Document:

exv10w4

Exhibit 10.4

EMPLOYMENT AGREEMENT

          AGREEMENT made effective as of the 1st day of September, 2009, by and between MISTRAS GROUP
INC., a Delaware corporation (the “Company”) and SOTIRIOS J. VAHAVIOLOS (“Mr. Vahaviolos”).

RECITALS:

          WHEREAS, Mr. Vahaviolos is currently employed by the Company as the Chairman of its Board of
Directors (the “Board”) and its Chief Executive Officer; and

          WHEREAS, the parties now desire to provide for the continuing employment of Mr. Vahaviolos by
the Company upon the terms and conditions of this Agreement.

          NOW, THEREFORE, the parties agree as follows:

     1. Employment. The Company shall employ Mr. Vahaviolos and Mr. Vahaviolos shall be
employed by the Company upon the terms and conditions set forth in this Agreement.

     1.1 Term. The term of this Agreement (the “Term”) will begin September 1, 2009 and
continue through August 31, 2011. Thereafter, the Term will automatically renew for successive
one-year periods unless either party gives notice of non-renewal to the other at least 90 days
before the end of the initial term or then current renewal term, as the case may be.

     1.2 Position and Duties. Mr. Vahaviolos shall serve as Executive Chairman of the Board
and as the Chief Executive Officer of the Company, and will have the authority, duties and
responsibilities customarily associated with such titles and positions, and such additional rights,
powers, authority, functions, duties and responsibilities commensurate with such positions as the
Board may assign to him from time to time. Mr. Vahaviolos will report directly to and be subject to
the control and direction of the Board, consistent with his positions and applicable law. At the
request of the Board, Mr. Vahaviolos shall serve as an officer and director of the Company’s
subsidiaries and other affiliates without additional compensation.

     1.3 Full Time. Mr. Vahaviolos shall devote all of his business time, attention,
knowledge and skills faithfully and to the best of his ability to the performance of the duties and
responsibilities of his employment under this Agreement. It is understood that Mr. Vahaviolos may
desire to serve as a member of or advisor to the board of directors or other governing body of one
or more other corporations or business entities. Mr. Vahaviolos will be permitted to do so, subject
to the prior written consent of the Board or the Compensation Committee of the Board (the
“Compensation Committee”), which consent will not be unreasonably withheld. Mr. Vahaviolos may
engage in

 - 1 - 

 

personal, charitable and passive investment activities, so long as such other activities
do not conflict or interfere with his obligations to, or his ability to perform the duties and
responsibilities of his employment with, the Company.

     1.4 Company Policies. Mr. Vahaviolos will observe and adhere to all applicable written
Company policies and procedures in effect from time to time, including, without limitation,
policies on business ethics and conduct, and policies on the use of inside information and insider
trading.

     2. Compensation.

     2.1 Base Salary. During the Term, the Company will pay a base salary (“Base Salary”)
to Mr. Vahaviolos at an initial annual rate of $345,000, in accordance with its regular payroll
practices. The Board and/or the Compensation Committee will review Mr. Vahaviolos’s Base Salary at
least annually. The Board or the Compensation Committee, acting in its discretion, may increase
(but may not decrease) Mr. Vahaviolos’s Base Salary in effect at any time during the Term.

     2.2 Short Term Incentive Awards. Mr. Vahaviolos will be eligible for an annual short
term incentive award under the Company’s short term or other annual incentive plan applicable to
senior executives generally, with an annual target incentive opportunity equal to 75% of Mr.
Vahaviolos’s Base Salary (with actual bonus ranging from 0 to 150% of Base Salary, depending upon
the extent to which the performance target is or is not attained). The performance criteria for the
Company’s annual incentive awards for any year will be established and communicated by the Company
before or as soon as practicable after the beginning of the year. The short term incentive award,
if any, earned by Mr. Vahaviolos for any year will be payable consistent with the payment of annual
incentive compensation to senior executives generally.

     2.3 Long Term Incentive Award. The Company will issue to Mr. Vahaviolos a one-time
stock option award covering
150,000 shares of Company common stock at an exercise price
per share of $175.00, which award will become vested in four equal annual increments
beginning on the first anniversary of the date hereof, subject to Mr. Vahaviolos’s continuing
employment or other service with the Company through the applicable vesting date.

     3. Benefits and Expenses.

     3.1 General. Mr. Vahaviolos will be entitled to participate in such qualified and
nonqualified employee pension plans, stock option or other equity or long term incentive
compensation plans, group health, long term disability and group life insurance plans,

 - 2 - 

 

and any
other welfare and fringe benefit plans, arrangements, programs and perquisites sponsored or
maintained by the Company from time to time for the benefit of any other
employee of the Company. Mr. Vahaviolos shall be entitled to four weeks’ annual vacation, to
be taken in accordance with the vacation policy of the Company applicable to its senior management
generally.

     3.2 Specific Items. Unless the Board determines otherwise, during the Term Mr.
Vahaviolos will receive the additional benefits and perquisites described below.

          (a) Home Office. The Company will provide such computer and other electronic equipment
and services as are reasonably required in order to enable Mr. Vahaviolos to tend to the business
of the Company outside of regular business hours and when he is otherwise away from the Company’s
offices.

          (b) Life Insurance Coverage. The Company will pay the annual premium cost of a $1.5
million term life insurance policy on the life of Mr. Vahaviolos (which policy will be owned by Mr.
Vahaviolos or his designee).

     3.3 Conditions of Employment. Mr. Vahaviolos’s place of employment will be at the
Company’s headquarters at Princeton Junction, New Jersey, subject to the need for business travel
in connection with the performance of his duties. The conditions of Mr. Vahaviolos’s employment,
including, without limitation, office space and accoutrements, secretarial, administrative and
other support, will be consistent with his status as the Executive Chairman of the Board and Chief
Executive Officer. Mr. Vahaviolos will be entitled to first-class travel for business travel
outside of the continental United States.

     3.4 Reimbursement of Business Expenses. Mr. Vahaviolos is authorized to incur
reasonable expenses in carrying out his duties and responsibilities under this Agreement, and the
Company will promptly reimburse him for all expenses that are so incurred upon presentation of
appropriate vouchers or receipts, subject to the Company’s expense reimbursement policies
applicable to senior executive officers generally as in effect from time to time.

     4. Termination of Employment Before End of Term.

     4.1 Resignation. Mr. Vahaviolos may terminate his employment before the end of the
Term upon 60 days prior written notice to the Company. Upon receipt of such notice, the Company, at
its sole discretion, may relieve Mr. Vahaviolos of his active duties and may require Mr. Vahaviolos
to use any accrued and unused paid time off, including vacation, during the notice period. The
Company may also waive such notice, and/or set an earlier termination date upon receipt of such
notice, in which event Mr. Vahaviolos’s employment will terminate on the earlier termination date.

     4.2 Termination by the Company for Cause. The Company may terminate Mr. Vahaviolos’s
employment at any time for “Cause” if Mr. Vahaviolos:

 - 3 - 

 

          (a) is convicted of or pleads nolo contendre to a felony or is indicted for the commission of
a felony against the Company that has a materially adverse effect on the Company’s business;

          (b) commits fraud or a material act or omission involving dishonesty with respect to the
Company, as reasonably determined by the Company;

          (c) willfully fails or refuses to carry out the material responsibilities of his employment,
as reasonably determined by the Company; or

          (d) willfully engages in any act or omission that is in violation of a material policy of the
Company, including, without limitation, policies on business ethics and conduct, and policies on
the use of inside information and insider trading.

A decision to terminate Mr. Vahaviolos’s employment for Cause must be made, if at all, by the
affirmative vote of a majority of the members of the Board (not including Mr. Vahaviolos) at a
meeting of the Board called and held for such purpose (after reasonable notice to Mr. Vahaviolos
and an opportunity for Mr. Vahaviolos, together with counsel, to be heard before the Board) finding
that, in the good faith opinion of the Board, Mr. Vahaviolos engaged in conduct set forth above and
specifying the particulars thereof in reasonable detail. If the act or omission giving rise to the
termination for Cause is curable by Mr. Vahaviolos, the Board will provide 30 days written notice
to Mr. Vahaviolos of its intent to terminate Mr. Vahaviolos for Cause, with an explanation of the
reason(s) for the termination for Cause, and if Mr. Vahaviolos cures the act or omission within the
30 day notice period (as reasonably determined by the Board in its good faith discretion), the
Board will rescind the notice of termination and Mr. Vahaviolos’s employment will not be terminated
for Cause at the end of the 30 day notice period. If Mr. Vahaviolos has previously been afforded
the opportunity to cure particular behavior and successfully cured under this provision, the Board
will have no obligation to provide Mr. Vahaviolos with notice and an opportunity to cure a
recurrence of that behavior prior to a termination for Cause. For purposes of this Section, no act
or failure to act by Mr. Vahaviolos shall be deemed “willful” unless done, or omitted to be done,
by him not in good faith and without reasonable belief that such action of omission was in, or not
opposed to, the best interest of the Company.

     4.3 Termination by the Company Without Cause. The Company may terminate Mr.
Vahaviolos’s employment without Cause at any time before the end of the Term, subject to 60 days
prior written notice to Mr. Vahaviolos. Following such notice, the Company, at its sole discretion,
may relieve Mr. Vahaviolos of his active duties and require Mr. Vahaviolos to use any accrued and
unused paid time off, including vacation, during the notice period. The Company may at its sole
discretion also provide 60 days pay in lieu of notice. For the purposes hereof, the termination of
this Agreement at the expiration of the initial Term or a renewal Term due to non-renewal by the
Company pursuant to Section 1.1 will be deemed to be a termination of Mr. Vahaviolos’s employment
by the Company without Cause.

 - 4 - 

 

     4.4 Termination by Mr. Vahaviolos for Good Reason. Mr. Vahaviolos may terminate his
employment for Good Reason at any time (before the end of the Term) if:

          (a) there is a material adverse change in Mr. Vahaviolos’s status or position as Executive
Chairman of the Board and Chief Executive Officer of the
Company, including, without limitation, a material diminution of his position, duties,
responsibilities or authority or the assignment to him of duties or responsibilities that are
materially inconsistent with his status or position; or

          (b) a reduction in Mr. Vahaviolos’s annual Base Salary or failure to pay same; or

          (c) a reduction in Mr. Vahaviolos’ total target incentive award opportunity during a calendar
year in violation of Section 2; or

          (d) a breach by the Company of any of its material obligations under this Agreement; or

          (e) the relocation of Mr. Vahaviolos’s principal place of employment by more than 50 miles
from the then current location; or

          (f) in connection with a Change in Control, the failure or refusal by the successor or
acquiring company to expressly assume the obligations of the Company under this Agreement.

Before terminating his employment for Good Reason, Mr. Vahaviolos must specify in writing to the
Company (or the successor or acquiring company) the nature of the act or omission that Mr.
Vahaviolos deems to constitute Good Reason and provide the Company (or the successor or acquiring
company) 30 days after receipt of such notice to review and, if required, correct the situation
(and thus prevent Mr. Vahaviolos’s termination for Good Reason). Notice of termination for Good
Reason must be provided, if at all, within 90 days after the occurrence of the event or condition
giving rise to such termination.

     4.5 Termination Due to Disability. If Mr. Vahaviolos becomes “Disabled,” the Company
may terminate his employment. For this purpose, Mr. Vahaviolos will be considered “Disabled” if Mr.
Vahaviolos is unable to substantially perform the customary duties and responsibilities of his
employment for 150 consecutive calendar days or 150 or more calendar days during any 365 calendar
day period by reason of physical or mental incapacity which is expected to result in death or last
indefinitely, as determined by a duly licensed physician selected by the Company. Mr. Vahaviolos
acknowledges that, if he becomes “Disabled” under the preceding definition, he will have become
unable to perform the essential functions of his position and there would be no reasonable
accommodation which would not constitute an undue hardship to the Company that the Company could
make due to the nature of his position. Mr. Vahaviolos’s termination due to Disability will be
effective immediately upon the Company mailing or transmitting written notice of such termination
to Mr. Vahaviolos.

 - 5 - 

 

     4.6 Termination Due to Death. If Mr. Vahaviolos dies during the term of this
Agreement, his employment and this Agreement will terminate on the date of his death.

     5. Payments and Benefits Upon Termination of Employment.

     5.1 Termination of Employment by the Company without Cause or by Mr. Vahaviolos for Good
Reason. If Mr. Vahaviolos’s employment is terminated by the Company without Cause pursuant to
Section 4.3 or by Mr. Vahaviolos for Good Reason pursuant to Section 4.4, then, subject to Section
7, Mr. Vahaviolos shall be entitled to receive the following payments and benefits:

          (a) a single cash payment equal to the sum of (1) the unpaid amount, if any, of Base Salary
previously earned by Mr. Vahaviolos through the date of his termination, and (2) the unpaid amount,
if any, of the short term incentive award earned by Mr. Vahaviolos for the preceding year;

          (b) payment of any business expenses that were previously incurred but not reimbursed and are
otherwise eligible for reimbursement;

          (c) any payments or benefits which are payable to Mr. Vahaviolos or his covered spouse, or a
dependent or beneficiary of Mr. Vahaviolos, under and in accordance with the provisions of any
employee plan, program or arrangement of the Company, and settlement of any previously earned and
unpaid long-term incentive awards;

          (d) a cash payment equal to the product of (1) the short term incentive award (if any) that
would have been earned by Mr. Vahaviolos for the calendar year in which his employment terminates
if his employment had not terminated, multiplied by (2) a fraction, the numerator of which is the
number of days elapsed from the beginning of that calendar year until the date his employment
terminates, and the denominator of which is 365 (“Pro Rata Bonus”), which payment will be made when
the bonus for such calendar year would otherwise have been paid;

          (e) a single sum cash payment, to be made as soon as practicable (but not more than thirty
days) following termination of employment, of an amount equal to 1.0 times the sum of (1) the
highest annual rate of Mr. Vahaviolos’s Base Salary at any time during the 24 months preceding the
termination of his employment, and (2) Mr. Vahaviolos’s target short term incentive award for the
calendar year in which his employment terminates (or, if greater, the actual annual short term
incentive award earned by Mr. Vahaviolos for the preceding calendar year);

          (f) Mr. Vahaviolos will be deemed to have satisfied in full any service-based vesting
condition under any then outstanding long-term incentive awards (including, without limitation, the
initial incentive award described in Section 2.3(a) hereof), with the amount payable under any then
outstanding performance-based awards being determined at the end of the applicable performance
period as if Mr. Vahaviolos’s employment had continued;

 - 6 - 

 

          (g) if, immediately before the termination of his employment, Mr. Vahaviolos and/or his spouse
participates (other than via COBRA) in a Company group health plan, then, for the 24 months
following the date of such termination (or, if sooner, until corresponding coverage is obtained
under a successor employer’s plan),
Mr. Vahaviolos and/or such spouse may continue participating in such plan at the same benefit and
contribution levels applicable to active senior executives of the Company (which continuing
participation will be deemed to be in addition to and not in lieu of COBRA), or, if such coverage
is not permitted by the plan or by applicable law, the Company will provide COBRA continuation
coverage to Mr. Vahaviolos and his spouse at the Company’s sole expense, if and to the extent they
or either of them shall have elected and shall be entitled to receive COBRA continuation coverage;

          (h) the Company will continue to make the premium payments and the additional compensation
payments described in Section 3.2(c) with respect to the life insurance policy on Mr. Vahaviolos’s
life for 24 months following the termination of his employment or until his earlier death; and

          (i) Mr. Vahaviolos will continue to receive for a period of 24 months after the termination of
his employment such perquisites (including, without limitation, any financial planning services),
as were made available to him at any time during the 12 months preceding the termination of his
employment.

     5.2 Termination Due to Disability or Death. If Mr. Vahaviolos’s employment is
terminated by the Company due to Disability pursuant to Section 4.5, or if Mr. Vahaviolos’s
employment terminates by reason of his death, then, subject to Section 7, Mr. Vahaviolos (or his
beneficiary, as the case may be) shall be entitled to receive the following payments and benefits:

          (a) a single cash payment equal to the sum of (1) the unpaid amount, if any, of Base Salary
previously earned by Mr. Vahaviolos through the date of his termination, and (2) the amount of any
business expenses that were previously incurred but not reimbursed and are otherwise eligible for
reimbursement;

          (b) any payments or benefits which are payable to Mr. Vahaviolos, his spouse or any of his
dependents or any beneficiary under and in accordance with the provisions of any employee plan,
program or arrangement of the Company;

          (c) a single sum cash payment equal to the sum of (1) an amount equal to six months’ Base
Salary, (2) the unpaid amount, if any, of the short term incentive award earned by Mr. Vahaviolos
for the preceding year, and (3) an amount equal to his target bonus for the year multiplied by a
fraction, the numerator of which is the number of days elapsed from the beginning of that calendar
year until the date his employment terminates, and the denominator of which is 365;

          (d) Mr. Vahaviolos will be deemed to have satisfied in full any service-based vesting
condition under any then outstanding long-term incentive awards

 - 7 - 

 

(including, without limitation, the
initial incentive award described in Section 2.3(a) hereof), with the amount payable under any then
outstanding performance-based awards being determined at the end of the applicable performance
period as if Mr. Vahaviolos’s employment had continued;

          (e) Access to continuing group health plan coverage as described in Section 5.1(g); and

          (f) If Mr. Vahaviolos’s employment is terminated due to his Disability, the Company will
continue to make the premium payments and the additional compensation payments described in Section
3.2(c) with respect to the life insurance policy on Mr. Vahaviolos’s life for 24 months following
the termination of his employment or until his earlier death.

     5.3 Termination by the Company for Cause or Voluntary Termination by Mr. Vahaviolos.
If the Company terminates Mr. Vahaviolos’s employment for Cause pursuant to Section 4.3 or if Mr.
Vahaviolos resigns his employment before the end of the Term (other than a termination by Mr.
Vahaviolos for Good Reason pursuant to Section 4.4), then Mr. Vahaviolos shall not be entitled to
any additional payments or benefits except for payments and benefits, if any, that may have been
earned and are or will be payable under and in accordance with the terms of any employee benefit
plan in which Mr. Vahaviolos is a participant when his employment terminates.

     6. Change in Control.

     6.1 General. Except as otherwise specified in this Section 6, Mr. Vahaviolos will not
be entitled to any additional rights, payments or benefits as a result of a “Change in Control” (as
defined in Section 6.4 below), it being understood, however, that, except as otherwise enhanced
pursuant to this Section 6, the provisions of this Agreement, including, without limitation, the
provisions of Sections 4 and 5 (relating to the termination of Mr. Vahaviolos’s employment) will
continue in full force and effect subsequent to any such Change in Control. Notwithstanding the
foregoing, if (a) within two years after a Change in Control, Mr. Vahaviolos’s employment is
terminated by the Company without Cause or by Mr. Vahaviolos for Good Reason, or (b) within six
months before a Change in Control, Mr. Vahaviolos’s employment is terminated by the Company without
Cause at the request of the acquiring company or otherwise in contemplation of the Change in
Control, then (1) the Pro Rata Bonus element of Mr. Vahaviolos’s severance, as described in Section
5.1(d) above, will be determined with reference to Mr. Vahaviolos’s target short term incentive
bonus for the year of termination and payment of the Pro Rata Bonus will be made in a lump sum cash
payment at or promptly after the time of such termination or, if later, immediately prior to the
occurrence of the Change in Control, and (2) the amount of the single sum cash payment described in
Section 5.1(e) will be 200% of the amount that would otherwise be payable in accordance with said
Section 5.1(e) (i.e., the severance multiple will be equal to 2.0, as opposed to 1.0).

 - 8 - 

 

     6.2 Effect of a Change in Control on Long-Term Incentive Awards. All equity-based
incentive awards granted by the Company to Mr. Vahaviolos shall become fully vested immediately
before the occurrence of a Change in Control if (a) Mr. Vahaviolos is then still employed by or in
the service of the Company, or (b) within six months preceding the Change in Control, Mr.
Vahaviolos’s employment is terminated by the
Company without Cause or by him for Good Reason; with the payout under any performance-based
award being equal to the target amount.

     6.3 Gross-Up Payments.

          (a) General. Except as otherwise specified in this Section, if any payment or benefit
received or to be received by Mr. Vahaviolos from the Company pursuant to the terms of this
Agreement, when combined with the payments and benefits Mr. Vahaviolos is entitled to receive under
any other plan, program or arrangement (the “Payments”) would be subject to the excise tax (the
“Excise Tax”) imposed by Section 4999 of the Internal Revenue Code (the “Code”) as determined
below, the Company shall pay Mr. Vahaviolos, at the time(s) specified below, an additional amount
(the “Gross-Up Payment”) such that the net amount Mr. Vahaviolos retains, after deduction of the
Excise Tax on the Payments and any federal, state, and local income tax and the Excise Tax upon the
Gross-Up Payment, and any interest, penalties, or additions to tax payable by Mr. Vahaviolos with
respect thereto, shall be equal to the total present value (using the applicable federal rate (as
defined in section 1274(d) of the Code) in such calculation) of the Payments at the time such
Payments are to be made.

          (b) Calculations. For purposes of determining whether any of the Payments shall be
subject to the Excise Tax and the amount of such excise tax:

               (i) the total amount of the Payments shall be treated as “parachute payments” within the
meaning of section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning
of section 280G(b)(1) of the Code shall be treated as subject to the excise tax, except to the
extent that, in the written opinion of independent counsel or an independent national accounting
firm selected by the Company and reasonably acceptable to Mr. Vahaviolos (“Independent Adviser”), a
Payment (in whole or in part) does not constitute a “parachute payment” within the meaning of
section 280G(b)(2) of the Code, or such “excess parachute payments” (in whole or in part) are not
subject to the Excise Tax;

               (ii) the amount of the Payments that shall be subject to the Excise Tax shall be equal to the
lesser of (1) the total amount of the Payments or (2) the amount of “excess parachute payments “
within the meaning of section 280G(b)(1) of the Code (after applying clause (i), above); and

               (iii) the value of any non-cash benefits or any deferred payment or benefit shall be
determined by the Independent Adviser in accordance with the principles of section 280G(d)(3) and
(4) of the Code.

 - 9 - 

 

          (c) Tax Rates. For purposes of determining the amount of the Gross-Up Payment, Mr.
Vahaviolos shall be deemed to pay federal income taxes at the highest marginal rates of federal
income taxation applicable to individuals in the calendar year in which the Gross-Up Payment is to
be made and state and local income taxes, if any, at the highest marginal rates of taxation
applicable to individuals as are in
effect in the state and locality of his residence in the calendar year in which the Gross-Up
Payment is to be made, net of the maximum reduction in federal income taxes that can be obtained
from deduction of such state and local taxes, taking into account any limitations applicable to
individuals subject to federal income tax at the highest marginal rates.

          (d) Time of Gross-Up Payments. The Gross-Up Payments provided for in this Section
shall be made upon the earlier of (a) the payment to Mr. Vahaviolos of any Payment or (b) the
imposition upon Mr. Vahaviolos, or any payment by him, of any Excise Tax.

          (e) Adjustments to Gross-Up Payments. If it is established pursuant to a final
determination of a court or an Internal Revenue Service proceeding or the written opinion of the
Independent Adviser that the Excise Tax is less than the amount previously taken into account
hereunder, Mr. Vahaviolos shall repay the Company, within 30 days of his receipt of notice of such
final determination or opinion, the portion of the Gross-Up Payment attributable to such reduction
(plus the portion of the Gross-Up Payment attributable to the Excise Tax and federal, state, and
local income tax imposed on the Gross-Up Payment being repaid by Mr. Vahaviolos if such repayment
results in a reduction in Excise Tax or a federal, state, and local income tax deduction) plus any
interest received from the government by Mr. Vahaviolos on the amount of such repayment, provided
that if any such amount has been paid by Mr. Vahaviolos as an Excise Tax or other tax, he shall
cooperate with the Company in seeking a refund of any tax overpayments, and he shall not be
required to make repayments to the Company until the overpaid taxes and interest thereon are
refunded to him.

          (f) Additional Gross-Up Payment. If it is established pursuant to a final
determination of a court or an Internal Revenue Service proceeding or the written opinion of the
Independent Adviser that the Excise Tax exceeds the amount taken into account hereunder (including
by reason of any payment the existence or amount of which cannot be determined at the time of the
Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of such excess
within 30 days of the Company’s receipt of notice of such final determination or opinion.

          (g) Change in Law or Interpretation. In the event of any change in or further
interpretation of section 280G or 4999 of the Code and the regulations promulgated thereunder, Mr.
Vahaviolos shall be entitled, by written notice to the Company, to request a written opinion of the
Independent Adviser regarding the application of such change or further interpretation to any of
the foregoing, and the Company shall use its best efforts to cause such opinion to be rendered as
promptly as practicable.

 - 10 - 

 

          (h) Fees and Expenses. All fees and expenses of the Independent Adviser incurred in
connection with this section shall be borne by the Company.

          (i) Survival. The Company’s obligation to make a Gross-Up Payment with respect to
Payments made or accrued before the termination of this Agreement
shall survive the termination of the Agreement unless (1) Mr. Vahaviolos’s employment is
terminated by the Company for Cause or voluntarily by Mr. Vahaviolos without Good Reason, (2) Mr.
Vahaviolos fails to execute a release in accordance with Section 7.1 of this Agreement, or (c) Mr.
Vahaviolos fails to comply with the restrictive covenants contained in Section 8 of this Agreement,
in which event the Company’s obligation under this Section shall terminate immediately.

     6.4 Reduction of Separation Payments in Lieu of Gross-Up. If it shall be determined
that Mr. Vahaviolos is otherwise entitled to a Gross-Up Payment pursuant to Section 6.3, but that
the “Parachute Value” (as defined below) of all Payments does not exceed 110% of the “Safe Harbor
Amount” (as defined below), then Mr. Vahaviolos shall not be entitled to any payment under Section
6.3 and, instead, the amounts otherwise payable to Mr. Vahaviolos under this Agreement (and, if
necessary, under any other agreement or arrangement) shall be reduced so that the Parachute Value
of all Payments, in the aggregate, equals the Safe Harbor Amount. The reduction of amounts
otherwise payable to Mr. Vahaviolos, if applicable, shall be made by first reducing the payment
under Section 5.1(e), unless an alternative method of reduction is elected by Mr. Vahaviolos and
permitted by the Company. For the purposes hereof, (a) the term “Parachute Value” of a Payment
means the present value as of the date of the Change in Control for purposes of Section 280G of the
Code of the portion of such Payment that constitutes a “parachute payment” under Section
280G(b)(2), as determined by the Independent Adviser for purposes of determining whether and to
what extent the Excise Tax will apply to such Payment; and (b) the term “Safe Harbor Amount” means
the maximum Parachute Value of all Payments that Mr. Vahaviolos can receive without any Payments
being subject to the Excise Tax.

     6.5 Definition of Change in Control. For the purposes of this Agreement, a “Change in
Control” shall be deemed to have occurred if (a) any person (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (“Exchange Act”)), other than Mr.
Vahaviolos, the Company, any employee benefit plan of the Company, any entity owned directly or
indirectly by the shareholders of the Company in substantially the same proportion as their
ownership of stock of the Company or any person who becomes a beneficial owner directly or
indirectly of securities of the Company pursuant to a transaction described in (b) below, becomes
the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
securities of the Company (not including in the securities beneficially owned by such person any
securities acquired directly from the Company or its affiliates) representing 40% or more of the
combined voting power of the Company’s then outstanding voting securities; or (b) there shall have
been consummated a consolidation, merger or reorganization of the Company, unless (1) the
stockholders of the Company immediately before such consolidation, merger or reorganization own,

 - 11 - 

 

directly or indirectly, at least a majority of the combined voting power of the outstanding voting
securities of the corporation or other entity resulting from such consolidation, merger or
reorganization, (2) individuals who were members of the Board immediately prior to the execution of
the agreement providing for such consolidation, merger or reorganization constitute a majority of
the board of directors of the surviving corporation or of a corporation directly or indirectly
beneficially owning a majority of the voting
securities of the surviving corporation, and (3) no person beneficially owns more than 50% of
the combined voting power of the then outstanding voting securities of the surviving corporation
(other than a person who is (A) the Company or a subsidiary of the Company, (B) an employee benefit
plan maintained by the Company, the surviving corporation or any subsidiary, or (C) the beneficial
owner of 50% or more of the combined voting power of the outstanding voting securities of the
Company immediately prior to such consolidation, merger or reorganization); or (c) individuals who
are set forth as directors or director nominees of the Company in Amendment No. 3 to the
Registration Statement on Form S-1, as filed on August 24, 2009 (the “Registration Statement”),
with the Securities and Exchange Commission (the “Incumbent Board”) cease for any reason to
constitute a majority of the Board, provided that any individual becoming a director subsequent to
the date of the closing of the initial public offering of the common stock of the Company pursuant
to the Registration Statement, as subsequently amended, whose appointment or nomination for
election by the Company’s stockholders, was approved by a vote of at least two-thirds of the
Incumbent Board shall be considered as though such individual were a member of the Incumbent Board;
or (d) the stockholders of the Company approve the complete liquidation or dissolution of the
Company, or a sale or other disposition of all or substantially all of the assets of the Company
(other than to an entity described in (b) above).

     7. Release of Claims; Restoration of Payments; Section 409A Delayed Payments.

     7.1 Release. Notwithstanding anything to the contrary contained herein, Mr.
Vahaviolos’s right to receive any and all separation payments or
benefits under Section 5.1(d) –
5.1(i), 5.2(c) – 5.2(f), 6.1, 6.2 and/or 6.3 shall be conditioned on the execution and delivery of
a reasonable and customary form of general release by Mr. Vahaviolos in favor of the Company, its
affiliates and their officers, directors and employees, in such form as the Compensation Committee
or the Board may specify. Any such payment or benefit shall be deferred until the expiration of the
seven day revocation period prescribed by the Age Discrimination in Employment Act of 1967, as
amended, or any similar revocation period in effect on the effective date of the termination of Mr.
Vahaviolos’s employment.

     7.2 Restoration of Payments. Mr. Vahaviolos’s right to receive any separation payments
and benefits pursuant to this Agreement shall be subject to his substantial compliance with the
non-competition and non-solicitation restrictive covenants set forth in Section 8.5. If Mr.
Vahaviolos fails to substantially comply with such covenants set forth in Section 8.5, then (a) Mr.
Vahaviolos shall not be entitled to any further separation payments and benefits under this
Agreement, and (b) the Company may

 - 12 - 

 

seek to obtain the return by Mr. Vahaviolos of any separation
payments and the value of any separation benefits previously received hereunder. This Section shall
not in any manner supersede or limit any other right the Company may have to enforce or seek legal
or equitable relief with respect to a violation or breach by Mr. Vahaviolos of the covenants set
forth in Section 8.5 or the right of Mr. Vahaviolos to otherwise receive payments to which he is
entitled. The Company shall not have the right of set off in connection with the enforcement of its
rights hereunder.

     7.3 Section 409A Delayed Payment Requirements. Notwithstanding any provision to the
contrary in this Agreement or in any employee plan or other agreement, plan, policy or program of
the Company, any payment otherwise required to be made to Mr. Vahaviolos on account of his
separation from service (including, without limitation, payments and benefits payable under Section
5.1), to the extent such payment is properly treated as deferred compensation subject to Section
409A of the Internal Revenue Code of 1986 and the regulations and other applicable guidance issued
by the Internal Revenue Service thereunder, shall be delayed until the first business day after the
expiration of six months from the date of the termination of Mr. Vahaviolos’s employment or, if
earlier, the date of his death. On the delayed payment date, there shall be paid to Mr. Vahaviolos
(or his estate, as the case may be) in a single cash payment an amount equal to the aggregate
amount of the payments delayed pursuant to the preceding sentence. Notwithstanding the foregoing,
Mr. Vahaviolos shall be solely responsible, and the Company shall have no liability, for any taxes,
acceleration of taxes, interest or penalties arising under Section 409A of the Code.

     8. Restrictive Covenants.

     8.1 Access to Secret and Confidential Information. The Company has furnished and shall
furnish to Mr. Vahaviolos secret and confidential information with respect to the Company and its
affiliates (collectively “Secret and Confidential Information”), to which Mr. Vahaviolos would not
otherwise have access and of which Mr. Vahaviolos would not otherwise have knowledge. Secret and
Confidential Information includes, without limitation, technical and business information, whether
patentable or not, which is of a confidential, trade secret or proprietary character, and which is
either developed by Mr. Vahaviolos alone, with others or by others; lists of customers; identity of
customers; identity of prospective customers; contract terms; bidding information and strategies;
pricing methods or information; computer software; computer software methods and documentation;
hardware; methods of operation; the procedures, forms and techniques used in servicing accounts;
and other information or documents that the Company or any of its affiliates requires to be
maintained in confidence for its or their continued business success.

     8.2 Non-Disclosure of Secret and Confidential Information. Mr. Vahaviolos shall not,
during the period of his employment with the Company or at any time thereafter, knowingly or
intentionally disclose to anyone, including, without limitation, any person, firm, corporation, or
other entity, or publish, or use for any purpose, any Secret and Confidential Information, except
as properly required in the ordinary

 - 13 - 

 

course of the Company’s business or as directed and authorized
by the Company or as required by court order, law or subpoena, or other legal compulsion to
disclose, it being understood that information that is known generally in the industry or is
otherwise available to the public (other than as a result of a violation of Mr. Vahaviolos’s
obligation under this Section 8.2) shall not be considered Secret and Confidential Information.

     8.3 Duty to Return Company Documents and Property. Upon the termination of Mr.
Vahaviolos’s employment with the Company for any reason, Mr. Vahaviolos shall immediately return
and deliver to the Company any and all papers, books, records,
documents, memoranda and manuals, e-mail, electronic or magnetic recordings or data, including
all copies thereof, belonging to the Company or relating to its business, in Mr. Vahaviolos’s
possession, whether prepared by Mr. Vahaviolos or others. If at any time after the termination of
employment, Mr. Vahaviolos determines that he has any Secret and Confidential Information in his
possession or control, Mr. Vahaviolos shall immediately return to the Company all such Secret and
Confidential Information, including all copies and portions thereof.

     8.4 Inventions. Any and all writings, computer software, inventions, improvements,
processes, procedures and/or techniques which Mr. Vahaviolos may make, conceive, discover, or
develop, either solely or jointly with any other person or persons, at any time during the term of
his employment, whether at the request or upon the suggestion of the Company or otherwise, which
relate to or are useful in connection with any business now or hereafter carried on or contemplated
by the Company, including developments or expansions of its present fields of operations, shall be
the sole and exclusive property of the Company. Mr. Vahaviolos shall take all actions necessary so
that the Company can prepare and present applications for copyright or letters patent therefor, and
can secure such copyright or letters patent wherever possible, as well as reissue renewals, and
extensions thereof, and can obtain the record title to such copyright or patents. Mr. Vahaviolos
shall not be entitled to any additional or special compensation or reimbursement regarding any such
writings, computer software, inventions, improvements, processes, procedures and techniques. Mr.
Vahaviolos acknowledges that the Company from time to time may have agreements with other persons
or entities which impose obligations or restrictions on the Company regarding inventions made
during the course of work thereunder or regarding the confidential nature of such work. Mr.
Vahaviolos shall be bound by all such obligations and restrictions and take all action necessary to
discharge the obligations of the Company.

     8.5 Non-Solicitation and Non-Competition Restrictions. To protect the Company’s Secret
and Confidential Information, and in the event of Mr. Vahaviolos’s termination of employment for
any reason whatsoever, whether by Mr. Vahaviolos or the Company, Mr. Vahaviolos will be subject to
the following restrictive covenants during and for the stated period following the termination of
his employment.

          (a) Non-Competition. For two years following the termination of Mr. Vahaviolos’s
employment with the Company, Mr. Vahaviolos shall not, without the prior

 - 14 - 

 

written consent of the
Company, knowingly or intentionally (1) personally engage in Competitive Activities (as defined
below); or (2) work for, own, manage, operate, control, or participate in the ownership,
management, operation, or control of, or provide consulting or advisory services to, any person,
partnership, firm, corporation, institution or other entity engaged in Competitive Activities, or
any company or person affiliated with such person or entity engaged in Competitive Activities;
provided that Mr. Vahaviolos’s purchase or holding, for investment purposes, of securities of a
publicly traded company shall not constitute “ownership” or “participation in the ownership” for
purposes of this paragraph so long as such equity interest in any such company is not more than 5%
of the value of the outstanding stock or 5% of the outstanding voting
securities of said publicly traded company. For the avoidance of doubt, this subsection (a)
shall not prohibit Mr. Vahaviolos from being employed by, or providing services to, a consulting
firm, provided that Mr. Vahaviolos does not personally engage in Competitive Activities or provide
consulting or advisory services to any individual, partnership, firm, corporation, institution or
other entity engaged in Competitive Activities, or any person or entity affiliated with such
individual, partnership, firm, corporation, institution or other entity engaged in Competitive
Activities.

          (b) Competitive Activities. For the purposes hereof, the term “Competitive Activities”
means activities relating to products or services of the same or similar type as the products or
services which are sold (or, pursuant to an existing business plan, will be sold) to paying
customers of the Company or any affiliate. Notwithstanding the previous sentence, an activity shall
not be treated as a Competitive Activity if the geographic marketing area of the relevant products
or services does not overlap with the geographic marketing area for the applicable products and
services of the Company and its affiliates.

          (c) Interference With Business Relations — For two years following his separation
from employment with Company, Mr. Vahaviolos shall not, without the prior written consent of the
Company, knowingly or intentionally, directly or indirectly:

               (i) recruit, induce or solicit any individual who is or who, within the preceding six months,
was a non-clerical employee of the Company (including any of its subsidiaries) for employment or
for retention as a consultant or service provider, or hire any such individual; or

               (ii) solicit or induce any client, customer, or prospect of the Company (including any
subsidiary of the Company) (1) to cease being, or not to become, a customer of the Company (or any
such subsidiary), or (2) to divert any business of such customer or prospect from the Company (or
any such subsidiary).

     8.6 Reformation. If a court concludes that any time period and/or the geographic area
specified in Section 8.5 is unenforceable, then the time period will be reduced by the number of
months, or the geographic area will be reduced by the elimination of the overbroad portion, or
both, as the case may be, so that the

 - 15 - 

 

restrictions may be enforced in the geographic area and for
the time to the fullest extent permitted by law.

     8.7 Remedies. It is intended that, in view of the nature of the Company’s business,
the restrictions contained in this Section 8 of the Agreement shall be considered reasonable and
necessary to protect the Company’s legitimate business interests and that any violation of these
restrictions would result in irreparable injury to the Company. In the event of a breach or a
threatened breach by Mr. Vahaviolos of any restrictive covenant contained herein, the Company shall
be entitled to a temporary restraining order and injunctive relief restraining Mr. Vahaviolos from
the commission of any breach, and to recover the Company’s attorneys’ fees, costs and expenses
related to the breach or threatened breach. Nothing contained herein shall be
construed as prohibiting the Company from pursuing any other remedies available to it for any
breach or threatened breach, including, without limitation, the restoration and other remedies
specified in this Agreement and/or the recovery of money damages, attorneys’ fees, and costs. These
covenants and restrictions shall each be construed as independent of any other provisions in the
Agreement, and the existence of any claim or cause of action by Mr. Vahaviolos against the Company,
whether predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by the Company of such covenants and restrictions.

     8.8 Severability. Should a court determine that any paragraph or sentence, or any
portion of a paragraph or sentence of this Section 8 is invalid, unenforceable, or void, this
determination shall not have the effect of invalidating or validating the remainder of the
paragraph, sentence or any other provision of this Section 8. Further, it is intended that the
court should construe this Section 8 by limiting and reducing it only to the extent necessary to be
enforceable under then applicable law, taking into account the intent of the parties.

     8.9 Future Employment. If, before the expiration of the period covered by Section 8.5
hereof, Mr. Vahaviolos seeks or is offered employment by any other company, firm, person or entity,
Mr. Vahaviolos shall provide a copy of this Section 8 to the prospective employer before accepting
employment with that prospective employer.

     9. No Duty to Mitigate. Except as otherwise specifically provided herein, Mr.
Vahaviolos’s entitlement to payments or benefits upon or following the termination of his
employment will not be subject to mitigation or a duty to mitigate by Mr. Vahaviolos.

     10. Successors and Beneficiaries.

     10.1 Successors and Assigns of the Company. The Company shall require any successor or
assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all the business or assets of the Company and its subsidiaries taken as a whole,
expressly and unconditionally to assume and agree to perform or cause to be performed the Company’s
obligations under this Agreement. In

 - 16 - 

 

any such event, the term “Company,” as used herein shall mean
the Company, as defined above, and any such successor or assignee.

     10.2 Mr. Vahaviolos’s Beneficiary. For the purposes hereof, Mr. Vahaviolos’s
beneficiary will be the person or persons designated as such in a written beneficiary designation
filed with the Company, which may be revoked or revised in the same manner at any time prior to Mr.
Vahaviolos’s death. In the absence of a properly filed written beneficiary designation or if no
designated beneficiary survives Mr. Vahaviolos, Mr. Vahaviolos’s beneficiary will be deemed to be
his surviving spouse, if any, or, if none, his estate.

     11. Legal Fees to Enforce Rights after a Change in Control. If, following a Change in
Control, the Company fails to comply with any of its obligations under this Agreement or the
Company takes any action to declare this Agreement void or
unenforceable or institutes any litigation or other legal action designed to deny, diminish or
to recover from Mr. Vahaviolos (or Mr. Vahaviolos’s beneficiary) the payments and benefits intended
to be provided, then Mr. Vahaviolos (or Mr. Vahaviolos’s beneficiary, as the case may be) shall be
entitled to select and retain counsel at the expense of the Company to represent Mr. Vahaviolos (or
Mr. Vahaviolos’s beneficiary) in connection with the good faith initiation or defense of any
litigation or other legal action, whether by or against the Company or any director, officer,
stockholder or other person affiliated with the Company or any successor thereto in any
jurisdiction.

     12. Arbitration.

     12.1 Dispute Resolution. Except as otherwise specifically provided in Section 8.7
(relating to the ability of a party to seek injunctive or other equitable relief from a court), any
claim or controversy arising out of or relating to this Agreement or the breach hereof shall be
resolved exclusively by arbitration.

     12.2 Claim Initiation/Time Limits. A party must notify the other party in writing of a
request to arbitrate a dispute within the same statute of limitations period applicable to the
legal claim asserted. The written request for arbitration must specify (a) the factual basis on
which the claim is made; (b) the statutory provision or legal theory under which the claim is made;
and (c) the nature and extent of any relief or remedy sought.

     12.3 Procedures. The arbitration will be administered in accordance with the
Employment Dispute Resolution Rules of the American Arbitration Association (“AAA”), in the
Princeton, New Jersey metropolitan area (or, if different, in the metropolitan area in which Mr.
Vahaviolos is then or was last employed) before an experienced employment law arbitrator licensed
to practice law in that jurisdiction who has been selected in accordance with such Rules. The
Company will pay the fees of the AAA and the arbitrator and will bear the administrative expenses
of any such arbitration proceeding. Each party may be represented by counsel of its or his own
choosing and at its or his own expense; provided, however, that attorneys’ fees and costs may be
awarded to a prevailing party in the discretion of the arbitrator. The arbitrator’s award

 - 17 - 

 

will be
enforceable, and a judgment may be entered thereon, in a federal or state court of competent
jurisdiction in the state where the arbitration was held. The decision of the arbitrator will be
final and binding.

     13. Governing Law. This Agreement shall be governed by the laws of the State of New
Jersey, excluding its conflict of law rules or any other principle that could require the
application of the law of any other jurisdiction.

     14. Indemnification. In the absence of a separate written indemnification agreement
between the Company and Mr. Vahaviolos, the Company shall indemnify Mr. Vahaviolos and hold him
harmless from and against any claim, liability and expense (including, without limitation,
reasonable attorney fees) made against him or incurred by him in connection with his employment by
the Company or his membership on the Board (including, without limitation, service for subsidiaries
or affiliates of the Company
in fulfillment of his duties and responsibilities under this Agreement), to the maximum extent
permitted by applicable law.

     15. Withholding. The Company and its Affiliates may withhold from any and all amounts
payable under this Agreement such federal, state and local taxes and other amounts as may be
required to be withheld pursuant to applicable law.

     16. Entire Agreement. This Agreement (including any exhibits, schedules and other
documents referred to herein) contains the entire understanding between the parties hereto with
respect to the subject matter hereof and supersedes any prior and/or contemporaneous
understandings, agreements or representations, written or oral, relating to the subject matter
hereof.

     17. Counterparts. This Agreement may be executed in separate counterparts, each of
which will be an original and all of which taken together shall constitute one and the same
agreement, and any party hereto may execute this Agreement by signing any such counterpart.

     18. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law and consistent with
the intention of the parties, and, in furtherance thereof, if any provision of this Agreement is
held to be invalid, illegal or unenforceable under any applicable law or rule, the validity,
legality and enforceability of the other provision of this Agreement will not be affected or
impaired thereby.

     19. Modification, Amendment, Waiver or Termination. No provision of this Agreement
may be modified, amended, waived or terminated except by an instrument in writing signed by the
parties to this Agreement. No course of dealing between the parties will modify, amend, waive or
terminate any provision of this Agreement or any rights or obligations of any party under or by
reason of this Agreement. No delay on the part of the Company in exercising any right hereunder
shall operate as a waiver of such right. No waiver, express or implied, by a party of any right or
any breach by the other

 - 18 - 

 

party shall constitute a waiver of any other right of such party or breach
by such other party.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

	 	 	 	 	 	 	 
	 	 	MISTRAS GROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	Pete Peterik	 	 
	 

	 	 	 	Secretary and Chief 

Financial Officer

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/
Sotirios J. Vahaviolos	 	 
	 	 	Sotirios J. Vahaviolos	 	 

 - 19 -exv10w5

Exhibit 10.5

MISTRAS GROUP INC.

2007 STOCK OPTION PLAN

     1. Purpose. The purpose of the Mistras Holdings Group Inc. 2007 Stock Option Plan (the
“Plan”) is to foster the ability of Mistras Holdings Group Inc. (the “Company”) and its
subsidiaries to attract, motivate, reward and retain key personnel through the grant of options
(“Options”) to purchase shares of the Company’s common stock (“Common Stock”).

     2. Eligibility. Options may be granted under the Plan to such directors, officers,
employees, consultants and other persons who may perform services for the Company or its
affiliates, as the Committee may select.

     3. Aggregate Share Limitation. The Company may issue an aggregate of 56,974 shares
of Common Stock under the Plan, exclusive of (a) shares covered by the unexercised portion of an
Option that is forfeited or otherwise terminates, and (b) shares that are withheld in order to pay
the exercise price or satisfy the tax withholding obligations associated with the exercise of an
Option.

     4. Administration.

          (a) Committee. The Plan will be administered by the Company’s Board of Directors (the
“Board”) or a committee of one or more members of the Board appointed for this purpose by the Board
(the Board in such capacity or such committee being referred to as the “Committee”).

          (b) Responsibility and Authority of Committee. Subject to the provisions of the Plan,
the Committee, acting in its discretion, will have responsibility and full power and authority to
(i) select the persons to whom Options will be granted under the Plan, (ii) prescribe the terms and
conditions of each Option and make amendments thereto, (iii) construe, interpret and apply the
provisions of the Plan and of any agreement or other document evidencing an Option, and (iv) make
any and all determinations and take any and all other actions as it deems necessary or desirable in
order to carry out the terms of the Plan.

          (c) Delegation of Authority. Subject to the requirements of applicable law, the
Committee may delegate to any person or group or subcommittee of persons (who may, but need not be,
members of the Committee) such Plan-related functions within the scope of its responsibility, power
and authority as it deems appropriate.

          (d) Committee Actions. A majority of the members of the Committee shall constitute a
quorum. The Committee may act by the vote of a majority of its members present at a meeting at
which there is a quorum or by unanimous written consent. The decision of the Committee as to any
disputed question, including questions of construction, interpretation and administration, shall be
final and conclusive on all persons. The Committee shall keep a record of its proceedings and acts
and shall keep or cause to be kept such books and records as may be necessary in connection with
the proper administration of the Plan.

          (e) Indemnification. The Company shall indemnify and hold harmless each member of the
Committee and any employee or director of the Company to whom any duty or

1

 

power relating to the administration or interpretation of the Plan is delegated from and
against any loss, cost, liability (including any sum paid in settlement of a claim with the
approval of the Board), damage and expense (including legal and other expenses incident thereto)
arising out of or incurred in connection with the Plan, unless and except to the extent
attributable to such person’s fraud or willful misconduct.

     5. Stock Options. Subject to the terms of the Plan, each Option shall be in such form
and contain such terms and conditions as the Committee shall deem appropriate. The Committee may
grant options that do and options that do not qualify as “incentive stock options” (“ISOs”) under
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

          (a) Option Term. No Option granted under the Plan may be exercisable after the
expiration of ten years from the date it is granted (five years in the case of an ISO granted to an
employee who is a 10% stockholder within the meaning of Section 422(b)(6) of the Code).

          (b) Exercise Price. The exercise price per share of Common Stock covered by an Option
must be at least equal to the fair market value per share on the grant date (110% of fair market
value in the case of an ISO granted to an employee who is a 10% stockholder within the meaning of
Section 422(b)(6) of the Code). For the purposes of the Plan, subject to applicable law and unless
otherwise determined by the Committee, the fair market value per share of Common Stock on any given
date will be (i) if the Common Stock is listed on any established stock exchange or traded on the
Nasdaq National Market or the Nasdaq SmallCap Market, the closing sale price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or
market with the greatest volume of trading in the shares) on the date of determination, or (ii) in
the absence of such markets for the Common Stock, the value per share as determined in good faith
by the Committee or pursuant to procedures established by the Committee.

          (c) Exercise of Options. A vested Option may be exercised by transmitting to the
Secretary of the Company (or other person designated by the Committee) a written notice identifying
the Option that is being exercised and specifying the number of whole shares to be purchased
pursuant to that Option, together with payment in full of the exercise price and the withholding
taxes due in connection with the exercise, unless and except to the extent that other arrangements
satisfactory to the Company have been made for such payments. The exercise price and applicable tax
withholding obligation may be paid (i) in cash or by check or (ii) at the sole discretion of the
Committee, (1) by the delivery of previously-owned shares of Common Stock, or (2) any other form of
legal consideration that may be acceptable to the Committee, or (iii) by a combination of the
foregoing. After the first date upon which the Common Stock is listed on any securities exchange or
designated (or approved for designation) as a national market security on an interdealer quotation
system, the Committee may permit payment to be made pursuant to a cashless exercise program
established and made available through a registered broker-dealer in accordance with applicable
law. Any shares transferred to the Company (or withheld upon exercise) in connection with the
exercise of an Option shall be valued at fair market value for purposes of determining the extent
to which the exercise price and/or tax withholding obligation is satisfied by such transfer (or
withholding) of shares.

2

 

          (d) Effect of Termination of Employment or Other Service. The Committee may establish
such exercise and other conditions applicable to an Option following the termination of an
optionee’s employment or other service with the Company or its affiliates (“Termination of
Employment”) as the Committee deems appropriate on a grant-by-grant basis. Unless the Committee
determines otherwise, either at the time of grant or, subject to applicable law (including, without
limitation, the requirements of Section 409A or the Code), subsequent to that time, in the event of
the an optionee’s Termination of Employment: (1) that portion of the optionee’s Option that is not
then vested will expire immediately upon Termination of Employment; (2) that portion of an
optionee’s Option that is then vested will expire (a) 30 days following a Termination of Employment
for reasons other than death, Disability or Cause (as those terms are defined below), (b) 180 days
following a Termination of Employment due to the optionee’s death, (c) 180 days following a
Termination of Employment due to the optionee’s Disability or, if the optionee dies during such
180-day period, 90 days after the optionee’s death, or (d) immediately upon a Termination of
Employment by the Company or an affiliate for Cause.

          (i) Definition of Cause. For purposes of the Plan, the term “Cause” means any
of the following: (1) an optionee’s theft, dishonesty, or falsification of any documents or
records related to the Company or any of its affiliates; (2) an optionee’s improper use or
disclosure of the Company’s or any of its affiliate’s confidential or proprietary
information; (3) any action by an optionee which has a detrimental effect on the reputation
or business of the Company or any of its affiliates; (4) an optionee’s failure or inability
to substantially perform any reasonably assigned duties, if such failure or inability is
capable of cure, after being provided with a reasonable opportunity to cure, such failure or
inability; or (5) an optionee’s conviction (including any plea of guilty or nolo contendere)
of any criminal act which impairs the optionee’s ability to perform his or her duties with
the Company or any of its affiliates, all as determined by the Board in its discretion.

          (ii) Definition of Disability. For the purposes of the Plan, the term
“Disability” means the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code.

     6. Stockholders’ Agreement. The Committee may condition the vesting and exercise of an
Option on the completion by the Company of an initial public offering. If the vesting and exercise
of an Option are not so conditioned, then the Committee may condition the exercise of a vested
Option prior to an initial public offering on the optionee’s (or beneficiary’s) becoming a party to
a stockholders’ agreement by and among the Company and some or all of its stockholders (which
agreement may include, among other things, transfer restrictions, rights of first refusal,
repurchase rights and market standoff conditions with respect to the shares acquired pursuant to
the exercise of the Option), as such agreement may be amended from time to time, or any subsequent
stockholders’ agreement thereto.

     7. Non-Transferability. No Option granted under the Plan shall be transferable by an
optionee other than upon the optionee’s death to a beneficiary designated by the optionee in a
manner acceptable to the Committee, or, if no duly designated beneficiary shall survive the
optionee, pursuant to the optionee’s will or by the laws of descent and distribution. All Options
shall be exercisable during the optionee’s lifetime only by the optionee. Except as otherwise

3

 

specifically provided by law, no Option granted under the Plan may be transferred in any
manner, and any attempt to transfer any such Option shall be void, and no such Option shall in any
manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any
person who shall be entitled to such Option, nor shall it be subject to attachment or legal process
for or against such person. Notwithstanding the foregoing, the Committee may determine at the time
of grant or thereafter that an Option (other than an ISO) is transferable in whole or part to such
persons, under such circumstances, and subject to such conditions as the Committee may prescribe.

     8. Capital Changes, Reorganization, Sale.

          (a) Adjustments Upon Changes in Capitalization. The aggregate number and class of
shares issuable under the Plan and the number and class of shares and the exercise price per share
covered by each outstanding Option and related terms shall be adjusted proportionately or as
otherwise appropriate in the determination of the Board to reflect any increase or decrease in the
number of issued shares of Common Stock resulting from a stock-split, reverse stock-split or
consolidation of shares or any like capital adjustment, or the payment of any stock dividend,
and/or to reflect a change in the character or class of shares covered by the Plan arising from a
readjustment or recapitalization of the Company’s capital stock.

          (b) Cash, Stock or Other Property for Stock. Except as otherwise provided in this
Section, in the event of an Exchange Transaction (as defined below), all optionees shall be
permitted to exercise their outstanding Options in whole or in part to the extent then vested;
provided, that the Board may in its sole discretion accelerate in whole or in part the vesting of
the remaining unvested portion of the Options immediately prior to such Exchange Transaction, and
any outstanding Options which are not exercised before the Exchange Transaction shall thereupon
terminate. Notwithstanding the preceding sentence, if, as part of an Exchange Transaction, the
stockholders of the Company receive equity capital of another entity (“Exchange Stock”) in exchange
for their shares of Common Stock (whether or not such Exchange Stock is the sole consideration),
and if the Board, in its sole discretion, so directs, then all outstanding Options shall be
converted into options to purchase shares of Exchange Stock. The amount and price of converted
options shall be determined by adjusting the amount and price of the Options granted hereunder on
the same basis as the determination of the number of shares of Exchange Stock the holders of Common
Stock shall receive in the Exchange Transaction and, unless the Board determines otherwise, the
vesting conditions with respect to the converted options shall be substantially the same as the
vesting conditions set forth in the original Option agreement.

          (c) Definition of Exchange Transaction. For purposes hereof, the term “Exchange
Transaction” means a merger (other than a merger of the Company in which the holders of Common
Stock immediately prior to the merger have the same proportionate ownership of Common Stock in the
surviving corporation immediately after the merger), consolidation, acquisition or disposition of
property or stock, separation, reorganization (other than a mere reincorporation or the creation of
a holding company), liquidation of the Company, or any other similar transaction or event so
designated by the Committee in its sole discretion, as a result of which the stockholders of the
Company receive cash, stock or other property in exchange for or in connection with their shares of
Common Stock.

4

 

          (d) Fractional Shares. In the event of any adjustment in the number of shares covered
by any Option pursuant to the provisions hereof, any fractional shares resulting from such
adjustment shall be disregarded, and each such Option shall cover only the number of full shares
resulting from the adjustment.

          (e) Determination of Board to be Final. All adjustments under this Section shall be
made by the Board, and its determination as to what adjustments shall be made, and the extent
thereof, shall be final, binding and conclusive.

     9. Tax Withholding. As a condition to the exercise of any Option or the delivery of
any shares of Common Stock pursuant to any Option, or in connection with any other event that gives
rise to a federal or other governmental tax withholding obligation on the part of the Company or an
affiliate relating to an Option, the Company and/or the affiliate may (a) deduct or withhold (or
cause to be deducted or withheld) from any payment or distribution to an optionee whether or not
pursuant to the Plan or (b) require the optionee to remit cash (through payroll deduction or
otherwise), in each case in an amount sufficient in the opinion of the Company to satisfy such
withholding obligation. If the event giving rise to the withholding obligation involves a transfer
of shares of Common Stock, then, at the sole discretion of the Committee, the optionee may satisfy
the withholding obligation described under this Section by electing to have the Company withhold
shares of Common Stock or by tendering previously-owned shares of Common Stock, in each case having
a fair market value equal to the amount of tax to be withheld (or by any other mechanism as may be
required or appropriate to conform with local tax and other rules).

     10. Amendment and Termination. The Board may amend or terminate the Plan, provided,
however, that no such action may adversely affect an optionee’s rights under an outstanding Option
without his written consent. Any amendment that would increase the aggregate number of shares of
Common Stock issuable under the Plan or that would modify the class of persons eligible to receive
Options shall be subject to the approval of the Company’s stockholders. The Committee may amend the
terms of any agreement or any Option granted hereunder at any time and from time to time, provided,
however, that any amendment which would adversely affect an optionee’s rights under an outstanding
Option may not be made without the optionee’s consent.

     11. General Provisions.

          (a) Shares Issued Under Plan. Shares of Common Stock available for issuance under the
Plan may be authorized and unissued, held by the Company in its treasury or otherwise acquired for
purposes of the Plan. No fractional shares of Common Stock will be issued under the Plan.

          (b) Compliance with Law. The Company will not be obligated to issue or deliver shares
of Common Stock pursuant to the Plan unless the issuance and delivery of such shares complies with
applicable law, including, without limitation, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and the requirements of any stock

5

 

exchange or market upon which the Common Stock may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such compliance.

          (c) Transfer Orders; Placement of Legends. All certificates for shares of Common Stock
delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as
the Company may deem advisable under the rules, regulations, and other requirements of the
Securities and Exchange Commission, any stock exchange or market upon which the Common Stock may
then be listed, and any applicable federal or state securities law. The Company may cause a legend
or legends to be placed on any such certificates to make appropriate reference to such
restrictions.

     12. No Employment or other Rights. Nothing contained in the Plan or in any Option
agreement shall confer upon any optionee any right with respect to the continuation of his
employment or other service with the Company or an affiliate or interfere in any way with the right
of the Company and its affiliates at any time to terminate such employment or other service or to
increase or decrease, or otherwise adjust, the other terms and conditions of the optionee’s
employment or other service.

     13. Decisions and Determinations Final. All decisions and determinations made by the
Board pursuant to the provisions hereof and, except to the extent rights or powers under the Plan
are reserved specifically to the discretion of the Board, all decisions and determinations of the
Committee, shall be final, binding and conclusive on all persons.

     14. Nonexclusivity of the Plan. No provision of the Plan, and neither its adoption by
the Board or submission to the stockholders for approval, shall be construed as creating any
limitations on the power of the Board or a committee thereof to adopt such other incentive
arrangements, apart from the Plan, as it may deem desirable.

     15. Governing Law. All rights and obligations under the Plan and each Option agreement
or instrument shall be governed by and construed in accordance with the laws of the State of
[Delaware], without regard to its principles of conflict of laws.

     16. Term of the Plan. The Plan shall be effective as of the date of its adoption by
the Board, subject to the approval of the stockholders of the Company within one year from the date
of such adoption by the Board. The Plan shall terminate on the tenth anniversary of the date of its
adoption by the Board, unless sooner terminated by the Board. The rights of any person with respect
to any Option granted under the Plan that is outstanding at the time of the termination of the Plan
shall not be affected solely by reason of the termination of the Plan and shall continue in
accordance with the terms of the Option and of the Plan.

6

 

MISTRAS GROUP INC.

STOCK OPTION AGREEMENT

     AGREEMENT made as of the       day of , 20___, by and between Mistras Group Inc. (the
“Company”), and            (the “Optionee”).

     W I T N E S S E T H:

     WHEREAS, pursuant to the Mistras Group Inc. 2007 Stock Option Plan (the “Plan”), the Company
desires to grant to the Optionee, and the Optionee desires to accept, an option to purchase shares
of the Company’s common stock (the “Common Stock”) upon the terms and conditions set forth in this
Agreement and the Plan.

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Grant of Option. The Company hereby grants to the Optionee an option (the “Option”)
to purchase up to shares of Common Stock at an exercise price per share of $80.00 upon the terms
and conditions set forth in this Agreement and the Plan. A copy of the Plan is attached to the
Agreement. Capitalized terms that are used but not defined in the Agreement shall have the meanings
ascribed to them by the Plan.

     2. Incentive Stock Option Status. To the maximum extent permitted by law, the Option
shall constitute an “incentive stock option” within the meaning of Section 422 of the Internal
Revenue Code of 1986

     3. Option Term. Unless terminated sooner, the Option shall expire if and to the extent
it is not exercised within ten years from the date hereof.

     4. Vesting of Option. Except as otherwise provided herein or the Plan, the Option
shall vest in accordance with the following schedule based upon the Optionee’s continuous
employment or other service with the Company or its affiliates following the date hereof; provided,
however, the Option will not be exercisable, whether or not otherwise vested pursuant to this
Section, unless and until the attainment of the performance objectives described in Exhibit A
annexed to this Agreement.

	 	 	 	 	 
	Continuous Service	 	Vested Percentage
	Less than 1 Year
	 	 	0	%
	At least 1 Year
	 	 	25	%
	At least 2 Years
	 	 	50	%
	At least 3 Years
	 	 	75	%
	4 or more Years
	 	 	100	%

     5. Termination of Employment. Unless the Committee determines otherwise in accordance
with the Plan, upon the termination of the Optionee’s employment or other service with the Company
and its affiliates (“Termination of Employment”):

1

 

          (a) that portion of the Option that is not then vested and exercisable will immediately
terminate; and

          (b) that portion of the Option that is then vested and exercisable will terminate (1) 30 days
following the Termination of Employment if it occurs for any reason other than death, termination
by the Company or an affiliate due to Disability or termination by the Company or an affiliate for
Cause (as those terms are defined in the Plan), (2) 180 days following the Termination of
Employment if it occurs due to the Optionee’s death, (c) 180 days following the Termination of
Employment if it is triggered by the Company or an affiliate due to the Optionee’s Disability or,
if the Optionee dies during such 180-day period, 90 days after the Optionee’s death, or (d)
immediately upon the Termination of Employment if it is triggered by the Company or an affiliate
for Cause.

Notwithstanding the provisions of this Section, in no event may the Option be exercised after the
expiration of its stated term or before it becomes vested and exercisable.

     6. Exercise Procedures. If and to the extent the Option is vested and exercisable, it
may be exercised by transmitting to the Secretary of the Company (or other person designated by the
Committee) (a) a written notice specifying the number of whole shares to be purchased pursuant to
the Option exercise, (b) payment in full of the exercise price and the withholding taxes due in
connection with the exercise, unless and except to the extent that other arrangements satisfactory
to the Committee, in its sole and absolute discretion, have been made for such payments, and (c) if
the shares of the Common Stock to be issued upon exercise of the Option have not been registered
under the Securities Act of 1933, as amended, an executed representation letter in the form of
Exhibit B attached hereto. The exercise price and applicable tax withholding obligation may be paid
in cash or by check or, at the sole and absolute discretion of the Committee, by delivery of
previously-owned shares of Common Stock, any other form of legal consideration that may be
acceptable to the Committee, or a combination of any of the foregoing. If the Common Stock becomes
publicly-traded, the Committee may permit payment to be made pursuant to a cashless exercise
program established and made available through a registered broker-dealer in accordance with
applicable law.

     7. Nontransferability. This Option is not assignable or transferable other than to a
beneficiary designated to receive this Option upon the Optionee’s death in a manner acceptable to
the Company or by will or the laws of descent and distribution, and this Option shall be
exercisable during the lifetime of the Optionee only by the Optionee (or, in the event of the
Optionee’s incapacity, the Optionee’s legal representative or guardian). Any attempt by the
Optionee or any other person claiming against, through or under the Optionee to cause this Option
or any part of it to be transferred or assigned in any manner and for any purpose shall be null and
void and without effect upon the Company, the Optionee or any other person.

     8. Stockholders’ Agreement. If the Option is exercised before the completion of an
initial public offering of the Company’s Common Stock, then such exercised shall be conditioned
upon the Optionee’s (or beneficiary’s) becoming a party to a stockholders’ agreement by and among
the Company and some or all of its stockholders (which agreement may include, among other things,
transfer restrictions, rights of first refusal, repurchase rights and market standoff conditions
with respect to the shares acquired pursuant to the exercise of the

2

 

Option), as such agreement may be amended from time to time, or any subsequent stockholders’
agreement (the “Stockholders’ Agreement”).

     9. Restriction on Transfer of Shares. At any time during which the Company’s equity
securities are not publicly-traded, any shares acquired pursuant to the exercise of this Option
shall not be sold, encumbered, disposed of or otherwise transferred without the prior written
consent of the Company, which may be withheld for any or no reason. Any permitted transferee shall
acquire the transferred shares subject to such restrictions and conditions, including, without
limitation, becoming a party to the Stockholders’ agreement, as the Committee may prescribe, taking
into account the restrictions and conditions to which such shares were or would have been subject
in the hands of the transferor. The restrictions and conditions of this Section shall be reflected
in a legend on the certificate or other evidence for the Common Stock to which this Section
applies. Notwithstanding the foregoing, the restrictions of this Section shall not apply if and to
the extent the shares of Common Stock acquired pursuant to this Option are subject to a right of
first refusal under the Stockholders’ Agreement.

     10. Company Call Rights. Upon the termination of the Optionee’s employment with the
Company or its affiliates, the Company may at any time within one year after the termination date
repurchase any shares of Common Stock previously acquired by the Optionee (or by the Optionee’s
beneficiary, as the case may be) pursuant to the exercise of the Option at a repurchase price equal
to (a) the exercise price paid by the Optionee for the purchase of the shares plus 15% if the
Optionee’s employment was terminated for any reason other than voluntarily by the Optionee or by
the Company for Cause, and (b) the lesser of the Fair Market Value per share on the date of
termination or the exercise price paid by the Optionee for the purchase of the shares by exercise
of the Option, if the Optionee’s employment is terminated voluntarily by the Optionee or by the
Company for Cause. If the Company elects to exercise a call right under this Section, it shall do
so by delivering to the Optionee a written notice of such election, specifying the number of shares
to be purchased and the closing date and time that is within the one year period. Such closing
shall take place at the Company’s principal executive offices. At such closing, the Company shall
pay the Optionee the repurchase price as specified in this Section in cash, or by cancellation of
indebtedness of the Optionee to the Company, provided, however, that the Company may elect to pay
the repurchase price in as many as four substantially equal installments with the first installment
being payable at the closing and subsequent installments paid on each of the first three
anniversary dates of the closing. The installment payments shall bear interest at an annual rate of
5% or, if greater, the minimum annual rate necessary to avoid imputed income under the applicable
provisions of the Internal Revenue Code. Notwithstanding the foregoing, the Company shall cease to
have call rights pursuant to this Section if and when the Company’s equity securities become
publicly-traded. The restriction in this Section shall be reflected in the Common Stock legend for
any shares to which this Section applies.

     11. Provisions of the Plan Control. This Agreement is subject to all the terms,
conditions and provisions of the Plan and to such rules, regulations and interpretations as may be
established or made by the Committee acting within the scope of its authority and responsibility
under the Plan. The Optionee acknowledges receipt of a copy of the Plan prior to execution of this
Agreement. The applicable provisions of the Plan shall govern in any situation where this Agreement
is silent or where the applicable provisions of this Agreement are contrary to or not reconcilable
with such Plan provisions.

3

 

     12. No Employment Rights. Nothing contained herein or in the Plan shall confer upon
the Optionee any right with respect to the continuation of the Optionee’s employment or other
service with the Company or an affiliate or interfere in any way with the right of the Company and
its affiliates at any time to terminate such employment or other service or to increase or
decrease, or otherwise adjust, the other terms and conditions of the Optionee’s employment or other
service.

     13. No Stockholder Rights. Neither the Optionee, nor any person entitled to exercise
the Optionee’s rights in the event of the Optionee’s death, shall have any of the rights and
privileges of a stockholder with respect to the shares subject to this Option, until certificates
for shares have been issued upon the proper exercise of the Option.

     14. Compliance with Law. Shares of Common Stock shall not be issued pursuant to the
exercise of the Option unless such exercise and the issuance and delivery of such shares pursuant
thereto shall comply with all relevant provisions of law, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act and the requirements of any stock exchange or
market upon which the Common Stock may then be listed. All certificates for shares of Common Stock
delivered hereunder shall be subject to such stock-transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations, and other requirements of the Securities
and Exchange Commission, any stock exchange or market upon which the Common Stock may then be
listed, and any applicable federal or state securities law. The Committee may cause a legend or
legends to be placed on any such certificates to make appropriate reference to such restrictions.

     15. Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and may not be amended, except as provided in the
Plan, other than by a written instrument executed by the parties hereto.

4

 

     16. Governing Law. All rights and obligations under this Agreement and the Plan shall be
governed by and construed in accordance with the laws of the State of Delaware, without regard to
its principles of conflict of laws.

     IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this
Agreement, and the Optionee has executed this Agreement, effective as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	MISTRAS GROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Sotirios J. Vahaviolos
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

5

 

EXHIBIT A

PERFORMANCE VESTING CONDITIONS

 

 

EXHIBIT B

Mistras Group Inc. 195

Clarksville Road Princeton

Junction, NJ 08550

[Date]

Ladies and Gentlemen:

In connection with the exercise by the undersigned, , of an option to purchase shares of Common
Stock (the “Common Stock”), of Mistras Group Inc. (the “Company”), the undersigned hereby
represents, warrants and agrees as of the date hereof that:

(i) He/she will not offer, sell, transfer or otherwise dispose of the Common Stock unless
(A) an effective registration statement under the Securities Act of 1933, as amended (the
“Securities Act”), covers the disposition of such securities or (B) he/she has delivered to
the Company an opinion of counsel, reasonably satisfactory to Company, that such offer,
sale, transfer or other disposition will not require registration of such securities under
the Securities Act.

(ii) He/she understands that the shares of Common Stock must be held indefinitely unless
they are subsequently registered under the Securities Act or an exemption from such
registration is available. He/she has been advised or is aware of the provisions of Rule
144, which permits limited resale of shares subject to the satisfaction of certain
conditions, and understands that such Rule is not now, and may not become, available for
resale of the shares of Common Stock.

(iii) He/she is familiar with the Company’s business, management and financial affairs.
He/she has knowledge and experience in financial and business matters and is capable of
evaluating the merits and risks of an investment in the Common Stock and of making an
informed decision. He/she recognizes that the purchase of the Common Stock involves a
substantial degree of risk, and he/she has the financial ability to bear the economic risk
of this investment. He/she has adequate means for providing for any current needs and
contingencies and has no need for liquidity with respect to such investment in the Company.
He/she has determined that the Common Stock is a suitable investment and at this time he/she
can bear a complete loss of such investment.

	 	 	 	 	 
	 

	 	Very truly yours,

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]