Document:

exv4w14

Exhibit 4.14

COMPAGNIE GÉNÉRALE DE GÉOPHYSIQUE-VERITAS

AND

THE GUARANTORS PARTY HERETO

$350,000,000

91/2% Senior Notes due 2016

REGISTRATION RIGHTS AGREEMENT

Dated as of June 9, 2009

CREDIT SUISSE SECURITIES (EUROPE) LIMITED

BNP PARIBAS

 

 

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of
June 9, 2009 by and among Compagnie Générale de Géophysique-Veritas, a société anonyme organized
under the laws of the Republic of France and registered at the Paris Commercial Registry under
Number B 969 202 241 (69B00224), (the “Company”), CGGVeritas Services Holding B.V.,
CGGVeritas Services Holding (U.S.) Inc., CGGVeritas Land (U.S.) Inc., CGGVeritas Services (U.S.)
Inc., Veritas Investments Inc., Viking Maritime Inc., Veritas Geophysical (Mexico) LLC, Veritas DGC
Asia Pacific Ltd., Alitheia Resources Inc., CGG Americas, Inc., CGG Canada Services Ltd., CGG
Marine Resources Norge A/S, Sercel Inc., Sercel Canada Ltd. and Sercel Australia Pty Ltd. and any
subsidiary of the Company that becomes a guarantor of the Notes (as defined below) subsequent to
the date hereof pursuant to the terms of the Indenture (as defined below) (each a
“Guarantor” and, collectively, the “Guarantors”), and Credit Suisse Securities
(Europe) Limited and BNP Paribas (each an “Initial Purchaser” and, collectively, the
“Initial Purchasers”), who have agreed to purchase $350,000,000 aggregate principal amount
of the Company’s 91/2% Senior Notes due 2016 (the “Initial Notes”) pursuant to the Purchase
Agreement (as defined below).

     This Agreement is made pursuant to the Purchase Agreement, dated June 2, 2009 (the
“Purchase Agreement”), by and among the Company and the Initial Purchasers. In order to
induce the Initial Purchasers to purchase the Initial Notes, the Company has agreed to provide the
registration rights set forth in this Agreement. The execution and delivery of this Agreement is a
condition to the obligations of the Initial Purchasers set forth in Section 7(j) of the Purchase
Agreement. Capitalized terms used herein and not otherwise defined shall have the meaning assigned
to them in the Indenture (as defined).

     The parties hereby agree as follows:

SECTION 1.

DEFINITIONS

     As used in this Agreement, the following capitalized terms shall have the following meanings:

     Act: The U.S. Securities Act of 1933, as amended.

     Advice: As defined in Section 6(d) hereof.

     Affiliate: As defined in Rule 144 under the Act.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Closing Date: The date hereof.

     Commission: The U.S. Securities and Exchange Commission.

     Company: As defined in the preamble hereto.

 

 

     Consummate: The Registered Exchange Offer shall be deemed “Consummated” for purposes
of this Agreement upon the occurrence of (i) the filing and effectiveness under the Act of the
Exchange Offer Registration Statement relating to the Registered Exchange Offer, (ii) the
maintenance of such Registration Statement continuously effective and the keeping of the Registered
Exchange Offer open for a period not less than the minimum period required pursuant to Section 3(b)
hereof, and (iii) the delivery by the Company to the Registrar under the Indenture of Exchange
Notes in the same aggregate principal amount as the aggregate principal amount of Initial Notes
that were validly tendered and not withdrawn by Holders thereof pursuant to the Registered Exchange
Offer.

     Effectiveness Target Date: As defined in Section 5 hereof.

     Exchange Act: The U.S. Securities Exchange Act of 1934, as amended.

     Exchange Offer Registration Statement: The Registration Statement relating to the
Registered Exchange Offer, including the related Prospectus.

     Exchange Notes: The Company’s 91/2% Senior Notes due 2016 to be issued pursuant to the
Indenture (a) in the Registered Exchange Offer and (b) as contemplated by Section 6(c)(xii) hereof.

     Exempt Resales: The transactions in which the Initial Purchasers propose to sell the
Initial Notes (i) to certain “qualified institutional buyers,” as such term is defined in Rule 144A
under the Act and (ii) outside the United States to certain non-U.S. Persons pursuant to the
requirements of Rule 903 under the Act.

     FINRA: The Financial Industry Regulatory Authority, Inc.

     Freely Tradeable: An Initial Note at any time of determination if at such time of
determination (i) it may be sold to the public pursuant to Rule 144(b)(1)(ii) under the Securities
Act by a person that is not an affiliate (as defined in Rule 144 under the Securities Act) of the
Company and (ii) it does not bear any restrictive legends relating to the Securities Act.

     Guarantor: As defined in the preamble hereto.

     Holder and Holders: As defined in Section 2(b) hereof.

     Indemnified Holder: As defined in Section 8(a) hereof.

     Indenture: The Indenture, dated as of June 9, 2009, between the Company and The Bank
of New York Mellon Trust Company, National Association, as the Trustee, pursuant to which the Notes
are to be issued, as such Indenture is amended or supplemented from time to time in accordance with
the terms thereof.

     Initial Notes: As defined in the preamble hereto.

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     Initial Purchaser and Initial Purchasers: As defined in the preamble hereto.

     Interest Payment Date: Each May 15 and November 15, beginning with November 15, 2009.

     Notes: The Initial Notes and the Exchange Notes.

     Prospectus: The prospectus included in a Registration Statement at the time such
Registration Statement is declared or becomes effective, as amended or supplemented by any
prospectus supplement and by all other amendments thereto, including post-effective amendments, and
all material incorporated by reference into such Prospectus.

     Record Holder: With respect to any Special Interest Payment Date relating to Notes,
each Person who is a Holder of Notes on the record date with respect to the Interest Payment Date
on which such Special Interest Payment Date shall occur.

     Registered Exchange Offer: The offer, registered by the Company under the Act
pursuant to a Registration Statement, of the Exchange Notes to the Holders of all outstanding
Initial Notes validly tendered and not withdrawn in such exchange offer by such Holders.

     Registration Default: As defined in Section 5 hereof.

     Registration Statement: Any registration statement of the Company relating to (a) an
offering of Exchange Notes and the Subsidiary Guarantees pursuant to a Registered Exchange Offer or
(b) the registration for resale of Transfer Restricted Securities pursuant to the Shelf
Registration Statement, in each case, which is filed pursuant to the provisions of this Agreement
and including the related Prospectus.

     Shelf Filing Deadline: As defined in Section 4 hereof.

     Shelf Registration Statement: As defined in Section 4 hereof.

     Special Interest Payment Date: With respect to the Initial Notes, each Interest
Payment Date.

     Subsidiary Guarantees: The joint and several guarantees of the Company’s payment
obligations under the Notes by the Guarantors to the extent required by the terms of the Indenture.

     TIA: The U.S. Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in
effect on the date of the Indenture.

     Transfer Restricted Securities: Each (a) Initial Note until (i) the date on which
such Initial Note has been exchanged by a Person other than a Broker-Dealer for an Exchange Note in
the Registered Exchange Offer, (ii) the date on which such Initial Note has been disposed of in
accordance with the Shelf Registration Statement in a transaction registered thereunder and the
purchasers thereof have been issued Exchange Notes or (iii)

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the date on which such Initial Note is Freely Tradeable and (b) Exchange Note until, following
the exchange by a Broker-Dealer in the Registered Exchange Offer of an Initial Note for an Exchange
Note, the date on which such Exchange Note is sold pursuant to the “Plan of Distribution”
contemplated in the Exchange Offer Registration Statement to a purchaser who receives from such
Broker-Dealer on or prior to the date of such sale a copy of the Prospectus contained in the
Exchange Offer Registration Statement.

     Underwritten Registration or Underwritten Offering: A registration or an offering in
which securities of the Company are sold to an underwriter for reoffering to the public.

SECTION 2.

SECURITIES SUBJECT TO THIS AGREEMENT

     (a) Initial Notes. The securities entitled to the benefits of this Agreement are the
Initial Notes.

     (b) Holders of Initial Notes. A Person is deemed to be a holder of Initial Notes
(each, a “Holder” and, collectively, the “Holders”) whenever such Person owns
Initial Notes of record.

SECTION 3.

REGISTERED EXCHANGE OFFER

     (a) Unless the Registered Exchange Offer shall not be permissible under applicable law or
Commission policy (after the procedures set forth in Section 6(a) below have been complied with),
the Company and the Guarantors shall (i) cause to be filed with the Commission on or before the
120th day after the Closing Date, a Registration Statement under the Act relating to the Exchange
Notes, the Subsidiary Guarantees and the Registered Exchange Offer, (ii) use their reasonable best
efforts to cause such Registration Statement to become effective on or before the 180th day after
the Closing Date, (iii) in connection with the foregoing, file (A) all pre-effective amendments to
such Registration Statement as may be necessary in order to cause such Registration Statement to
become effective, (B) if applicable, a post-effective amendment to such Registration Statement
pursuant to Rule 430A under the Act and (C) subject to the proviso in Section 6(c)(xi) hereof,
cause all necessary filings in connection with the registration and qualification of the Exchange
Notes and the Subsidiary Guarantees to be made under the Blue Sky laws of such jurisdictions as are
necessary to permit the Registered Exchange Offer to be Consummated, and (iv) upon the
effectiveness of such Registration Statement, commence, and within the time periods contemplated by
Section 3(b) hereof Consummate, the Registered Exchange Offer. The Exchange Offer Registration
Statement shall be on the appropriate form under the Act permitting registration of the Exchange
Notes to be offered in exchange for the Initial Notes and permitting resales of the Exchange Notes
held by Broker-Dealers that tendered into the Registered Exchange Offer Initial Notes that such
Broker-Dealers acquired for their own account as a result of market-making activities or other
trading activities (other than Initial Notes acquired

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directly from the Company or any of its Affiliates) as contemplated by Section 3(c) below.

     (b) The Company and the Guarantors shall cause the Exchange Offer Registration Statement to be
effective continuously and shall keep the Registered Exchange Offer open for a period of not less
than the minimum period required under applicable federal and state securities laws to Consummate
the Registered Exchange Offer; provided, however, that in no event shall such period be less than
20 Business Days. The Company and the Guarantors shall cause the Registered Exchange Offer to
comply with all applicable federal and state securities laws. No securities other than the
Exchange Notes and the Subsidiary Guarantees shall be included in the Exchange Offer Registration
Statement. The Company and the Guarantors shall use their reasonable best efforts to cause the
Registered Exchange Offer to be Consummated on the earliest practicable date after the Exchange
Offer Registration Statement has become effective, but in any event on or prior to the 210th day
after the Closing Date.

     (c) The Company and the Guarantors shall indicate in a “Plan of Distribution” section
contained in the Exchange Offer Registration Statement that any Broker-Dealer who holds Initial
Notes that were acquired for its own account as a result of market-making activities or other
trading activities (other than Initial Notes acquired directly from the Company or any of its
Affiliates) may exchange such Initial Notes pursuant to the Registered Exchange Offer; however,
such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the Act and must,
therefore, deliver a prospectus meeting the requirements of the Act in connection with its initial
sale of the Exchange Notes received by such Broker-Dealer in the Registered Exchange Offer, which
prospectus delivery requirement may be satisfied by the delivery by such Broker-Dealer of the
Prospectus contained in the Exchange Offer Registration Statement. Such “Plan of Distribution”
section shall also contain all other information with respect to such resales by such
Broker-Dealers that the Commission may require in order to permit such resales pursuant thereto,
but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of
Initial Notes held by any such Broker-Dealer except to the extent required by the Commission as a
result of a change in policy after the date of this Agreement.

     The Company and the Guarantors shall use their reasonable best efforts to keep the Exchange
Offer Registration Statement continuously effective, supplemented and amended as required by and
subject to the provisions of Sections 6(a) and 6(c) below to the extent necessary to ensure that
the related Prospectus is available for resales of Notes acquired by Broker-Dealers for their own
accounts as a result of market-making activities or other trading activities (other than Initial
Notes acquired directly from the Company or any of its Affiliates), and to ensure that it conforms
with the requirements of this Agreement, the Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period of one year from the Consummation Date or
such shorter period as will terminate when no Initial Notes covered by such Registration Statement
are outstanding.

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     The Company and the Guarantors shall provide sufficient copies of the latest version of such
Prospectus to Broker-Dealers promptly upon request at any time during such period in order to
facilitate such resales.

SECTION 4.

SHELF REGISTRATION

     (a) Shelf Registration. If any of the Initial Notes are not Freely Tradeable by the
180th day after the Closing Date and either (i) the Company and the Guarantors are not
required to file an Exchange Offer Registration Statement or not permitted to Consummate the
Registered Exchange Offer because the Registered Exchange Offer is not permitted by applicable law
or Commission policy (after the procedures set forth in Section 6(a) below have been complied with)
or (ii) any Holder of Transfer Restricted Securities notifies the Company in writing prior to the
20th Business Day following the Consummation of the Registered Exchange Offer that (A) such Holder
is prohibited by applicable law or Commission policy from participating in the Registered Exchange
Offer, or (B) such Holder may not resell the Exchange Notes acquired by it in the Registered
Exchange Offer to the public without delivering a prospectus and the Prospectus contained in the
Exchange Offer Registration Statement is not available for such resales by such Holder, then the
Company and the Guarantors shall use their reasonable best efforts to:

     (x)  cause to be filed a shelf registration statement pursuant to Rule 415 under the
Act, which may be an amendment to the Exchange Offer Registration Statement (in either
event, the “Shelf Registration Statement”) relating to all Transfer Restricted
Securities in the case of Section 4(a)(i) or the Transfer Restricted Securities specified
in any notice in the case of Section 4(a)(ii) on or prior to the earliest to occur of (1)
the 90th day after the date on which the Company determines that it is not required to
file the Exchange Offer Registration Statement as a result of Section 4(a)(i) hereof and
(2) the 90th day after the date on which the Company receives notice from a Holder of
Transfer Restricted Securities as contemplated by Section 4(a)(ii) above (such earliest
date being the “Shelf Filing Deadline”), which Shelf Registration Statement shall
provide for resales of all Transfer Restricted Securities the Holders of which shall have
provided the information required pursuant to Section 4(b) hereof; and

     (y)  cause such Shelf Registration Statement to become effective on or before the
180th day after the Shelf Filing Deadline.

     The Company and the Guarantors shall use their reasonable best efforts to keep such Shelf
Registration Statement continuously effective, supplemented and amended as required by the
provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available
for resales of Transfer Restricted Securities by the Holders thereof entitled to the benefit of
this Section 4(a), and to ensure that it conforms with the requirements of this Agreement, the Act
and the policies, rules and regulations of the Commission as announced from time to time, until the
earlier of (a) two years following

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the Closing Date and (b) such earlier date when no Transfer Restricted Securities covered by
such Shelf Registration Statement remain outstanding.

     Holders of Transfer Restricted Securities that do not give the written notice within the 20
Business Day period set forth above in this Section 4(a), if required to be given, will no longer
have any registration rights pursuant to this Section 4 and will not be entitled to any special
interest pursuant to Section 5 hereof in respect of the Company’s obligations with respect to the
Shelf Registration Statement.

     (b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer
Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and
until such Holder furnishes to the Company in writing, within 10 Business Days after receipt of a
request therefor, such information as the Company may reasonably request for use in connection with
any Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. No
Holder of Transfer Restricted Securities shall be entitled to special interest pursuant to Section
5 hereof if such Holder shall have failed to provide all such reasonably requested information
within such period. Each Holder as to which any Shelf Registration Statement is being effected
agrees to furnish promptly to the Company all information required to be disclosed in order to make
the information previously furnished to the Company by such Holder not materially misleading.

SECTION 5.

SPECIAL INTEREST

If (i) any of the Registration Statements required by this Agreement to be filed is not filed with
the Commission on or prior to the date specified for such filing in this Agreement, (ii) any of
such Registration Statements has not been declared effective by the Commission or has not become
effective on or prior to the date specified for such effectiveness in this Agreement (the
“Effectiveness Target Date”), whether or not the Company and the Guarantors have breached
any obligations to use their reasonable best efforts to cause any such Registration Statement to be
declared, or become, effective, (iii) the Registered Exchange Offer has not been Consummated within
210 days of the Closing Date with respect to the Exchange Offer Registration Statement or (iv)
subject to Section 6(c)(i) hereof, any Registration Statement required by this Agreement is filed
and has been declared, or has become, effective but shall thereafter cease to be effective or fail
to be usable for its intended purpose without being succeeded within 10 Business Days by a
post-effective amendment to such Registration Statement that cures such failure and that is itself
declared or becomes effective within 10 Business Days of the date of filing of such post-effective
amendment (each such event referred to in clauses (i) through (iv), a “Registration
Default”), the Company and the Guarantors hereby jointly and severally agree to pay special
interest to each Holder of Initial Notes in an amount equal to $.05 per week per $1,000 principal
amount of Initial Notes held by such Holder for each week or portion thereof that the Registration
Default continues with respect to the first 90-day period immediately following the occurrence of
such Registration Default. The amount of the special interest shall increase by an additional $.05
per week

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per $1,000 in principal amount of Initial Notes with respect to each subsequent 90-day period until
all Registration Defaults have been cured, up to a maximum amount of special interest of $.30 per
week per $1,000 principal amount of Initial Notes provided that the Company shall in no event be
required to pay special interest for more than one Registration Default at any given time. All
accrued special interest shall be paid to Record Holders by the Company on each Special Interest
Payment Date following the accrual thereof, in the same manner as provided in the Indenture and the
Notes for the payment of interest on the Notes. The accrual of special interest will cease on the
earlier of a) the cure of all Registration Defaults relating to any particular Initial Notes and b)
the later of (1) two years from the Closing Date and (2) two years from the latest date on which
the Company or any of its Affiliates has resold during the two year period commencing on the
Closing Date any of the Initial Notes they had acquired since the Closing Date.

SECTION 6.

REGISTRATION PROCEDURES

     (a) Exchange Offer Registration Statement. In connection with the Registered Exchange
Offer, the Company and the Guarantors shall comply with all of the applicable provisions of Section
6(c) below, shall use their reasonable best efforts to effect such exchange and to permit the sale
of Initial Notes being sold in accordance with the intended method or methods of distribution
thereof, and shall comply with all of the following provisions:

     (i) If in the reasonable opinion of counsel to the Company there is a question as to
whether the Registered Exchange Offer is permitted by applicable law, the Company and the
Guarantors hereby agree to seek a no-action letter or other favorable decision from the
Commission allowing the Company and the Guarantors to Consummate the Registered Exchange
Offer for such Initial Notes and to permit the resale of Exchange Notes by Broker-Dealers
that tendered in the Registered Exchange Offer Initial Notes that such Broker-Dealers
acquired for their own account as a result of market-making activities or other trading
activities (other than Initial Notes acquired directly from the Company or any of its
Affiliates) being sold in accordance with the intended method or methods of distribution
thereof. The Company and the Guarantors hereby agree to use their reasonable best efforts
to pursue the issuance of such a decision to the Commission staff level but shall not be
required to take commercially unreasonable action to effect a change of Commission policy.

     (ii) As a condition to its participation in the Registered Exchange Offer, each Holder
of Initial Notes (including, without limitation, any Holder who is a Broker-Dealer) shall
furnish, upon the request of the Company, prior to the Consummation of the Registered
Exchange Offer, a written representation to the Company (which may be contained in the
letter of transmittal contemplated by the Exchange Offer Registration Statement) to the
effect that, at the time of Consummation of the Registered Exchange Offer, (A) any Exchange
Notes

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received by such Holder will be acquired in the ordinary course of its business, (B)
such Holder will have no arrangement or understanding with any person to participate in
distribution of the Initial Notes or the Exchange Notes within the meaning of the Act, (C)
if the Holder is not a Broker-Dealer or is a Broker-Dealer but will not receive Exchange
Notes for its own account in exchange for Initial Notes, neither the Holder nor any such
other Person is engaged in or intends to participate in a distribution of the Exchange
Notes, and (D) such Holder is not an Affiliate of the Company. If the Holder is a
Broker-Dealer that will receive Exchange Notes for its own account in exchange for Initial
Notes, it will represent that the Initial Notes to be exchanged for the Exchange Notes were
acquired by it as a result of market-making activities or other trading activities, and
will acknowledge that it will deliver a prospectus meeting the requirements of the Act in
connection with any resale of such Exchange Notes. It is understood that, by acknowledging
that it will deliver, and by delivering, a prospectus meeting the requirements of the Act
in connection with any resale of such Exchange Notes, the Holder is not admitting that it
is an “underwriter” within the meaning of the Act.

     (iii) Prior to effectiveness of the Exchange Offer Registration Statement, the Company
and the Guarantors shall provide a supplemental letter to the Commission (A) stating that
the Company and the Guarantors are registering the Registered Exchange Offer in reliance on
the position of the Commission enunciated in Exxon Capital Holdings Corporation (available
May 13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991) and, if applicable,
any no-action letter obtained pursuant to clause (i) above and (B) including a
representation that neither the Company nor any Guarantor has entered into any arrangement
or understanding with any Person to distribute the Exchange Notes to be received in the
Registered Exchange Offer and that, to the best of the Company’s information and belief,
each Holder participating in the Registered Exchange Offer is acquiring the Exchange Notes
in its ordinary course of business and has no arrangement or understanding with any Person
to participate in the distribution of the Exchange Notes received in the Registered
Exchange Offer.

     (b) Shelf Registration Statement. In connection with the Shelf Registration
Statement, if required, the Company and the Guarantors shall comply with all the provisions of
Section 6(c) below and shall use their reasonable best efforts to effect such registration to
permit the sale of the Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof (as indicated in the information furnished to the Company
pursuant to Section 4(b) hereof) and, pursuant thereto, the Company and the Guarantors will prepare
and file with the Commission in accordance with Section 4(a) hereof a Shelf Registration Statement
to effect such registration on any appropriate form under the Act, which form shall be available
for the sale of the Transfer Restricted Securities in accordance with the intended method or
methods of distribution thereof within the time periods and otherwise in accordance with the
provisions hereof.

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     (c) General Provisions. In connection with any Registration Statement and any
Prospectus required by this Agreement to permit the sale or resale of Initial Notes (including,
without limitation, any Registration Statement and the related Prospectus required to permit
resales of Notes by Broker-Dealers as contemplated herein), the Company and the Guarantors shall
during the periods specified in Sections 3 and 4 hereof, as applicable:

     (i) use their reasonable best efforts to keep such Registration Statement continuously
effective and provide all requisite financial statements (including, if required by the Act
or any regulation thereunder, financial statements of the Guarantors, if any) for the
period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event
that would cause any such Registration Statement or the Prospectus contained therein (A) to
contain an untrue statement of material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were
made, not misleading or (B) not to be effective and usable for the resale of Initial Notes
during the period required by this Agreement, the Company and the Guarantors shall file
promptly an appropriate amendment to such Registration Statement, in the case of clause
(A), correcting any such misstatement or omission, and, in the case of either clause (A) or
(B), use their reasonable best efforts to cause such amendment to be declared or become
effective and such Registration Statement and the related Prospectus to become usable for
their intended purpose(s) as soon as practicable thereafter; provided, however, if (A) the
full Board of Directors of the Company determines in good faith that it is in the best
interests of the Company not to disclose the existence of or facts surrounding any proposed
or pending material corporate transaction involving the Company or any of its subsidiaries
and (B) the Company notifies the Holders, pursuant to Section 6(c)(iii)(D) hereof, within
two Business Days after such Board of Directors makes such determination, the Company may
allow the Shelf Registration Statement to fail to be effective and usable as a result of
such nondisclosure for up to 120 days during the period of effectiveness required by
Section 4 hereof, but in no event for a period in excess of 45 consecutive days;

     (ii) prepare and file with the Commission such amendments and post-effective
amendments to the Registration Statement as may be necessary to keep the Registration
Statement effective for the applicable period set forth in Section 3 or 4 hereof; cause the
Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 under the Act, and to comply fully with the applicable
provisions of Rules 424 and 430A under the Act in a timely manner; and comply with the
provisions of the Act with respect to the disposition of all securities covered by such
Registration Statement during the applicable period in accordance with the intended method
or methods of distribution by the sellers thereof set forth in such Registration Statement
or supplement to the Prospectus;

     (iii) except in the case of the Exchange Offer Registration Statement, advise the
underwriter(s), if any, and selling Holders promptly and, if requested

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by any such Person, to confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with respect to any
Registration Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the Registration
Statement or amendments or supplements to the Prospectus or for additional information
relating thereto, (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement under the Act or of the suspension by any state
securities commission of the qualification of the Initial Notes for offering or sale in any
jurisdiction, or the initiation of any proceeding for any of the preceding purposes, and
(D) of the existence of any fact or the happening of any event that makes any statement of
a material fact made in the Registration Statement, the Prospectus, any amendment or
supplement thereto, or any document incorporated by reference therein untrue, or that
requires the making of any additions to or changes in the Registration Statement or the
Prospectus in order to make the statements therein not misleading. If at any time the
Commission shall issue any stop order suspending the effectiveness of the Registration
Statement, or any state securities commission or other regulatory authority shall issue an
order suspending the qualification or exemption from qualification of the Initial Notes
under state securities or Blue Sky laws, the Company and the Guarantors shall use their
reasonable best efforts to obtain the withdrawal or lifting of such order at the earliest
possible time;

     (iv) in the case of a Shelf Registration Statement, furnish to each of the selling
Holders and each of the underwriter(s), if any, before filing with the Commission, copies
of any Registration Statement or any Prospectus included therein or any amendments or
supplements to any such Registration Statement or Prospectus (but excluding any documents
incorporated by reference as a result of the Company’s periodic reporting requirements
under the Exchange Act), and neither the Company nor any Guarantors shall file any such
Registration Statement or Prospectus or any amendment or supplement to any such
Registration Statement or Prospectus (excluding all such documents incorporated by
reference as a result of the Company’s periodic reporting requirements under the Exchange
Act) to which a selling Holder of Transfer Restricted Securities covered by such
Registration Statement or the underwriter(s), if any, shall reasonably object within five
Business Days after the receipt thereof. A selling Holder or underwriter, if any, shall be
deemed to have reasonably objected to such filing if such Registration Statement,
amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains an
untrue statement of material fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading;

     (v) in the case of a Shelf Registration Statement, promptly following the filing of
any document that is to be incorporated by reference into a Registration Statement or
Prospectus, provide copies of such document to the selling Holders and to the
underwriter(s), if any, make the Company’s representatives available for discussion of such
document and other customary due diligence matters, and

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include such information in such document prior to the filing thereof as such selling
Holders or underwriter(s), if any, reasonably may request;

     (vi) in the case of a Shelf Registration Statement, make available at reasonable times
for inspection by the selling Holders, any underwriter participating in any disposition
pursuant to such Registration Statement, and any attorney or accountant retained by such
selling Holders or any of the underwriter(s), all relevant financial and other records and
pertinent corporate documents and properties of the Company and the Guarantors and cause
the Company’s and the Guarantors’ officers, directors and employees to supply all
information reasonably requested by any such Holder, underwriter, attorney or accountant in
connection with such Registration Statement subsequent to the filing thereof and prior to
its effectiveness; provided, however, that the foregoing inspection and information
gathering (i) shall be coordinated on behalf of the selling Holders, underwriters, or any
representative thereof, by one counsel, who shall be Cravath, Swaine & Moore LLP or such
other counsel as may be chosen by the Holders of a majority in principal amount of Transfer
Restricted Securities, and (ii) shall not be available for any such Holder who does not
agree in writing to hold such information in confidence.

     (vii) in the case of a Shelf Registration Statement, if requested by any selling
Holders or the underwriter(s), if any, promptly incorporate in any Registration Statement
or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such
information as such selling Holders and underwriter(s), if any, may reasonably request to
have included therein, including, without limitation, information relating to the “Plan of
Distribution” of the Transfer Restricted Securities, information with respect to the
principal amount of Transfer Restricted Securities being sold to such underwriter(s), the
purchase price being paid therefor and any other terms of the offering of the Transfer
Restricted Securities to be sold in such offering; and make all required filings of such
Prospectus supplement or post-effective amendment as soon as practicable after the Company
is notified of the matters to be incorporated in such Prospectus supplement or
post-effective amendment;

     (viii) in the case of a Shelf Registration Statement, furnish to each selling Holder
and each of the underwriter(s), if any, without charge, at least one copy of the
Registration Statement, as first filed with the Commission, and of each amendment thereto,
including all documents incorporated by reference therein and all exhibits (including
exhibits incorporated therein by reference);

     (ix) deliver to each selling Holder and each of the underwriter(s), if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; the Company and the
Guarantors hereby consent, subject to Section 6(d) hereof, to the use of the Prospectus and
any amendment or supplement thereto by each of the selling Holders and each of the
underwriter(s), if any, in connection with the offering and the sale of the Initial Notes
covered by

12

 

the Prospectus or any amendment or supplement thereto; provided that such use of the
Prospectus and any amendment or supplement thereto and such offering and sale conforms to
the Plan of Distribution set forth in the Prospectus and complies with the terms of this
Agreement and all applicable laws and regulations thereunder;

     (x) in the event of an Underwritten Registration, enter into such customary agreements
(including an underwriting agreement), make such customary representations and warranties,
deliver such customary documents and certificates, and take all such other customary
actions in connection therewith in order to expedite or facilitate the disposition of the
Transfer Restricted Securities pursuant to any Shelf Registration Statement contemplated by
this Agreement, all to such extent as may be reasonably requested by any Holder of Transfer
Restricted Securities or underwriter in connection with any sale or resale pursuant to any
Shelf Registration Statement contemplated by this Agreement; and, without limiting the
generality of the foregoing, the Company and the Guarantors shall:

     (A) furnish to each underwriter upon the effectiveness of the Shelf
Registration Statement:

     (1) a certificate, dated the date of effectiveness of the Shelf
Registration Statement, signed on behalf of the Company by two senior
officers, one of whom must be its Senior Executive Vice President, Finance
and Human Resources, confirming, as of such date, the matters addressed in
the officers’ certificate delivered pursuant to Section 6(e) of the
Purchase Agreement with respect to the transactions contemplated by the
Shelf Registration Statement;

     (2) an opinion or opinions, dated the date of effectiveness of the
Shelf Registration Statement, of counsel for the Company and the
Guarantors covering the matters referred to in Section 6(c) and (d) of the
Purchase Agreement with respect to the transactions contemplated by the
Shelf Registration Statement; and

     (3) a customary comfort letter, dated as of the date of effectiveness
of the Shelf Registration Statement, from the Company’s independent
accountants if such comfort letter shall be issuable to the underwriters
in accordance with the relevant accounting industry pronouncements, in the
customary form and covering matters of the type customarily covered in
comfort letters to underwriters in connection with primary underwritten
offerings, and substantially in the form of the comfort letters delivered
pursuant to Section 6(a) of the Purchase Agreement; and

13

 

     (B) deliver such other documents and certificates as may be reasonably
requested by such parties and which are customarily delivered in Underwritten
Offerings.

     (xi) prior to any public offering of Transfer Restricted Securities, cooperate with
the selling Holders, the underwriter(s), if any, and their respective counsel in connection
with the registration and qualification of the Transfer Restricted Securities under the
securities or Blue Sky laws of such jurisdictions as the selling Holders or underwriter(s)
may reasonably request and do any and all other acts or things reasonably necessary or
advisable to enable the disposition in such jurisdictions of the Transfer Restricted
Securities covered by the Shelf Registration Statement; provided, however, that neither the
Company nor the Guarantors shall be required to register or qualify as a foreign
corporation where it is not now so qualified or to take any action that would subject it to
the service of process in suits or to taxation, other than as to matters and transactions
relating to the Registration Statement, in any jurisdiction where it is not now so subject;

     (xii) issue, upon the request of any Holder of Initial Notes covered by the Shelf
Registration Statement, Exchange Notes, having an aggregate principal amount equal to the
aggregate principal amount of Initial Notes being sold by such Holder, such Exchange Notes
to be registered in the name of the purchaser(s) of such Notes, as the case may be; in
return, the Initial Notes held by such Holder shall be surrendered to the Company for
cancellation;

     (xiii) in connection with any sale of Initial Notes that will result in such
securities no longer being Transfer Restricted Securities, cooperate with the selling
Holders and the underwriter(s), if any, to facilitate the timely preparation and delivery
of certificates representing Initial Notes to be sold and not bearing any restrictive
legends; and enable such Initial Notes to be in such authorized denominations and
registered in such names as the Holders or the underwriter(s), if any, may reasonably
request at least two Business Days prior to any sale of Initial Notes made by such
underwriter(s);

     (xiv) if any fact or event contemplated by clause (c)(iii)(D) above shall exist or
have occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers of Initial
Notes, the Prospectus will not contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein not misleading;

     (xv) provide a CUSIP number for all Exchange Notes not later than the effective date
of the Registration Statement and provide the Trustee under the Indenture with one or more
global certificates for the Exchange Notes that are in a form eligible for deposit with The
Depository Trust Company;

14

 

     (xvi) in the case of a Shelf Registration Statement, cooperate and assist in any
filings required to be made with the FINRA and in the performance of any due diligence
investigation by any underwriter (including any “qualified independent underwriter”) that
is required to be retained in accordance with the rules and regulations of the FINRA;

     (xvii) otherwise use their reasonable best efforts to comply with all applicable rules
and regulations of the Commission, and make generally available to its security holders
with regard to any applicable Registration Statement, as soon as practicable, a
consolidated earnings statement meeting the requirements of Rule 158 (which need not be
audited) for a twelve-month period commencing after the effective date of the Registration
Statement;

     (xviii) cause the Indenture to be qualified under the TIA not later than the effective
date of the first Registration Statement required by this Agreement, and, in connection
therewith, cooperate with the Trustee and the Holders of Notes to effect such changes to
the Indenture as may be required for such Indenture to be so qualified in accordance with
the terms of the TIA; and execute and use their reasonable best efforts to cause the
Trustee to execute, all documents that may be required to effect such changes and all other
forms and documents required to be filed with the Commission to enable such Indenture to be
so qualified in a timely manner; and

     (xix) provide promptly to each Holder upon request each document filed with the
Commission pursuant to the requirements of Section 13 or Section 15 of the Exchange Act.

     (d) Each Holder agrees by acquisition of an Initial Note that, upon receipt of any notice from
the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D) hereof, such
Holder will keep such notice confidential and forthwith discontinue disposition of Initial Notes
pursuant to the applicable Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xiv) hereof, or until it is advised
in writing (the “Advice”) by the Company that the use of the Prospectus may be resumed, and
has received copies of any additional or supplemental filings that are incorporated by reference in
the Prospectus. If so directed by the Company, each Holder will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Initial Notes that was current at the time of receipt of such
notice. If the Company shall give any such notice, the time period regarding the effectiveness of
such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by
the number of days during the period from and including the date of the giving of such notice
pursuant to Section 6(c)(iii)(D) hereof to and including the date when each selling Holder covered
by such Registration Statement shall have received the copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(xiv) hereof or shall have received the Advice.

15

 

SECTION 7.

REGISTRATION EXPENSES

     (a) All expenses incident to the Company’s or the Guarantors’ performance of or compliance
with this Agreement will be borne by the Company and the Guarantors regardless of whether a
Registration Statement becomes effective, including without limitation: (i) all registration and
filing fees and expenses (including filings made by the Initial Purchasers or Holders with the
FINRA (and, if applicable, the fees and expenses of any “qualified independent underwriter” and its
counsel that may be required by the rules and regulations of the FINRA)); (ii) all fees and
expenses of compliance with federal securities and state Blue Sky or securities laws; (iii) all
expenses of printing (including printing of Prospectuses), messenger and delivery services and
telephone; (iv) all fees and disbursements of counsel for the Company and the Guarantors and,
subject to Section 7(b) below, counsel for the Holders of Initial Notes; (v) all application and
filing fees in connection with listing Notes on a national securities exchange or automated
quotation system, if any; and (vi) all fees and disbursements of independent public accountants of
the Company and the Guarantors (including the expenses of any special audit and comfort letters
required by or incident to such performance).

     The Company and the Guarantors will, in any event, bear their internal expenses (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses of any Person,
including special experts, retained by the Company or any Guarantor. The Company shall not be
responsible for any other expenses or costs, including but not limited to commissions, fees and
discounts of underwriters, brokers, dealers and agents.

     (b) In connection with any Registration Statement required by this Agreement (excluding the
Exchange Offer Registration Statement), the Company and the Guarantors will reimburse the Holders
of Initial Notes being tendered in the Registered Exchange Offer and/or resold pursuant to the
“Plan of Distribution” contained in the Exchange Offer Registration Statement or registered
pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Cravath Swaine & Moore LLP or such other
counsel as may be chosen by the Holders of a majority in principal amount of the Initial Notes for
whose benefit such Registration Statement is being prepared; provided that, except in the case of
an Underwritten Offering, the fees and expenses of such counsel to be reimbursed by the Company
shall not exceed $25,000.

SECTION 8.

INDEMNIFICATION

     (a) The Company and the Guarantors jointly and severally, agree to indemnify and hold harmless
(i) each Holder, (ii) each Initial Purchaser, (iii) each person, if any, who controls any Holder or
an Initial Purchaser within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
Act and (iii) the respective officers, directors, partners, employees, representatives and agents
of any Holder or Initial Purchaser or any

16

 

controlling person (any person referred to in clauses (i), (ii) or (iii) may hereinafter be
referred to as an “Indemnified Holder”), to the fullest extent lawful, from and against any
and all losses, liabilities, claims, damages and expenses whatsoever (including but not limited to
reasonable attorneys’ fees and any and all reasonable expenses whatsoever incurred in
investigating, preparing or defending against any investigation or litigation, commenced or
threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or
litigation), joint or several, to which they or any of them may become subject under the Act, the
Exchange Act or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or
actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or Prospectus, or in any
supplement thereto or amendment thereof, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that the Company and the Guarantors will not be liable in any such case to the
extent, but only to the extent, that any such loss, liability, claim, damage or expense arises out
of or is based upon any such untrue statement or alleged untrue statement or omission or alleged
omission made therein in reliance upon and in conformity with written information furnished to the
Company by or on behalf of the any of the Holders expressly for use therein. This indemnity
agreement will be in addition to any liability that the Company and the Guarantors may otherwise
have, including under this Agreement.

     (b) Each Holder of Initial Notes agrees, severally and not jointly, to indemnify and hold
harmless the Company, each of the Guarantors and each person, if any, who controls the Company or
any Guarantor within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act and
each of their respective officers, directors, employers, partners, representatives and agents to
the same extent as the foregoing indemnity from the Company and the Guarantors to each of the
Indemnified Holders, but only with respect to information relating to such Holder furnished in
writing by such Holder for use in any Registration Statement, or in any amendment thereof or
supplement thereto; provided, however, that in no case shall any selling Holder be liable or
responsible for any amount in excess of proceeds received by such Holder upon the sale of the Notes
giving rise to such indemnification obligation. This indemnity will be in addition to any
liability that the Holders may otherwise have, including under this Agreement.

     (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice
of the commencement of any action, such indemnified party shall, if a claim in respect thereof is
to be made against the indemnifying party under such subsection, notify each party against whom
indemnification is to be sought in writing of the commencement thereof (but the failure so to
notify an indemnifying party shall not relieve it from any liability that it may have under this
Section 8 or otherwise except to the extent that it has been prejudiced in any material respect by
such failure). In case any such action is brought against any indemnified party, and it notifies
an indemnifying party of the commencement thereof, the indemnifying party will be entitled to
participate therein, and to the extent it may elect by written notice delivered to the indemnified
party

17

 

promptly after receiving the aforesaid notice from such indemnified party, to assume and
control the defense thereof with counsel reasonably satisfactory to such indemnified party.
Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its
or their own counsel in any such case, but the fees and expenses of such counsel shall be at the
expense of such indemnified party or parties unless (i) the employment of such counsel shall have
been authorized in writing by the indemnifying parties in connection with the defense of such
action, (ii) the indemnifying parties shall not have employed counsel to take charge of the defense
of such action within a reasonable time after notice of commencement of the action, or (iii) such
indemnified party or parties shall have reasonably concluded that there may be defenses available
to it that are different from or additional to those available to one or all of the indemnifying
parties (in which case the indemnifying party shall not have the right to direct the defense of
such action on behalf of the indemnified party or parties), in any of which events such fees and
expenses of counsel shall be borne by the indemnifying parties; provided, however, that the
indemnifying party under subsection (a) or (b) above shall only be liable for the legal expenses of
one counsel (in addition to any local counsel) for all indemnified parties. Anything in this
subsection to the contrary notwithstanding, an indemnifying party shall not be liable for any
settlement of any claim or action effected without its prior written consent; provided that such
consent was not unreasonably withheld.

SECTION 9.

CONTRIBUTION

     In order to provide for contribution in circumstances in which the indemnification provided
for in Section 8 is for any reason held to be unavailable or is insufficient to hold harmless a
party indemnified thereunder, the Company and the Guarantors on the one hand, and the Holders on
the other hand, shall contribute to the aggregate losses, claims, damages, liabilities and expenses
of the nature contemplated by such indemnification provision (including any investigation, legal
and other expenses incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claims asserted, but after deducting in the case of losses, claims,
damages, liabilities and expenses suffered by the Company and the Guarantors any contribution
received by the Company and the Guarantors from Persons, other than a Holder, who may also be
liable for contribution, including persons who control the Company and the Guarantors within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) to which the Company, the
Guarantors or any Holder may be subject, (i) in such proportion as is appropriate to reflect the
relative fault of the Company and the Guarantors on one hand, and each Holder, on the other hand,
in connection with the statements or omissions that resulted in such losses, claims, damages,
liabilities or expenses, or (ii) if the allocation provided by clause (i) is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative fault
referred to in clause (i) above but also other relevant equitable considerations. The relative
fault of the Company and the Guarantors on one hand, and of each Holder, on the other hand, shall
be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact relates to

18

 

information supplied by the Company, the Guarantors or such Holder and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. The Company, the Guarantors and each Holder of Initial Notes agree that it would not be
just and equitable if contribution pursuant to this Section 9 were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable
considerations referred to above. Notwithstanding the provisions of this Section 9, (i) in no case
shall any Holder be required to contribute any amount in excess of the amount by which the proceeds
received by such Holder upon the sale of the Initial Notes giving rise to such obligation exceeds
the amount of any damages that such Holder has otherwise been required to pay by reason of any
untrue or alleged untrue statement or omission or alleged omission and (ii) no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes
of this Section 9, (A) each Person, if any, who controls any of the Holders within the meaning of
Section 15 of the Act or Section 20(a) of the Exchange Act and (B) the respective officers,
directors, partners, employees, representatives and agents of such Holder or any controlling Person
shall have the same rights to contribution as the Holders, and each Person, if any, who controls
the Company or any Guarantor within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act shall have the same rights to contribution as the Company and the Guarantors subject
in each case to clauses (i) and (ii) of this Section 9. Any party entitled to contribution will,
promptly after receipt of notice of commencement of any action, suit or proceeding against such
party in respect of which a claim for contribution may be made against another party or parties
under this Section 9, notify such party or parties from whom contribution may be sought, but the
failure to so notify such party or parties shall not relieve the party or parties from whom
contribution may be sought from any obligation it or they may have under this Section 9 or
otherwise, except to the extent it or they have been prejudiced in any material respect by such
failure. No party shall be liable for contribution with respect to any action or claim settled
without its prior written consent; provided that such written consent was not unreasonably
withheld.

SECTION 10.

RULE 144A

     The Company and the Guarantors hereby agree with each Holder, for so long as any Transfer
Restricted Securities remain outstanding, to make available, upon request, to any Holder of
Transfer Restricted Securities in connection with any sale thereof and any prospective purchaser of
such Transfer Restricted Securities from such Holder, the information required by Rule 144A(d)(4)
under the Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule
144A.

SECTION 11.

PARTICIPATION IN UNDERWRITTEN REGISTRATIONS

     No Holder may participate in any Underwritten Registration hereunder unless such Holder (a)
agrees to sell such Holder’s Transfer Restricted Securities on the basis

19

 

provided in any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements and (b) completes and executes all reasonable questionnaires, powers of
attorney, indemnities, underwriting agreements, lock-up letters and other documents required under
the terms of such underwriting arrangements.

SECTION 12.

SELECTION OF UNDERWRITERS

     The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who
desire to do so may sell such Transfer Restricted Securities in an Underwritten Offering. In any
such Underwritten Offering, the investment banker or investment bankers and manager or managers
that will administer the offering will be selected by the Company; provided, however, that such
investment bankers and managers must be reasonably satisfactory to the Holders of a majority in
aggregate principal amount of the Transfer Restricted Securities included in such offering.

SECTION 13.

MISCELLANEOUS

     (a) No Inconsistent Agreements. The Company and the Guarantors shall not, on or after
the date of this Agreement, enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with
and are not inconsistent with the rights granted to the holders of the Company’s or any Guarantor’s
securities under any agreement in effect on the date hereof.

     (b) [Intentionally omitted.]

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to or departures from the provisions hereof may
not be given unless the Company has obtained the written consent of Holders of a majority of the
outstanding principal amount of Initial Notes; provided, however, that the Company may amend this
Agreement to include or exclude a Guarantor as a party hereto if, pursuant to the terms of the
Indenture, such Guarantor is required to provide a Subsidiary Guarantee for the Notes or is
released from such obligation. Notwithstanding the foregoing, a waiver or consent to departure
from the provisions hereof that relates exclusively to the rights of Holders whose securities are
being tendered pursuant to the Registered Exchange Offer and that does not affect directly or
indirectly the rights of other Holders whose securities are not being tendered pursuant to such
Registered Exchange Offer may be given by the Holders of a majority of the outstanding principal
amount of Initial Notes being tendered.

     (d) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, first-class mail (registered or certified, return
receipt requested), telecopier, or air courier guaranteeing overnight delivery:

20

 

     (i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

     (ii) if to the Company or any Guarantor:

Compagnie Générale de Géophysique-Veritas

Tour Maine-Montparnasse

33, avenue de Maine

BP 191

75755 Paris Cedex 15

France

Telecopier No.: 33-1-64-47-34-31

Attention: Chief Financial Officer

     with a copy to:

Linklaters LLP

25, rue de Marignan

75008 Paris

France

Telecopier No.: 33-1-43-59-41-96

Attention: Luis Roth

     All such notices and communications shall be deemed to have been duly given at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt acknowledged, if telecopied; and on the next Business Day,
if timely delivered to an air courier guaranteeing overnight delivery.

     Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address specified in the Indenture.

     (e) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including without limitation and
without the need for an express assignment, the successors and assigns of subsequent Holders of
Initial Notes; provided, however, that this Agreement shall not inure to the benefit of or be
binding upon a successor or assign of a Holder unless and to the extent such successor or assign
acquired Initial Notes from such Holder.

     (f) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

21

 

     (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

     (i) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     (j) Consent to Jurisdiction; Submission to Process. Each of the Company and the
Guarantors irrevocably submits to the non-exclusive jurisdiction of any New York state or U.S.
Federal court located in the Borough of Manhattan in the City and State of New York over any suit,
action or proceeding arising out of or relating to this Agreement. Each of the Company and the
Guarantors irrevocably waives, to the fullest extent permitted by law, any objection which it may
have, pursuant to articles 14 and 15 of the French Civil Code or otherwise, to the laying of the
venue of any such suit, action or proceeding brought in such a court and any claim that any such
suit, action or proceeding brought in such a court has been brought in any inconvenient forum. In
furtherance of the foregoing, each of the Company and the Guarantors hereby irrevocably designates
and appoints CT Corporation, 111 Eighth Avenue, New York, New York 10011, as the agent of the
Company and each of the Guarantors to receive service of all process brought against the Company or
any such Guarantor with respect to any such suit, action or proceeding in any such court in the
City and State of New York, such service being hereby acknowledged by the Company and each of the
Guarantors to be effective and binding service in every respect. Copies of any such process so
served shall also be given to the Company in accordance with Section 13(d), but the failure of the
Company or any Guarantor to receive such copies shall not affect in any way the service of such
process as aforesaid. On the Closing Date, the Company and the Guarantors shall furnish to the
Initial Purchasers a consent of CT Corporation agreeing to act hereunder. If for any reason CT
Corporation shall resign or otherwise cease to act as such agent, the Company and each of the
Guarantors hereby irrevocably agrees to (A) immediately designate and appoint a new agent
reasonably acceptable to the Initial Purchasers to serve in such capacity and, in such event, such
new agent shall be deemed to be substituted for CT Corporation for all purposes hereof and (B)
promptly deliver to the Initial Purchasers the written consent (in form and substance reasonably
satisfactory to the Initial Purchasers) of such new agent agreeing to serve in such capacity.

     Nothing in this Section shall limit the right of the Initial Purchasers or any Holder to bring
proceedings against the Company or any Guarantor in the courts of any other jurisdiction or to
serve process in any other manner permitted by law.

[Signature page to follow]

22

 

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

Very truly yours,

	 	 	 	 	 	 	 
	 	 	COMPAGNIE GENERALE DE	 	 
	 	 	GEOPHYSIQUE–VERITAS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Robert Brunck
 

	 	 
	 

	 	Name:
	 	Robert Brunck	 	 
	 

	 	Title:
	 	Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CGGVERITAS SERVICES HOLDING B.V.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	CGG AMERICAS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	CGG CANADA SERVICES LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	CGG MARINE RESOURCES NORGE A/S	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	SERCEL INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 

23

 

	 	 	 	 	 	 	 
	 	 	SERCEL AUSTRALIA PTY LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Stephane-Paul Frydman
 

	 	 
	 

	 	Name:
	 	Stephane-Paul Frydman	 	 
	 

	 	Title:
	 	Chief Financial Officer

CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	SERCEL CANADA LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Stephane-Paul Frydman
 

	 	 
	 

	 	Name:
	 	Stephane-Paul Frydman	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	CGGVERITAS SERVICES HOLDING (U.S.) INC.	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Stephane-Paul Frydman
 

	 	 
	 

	 	Name:
	 	Stephane-Paul Frydman	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	CGGVERITAS SERVICES (U.S.) INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Stephane-Paul Frydman
 

	 	 
	 

	 	Name:
	 	Stephane-Paul Frydman	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	VERITAS INVESTMENTS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Stephane-Paul Frydman
 

	 	 
	 

	 	Name:
	 	Stephane-Paul Frydman	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 

24

 

	 	 	 	 	 	 	 
	 	 	CGGVERITAS LAND (U.S.) INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	VIKING MARITIME INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	VERITAS GEOPHYSICAL (MEXICO) LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	ALITHEIA RESOURCES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 
	 
	 	 	 	 	 	 
	 	 	VERITAS DGC ASIA PACIFIC LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Stephane-Paul Frydman
 

Stephane-Paul Frydman
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 

	 	 	 	CGGVeritas Group	 	 

25

 

The foregoing Registration Rights Agreement

is hereby confirmed and accepted

as of the date first above written.

CREDIT SUISSE SECURITIES (EUROPE) LIMITED

	 	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Craig Klaasmeyer
 

Craig Klaasmeyer
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	     /s/ Mathew Cestar
 

Mathew Cestar

 Managing Director
	 	 

BNP PARIBAS

	 	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Arnaud Tresca
 

Arnaud Tresca
	 	 
	 

	 	Title:
	 	Authorised Signatory	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Thibault de Kerizouet
 

Thibault de Kerizouet
	 	 
	 

	 	Title:
	 	Authorised Signatory	 	 

26exv10w127

Exhibit 10.127

AMENDMENT TO EMPLOYMENT AGREEMENT

This amendment to the Employment Agreement dated February 8, 2005 as amended November 15, 2007,
between Versar, Inc. and Theodore M. Prociv is entered into this 1st day December, 2008
as follows:

	 	1.	 	The term of this Agreement is extended to November 30, 2009;
	 
	 	2.	 	The base salary set forth in Section 4.1 shall be $355,000 per annum
beginning on September 27, 2008;
	 
	 	3.	 	The personal leave set forth in Section 5.3 shall be six (6) weeks
annually; and
	 
	 	4.	 	All other terms of the Agreement shall remain unchanged.

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

	 	 	 	 	 
	 	 	 
	 	     /S/ Theodore M. Prociv
 	 
	 	Theodore M. Prociv 	 
	 	 	 
	 
	 	 	 
	 	     /S/ Amir A. Metry
 	 
	 	Amir A. Metry 	 
	 	Compensation Committee Chairman 	 

35

 

	 	 	 	 	 

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is made and entered into this 8th day of February
2005, by and between Versar, Inc., a Delaware corporation (“Company”), its successors and assigns,
and Theodore M. Prociv (“you” or “your”). This Agreement promises you an employment relationship
and certain severance benefits during the Term of this Agreement. Capitalized terms are defined in
the last section of the Agreement.

1. Purpose

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

2. Employment

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

3. Duties

You shall serve as President and Chief Executive Officer of the Company. Under the direction of
the Board of Directors, you shall perform all assigned duties reasonably required of an employee in
such positions, shall personally, diligently, and faithfully perform these duties to the best of
your ability, on a full-time and exclusive basis. Your principal office will be located in
Springfield, Virginia.

4. Compensation

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

     4.1. Base Salary: You shall receive the base salary approved by Company’s Board of
Directors, payable in regular bi-weekly installments (the “Base Salary”). The Base Salary will be
reviewed annually by the Board of Directors in accordance with standard salary review procedures in
effect from time to time for executive officers of Company. In no event shall the Base Salary be
less than the Base Salary being paid to you on the date of this Agreement, unless you agree to a
reduction. In the event that your employment with Company is terminated as provided in this
Agreement, the Base Salary shall be deemed your then current Base Salary or $285,000, whichever is
greater.

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

36

 

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

5. Benefits

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

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

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

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

6. Term

Subject to early termination of this Agreement in accordance with Section 7 or 8 below, the term of
your employment hereunder shall commence as of December 1, 2004, and shall continue for a period of
two (2) years. You agree and acknowledge that Company has no obligation to renew this Agreement or
to continue your employment after the one-year term.

7. Termination by Company

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

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

37

 

8. Termination by You

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

9. Your Agreement on Change in Control

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

10. Events That Trigger Severance Benefits

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

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

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

11. Events That Do Not Trigger Severance Benefits

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

12. Termination Procedures

If you are terminated by the Company after a Change in Control and during the Term of this
Agreement, the Company shall provide you with 30 days’ advance written notice of your termination,
unless you are being terminated for Cause. The notice will indicate why you are being terminated
and, will set forth in reasonable detail,
the facts and circumstances claimed to provide a basis for your termination. If you are being
terminated for Cause, your notice of termination will include a copy of a resolution duly adopted
by the affirmative vote of not less than 51 % of the entire membership of the Board (at a meeting
of the Board called and held for the purpose of considering your termination (after reasonable
notice to you and an opportunity for you and your counsel to be heard before the

38

 

Board)) finding that, in the good faith opinion of the Board, Cause for your termination exists and
specifying the basis for that opinion in detail. If you are purportedly terminated without the
notice required by this Section, your
termination shall not be effective.

13. Severance Benefits

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

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

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

     13.4. Group Insurance Benefit Continuation: During the period that begins when you become
entitled to Severance Benefits under this Agreement and ends on the last day of the 24th calendar
month beginning thereafter, the Company shall provide, at no cost to you or your spouse or
dependents, the life, disability, accident, and health and dental insurance benefits (or
substantially similar benefits) it was providing to you and your spouse and dependents immediately
before you became entitled to Severance Benefits under this Agreement (or immediately before a
benefit reduction that constitutes Good Reason, if you terminate employment for that Good Reason).
These benefits shall be treated as satisfying the Company’s COBRA obligations. After benefit
continuation under this subsection ends, you and your spouse and dependents will be entitled to any
remaining COBRA rights.

14. Time for Payment

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

15. Payment Explanation

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

39

 

16. Relation to Other Severance Programs

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

17. Potential Limitations

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

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

18. Disability

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

19. Effect of Reemployment

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

20. Successors

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

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

40

 

21. Governing Law

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

22. Claims (ERISA requirement)

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

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

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

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

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

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

41

 

23. Survival

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

24. Non-Competition and Non-Solicitation

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

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

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

25. Confidentiality and Non-Disclosure

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

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

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

26. Results and Proceeds

     26.1. Ownership: As your employer, Company shall own all rights in and to the results and
proceeds connected with or arising out of, directly or indirectly, your services hereunder. You
hereby assign to Company all

42

 

right, title and interest in and to all intellectual property, discoveries and trade secrets which
you may solely or jointly conceive, design, develop, create or suggest or cause to be conceived,
designed or developed or created during the term of your employment by Company, which relate to
your employment or Company’s business. For purposes of this Agreement, the term “intellectual
property” shall include, without limitation, any ideas, concepts, literary material, designs,
drawings, illustrations, photographs, patentable ideas and musical compositions. To the extent
that any such intellectual property may be protected pursuant to applicable copyright law, you
acknowledge that such property is a work for hire within the meaning of such law.

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

27. Amendments

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

28. Validity

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

29. Counterparts

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

30. Giving Notice

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

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

31. Conformity with the Immigration Reform and Control Act of 1986

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

32. Waiver

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

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33. Resignation from Offices

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

34. Benefit

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

35. Success Bonus

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

36. Definitions

	 	(a)	 	Agreement
	 
	 	 	 	“Agreement” means this contract, as amended.
	 
	 	(b)	 	Base Salary
	 
	 	 	 	“Base Salary” means the gross amount of money paid you annually as your basic
compensation. This amount is paid in regular bi-weekly installments.
	 
	 	(c)	 	Beneficial Owner
	 
	 	 	 	“Beneficial Owner” has the meaning set forth in Rule 13d-3 under the Exchange Act.
	 
	 	(d)	 	Board
	 
	 	 	 	“Board” means the Board of Directors of the Company.
	 
	 	(e)	 	Cause
	 
	 	 	 	“Cause” means any of the following:

	 	(1)	 	you fail to carry out assigned duties after being given prior warning and an opportunity
to remedy the failure,
	 
	 	(2)	 	you breach any material term of any employment
agreement with the Company,
	 
	 	(3)	 	you engage in fraud, dishonesty, willful misconduct, gross negligence, or breach
of fiduciary duty (including without limitation any failure to disclose a
conflict of interest)in the performance of your duties for the Company, or
	 
	 	(4)	 	you are convicted of a felony or crime involving moral turpitude.

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

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

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

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

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

               (5) Liquidation or Dissolution: A complete liquidation or dissolution of the Company

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

	 	(g)	 	Code
	 
	 	 	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(h)	 	Confidential Information
	 
	 	 	 	“Confidential Information” means any and all Company proprietary, trade secret or
other information identified in Section 25, whether written, electronic or oral.
	 
	 	(i)	 	Company
	 
	 	 	 	“Company” means Versar, Inc. and any successor to its business or assets that (by
operation of law, or otherwise) assumes and agrees to perform this Agreement.
However, for purposes of determining whether a Change in Control has
occurred in connection with such a succession, the successor shall not be considered
to be the Company.
	 
	 	(j)	 	Disability
	 
	 	 	 	“Disability” means that, due to physical or mental illness: (i) you have been absent from
the full-time performance of your duties with the Company for substantially all of a
period of six consecutive months; (ii) the Company has notified you that it
intends to terminate you on account of Disability; and (iii) you do not resume the
full-time performance of your duties within 30 days after receiving notice of your
intended termination on account of Disability.
	 
	 	(k)	 	Exchange Act
	 
	 	 	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.

45

 

	 	(l)	 	Good Reason
	 
	 	 	 	“Good Reason” means the occurrence of any of the following without your
express written consent:

	 	(1)	 	Demotion: Your duties and responsibilities are
substantially and adversely altered from those in effect immediately before
the Change in Control (or, with respect to Section 3(b), the Potential
Change in Control), other than merely as a result of the Company ceasing to
be a public company, a change in your title, or your transfer to an
affiliate.
	 
	 	(2)	 	Pay Cut: Your annual Base Salary is reduced.
	 
	 	(3)	 	Relocation: Your principal office is transferred to
another location, which increases your
one-way commute to work by more than 50 miles, based on your residence twhen
the transfer was announced or, if you consent to the transfer, the Company
fails to pay (or reimburse you) for all reasonable moving expenses you incur
in changing your principal residence in connection with the relocation and
to indemnify you against any loss you may realize when you sell your
principal residence in connection with the relocation in an arm’s-length
sale for adequate consideration. For purposes of the preceding sentence,
your “loss” will be the difference between the actual sales price of your
residence and the higher of: (a) your aggregate investment in the residence;
or (b) the fair market value of the residence, as determined by a real
estate appraiser designated by you and satisfactory to the Company.
	 
	 	(4)	 	Breach of Promise: The Company fails to pay you any present or deferred compensation
within seven days after it is due.
	 
	 	(5)	 	Discontinuance of Compensation Plan Participation: The
Company fails to continue, or
continue your participation in, any compensation plan in which you
participated
immediately before the Change in Control (or, with respect to Section 3(b),
the Potential
Change in Control) that is material to your total compensation, unless an
equitable
substitute arrangement has been adopted or made available on a basis not
materially less
favorable to you than the plan in effect immediately before the Change in
Control
(or the Potential Change in Control, if applicable), both as to the
benefits you receive
and your level of participation relative to other participants.
	 
	 	(6)	 	Discontinuance of Benefits: The Company stops providing
you with benefits that, in the
aggregate, are substantially as valuable to you as those you enjoyed
immediately before
the Change in Control (or, with respect to Section 3(b), the Potential
Change in Control)
under the Company’s pension, savings, deferred compensation, life
insurance, medical,
health, disability, accident, vacation, and fringe benefit plans, programs,
and arrangements.
	 
	 	(7)	 	Improper Termination: You are purportedly terminated,
other than pursuant to a notice
of termination satisfying the requirements of Section 5.
	 
	 	(8)	 	Notice of Prospective Action: You are officially
notified or it is officially announced
that the Company will take any of the actions listed above during the Term of
this Agreement.

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

46

 

you have Good Reason to terminate employment, you may do so even if you are on a leave of absence
due to physical or mental illness or any other reason.

	 	(m)	 	Incentive Compensation
	 
	 	 	 	“Incentive Compensation” means the amount of cash and/or securities paid to you under all
bonus, incentive or other programs for performance adopted by Company for its executive
officers or other key employees.
	 
	 	(n)	 	Person
	 
	 	 	 	“Person” has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used
in Section 13( d) of that Act, and shall include a “group,” as defined in Rule 13d-5
promulgated thereunder. However, a Person shall not include: (i) the Company or any of its
subsidiaries; (ii) a trustee or other fiduciary holding securities under an employee benefit
plan
of the Company or any of its subsidiaries; (iii) an underwriter temporarily holding securities
pursuant to an offering of such securities; or (iv) a corporation owned, directly or
indirectly,
by the stockholders of the Company in substantially the same proportions as their ownership
of stock of the Company.
	 
	 	(o)	 	Potential Change in Control
	 
	 	 	 	“Potential Change in Control” means that any of the following has occurred during the term
of this Agreement, [excluding any event that is Management Action]:

	 	(1)	 	Agreement Signed: The Company enters into an agreement that will result in a Change in
Control.
	 
	 	(2)	 	Notice of Intent to Seek Change in Control: The Company
or any Person publicly
announces an intention to take or to consider taking actions that will result in a Change
in Control.
	 
	 	(3)	 	Board Declaration: With respect to this Agreement, the
Board adopts a resolution
declaring that a Potential Change in Control has occurred.

	 	(p)	 	Severance Benefits
	 
	 	 	 	“Severance Benefits” means your benefits under Section 6 of this Agreement.
	 
	 	(q)	 	Term of this Agreement
	 
	 	 	 	“Term of this Agreement” means the period that commences on December 1, 2004 and ends
on the earlier of:

	 	(1)	 	Expiration: November 30, 2006; or
	 
	 	(2)	 	Change in Control: The last day of the 24th calendar
month beginning after the calendar
month in which a Change in Control occurred during the Term of this
Agreement.

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

	 	 	 	 	 
	 	 	 
	 	     /S/ Theodore M. Prociv
 	 
	 	Theodore M. Prociv 	 
	 	 	 
	 
	 	 	 
	 	     /S/ Amir A. Metry
 	 
	 	Amir A. Metry 	 
	 	Compensation Committee Chairman 	 
	 

47

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