Document:

ex10-1.htm

    
      
        

      
Exhibit 10.1 

       

      DORMAN
PRODUCTS, INC. 

      AMENDED
AND RESTATED INCENTIVE
STOCK PLAN

       

      
        
          
            
              
                	
                        1.

                      	
                        Purpose
      of Plan

                      

              

            

          

        

      

       

      The Plan
is intended as an additional incentive to employees’ directors, consultants and
advisors to enter into or remain in the employ or service of Dorman Products,
Inc., a Pennsylvania Corporation (the “Company”), or its Affiliates (as defined
below) and to devote themselves to the Company’s success by providing them with
an opportunity to acquire or increase their proprietary interest in the Company
through the receipt of Options.

       

      
        
          	
                  2.

                	
                  Definitions

                

        

      

       

      (a)          “Affiliate” means any
corporation which is a parent corporation of the Company within the meaning of
section 424(e) of the Code or a subsidiary corporation of the Company within the
meaning of section 424(f) of the Code.

       

      (b)          “Board” means the
board of directors of the Company.

       

      (c)           “Code” means the
Internal Revenue Code of 1986, as amended.

       

      (d)          “Committee” means the
committee described in Paragraph 5(a).

       

      (e)          “Date of Grant” means
the date on which an Option is granted.

       

      (f)           “Eligible Persons”
means the persons described in Paragraph 7 as being eligible to receive
Options.

       

      (g)          “Fair Market Value”
per Share means, on any given date, the last sale price of Shares as reported on
a national securities exchange or, if Shares are not listed on a national
securities exchange, as reported on the NASDAQ National Market System or, if not
included on the NASDAQ National Market System but otherwise included in NASDAQ
or, if not included in NASDAQ but subject to quotations included on the “pink
sheets” otherwise disseminated, then the fair market value per Share shall be
the mean between the closing “bid” and “asked” prices thereof, as applicable and
as the Committee determines, or if the Shares are not so reported, the fair
market value of Shares determined by the Committee in good faith.

       

      (h)          “Incentive Stock
Option” means an Option granted under the Plan, intended to be an
“incentive stock option” within the meaning of Section 422(b) of the Code,
designated by the Committee at the time of such grant as an Incentive Stock
Option and containing the terms specified herein for Incentive Stock
Options.

       

      (i)           “Non-Qualified Option”
means an Option granted under the Plan, designated by the Committee at the time
of such grant as a Non-Qualified Option and containing the terms specified
herein for Non-Qualified Options, or any Option granted under the Plan which
fails to qualify as an Incentive Stock Option.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      (j)           “Option” means any
stock option granted under the Plan and described in either Paragraph 3(a) or
Paragraph 3(b).

       

      (k)          “Optionee” means a
person to whom an Option has been granted under the Plan, which Option has not
been exercised and has not expired or terminated.

       

      (l)           “Plan” means the
Dorman Products, Inc. Amended and Restated Incentive Stock Plan.

       

      (m)         “Rule 16b-3” means
Rule 16b-3 (or any similar rule) promulgated by the Securities and Exchange
Commission.

       

      (n)          “Share” or “Shares” means a share
or shares of common stock, $0.01 par value, of the Company.

       

      (o)          “Ten Percent
Shareholder” means a person who, on the Date of Grant, owns, either
directly or within the meaning of the attribution rules of section 424(d) of the
Code, stock possessing more than 10% of the total combined voting power of all
classes of stock of his or her employer corporation or of its parent or
subsidiary corporation, as defined respectively in sections 424(e) and (f) of
the Code, provided that the employer corporation is the Company or an
Affiliate.

       

      
        
          	
                  3.

                	
                  Rights
      To Be Granted

                

        

      

       

      Rights
that may be granted under the Plan are:

       

      (a)           Incentive
Stock Options, which give the Optionee one right for a specified time period to
purchase a specified number of Shares for a price not less than the Fair Market
Value on the Date of Grant; and

       

      (b)           Non-Qualified
Options, which give the Optionee the right for a specified time period to
purchase a specified number of Shares for a price to be determined by the
Committee on the Date of Grant.

       

      
        
          	
                  4.

                	
                  Stock
      Subject to Plan

                

        

      

       

      The
maximum number of Shares that may be issued pursuant to the Plan upon exercise
of Options is 1,172,500, subject to adjustment as provided in Paragraph 12. The
Shares so delivered may, at the Company’s option, be either Treasury Shares or
Shares originally issued for such purpose. If an option covering Shares
terminates or expires without having been exercised in whole or in part,
additional Options may be granted covering the Shares as to which the Option was
not exercised.

       

      
        
          	
                  5.

                	
                  Administration
      of Plan

                

        

      

       

      (a)           The
Plan shall be administered by the Board without participation by any director on
any matter pertaining to him. However, the Board may designate a Committee
composed of two or more of its members each of whom shall be an “outside
director” within the meaning of Treasury Regulation Section 1.162-27(e) to
operate and administer the Plan in its stead.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (b)           The
Committee shall hold meetings at such times and places as it may determine. A
majority of the members of the Committee shall constitute a quorum. Acts
approved at a meeting by a majority of the members and the Committee or acts
approved in writing by the unanimous consent of the members of the Committee
shall be the valid acts of the Committee.

       

      (c)           The
Committee shall, from time to time at its discretion, grant Options to Eligible
Persons pursuant to the terms of the Plan. The Committee shall have plenary
authority to determine the Eligible Persons to whom, and the times at which,
Options shall be granted, the number of Options to be granted and the price and
other terms and conditions thereof, subject, however, to the express provisions
of the Plan. In making such determinations, the Committee may take into account
the nature of each Eligible Person’s services and responsibilities’ such
Eligible Person’s present and potential Contribution to the Company’s success
and such other factors as it may deem relevant. The interpretation and
construction by the Committee of any provision of the Plan or of any Option
granted under it shall be final, binding and conclusive.

       

      (d)           Each
member of the Committee shall be entitled, without further act on his or her
part, to indemnity from the Company and limitation of liability to the fullest
extent provided by applicable law and the Company’s Articles of Incorporation
and/or By-laws in connection with or arising out of any action, suit or
proceeding with respect to the administration of the Plan or the granting of
Options thereunder in which he or she may be involved by reason of his or her
being or having been a member of the Committee, whether or not he or she
continues to be a member of the Committee at the time of the action, suit or
proceeding.

       

      
        
          	
                  6.

                	
                  Grant
      of Rights

                

        

      

       

      (a)           The
Committee may grant Options to Eligible Persons.

       

      (b)           The
grant of an Option pursuant to the Plan shall not be construed to imply or to
constitute evidence of any agreement, express or implied, on the part of the
Company or any Affiliate to retain the Optionee as an employee, director,
consultant or advisor of the Company or any Affiliate.

       

      
        
          	
                  7.

                	
                  Eligibility

                

        

      

       

      (a)           All
employees, directors, consultants and advisors of the Company or its Affiliates
shall be Eligible Persons, eligible to receive grants of Options. An Eligible
Person may receive more than one Option but only on the terms and conditions,
and subject to the restrictions of the Plan. No Optionee shall be granted
Options to receive, in the aggregate, more than 10% of the Shares that may be
issued pursuant to the Plan.

       

      (b)           An
Incentive Stock Option shall not be granted to a Ten Percent Shareholder except
on such terms as are provided in Paragraphs 8(b) and 8(f) with respect to such a
person. An Incentive Stock Option shall not be granted to an Eligible Person who
is not an employee of the Company.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      
        
          	
                  8.

                	
                  Option
      Agreements and Terms

                

        

      

       

      All
Options shall be evidenced by Option agreements that shall be executed on behalf
of the Company and by the respective Optionees. The terms of Option agreements
need not be identical as between Optionees, or for Options granted at any
particular time, and shall be determined from time to time by the Committee,
consistent, however, with the following:

       

      (a)           Time of Grant. All
Options shall be granted within 10 years of the date of adoption of the
Plan.

       

      (b)           Option Price. In the
case of an Incentive Stock Option, the Option price per Share shall be
determined by the Committee but shall not be less than 100% of the Fair Market
Value of a Share on the Date of Grant; provided, however, that with respect to
any Incentive Stock Options granted to a Ten Percent Shareholder, the option
price or Share shall not be less than 110% of the Fair Market Value of a Share
on the Date of Grant. In the case of a Non-Qualified Option, the Option price
per Share shall be determined by the Committee in its discretion, and may be
less than, greater than or equal to the Fair Market Value of a Share on the Date
of Grant.

       

      (c)           Restrictions on
Transferability. No Option shall be transferable otherwise than by will
or the laws of descent and distribution and, during the lifetime of the
Optionee, shall be exercisable only by such Optionee. Upon the death of
Optionee, the person to whom the rights shall have passed by will or by the laws
of descent and distribution may exercise any Options only in accordance with the
provisions of Paragraph 8(f).

       

      (d)           Payment Upon Exercise of
Options. Full payment for Shares purchased upon the exercise of an Option
shall be made in cash or, at the election of the Optionee and as the Committee
may, in its sole discretion, approve in the Option agreement by surrendering
Shares with an aggregate Fair Market Value (determined on the date of the
delivery of the Shares) equal to the aggregate Option price, or by delivering
such combination of Shares and cash as the Committee may, in its sole
discretion, approve in the Option agreement.

       

      (e)           Issuance of Certificate upon
Exercise of Options; Payment of Cash. Only whole Shares shall be issuable
upon exercise of Options. Any right to a fractional Share shall be satisfied in
cash by multiplying the fractional Share by the Fair Market Value of a Share on
the date the Option is exercised. Subject to Paragraph 14, upon payment of the
option price, a certificate for the number of whole Shares and a check for the
Fair Market Value on the date of exercise of any fractional Share to which the
Optionee is entitled shall be delivered to such Optionee by the
Company.

       

      (f)           Termination of
Options. No Option shall be exercisable after the first to occur of the
following:

       

      (i)           Expiration
of the Option term specified in the Option agreement, which in no event shall
exceed (A) ten years from the Date of Grant, or (B) five years from the Date of
Grant in the case of an Optionee who is a Ten Percent Shareholder;

       

      (ii)          Expiration
of thirty days from the date of the termination or cessation of employment under
Paragraph 9 of the Plan of an Optionee who is a director or employee of the
Company or an Affiliate, for any reason other than disability (within the
meaning of section 22(e)(3) of the Code) or death;

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (iii)         Expiration
of one year from the date of termination or cessation of employment under
Paragraph 9 of the Plan of an Optionee who is a director or employee of the
Company or an Affiliate due to the Optionee’s disability (within the meaning of
section 22(e)(3) of the Code) or death, provided that no Option that was not
exercisable at such termination or cessation of employment shall become
exercisable following such termination or cessation of employment;
or

       

      (iv)         The
date, if any, set by the Committee to be an accelerated expiration date in the
event of the occurrence of a transaction or series of related transactions as
set forth in Paragraph 13 of the Plan.

       

      (g)           Date of Exercise. The
date of exercise of an option shall be the date on which written notice of
exercise and payment in full of the option price shall be received by the
Company in accordance with the provisions of the Option agreement. Each such
exercise shall be irrevocable when given. Each notice of exercise must (i)
specify the Incentive Stock Option, Non-Qualified Option, or combination
thereof, being exercised; and (ii) include a statement of preference (which
shall not be binding on the Committee) as to the manner in which payment to the
Company shall be made (Shares, cash or combination of Shares and cash).
Notwithstanding the above, should the Company be advised by counsel that
issuance of Shares should be delayed pending: (A) registration under federal or
state securities laws or (B) the receipt of an opinion that ban appropriate
exemption therefrom is available, the Company may defer exercise of any Option
granted hereunder until either such event in (A) or (B) has
occurred.

       

      (h)           Multiple Grants of Incentive
Stock Options and Non-Qualified Options. The grant, exercise, termination
or expiration of any Incentive Stock Option or Non Qualified Option shall, by
itself, have no effect upon any other Incentive Stock Option or Non-Qualified
Option held by the same Optionee.

       

      
        
          	
                  9.

                	
                  Termination
      or Cessation of Employment

                

        

      

       

      For
purposes of the Plan:

       

      (a)           a
transfer of an employee between two employers, each of which is the Company or
an Affiliate, shall not be deemed a termination or cessation of employment;
and

       

      (b)           the
end of the term of office of an Optionee or Participant who is a director of the
Company or an Affiliate but who is not an employee, consultant or advisor of the
Company or an Affiliate and who is not reelected as a director of the Company or
an Affiliate shall be deemed a termination or cessation of
employment.

       

      
        
          	
                  10.

                	
                  Limitation
      on Exercise of Incentive Stock
Options

                

        

      

       

      The
aggregate Fair Market Value (determined as of the time Options are granted) of
the Shares with respect to which Incentive Stock Options may first become
exercisable by an Optionee in any one calendar year under the Plan and under any
Other Plan of the Company and its Affiliates, shall not exceed $100,000. The
limitations imposed by this Paragraph 10 shall apply only to Incentive Stock
Options granted under the Plan, and not to any other Options. In the event an
individual receives an Option intended to be an Incentive Stock Option which is
subsequently determined to have exceeded the limitation set forth above, or if
an individual is granted options that first become exercisable in a calendar
year that have an aggregate Fair Market Value (determined as of the time the
options are granted) that exceeds the limitations set forth above, the Options
in excess of the limitation shall be treated as Non-Qualified
Options.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      
        
          	
                  11.

                	
                  Rights
      as Stockholders

                

        

      

       

      No
Optionee shall have any right as a stockholder with respect to any Shares
subject to his Options until the date of the issuance of a stock certificates to
him or her for such Shares.

       

      
        
          	
                  12.

                	
                  Changes
      in Capitalization

                

        

      

       

      In the
event of a stock dividend, stock split, recapitalization, combination,
subdivision, issuance of rights, or other similar corporate change, the board
shall make full anti-dilution adjustments in the aggregate number of Shares that
may be covered by Options agreements issued pursuant to the Plan, the number of
Shares that may be the subject of any individual grant of Options, and the
number of Shares subject to, and the option price of, each then-outstanding
Option.

       

      
        
          	
                  13.

                	
                  Mergers,
      Dispositions and Certain Other
Transactions

                

        

      

       

      If,
during the term of any Option agreement, the Company or any Affiliate shall be
merged into or consolidated with or otherwise combined with or acquired by
another person or entity, or there is a divisive reorganization or a liquidation
or partial liquidation of the Company, the Committee may choose to take no
action with regard to some or all of the Options outstanding or, notwithstanding
any other provision of the Plan, to take any of the following courses of
action:

       

      (a)           Not
less than 15 days nor more than 60 days prior to any such transaction, to notify
all Optionees that their Options shall expire on the 15th day after the date of
such notice in which event all Optionees shall have the right to exercise any or
all of their Options prior to such new expiration date; or

       

      (b)           The
Company may provide any agreement with respect to any such merger,
consolidation, combination or acquisition that the surviving, new or acquiring
corporation shall grant options to the Optionees to acquire shares in such
Corporation with respect to which:

       

      (i)           the
excess of the fair-market value of the shares of such corporation immediately
after the consummation of such merger, consolidation, combination or acquisition
over the option price, shall be as nearly equal to, but not greater than, the
excess of the Fair Market Value of the Shares over the option price of Options
immediately prior to the consummation of such merger, consolidation, combination
or acquisition; and

       

      (ii)          on
a share-by-share basis, the ratio of the option price to the fair market value
of the shares of the surviving, new, or acquiring corporation immediately after
such merger, consolidation, combination or acquisition is no more favorable to
the Optionee than the ratio of the option price to the Fair Market Value of the
Shares immediately before such merger, consolidation, combination or
acquisition; or

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (c)           The
Company shall take such other action as the Board shall determine to be
reasonable under the circumstances in order to permit Optionees or Participants
to realize the value of rights granted to them under the Plan.

       

      
        
          	
                  14.

                	
                  Delivery
      of Certificates for Shares; Tax
Withholding

                

        

      

       

      The
Company shall not be obligated to deliver any stock certificates for Shares
issuable on the exercise of Options until such Shares have been listed (or
authorized for listing upon official notice of issuance) upon each stock
exchange upon which outstanding Shares of such class at the time of the award
are listed nor until there has been compliance with such laws or regulations as
the Company may be deemed applicable, including without limitation, registration
or qualification of such Shares under any federal or state law. If the Optionee
is an employee of the Company or its Affiliates, the Optionee shall make
available to the Company an amount sufficient to satisfy all Federal, state and
local Withholding tax requirements prior to the delivery or transfer of any
certificate or certificates for Shares issuable on the exercise of an Option.
The Committee may, in its sole discretion, provide in the Option agreement that
the Company may retain from the Shares which are otherwise issuable or
deliverable to the Optionee a number of Shares which have a Fair Market Value
(determined on the date of delivery of the shares) equal to such tax liability.
Notwithstanding the above, the Company’s obligation to make any delivery or
transfer of Shares shall be conditioned on the Optionee’s Compliance to the
Company’s satisfaction with any withholding requirement imposed by Federal,
state or local law.

       

      
        
          	
                  15.

                	
                  Interpretation

                

        

      

       

      The
Committee shall have the power to interpret the Plan and to make and amend rules
for putting it into effect and administering it. It is intended that the
Incentive Stock options granted under the Plan shall constitute incentive stock
options within the meaning of section 422 of the Code, that Shares transferred
pursuant to the exercise of Non-Qualified options shall constitute property
subject to federal income tax pursuant to the provisions of Section 83 of the
Code and, if section 16(b) of the Securities Exchange Act of 1934, as amended,
applies to any Optionee, that the Plan shall qualify for the exemption available
under Rule 16b-3. The provisions of the Plan shall be interpreted and applied
insofar as possible to carry out such intent.

       

      
        
          	
                  16.

                	
                  Amendments

                

        

      

       

      The Plan
may be amended by the Board, but any amendment that increases the aggregate
number of Shares that may be issued pursuant to the Plan upon exercise of
Incentive Stock Options (otherwise than pursuant to Paragraph 12), that changes
the class of individuals eligible to receive Incentive Stock Options or that
otherwise requires the approval of the stockholders of the Company in order to
comply with the requirements of Rule 16b-3 shall require such approval as is
necessary to satisfy the requirements of the Rule 16b-3 and as is required by
applicable state law, as then in effect, to make the amendment effective. No
outstanding Option shall be affected by any such amendment without the written
consent of the Optionee, or other person then entitled to exercise such
Option.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      
        
          	
                  17.

                	
                  Securities
      Law

                

        

      

       

      The
Committee shall have the power to make each grant under the Plan subject to such
conditions as it deems necessary or appropriate to comply with the then-existing
requirements of the Securities Act of 1933 or the Securities Exchange Act of
1934, including Rule 16b-3.

       

      
        
          	
                  18.

                	
                  Effective
      Date and Term of Plan

                

        

      

       

      The Plan
shall become effective on the date of adoption of the Plan, and shall expire on
the day before the tenth anniversary of the date of adoption of the Plan, unless
sooner terminated by the Board. The Board shall submit this Plan to the
stockholders of the Company for their approval at the first annual meeting of
stockholders held after the adoption of the Plan by the Board. Any Option
granted before the approval of the Plan by the Company’s Stockholders shall be
expressly conditioned upon, and shall not be exercisable until, approval. If
such stockholder approval is not received within one year from the date of the
adoption of the Plan by the Board, all Options granted under the Plan shall
expire.

       

      
        
          	
                  19.

                	
                  Restrictions
      on Share Transferability and Repurchase
Rights

                

        

      

       

      The
Committee, in its discretion, may include in an Option agreement (i)
restrictions on the transferability of Shares acquired under the Plan and (ii)
circumstances under which the Company shall have repurchase rights in Shares at
a price determined under the Option agreement. Shares shall bear an appropriate
legend-evidencing any such transfer restrictions or repurchase
rights.

       

      
        
          	
                  20.

                	
                  General

                

        

      

       

      Each
Option agreement shall contain such terms and conditions not inconsistent with
the Plan as the Committee may determine. The issuance of Shares on the exercise
of an Option shall be subject to all of the applicable requirements of the
Pennsylvania Business Corporation Law of 1988, as amended from time to time, and
other applicable laws, including federal or state securities laws, and all
Shares issued under the Plan shall be subject to the terms and restrictions
contained in the Articles of Incorporation of the Company, as amended from time
to time. Among other things, the Optionee may be required to deliver an
investment representation to the Company in connection with any other exercise
of such Option or to agree to refrain from selling or otherwise disposing of the
Shares acquired for a specified period of time or on specified
terms.

       

      8ex10-1.htm

    
      

    

    Exhibit 10.1

     

    
      EMPLOYMENT
AGREEMENT

       

      This
Employment Agreement (this "Agreement") is made and entered into this 3rd day of
January 2009, by and between Versar, Inc., a Delaware corporation ("Company"),
its successors and assigns, and Charles S. Cox ("you" or
"your").  This Agreement promises you an employment relationship and
certain severance benefits during the Term of this
Agreement.  Capitalized terms are defined in the last section of the
Agreement.

       

      
        	
                1.

              	
                Purpose

              

      

       

      The
Company considers a sound and vital management team to be
essential.  The Company desires to assure itself of your services,
which you are willing to provide.  Further, management personnel who
become concerned about the possibility that the Company may undergo a Change in
Control may terminate employment or become distracted.  Accordingly,
the Company has determined that appropriate steps should be taken to minimize
the distraction executives may suffer from the possibility of a Change in
Control.  One step is to enter into this Agreement with
you.

       

      
        	
                2.

              	
                Employment

              

      

       

      Company
hereby employs you, and you accept employment with Company on the terms and
conditions set forth in this Agreement.

       

      
        	
                3.

              	
                Duties

              

      

       

      You shall
serve as Senior Vice President of the Company and President of its wholly-owned
subsidiary, VIAP, Inc.  Under the direction
of  Jeffrey  Wagonhurst, Senior Vice President of the
Program Management Group, you shall perform all assigned duties reasonably
required of an employee in such positions, shall personally, diligently, and
faithfully perform these duties to the best of your ability, on a full-time and
exclusive basis.

       

      
        	
                4.

              	
                Compensation

              

      

       

      Your
compensation for the services performed under this Agreement shall consist of a
Base Salary and Incentive Compensation, if any, as described below:

       

      
        	
                 
      

              	
                4.1.

              	
                Base
      Salary: You shall receive the base salary approved by Company's
      Compensation committee of the Board of Directors, payable in regular
      bi-weekly installments (the "Base Salary").  Your initial base
      salary is $390,000. The Base Salary will be reviewed annually by the
      Compensation Committee in accordance with standard salary review
      procedures in effect from time to time for Management officers of
      Company.  In no event shall the Base Salary be less than the
      Base Salary being paid to you on the date of this Agreement, unless you
      agree to a reduction.  In the event  that your
      employment with Company is terminated as provided in this Agreement, the
      Base Salary shall be deemed your then current Base Salary or $390,000,
      whichever is greater.

              

      

       

      
        	
                 
      

              	
                4.2.

              	
                Incentive
      Compensation: In addition to the Base Salary, you shall be eligible
      to earn incentive compensation in the form of cash or securities under
      bonus and incentive programs as may be in effect from time to time for
      management officers of Company generally ("Incentive
      Compensation").

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page
2 of 15

        

      

       

      
        	
                 
      

              	
                4.3.

              	
                Withholding:
      You agree and acknowledge that Company will withhold from your
      compensation all taxes and other amounts, which Company is required by law
      to withhold, including without limitation (i) federal income taxes, (ii)
      state income taxes, (iii) county, city or other local income taxes, and
      (iv) social security taxes.

              

      

       

      
        	
                5.

              	
                Benefits

              

      

       

      
        	
                 
      

              	
                5.1.

              	
                Generally:
      You shall be entitled to receive any and all benefits made available to
      executive officers of Company generally, including the Executive Medical
      Plan and such other benefits as the Board of Directors in its discretion
      may make available to you from time to
time.

              

      

       

      
        	
                 
      

              	
                5.2.

              	
                Insurance:
      You shall be eligible to participate in all medical, hospitalization,
      dental, life, disability and other insurance plans as are in effect from
      time to time for executive officers of Company
  generally.

              

      

       

      
        	
                 
      

              	
                5.3.

              	
                Personal
      Leave: You shall be entitled to take five (5) weeks of paid
      personal leave annually.

              

      

       

      
        	
                 
      

              	
                5.4.

              	
                Reimbursement
      for Reasonable Business Expenses: Company shall reimburse you for
      customary and reasonable expenses incurred in performing your duties
      pursuant to this Agreement, in accordance with Company's then current
      reimbursement policy (including appropriate itemization and substantiation
      of expenses incurred).

              

      

       

      
        	
                6.

              	
                Term

              

      

       

      Subject
to early termination of this Agreement in accordance with Section 7 or 8 below,
the term of your employment hereunder shall commence as of January 3, 2009, and
shall continue for a period of one (1) year.  You agree and
acknowledge that Company has no obligation to renew this Agreement or to
continue your employment after the one-year term.

       

      
        	
                7.

              	
                Termination
      by Company

              

      

       

      
        	
                 
      

              	
                7.1.

              	
                Termination
      with Cause: Company shall be entitled to terminate your employment
      and services immediately upon written notice to you, except in the case of
      death, specifying the date of termination in the event that: (i) you fail
      to carry out assigned duties after being given prior warning and an
      opportunity to remedy the failure; or (ii) you breach any material term of
      this Agreement; (iii) you engage in fraud, dishonesty, willful misconduct,
      gross negligence or breach of fiduciary duty (including without limitation
      any failure to disclose a conflict of interest), in the performance of
      your duties hereunder; (iv) you are convicted of a felony or crime
      involving moral turpitude; (v) you suffer a permanent and total disability
      which for at least six months prevents your performance of your duties
      hereunder if such permanent disability is covered by Workers Compensation
      or long term disability insurance, or both; or (vi) if you die. For eight
      weeks following Company's termination of this Agreement with cause
      pursuant to this Section 7.1, Company shall continue to pay your Base
      Salary in effect as of the date of termination and make available the
      benefits set forth in Section 5.  All other obligations of
      Company hereunder shall cease as of the date of
    termination.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
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                7.2.

              	
                Termination
      Without Cause: Company shall be entitled to terminate your
      employment and services without cause upon, not less than sixty (60) days,
      prior written notice to you specifying the date of
      termination.  If Company terminates your employment without
      cause, at any time during the one-year term, Company shall give you a lump
      sum payment equivalent of one year’s Base Salary, any Incentive
      Compensation to which you would have been entitled as of the date of
      termination, any deferred compensation, any accrued personal leave and
      will continue to make available the benefits set forth in Section 5 for
      twelve (12) months.  All other obligations of Company hereunder
      shall cease as of the date of termination.  Notwithstanding the
      foregoing, during the eighteen months immediately following Company's
      termination of this Agreement without cause, you shall be entitled to the
      vesting of any and all stock options issued by Company pursuant to its
      Incentive Stock Option Plan in accordance with the vesting schedule in
      your grant of options, and vesting of any and all other options, warrants,
      or shares, and you shall have the right to exercise such options or
      warrants, or purchase such shares under the same terms and conditions
      applicable to you prior to
termination.

              

      

       

      
        	
                8.

              	
                Termination
      by You

              

      

       

      You may
terminate your employment and services at any time and for any reason by giving
Company at least thirty (30) days' prior written notice specifying the date of
termination.  If you terminate the Agreement in accordance with this
Section 8.1, then from the date of your notice to the date of termination
(provided that during this notice period, Company does not terminate you for
cause under Section 7.1 above), Company shall continue to pay you the Base
Salary in effect as of the date of termination, and any Incentive Compensation
to which you would have been entitled as of the date of termination, any
deferred compensation, any accrued personal leave and continue to make available
the benefits set forth in Section 5 until the date of termination. All other
obligations of Company hereunder shall cease as of the date of
termination.

       

      
        	
                9.

              	
                Your
      Agreement on Change in Control

              

      

       

      If one or
more Potential Changes in Control occur during the Term of this Agreement, you
agree not to resign for at least six full calendar months after a Potential
Change in Control occurs, except as follows: (a) you may resign after a Change
in Control occurs; (b) you may resign if you are given Good Reason to do so; and
(c) you may terminate employment on account of retirement on or after age 65 or
because you become unable to work due to serious illness or injury.

       

      
        	
                10.

              	
                Events
      That Trigger Severance Benefits

              

      

       

      
        
          	 	
                  10.1.

                	
                  Termination
      After a Change in Control: You will receive Severance Benefits
      under this Agreement if, during the Term of this Agreement and after a
      Change in Control has occurred, your employment is terminated by the
      Company without Cause (other than on account of your Disability or death)
      or you resign for Good
Reason.

                

        

      

       

      
        
          	 	
                  10.2.

                	
                  Termination
      After a Potential Change in Control: You also will receive
      Severance Benefits under this Agreement if, during the Term of this
      Agreement and after a Potential Change in Control has occurred but before
      a Change in Control actually occurs, your employment is terminated by the
      Company without Cause or you resign for Good Reason, but only if either:
      (i) you are terminated at the direction of a Person who has entered into
      an agreement with the Company that will result in a Change in Control; or
      (ii) the event constituting Good Reason occurs at the direction of such
      Person.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

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Agreement

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                  10.3.

                	
                  Successor
      Fails to Assume This Agreement: You also will receive Severance
      Benefits under this Agreement if, during the Term of this
      Agreement, a successor to the Company fails to assume this Agreement, as
      provided in Section 20.1.

                

        

      

       

      
        	
                11.

              	
                Events
      That Do Not Trigger Severance
Benefits

              

      

       

      You will
not be entitled to Severance Benefits if your employment ends because you are
terminated for Cause or because of Disability
or because you
resign without Good Reason, retire, or die.  Except
as provided in Section 10.3, you will not be entitled to Severance Benefits
while you remain protected by this Agreement and remain employed by the Company,
its affiliates, or their
successors.

       

      
        	
                12.

              	
                Termination
      Procedures

              

      

       

      If you
are terminated by the Company after a Change in Control and during the Term of
this Agreement, the Company shall provide you with 30 days' advance written
notice of your termination, unless you are being terminated for
Cause.  The notice will indicate why you are being terminated and,
will set forth in reasonable detail, the facts and circumstances claimed to
provide a basis for your termination.  If you are being terminated for
Cause, your notice of termination will include a copy of a resolution duly
adopted by the affirmative vote of not less than 51 % of the entire membership
of the Board (at a meeting of the Board called and held for the purpose of
considering your termination (after reasonable notice to you and an opportunity
for you and your counsel to be heard before the Board)) finding that, in the
good faith opinion of the Board, Cause for your termination exists and
specifying the basis for that opinion in detail. If you are purportedly
terminated without the notice required by this Section, your termination shall
not be effective.

       

      
        	
                13.

              	
                Severance
      Benefits

              

      

       

      
        
          	 	
                  13.1.

                	
                  In
      General: If you become entitled to Severance Benefits under this
      Agreement, you will receive all of the Severance Benefits described in
      this Section.

                

        

      

       

      
        
          	 	
                  13.2.

                	
                  Lump-Sum
      Payment in Lieu of Future Compensation: In lieu of any further cash
      compensation for periods after your employment ends, you will be paid a
      cash lump sum equal to two times your Base Salary in effect when your
      employment ends or,
      if higher, in effect immediately before the Change in Control,
      Potential Change in Control or Good Reason event for which you terminate
      employment.  In addition, and without duplication, you will be
      paid a cash lump sum equal to 2 times the higher of the amounts paid to
      you (if any) under any existing bonus or incentive plans in the calendar
      year preceding the calendar year in which your employment ends or in the
      calendar year preceding the calendar year in which the Change in Control
      occurred (or in which the Potential Change in Control occurred, if
      benefits are payable under Section 10.2
hereof).

                

        

      

       

      
        
          	 	
                  13.3.

                	
                  Incentive
      Compensation and Options: The Company will pay you a cash lump sum
      equal to any unpaid Incentive Compensation (that is not otherwise paid to
      you) that you have been allocated or awarded under any existing bonus or
      incentive plans for measuring periods
      completed before you became entitled to Severance Benefits under this
      Agreement.  All unvested options to purchase Company common
      stock will immediately vest and remain exercisable for the longest
      period of time permitted under the applicable stock option plan. All
      unvested restricted stock awards awarded to you will immediately
      vest.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page
5 of 15

        

      

       

      
        
          	 	
                  13.4.

                	
                  Group
      Insurance Benefit Continuation: During the period that begins when
      you become entitled to Severance Benefits under this Agreement and ends on
      the last day of the 18th calendar month beginning thereafter, the Company
      shall provide, at no cost to you or your spouse or dependents, health and
      dental insurance benefits (or substantially similar benefits) it was
      providing to you and your spouse and dependents immediately before you
      became entitled to Severance Benefits under this Agreement (or immediately
      before a benefit reduction that constitutes Good Reason, if you terminate
      employment for that Good Reason). These benefits shall be treated as
      satisfying the Company's COBRA obligations.  After benefit
      continuation under this subsection ends, you and your spouse and
      dependents will be entitled to any remaining COBRA
  rights.

                

        

      

       

      
        
          	 	
                  13.5.

                	
                  Group
      Benefit s
Continuation:

                

        

      

       

      During
the period that begins when you become entitled to Severance Benefits under this
Agreement and ends on the last day of the 24th
calendar month beginning thereafter, The Company shall provide, at no cost to
you or your spouse or dependents, the life, disability and accident benefits (or
substantially similar benefits) it was providing to you and your spouse or
dependents before you became entitled to Severance Benefits under this Agreement
(or immediately before a benefit reduction that constitutes Good Reason, if you
terminate employment for that Good Reason).

      
         

        
          
            	 	
                    13.6.

                  	
                    Officer
      Benefits:

                  

          

        

         

        
                 In
lieu of the medical and tax accounting benefits available to Versar Officers,
you     will be entitled to a lump sum payment of
$16,000.00.

           

        

        
          
            	 	
                    13.7.

                  	
                    Medical
      Benefits:

                  

          

        

      

              

                           
Versar provides certain medical benefits to retired CEO’s and Vice Presidents.
If you become entitled to Severance Benefits under this Agreement, then you are
deemed to have retired and the Company shall provide, at no cost to you,
continued medical benefits it was providing you and your spouse and dependents
immediately before you became entitled to Severance Benefits under this
Agreement.

       

      
        	
                14.

              	
                Time
      for Payment

              

      

       

      You will
be paid your cash Severance Benefits within five days after you become entitled
to Severance Benefits under this Agreement (e.g., within five days following
your termination of employment).  If the amount you are due cannot be
finally determined within that period, you will receive the minimum amount to
which you are clearly entitled, as estimated in good faith by the
Company.  The Company will pay the balance you are due (together with
interest at the rate provided in Internal Revenue Code Section 1274(b) (2) (B))
as soon as the amount can be determined, but in no event later than 30 days
after you terminate employment.  If your estimated payment exceeds the
amount you are due, the excess will be a loan to you, which you must repay to
the Company within five business days after demand by the Company (together with
interest at the rate provided in Code Section 1274(b)(2)(B)).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page
6 of 15

        

      

       

      
        	
                15.

              	
                Payment
      Explanation

              

      

       

      When
payments are made to you, the Company will provide you with a written statement
explaining how your payments were calculated and the basis for the
calculations.  This statement will include any opinions or other
advice the Company has received from auditors or consultants as to the
calculation of your benefits.  If your benefit is affected by the
golden parachute limitation in Section 17, the Company will provide you with
calculations relating to that limitation and any supporting materials you
reasonably need to permit you to evaluate those calculations.

       

      
        	
                16.

              	
                Relation
      to Other Severance Programs

              

      

       

      Your
Severance Benefits under this Agreement are in lieu of any severance or similar
benefits that may be payable to you under any other employment agreement or
other arrangement; to the extent any such benefits are paid to you, they shall
be applied to reduce the amount due under this Agreement.  This
Agreement constitutes the entire agreement between you and the Company and its
affiliates with respect to such benefits.

       

      
        	
                17.

              	
                Potential
      Limitations

              

      

       

      
        
          	 	
                  17.1.

                	
                  Golden
      Parachute Limitation: Your aggregate payments and benefits under
      this Agreement and all other contracts, arrangements, or programs shall
      not exceed the maximum amount that may be paid without triggering golden
      parachute penalties under Section 280G and related provisions of the
      Internal Revenue Code, as determined in good faith by the Company's
      independent auditors.  The preceding sentence shall not apply to
      the extent the shareholder approval requirements of Code Section 280G (b)
      (5) are satisfied.  If your benefits must be reduced to avoid
      triggering such penalties, your benefits will be reduced in the priority
      order you designate or, if you fail promptly to designate an order, in the
      priority order designated by the Company.  If an amount in
      excess of the limit set forth in this Section is paid to you, you must
      repay the excess amount to the Company on demand, with interest at the
      rate provided in Code Section 1274(b)(2)(B).  You and the
      Company agree to cooperate with each other reasonably in connection with
      any administrative or judicial proceedings concerning the existence or
      amount of golden parachute penalties on payments or benefits you
      receive.

                

        

      

       

      
        
          	 	
                  17.2.

                	
                  Section
      162(m) Limitation: To the extent payments or benefits under this
      Agreement would not be deductible under Code Section 162(m) if made or
      provided when otherwise due under this Agreement, they shall be made or
      provided later, immediately after Section 162(m) ceases to preclude their
      deduction, with interest thereon at the rate provided in Code Section
      1274(b)(2)(B).

                

        

      

       

      
        	
                18.

              	
                Disability

              

      

       

      Following
a Change in Control, while you are absent from work as a result of physical or
mental illness, the Company will continue to pay you your full salary and
provide you all other compensation and benefits payable to you under the
Company's compensation or benefit plans, programs, or
arrangements.  These payments will stop if and when your employment is
terminated by the Company for Disability or at the end of the Term of this
Agreement, whichever is earlier.  Severance Benefits under this
Agreement are not payable if you are terminated because of your
Disability.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page
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                19.

              	
                Effect
      of Reemployment

              

      

       

      Your
Severance Benefits will not be reduced by any other compensation you earn or
could have earned from another source.

       

      
        	
                20.

              	
                Successors

              

      

       

      
        
          	 	
                  20.1.

                	
                  Assumption
      Required: In addition to obligations imposed by law on a successor
      to the Company, during the Term of this Agreement the Company will require
      any successor to all or substantially all of the business or assets of the
      Company expressly to assume and to agree to perform this Agreement in the
      same manner and to the same extent that the Company was required to
      perform.  If the Company fails to obtain such an assumption and
      agreement before the effective date of a succession, you will be entitled
      to Severance Benefits as if you were terminated by the Company without
      Cause on the effective date of that
succession.

                

        

      

       

      
        
          	 	
                  20.2.

                	
                  Heirs
      and Assigns: This Agreement will inure to the benefit of, and be
      enforceable by, your personal or legal representatives, executors,
      administrators, successors, heirs, distributees, devisees, and
      legatees.  If you die while any amount is still payable to you
      under this Agreement, that amount will be paid to the executor, personal
      representative, or administrator of your
estate.

                

        

      

       

      
        	
                21.

              	
                Governing
      Law

              

      

       

      This
Agreement creates a "top hat" employee benefit plan subject to the Employee
Retirement Income Security Act of 1974, and it shall be interpreted,
administered, and enforced in accordance with that law; the Company is the "plan
administrator.”  To the extent that state law is applicable, the
statutes and common law of the State of Virginia (excluding its choice of laws
statutes or common law) shall apply.

       

      
        	
                22.

              	
                Claims
      (ERISA requirement)

              

      

       

      
        
          	 	
                  22.1.

                	
                  When
      Required Attorneys' Fees: You do not need to present a formal claim
      to receive benefits payable under this Agreement.  However, if
      you believe that your rights under this Agreement are being violated, you
      must file a formal claim with the Company in accordance with the
      procedures set forth in this Section.  The Company will pay your
      reasonable attorneys' fees and related costs in enforcing your rights
      under this Agreement.

                

        

      

       

      
        
          	 	
                  22.2.

                	
                  Initial
      Claim: Your claim must be presented to the Company in
      writing.  Within 30 days after receiving the claim, a claims
      official appointed by the Company will consider your claim and issue his
      or her determination thereon in writing.  With your consent, the
      initial claim determination period can be extended further.  If
      you can establish that the claims official failed to respond to your claim
      in a timely manner, you may treat the claim as having been denied by the
      claims official.

                

        

      

       

      
        
          	 	
                  22.3.

                	
                  Claim
      Decision: If your claim is granted, the benefits or relief you are
      seeking will be provided.  If your claim is wholly or partially
      denied, the claims official shall, within three days, provide you with
      written notice of the denial, setting forth, in a manner calculated to be
      understood by you: (i) the specific reason or reasons for the denial; (ii)
      specific references to the provisions on which the denial is based; (iii)
      a description of any additional material or information necessary for you
      to perfect your claim, together with an explanation of why the material or
      information is necessary; and (iv) an explanation of the procedures for
      appealing denied claims. If you establish that the claims official has
      failed to respond to your claim in a timely manner, you may treat the
      claim as having been denied by the claims
  official.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page
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                  22.4.

                	
                  Appeal
      of Denied Claims: You may appeal the claims official's denial of
      your claim in writing to an appeals official designated by the Company
      (which may be a person, committee, or other entity) for a full and fair
      appeal.  You must appeal a denied claim within fifteen days
      after your receipt of written notice denying your claim, or within 60 days
      after such written notice was due, if the written notice was not
      sent.  In connection with the appeals proceeding, you (or your
      duly authorized representative) may review pertinent documents and may
      submit issues and comments in writing.  You may only present
      evidence and theories during the appeal that you presented during the
      initial claims stage, except for information the claims official requested
      you to provide to perfect the claim.  You will irrevocably waive
      any theories you do not in good faith pursue through the appeal stage,
      such as by failing to file a timely appeal
  request.

                

        

      

       

      
        
          	 	
                  22.5.

                	
                  Appeal
      Decision: The decision by the appeals official will be made within
      10 days after your appeal request, unless special circumstances require an
      extension of time, in which case the decision will be rendered as soon as
      possible, but not later than fifteen days after your appeal request,
      unless you agree to a greater extension of that deadline.  The
      appeal decision will be in writing, set forth in a manner calculated to be
      understood by you; it will include specific reasons for the decision, as
      well as specific references to the pertinent provisions of this Agreement
      on which the decision is based.  If you do not receive the
      appeal decision by the date it is due, you may deem your appeal to have
      been denied.

                

        

      

       

      
        
          	 	
                  22.6.

                	
                  Procedures:
      The Company will adopt procedures by which initial claims and appeals will
      be considered and resolved; different procedures may be established for
      different claims.  All procedures will be designed to afford you
      full and fair consideration of your
claim.

                

        

      

       

      
        	
                23.

              	
                Survival

              

      

       

      This
Agreement shall survive any Changes in Control, change in management of Company,
and any merger, consolidation, reorganization, sale of assets or sale of stock
of Company.

       

      
        	
                24.

              	
                Non-Competition
      and Non-Solicitation

              

      

       

      
        
          	 	
                  24.1.

                	
                  Prohibition:
      You acknowledge that Company's business and employee relationships are
      maintained at great expense and effort.  You further acknowledge
      that, by virtue of your employment under this Agreement, you will have an
      extensive and unique opportunity to establish and maintain valuable
      contacts with Company's customers and employees and the opportunity both
      during and after employment to unfairly compete with Company, its
      subsidiaries and affiliates.  Therefore, you agree that during
      the term of your employment with Company and for a period of the balance
      of the term of this Agreement or twelve (12) months following termination
      of such employment, whichever is greater, you shall not compete with the
      business of Company, its subsidiaries or affiliates.  For the
      purpose of this Agreement, activities among others which shall be deemed
      competitive include: (i) encouraging any customers of Company, its
      subsidiaries or affiliates to become a customer of you or of any other
      person except through normal competitive bidding; or (ii) encouraging any
      employee of Company, its subsidiaries or affiliates to become your
      employee or employee of any other
person.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
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          Page
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                  24.2.

                	
                  Remedies
      for Breach: You acknowledge that the damage to Company, its
      subsidiaries and affiliates resulting from a breach of this Section 24 may
      cause irreparable injury.  Therefore, in the event of any such
      breach, Company, its subsidiaries and affiliates shall be entitled to seek
      such remedies as are available at law or equity to restrain and enjoin you
      from continuing to violate the provisions of this Section
    24.

                

        

      

       

      
        
          	 	
                  24.3.

                	
                  Binding
      Effect: In the event that any part of this Section 24 shall be
      deemed by a court of competent jurisdiction to be in violation of
      applicable law for any reason whatsoever, than such part shall not be
      deemed to be void, but shall be deemed to be modified so as to be valid
      and enforceable, and the remaining provisions of this Section 24 or of
      this Agreement shall not be affected.  The provisions of Section
      24 shall survive the termination of your employment for any
      reason.

                

        

      

       

      
        	
                25.

              	
                Confidentiality
      and Non-Disclosure

              

      

       

      
        
          	 	
                  25.1.

                	
                  Prohibition:
      You understand and acknowledge that the success of Company's business is
      dependent upon the secrecy and non-disclosure of many confidential plans,
      procedures and methods.  Therefore, you agree that you will not
      directly or indirectly disclose to any person or use for your own purpose
      any confidential information, records, data, formulae, specifications,
      customer lists, ideas, inventions, plans concerning business or product
      development, business procedures, contract proposals or such proprietary
      information or other trade secrets of Company, its subsidiaries or
      affiliates ("Confidential Information") provided such information is
      marked as such or you have reason to know it is confidential. Upon
      termination of this Agreement and employment hereunder, you agree to
      promptly deliver to Company all papers, records, files, other documents
      and Confidential Information belonging to Company, its subsidiaries and
      affiliates and to not retain any copies
thereof.

                

        

      

       

      
        
          	 	
                  25.2.

                	
                  Remedies
      for Breach: You acknowledge that the damage to Company, its
      subsidiaries and affiliates resulting from a breach of this Section 25 may
      cause irreparable injury.  Therefore, in the event of any such
      breach, Company, its subsidiaries and affiliates shall be entitled to seek
      such remedies as are available at law or equity to restrain and enjoin you
      from continuing to violate the provisions of this Section
    25.

                

        

      

       

      
        
          	 	
                  25.3.

                	
                  Binding
      Effect: The provisions of Section 25 shall survive the termination
      of this Agreement and your employment for any
  reason.

                

        

      

       

      
        	
                26.

              	
                Results
      and Proceeds

              

      

       

      
        
          	 	
                  26.1.

                	
                  Ownership:
      As your employer, Company shall own all rights in and to the results and
      proceeds connected with or arising out of, directly or indirectly, your
      services hereunder.  You hereby assign to Company all right,
      title and interest in and to all intellectual property, discoveries and
      trade secrets which you may solely or jointly conceive, design, develop,
      create or suggest or cause to be conceived, designed or developed or
      created during the term of your employment by Company, which relate to
      your employment or Company's business.  For purposes of this
      Agreement, the term "intellectual property" shall include, without
      limitation, any ideas, concepts, literary material, designs, drawings,
      illustrations, photographs, patentable ideas and musical
      compositions.  To the extent that any such intellectual property
      may be protected pursuant to applicable copyright law, you acknowledge
      that such property is a work for hire within the meaning of such
      law.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page 10
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                  26.2.

                	
                  Further
      Assurances: You hereby agree to execute any documents necessary to
      evidence Company's proprietary interest in any intellectual property,
      discovery or trade secrets referred to Section 26.1 above.  In
      the event Company is unable, for any reason whatsoever, to secure your
      signature to any lawful and necessary document required to apply for
      protection of, or enforce any rights with respect to, any copyrights,
      trademark, patent or other proprietary rights, you hereby irrevocably
      designate and appoint Company, and its duly authorized officers and
      agents, as your agent and attorney-in-fact, whose power is coupled with an
      interest, to act for and in your behalf and stead, to execute such
      documents and to do all other lawful acts to protect Company's interest in
      any such copyright, trademark, patent or other proprietary right with the
      same legal force and effect as if executed by
  you.

                

        

      

       

      
        	
                27.

              	
                Amendments

              

      

       

      This
Agreement may be modified only by a written agreement executed by you and an
authorized officer of the Company.

       

      
        	
                28.

              	
                Validity

              

      

       

      The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this
Agreement.

       

      
        	
                29.

              	
                Counterparts

              

      

       

      This
Agreement may be executed in several counterparts, each of which will be deemed
an original, but all of which will constitute one and the same
instrument.

       

      
        	
                30.

              	
                Giving
      Notice

              

      

       

      
        
          	 	
                  30.1.

                	
                  To
      the Company: All communications from you to the Company relating to
      this Agreement must be sent to the Company to its principal business
      office in Springfield, Virginia, in writing, by registered or certified
      mail, or delivered
personally.

                

        

      

       

      
        
          	 	
                  30.2.

                	
                  To
      You: All communications from the Company to you relating to this
      Agreement must be sent to you in writing, by registered or certified mail,
      or delivered personally, addressed as indicated at the end of this
      Agreement.

                

        

      

       

      
        	
                31.

              	
                Conformity with the
      Immigration Reform
      and Control Act of 1986

              

      

       

      Upon
request, you agree to furnish Company with all documentation needed to satisfy
the requirements of the Immigration Reform and Control Act of 1986.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page 11
of 15

        

      

       

      
        	
                32.

              	
                Waiver

              

      

       

      The
failure of either party to insist, in any one or more instances, upon
performance of the terms or conditions of this Agreement shall not be construed
as a waiver or a relinquishment of any right granted hereunder or of the future
performance of any term or condition.

       

      
        	
                33.

              	
                Resignation
      from Offices

              

      

       

      Upon
termination of your employment, you shall be deemed to have resigned as an
officer and director of Company, its subsidiaries and affiliates, if then so
acting, as of the date of such termination.

       

      
        	
                34.

              	
                Benefit

              

      

       

      This
Agreement shall be binding upon and inure to the benefit of and shall be
enforceable by and against Company, its successors and assigns and you, your
heirs, beneficiaries and legal representatives.  This Agreement may be
assigned by Company but may not be assigned by you.

       

      
        	
                35.

              	
                Success
      Bonus

              

      

       

      The
Company’s Board of Director’s may, from time to time, direct you to identify and
proceed with a transaction to secure a sustainable future for the Company for
example, a financial partner, buyer, merger or acquisition
candidate.  If so directed by the Board of Directors and you are
successful in completing such a transaction, the Company will pay you a success
fee to be negotiated based on the size of the transaction and other industry
standards.

       

      
        	
                36.

              	
                Definitions

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Agreement

              

      

      "Agreement"
means this contract, as amended.

       

      
        	
                 
      

              	
                (b)

              	
                Base Salary

              

      

      "Base
Salary" means the gross amount of money paid you annually as your basic
compensation.  This amount is paid in regular bi-weekly
installments.

       

      
        	
                 
      

              	
                (c)

              	
                Beneficial
      Owner

              

      

      "Beneficial
Owner" has the meaning set forth in Rule 13d-3 under the Exchange
Act.

       

      
        	
                 
      

              	
                (d)

              	
                Board

              

      

      "Board"
means the Board of Directors of the Company.

       

      
        	
                 
      

              	
                (e)

              	
                Cause

              

      

      "Cause"
means any of the following:

       

      
        	
                 
      

              	
                (1)

              	
                you
      fail to carry out assigned duties after being given prior warning and an
      opportunity to remedy the failure,

              

      

       

      
        	
                 
      

              	
                (2)

              	
                you
      breach any material term of any employment
      agreement with the Company,

              

      

       

      
        	
                 
      

              	
                (3)

              	
                you
      engage in fraud, dishonesty, willful misconduct, gross negligence, or
      breach of fiduciary duty (including without limitation any failure to
      disclose a conflict of interest)in the performance of your duties for the
      Company, or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                you
      are convicted of a felony or crime involving moral
    turpitude.

              

      

       

      
        	
                 
      

              	
                (f)

              	
                Change in
      Control

              

      

      "Change
in Control" means the first of the following to occur after the date of this
Agreement:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page
12 of 15

        

      

       

      
        	
                 
      

              	
                (1)

              	
                Acquisition of Controlling
      Interest: Any
      Person becomes the Beneficial Owner, directly or indirectly, of securities
      of the Company representing 25% or more of the combined voting power of
      the Company's then outstanding securities.  In applying the
      preceding sentence, securities acquired directly from the Company or its
      affiliates, with the company's approval by or for the Person, shall not be
      taken into account.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Change in Board Control:
      During the term of this Agreement, individuals who constituted the
      Board as of the date of this Agreement (or their approved replacements, as
      defined in the next sentence) cease for any reason to constitute a
      majority of the Board.  A new director shall be considered an
      "approved replacement" director if his or her election (or nomination for
      election) was approved by a vote of at least two-thirds of the directors
      then still in office who either were directors at the beginning of the
      period or were themselves approved replacement
  directors.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Merger Approved: The
      shareholders of the Company approve a merger or consolidation of the
      Company with any other corporation unless: (a) the voting securities of
      the Company outstanding immediately before the merger or consolidation
      would continue to represent (either by remaining outstanding or by being
      converted into voting securities of the surviving entity) at least 75% of
      the combined voting power of the voting securities of the Company or such
      surviving entity outstanding immediately after such merger or
      consolidation; and (b) no Person acquires more than 25% of the combined
      voting power of the Company's then outstanding
  securities.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Sale of Assets: The
      shareholders of the Company approve an agreement for the sale or
      disposition by the Company of all or substantially all of the Company's
      assets.

              

      

       

      
        	
                 
      

              	
                (5)

              	
                Liquidation or
      Dissolution:  A complete liquidation or dissolution of
      the Company

              

      

       

      
        	
                 
      

              	
                (6)

              	
                Going Private
      Transaction:  Any transaction or series of transactions
      not covered in paragraphs (1) through (5) above the result of which is the
      suspension of the Company’s duty to file reports under the Exchange Act as
      a result of the remaining number of holders of the Company’s common stock
      following such transaction or
series.

              

      

       

      
        	
                 
      

              	
                (g)

              	
                Code

              

      

      "Code"
means the Internal Revenue Code of 1986, as amended.

       

      
        	
                 
      

              	
                (h)

              	
                Confidential
      Information

              

      

      "Confidential
Information" means any and all Company proprietary, trade secret or other
information identified in Section 25, whether written, electronic or
oral.

       

      
        	
                 
      

              	
                (i)

              	
                Company

              

      

      "Company"
means Versar, Inc. and any successor to its business or assets that (by
operation of law, or otherwise) assumes and agrees to perform this
Agreement.  However, for purposes of determining whether a Change in
Control has occurred in connection with such a succession, the successor shall
not be considered to be the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page 13
of 15

        

      

       

      
        	
                 
      

              	
                (j)

              	
                Disability

              

      

      "Disability"
means that, due to physical or mental illness: (i) you have been absent from the
full-time performance of your duties with the Company for substantially all of a
period of six consecutive months; (ii) the Company has notified you that it
intends to terminate you on account of Disability; and (iii) you do not resume
the full-time performance of your duties within 30 days after receiving notice
of your intended termination on account of Disability.

       

      
        	
                 
      

              	
                (k)

              	
                Exchange
      Act

              

      

      "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

       

      
        	
                 
      

              	
                (l)

              	
                Good
    Reason

              

      

      "Good
Reason" means the occurrence of any of the following without
your express written consent:

       

      
        	
                 
      

              	
                (1)

              	
                Demotion: Your duties
      and responsibilities are substantially and adversely altered from those in
      effect immediately before the Change in Control (or, with respect to
      Section 3(b), the Potential Change in Control), other than merely as a
      result of the Company ceasing to be a public company, a change in your
      title, or your transfer to an
affiliate.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Pay Cut: Your annual
      Base Salary is reduced.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Relocation: Your
      principal office is transferred to another location, which increases your
      one-way commute to work by more than 50 miles, based on your residence
      when the transfer was announced or, if you consent to the transfer, the
      Company fails to pay (or reimburse you) for all reasonable moving expenses
      you incur in changing your principal residence in connection with the
      relocation and to indemnify you against any loss you may realize when you
      sell your principal residence in connection with the relocation in an
      arm's-length sale for adequate consideration. For purposes of the
      preceding sentence, your "loss" will be the difference between the actual
      sales price of your residence and the higher of: (a) your aggregate
      investment in the residence; or (b) the fair market value of the
      residence, as determined by a real estate appraiser designated by you and
      satisfactory to the Company.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Breach of Promise: The
      Company fails to pay you any present or deferred compensation within seven
      days after it is due.

              

      

       

      
        	
                 
      

              	
                (5)

              	
                Discontinuance of Compensation
      Plan Participation: The Company fails to continue, or continue your
      participation in, any compensation plan in which you participated
      immediately before the Change in Control (or, with respect to Section
      3(b), the Potential Change in Control) that is material to your total
      compensation, unless an equitable substitute arrangement has been adopted
      or made available on a basis not materially less favorable to you than the
      plan in effect immediately before the Change in Control (or the Potential
      Change in Control, if applicable), both as to the benefits you receive and
      your level of participation relative to other
  participants.

              

      

       

      
        	
                 
      

              	
                (6)

              	
                Discontinuance of Benefits:
      The Company stops providing you with benefits that, in the
      aggregate, are substantially as valuable to you as those you enjoyed
      immediately before the Change in Control (or, with respect to Section
      3(b), the Potential Change in Control) under the Company’s pension,
      savings, deferred compensation, life insurance, medical, health,
      disability, accident, vacation, and fringe benefit plans, programs, and
      arrangements.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page 14
of 15

        

      

       

      
        	
                 
      

              	
                (7)

              	
                Improper Termination:
      You are purportedly terminated, other than pursuant to a notice of
      termination satisfying the requirements of Section
  5.

              

      

       

      
        	
                 
      

              	
                (8)

              	
                Notice of Prospective Action:
      You are officially notified or it is officially announced that the
      Company will take any of the actions listed above during the Term of this
      Agreement.

              

      

       

      However,
an event that is or would constitute Good Reason shall cease to be Good Reason
if: (a) you do not terminate employment within 180 days after the event occurs; (b) the Company
reverses the action or cures the default that constitutes Good Reason before you
terminate employment; or (c) you were a primary instigator of the Good Reason
event and the circumstances make it inappropriate for you to receive benefits
under this Agreement (e.g., you agree temporarily to relinquish your position on
the occurrence of a merger transaction you negotiate). If you have Good Reason
to terminate employment, you may do so even if you are on a leave of absence due
to physical or mental illness or any other reason.

       

      
        
          	 	
                  (m)

                	
                  Incentive
      Compensation

                

        

      

      "Incentive
Compensation" means the amount of cash and/or securities paid to you under all
bonus, incentive or other programs for performance adopted by Company for its
executive officers or other key employees.

       

      
        	
                 
      

              	
                (n)

              	
                Person

              

      

      "Person"
has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and
used in Section 13( d) of that Act, and shall include a "group," as defined in
Rule 13d-5 promulgated thereunder.  However, a Person shall not
include: (i) the Company or any of its subsidiaries; (ii) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
any of its subsidiaries; (iii) an underwriter temporarily holding securities
pursuant to an offering of such securities; or (iv) a corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company.

       

      
        	
                 
      

              	
                (o)

              	
                Potential Change in
      Control

              

      

      "Potential
Change in Control" means that any of the following has occurred during the term
of this Agreement, [excluding any event that is Management Action]:

       

      
        	
                 
      

              	
                (1)

              	
                Agreement Signed: The
      Company enters into an agreement that will result in a Change in
      Control.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Notice of Intent to Seek
      Change in Control: The Company or
      any Person publicly announces an intention to take or to consider taking
      actions that will result in a Change in
Control.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Board Declaration: With
      respect to this Agreement, the Board adopts a resolution declaring that a
      Potential Change in Control has
occurred.

              

      

       

      
        	
                 
      

              	
                (p)

              	
                Severance
      Benefits

              

      

      "Severance
Benefits" means your benefits under Section 13 of this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          Employment
Agreement

          Page 15
of 15

        

      

       

      
        	
                 
      

              	
                (q)

              	
                Term of this
      Agreement

              

      

      "Term of
this Agreement" means the period that commences on January 3, 2009 and ends on
the earlier of:

       

      
        	
                 
      

              	
                (1)

              	
                Expiration: January 2,
      2011; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Change in Control: The last day
      of the 24th calendar month beginning after the calendar month in which a
      Change in Control occurred during the Term of this
    Agreement.

              

      

       

       

      IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
above written.

       

       

       

       

       

      
        
          
            
              
                
                  
                    	
                             

                          	
                             

                          	/s/ Theodore
      M. Prociv	 
	 	 	Theodore
      M. Prociv	 
	 	 	President
      and CEO	 
	 	 	 	 
	 	 	 	 
	 	 	/s/
      Charles S. Cox

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