Document:

Terra Nova Financial Group, Inc. - Exhibit 10.5

EXHIBIT 10.5

TERRA NOVA FINANCIAL GROUP, INC. 

  INCENTIVE OPTION AGREEMENT 

  

  pursuant to the 

  

  2005 LONG TERM INCENTIVE PLAN 

 

                 This
INCENTIVE OPTION AGREEMENT (this "Agreement") is made and
entered into by and between Terra Nova Financial Group, Inc., a Texas corporation
(the "Company"), and _________________ (the "Optionee"),
effective as of _______________ (the "Date of Grant"). 

                 1.
            Grant
of Option. The Company hereby grants to the Optionee and the Optionee
hereby accepts, subject to the terms and conditions hereof, an Incentive Option
(the "Option") to purchase up to ____________________ (________)
shares of the Company's Common Stock, par value $0.01 per share (the "Common
Stock"), at the Exercise Price per share set forth in Section 4 below.
The Option is intended to constitute an "incentive stock option" as that term
is used in Section 422 of the Code. To the extent that the aggregate Fair Market
Value (determined on the Date of Grant) of shares of Common Stock with respect
to which Incentive Options are exercisable for the first time by the Optionee
under all plans of the Company and its Subsidiaries exceeds $100,000, the options
or portions thereof which exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Options. It should be understood
that there is no assurance that the Option will, in fact, be treated as an Incentive
Option. 

                 2.
            Governing
Plan. This Option is granted pursuant to the Company's 2005 Long Term
Incentive Plan (the "Plan"), which is incorporated herein for all
purposes. Capitalized terms used but not otherwise defined herein have the meanings
as set forth in the Plan. The Optionee agrees to be bound by the terms and conditions
of the Plan, which control in case of any conflict with this Agreement, except
as otherwise specifically provided for in the Plan. 

                 3.
            Expiration
of the Option. The Option shall not be exercisable after the Company's
close of business on the last Business Day (as defined in Section 11) that occurs
prior to the Expiration Date. The "Expiration Date" shall be the
earliest to occur of: 

	 	(a)	the _________ anniversary of the Date of Grant;
	 	 	 
	 	(b) 	 if the Optionee's termination of employment
      with the Company and all Subsidiaries occurs by reason of death, the date
      that is one hundred eighty (180) days after such date of death; 
	 	 	 
	 	(c)	if the Optionee's employment is terminated
      by the Company or a Subsidiary, the date that is one hundred eighty (180)
      days after such date of termination; 
	 	 	 
	 	(d)	if the Optionee resigns in accordance with
      a right of termination granted to the Optionee pursuant to the terms of
      a written employment agreement with the Company or a Subsidiary (other than
      due to Retirement), the date that is one hundred eighty (180) days after
      such date of resignation; and 
	 	 	 
	 	(e)	if the Optionee resigns and such resignation
      is in breach of an employment agreement with the Company or a Subsidiary,
      or if the Optionee is not a party to an employment agreement with the Company
      or a Subsidiary, the date of such resignation. 

 

In the event of the Optionee's termination of employment with the Company and
all Subsidiaries due to Disability or Retirement, the Expiration Date shall be
the ________ anniversary of the Date of Grant. If the Option is exercised more
than ninety (90) days after a termination of employment described in (c) or (d)
above, the Option will be treated as a Nonstatutory Option. 

                 4.
            Exercise
Price. The "Exercise Price" of the Option is ________ per
share of Common Stock. The Exercise Price is subject to adjustment or amendment
as set forth in the Plan. 

 

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                 5.
            Vesting.

	 	(a) 	Except as may be accelerated as set forth below,
      on each vesting date set forth in Column 1 below, the Option shall vest
      and become exercisable for the corresponding number of shares of Common
      Stock set forth in Column 2 below if the Optionee's employment with the
      Company and/or any Subsidiary has not terminated. The "Vested Portion"
      of the Option as of any particular date shall be the cumulative total of
      all shares for which the Option has become exercisable as of that date.
      

	
      Column 1

        Vesting Date 

    	
      Column 2

        Vested Portion of the Option

    
	 	 
	 	 
	 	 
	 	 

 

	 	(b) 	If the Optionee's employment is terminated
      by the Company or a Subsidiary and the termination results in a breach by
      the Company or the Subsidiary of the terms of a written employment agreement
      with the Optionee, then the Vested Portion of the Option shall be 100% of
      the shares of Common Stock covered by the Option. 
	 	 	 
	 	(c) 	If the Optionee resigns in accordance with
      a right of termination granted to the Optionee pursuant to the terms of
      a written employment agreement with the Company or a Subsidiary (other than
      due to Retirement), then the Vested Portion of the Option shall be 100%
      of the shares of Common Stock covered by the Option. 
	 	 	 
	 	(d) 	In the event of a Change in Control,
      the Vested Portion of the Option shall be 100% of the shares of Common Stock
      covered by the Option. 
	 	 	 
	 	(e) 	To the extent any portion of the Option has
      not vested pursuant to paragraphs (a)-(d) above, upon the Optionee's termination
      of employment with the Company and all Subsidiaries for any reason (including
      death, Disability or Retirement), that portion of the Option shall be immediately
      forfeited upon such termination of employment. 

 

                 6.
            Exercise
of the Option. The Vested Portion (as herein defined) of the Option may
be exercised, to the extent not previously exercised, in whole or in part, at
any time or from time to time prior to the Expiration Date, except that no Option
shall be exercisable except in respect to whole shares, and not less than one
(1) share may be purchased at one time unless the number purchased is the total
number at the time available for purchase under the terms of the Option. Exercise
shall be accomplished by providing written notice directed to the Director of
Investment Relations of the Company. 

                 7.
            Payment
of Option Price. Upon any exercise of the Option, the total Exercise Price
for the number of shares for which the Option is then being exercised shall be
paid in full to the Company in cash, or with the Committee's prior consent, shares
of Common Stock owned by the Optionee (or by the Optionee and his or her spouse
jointly), or a combination thereof. In addition, at the request of the Optionee
and to the extent permitted by applicable law, the Committee may (but shall not
be required to) approve arrangements with a brokerage firm, on behalf of the Optionee,
shall pay to the Company the Exercise Price (either as a loan to the Optionee
or from the proceeds of the sale of Common Stock issued pursuant to the exercise
of the Option) and the Company shall promptly cause the exercised shares to be
delivered to the brokerage firm. 

                 8.
            Withholding.
All deliveries and distributions under this Agreement are subject to withholding
of all applicable taxes. At the election of the Optionee and subject to such rules
and limitations as may be established by the Committee from time to time, such
withholding obligations may be satisfied through the surrender of shares of Common
Stock which the Optionee already owns or to which the Optionee is already 

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entitled under the Plan; provided, however, that such shares may
be used to satisfy not more than the Company's minimum statutory withholding obligation.

                 9.
            Nontransferability
of Option. The Option shall not be transferable or assignable by the Optionee,
other than by will or the laws of descent and distribution, and shall be exercisable
during the Optionee's lifetime only by the Optionee. 

                 10.
          Administration.
The Plan and this Agreement shall be administered and may be definitively interpreted
by the Committee, and the Optionee agrees that the decisions of such Committee
concerning administration and interpretation of the Plan and this Agreement shall
be final, binding and conclusive on all persons. 

                 11.
          Notices.
All notices or other communications which are required or permitted hereunder
or in the Plan shall be in writing and sufficient if (i) personally delivered,
(ii) sent by nationally-recognized overnight courier or (iii) sent by registered
or certified mail, postage prepaid, return receipt requested, addressed as follows:
(a) if to Optionee, at the address set forth on the signature page below; or (b)
if to the Company, at the address set forth in the signature page hereto, or in
either case, to such other address as the party to whom notice is to be given
may have furnished to the other party in writing in accordance herewith. Any such
communication shall be deemed to have been given (i) when delivered, if personally
delivered, (ii) on the first Business Day (as hereinafter defined) after dispatch,
if sent by nationally-recognized overnight courier and (iii) on the third Business
Day following the date on which the piece of mail containing such communication
is posted, if sent by mail. As used herein, "Business Day" means
a day that is not a Saturday, Sunday or a day on which banking institutions in
the city to which the notice or communication is to be sent are not required to
be open. 

                 12.
          Not An Employment
Contract. The Option will not confer on the Optionee any right with respect
to continuance of employment with the Company or any Subsidiary, nor will it interfere
in any way with any right the Company or any Subsidiary would otherwise have to
terminate or modify the terms of such Optionee's employment at any time. 

                 13.
          No Rights As
Shareholder. The Optionee shall not have any rights as a shareholder with
respect to the shares of Common Stock subject to the Option, until a stock certificate
has been duly issued following exercise of the Option as provided herein. 

                 14.
          Amendment.
This Agreement may be amended in accordance with the provisions of the Plan, and
may otherwise be amended by written agreement of the Optionee and the Company
without the consent of any other person. 

                 15.
          Governing Law.
The provisions of this Agreement shall be construed in accordance with the laws
of the state of Illinois, except to the extent Texas corporate law conflicts with
the contract law of such state, in which event Texas corporate law shall govern.

                 16.
          Securities Law
Requirements. If at any time the Committee determines that exercising
the Option or issuing shares of Common Stock would violate applicable securities
laws, the Option will not be exercisable, and the Company will not be required
to issue shares of Common Stock. The Committee may declare any provision of this
Agreement or action of its own null and void, if it determines the provision or
action fails to comply with the short-swing trading rules. As a condition to exercise,
the Committee may require the Optionee to make written representations it deems
necessary to comply with applicable securities laws. No person who acquires shares
of Common Stock under this Agreement may sell the shares, unless he or she makes
an offer and sale pursuant to an effective registration statement under the Exchange
Act, which is current and includes the shares to be sold, or there is an exemption
from the registration requirements of the Exchange Act. The Optionee's right to
resell the shares of Common Stock will be subject to all federal and state securities
laws, including SEC Rule 144. 

                 16.
          Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original, but all of which together shall constitute one and
the same instrument. 

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[Signature page to follow] 

  

  

  

  

4

                 IN
WITNESS WHEREOF, this Agreement has been executed on behalf of the Company
by its duly authorized officer, and by the Optionee in acceptance of the above-mentioned
Option, subject to the terms and conditions of the Plan and of this Agreement,
all as of the day and year first above written. 

	 	COMPANY: 

      

      TERRA NOVA FINANCIAL GROUP, INC., 

      a Texas corporation  
	 	 
	 	 
	 	By: _______________________________________
    
	 	

      Name: 

      

      Title: 

      

      Address: 
	 	 
	 	 
	 	OPTIONEE: 

      

      __________________________________________ 
	 	
                                                          [Name]

    
	 	

      Address:

      ___________________________________ 

      ___________________________________ 

5EX-10.44

Employment Agreement

This Employment, Termination and Severance Agreement is entered into, and is effective as of
the 4th day of April, 2007 (the “Effective Date”), by and between Alion Science and Technology
Corporation (the “Company”) and Michael J. Alber (the “Executive”), under the following terms and
conditions:

Article 1. Employment and Duties

Upon the terms and subject to the conditions contained herein, the Company hereby employs the
Executive as Senior Vice President, Executive Director of Financial Operations. The Executive shall
have such powers, duties and responsibilities as may be assigned to him from time to time by the
Chief Financial Officer (the “CFO”) or the Chief Executive Officer (the “CEO”). The Executive
shall further be responsible for supervising and directing other employees of the Company as
determined by the CFO or CEO. The Executive’s employment is at-will and for an indefinite period.
The Executive or the Company may terminate the Executive’s employment at any time, subject to the
terms and provisions of this Agreement.

Article 2. Compensation and Benefits

The Company shall pay the Executive a Base Salary not less than Two Hundred Sixty Thousand
Dollars ($260,000) per year, subject to adjustments in the discretion of the Board of Directors
(the “Board”). The Company shall further provide to the Executive all benefits to which other
executives of the Company are entitled, as commensurate with the Executive’s position, subject to
the eligibility requirements and other provisions of such benefits and other perquisites as
determined by the Board. Such benefits and perquisites may include bonus, long term incentives,
group term life insurance, comprehensive health and major medical insurance, dental and life
insurance, disability, automobile allowance and club memberships. All such compensation and
benefits shall be subject to all appropriate federal and state withholding taxes and payable in
accordance with the normal payroll practices of the Company.

Article 3. Employment Termination and Severance

3.1. (a) Without Cause. During the Employment Period, other than during a Potential Change in
Control Protection Period or within the period ending twenty-four (24) calendar months immediately
following a Change in Control as specified in Article 5 below, the Company may terminate the
Executive’s employment for reasons other than Cause, by notifying the Executive in writing of the
Company’s intent to terminate with the effective date of termination specified by the Company in
the written notice. Upon the effective date of termination under this Article 3.1, if the Executive
timely signs a General Release and does not revoke or violate such General Release, the Company
shall be obligated to pay to the Executive (subject to all appropriate federal and state
withholding taxes):

(i) A lump-sum cash payment equal to one (1) times the Executive’s Base Salary at the rate in
effect immediately prior to the termination.

(ii) A lump-sum cash payment equal to one (1) times the Executive’s actual bonus for the last
complete fiscal year prior to the effective date of termination, if any (excluding any bonus paid
under the Bonus Agreement between the Company and the Executive, dated as of November 12, 2007).

(iii) Base Salary and all other benefits due the Executive through the effective date of
termination.

(iv) The unpaid bonus, if any, with respect to the last complete fiscal year preceding the
effective date of termination (such bonus, if any, to be determined in the manner it would have
been determined and payable at the time it would have been payable hereunder had there been no
termination of the Employment Period).

(v) To the extent that the Executive is eligible for and elects to receive medical and/or
dental benefits pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”) for himself and/or any qualifying beneficiaries, the Company shall pay on the Executive’s
behalf, or reimburse the Executive for, the amount of the applicable COBRA that exceeds the amount
of premium payable by the Executive for the same level of coverage immediately prior to the
effective date of termination. Any such COBRA premium payment by the Company that constitutes
taxable income to the Executive shall be grossed up by the Company, assuming an applicable income
tax rate of forty percent (40%). Payments under this paragraph shall cease at the earlier of (i)
the end of the first month in which the Executive is no longer eligible for COBRA for any reason
(other than death or eligibility for Medicare, provided that COBRA coverage continues for any
qualified beneficiary), or (ii) eighteen (18) months after the Executive’s date of termination.
The Executive shall notify the Company as soon as practicable after he ceases to be eligible for
COBRA coverage due to coverage under the group health plan of another employer.

(vi) All other rights and benefits that the Executive is vested in, pursuant to other plans
and programs of the Company.

(b) Retirement. If the Executive’s employment terminates due to Retirement (as defined the
Executive’s termination of employment upon reaching age sixty-five (65) for any reason other than
death, Disability (as defined below) or Cause (as defined in Article 3.3), the Company shall be
obligated to pay the Executive the amounts and benefits described in Article 3.1(a)(iii), (iv), (v)
and (vi).

(c) Death or Disability. If the Executive’s employment is terminated by reason of Disability
(as defined as in the Company’s long-term disability plan), the Company shall be obligated to pay
the Executive or, if applicable, the Executive’s estate: The amounts and benefits described in
Article 3.1(a) (iii), (iv), (v) and (vi), and an additional lump-sum cash payment equal to the
Executive’s Base Salary for a period of six (6) months; provided, however, that such lump sum
payment shall be offset by any payments under the Company’s short-term disability policy or under
any long-term disability plan or insurance program maintained by the Company.

(d) Voluntary Termination. The Executive may terminate this Agreement at any time by giving
the Company written notice of intent to terminate. The Executive will receive the amounts and
benefits described in Article 3.1(a) (iii), (iv) and (vi), but shall not be paid any bonus with
respect to the fiscal year in which voluntary termination occurs.

3.2. General Release. As a condition precedent to receiving any of the payments and benefits set
forth in Article 3.1 above, upon the effective date of termination under Article 3.1(a), (b) (c) or
(d) above, the Executive (or his estate as the case may be) agrees to execute and return to the
Company, and shall not revoke or attempt to revoke, a general release (a “General Release”) in a
form acceptable to the Company, within thirty (30) days following the effective date of
termination, that (i) releases the Company and its affiliates, directors, officers, employees and
agents from any and all claims that the Executive may have in connection with his employment or
termination thereof, to the extent permitted by applicable laws, and (ii) the Executive
affirmatively agrees not to violate the provisions of Article 4.

3.3. Termination for Cause. In the event that the Executive is terminated for Cause, the Executive
will not be entitled to any severance or other benefits upon termination other than those accrued
benefits provided to employees pursuant to existing Company policy. “Cause” means:

(a) The Executive’s commission of a felony of or a crime involving moral turpitude; or

(b) The Executive committing an act constituting fraud, deceit, or material misrepresentation
with respect to the Company; or

(c) In the Company’s reasonable discretion, the Executive committing any negligent or willful
act or omission that causes material damage (by reason, without limitation, of financial exposure
or loss, damage to reputation or goodwill, or exposure to civil or criminal penalties or other
prosecutorial action by any governmental authority) to the Company or any parent or subsidiary
corporation thereof; or

(d) Willful or material violation of any provision of the Company’s Code of Ethics, Conduct
and Responsibility; or

(e) Willful and material misstatement knowingly made or caused to be made by the Executive in
any filing with the Securities and Exchange Commission; or

(f) Willful or material violation of any of the covenants contained in Article 4, as
applicable.

For purposes of this Article 3.3, no act or omission by the Executive shall be considered “willful”
unless it is done or omitted in bad faith or without reasonable belief that the Executive’s action
or omission was in the best interests of the Company. Any act or failure to act based upon: (a)
authority given pursuant to a resolution duly adopted by the Board; or (b) advice of counsel for
the Company, shall be conclusively presumed to be done or omitted to be done by the Executive in
good faith and in the best interests of the Company.

The effective date of termination shall be the date specified by the Company. If this Agreement is
terminated for Cause, the Company shall be obligated to pay the Executive’s Base Salary through the
effective date of termination, and the Executive shall immediately thereafter forfeit all rights
and benefits (other than vested benefits) the Executive would otherwise have been entitled to
receive under this Agreement.

3.4. Severance Payment Schedule. Payments due to the Executive or, if applicable, the Executive’s
estate, pursuant to termination events described in this Article 3, shall be paid in two (2)
installments as follows: (a) an amount equal to six months of annual salary set forth in Article
3.1(a)(i) and one-half of the total bonus amount set forth in Article 3.1(a)(ii) (the “Severance
Installment Payment”), and the amounts set forth in Article 3.1(a)(iii) and (iv), within thirty
(30) days after the expiration of any applicable statutory period in which revocation of the
General Release is permitted (the “First Installment”); and (b) an amount equal to the Severance
Installment Payment six (6) months from the date of payment of the First Installment (the “Second
Installment) (the “Final Installment). The Company’s obligation to pay severance amounts due to
the Executive pursuant to this Article 3, to the extent not already paid, shall cease immediately
and such payments will be forfeited if the Executive violates any condition described in Article 3
or 4. The parties intend and agree that any payments contemplated by this Agreement constituting
“deferred compensation” for purposes of Code Section 409A shall comply with the requirements of
such section. No deferred compensation payable hereunder shall be subject to acceleration or to
any change in the specified time or method of payment, except as otherwise provided under this
Agreement and consistent with Code Section 409A. In no event shall the Company have any liability
or obligation with respect to taxes for which Executive may become liable as a result of the
application of Code Section 409A.

Article 4. Noncompetition, Confidentiality, Nonsolicitation, and Ownership

4.1. Noncompetition. The Executive acknowledges and agrees that by virtue of his employment
with the Company, he has or will have access to valuable proprietary information not known to the
public that the Company possesses, including but not limited to, methods of operation, business
strategies and plans, financial information, marketing materials, ideas, trade secrets, customer
contacts and other customer information (“Proprietary Information”). The Executive further
acknowledges and agrees that the Company has legitimate business interests in assuring that his
unique knowledge of the Company, including but not limited to that knowledge regarding and relating
to the foregoing information, is not disclosed or converted to the use of entities or individuals
in competition with the Company. The Executive therefore agrees that during the Employment Period
and for a period of one year after the date of termination of the Executive’s employment with the
Company without cause as set forth in Article 3.1(a) above, he will not, directly or indirectly,
compete with the Company or its subsidiaries or affiliates by providing services or by being an
officer, director, employee, consultant, agent, advisor, shareholder or owner to or of any other
person, partnership, association, corporation, or other entity that is a “Competing Business,”
except that he may have an ownership interest of up to two percent (2%) of a Competing Business
which is a public company. As used herein, a “Competing Business” is any business whose activities
relate to the products or services of the same or similar type as the products or services which
are sold (or, pursuant to an existing business plan, will be sold) to paying customers of the
Company or its subsidiaries or affiliates, and for which the Executive has the responsibility to
plan, develop, manage, market, or oversee, or had any such responsibility within the Executive’s
most recent twenty-four (24) months of employment with the Company. Following termination of
employment, the Executive may request in writing an exception to the foregoing provision from the
Company for prospective employment, which exception will be granted if the Company, in its sole
discretion, determines that such prospective employment will not unduly or materially compete with
or otherwise interfere with the business of the Company. The restrictions on competition as set
forth in this paragraph shall not apply in the event that the Executive terminates employment
pursuant to Section 3.1(d) of this Agreement.

In addition to the foregoing, the Executive agrees that, for a period of one year after the date of
termination or cessation of the Executive’s employment with the Company for any reason whatsoever,
he will not, directly or indirectly, intentionally entice, induce or solicit, or attempt to entice,
induce or solicit, any individual or entity having a current or prospective business relationship
with the Company, whether as a consultant, client, customer or otherwise, to terminate or cease
such relationship with the Company, or to fail to enter into or renew such relationship with the
Company.

The parties agree that the above restrictions on competition are completely severable and
independent agreements supported by good and valuable consideration and, as such, shall survive the
termination of this Agreement for whatever reason. The parties further agree that any invalidity or
unenforceability of any one or more of such restrictions on competition shall not render invalid or
unenforceable any remaining restrictions on competition. Additionally, should a court of competent
jurisdiction determine that the scope of any provision of this Article 4.1 is too broad to be
enforced as written, the parties intend that the court reform the provision to such narrower scope
as it determines to be reasonable and enforceable. The Executive acknowledges and agrees that the
non-competition and non-solicitation provisions herein are expressly assignable to any successor of
the Company as set forth in Article 6(b).

4.2. Nonsolicitation. During the Employment Period and for a one year after the termination or
cessation of his employment with the Company for any reason whatsoever, the Executive shall not, on
his own behalf or on behalf of any other person, partnership, association, corporation, or entity:
(a) directly, indirectly, or through a third party hire or cause to be hired; (b) directly,
indirectly, or through a third party solicit; or (c) in any manner attempt to influence or induce
any employee of the Company or its subsidiaries or affiliates to leave the employment of the
Company or its subsidiaries or affiliates, nor shall he use or disclose to any person, partnership,
association, corporation, or other entity any information obtained concerning the names and
addresses the Company’s employees. The Executive further agrees and acknowledges that the Company
has confidentiality and non-competition agreements with certain of its employees, and he agrees
that he will not interfere with any such agreements. The parties agree that the above restrictions
on hiring and solicitation are completely severable and independent agreements supported by good
and valuable consideration and, as such, shall survive the termination of this Agreement for
whatever reason. The parties further agree that any invalidity or unenforceability of any one or
more of such restrictions on hiring and solicitation shall not render invalid or unenforceable any
remaining restrictions on hiring and solicitation. Additionally, should a court of competent
jurisdiction determine that the scope of any provision of this Article 4.2 is too broad to be
enforced as written, the parties intend that the court reform the provision to such narrower scope
as it determines to be reasonable and enforceable.

4.3. Nondisclosure of Trade Secrets. During the term of this Agreement and for a period of two (2)
years thereafter, the Executive agrees: (a) to treat all Proprietary Information in a secret and
confidential manner, take all reasonable steps to maintain such secrecy, and comply with all
applicable procedures established by the Company with respect to maintaining the secrecy and
confidentiality of Proprietary Information; (b) to use Proprietary Information only as necessary
and proper in the performance of the Executive’s duties as an employee of the Company; and (c)
except as required in this Article 4.3, to not directly or indirectly, without the written consent
of the Company, reproduce, copy, disseminate, publish, disclose, provide or otherwise make
available to any person, firm, corporation, agency or other entity, any Proprietary Information.
Under no circumstances shall the Executive use, directly or indirectly, any such Proprietary
Information for his personal gain or profit.

4.4. Nondisparagement. During the Employment Period and at all times thereafter, the Executive
agrees to not disparage the Company or otherwise make comments harmful to the Company’s reputation.

4.5. Ownership. The Executive agrees that all inventions, copyrightable material, business and/or
technical information, marketing plans, customer lists, and trade secrets which arise out of the
performance of this Agreement are the property of the Company.

Article 5. Change in Control

5.1. Change in Control. This Article 5 shall not become effective, and the Company shall have
no obligation hereunder, unless the employment of the Executive with the Company shall terminate
for the reasons provided in this Article 5 during a Potential Change in Control Protection Period
or within the period ending twenty-four (24) calendar months after a Change in Control.

5.2. Definition of Change in Control. Change in Control of the Company shall be as set forth in the
Company’s Phantom Stock Plan effective as of February 11, 2003, and amended and restated effective
as of November 9, 2005, and as such plan or its successor shall be amended from time to time
thereafter; provided, however, that any amendment to the definition of Change in Control shall not
apply to a transaction that occurs within the twenty-four (24) calendar month period after such
amendment is adopted if such transaction would have constituted a Change in Control or Potential
Change in Control without regard to such transaction.

5.3. Potential Change in Control Definitions.

(a) For the purposes of this Agreement, the term “Potential Change in Control” means the date
when any of the following actions occur: (i) The Company enters into an agreement the consummation
of which, or the approval by shareholders of which, would constitute a Change in Control; (ii) any
other event occurs which is deemed to be a Potential Change in Control by the Board and the Board
adopts a resolution to the effect that a Potential Change in Control has occurred.

(b) The term “Potential Change in Control Protection Period” means the period beginning on the
date an event described in the preceding subparagraph occurs and ending (i) with respect to a
Potential Change in Control described in clause (a)(i) above, upon the abandonment or termination
of the applicable agreement; or (ii) with respect to a Potential Change in Control described in
clause (a)(ii) above, upon the one year anniversary of the occurrence of the Potential Change in
Control or such earlier date as may be determined by the Board.

(c) If a Change in Control occurs within the Potential Change in Control Protection Period,
the Potential Change in Control Protection Period shall automatically terminate on the date of the
Change in Control and the Change in Control protections described herein shall simultaneously
commence.

(d) In addition to the foregoing, any termination of the Executive at the request of a third
party in contemplation of a Change in Control or Potential Change in Control shall be deemed to
have occurred during a Potential Change in Control Protection Period.

5.4. Change in Control Severance Benefits. If, at any time during the Potential Change in Control
Protection Period or within the period ending twenty-four (24) calendar months after the occurrence
of a Change in Control, the Executive’s employment is terminated involuntarily by the Company
without Cause (as provided in Article 3.3) or by the Executive for Good Reason (as defined below),
then, if the Executive timely signs a General Release and does not revoke or violate such General
Release, the Company shall be obligated to pay to the Executive, in accordance with Article 3.4:

(a) The amounts and benefits described in Article 3.1(a), (b), (c) and (d) above; and

(b) Outplacement services in an amount not to exceed twenty-five thousand dollars ($25,000)
with a firm selected by the Company and at the reasonable expense of the Company; provided,
however, that under no circumstances shall such outplacement services be provided beyond the
December 31 of the second calendar year following the calendar year in which the Executive’s
Separation From Service occurred. Article 3.4 shall apply to the payment of benefits hereunder.

5.5. Definition of Good Reason. “Good Reason” shall mean, without the Executive’s express written
consent, the occurrence of any one or more of the following events during the Potential Change in
Control Protection Period or within the twenty-four (24) calendar month period immediately
following a Change in Control:

(a) The assignment to the Executive by the Company of duties materially inconsistent with, or
the material reduction of the powers and functions associated with, the Executive’s position,
duties, responsibilities, and status with the Company;

(b) A reduction by the Company in the Executive’s Base Salary or pay incentive opportunities;
unless: (i) the reduction is made with the agreement of the Executive, and/or (ii) the Base Salary
for executives of a similar class are also similarly reduced; or (iii) there is a reduction in base
salary or pay incentive for all senior executives holding substantially similar agreements to this
Agreement;

(c) The Company requiring the Executive to be based anywhere other than a location no more
than twenty (20) miles from the Company’s current principal executive offices or the location where
the Executive is based;

(d) Any material breach by the Company of any provision of this Agreement; or

(e) Any failure by the Company to obtain the assumption of this Agreement by any successor or
assign of the Company effected in accordance with the provisions of Article 6(b).

Unless the Executive becomes Disabled, the Executive’s right to terminate employment for Good
Reason shall not be affected by the Executive’s incapacity due to physical or mental illness. The
Executive’s continued employment shall not constitute consent to, or a waiver of rights with
respect to, any circumstance constituting Good Reason herein. The Executive must provide the
Company with written notice of intent to terminate and request for cure within ninety (90) days
after the occurrence of the Good Reason event, which notice, in the case of an event described in
clause (a) or (d) above, shall provide the Company with a reasonable opportunity (not required to
exceed fourteen (14) days) to cure the event. If the Bank cures the Good Reason event within the
time provided, the Executive’s notice of intent to terminate shall automatically be withdrawn and
of no effect.

Article 6. Miscellaneous

(a) Any notices required by this Agreement shall: (i) be delivered by messenger or made
in writing and mailed by certified mail, return receipt requested, with adequate postage prepaid;
(ii) be deemed given when so delivered or mailed; and (iii) in the case of the Company, be
delivered or mailed to its office at 1750 Tysons Boulevard, Suite 1300, McLean, Virginia
22102-4213, Attn: Corporate Director of Human Resources, or in the case of the Executive, be mailed
to the last home address that the Executive has given to the Company.

(b) The obligations and duties of the Executive under this Agreement are personal and not
assignable by the Executive. This Agreement may and shall be assigned or transferred to, and shall
be binding upon and shall inure to the benefit of, any successor of the Company, and any such
successor shall be deemed substituted for all purposes of the “Company” under the terms of this
Agreement (other than for the purpose of determining whether a Change in Control has occurred or
may potentially occur). If any term or provision of this Agreement is held to be illegal or
invalid, such illegality or invalidity shall not affect the remaining terms or provisions hereof,
and each such remaining term and provision of this Agreement shall be enforced to the fullest
extent permitted by law.

(c) If any dispute arises under this Agreement, such dispute shall be referred to a panel of
three (3) arbitrators for resolution. Any such arbitration proceeding shall take place in
Arlington or Fairfax County, Virginia. All disputes shall be resolved by a single arbitrator. The
arbitrator will have the authority to award the same remedies, damages, and costs that a court
could award. The American Arbitration Association’s Voluntary Labor Arbitration Rules shall govern
procedures for the arbitration, unless the parties unanimously agree to adopt a different rule or
rules.

(d) This Agreement may be altered, amended or modified only by written agreement signed by
both the Executive and the Company. No oral modification of this Agreement, or of any part of this
Agreement including this paragraph, shall have any force or effect. No waiver by either of such
parties of their rights under this Agreement shall be deemed to constitute a waiver with respect to
any subsequent occurrences or transactions hereunder unless such waiver specifically states that it
is to be construed as a continuing waiver.

(e) This Agreement contains the entire understanding between the parties and supersedes any
prior written or oral agreement(s) between the Company and the Executive relating to the
termination of the Executive’s employment and the amounts payable under this Agreement, provided
that the provisions contained in the Company’s offer letter to the Executive, dated October 18,
2007, and the Bonus Agreement between the Company and the Executive, dated as of November 12, 2007,
shall remain in full force and effect. This Agreement shall not be modified or waived except by
written instrument signed by the parties.

(f) To the extent not preempted by federal law, the provisions of this Agreement shall be
construed and enforced in accordance with the laws of the state of Virginia without reference to
Virginia choice of law statutes or decisions.

IN WITNESS WHEREOF, the Executive and the Company have executed this Agreement as of the effective
date first described above.

EXECUTIVE:

By:     /s/ Michael J. Alber     

Michael J. Alber

ALION SCIENCE AND TECHNOLOGY CORPORATION:

By     /s/ Dr. Bahman Atefi     

Dr. Bahman Atefi

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