Document:

exv4w5

 

Exhibit 4.5

FORM OF
NOTE-SPECIMEN

     THIS SECURITY IS A GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED,
AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN
OR PURSUANT OT THE INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC” OR THE “DEPOSITARY”), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE THEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

INDEPENDENCE COMMUNITY BANK CORP.

4.90% Senior Note due September 23, 2010

	 	 	 	 	 	 	 
	Registered No. 1

	 	CUSIP:
	 	 

	 

	 	 	 	$	250,000,000

     Independence Community Bank Corp., a corporation duly organized and existing under the laws of
Delaware (herein called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of TWO HUNDRED AND FIFTY MILLION DOLLARS ($250,000,000) on September 23,
2010, and to pay interest thereon from September 23, 2005 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on March 23 and September
23 in each year, commencing March 23, 2006, at the rate of 4.90% per annum, until the principal
hereof is paid or made available for payment. Interest shall be calculated on the basis of a
360-day year consisting of twelve 30-day months. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the March 8 or
September 8 (whether or not a Business Day), as the case may be, next preceding such Interest
Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease
to be payable to the Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.

     In the event an Interest Payment Date or Maturity date is not a Business Day, the Company will
pay interest on the next day that is a Business Day, with the same force and effect as if made on
the Interest Payment Date and without any interest or other payment with respect to the delay.

 

 

     Payment of the principal of interest on this Security will be made at the office or agency of
the Company maintained for that purpose in The City of New York, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the option of the Company payment of interest may be made
by check mailed to the address of the Person entitled thereto as such address shall appear in the
Security Register or by wire transfer to an account designated by such person pursuant to an
arrangement that is satisfactory to the Trustee and the Company; and, provided, further, that,
notwithstanding the foregoing, so long as this Security is a global security registered in name of
a depositary, payments of the principal of and interest on this Security shall be made by wire
transfer of immediately available funds.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

     In Witness Whereof, the Company has caused this instrument to be duly executed under
its corporate seal.

	 	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Alan H. Fishman
	 

	 	 	 	Title: President and Chief Executive Officer
	Attest:
	 	 	 	 
	 
	 	 	 	 
	 
	 

Name: John K. Schnock

	 	 	 	 
	Title: Senior Vice President, Secretary and Counsel
	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated herein and issued pursuant to the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	Dated:	 	 	 	JPMorgan Chase Bank, N.A.
	 

	 	 	 	 	 	 
	 	 	 	 	as Trustee
	 
	 	 	 	 	 	 
	 

	 	 	 	By	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Authorized Officer

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REVERSE OF SECURITY

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
September 23, 2005 (herein called the “Indenture”), between the Company and JPMorgan Chase Bank,
N.A., as Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, initially limited in aggregate principal amount to $250,000,000. By
the terms of the Indenture, additional Securities of this series and of other separate series,
which may vary as to date, amount, Stated Maturity, interest rate or method of calculating the
interest rate and in other respects as therein provided, may be issued from time to time.

     The Securities of this series are not subject to redemption prior to the Stated Maturity of
the principal thereof.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may (subject to the conditions set forth
in the Indenture) be declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in aggregate principal amount
of the Securities at the time Outstanding of each series to be affected and, for certain purposes,
without the consent of the Holders of any Securities at the time Outstanding. The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon
all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his or her attorney duly authorized in
writing, and thereupon one or more new Securities of this series and of like tenor of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and any amount in excess thereof which is an integral multiple of $1,000.
As provided in the Indenture and subject to certain limitations therein set forth, Securities of
this series are exchangeable for a like aggregate principal amount of Securities of this series and
of like tenor of a different authorized denomination, as requested by the Holder surrendering the
same.

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     The global Securities of this series will be exchangeable for definitive certificated
Securities of this series if (i) the depositary for such global Securities notifies the Company
that it is unwilling or unable to continue as depositary for such global Securities or at any time
such depositary ceases to be a clearing agency registered as such
under the Securities Exchange Act of 1934, as amended (or any successor thereto), if so
required by applicable law or regulation, (ii) the Company, in its sole discretion determines that
the global Securities of this series shall be exchangeable for definitive certificated Securities
of this series and executes and delivers to the Trustee a Company Order to the effect that such
global Securities shall be so exchangeable, or (iii) an event of Default has occurred and is
continuing with respect to the Securities of this Series. If any global Security of this series is
exchangeable pursuant to the preceding sentence, it shall be exchanged, without charge, for
definitive certificated Securities of this series issued in authorized denominations and registered
in such names as the depositary shall direct, and the Company will deliver to the Trustee
definitive certificated Securities of this series.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company and the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered in the Security Register as the owner hereof for all purposes, whether or
not this Security be overdue, and neither the Company, the Trustee, nor any such agent shall be
affected by notice to the contrary.

     The Securities shall be governed by and construed in accordance with the laws of the State of
New York.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

4exv10w114

 

Exhibit 10.114

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is made and entered into this 8th day of February
2005, by and between Versar, Inc., a Delaware corporation (“Company”), its successors and assigns,
and Theodore M. Prociv (“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 Board 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 President and Chief Executive Officer of the Company. Under the direction of
the Board of Directors, 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. Your principal office will be located in
Springfield, Virginia.

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 Board of
Directors, payable in regular bi-weekly installments (the “Base Salary”). The Base Salary
will be reviewed annually by the Board of Directors in accordance with standard salary
review procedures in effect from time to time for executive 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 $285,000, 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

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	 	 	 	programs as may be in effect from time to time for executive officers of Company
generally (“Incentive Compensation”).
	 
	 	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 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 December 1, 2004, and shall continue for a period of
two (2) years. 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.

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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

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	 	 	 	Control; or (ii) the event constituting Good Reason occurs at the direction of such
Person.
	 
	 	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

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	 	 	 	immediately vest and remain exercisable for the longest period of time permitted under
the applicable stock option plan.
	 
	 	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
24th calendar month beginning thereafter, the Company shall provide, at no cost to you or
your spouse or dependents, the life, disability, accident, and 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.

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)).

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

32

 

	 	 	 	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.

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.

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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.
	 
	 	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

34

 

	 	 	 	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.
	 
	 	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

35

 

	 	 	 	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.
	 
	 	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.

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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.

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

37

 

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:

	 	(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

38

 

	 	 	 	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.

     (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.

39

 

	 	(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.
	 
	 	(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.

40

 

     (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 6 of this Agreement.

     (q) Term of this Agreement

“Term of this Agreement” means the period that commences on December 1, 2004 and ends on the
earlier of:

	 	(1)	 	Expiration: November 30, 2006; 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	 	 

41

 

	 	 	 	 	 
	 

	 	/S/ Amir A. Metry	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Amir A. Metry	 	 
	 
	 	 	 	 
	 	 	Compensation Committee Chairman

42

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