AMERICAN MANAGEMENT SYSTEMS INC
AMENDMENT TO EMPLOYMENT AGREEMENT
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<TYPE>EX-10.20
<SEQUENCE>9
<FILENAME>w58948ex10-20.htm
<DESCRIPTION>AMENDMENT TO EMPLOYMENT AGREEMENT
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<P align="right"><FONT size="2">EXHIBIT 10.20
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<P align="center"><FONT size="2"><B>AMENDMENT TO EMPLOYMENT AGREEMENT<BR>
WITH WILLIAM M. PURDY</B>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This AMENDMENT (&#147;the Amendment&#148;) is made effective December&nbsp;1, 2001, by
and 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 William M. Purdy,
residing at 2804 North Harrison Street, Arlington, VA 22207 (the &#147;Employee&#148;).
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Employee is employed by AMS as an executive vice president
pursuant to an employment agreement dated February&nbsp;5, 2001 (the &#147;Employment
Agreement&#148;);
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Board of Directors of AMS (the &#147;Board&#148;) appointed the
Employee to serve as the President and Interim Chief Executive Officer (&#147;CEO&#148;)
of AMS until such time as AMS appointed a new CEO;
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, on September&nbsp;16, 2001, the Board approved the appointment of a
new CEO effective December&nbsp;1, 2001;
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties desire to amend the Employment Agreement in a manner
that is consistent with the resolutions adopted by the Board of Directors of
AMS on September&nbsp;16, 2001, in connection with the appointment of a new CEO; and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Section&nbsp;17 of the Employment Agreement provides that the
agreement may be amended or modified by a written instrument executed by both
AMS and the Employee;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements set forth in this Amendment, the sufficiency of which the parties
acknowledge, it is agreed as follows:
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1 of the Employment Agreement shall be and hereby is revised
effective December&nbsp;1, 2001, by extending the initial term of the Employment
Agreement through December&nbsp;31, 2004.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The text of Section&nbsp;2 of the Employment Agreement shall be and hereby
is revised effective December&nbsp;1, 2001, to read as follows:
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        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">The Employee shall be employed as President and Chief Operating Officer
of AMS, to hold office in each position until the Board designates
another person to hold such position. The Employee shall perform such
services consistent with each position as might be assigned to him from
time to time and are consistent with the bylaws of AMS.</FONT></TD>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">In performing these services, the Employee shall report to the CEO of AMS
and shall have such responsibilities and authority as are commensurate
with such positions and as may be prescribed by the CEO, the Board and
the by-laws of AMS.</FONT></TD>
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        <TD><FONT size="2">AMS and the Employee shall mutually agree on an acceptable executive role
for the Employee within 180&nbsp;days after the Employer&#146;s appointment of
Alfred T. Mockett as its new CEO. If AMS and the Employee fail to do so,
after attempting to do so in good faith, such failure shall be treated as
a constructive termination within the meaning of Section&nbsp;6.d. hereof.</FONT></TD>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsection a of Section&nbsp;5 of the Employment Agreement shall be and
hereby is revised effective January&nbsp;1, 2002, by increasing the Employee&#146;s base
salary to $600,000.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The text of subsection b of Section&nbsp;5 of the Employment Agreement shall
be and hereby is revised effective December&nbsp;1, 2001, to read as follows:
</FONT>
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        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2"></FONT></TD>
        <TD width="8%"><FONT size="2"><B>(i)</B></FONT></TD>
        <TD width="88%"><FONT size="2">In fiscal year 2002 and later years, the Employee
shall be eligible for an annual cash bonus having a value of
from 0% to 150% of his annual base salary for the relevant
year, depending on 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. If the Employee&#146;s employment terminates other than for
Cause (as defined in Section&nbsp;5.c) or because of a voluntary
termination (as defined in Section&nbsp;5.e) , his estate or his
beneficiaries, as the case may be, shall be entitled to a
pro-rated annual bonus for the year in which the termination
occurs in an amount at least equal to (A)&nbsp;the greater of his
Target Annual Bonus or the annual bonus paid in the last year
prior to his termination, multiplied by (B)&nbsp;a fraction, the
numerator of which is the number of days in the year through
the date of termination and the denominator of which is 365,
plus any accrued but unpaid portion of his annual bonus for
the previous year.</FONT></TD>
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        <TD width="8%" align="left" nowrap><FONT size="2"><B>(ii)</B></FONT></TD>
        <TD width="88%"><FONT size="2">The Employee shall be entitled to participate in
a long term incentive compensation plan for fiscal year 2002
and subsequent years. Each year&#146;s plan shall have a potential
value, depending on performance over the applicable
performance period, of approximately 125% of his target annual
cash compensation (i.e., his annual base salary plus his
Target Annual Bonus). Awards shall be made under a long term
incentive compensation plan, a draft of which is to be
submitted to the Compensation Committee within nine months of
the date that the Employee commences performing services for
AMS under this Agreement. Under the plan, which shall cover
the Employee and other senior executives of AMS, performance
award cycles shall commence annually and the amount of the
awards shall be based at least in part on the overall
performance of AMS during the applicable performance period.</FONT></TD>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paragraph (iv)&nbsp;of subsection d of Section&nbsp;6 of the Employment Agreement
shall be and hereby is revised effective December&nbsp;1, 2001, to read as follows:
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        <TD width="8%" align="left" nowrap><FONT size="2"><B>(iv)</B></FONT></TD>
        <TD width="88%"><FONT size="2">full vesting of any unexercised stock options and
any restricted stock;</FONT></TD>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paragraph (vii)&nbsp;of subsection d of Section&nbsp;6 of the Employment
Agreement shall be and hereby is revised effective December&nbsp;1, 2001, to read as
follows:
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        <TD width="8%" align="left" nowrap><FONT size="2"><B>(vii)</B></FONT></TD>
        <TD width="88%"><FONT size="2">a severance benefit in an amount equal to 200%
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;9 and 10 hereof.</FONT></TD>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16 of the Employment Agreement shall be and hereby is revised
effective December&nbsp;1, 2001, by adding the following sentence at the end
thereof: &#147;At AMS&#146;s sole discretion it may substitute, for any advance
notification otherwise required in this Agreement, continued payment of regular
salary and benefits during the otherwise required advance notification period.&#148;
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment shall be construed, interpreted and enforced in
accordance with the laws of the Commonwealth of Virginia, without regard to its
conflicts of laws principles.
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        <TD valign="top"><FONT size="2">Dated: December 1, 2001<BR>
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        <TD><FONT size="2">&nbsp;</FONT></TD>
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/s/William M. Purdy<BR>
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William M. Purdy</FONT></TD>
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AMERICAN MANAGEMENT SYSTEMS,<BR>
INCORPORATED</FONT></TD>
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        <TD valign="top"><FONT size="2">Dated: December 1, 2001<BR>
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/s/Alfred T. Mockett<BR>
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Alfred T. Mocket</FONT></TD>
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<P align="center"><FONT size="2">- 3 -</FONT>




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