Document:

exv10w19a

Exhibit 10.19A

SUBLEASE

     THIS SUBLEASE (this “Sublease”) is dated for reference purposes as of October 1, 2010, and is
made by and between BigBand Networks, Inc., a Delaware corporation (“Sublessor”), and SimpliVT
Corporation, a Delaware corporation (“Sublessee”). Sublessor and Sublessee hereby agree as
follows:

     1. Recitals: This Sublease is made with reference to the fact that Gateway Sherwood,
Inc., as landlord (“Master Lessor”), and Sublessor, as tenant, entered into that certain lease,
dated as of August 25, 2006 (the “Master Lease”), with respect to premises consisting of
approximately 87,319 square feet of space, located at 8 Technology Drive, Westborough,
Massachusetts (the “Premises”). A copy of the Master Lease is attached hereto as Exhibit
A.

     2. Premises: Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases
from Sublessor, a portion of the Premises consisting of approximately 10,826 rentable square feet
of space located on the second floor of the Premises (hereinafter, the “Subleased Premises”). The
Subleased Premises are more particularly described on Exhibit B attached hereto.

     3. Term:

          A. Term. The term (the “Term”) of this Sublease shall be for the period commencing on
upon Sublessor’s completion of the work described in the second sentence of Paragraph 7 below,
which Sublessor shall use commercially reasonable efforts to cause to occur no later than October
15, 2010 (the “Commencement Date”) and ending on March 30, 2012 (the “Expiration Date”), unless
this Sublease is sooner terminated pursuant to its terms or the Master Lease is sooner terminated
pursuant to its terms. Sublessor shall use commercially reasonable efforts to complete such work
by September 15, 2010, subject to receipt of Master Lessor’s consent to such work and to this
Sublease.

          B. Early Possession. Sublessor shall permit Sublessee to enter the Subleased Premises
commencing upon execution of this Sublease solely for the purpose of preparing the Subleased
Premises for occupancy and not for the purpose of conducting business therein, provided (i) Master
Lessor’s consent to this Sublease has been received, (ii) Sublessee has delivered to Sublessor the
Security Deposit and first month’s Base Rent as required under Paragraph 4 and (iii) Sublessee has
delivered to Sublessor evidence of all insurance required under this Sublease. Such occupancy
shall be subject to all of the provisions of this Sublease, except for the obligation to pay Base
Rent and/or electricity and shall not advance the Expiration Date of this Sublease.

          C. No Option to Extend. The parties hereby acknowledge that the expiration date of
the Master Lease is March 31, 2012 and that Sublessee has no option to extend the Term of this
Sublease. For the avoidance of doubt, however, nothing in this Sublease shall at any time limit or
preclude Sublessee from entering into direct negotiations with Master Lessor with respect to
additional or different space in the Premises.

     4. Rent:

          A. Base Rent. Sublessee shall pay to Sublessor as base rent for the Subleased
Premises for each month during the Term the amount of Twelve Thousand One Hundred Seventy-Nine and
25/100 Dollars ($12,179.25) per month (“Base Rent”). Base Rent and Additional Rent, as defined in
Paragraph 4.B below, shall be paid on or before the first (1st) day of each month. Base Rent and Additional
Rent for any period during the Term hereof which is for less than one (1) month of the Term shall
be a pro rata portion of the monthly installment based on a thirty (30) day month. Base Rent and
Additional Rent shall be payable

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without notice or demand and without any deduction, offset, or
abatement, in lawful money of the United States of America. Base Rent and Additional Rent shall be
paid directly to Sublessor at 475 Broadway Street, Redwood City, CA 94063, Attention: Accounts
Receivable, or such other address as may be designated in writing by Sublessor. Notwithstanding
the foregoing, so long as Sublessee is not in default under this Sublease beyond applicable notice
and cure periods during such periods, Base Rent for the first thirty (30) days of the Term and the
month of March 2012 shall be abated.

          B. Additional Rent. In addition to Base Rent, Sublessee shall also pay for all
electricity used in the Subleased Premises, including the HVAC serving the Subleased Premises,
which electricity shall be separately metered. Sublessor shall send to Sublessee a written invoice
for electricity, which invoice shall be due within ten (10) days of the date such invoice is sent.
Sublessee shall also pay any cost or expense is incurred under the Master Lease as a result of
Sublessee’s negligence, willful misconduct, violation of this Sublease, request for certain
services or requirement of additional services. All amounts payable under this Sublease in
addition to Base Rent shall be deemed additional rent (“Additional Rent”). Base Rent and
Additional Rent hereinafter collectively shall be referred to as “Rent”. For the avoidance of
doubt, at no additional expense to Sublessee and without inclusion in “Rent” (except for the
electricity charges above and the HVAC charges below), Sublessee shall be permitted to use all of
the services provided by Master Lessor under Section 13.1 of the Master Lease (including utilities
and janitorial service), the restrooms in the common areas of the building in which the Premises
are located (the “Building”) and the storage closets within the Subleased Premises.

          C. Payment of First Month’s Rent. Upon execution hereof by Sublessee, Sublessee shall
pay to Sublessor the sum of Twelve Thousand One Hundred Seventy-Nine and 25/100 Dollars
($12,179.25), which shall constitute Base Rent for the first full calendar month of the Term for
which Base Rent is not abated.

     5. Security Deposit and Letter of Credit: Upon execution hereof by Sublessee,
Sublessee shall provide to Sublessor (a) a cash security deposit (the “Security Deposit”) in the
amount of Twenty-Four Thousand Three Hundred Fifty-Eight and 50/100 Dollars ($24,358.50) and (b) an
irrevocable letter of credit in the principal amount of Seventy-Three Thousand Seventy-Five and
50/100 Dollars ($73,075.50) substantially in the form attached hereto as Exhibit D (the “Letter of
Credit”), issued by [SIBLESEE’S BANK] (the “LC Bank”), as security for the performance by Sublessee
of the terms and conditions of this Sublease. Promptly following the timely payment of Base Rent
by Sublessee during each of the seventh (7th) through twelfth (12th) months of the Term
(provided no default under this Sublease has occurred), Sublessor shall take such reasonable
actions as determined by Sublessee to be necessary to cause the principal amount of the Letter of
Credit to be reduced by Twelve Thousand One Hundred Seventy-Nine and 25/100 Dollars ($12,179.25)
for such month, so that upon the payment of Base Rent for the twelfth (12th) month of
the Term (provided no default under this Sublease has occurred), the Letter of Credit shall be
released in its entirety by the LC Bank to Sublessee and Sublessee shall have no further obligation
to provide the Letter of Credit. Sublessor shall be entitled to draw upon the full amount of the
Letter of Credit upon any default by Sublessee and shall hold the proceeds to the Letter of Credit
that are not immediately applied to cure a default as a cash Security Deposit as provided in this
section. The Security Deposit shall be held in accordance with the terms of Section 5.1 of the
Master Lease, as incorporated herein.

     6. Holdover: The parties hereby acknowledge that the expiration date of the Master
Lease is March 31, 2012 and that it is therefore critical that Sublessee surrender the Subleased
Premises to Sublessor no later than the Expiration Date in accordance with the terms of this
Sublease. In the event that Sublessee does not surrender the Subleased Premises by the Expiration
Date in accordance with the terms of this
Sublease, Sublessee shall indemnify, defend, protect and hold harmless Sublessor from and
against all loss and liability resulting from Sublessee’s delay in surrendering the Subleased
Premises and pay Sublessor holdover rent in the amount set forth in Section 14 of the Master Lease.

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     7. Repairs: The parties acknowledge and agree that Sublessee is subleasing the
Subleased Premises on an “as is” basis, and that Sublessor has made no representations or
warranties with respect to the condition of the Subleased Premises except as set forth in this
paragraph. Prior to the Commencement Date, Sublessor shall, at Sublessor’s sole cost, (a) replace
the missing carpet in the Subleased Premises, (b) shampoo the remaining carpet in the Subleased
Premises, (c) repaint all of the walls in the Subleased Premises using at least two (2) colors to
be reasonably approved by Subtenant and (d) re-install a minimum of 400 amps of power to the lab
within the Subleased Premises. Except as set forth in this paragraph, Sublessor shall have no
obligation whatsoever to make or pay the cost of any alterations, improvements or repairs to the
Subleased Premises, including, without limitation, any improvement or repair required to comply
with any law; provided, however, Sublessor shall use commercially reasonable efforts (without
requiring Sublessor to initiate litigation) to (i) obtain the consent of Master Lessor under
Section 6.1 of the Master Lease with respect to the alterations set forth in subparts (a)-(d) of
this Paragraph 7, (ii) cause Master Lessor to perform its obligations under the Master Lease at
Sublessee’s written request, (iii) obtain the consent of Master Lessor for the installation by
Sublessee of the sinks and kitchenette contemplated by Section 12, and (iv) assist in the
engagement by Sublessee of the applicable contractors for purposes of completing such improvements
in (iii) above. Master Lessor shall be solely responsible for performance of any repairs required
to be performed by Master Lessor under the terms of the Master Lease. Sublessee shall be solely
responsible for all required maintenance and service on the HVAC unit serving the lab in the
Subleased Premises. In addition, in accordance with the provisions of the Master Lease, Sublessee
shall have the ability to operate the HVAC service to the Subleased Premises at any time outside
of normal hours of operation for the Building by (i) providing to Sublessor proper notice, and (ii)
paying the after hours HVAC charge of $50.00 per hour. For the avoidance of doubt, the last
sentence of Section 6.2 of the Master Lease shall not apply hereunder except and to the extent that
Sublessor is obligated to pay such amounts to Master Lessor.

     8. Assignment and Subletting. Sublessee may not assign this Sublease, sublet the
Subleased Premises, transfer any interest of Sublessee therein or permit any use of the Subleased
Premises by another party (collectively, “Transfer”), without the prior written consent of
Sublessor, which consent shall not be unreasonably withheld, conditioned or delayed, and Master
Lessor, and shall not have any right to Transfer less than all of the Subleased Premises. Any
Transfer shall be subject to the terms of Section 9 of the Master Lease.

     9. Use: Sublessee may use the Subleased Premises only for the use permitted under
Section 1.1 of the Master Lease. Sublessee shall not use, store, transport or dispose of any
Hazardous Material in or about the Subleased Premises other than cleaning and equipment supplies in
reasonable quantities for normal maintenance of equipment and cleaning of the Subleased Premises as
permitted in the second sentence of Section 1.2 of the Master Lease. Sublessee shall have the
right to use the existing network cabling presently in the Subleased Premises. Any additional
cabling needed in the Subleased Premises shall be Sublessee’s responsibility. Sublessee shall
comply with all reasonable rules and regulations promulgated from time to time by Master Lessor
provided that Sublessee receives written notice thereof. Sublessee may access the freight elevator
and loading dock within the Premises from time to time pursuant to mutually acceptable access terms
to be agreed upon between Sublessor and Sublessee.

     10. Effect of Conveyance: As used in this Sublease, the term “Sublessor” means the
holder of the tenant’s interest under the Master Lease. In the event of any assignment, transfer
or termination of the tenant’s interest under the Master Lease, which assignment, transfer or
termination may occur at any time during the Term hereof in Sublessor’s sole discretion, Sublessor
shall be and hereby is entirely relieved of all
covenants and obligations of Sublessor hereunder, provided that such transferee has assumed in
writing all covenants and obligations thereafter to be performed by Sublessor hereunder. Sublessor
may transfer and deliver any security of Sublessee to the transferee of the tenant’s interest under
the Master Lease, and thereupon Sublessor shall be discharged from any further liability with
respect thereto.

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     11. Delivery and Acceptance: If Sublessor fails to deliver possession of the
Subleased Premises to Sublessee on or before October 24, 2010 for any reason other than Sublessee’s
delay, then Sublessee shall have the right to terminate this Sublease by delivering to Sublessor
ten (10) business days written notice of such termination at any time prior to such delivery;
provided, however, Sublessor shall not be liable to Sublessee for any loss or damage arising from
such delay and termination. In the event that Sublessee elects not to terminate this Sublease,
Rent shall abate until Sublessor delivers possession of the Subleased Premises to Sublessee. By
taking possession of the Subleased Premises, Sublessee conclusively shall be deemed to have
accepted the Subleased Premises in their as-is, then-existing condition, without any warranty
whatsoever of Sublessor with respect thereto.

     12. Improvements: No alteration or improvements shall be made to the Subleased
Premises, except in accordance with the Master Lease, and with the prior written consent of both
Master Lessor and Sublessor. Notwithstanding the foregoing, subject to the prior written consent
of Master Lessor and Sublessor as to the specifications thereof, in accordance with the terms of
Section 6 of the Master Lease, as incorporated herein, and subject to the rights of Master Lessor
and Sublessor to require Sublessee to remove such improvements upon the termination of this
Sublease except as provided in Section 15 below, Sublessee may, at its sole expense, (a) install
two (2) operating sinks, (b) add additional cooling to the lab area within the Subleased Premises
to supplement the 15 tons of AC currently serving such lab, which cooling must be separately
metered to Sublessee, (c) operate the cooling in such lab area on a 24x7 basis, and (d) construct a
kitchenette in the Subleased Premises.

     13. Insurance: Sublessee shall obtain and keep in full force and effect, with respect
to the Subleased Premises, at Sublessee’s sole cost and expense, during the Term the insurance
required under Section 11 of the Master Lease. Sublessee shall name Master Lessor and Sublessor as
additional insureds under its liability insurance policy. The release and waiver of subrogation
set forth in Section 12 of the Master Lease, as incorporated herein, shall be binding on the
parties.

     14. Default; Remedies: Sublessee shall be in material default of its obligations
under this Sublease if Sublessee commits any act or omission which constitutes a default under the
Master Lease, which has not been cured after delivery of written notice and passage of the
applicable grace period provided in the Master Lease as modified, if at all, expressly by the
provisions of this Sublease. In the event of any default by Sublessee, Sublessor shall have all
remedies provided pursuant to Section 19 of the Master Lease and by applicable law. Sublessor may
resort to its remedies cumulatively or in the alternative.

     15. Surrender: Prior to expiration of this Sublease, Sublessee shall remove all of
its furniture (including the Furniture), equipment and trade fixtures and shall surrender the
Subleased Premises to Sublessor in vacant, broom clean, good condition, subject to reasonable wear
and tear, and otherwise in the condition required under the Master Lease. If the Subleased
Premises are not so surrendered, then Sublessee shall be liable to Sublessor for all actual, third
party out-of-pocket costs incurred by Sublessor in returning the Subleased Premises to the required
condition and such failure shall constitute a holdover as provided in Paragraph 6 above.
Notwithstanding the foregoing, however, Sublessee shall not be obligated to remove (i) the
additional cooling HVAC added to the lab area in accordance with Section 12(b), or (ii) the
kitchenette constructed in the Subleased Premises in accordance with Section 12(d), but Sublessee
shall otherwise return such portions of the Subleased Premises to Sublessor in vacant, broom clean,
good condition, subject to reasonable wear and tear, and otherwise in the condition required under
the Master Lease.

     16. Broker: Sublessor and Sublessee each represent to the other that they have dealt
with no real estate brokers, finders, agents or salesmen other than R.W. Holmes, representing
Sublessor, and T3 Advisors, representing Sublessee, in connection with this transaction. Each
party agrees to hold the other party harmless from and against all claims for brokerage
commissions, finder’s fees or other compensation made by any other agent, broker, salesman or
finder as a consequence of such party’s actions or dealings with such agent, broker, salesman, or
finder.

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     17. Notices: Unless at least five (5) days’ prior written notice is given in the
manner set forth in this paragraph setting forth a new notice address, the address of each party
for all purposes connected with this Sublease shall be that address set forth below its signature
at the end of this Sublease. All notices, demands or communications in connection with this
Sublease shall be (a) personally delivered; or (b) properly addressed and (i) submitted to an
overnight courier service, charges prepaid, or (ii) deposited in the mail (certified, return
receipt requested, and postage prepaid). Notices shall be deemed delivered upon receipt, if
personally delivered, one (1) business day after being submitted to an overnight courier service
and three (3) business days after mailing, if mailed as set forth above. All notices given to
Master Lessor under the Master Lease shall be considered received only when delivered in accordance
with the Master Lease.

     18. Other Sublease Terms:

     A. Incorporation by Reference. Except as set forth below, the terms and conditions of
this Sublease shall include all of the terms of the Master Lease and such terms are incorporated
into this Sublease as if fully set forth herein, except that: (i) each reference in such
incorporated sections to “Lease” shall be deemed a reference to “Sublease”; (ii) each reference to
the “Premises” shall be deemed a reference to the “Subleased Premises”; (iii) each reference to
“Landlord” and “Tenant” shall be deemed a reference to “Sublessor” and “Sublessee”, respectively,
except as otherwise expressly set forth herein; (iv) with respect to work, services, repairs,
restoration, insurance, indemnities, representations, warranties or the performance of any other
obligation of Master Lessor under the Master Lease, the sole obligation of Sublessor shall be to
request the same in writing from Master Lessor as and when requested to do so by Sublessee, and to
use Sublessor’s commercially reasonable efforts (without requiring Sublessor to initiate
litigation) to obtain Master Lessor’s performance; (v) with respect to any obligation of Sublessee
to be performed under this Sublease, wherever the Master Lease grants to Sublessor a specified
number of days to perform its obligations under the Master Lease, except as otherwise provided
herein, Sublessee shall have two (2) fewer days to perform the obligation, including, without
limitation, curing any defaults; (vi) with respect to any approval required to be obtained from the
“Landlord” under the Master Lease, such consent must be obtained from both Master Lessor and
Sublessor, and the approval of Sublessor may be withheld if Master Lessor’s consent is not
obtained; (vii) in any case where the “Landlord” reserves or is granted the right to manage,
supervise, control, repair, alter, regulate the use of, enter or use the Premises or any areas
beneath, above or adjacent thereto, perform any actions or cure any failures, such reservation or
right shall be deemed to be for the benefit of both Master Lessor and Sublessor; (viii) in any case
where “Tenant” is to indemnify, release or waive claims against “Landlord”, such indemnity, release
or waiver shall be deemed to run from Sublessee to both Master Lessor and Sublessor; (ix) in any
case where “Tenant” is to execute and deliver certain documents or notices to “Landlord”, such
obligation shall be deemed to run from Sublessee to both Master Lessor and Sublessor; (x) all
payments shall be made to Sublessor; (xi) Sublessee shall pay all consent and review fees set forth
in the Master Lease to both Master Lessor and Sublessor; and (xii) all “profit” under subleases and
assignments shall be paid to Sublessor.

     Notwithstanding the foregoing, (a) the following provisions of the Master Lease shall not be
incorporated herein: Reference Pages, Sections 1.3 (the reference to “306 parking spaces”), 1.4, 2,
3.1, 4, 5.2, 6.1 (the third sentence), 9.8, 13.1 (the 4th-9th sentences),
13.6, 14, 15 (the last two sentences), 19.3, 27, 28(a), (b) and (d), 38, 39 and 42 and Exhibits A
and B (and all references thereto); (b) references in the following provisions to “Landlord” shall
mean Master Lessor only: Sections 7.1 (the second and last references only),
13.1 (the first four and last two sentences), 13.2, 13.6, 16 (the last sentence) and 22 and
Exhibits D and E; and (c) references in the following provisions to “Landlord” shall mean Master
Lessor and Sublessor: Section 8, 9.5, 11, 13.3 and 28 (the references therein with respect to
subpart (c)).

     B. Assumption of Obligations. This Sublease is and at all times shall be subject and
subordinate to the Master Lease and the rights of Master Lessor thereunder. Sublessee hereby
expressly assumes and agrees, subject to the terms of Paragraph 18.A: (i) to comply with all
provisions of the Master Lease which are incorporated hereunder; and (ii) to perform all the
obligations on the part of the “Tenant” to

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be performed under the terms of the Master Lease during
the Term of this Sublease which are incorporated hereunder. In the event the Master Lease is
terminated for any reason whatsoever, this Sublease shall terminate simultaneously with such
termination. In the event of a conflict between the provisions of this Sublease and the Master
Lease, as between Sublessor and Sublessee, the provisions of this Sublease shall control. In the
event of a conflict between the express provisions of this Sublease and the provisions of the
Master Lease, as incorporated herein, the express provisions of this Sublease shall prevail.

     19. Conditions Precedent: This Sublease and Sublessor’s and Sublessee’s obligations
hereunder are conditioned upon the written consent of Master Lessor. If Sublessor fails to obtain
Master Lessor’s consent within thirty (30) days after execution of this Sublease by Sublessor, then
Sublessor or Sublessee may terminate this Sublease by giving the other party written notice
thereof, and Sublessor shall return to Sublessee its payment of the first month’s Rent paid by
Sublessee pursuant to Paragraph 4 hereof and the Security Deposit.

     20. Termination; Recapture: Notwithstanding anything to the contrary herein,
Sublessee acknowledges that, under the Master Lease, both Master Lessor and Sublessor have certain
termination and recapture rights, including, without limitation, in Sections 22 and 23. Nothing
herein shall prohibit Master Lessor or Sublessor from exercising any such rights and neither Master
Lessor nor Sublessor shall have any liability to Sublessee as a result thereof. In the event
Master Lessor or Sublessor exercise any such termination or recapture rights, this Sublease shall
terminate without any liability to Master Lessor or Sublessor. Notwithstanding the foregoing, if
Sublessor and Master Lessor enter into an agreement to voluntarily terminate the Master Lease for
reasons other than casualty, condemnation or default, Sublessor shall give Sublessee not less than
five (5) months prior written notice thereof and Sublessee shall not be required to pay Base Rent
during the last five (5) months of the Term.

     21. Inducement Recapture: Any agreement for free or abated rent or other charges, or
for the giving or paying by Sublessor to or for Sublessee of any cash or other bonus, inducement or
consideration for Sublessee’s entering into this Sublease, all of which concessions are hereinafter
referred to as “Inducement Provisions”, shall be deemed conditioned upon Sublessee’s full and
faithful performance of all of the terms, covenants and conditions of this Sublease. In the event
a default by Sublessee beyond applicable notice and cure periods occurs and is continuing, any such
Inducement Provision applicable during the period of such uncured default shall automatically be
deemed deleted from this Sublease and no further force or effect.

     22. Furniture, Fixtures and Equipment: On the Commencement Date, without payment of
any additional consideration by Sublessee, the office furnishings within the Subleased Premises
which are identified on Exhibit C attached hereto (the “Furniture”) shall become the
property of Sublessee. The Furniture is provided in its “AS IS, WHERE IS” condition, without
representation or warranty whatsoever. Sublessee shall insure the Furniture under the property
insurance policy required under the Master Lease, as incorporated herein, and pay all taxes with
respect to the Furniture. Sublessee shall maintain the Furniture in good condition and repair,
reasonable wear and tear excepted, and shall be responsible for any loss or damage to the same
occurring during the Term. Sublessee shall remove the Furniture upon the termination of this
Sublease as required under Paragraph 15 of this Sublease and the failure to do so shall be
considered a holdover as provided in Paragraph 6 above.

     23. Parking; Signage: Sublessee shall have its pro rata share of the parking spaces
allocated to the Premises under the Master Lease based on the ratio of the square footage of the
Subleased Premises to the square footage of the Premises. Subject to the prior written consent of
Sublessor, which consent shall not be unreasonably withheld, conditioned or delayed, and Master
Lessor, at Sublessee’s sole cost, Sublessee shall have the same signage rights as Sublessor under
the Master Lease.

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     IN WITNESS WHEREOF, the parties have executed this Sublease as of the day and year first above
written.

	 	 	 	 	 	 	 

	 
	SUBLESSOR:	 	SUBLESSEE:
	 	 	 	 	 	 	 
	BIGBAND NETWORKS, INC.,	 	SIMPLIVT CORPORATION,
	a Delaware corporation	 	a Delaware corporation
	 	 	 	 	 	 	 
	 
	By: 	 /s/ Rob Horton	 	By: 	 /s/ Doron Kempel
	 	Name: 	 Rob Horton	 	 	Name: 	 Doron Kempel
	 	Its: Senior Vice President & General Counsel	 	 	Its: Chief Executive Officer

	 	 	 	 	 	 	 

	Address:

	 	475 Broadway Street
	 	Address:
	 	c/o Gunderson Dettmer
	 

	 	Redwood City, CA 94063
	 	 	 	850 Winter Street
	 

	 	Attn: General Counsel
	 	 	 	Waltham, MA 02451

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CONSENT TO SUBLEASE

     Master Lessor hereby acknowledges receipt of a copy of this Sublease, and consents to the
terms and conditions of this Sublease. By this consent, Master Lessor shall not be deemed in any
way to have entered the Sublease or to have consented to any further assignment or sublease.

	 	 	 	 	 
	MASTER LESSOR:

GATEWAY SHERWOOD, INC.,

a California corporation

 	 
	By:  	 	 
	 	Its: 	 	 
	 	Dated: 	 	 
	 

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EXHIBIT A

MASTER LEASE

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EXHIBIT B

SUBLEASED PREMISES

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EXHIBIT C

FURNITURE

     1 Executive Board Set of Furniture

     16 Ft Conf Table-Credenza- 18 Rolling Chairs

     27 Work Stations

     10 Ceiling High Office Set Ups

     60 Rolling Chairs

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EXHIBIT D

FORM OF LETTER OF CREDIT

STANDBY LETTER OF CREDIT DRAFT

IRREVOCABLE STANDBY LETTER OF CREDIT NO. ______

DATE: ________, 2010

BENEFICIARY:

BIGBAND NETWORKS, INC.

475 BROADWAY STREET

REDWOOD CITY, CA 94063

ATTN: GENERAL COUNSEL

APPLICANT:

SIMPLIVT CORPORATION

__________________

__________________

AMOUNT: US$73,075.50 (SEVENTY-THREE THOUSAND SEVENTY-FIVE AND 50/100 DOLLARS U.S. DOLLARS)

EXPIRATION DATE: OCTOBER 31, 2011

LOCATION: AT OUR COUNTERS IN ____________

DEAR SIR/MADAM:

     WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. ______ IN YOUR FAVOR
AVAILABLE BY YOUR DRAFTS DRAWN ON US AT SIGHT IN THE FORM OF EXHIBIT “B” ATTACHED AND ACCOMPANIED
BY THE FOLLOWING DOCUMENTS:

     1. THE ORIGINAL OR COPY OF THIS LETTER OF CREDIT AND ALL AMENDMENT(S), IF ANY.

     2. A DATED CERTIFICATION FROM THE BENEFICIARY SIGNED BY AN AUTHORIZED OFFICER, FOLLOWED BY ITS
DESIGNATED TITLE, STATING THE FOLLOWING:

“THE AMOUNT REPRESENTS FUNDS DUE AND OWING TO US AS A RESULT OF THE APPLICANT’S FAILURE TO COMPLY
WITH ONE OR MORE OF THE TERMS OF THAT CERTAIN SUBLEASE BY AND BETWEEN (INSERT BENEFICIARY’S
NAME), AS SUBLANDLORD, AND SIMPLIVT CORPORATION, AS SUBTENANT”

     PARTIAL DRAWS ARE ALLOWED. A COPY OF THIS LETTER OF CREDIT MUST ACCOMPANY ANY DRAWINGS
HEREUNDER FOR ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO THE BENEFICIARY UNLESS IT
IS FULLY UTILIZED.

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     DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER AND DATE OF THIS LETTER OF CREDIT.

     THIS LETTER OF CREDIT MAY ONLY BE TRANSFERRED IN ITS ENTIRETY BY THE ISSUING BANK UPON OUR
RECEIPT OF THE ATTACHED “EXHIBIT A” DULY COMPLETED AND EXECUTED BY THE BENEFICIARY AND ACCOMPANIED
BY THE ORIGINAL LETTER OF CREDIT AND ALL AMENDMENTS, IF ANY, WITH THE PAYMENT OF OUR TRANSFER FEE
OF USD250.00.

     DOCUMENTS MAY BE PRESENTED IN PERSON OR FORWARDED TO US BY OVERNIGHT DELIVERY SERVICE TO:
______________________, ATTN: ____________.

     WE HEREBY AGREE WITH YOU THAT THE DRAFTS DRAWN UNDER AND IN ACCORDANCE WITH THE TERMS AND
CONDITIONS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED UPON PRESENTATION TO THE DRAWEE, IF
NEGOTIATED ON OR BEFORE THE EXPIRATION DATE OF THIS CREDIT.

     THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS
(1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 500.

	 	 	 

	 

	 	 
	AUTHORIZED SIGNATURE

	 	AUTHORIZED SIGNATURE

-2-

 

EXHIBIT “A”

DATE:

	 	 	 

	TO:                                         

	 	RE: STANDBY LETTER OF CREDIT
	ATTN:                                         

	 	NO.           ISSUED BY
	 
	 	 
	 

	 	 
	 

	 	L/C AMOUNT:

GENTLEMEN:

     FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

     (NAME OF TRANSFEREE)

     (ADDRESS)

     ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT UP TO ITS
AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS TRANSFER.

     BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE
TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS AS BENEFICIARY THEREOF,
INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS, WHETHER INCREASES OR EXTENSIONS OR OTHER
AMENDMENTS, AND WHETHER NOW EXISTING OR HEREAFTER MADE. ALL AMENDMENTS ARE TO BE ADVISED DIRECT TO
THE TRANSFEREE WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

     THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO ENDORSE THE
TRANSFER ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE TRANSFEREE WITH YOUR CUSTOMARY
NOTICE OF TRANSFER.

	 	 	 	 	 
	 	SINCERELY,

 	 
	 	
 	 
	 	(BENEFICIARY’S NAME) 	 
	 	 	 
	 	
 	 
	 	SIGNATURE OF BENEFICIARY 	 
	 	 	 
	 	
 	 
	 	SIGNATURE AUTHENTICATED 	 
	 	 	 
	 	
 	 
	 	(NAME OF BANK) 	 
	 	 	 
	 	
 	 
	 	AUTHORIZED SIGNATURE 	 
	 	 	 
	 

 

 

EXHIBIT “B”

	 	 	 	 	 	 	 

	DATE:

	 	 	 	REF. NO.	 	 
	 

	 	 
	 	 	 	 

AT SIGHT OF THIS DRAFT

	 	 	 	 	 	 	 

	PAY TO THE ORDER OF

	 	 	 	US $	 	 
	 

	 	 
	 	 	 	 

	 	 	 

	USDOLLARS
	 	 
	 

	 	 
	 
	 	 
	 

DRAWN UNDER            
                      
                      
                      
   , STANDBY

	 	 	 	 	 	 	 

	LETTER OF CREDIT NUMBER NO.

	 	 	 	DATED	 	 
	 

	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	TO:

	 	                                                            

                                                            
	 	 	 	 

(BENEFICIARY’S NAME)
	 	 
	 

	 	                                                            	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Authorized Signature
	 	 

GUIDELINES TO PREPARE THE DRAFT

     1. DATE: ISSUANCE DATE OF DRAFT.

     2. REF. NO.: BENEFICIARY’S REFERENCE NUMBER, IF ANY.

     3. PAY TO THE ORDER OF: NAME OF BENEFICIARY AS INDICATED IN THE L/C (MAKE SURE BENEFICIARY
ENDORSES IT ON THE REVERSE SIDE).

     4. US$: AMOUNT OF DRAWING IN FIGURES.

     5. USDOLLARS: AMOUNT OF DRAWING IN WORDS.

     6. LETTER OF CREDIT NUMBER: _______________ STANDBY L/C NUMBER THAT PERTAINS TO THE DRAWING.

     7. DATED: ISSUANCE DATE OF THE STANDBY L/C.

     8. BENEFICIARY’S NAME: NAME OF BENEFICIARY AS INDICATED IN THE L/C.

     9. AUTHORIZED SIGNATURE: SIGNED BY AN AUTHORIZED SIGNER OF BENEFICIARY.

     IF YOU NEED FURTHER ASSISTANCE IN COMPLETING THIS DRAFT, PLEASE CALL OUR L/C PAYMENT SECTION
AND ASK FOR:

     ______________________

-4-Exhibit 10.1

EXHIBIT 10.1

CHANGE IN CONTROL

SEVERANCE AGREEMENT

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. Purpose
	 	 	1	 
	2. Your Agreement
	 	 	1	 
	3. Events That Trigger Severance Benefits
	 	 	1	 
	a. Termination After a Change in Control
	 	 	1	 
	b. Termination After a Potential Change in Control
	 	 	1	 
	c. Successor Fails to Assume This Agreement
	 	 	1	 
	4. Events That Do Not Trigger Severance Benefits
	 	 	2	 
	5. Termination Procedures
	 	 	2	 
	6. Severance Benefits
	 	 	2	 
	a. In General
	 	 	2	 
	b. Lump-Sum Payment in Lieu of Future Compensation
	 	 	2	 
	c. Incentive Compensation and Options
	 	 	2	 
	d. Group Insurance Benefit Continuation
	 	 	3	 
	e. Group Benefit Continuation
	 	 	3	 
	f. Officer Benefits
	 	 	3	 
	g. Medical Benefits
	 	 	3	 
	7. Time for Payment
	 	 	3	 
	8. Payment Explanation
	 	 	4	 
	9. Potential Limitations
	 	 	4	 
	a. Golden Parachute Limitation
	 	 	4	 
	b. Section 162(m) Limitation
	 	 	4	 
	10. Disability
	 	 	4	 
	11. Effect of Reemployment
	 	 	5	 
	12. Successors
	 	 	5	 
	a. Assumption Required
	 	 	5	 
	b. Heirs and Assigns
	 	 	5	 
	13. Amendments
	 	 	5	 
	14. Governing Law
	 	 	5	 
	15. Claims
	 	 	5	 
	a. When Required; Attorneys’ Fees
	 	 	5	 
	b. Initial Claim
	 	 	5	 
	c. Claim Decision
	 	 	6	 
	d. Appeal of Denied Claims
	 	 	6	 
	e. Appeal Decision
	 	 	6	 
	f. Procedures
	 	 	6	 
	g. Arbitration
	 	 	7	 
	16. Limitation on Employee Rights
	 	 	7	 
	17. Validity
	 	 	7	 
	18. Counterparts
	 	 	7	 
	19. Giving Notice
	 	 	7	 
	a. To the Company
	 	 	7	 
	b. To You
	 	 	7	 

 

- i -

 

	 	 	 	 	 
	20. Definitions
	 	 	8	 
	a. Agreement
	 	 	8	 
	b. Beneficial Owner
	 	 	8	 
	c. Board
	 	 	8	 
	d. Cause
	 	 	8	 
	e. Change in Control
	 	 	8	 
	(1) Acquisition of Controlling Interest
	 	 	8	 
	(2) Change in Board Control
	 	 	8	 
	(3) Merger Approved
	 	 	9	 
	(4) Sale of Assets
	 	 	9	 
	(5) Liquidation or Dissolution
	 	 	9	 
	(6) Private Transaction
	 	 	9	 
	f. Code
	 	 	9	 
	g. Company
	 	 	9	 
	h. Disability
	 	 	9	 
	i. Exchange Act
	 	 	9	 
	j. Good Reason
	 	 	10	 
	(1) Demotion
	 	 	10	 
	(2) Pay Cut
	 	 	10	 
	(3) Relocation
	 	 	10	 
	(4) Breach of Contract
	 	 	10	 
	(5) Improper Termination
	 	 	10	 
	k. Incentive Compensation
	 	 	10	 
	l. Management Action
	 	 	11	 
	m. Person
	 	 	11	 
	n. Potential Change in Control
	 	 	11	 
	(1) Agreement Signed
	 	 	11	 
	(2) Notice of Intent to Seek Change in Control
	 	 	11	 
	(3) Board Declaration
	 	 	11	 
	o. Separation from Service
	 	 	11	 
	p. Severance Benefits
	 	 	11	 
	q. Term of this Agreement
	 	 	11	 
	(2) Change in Control
	 	 	12	 
	21. Section 409A
	 	 	12	 

 

- ii -

 

CHANGE IN CONTROL

SEVERANCE AGREEMENT

This Agreement between Anthony L. Otten (“you”) and VERSAR, INC.(“Company”) has been entered into
as of May 24, 2010. This Agreement promises you severance benefits if, following a Change of
Control, you are terminated without Cause or resign for Good Reason during the Term of this
Agreement. Capitalized terms are defined in the last section of this Agreement.

1. Purpose

The Company considers a sound and vital management team to be essential. 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 Board has
determined that appropriate steps should be taken to minimize the distraction certain
executives may suffer from the possibility of a Change in Control. One step is to enter into
this Agreement with you while you hold the position as Chief Executive Officer. Once you no
longer hold this position, except following or in connection with the triggering of
severance benefits as set forth in Section 3 below, this Severance Agreement shall
immediately terminate and be null and void as set forth in Section 20q hereof.

2. Your Agreement

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.

3. Events That Trigger Severance Benefits

	 	a.	 	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.

	 	b.	 	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.

	 	c.	 	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 12(a).

 

- 1 -

 

4. 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 on account of Disability or because you resign without Good Reason,
retire, or die. Except as provided in Section 3(c), 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.

5. 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.

6. Severance Benefits

	 	a.	 	In General

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

	 	b.	 	Lump-Sum Payment in Lieu of Future Compensation

In lieu of any further cash compensation for periods after your employment ends,
other than cash compensation paid pursuant to any agreement governing the terms of a
Change in Control payable to all similarly situated persons, you will be paid a cash
lump sum equal to 2 times your annual 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 3(b)hereof).

	 	c.	 	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.

 

- 2 -

 

	 	d.	 	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. The Company subsidized health
and dental insurance coverage shall be treated as satisfying the Company’s COBRA
obligations. After this subsidized coverage ends, you, your spouse and dependents
may continue any remaining COBRA coverage at your sole cost and expense.

	 	e.	 	Group 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 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 and 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).

	 	f.	 	Officer Benefits

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

	 	g.	 	Medical Benefits

The Company 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 for purposes of this benefit 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.

7. Time for Payment

Subject to the provisions of Section 21 hereof, 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)). In no
event will any cash Severance Benefits be paid to you later than March 15 of the calendar
year following the calendar year in which you become entitled to such Severance Benefits.

 

- 3 -

 

8. 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 9, 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.

9. Potential Limitations

	 	a.	 	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, the Company shall
reduce your benefits that are not considered deferred compensation subject to Code
Section 409A before it reduces any benefits that are considered deferred
compensation subject to Code Section 409A. 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.

	 	b.	 	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).

10. 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 as described in Section 20(h) hereof 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 on account of your
Disability.

 

- 4 -

 

11. Effect of Reemployment

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

12. Successors

	 	a.	 	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.

	 	b.	 	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.

13. Amendments

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

14. 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.

15. Claims

	 	a.	 	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.

	 	b.	 	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.

 

- 5 -

 

	 	c.	 	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.

	 	d.	 	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 five 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.

	 	e.	 	Appeal Decision

The decision by the appeals official will be made within 60 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 ten 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.

	 	f.	 	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.

 

- 6 -

 

	 	g.	 	Arbitration

In the event that any dispute arises, following satisfaction of the claim procedures
outlined in this Section 15, related to the validity, interpretation, enforcement or
performance of this Agreement, the dispute shall be submitted to binding arbitration
in accordance with the Employment Rules of the American Arbitration Association.
The aggrieved party must give written notice of any claim to the other party no
later than the expiration of the statute of limitations (deadline for filing) that
the law prescribes for the claim. Otherwise, the claim shall be void and deemed
waived. The arbitrator may award any remedy that would otherwise be available to a
court of competent jurisdiction. The decision of the arbitrator shall be final and
binding and shall be fully enforceable in any court having jurisdiction and venue
over the parties. The arbitrator shall have no power to alter, modify, ignore, or
otherwise deviate from the express terms of this Agreement, and the arbitrator shall
be bound by controlling law. The arbitrator’s decision shall be provided to the
parties in writing and shall succinctly set forth the arbitrator’s findings of fact,
conclusions of law, and remedy, if any. The cost of such arbitration shall be paid
by the Company, except you shall pay an administrative fee equivalent to the filing
fee to initiate a similar claim in the local court of general jurisdiction if you
are the party initiating the claim. The parties hereto agree that any action to
compel arbitration pursuant to this Agreement may be brought in the appropriate
Virginia state court, and in connection with such action to compel, the laws of
Virginia shall control. Application may also be made to such court for confirmation
of any decision or award of the arbitrator, for an order of enforcement and for any
other remedies which may be necessary to effectuate such decision or award. The
parties hereto hereby consent to the jurisdiction of the arbitrator and of such
court and waive any objection to the jurisdiction of such arbitrator and court.

16. Limitation on Employee Rights

This Agreement does not give you the right to be retained in the service of the Company.

17. 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.

18. 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.

19. Giving Notice

	 	a.	 	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.

	 	b.	 	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.

 

- 7 -

 

20. Definitions

	 	a.	 	Agreement

“Agreement” means this contract, as amended.

	 	b.	 	Beneficial Owner

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

	 	c.	 	Board

“Board” means the Board of Directors of the Company.

	 	d.	 	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.

	 	e.	 	Change in Control

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

	 	(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;
provided that any individual whose initial assumption of office occurs as a
result of an actual or threatened election contest (as the term is used in Rule
14a-11 of Regulation 14A issued under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board shall not be considered an “approved replacement”.

 

- 8 -

 

	 	(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)	 	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 of transactions.

	 	f.	 	Code

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

	 	g.	 	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.

	 	h.	 	Disability

“Disability” means that, due to physical or mental illness which is determined to be
total and permanent by a physician selected by the Company or its insurer and
acceptable to you or your legal representative: (i) you have been absent on a
full-time basis from your duties with the Company for 180 consecutive business days;
(ii) the Company has notified you more than 30 days prior to your intended
termination date 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.
Following the expiration of the 30 day period specified above, unless you have
resumed full- time performance of your duties, your employment with the Company
shall terminate immediately.

	 	i.	 	Exchange Act

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

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	 	j.	 	Good Reason

“Good Reason” means the occurrence of any of the following events arising without
your consent:

	 	(1)	 	Demotion

Your duties and responsibilities are materially 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), or there is a material and adverse
change in your reporting responsibilities or in the size of the budget you
administer in effect immediately before the Change in Control (or, with respect
to Section 3(b), the Potential Change in Control), provided that no demotion
will be deemed to occur solely 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 materially reduced.

	 	(3)	 	Relocation

Your principal office is materially relocated, which increases your one-way
commute to work by more than 50 miles, based on your residence when the transfer
was announced.

	 	(4)	 	Breach of Contract

The Company materially breaches this Agreement, your employment agreement or any
other agreement between you and the Company pursuant to which you perform
services for the Company or compensation and benefits are provided to you.

	 	(5)	 	Improper Termination

The Company terminates your employment, other than pursuant to a notice of
termination satisfying the requirements of Section 5 hereof.

However, an event that is or would constitute Good Reason shall cease to be Good Reason if:
(a) you fail to provide written notice to the Company within 90 days following the initial
existence of the event described in paragraphs (1) through (4) above; (b) the Company
reverses or otherwise cures the event within 30 days of receiving such notice; (c) you do
not terminate employment within 180 days after the event occurs; or (d) 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.

	 	k.	 	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 the Company
for its executive officers and other key employees.

 

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	 	l.	 	Management Action

“Management Action” means any event, circumstance, or transaction occurring during
the six-month period following a Potential Change in Control that results from the
action of a Management Group.

	 	m.	 	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.

	 	n.	 	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.

	 	o.	 	Separation from Service

“Separation from Service” shall have the meaning set forth in Treas. Reg. §
1.409A-1(h).

	 	p.	 	Severance Benefits

“Severance Benefits” means your benefits under Section 6 of this Agreement.

	 	q.	 	Term of this Agreement

“Term of this Agreement” means the period that commences on the date of this
Agreement and ends on the

	 	(1)	 	earlier of:

	 	a.	 	May 23, 2012; or

	 	b.	 	Your ceasing to serve in the position of Chief
Executive Officer prior to the occurrence of a Potential Change in
Control or Change in Control; or

 

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	 	(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. After a
Change in Control occurs, the end of the Term of this Agreement shall solely be
determined under this Section 20 (q)(2).

21. Section 409A

	 	a.	 	Notwithstanding anything in this Agreement to the contrary, if any amounts that
become due under this Agreement on account of your termination of employment constitute
“nonqualified deferred compensation” within the meaning of Code Section 409A, payment
of such amounts shall not commence until you incur a Separation from Service.

	 	b.	 	Notwithstanding any provision to the contrary in this Agreement (other than
Section 21(c) below) no payments to which you become entitled under this Agreement
shall be made or paid to you prior to the earlier of (1) the expiration of the
six-month period measured from the date of your Separation from Service with the
Company or (2) the date of your death, if you are deemed at the time of the Separation
from Service a “specified employee” within the meaning of Code Section 409A, and such
delayed commencement is otherwise required in order to avoid a prohibited distribution
under Code Section 409A(a)(2). Upon expiration of the applicable deferral period, all
payments deferred pursuant to this Section 21(b) shall be paid to you in a lump sum,
and any remaining payments due under this Agreement shall be paid in accordance with
the remaining payment dates specified herein.

	 	c.	 	The six-month holdback set forth in Section 21(b) above shall not be applicable
to any cash Severance Benefits under Section 6 that are paid to you by March 15 of the
calendar year following the calendar year in which you become entitled to Severance
Benefits.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as if the date set forth above.

	 	 	 	 	 
	Date June 29, 2010

	 	By: Versar, Inc.	 	 
	 
	 	 	 	 
	 

	 	/s/ Paul J. Hoeper
 

Chairman of the Board
	 	 
	 
	 	 	 	 
	Date July 2, 2010

	 	/s/ Anthony L. Otten
 

Anthony L. Otten
	 	 

Company notices to you shall be addressed as follows (or in any other manner you notify the Company
to use):

4821 Woodway Lane, N.W.

Washington, DC 20016

 

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