Alion Science and Technology Corporation Long-Term Incentive Plan Award Agreement
Exhibit 10.59
Alion Science and Technology Corporation
Long-Term Incentive Plan
Award Agreement
Long-Term Incentive Plan
Award Agreement
This Award Agreement (the “Agreement”) is made as of and sets forth certain
specific information and agreements regarding the Award Opportunities granted by Alion Science and
Technology Corporation (the “Company) to you, the Participant, pursuant to the terms and conditions
of the Alion Science and Technology Corporation Long-Term Incentive Plan (the “Plan”).
In order to be eligible for an Award Opportunity under the Plan, you must sign and return this
Agreement to: Xx. Xxxxxxxxx X. Xxxxxxxx, Senior Vice President, Director, Human Resources, Alion
Science and Technology Corporation, 0000 Xxxxxx Xxxxxxxxx, Xxxxx 0000, XxXxxx, XX 00000-0000.
Section 1
— Award Opportunity
Participant |
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Date of Grant
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November 1, 2008 | |
Target Award Amount |
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Performance Cycle 1
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November 1, 2008 through October 31, 2009 | |
Performance Cycle 2
|
November 1, 2009 through October 31, 2010 | |
Performance Cycle 3
|
November 1, 2010 through October 31, 2011 | |
Minimum Award Amount
|
50% of Target Award Amount | |
Maximum Award Amount
|
150% of Target Award Amount | |
Vesting Date of Award
|
November 15, 2011 | |
Form of Award Payment
|
Lump sum cash payment, with mandatory taxes withheld | |
Time of Award Payment
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Within 60 days after the Vesting Date of Award |
Seventy-five percent (75%) of the Target Award Amount relates to the Sector /
Group / Department Performance Goals listed below and twenty-five percent (25%)
of the Target Award Amount relates to the Corporate Performance Goals listed
below. Furthermore, one third of each portion of the Target Award Amount
attributable to Sector and Corporate Performance Goals applies to each of the
three Performance Cycles during the term of this Agreement. See Sections 2 and
3 for the specifics regarding these terms. (if and as applicable)
Section 2
— Performance Goals
Target Award | ||||
Performance Goal Categories | Performance Goals | Amount Fraction | ||
A. Performance Cycle 1
Corporate Goals: |
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B. Performance Cycle 1
Sector / Group / Department
Goals:
(if and as applicable) |
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Target Award | ||||
Performance Goal Categories | Performance Goals | Amount Fraction | ||
C. Performance Cycle 2
Corporate Goals: |
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D. Performance Cycle 2
Sector / Group / Department
Goals:
(if and as applicable) |
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E. Performance Cycle 3
Corporate Goals: |
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F. Performance Cycle 3
Sector / Group / Department
Goals:
(if and as applicable) |
Section 3
— Determination of Earned Award
At the end of each Performance Cycle, the Committee will determine whether the performance
goals for each Performance Goal Category for that cycle have been achieved, and will determine, in
its sole discretion, the award amount that you will receive for each Performance Goal Category as
follows:
(a) If the Committee determines that all of the performance goals for a Performance
Goal Category have been achieved, you will receive an award amount for that
Performance Goal Category that will be no less than the Target Award Amount Fraction for
that Performance Goal Category, but no more than 150% of the Target Award Amount Fraction
for that Performance Goal Category.
(b) If the Committee determines that all of the performance goals for a Performance
Goal Category have not been achieved, you will receive an award amount for that
Performance Goal Category that will be no less than 50% of the Target Award Amount Fraction
for that Performance Goal Category, but no more than 150% of the Target Award Amount
Fraction for that Performance Goal Category
The aforementioned award amounts determined by the Committee are collectively referred to
herein as the “Earned Award.”
Section 4
— Vesting of Award
Earned Awards vest in full on the Vesting Date of Award, provided you are then in employment.
Earned Awards that have vested in accordance with the terms of this Agreement shall be payable as a
lump sum cash payment to you within 60 days after the Vesting Date of Award.
Section 5
— Death or Disability During Employment
If you die or become Disabled during a Performance Cycle, you (or your designated beneficiary,
as the case may be) shall become immediately vested in 100% of the sum of (a) your
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award amounts
for each Performance Cycle that has been completed as of the date that you die
or become Disabled, as determined by the Committee pursuant to Section 3 above, plus (b)
one-third of the Target Award Amount for each Performance Cycle that has not been completed as of
the date that you die or become Disabled. Payment of the appropriate amount shall be made as a
lump sum cash payment to you (or to your designated beneficiary, as the case may be) within 60 days
after the occurrence of your death or Disability.
Section 6
— Involuntary Termination Without Cause
If your employment is involuntarily terminated by the Company without Cause within the first
18 months of the Date of Grant, no award shall be paid under this Agreement. If your employment is
involuntarily terminated by the Company without Cause before the Vesting Date of Award but on or
after 18 months of the Date of Grant (i.e., on or after May 1, 2010) and during a Performance
Cycle, you shall become immediately vested in 50% of the sum of (a) your award amounts for each
Performance Cycle that has been completed as of the date that you involuntarily terminate without
Cause, as determined by the Committee pursuant to Section 3 above, plus (b) one-third of the Target
Award Amount for each Performance Cycle that has not been completed as of the date that you
involuntarily terminate without Cause. Payment of the appropriate amount shall be made as a lump
sum cash payment within 60 days after your Termination of Employment.
Section 7
— Involuntary Termination for Cause or Voluntary Termination
If your employment is terminated by the Company with Cause, or you voluntarily terminate
employment, before the Vesting Date of Award, no award shall be paid under this Agreement.
Section 8
— Change in Control
In the event of a Change in Control during a Performance Cycle, you shall become immediately
vested in 100% of the sum of (a) your award amounts for each Performance Cycle that has been
completed as of the date of the Change of Control, as determined by the Committee pursuant to
Section 3 above, plus (b) one-third of the Target Award Amount for each Performance Cycle that has
not been completed as of the date of the Change of Control. Payment of the appropriate amount
shall be made in a lump sum cash payment within 60 days after the effective date of the Change in
Control.
Section 9
— Change in Responsibilities
Subject to Section 7 above, if during any Performance Cycle and prior to the Vesting Date of
Award, for any reason your responsibilities as an employee of the Company change such that you no
longer have any direct responsibility with respect to the achievement of the Department Performance
Goals listed in Section 2 above, then (a) your Earned Award for the purposes of Section 4 above
shall be the aggregate of your award amounts that have been previously determined by the Committee
in accordance with Section 2 above, and (b) you shall not be entitled to any further award amounts
hereunder with respect to Performance Cycles that have not been completed as of the date of your
change in responsibilities. For the avoidance of doubt, if your employment is terminated by the
Company with Cause, or you voluntarily terminate employment, before the Vesting Date of Award, then
consistent with Section 7 above, you shall not be entitled to the payment of any award amounts or
Earned Award under this Agreement.
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Section 10
— Other Provisions
All of the terms of the Plan are incorporated herein by reference. Capitalized terms that are
not otherwise defined in this Agreement have the meanings ascribed to them in the Plan. You may
not assign or alienate your interest in the Plan or this Agreement. No assets will be set aside to
satisfy an award until actual payment is made. The Company will withhold all income, payroll and
other taxes and other assessments as it deems appropriate under law. This Agreement and the Plan
embody the entire understanding of the parties with respect to the subject of this Agreement, and
no person at the Company has made any verbal or written assurances or representations regarding the
subject of this Agreement other than as contained herein or in the Plan.
BY EXECUTING THIS AGREEMENT, YOU ACCEPT PARTICIPATION IN THE PLAN, ACKNOWLEDGE THAT YOU HAVE
READ AND UNDERSTAND THE PROVISIONS OF THIS AGREEMENT AND THE PLAN, AND AGREE THAT THIS AGREEMENT
SHALL GOVERN THE TERMS AND CONDITIONS OF THIS AWARD, SUBJECT TO THE PROVISIONS OF THE PLAN. IN THE
EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THIS AGREEMENT AND THE PLAN, THE PLAN SHALL CONTROL.
IN WITNESS WHEREOF, the Company and you, the Participant, have duly executed this Agreement as
of the Date of Grant set forth above.
COMPANY: | PARTICIPANT: | |||||
Alion Science and Technology Corporation
A Delaware corporation |
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By: |
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Name: |
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Title:
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Name: | |||||
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