom">
        <TD width="45%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
        <TD width="45%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">EMPLOYEE</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
AMERICAN MANAGEMENT</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
SYSTEMS, INCORPORATED</FONT></TD>
</TR>
<TR valign="bottom">
        <TD width="45%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width="45%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2"><u>/s/ Richard C. Lottie&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
By: <u>Garry Griffiths&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richard C. Lottie</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Garry Griffiths</FONT></TD>
</TR>
<TR valign="bottom">
        <TD width="45%">&nbsp;</TD>
        <TD width="10%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">Date: <u>8/12/2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
Date: <u>8/6/02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
</TR>
</TABLE>
</CENTER>



<P align="center"><FONT size="2">- 13 -</FONT>




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