Document:

ex4-2.htm

Exhibit 4.2

 

VERSAR, INC.

 

2010 STOCK INCENTIVE PLAN

 

 

Restricted Share Award Agreement

 

 

Award No. _________

 

You are hereby awarded Restricted Shares subject to the terms and conditions set forth in this Restricted Share Award Agreement (“Award Agreement”), and in the Versar, Inc. 2010 Stock Incentive Plan (the “Plan”), which is attached hereto as Exhibit A.  A summary of the Plan appears in its Prospectus, which is attached as Exhibit B.  You should carefully review these documents, and consult with your personal financial advisor, in order to fully understand the implications of this Award, including your tax alternatives and their consequences.

 

By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out verbatim in this Award Agreement.  In addition, you recognize and agree that all determinations, interpretations, or other actions respecting the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of Versar, Inc. (the “Company”) or the Committee pursuant to Section 4(c) of the Plan, and that such determinations, interpretations or other actions are (in the absence of manifest bad faith or fraud) final, conclusive and binding upon all parties, including you, your heirs, and representatives.  Capitalized terms are defined in the Plan or in this Award Agreement.

 

1.           Specific Terms.  Your Restricted Shares have the following terms:

 

	
Name of Participant

 

	  
	
Number of Shares

Subject to Award

 

	  
	
Purchase Price per

Share (if applicable)

 

	
 

Not applicable.

 

	
Award Date

 

	  
	
Vesting

	
At the rate of __% on each of the next ___ anniversaries of the Award Date; subject to acceleration as provided in the Plan and in Section 2 below, to any shareholder approval condition in the Plan, and to your Continuous Service not ending before the vesting date.

	
Lifetime Transfer

	
Not allowed.

 

	
Deferral Elections

 

	
o Allowed in accordance with Section 8(g) of the Plan.  o Not allowed.

 

  

  

  

 

Restricted Share Award Agreement

Versar, Inc.

2010 Stock Incentive Plan

Page 2

 

2.           Accelerated Vesting; Change in Corporate Control.  To the extent you have not previously vested in your rights with respect to this Award, your Award will become –

 

	
  

	
o

	
100% vested if your Continuous Service ends due to your death or “disability” within the meaning of Section 22(e)(3) of the Code;

 

	
  

	
o

	
___% vested if your Continuous Service ends due to your retirement at or after you have attained the age of ___ and completed at least ___ full years of Continuous Service;

 

	
  

	
o

	
according to the following schedule if your Continuous Service ends due to an Involuntary Termination that occurs within the one year period following a Change in Control:

 

   Date on which Your Involuntary Termination                                                                                   Portion of Your Award

   Occurs (by reference to Date of Award)                                                                                              As to which Vesting Accelerates

 

3.            Dividends.   Any cash or stock dividends on your Restricted Shares will be held by the Company (unsegregated as part of its general assets) until the period of forfeiture lapses (and forfeited if the underlying Shares are forfeited), and paid over to you as soon as practicable after such period lapses (if not forfeited).

 

4.            Investment Purposes. You acknowledge that you are acquiring your Restricted Shares for investment purposes only and without any present intention of selling or distributing them.

 

5.            Issuance of Restricted Shares.  Until all vesting restrictions lapse, any certificates that you receive for Restricted Shares will include a legend stating that they are subject to the restrictions set forth in the Plan and this Award Agreement.  The Company may, in its discretion, hold such Restricted Shares in escrow until vesting occurs.

 

6.            Lapse of Vesting Restrictions. As vesting restrictions lapse, the Company shall cause certificates for Shares to be issued and delivered to you, with such legends and restrictions that the Committee determines to be appropriate.  Certificates shall not be delivered to you unless you have made arrangements satisfactory to the Committee to satisfy tax-withholding obligations.

 

7.            Long-term Consideration for Award.  The Participant recognizes and agrees that the Company’s key consideration in granting this Award is securing the long-term commitment of the Participant to serve as a trusted executive officer who will advance and promote the Company’s business interests and objectives.  Accordingly, the Participant agrees that this Award shall be subject to the terms and conditions set forth in Section 25 of the Plan (relating to the termination, rescission, and recapture if you violate certain commitments made therein to the Company), as well as to the following terms and conditions as material and indivisible consideration for this Award:

 

(a)           Fiduciary Duty.  During his or her employment with the Company the Participant shall devote his or her full energies, abilities, attention and business time to the performance of his or her job responsibilities and shall not engage in any activity which conflicts or interferes with, or in any way compromises, his or her performance of such responsibilities.

 

  

  

  

 

Restricted Share Award Agreement

Versar, Inc.

2010 Stock Incentive Plan

Page 3

 

(b)           Confidential Information.  The Participant recognizes that by virtue of his or her employment with the Company, he or she will be granted otherwise prohibited access to confidential information and proprietary data which are not known to the Company’s competitors.  This information (the “Confidential Information”) includes, but is not limited to, current and prospective customers; the identity of key contacts at such customers; customers’ particularized preferences and needs; marketing strategies and plans; financial data; personnel data; compensation data; proprietary procedures and processes; and other unique and specialized practices, programs and plans of the Company and its customers and prospective customers.  The Participant recognizes that this Confidential Information constitutes a valuable property of the Company, developed over a significant period of time and at substantial expense.  Accordingly, the Participant agrees that he or she shall not, at any time during or after his or her employment with the Company, divulge such Confidential Information or make use of it for his or her own purposes or the purposes of any person or entity other than the Company.

 

(c)           Non-Solicitation of Customers.  The Participant recognizes that by virtue of his or her employment with the Company he or she will be introduced to and involved in the solicitation and servicing of existing customers of the Company and new customers obtained by the Company during his or her employment.  The Participant understands and agrees that all efforts expended in soliciting and servicing such customers shall be for the permanent benefit of the Company.  The Participant further agrees that during his or her employment with the Company the Participant will not engage in any conduct which could in any way jeopardize or disturb any of the Company’s customer relationships.  The Participant also recognizes the Company’s legitimate interest in protecting, for a reasonable period of time after his or her employment with the Company, the Company’s customers.  Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending one (1) year after termination of Participant’s employment with the Company, regardless of the reason for such termination, the Participant shall not, directly or indirectly, without the prior written consent of the Chairman of the Company, market, offer, sell or otherwise furnish any products or services similar to, or otherwise competitive with, those offered by the Company to any customer of the Company.

 

(d)           Non-Solicitation of Employees.  The Participant recognizes the substantial expenditure of time and effort which the Company devotes to the recruitment, hiring, orientation, training and retention of its employees.  Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending two (2) years after termination of Participant’s employment with the Company, regardless of the reason for such termination, the Participant shall not, directly or indirectly, for himself or herself or on behalf of any other person or entity, solicit, offer employment to, hire or otherwise retain the services of any employee of the Company.

 

  

  

  

 

Restricted Share Award Agreement

Versar, Inc.

2010 Stock Incentive Plan

Page 4

 

(e)           Survival of Commitments; Potential Recapture of Award and Proceeds.  The Participant acknowledges and agrees that the terms and conditions of this Section 6 regarding confidentiality and non-solicitation shall survive both (i) the termination of Participant’s employment with the Company for any reason, and (ii) the termination of the Plan, for any reason.  The Participant acknowledges and agrees that the grant of Restricted Shares in this Award Agreement is just and adequate consideration for the survival of the restrictions set forth herein, and that the Company may pursue any or all of the following remedies if the Participant either violates the terms of this Section or succeeds for any reason in invalidating any part of it (it being understood that the invalidity of any term hereof would result in a failure of consideration for the Award):

 

	
  

	
(i)

	
declaration that the Award is null and void and of no further force or effect;

 

	
  

	
(ii)

	
recapture of any cash paid or Shares issued to the Participant, or any designee or beneficiary of the Participant, pursuant to the Award;

 

	
  

	
(iii)

	
recapture of the proceeds, plus reasonable interest, with respect to any Shares that are both issued pursuant to this Award and sold or otherwise disposed of by the Participant, or any designee or beneficiary of the Participant.

 

The remedies provided above are not intended to be exclusive, and the Company may seek such other remedies as are provided by law, including equitable relief.

 

(f)           Acknowledgement.  The Participant acknowledges and agrees that his or her adherence to the foregoing requirements will not prevent him or her from engaging in his or her chosen occupation and earning a satisfactory livelihood following the termination of his or her employment with the Company.

 

8.            Section 83(b) Election Notice.  If you make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Shares underlying your Restricted Shares (a “Section 83(b) election”), you agree to provide a copy of such election to the Company within 10 days after filing that election with the Internal Revenue Service.  Exhibit C contains a suggested form of Section 83(b) election.

 

9.            Restrictions on Transfer. This Award Agreement may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee.  Any transferee of the Participant’s rights shall succeed and be subject to all of the terms of this Award Agreement and the Plan.

 

10.           Taxes.  By signing this Award Agreement, you acknowledge that you shall be solely responsible for the satisfaction of any taxes that may arise (including taxes arising under Sections 409A or 4999 of the Code), and that neither the Company nor the Administrator shall have any obligation whatsoever to pay such taxes.

 

11.           Designation of Beneficiary.  Notwithstanding anything to the contrary contained herein or in the Plan, following the execution of this Award Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your interest, if any, in the Restricted Shares awarded hereby.  You shall designate the Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as Exhibit D (the “Designation of Beneficiary”) and delivering an executed copy of the Designation of Beneficiary to the Company.

 

  

  

  

 

Restricted Share Award Agreement

Versar, Inc.

2010 Stock Incentive Plan

Page 5

 

12.           Notices.  Any notice or communication required or permitted by any provision of this Award Agreement to be given to you shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records.  Each party may, from time to time, by notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement.  Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed.

 

13.           Binding Effect.  Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns.

 

14.           Modifications.  This Award Agreement may be modified or amended at any time by the Committee, provided that your consent must be obtained for any modification that adversely alters or impairs any rights or obligations under this Award Agreement, unless there is an express Plan provision permitting the Committee to act unilaterally to make the modification.

 

14.           Headings.  Headings shall be ignored in interpreting this Award Agreement.

 

15.           Severability.  Every provision of this Award Agreement and the Plan is intended to be severable, and any illegal or invalid term shall not affect the validity or legality of the remaining terms.

 

16.           Counterparts.  This Award Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute the same instrument.

 

17.           Governing Law.  This Award Agreement shall be interpreted, administered and otherwise subject to the laws of the State of Virginia (disregarding any choice-of-law provisions).

 

 

18.           Not a Contract of Employment.  By executing this Award, you acknowledge and agree that (i) any person who is terminated before full vesting of an award, such as the one granted to you by this Award, could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company, nor shall it affect in any way your right or the Company’s right to terminate your employment, service, or consulting relationship at any time, with or without Cause; and (iv) the Company would not have granted this Award to you but for these acknowledgements and agreements.

 

  

  

  

 

Restricted Share Award Agreement

Versar, Inc.

2010 Stock Incentive Plan

Page 6

 

BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the Company agree that the Restricted Shares are awarded under and governed by the terms and conditions of this Award Agreement and the Plan.

 

	 	VERSAR, INC.	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	PARTICIPANT	 
	 	 	 
	 	The undersigned Participant hereby accepts the terms of this Award Agreement and the Plan.
	 	 	 	 
	 	
By: 

	 	 

	 	 	 	 	 
	 	 	Name of Participant:	 	 

 

  

  

  

VERSAR, INC.

2010 Stock Incentive Plan

 

Exhibit A

 

Plan Document

 

  

  

  

 

VERSAR, INC.

2010 Stock Incentive Plan

 

Exhibit B

 

Plan Prospectus

 

  

  

  

 

VERSAR, INC.

2010 Stock Incentive Plan

 

Exhibit C

 

Section 83(b) Election Form

 

Attached is an Internal Revenue Code Section 83(b) Election Form.  IF YOU WISH TO MAKE A SECTION 83(B) ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE DATE THE RESTRICTED SHARES COVERED BY THE ELECTION WERE TRANSFERRED TO YOU.  In order to make the election, you must completely fill out the attached form and file one copy with the Internal Revenue Service office where you file your tax return.  In addition, one copy of the statement also must be submitted with your income tax return for the taxable year in which you make this election.  Finally, you also must submit a copy of the election form to the Company within 10 days after filing that election with the Internal Revenue Service.  A Section 83(b) election normally cannot be revoked.

 

  

  

  

 

VERSAR, INC.

2010 Stock Incentive Plan

 

 

Election to Include Value of Restricted Shares in Gross Income

in Year of Transfer Under Internal Revenue Code Section 83(b)

 

 

Pursuant to Section 83(b) of the Internal Revenue Code, I hereby elect within 30 days after receiving the property described herein to be taxed immediately on its value specified in item 5 below.

 

	
1.

	
My General Information:

 

	
 

	

Name:  

	 	 
	 	 	 	 
	 	
Address:       

	 	 
	 	 	 	 
	 	
 

	 	 
	 	 	 	 
	 	
S.S.N.

	 	 
	 	or T.I.N.:	 	 

 

	
2.

	
Description of the property with respect to which I am making this election:

 

____________________ shares of ___________ stock of Versar, Inc. (the “Restricted Shares”).

 

	
3.

	
The Restricted Shares were transferred to me on ______________ ___, 20__.  This election relates to the 20____ calendar taxable year.

 

	
4.

	
The Restricted Shares are subject to the following restrictions:

 

The Restricted Shares are forfeitable until they is are earned in accordance with Section 8 of the Versar, Inc. 2010 Stock Incentive Plan (“Plan”) Restricted Shares Award Agreement (“Award Agreement”) or other Award Agreement or Plan provisions. The Restricted Shares generally are not transferable until my interest becomes vested and nonforfeitable, pursuant to the Award Agreement and the Plan.

 

5.           Fair market value:

 

The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms never will lapse) of the Restricted Shares with respect to which I am making this election is $_____ per share.

 

  

  

  

 

6.           Amount paid for Restricted Shares:

 

The amount I paid for the Restricted Shares is $____ per share.

 

7.           Furnishing statement to employer:

 

A copy of this statement has been furnished to my employer, ______________.  If the transferor of the Restricted Shares is not my employer, that entity also has been furnished with a copy of this statement.

 

8.           Award Agreement or Plan not affected:

 

Nothing contained herein shall be held to change any of the terms or conditions of the Award Agreement or the Plan.

 

Dated: ____________ __, 200_.

 

	 	 	 
	 	 	 
	 	        Taxpayer	 

 

  

  

  

 

VERSAR, INC.

2010 Stock Incentive Plan

 

Exhibit D

 

Designation of Beneficiary

 

In connection with the RESTRICTED SHARE AWARD AGREEMENT (the “Award Agreement”) entered into on _______________, 200_ between Versar, Inc. (the “Company”) and _______________, an individual residing at _______________ (the “Recipient”), the Recipient hereby designates the person specified below as the beneficiary of the Recipient’s interest in Restricted Shares (as defined in the 2010 Stock Incentive Plan of the Company) awarded pursuant to the Award Agreement.  This designation shall remain in effect until revoked in writing by the Recipient.

 

	 	
Name of Beneficiary:

	  	 
	 	
 

Address:

	  	 
	 	  	
 

 

	 
	 	  	
 

  

	 
	 	
 

Social Security No.:

	  	 

 

The Recipient understands that this designation operates to entitle the above-named beneficiary to the rights conferred by the Award Agreement from the date this form is delivered to the Company until such date as this designation is revoked in writing by the Recipient, including by delivery to the Company of a written designation of beneficiary executed by the Recipient on a later date.

 

	
Date:

	  	  
	
 

By:

	 	 
	  	  	
[Recipient Name]

 

	Sworn to before me this 	 	 	 	 
	____ day of ____________, 200_ 	 	 	 	 
	 	 	 	 	 
	
_________________________________

	 	 	
 

	 
	
Notary Public

	 	 	
 

	 
	
 

	 	 	
 

	 
	County of  ________________________	 	 	 	 
	State of      ________________________ex4-3.htm

Exhibit 4.3

 

VERSAR, INC.

 

2010 STOCK INCENTIVE PLAN

 

 

Performance Stock

 

Award Agreement

(shared settled)

 

	
Award No.

	
20___-[__]

 

You are hereby awarded Performance Units, to be settled in shares of Versar’s common stock (“Performance Stock”), subject to the terms and conditions set forth in this agreement (“Award Agreement”), and in the Versar, Inc. 2010 Stock Incentive Plan (the “Plan”), which is attached hereto as Exhibit A.  A summary of the Plan appears in its Prospectus, which is attached as Exhibit B.  You should carefully review these documents, and consult with your personal financial advisor, in order to fully understand the implications of this Award, including your tax alternatives and their consequences.

 

By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out verbatim in this Award Agreement.  In addition, you recognize and agree that all determinations, interpretations, or other actions respecting the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of Versar, Inc. (the “Company”) or the Committee pursuant to Section 4(c) of the Plan, and that such determinations, interpretations or other actions are (in the absence of manifest bad faith or fraud) final, conclusive and binding upon all parties, including you, your heirs, and representatives.  Capitalized terms are defined in the Plan or in this Award Agreement.

 

1.           Specific Terms of Your Award.  This Performance Stock Award is being granted pursuant to Section 10 of the Plan, and shall have the terms set forth in the table below; subject, absolutely, to the terms of the Plan and to the Committee’s discretion to interpret the Plan and this Award in any manner that the Committee may deem reasonably necessary or appropriate in order for this Award to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m)(4) of the Code, and associated tax regulations and rulings.

 

	
Name of Participant

	
________________________

 

	
Date of Award

	
______________ _____, 20__

 

	
Range in Value of Shares of Performance Stock

	
Threshold:               $_____________

Target:                     $_____________

Maximum:               $_____________

 

 

  

  

  

 

Performance Unit and Performance Stock Award

Versar, Inc.

2010 Stock Incentive Plan

 

	
Performance Period for Qualification

	
___________ _____, 20___ to ___________ _____, 20___

 

	 
	
Performance Measures

	
See Schedule 20___-1, attached hereto as Exhibit C.

 

	 
	
Pricing Date to Determine Number of Shares

	
___________ _____, 20___

 

	 
	
Qualification

	
Subject to the treatment (including, as applicable, acceleration) upon termination of employment as provided in the Plan, on ______________ _____, 20__, you may qualify to receive a number of Shares equal in value to  (based in the closing price on the Pricing Date) such value that corresponds to the extent to which the above Performance Measures are satisfied and the weights assigned thereto as set forth on Schedule ___-1, attached hereto as Exhibit C.  The Shares, if any, you qualify to receive will be issued as of the Pricing Date, but shall be subject to further vesting as set forth below.

 

	 
	
Performance Period for Further Vesting

	
______________ _____, 20__ to ______________ _____, 20__

 

	 
	
Performance Measure for Determining Further Vesting

	  	 
	
Further Vesting

	
Subject to treatment (including, as applicable, acceleration) upon termination of employment as provided in the Plan, (a) with respect to  _____% of the Shares, _____ of  such Shares shall vest on each of ______________ _____, 20___, 20___ and 20___ and (b) with respect to _____% of the Shares, _____% of such Shares shall vest on ______________ _____, 20___ provided that the Performance Measure for Determining Further Vesting is satisfied.

 

	 

 

2.           Issuance of Shares of Performance Stock.  If you qualify to receive any Shares of Performance Stock that remain subject to further vesting, the stock certificates evidencing such Shares that will be issued as of the Pricing Date will bear the following legend that shall remain in place and effective until all other vesting restrictions lapse and new certificates are issued pursuant to Section 6(b) below:

 

“The sale or other transfer of the Stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer set forth in the Versar, Inc. 2010 Stock Incentive Plan, in the rules and administrative procedures adopted pursuant to such Plan and in a related Award Agreement.  A copy of the Plan, such rules and procedures and such Award Agreement may be obtained from the Secretary of Versar, Inc.”

 

  

2

  

 

Performance Unit and Performance Stock Award

Versar, Inc.

2010 Stock Incentive Plan

 

3.           Unvested Performance Stock.  You will be reflected as the owner of record on the Company’s books and records of any Shares of Performance Stock issued pursuant to this Award. The Company will hold the stock certificates for safekeeping until such Shares have become vested and non-forfeitable.  You must deliver to the Company, as soon as practicable after the date any Shares of Performance Stock are issued, a stock power, endorsed in blank, with respect to any such Shares. If you forfeit any Shares of Performance Stock, the stock power will be used to return the certificates for the forfeited Shares to the transfer agent for cancellation.  As the owner of record of any Shares of Performance Stock you qualify to receive pursuant to this Award, you will be entitled to all rights of a stockholder of the Company, including the right to vote Shares and the right to the payment of any cash dividends and other distributions (including those paid in stock) following the date of issuance of such Shares and to the  extent paid in stock, such stock shall be subject to the same restrictions contained in Section 4, subject in each case to the treatment of the Award upon termination of employment before the particular record date for determining stockholders of record entitled to the payment of the dividend or distribution.

 

4.           Qualification and Vesting.   If you qualify to receive any Shares of Performance Stock, subject to further vesting, as the further vesting restrictions become satisfied over time or upon satisfaction of the relevant performance measures, the Company shall cause new stock certificates for the Shares of Performance Stock so vested to be delivered to you, with such legends the Company determines to be appropriate.  New certificates shall not be delivered to you unless you have made arrangements satisfactory to the Committee to satisfy tax-withholding obligations. To the extent not previously vested, your shares of Performance Stock will be immediately forfeited if your Continuous Services ends for any reason.

 

5.           Long-term Consideration for Award.  The Participant recognizes and agrees that the Company’s key consideration in granting this Award is securing the long-term commitment of the Participant to serve as a _________ who will advance and promote the Company’s business interests and objectives.  Accordingly, the Participant agrees that this Award shall be subject to the terms and conditions set forth in Section 25 of the Plan (relating to the termination, rescission, and recapture if you violate certain commitments made therein to the Company), as well as to the following terms and conditions as material and indivisible consideration for this Award:

 

  (a)           Fiduciary Duty. During his or her employment with the Company the Participant shall devote his or her full energies, abilities, attention and business time to the performance of his or her job responsibilities and shall not engage in any activity which conflicts or interferes with, or in any way compromises, his or her performance of such responsibilities.

 

  (b)           Confidential Information.  The Participant recognizes that by virtue of his or her employment with the Company, he or she will be granted otherwise prohibited access to confidential information and proprietary data which are not known, and not readily accessible to the Company’s competitors.  This information (the “Confidential Information”) includes, but is not limited to, current and prospective customers; the identity of key contacts at such customers; customers’ particularized preferences and needs; marketing strategies and plans; financial data; personnel data; compensation data; proprietary procedures and processes; and other unique and specialized practices, programs and plans of the Company and its customers and prospective customers.  The Participant recognizes that this Confidential Information constitutes a valuable property of the Company, developed over a significant period of time and at substantial expense.  Accordingly, the Participant agrees that he or she shall not, at any time during or after his or her employment with the Company, divulge such Confidential Information or make use of it for his or her own purposes or the purposes of any person or entity other than the Company.

 

  

3

  

 

Performance Unit and Performance Stock Award

Versar, Inc.

2010 Stock Incentive Plan

 

(c)           Non-Solicitation of Customers.  The Participant recognizes that by virtue of his or her employment with the Company he or she will be introduced to and involved in the solicitation and servicing of existing customers of the Company and new customers obtained by the Company during his or her employment.  The Participant understands and agrees that all efforts expended in soliciting and servicing such customers shall be for the permanent benefit of the Company.  The Participant further agrees that during his or her employment with the Company the Participant will not engage in any conduct which could in any way jeopardize or disturb any of the Company’s customer relationships.  The Participant also recognizes the Company’s legitimate interest in protecting, for a reasonable period of time after his or her employment with the Company, the Company’s customers.  Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending one (1) year after termination of Participant’s employment with the Company, regardless of the reason for such termination, the Participant shall not, directly or indirectly, without the prior written consent of the Chairman of the Company, market, offer, sell or otherwise furnish any products or services similar to, or otherwise competitive with, those offered by the Company to any customer of the Company.

 

(d)           Non-Solicitation of Employees.  The Participant recognizes the substantial expenditure of time and effort which the Company devotes to the recruitment, hiring, orientation, training and retention of its employees.  Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending two (2) years after termination of Participant’s employment with the Company, regardless of the reason for such termination, the Participant shall not, directly or indirectly, for himself or herself or on behalf of any other person or entity, solicit, offer employment to, hire or otherwise retain the services of any employee of the Company.

 

(e)           Survival of Commitments; Potential Recapture of Award and Proceeds.  The Participant acknowledges and agrees that the terms and conditions of this Section regarding confidentiality and non-solicitation shall survive both (i) the termination of Participant’s employment with the Company for any reason, and (ii) the termination of the Plan, for any reason.  The Participant acknowledges and agrees that the grant of Options in this Award Agreement is just and adequate consideration for the survival of the restrictions set forth herein, and that the Company may pursue any or all of the following remedies if the Participant either violates the terms of this Section or succeeds for any reason in invalidating any part of it (it being understood that the invalidity of any term hereof would result in a failure of consideration for the Award):

 

	
  

	
(i)

	
declaration that the Award is null and void and of no further force or effect;

 

	
  

	
(ii)

	
recapture of any Shares issued to the Participant, or any designee or beneficiary of the Participant, pursuant to the Award;

 

	
  

	
(iii)

	
recapture of the proceeds, plus reasonable interest, with respect to any Shares that are both issued pursuant to this Award and sold or otherwise disposed of by the Participant, or any designee or beneficiary of the Participant.

 

  

4

  

 

Performance Unit and Performance Stock Award

Versar, Inc.

2010 Stock Incentive Plan

 

The remedies provided above are not intended to be exclusive, and the Company may seek such other remedies as are provided by law, including equitable relief.

 

  (f)           Acknowledgement.  The Participant acknowledges and agrees that his or her adherence to the foregoing requirements will not prevent him or her from engaging in his or her chosen occupation and earning a satisfactory livelihood following the termination of his or her employment with the Company.

 

6.           Not a Contract of Employment.  By executing this Award, you acknowledge and agree that (i) any person who is terminated before full vesting of an award, such as the one granted to you by this Award, could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company, nor shall it affect in any way your right or the Company’s right to terminate your employment, service, or consulting relationship at any time, with or without Cause; and (iv) the Company would not have granted this Award to you but for these acknowledgements and agreements.

 

7.           Severability.  Subject to one exception, every provision of this Award and the Plan is intended to be severable, and if any provision of the Plan or this Award is held by a court of competent jurisdiction to be invalid and unenforceable, the remaining provisions shall continue to be fully effective.  The only exception is that this Award shall be unenforceable if any provision of the preceding section is illegal, invalid, or unenforceable.

 

8.           Notices.  Any notice, payment or communication required or permitted to be given by any provision of this Award shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed as follows:

 

	
  

	
(a)

	
if to the Company, at the address set forth herein, to the attention of:  Committee of the 2010 Stock Incentive Plan:

 

_______________

 

_______________, ____  ______;

 

	
  

	
(b)

	
if to you, at the following address:

 

_______________

 

_______________, ____  ______;

 

Each party may, from time to time, by notice to the other party hereto, specify a new address for delivery of notices relating to this Award.  Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed.

 

9.           Binding Effect.  Every covenant, term and provision of this Award shall be binding upon and inure to the benefit of the parties hereto and their respective beneficiaries, heirs, legatees, legal representatives, successors, transferees, and assigns.

 

  

5

  

 

Performance Unit and Performance Stock Award

Versar, Inc.

2010 Stock Incentive Plan

 

10.           Designation of Beneficiary.  Notwithstanding anything to the contrary contained herein or in the Plan, following the execution of this Award, the Participant may expressly designate a beneficiary (the “Beneficiary”) to his or her interest in the Performance Stock awarded hereby.  The Participant shall designate the Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as Exhibit D (the “Designation of Beneficiary”) and delivering an executed copy of the Designation of Beneficiary to the Company.  The Participant may, at any time, change or revoke such designation.  A Beneficiary designation, or revocation of a prior Beneficiary designation, shall be effective only if it is made in writing on a form provided by the Company, signed by the Participant and received by the Company.  If the Participant does not designate a Beneficiary or the Beneficiary dies prior to having received all incentive compensation due under this Award, such compensation shall be paid to the Participant’s estate.

 

11.           Headings.  Headings shall be ignored in interpreting this Award.

 

12.           Counterparts.  This Award may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute the same instrument.

 

13.           Income Taxes and Deferred Compensation.  The Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with this Award (including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or otherwise hold any Participant harmless from any or all of such taxes.  The Committee shall have the discretion to unilaterally modify this Award in a manner that (i) conforms with the requirements of Section 409A of the Code with respect to compensation that is deferred and that vests after December 31, 2004, (ii) that voids any election of the Participant to the extent it would violate Section 409A of the Code, and (iii) for any distribution election that would violate Section 409A of the Code, to make distributions pursuant to the Award at the earliest to occur of a distribution event that is allowable under Section 409A of the Code or any distribution event that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second election to defer, provided that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(C).  The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and this Award Agreement.

 

14.           Governing Law.  The laws of the State of Virginia shall govern the validity of this Award, the construction of its terms, and the interpretation of the rights and duties of the parties hereto (disregarding any choice-of-law provisions).

 

15.           Modifications. This Award Agreement may be modified or amended at any time, provided that you must consent in writing to any modification that adversely alters or impairs any rights or obligations under this Award Agreement.

 

BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the Company agree that this Award is being made under and governed by the terms and conditions of this Award and the Plan.

 

  

6

  

 

Performance Unit and Performance Stock Award

Versar, Inc.

2010 Stock Incentive Plan

 

	 	
VERSAR, INC.

	 
	 	 	 
	 	By: 	 	 
	 	 	Printed Name:	 
	 	 	
A duly-authorized officer

	 

 

The undersigned Participant hereby accepts the terms of this Award and the Plan.

 

	 	Signature: 	 	 

 

	 	Printed Name: 	 	 

 

  

7

  

 

Exhibit A

 

Versar, Inc.

 

2010 Stock Incentive Plan

 

  

 

  

 

Exhibit B

 

Versar, Inc.

 

2010 Stock Incentive Plan

 

Plan Prospectus

 

  

 

  

 

Exhibit C

 

Versar, Inc.

 

2010 Stock Incentive Plan

 

SCHEDULE 20___-1

 

Performance Measures to Determine Qualification for

Performance Stock

 

	  	
Measure

	
Threshold

	
Target

	
Maximum

	
Weight

	
1.

	  	
$_____

	
$_____

	
$_____

	
_____%

	
2.

	  	
$_____

	
$_____

	
$_____

	
_____%

	
3.

	  	
$_____

	
$_____

	
$_____

	
_____%

 

Range of Award Values for Use in Calculation

 

	
Threshold Award Value

	
Target Award Value

	
Maximum Award Amount

	
$_____

	
$_____

	
$_____

 

  

 

  

 

Exhibit D

 

Versar, Inc.

 

2010 Stock Incentive Plan

 

Designation of Beneficiary Form

 

In connection with the Award Agreement granting Performance Stock (the “Award”) entered into on ______________ _____, 20___ between Versar, Inc. (the “Company”) and _______________, an individual residing at _______________ (the “Participant”), the Participant hereby designates the person specified below as the beneficiary of the Participant’s interest in the Performance Stock awarded pursuant to the Award.  This designation shall remain in effect until revoked in writing by the Participant.

 

	
Name of Beneficiary:

	  	  
	
Address:

	  	  
	 	 	 
	  	  	  
	 	 	 
	  	  	  
	 	 	 
	
Social Security No.:

	  	  
	 	 	 

 

The Participant understands that this designation operates to entitle the above-named beneficiary to the rights conferred by the Award from the date this form is delivered to the Company until such date as this designation is revoked in writing by the Participant, including by delivery to the Company of a written designation of beneficiary executed by the Participant on a later date.

 

	
Date:

	  	  
	 	 	 
	
By:

	  	  
	  	  	
[Participant Signature]

 

	Sworn to before me this	 
	____ day of ____________, 200_	 
	 	 
	Notary Public	 

 

	County of 	 	 

 

	State of

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