Document:

EXHIBIT
10.2

 

SEVERANCE AGREEMENT

 

This SEVERANCE
AGREEMENT (this “Agreement”)
is entered into as of the 4th day of April, 2008 (the “Effective
Date”), by and between Force Protection, Inc., a Nevada
corporation (the “Company”),
and Mark Edwards (“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the
Executive currently serves as a key employee of the Company and the Executive’s
services and knowledge are valuable to the Company in connection with the
management of one or more of the Company’s principal operating facilities,
divisions, departments or Subsidiaries (as defined in Section 1);

 

WHEREAS, the
Board (as defined in Section 1) has determined that it is in the
best interests of the Company and its stockholders to improve upon the existing
severance protections for its key employees and to provide an additional
inducement to secure the Executive’s continued services and, in the event of
any threat or occurrence of, or negotiation or other action that could lead to,
or create the possibility of, a Change in Control (as defined in Section 1)
of the Company, to ensure the Executive’s continued and undivided dedication to
the Executive’s duties when faced with the possibility of  Change in Control; and

 

WHEREAS, the
Board has authorized the Company to enter into this Agreement.

 

NOW, THEREFORE,
for and in consideration of the promises and the mutual covenants and
agreements herein contained, the Company and the Executive hereby agree as
follows:

 

1.             Definitions.  As
used in this Agreement, the following terms shall have the respective meanings
set forth below:

 

(a)           “Board”
means the Board of Directors of the Company.

 

(b)           “Cause”
means (i) the Executive’s material breach of the Executive’s duties and
responsibilities (other than as a result of the Executive’s Disability) which
is (x) demonstrably willful and deliberate on the Executive’s part, (y) committed
in bad faith or without reasonable belief that such breach is in the best
interests of the Company and (z) not remedied within ten (10) days
after receipt of written notice from the Company specifying such breach; (ii) the
Executive’s indictment for, conviction of, or plea of nolo
contendere to, a felony; or (iii) the Executive’s gross
negligence or any act of theft, fraud, misappropriation, malfeasance or dishonesty
by the Executive in connection with the performance of the Executive’s duties
to the Company which is demonstrably willful and deliberate on the Executive’s
part.

 

Cause shall not exist unless and until the Company has
delivered to the Executive a copy of a resolution duly adopted by a majority of
the entire Board at any duly called meeting of the Board (after reasonable
notice to the Executive and an opportunity for the Executive, together with
counsel, to be heard before the Board), finding that in the good faith opinion
of the Board an event set forth in clauses (i), (ii) or (iii) has
occurred and specifying the particulars thereof in detail.

 

The Company must notify the Executive of any event
constituting Cause (in accordance with the provisions of Section 14(b))
within ninety (90) days following the Board’s (excluding, if applicable, the
Executive) knowledge of its existence or such event shall not constitute Cause
under this Agreement.

 

(c)           “Change in
Control” means the occurrence of any one of the following
events:

 

 

(i)            any “person” (as such
term is defined in Section 3(a)(9) of the Securities Exchange Act of
1934 (the “Exchange
Act”) and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power
of the Company’s then outstanding securities eligible to vote for the election
of the Board (the “Company
Voting Securities”); provided, however,
that the event described in this paragraph (i) shall not be deemed to be a
Change in Control by virtue of any of the following acquisitions:  (A) by the Company or any Subsidiary; (B) by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary; (C) by any underwriter temporarily holding
securities pursuant to an offering of such securities; (D) pursuant to a
Non-Control Transaction (as defined in paragraph (iii) below); or (E) a
transaction (other than one described in paragraph (iii) below) in which
Company Voting Securities are acquired from the Company, if a majority of the
Incumbent Board (as defined in paragraph (ii) below) approves a resolution
providing expressly that the acquisition pursuant to this clause (E) does
not constitute a Change in Control under this paragraph (i);

 

(ii)           individuals who, on February 29,
2008, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority thereof, provided that
any person becoming a director subsequent to February 29, 2008, whose
election or nomination for election was approved by a vote of at least
two-thirds of the directors comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for director, without objection to such
nomination) shall be considered a member of the Incumbent Board; provided,
however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with
respect to directors or any other actual or threatened solicitation of proxies
or consents by or on behalf of any person other than the Board shall be deemed
to be a member of the Incumbent Board;

 

(iii)          the consummation of a
merger, consolidation, share exchange or similar form of corporate transaction
involving the Company or any of its Subsidiaries that requires the approval of
the Company’s stockholders (whether for such transaction or the issuance of
securities in the transaction or otherwise) (a “Reorganization”),
unless immediately following such Reorganization:  (A) more than 60% of the total voting
power of (x) the corporation resulting from such Reorganization (the “Surviving Company”), or (y) if
applicable, the ultimate parent corporation that directly or indirectly has
beneficial ownership of 95% of the voting securities eligible to elect
directors of the Surviving Company (the “Parent Company”),
is represented by Company Voting Securities that were outstanding immediately
prior to such Reorganization (or, if applicable, is represented by shares into
which such Company Voting Securities were converted pursuant to such
Reorganization), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting
Securities among holders thereof immediately prior to the Reorganization; (B) no
person (other than any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Company or the Parent Company) is or becomes the
beneficial owner, directly or indirectly, of 35% or more of the total voting
power of the outstanding voting securities eligible to elect directors of the
Parent Company (or, if there is no Parent Company, the Surviving Company); and (C) at
least a majority of the members of the board of directors of the Parent Company
(or, if there is no Parent Company, the Surviving Company) following the
consummation of the Reorganization were members of the Incumbent Board at the
time of the Board’s approval of the execution of the initial agreement
providing for such Reorganization (any Reorganization which satisfies all of
the criteria specified in (A), (B) and (C) above shall be deemed to
be a “Non-Control
Transaction”);

 

(iv)          the stockholders of the
Company approve a plan of complete liquidation or dissolution; or

 

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(v)           the consummation of a
sale (or series of sales) of all or substantially all of the assets of the
Company and its Subsidiaries to an entity that is not an affiliate of the
Company.

 

Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because any
person acquires beneficial ownership of 35% or more of the Company Voting
Securities as a result of the acquisition of Company Voting Securities by the
Company which reduces the number of Company Voting Securities outstanding;
provided, that, if after such acquisition by the Company such person becomes
the beneficial owner of additional Company Voting Securities that increases the
percentage of outstanding Company Voting Securities beneficially owned by such
person, a Change in Control shall then occur.

 

(d)           “Change in
Control Termination Period” means the period of time beginning
with a Change in Control and ending at the end of the Window Period.

 

(e)           “Date of
Termination” means (i) the effective date on which the
Executive’s employment with the Company terminates, as specified in a prior written
notice by the Company or the Executive, as the case may be, to the other,
delivered pursuant to Section 14, or (ii) if the Executive’s
employment with the Company terminates by reason of death, the date of death of
the Executive.

 

(f)            “Disability”
means the Executive’s incapacity due to physical or mental illness, as
evidenced by a written statement from a licensed physician acceptable to the
Company or by the insurance company which insures the Company’s long-term
disability plan in which the Executive is eligible to participate which
confirms the Executive’s inability to perform due to such physical or mental
illness.

 

(g)           “Good
Reason” means, without the Executive’s express written consent,
the occurrence of any of the following events following a Change in Control:

 

(i)            (A) any change in
the authority, duties or responsibilities that is inconsistent in any material
and adverse respect with the Executive’s authority, position(s), duties,
responsibilities or status with the Company immediately prior to such Change in
Control (including any material and adverse diminution of such duties or
responsibilities) or (B) a material and adverse change in the Executive’s
reporting responsibilities, titles or offices with the Company as in effect
immediately prior to such Change in Control;

 

(ii)           a material reduction by
the Company in the Executive’s rate of annual base salary or annual target
bonus opportunity (including any material and adverse change in the formula for
such annual bonus target) as in effect immediately prior to such Change in
Control or as the same may be increased from time to time thereafter;

 

(iii)          any requirement of the
Company that the Executive be based anywhere more than fifty (50) miles from
the place of business where the Executive is located at the time of the Change
in Control;

 

(iv)          the failure of the
Company to continue in effect any employee benefit plan or compensation plan in
which the Executive is participating immediately prior to such Change in
Control and which is material to the Executive’s overall compensation, unless
the Executive is permitted to participate in other plans providing the
Executive with benefits or compensation which are not materially less, or the
taking of any action by the Company which would materially and adversely affect
the Executive’s participation in or materially and adversely reduce the
Executive’s benefits under any such plan; or

 

(v)           a material breach by
the Company of this Agreement or any other material agreement in effect between
the Executive and the Company.

 

3

 

Any event described in this Section 1(g) which occurs
prior to a Change in Control, but was at the request of a third party who had
indicated an intention or taken steps reasonably calculated to effect a Change
in Control and who effectuates a Change in Control, shall constitute Good
Reason following a Change in Control for purposes of this Agreement (treating
the date of such event as the date of the Change in Control) notwithstanding that
it occurred prior to the Change in Control. 
For purposes of this Agreement, any good faith determination of Good
Reason made by the Executive shall be conclusive; provided, however,
that an isolated, insubstantial and inadvertent action taken in good faith and
which is remedied by the Company promptly after receipt of notice thereof given
by the Executive shall not constitute Good Reason.  The Executive must provide notice of
termination of employment (in accordance with the provisions of Section 14(b))
within ninety (90) days of the Executive’s knowledge of an event constituting
Good Reason or such event shall not constitute Good Reason under this
Agreement.  The Company shall have thirty
(30) days following its receipt of a notice of termination of employment from
the Executive to remedy the condition the Executive claimed to provide a basis
for such termination in the notice of termination.

 

(h)           “Nonqualifying
Termination” means a termination of the Executive’s employment (i) by
the Company for Cause, (ii) by the Executive for any reason other than (x) for
Good Reason during the Change in Control Termination Period or (y) for any
reason during the Window Period, (iii) as a result of the Executive’s
death, or (iv) by the Company due to the Executive’s absence from the
Executive’s duties with the Company on a full-time basis for at least one
hundred thirty (130) business days during any consecutive twelve month period
as a result of the Executive’s Disability.

 

(i)            “Subsidiary”
means any corporation
or other entity in which the Company has a direct or indirect ownership
interest of 50% or more of the total combined voting power of the then
outstanding securities or interests of such corporation or other entity
entitled to vote generally in the election of directors or in which the Company
has the right to receive 50% or more of the distribution of profits or 50% of
the assets on liquidation or dissolution.

 

(j)            “Window
Period” means the thirty (30) day period immediately following
the six (6) month anniversary of a Change in Control.

 

2.             Obligations of the Executive.  The
Executive agrees that if a Change in Control shall occur, the Executive shall
not voluntarily leave the employ of the Company without Good Reason until
ninety (90) days following such Change in Control.

 

3.             Severance Payments. 
Except as otherwise provided in Section 4 and subject to Section 6
and Section 19, if the Executive’s employment with the Company is
terminated other than by reason of a Nonqualifying Termination, then the
Company shall pay or provide the Executive (or the Executive’s beneficiary or
estate) with the following payments or benefits:

 

(a)           a lump-sum cash amount
within thirty (30) days following the Date of Termination equal to the sum of: (i) the
Executive’s base salary through the Date of Termination, and any accrued
vacation, in each case to the extent not theretofore paid; (ii) any unpaid
bonus accrued with respect to the fiscal year ending on or preceding the Date
of Termination; and (iii) subject to presentment of appropriate
documentation, any unreimbursed expenses incurred through the Date of
Termination in accordance with Company policy (collectively, the “Accrued Amounts”);

 

(b)           a lump-sum cash amount
within the calendar year next following the calendar year during which the Date
of Termination occurs equal to the product of (i) the annual bonus the
Executive would have been paid based on the achievement of actual performance
goals and (ii) a fraction, the numerator of which is the number of days in
the fiscal year in which the Date of Termination occurs through the Date of
Termination and the denominator of which is three hundred sixty-five (365) (the
“Pro-Rata Bonus”);

 

4

 

(c)           a lump-sum cash amount
within thirty (30) days following the Date of Termination equal to one times
the sum of (A) the Executive’s annual base salary and (B) the
greatest of (1) the Executive’s target bonus for the fiscal year in which
the Executive’s Date of Termination occurs and (2) the average of the
actual bonuses earned by the Executive in respect of the two (2) preceding
fiscal years of the Company immediately preceding the fiscal year in which the
Date of Termination occurs;

 

(d)           subject to (A) the
Executive’s timely election of continuation coverage under the Consolidated
Budget Omnibus Reconciliation Act of 1985, as amended (“COBRA”),
(B) the Executive’s continued co-payment of the employee portion of any
contribution or premium at the same level and cost to the Executive as if the
Executive were an employee of the Company (excluding, for purposes of
calculating cost, an employee’s ability to pay premiums with pre-tax dollars)
and (C) the Executive’s continued eligibility for COBRA continuation
coverage, the Company will pay for a period of up to twelve (12) months
following the Date of Termination the portion of the Executive’s COBRA premium
equivalent to what the Company would have paid if the Executive were an
employee of the Company.  Notwithstanding
the foregoing, in the event the Executive fails to pay any required
contribution or premium or becomes employed with another employer and becomes
eligible to receive substantially similar or improved medical, dental or vision
benefits from such employer (whether or not the Executive accepts such
benefits), the Company’s obligations under this Section 3(d) shall
immediately cease, except that the Company’s obligation to continue to make
available continuation coverage under COBRA at the full COBRA rates shall be
determined in accordance with COBRA.  The
Executive will notify the Company of the Executive’s eligibility for medical,
dental or vision benefits from a subsequent employer within thirty (30) days of
such eligibility; and

 

(e)           with respect to
outstanding equity awards held by the Executive as of the Date of Termination,
all stock options and stock appreciation rights that would become vested and
exercisable if the Executive had continued to be employed with the Company
during the twelve (12) month period commencing on the Date of Termination shall
vest and become exercisable and the restrictions on all restricted stock
awards, restricted stock units and other equity or incentive awards that would
have lapsed if the Executive had continued to be employed with the Company
during the twelve (12) month period commencing on the Date of Termination shall
lapse and such awards shall become immediately payable; and

 

(f)            all other payments,
benefits or fringe benefits to which the Executive shall be entitled under the
terms of any applicable compensation arrangement or benefit, equity or fringe
benefit plan or program or grant (the “Other Benefits”).

 

4.             Change in Control Severance
Payments.  If a Change in Control occurs and the
Executive’s employment with the Company is terminated (x) other than by
reason of a Nonqualifying Termination (1) during the Change in Control
Termination Period or (2) prior to the Change in Control Termination
Period and the Executive reasonably demonstrates that such termination was at
the request of a third party who had indicated an intention or taken steps
reasonably calculated to effect such Change in Control and who effectuates such
Change in Control (or such termination was otherwise in anticipation of such
Change in Control) or (y) by the Executive for any reason during the
Window Period, then, subject to Section 6 and Section 19
the Company shall pay or provide the Executive (or the Executive’s beneficiary
or estate) with the following payments or benefits:

 

(a)           a lump-sum cash amount
within thirty (30) days following the Date of Termination (or, if later, the
date of the Change in Control) equal to the sum of the Accrued Amounts;

 

(b)           a lump-sum cash amount
within the calendar year next following the calendar year during which the Date
of Termination occurs equal to the Pro-Rata Bonus;

 

(c)           a lump-sum cash amount
within thirty (30) days following the Date of Termination (or, if later, the
date of the Change in Control) equal to one and one-half times the sum of: (A) the
Executive’s 

 

5

 

highest rate of annual base salary during the 12-month
period prior to the Date of Termination; and (B) the greatest of (1) the
Executive’s target bonus for the fiscal year in which the Executive’s Date of
Termination occurs, (2) the Executive’s target bonus for the fiscal year
in which the Change in Control occurs and (3) the average of the actual
bonuses earned by the Executive in respect of the two (2) preceding fiscal
years of the Company immediately preceding the fiscal year in which the Change
in Control occurs;

 

(d)           COBRA continuation
coverage pursuant to Section 3(d), except that the Company will pay
the portion of the Executive’s COBRA premium equivalent to what the Company
would have paid if the Executive were an employee of the Company for a period
of up to eighteen (18) months following the Date of Termination instead of for
up to twelve (12) months;

 

(e)           with respect to
outstanding equity awards held by the Executive as of the Date of Termination,
all stock options and stock appreciation rights shall vest and become
exercisable and the restrictions on all restricted stock awards, restricted
stock units and other equity or incentive awards shall lapse and such awards
shall become immediately payable; and

 

(f)            the Other Benefits.

 

Notwithstanding anything
herein to the contrary, if the Executive becomes entitled to, and receives, payments and benefits pursuant to Section 3 and thereafter becomes entitled to payments
and benefits pursuant to this Section 4, payments and
benefits due under this Section 4 shall be reduced by any amounts
received pursuant to Section 3.

 

5.             Payments Upon Non-Qualifying
Termination of Employment.  If the Executive’s employment with the
Company shall terminate by reason of a Nonqualifying Termination, then the
Company shall pay to the Executive (or the Executive’s beneficiary or estate)
within thirty (30) days following the Date of Termination, a lump-sum cash
amount equal to the Accrued Amounts (other than the amount described in Section 3(a)(ii))
and provide the Other Benefits.

 

6.             Release Required; Resignations.  Any
amounts payable pursuant to this Agreement (other than Accrued Amounts and Other Benefits) shall only be payable if the Executive
executes and delivers to the Company (and does not revoke) a general release of
claims in a form substantially in the form of Exhibit A attached
hereto.  In addition, upon any
termination of the Executive’s employment with the Company, the Executive shall
promptly resign from any position as an officer, director or fiduciary of any
Company-related entity.

 

7.             Certain Additional Payments
by the Company.  (a)  Anything in this Agreement to the
contrary notwithstanding, in the event it shall be determined that any payment,
award, benefit or distribution (or any acceleration of any payment, award,
benefit or distribution) by the Company (or any of its affiliated entities) or
any entity which effectuates a Change in Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 7) (a “Payment”) would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986,
as amended (the “Code”), or
any interest or penalties are incurred by the Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay the Executive an
additional payment (a “Gross-Up Payment”)
in an amount such that, after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes) including,
without limitation, any income and employment taxes (and any interest and
penalties imposed with respect thereto) and any Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. 
For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to (i) pay federal income taxes at the highest
marginal rates of federal income taxation for the calendar year in which the
Gross-Up Payment is to be made, and (ii) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in
which the Gross-Up 

 

6

 

Payment is to be made, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state
and local taxes.

 

(b)           Subject to the
provisions of Section 7(a), all determinations required to be made
under this Section 7, including whether and when a Gross-Up Payment
is required and the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determinations, shall be made by the public
accounting firm that is retained by the Company as of the date immediately
prior to the Change in Control (the “Accounting Firm”)
which shall provide detailed supporting calculations both to the Company and
the Executive within fifteen (15) business days of the receipt of notice from
the Company or the Executive that there has been a Payment, or such earlier
time as is requested by the Company (collectively, the “Determination”).  Notwithstanding the foregoing, in the event (i) the
Board shall determine prior to the Change in Control that the Accounting Firm
is precluded from performing such services under applicable auditor
independence rules, (ii) the Audit Committee of the Board determines that
it does not want the Accounting Firm to perform such services because of
auditor independence concerns or (iii) the Accounting Firm is serving as
accountant or auditor for the individual, entity or group effecting the Change
in Control, the Board shall appoint another nationally recognized public
accounting firm to make the determinations required hereunder (which accounting
firm shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of the Accounting Firm
shall be borne solely by the Company and the Company shall enter into any
agreement requested by the Accounting Firm in connection with the performance
of the services hereunder.  The Gross-Up
Payment under this Section 7 with respect to any Payments shall be
made no later than thirty (30) days following such Payment and, in no event,
later than the calendar year next following the calendar year in which the
Executive remits the taxes to which such Gross-Up Payment relates.  If the Accounting Firm determines that no
Excise Tax is payable by the Executive, it shall furnish the Executive with a
written opinion to such effect, and to the effect that failure to report the
Excise Tax, if any, on the Executive’s applicable federal income tax return
will not result in the imposition of a negligence or similar penalty.  The Determination by the Accounting Firm
shall be binding upon the Company and the Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the Determination,
it is possible that Gross-Up Payments which will not have been made by the
Company should have been made (“Underpayment”)
or Gross-Up Payments are made by the Company which should not have been made (“Overpayment”), consistent with the
calculations required to be made hereunder. 
In the event that the Executive thereafter is required to make payment
of any additional Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code)
shall be promptly paid by the Company to or for the benefit of the
Executive.  In the event the amount of
the Gross-Up Payment exceeds the amount necessary to reimburse the Executive
for the Executive’s Excise Tax, the Accounting Firm shall determine the amount
of the Overpayment that has been made and any such Overpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code)
shall be promptly paid by the Executive to or for the benefit of the
Company.  The Executive shall cooperate,
to the extent the Executive’s expenses are reimbursed by the Company, with any
reasonable requests by the Company in connection with any contests or disputes
with the Internal Revenue Service in connection with the Excise Tax.

 

(c)           Nothing in this Section 7
is intended to violate the Sarbanes-Oxley Act and to the extent that any
advance hereunder would do so, such obligation shall be modified so as to make
the advance a nonrefundable payment to the Executive.

 

8.             Restrictive Covenants.

 

(a)           Non-Compete.  While employed by the Company and during the
twelve (12) month period after the Date of Termination (the “Restricted Period”), the Executive
shall not directly or indirectly (without the prior written consent of the
Company):

 

(i)            hold a 5% or greater
equity (including stock options whether or not exercisable), voting or profit
participation interest in a Competitive Enterprise, or

 

7

 

(ii)           associate (including as
an officer, employee, partner, consultant, agent or advisor) with a Competitive
Enterprise and in connection with the Executive’s association engage, or
directly or indirectly manage or supervise personnel engaged, in any activity:

 

(A)          that is substantially
related to any activity that the Executive was engaged in with the Company or
any of its affiliated entities during the twelve (12) months prior to the Date
of Termination (excluding as a director),

 

(B)           that is substantially
related to any activity for which the Executive had direct or indirect
managerial or supervisory responsibility with the Company or any of its
affiliated entities during the twelve (12) months prior to the Date of
Termination, or

 

(C)           that calls for the
application of specialized knowledge or skills substantially related to those
used by the Executive in the Executive’s activities with the Company or any of
its affiliated entities during the twelve (12) months prior to the Date of
Termination.

 

For purposes of this
Agreement, “Competitive Enterprise” means
any business enterprise anywhere worldwide that either (A) engages in the
manufacture and sale of blast- and ballistic- protected wheeled vehicles for
the US or foreign militaries or (B) holds a 5% or greater equity, voting
or profit participation interest in any enterprise that engages in such a
competitive activity.

 

(b)           Non-Solicit.  During the Restricted Period, the Executive
shall not, in any manner, directly or indirectly (without the prior written
consent of the Company):  (i) Solicit
any Client to transact business with a Competitive Enterprise or to reduce or
refrain from doing any business with the Company or any of its affiliated
entities, (ii) transact business with any Client that would cause the
Executive to be engaged in a Competitive Enterprise, (iii) interfere with
or damage any relationship between the Company or any of its affiliated
entities and a Client or (iv) Solicit anyone who is then an employee of
the Company or any of its affiliated entities to resign from the Company or
affiliated entity or to apply for or accept employment with any other business
or enterprise.

 

(c)           For purposes of this
Agreement, a “Client” means any client or
prospective client of the Company or any of its affiliated entities to whom the
Executive provided services, or for whom the Executive transacted business, or
whose identity became known to the Executive in connection with the Executive’s
relationship with or employment with the Company, and “Solicit”
means any direct or indirect communication of any kind, regardless of who
initiates it, that in any way invites, advises, encourages or requests any
person to take or refrain from taking any action.

 

(d)           Confidential
Information.  The
Executive hereby acknowledges that, as an employee of the Company, the
Executive will have access to confidential information of a special and unique
nature and value relating to the Company and its strategic plan and financial
operations.  The Executive further
recognizes and acknowledges that all such confidential information is the
exclusive property of the Company, is material and confidential, and is
critical to the successful conduct of the business of the Company.  Accordingly, the Executive hereby covenants
and agrees not to, at any time, directly or indirectly, divulge, reveal or
communicate any such confidential information to any person, firm, corporation
or entity whatsoever, or use any such confidential information for the
Executive’s own benefit or for the benefit of others.  Notwithstanding the foregoing, the Executive
shall be authorized to disclose confidential information (i) as may be
required by law or legal process after providing the Company with prior written
notice and an opportunity to respond to such disclosure (unless such notice is
prohibited by law), (ii) in any criminal proceeding against the Executive
after providing the Company with prior written notice and an opportunity to
seek protection for such confidential information, and (iii) with the
prior written consent of the Company.

 

8

 

(e)                                  Return of Company Property.  On the Date of Termination (or at any time
prior thereto at the Company’s request), the Executive shall return all
property (both tangible and intellectual) belonging to the Company or any of
its affiliated entities (including, but not limited to, files, monthly
management financial booklets, projections, forecasts, balance sheets, income
statements, audited financial statements, total cost development budgets,
actual or prospective purchaser or customer lists, written proposals and
studies, plans, drawings, specifications, reports to creditors, books,
accounts, reports to directors, minutes, resolutions, certificates, bank
account numbers, passwords, rolodexes, identification cards, credit cards,
computers, fax machines, cellular or other telephones, Blackberries, beepers,
PDA’s, keys, card access keys to any building of the Company or any of its
affiliated entities, deeds, contracts, office equipment and supplies, records,
computer disks and any other documents or things received or acquired in
connection with the Executive’s employment with the Company) without retaining
any copies or extracts thereof.

 

(f)                                    Nondisparagement.  The Executive agrees not to make negative
comments or otherwise disparage the Company or any of its affiliated entities
or its or their officers, directors, employees, shareholders, agents or
products, in any manner likely to be harmful to them or their business,
business reputation or personal reputation.

 

(g)                                 Cooperation.  Upon the receipt of reasonable notice from
the Company (including outside counsel), the Executive agrees that while
employed by the Company and thereafter, the Executive will respond and provide
information with regard to matters in which the Executive has knowledge as a
result of the Executive’s employment with the Company, and will provide
reasonable assistance to the Company, its affiliated entities and their
respective representatives in defense of any claims that may be made against
the Company or any of its affiliated entities, and will assist the Company and
its affiliated entities in the prosecution of any claims that may be made by
the Company or any of its affiliated entities, to the extent that such claims
may relate to the period of the Executive’s employment with the Company.  The Executive agrees to promptly inform the
Company if the Executive becomes aware of any lawsuits involving such claims
that may be filed or threatened against the Company or any of its affiliated
entities.  The Executive also agrees to
promptly inform the Company (to the extent that the Executive is legally
permitted to do so) if the Executive is asked to assist in any investigation of
the Company or any of its affiliated entities (or their actions), regardless of
whether a lawsuit or other proceeding has then been filed against the Company
or any of its affiliated entities with respect to such investigation, and shall
not do so unless legally required.

 

(h)                                 Survival.  The obligations contained in this Section 8
shall survive the termination of the Executive’s employment with the Company
and shall be fully enforceable thereafter.

 

(i)                                     Validity.  The terms and provisions of this Section 8
are intended to be separate and divisible provisions and if, for any reason,
any one or more of them is held to be invalid or unenforceable, neither the
validity nor the enforceability of any other provision of this Agreement shall
thereby be affected.  The parties hereto
acknowledge that the potential restrictions on the Executive’s future
employment imposed by this Section 8 are reasonable in both
duration and geographic scope and in all other respects.  If for any reason any court of competent
jurisdiction shall find any provisions of this Section 8
unreasonable in duration or geographic scope or otherwise, the Executive and
the Company agree that the restrictions and prohibitions contained herein shall
be effective to the fullest extent allowed under applicable law in such
jurisdiction.

 

(j)                                     Tolling.  In the event of any violation of the
provisions of this Section 8 on or after the Date of Termination,
the Executive acknowledges and agrees that the post-termination restrictions
contained in this Section 8 shall be extended by a period of time
equal to the period of such violation, it being the intention of the parties hereto
that the running of the applicable post-termination restriction period shall be
tolled during any period of such violation.

 

9

 

9.                                       Withholding Taxes.  The
Company may withhold from all payments due to the Executive (or the Executive’s
beneficiary or estate) hereunder all taxes which, by applicable federal, state,
local or other law or regulation, the Company is required to withhold
therefrom.

 

10.                                 Reimbursement of Expenses.

 

(a)                                  If
any contest or dispute shall arise under this Agreement involving the
termination of the Executive’s employment with the Company (including the
covenants contained in Section 8) or involving the failure or
refusal of the Company to perform fully in accordance with the terms hereof (a “Dispute”) and
the Executive prevails on the material issues in such Dispute, the Company shall, upon presentment of appropriate
documentation (which submission shall be made within forty-five (45) days after
the resolution of such Dispute),
promptly pay or reimburse the Executive, for all reasonable legal fees and
expenses (including costs of the arbitrators) incurred by the Executive in
connection with such Dispute.

 

(b)                                 Notwithstanding the provisions of Section 10(a),
the Company shall, on a quarterly basis, upon presentment of appropriate
documentation (which submission shall be made within forty-five (45) days after
the end of such quarter), reimburse the Executive for all legal fees and
expenses (including costs of the arbitrators), if any, incurred by the
Executive in connection with a Dispute arising on or after a Change in Control (or
otherwise related to a Change in
Control), except that the
Executive shall reimburse the Company (to the extent permitted under applicable
law) for the fees and expenses advanced (i) in the event the Executive’s
claims are determined to have been advanced by the Executive in bad faith or
were frivolous, or (ii) to the extent that such legal fees and expenses
are determined to be unreasonable.

 

11.                                 Termination of Agreement.  This
Agreement shall be effective on the Effective Date and shall terminate one year
after the date of any written notification from the Company to the Executive
terminating this Agreement; provided, however, that if a Change
in Control occurs while this Agreement is still operative, any written notification to the Executive terminating this Agreement (including any
written notification given prior to such Change in Control), shall not be effective prior to the end of
the Change in Control Termination Period; and provided, further,
that this Agreement shall continue in effect following any termination that is
not a Nonqualifying Termination which occurs prior to such termination with
respect to all rights and obligations accruing as a result of such termination.

 

12.                                 Scope of Agreement. 
Nothing in this Agreement shall be deemed to alter the “at-will” nature
of the Executive’s employment or entitle the Executive to continued employment
with the Company.

 

13.                                 Successors; Binding
Agreement.

 

(a)                                  This
Agreement shall not be terminated by any Reorganization.  In the event of any Reorganization, the
provisions of this Agreement shall be binding upon the surviving or resulting
corporation or the person or entity to which such assets are transferred.

 

(b)                                 The
Company agrees that concurrently with any Reorganization that does not
constitute a Non-Control Transaction, it will cause any successor or transferee
unconditionally to assume, by written instrument delivered to the Executive (or
the Executive’s beneficiary or estate), all of the obligations of the Company
hereunder.  Failure of the Company to
obtain such assumption prior to the effectiveness of any such Reorganization,
shall be a material breach of this Agreement and shall constitute Good Reason hereunder
and shall entitle the Executive to compensation and other benefits from the
Company in the same amount and on the same terms as the Executive would be
entitled hereunder if the Executive’s employment were terminated following a
Change in Control other than by reason of a Nonqualifying Termination.  For purposes of implementing the foregoing,
the date on which any such Reorganization becomes effective shall be deemed the
date Good Reason occurs, and shall be the Date of Termination, if requested by the
Executive.

 

10

 

(c)                                  This
Agreement is personal to the Executive and without the prior written consent of
the Company shall not be assignable by the Executive.  This Agreement shall inure to the benefit of,
and be enforceable by, the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.  If the Executive shall die
while any amounts would be payable to the Executive hereunder had the Executive
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to such person or persons
appointed in writing by the Executive to receive such amounts or, if no person
is so appointed, to the Executive’s estate.

 

14.                                 Notices.  (a)  For purposes of this Agreement, all notices and other
communications required or permitted hereunder (each, a “Notice”) shall be in writing and shall
be sent by either party by personal delivery, e-mail, fax (with a Notice
contemporaneously given by another method specified in this Section 14), recognized overnight
commercial courier or United
States mail (certified and return receipt requested, postage prepaid) and shall
be deemed to have been duly given when delivered or five (5) days after
deposit in the United States mail, addressed as follows:

 

	
  If to the Company:

  	
   

  	
  Force
  Protection, Inc.

  
	
   

  	
   

  	
  9801 Highway 78,
  Building No. 1

  
	
   

  	
   

  	
  Ladson, South Carolina
  29456-3802

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
  Facsimile: (843)
  553.1311

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
   

  	
  To the Executive’s last
  address (or to the last

  
	
   

  	
   

  	
  facsimile number) shown
  on the records

  
	
   

  	
   

  	
  of the Company

  

 

or to such other address
as either party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt (or refusal of receipt).

 

(b)                                 A
written notice of the Executive’s Date of Termination by the Company or the
Executive, as the case may be, to the other, shall (i) indicate the
specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and (iii) specify the termination date (which
date shall be not less than thirty (30) nor more than sixty (60) days after the
giving of such notice).  The failure by
the Executive or the Company to set forth in such notice any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive’s or the Company’s rights hereunder.

 

15.                                 Full Settlement; No
Mitigation.  The Company’s obligation to make any payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall be in lieu of and in full settlement of all other severance or
similar payments to the Executive under any other severance or employment
agreement between the Executive and the Company, any severance plan of the
Company and any statutory entitlement (including notice of termination,
termination pay and/or severance pay). 
The Company’s obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action
which the Company may have against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and, except as provided in Section 3(d), such amounts shall not be reduced whether
or not the Executive obtains other employment.

 

16.                                 Employment with Subsidiaries. 
Employment with the Company for purposes of this Agreement shall include
employment with any Subsidiary or affiliate entity.

 

11

 

17.                                 GOVERNING LAW; VALIDITY.  THE
INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF SOUTH CAROLINA WITHOUT REGARD TO THE PRINCIPLE OF CONFLICTS OF
LAWS.  THE INVALIDITY OR UNENFORCEABILITY
OF ANY PROVISION OF THIS AGREEMENT SHALL NOT AFFECT THE VALIDITY OR
ENFORCEABILITY OF ANY OTHER PROVISION OF THIS AGREEMENT, WHICH OTHER PROVISIONS
SHALL REMAIN IN FULL FORCE AND EFFECT.

 

18.                                 Disputes.

 

(a)                                  Mandatory Arbitration.  Subject to the provisions of this Section 18,
any Dispute will be finally settled by arbitration in Charleston, South
Carolina administered by the American Arbitration Association (the “AAA”) under its Commercial
Arbitration Rules then in effect. 
However, the AAA’s Commercial Arbitration Rules will be modified in
the following ways:  (i) the
decision must not be a compromise but must be the adoption of the submission by
one of the parties; (ii) the dispute shall be decided by a panel of three (3) arbitrators,
one appointed by each of the parties and the third appointed by the other two (2) arbitrators
or, if the arbitrators do not agree, appointed by the AAA; (iii) each
arbitrator will agree to treat as confidential evidence and other information
presented to them; (iv) there will be no authority to award punitive
damages (and the Executive and the Company agree not to request any such
award); (v) the optional Rules for Emergency Measures of Protections
will apply; (vi) there will be no authority to amend or modify the terms
of this Agreement except as provided in Section 21 (and the
Executive and the Company agree not to request any such amendment or
modification); and (vii) a decision must be rendered within ten (10) business
days of the parties’ closing statements or submission of post-hearing briefs.

 

(b)                                 Injunctions and Enforcement of Arbitration Awards.  The Executive or the Company may bring an
action or special proceeding in a state or federal court of competent
jurisdiction sitting in Charleston, South Carolina to enforce any arbitration
award under Section 18(a). 
Also, the Company may bring such an action or proceeding, in addition to
its rights under Section 18(a) and whether or not an arbitration
proceeding has been or is ever initiated, to temporarily, preliminarily or
permanently enforce any part of Section 8.  The Executive agrees that (i) violating
any part of Section 8 would cause damage to the Company that cannot
be measured or repaired and that the Company’s remedies at law for a breach or
threatened breach of any of the provisions of Section 8 would be
inadequate, (ii) the Company therefore is entitled to an injunction,
restraining order or other equitable relief restraining any actual or
threatened violation of Section 8 in addition to any remedies at
law, (iii) no bond will need to be posted for the Company to receive such
an injunction, order or other relief and (iv) no proof will be required
that monetary damages for violations of Section 8 would be
difficult to calculate and that remedies at law would be inadequate.  In addition, in the event of a violation by
the Executive of Section 8, any severance payments or benefits
being paid to the Executive pursuant to this Agreement or otherwise shall
immediately cease and any severance previously paid to the Executive shall be
immediately repaid to the Company.

 

(c)                                  Jurisdiction and Choice of Forum.  The Executive and the Company irrevocably
submit to the exclusive jurisdiction of any state or federal court located in
Charleston, South Carolina over any Dispute that is not otherwise arbitrated or
resolved according to Section 18(a).  This includes any action or proceeding to
compel arbitration or to enforce an arbitration award.  Both the Executive and the Company (i) acknowledge
that the forum stated in this Section 18(c) has a reasonable
relation to this Agreement and to the relationship between the Executive and
the Company and that the submission to the forum will apply even if the forum
chooses to apply non-forum law, (ii) waive, to the extent permitted by
law, any objection to personal jurisdiction or to the laying of venue of any
action or proceeding covered by this Section 18(c) in the
forum stated in this Section 18(c), (iii) agree not to
commence any such action or proceeding in any forum other than the forum stated
in this Section 18(c) and (iv) agree that, to the extent
permitted by law, a final and non-appealable judgment in any such action or
proceeding in any such court will be conclusive and binding on the Executive
and the Company.  However, nothing in
this 

 

12

 

Agreement precludes the
Executive or the Company from bringing any action or proceeding in any court
for the purpose of enforcing the provisions of Section 18(a) and
this Section 18(c).

 

19.                                 Section 409A of the
Code.  The
parties agree that this Agreement is intended to comply with the requirements
of Section 409A of the Code and the regulations and other guidance
promulgated thereunder (“Section 409A”)
or an exemption from Section 409A. 
Notwithstanding anything in this Agreement to the contrary, if the
Executive is a “specified employee” (as described in Section 409A) on the
Date of Termination, any amount to which the Executive would otherwise be
entitled during the first six months following a separation of service that
constitutes nonqualified deferred compensation within the meaning of Section 409A
and that is therefore not exempt from Section 409A as involuntary
separation pay or a short-term deferral will be accumulated and paid in a
single lump sum cash payment (without interest) on the earlier of (i) the
first business day of the seventh month following the date of such “separation
from service” (as defined under Section 409A) or (ii) the date of the
Executive’s death, and any remaining payments and benefits due under this
Agreement shall be paid or provided in accordance with the normal payment dates
specified for them herein.  For purposes
of this Agreement, each amount to be paid or benefit to be provided hereunder
shall be construed as a separate identified payment for purposes of Section 409A.

 

20.                                 Counterparts.  This
Agreement may be executed (including by facsimile
transmission confirmed promptly
thereafter by actual delivery of executed counterparts) in counterparts, each of which shall be
deemed to be an original and all of which together shall constitute one and the
same instrument.

 

21.                                 Miscellaneous.  No
provision of this Agreement may be modified or waived unless such modification
or waiver is agreed to in writing and signed by the Executive and by a duly
authorized officer of the Company.  No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or any prior or subsequent
time.  Failure by the Executive or the
Company to insist upon strict compliance with any provision of this Agreement
or to assert any right the Executive or the Company may have hereunder,
including, without limitation, the right of the Executive to terminate
employment for Good Reason or the Company to terminate employment for Cause,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement. 
This Agreement together with all exhibits hereto sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  Except as
otherwise specifically provided for herein, the rights of, and benefits payable
to, the Executive or the Executive’s estate or beneficiaries pursuant to this
Agreement are in addition to any rights of, or benefits payable to, the
Executive or the Executive’s estate or beneficiaries under any other employee
benefit plan or compensation program of the Company.

 

22.                                 Section Headings.  The
section headings used in this Agreement are included solely for convenience and
shall not affect, or be used in connection with, the interpretation of this
Agreement.

 

[Signatures on next page]

 

13

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by a duly authorized
officer of the Company and the Executive has executed this Agreement on the
Effective Date.

 

 

	
  FORCE
  PROTECTION, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
             /s/
  Michael Moody

  	
   

  
	
   

  	
  Name: Michael Moody

  	
   

  
	
   

  	
  Title: President and
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  “EXECUTIVE”

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
              /s/
  Mark Edwards

  	
   

  
	
  Name: Mark Edwards

  	
   

  

 

14

 

Exhibit A

 

Form of General Release

 

This General Release,
dated as of the [·]
day of [·]
20[·], is delivered
by [·] (the “Executive”) to and for the benefit
of the Released Parties (as defined below). 
The Executive acknowledges that this General Release is being executed
in accordance with Section 6 of the Severance Agreement dated [·], 200[·] (the “Severance Agreement”).

 

1.                                       General
Release.  (a)  The Executive, for himself and for
the Executive’s heirs, dependents, assigns, agents, executors, administrators,
trustees and legal representatives (collectively, the “Releasors”)
hereby forever releases, waives and discharges the Released Parties (as defined
below) from each and every claim, demand, cause of action, fee, liability or right of any sort (based upon legal
or equitable theory, whether contractual, common-law, statutory, federal,
state, local or otherwise), known or unknown, which Releasors ever had, now
have, or hereafter may have against the Released Parties by reason of any
actual or alleged act, omission, transaction, practice, policy, procedure,
conduct, occurrence, or other matter from the beginning of the world up to and
including the Effective Date (as defined below), including, without limitation,
those in connection with, or in any way related to or arising out of, the
Executive’s employment or termination of employment or any other agreement,
understanding, relationship, arrangement, act, omission or occurrence, with the
Released Parties.

 

(b)                                 Without
limiting the generality of the previous paragraph, this General Release is intended to and shall release the Released Parties from any and all claims,
whether known or unknown, which Releasors ever had, now have, or may hereafter
have against the Released Parties including, but not limited to:  (1) any claim of discrimination or retaliation
under the Age Discrimination in Employment Act, Title VII of the Civil Rights
Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the
Employee Retirement Income Security Act of 1974, as amended (excluding claims
for accrued, vested benefits under any employee benefit or pension plan of the
Released Parties subject to the terms and conditions of such plan and
applicable law) and the Family and Medical Leave Act; (2) any claim under
the South Carolina Human Affairs Law and the South Carolina Wage Payment
Statute; (3) any other claim (whether based on federal, state or local law
or ordinance, statutory or decisional) relating to or arising out of the
Executive’s employment, the terms and conditions of such employment, the
termination of such employment and/or any of the events relating directly or
indirectly to or surrounding the termination of such employment, including, but
not limited to, breach of contract (express or implied), tort, wrongful
discharge, detrimental reliance, defamation, emotional distress or compensatory
or punitive damages; and (4) any claim for attorney’s fees, costs,
disbursements and the like.

 

(c)                                  The
foregoing release does not in any way
affect: (1) the Executive’s rights of indemnification to which the
Executive was entitled immediately prior to the Date of Termination (as
defined in the Severance Agreement); and (2) the right of the
Executive to take whatever steps may be necessary to enforce the terms of the Severance Agreement.

 

(d)                                 For
purposes of this General Release,
the “Released Parties” means Force
Protection, Inc. (the “Company”),
all current and former parents, subsidiaries, related companies, partnerships,
joint ventures and employee benefit programs (and the trustees, administrators,
fiduciaries and insurers of such programs), and, with respect to each of them,
their predecessors and successors, and, with respect to each such entity, all
of its past, present, and future employees, officers, directors, members,
stockholders, owners, representatives, assigns, attorneys, agents, insurers,
and any other person acting by, through, under or in concert with any of the
persons or entities listed in this paragraph, and their successors (whether
acting as agents for such entities or in their individual capacities).

 

2.                                       No Existing Suit.  The Executive represents and warrants
that, as of the Effective Date of this General
Release, the Executive has not filed or commenced any suit, claim,
charge, complaint, action, arbitration, or legal proceeding of any kind against
the Company or its subsidiaries or affiliates. 

 

 

The Executive
acknowledges that this General
Release does not prohibit the Executive from filing a charge of
discrimination with the Equal Employment Opportunity Commission.

 

3.                                       Knowing and
Voluntary Waiver.  By signing this General Release, the Executive expressly
acknowledges and agrees that: (a) the Executive has carefully read it and
fully understands what it means; (b) the Executive has discussed this General Release with an attorney of the
Executive’s choosing before signing it; (c) the Executive has been given
at least twenty-one (21) calendar days to consider this General Release; (d) the Executive has agreed to this General Release knowingly and
voluntarily and was not subjected to any undue influence or duress; (e) the
consideration provided the Executive under Severance Agreement is sufficient to support the releases provided by the
Executive under this General Release;
(f) the Executive may revoke the Executive’s execution of this General Release
within seven (7) days after the Executive signs it by sending written
notice of revocation as set forth below; and (g) on the eighth day after
the Executive executes this General
Release (the “Effective Date”), this General Release becomes effective and
enforceable, provided that the Executive does not revoke this Agreement during
the revocation period.  Any revocation of
the Executive’s execution of this General Release must be submitted, in
writing, to Force Protection, Inc. 9801 Highway 78, Building No. 1,
Ladson, South Carolina 29456-3802, to the attention of the Co-General Counsel,
stating “I hereby revoke my execution of
the General Release.”  The revocation must be personally delivered
to the General Counsel or mailed to the General Counsel and postmarked within
seven (7) days of the Executive’s execution of this General Release.  If the last day of the revocation period is a
Saturday, Sunday or legal holiday, then the revocation period will be extended
to the following day which is not a Saturday, Sunday or legal holiday.  The Executive agrees that if the Executive
does not execute this General Release
or, in the event of revocation, the Executive will not be entitled to receive
any of the payments or benefits under the
Severance Agreement (other than the Accrued Amounts and the Other
Benefits).  The Executive must
execute this General Release on or before [·],
20[·].

 

This General Release is
final and binding and may not be changed or modified.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [                                       ]

  

 

A-2EXHIBIT
10.3

 

SEVERANCE
AGREEMENT

 

This SEVERANCE AGREEMENT (this
“Agreement”) is entered into as of
the 4th day of April, 2008 (the “Effective Date”),
by and between Force Protection, Inc., a Nevada corporation (the “Company”), and Daniel Busher (“Executive”).

 

W I T N E
S S E T H:

 

WHEREAS, the
Executive currently serves as a key employee of the Company and the Executive’s
services and knowledge are valuable to the Company in connection with the
management of one or more of the Company’s principal operating facilities,
divisions, departments or Subsidiaries (as defined in Section 1);

 

WHEREAS, the
Board (as defined in Section 1) has determined that it is in the
best interests of the Company and its stockholders to improve upon the existing
severance protections for its key employees and to provide an additional
inducement to secure the Executive’s continued services and, in the event of
any threat or occurrence of, or negotiation or other action that could lead to,
or create the possibility of, a Change in Control (as defined in Section 1)
of the Company, to ensure the Executive’s continued and undivided dedication to
the Executive’s duties when faced with the possibility of  Change in Control; and

 

WHEREAS, the
Board has authorized the Company to enter into this Agreement.

 

NOW, THEREFORE,
for and in consideration of the promises and the mutual covenants and
agreements herein contained, the Company and the Executive hereby agree as
follows:

 

1.             Definitions.  As
used in this Agreement, the following terms shall have the respective meanings
set forth below:

 

(a)           “Board”
means the Board of Directors of the Company.

 

(b)           “Cause”
means (i) the Executive’s material breach of the Executive’s duties and
responsibilities (other than as a result of the Executive’s Disability) which
is (x) demonstrably willful and deliberate on the Executive’s part, (y) committed
in bad faith or without reasonable belief that such breach is in the best
interests of the Company and (z) not remedied within ten (10) days
after receipt of written notice from the Company specifying such breach; (ii) the
Executive’s indictment for, conviction of, or plea of nolo
contendere to, a felony; or (iii) the Executive’s gross
negligence or any act of theft, fraud, misappropriation, malfeasance or dishonesty
by the Executive in connection with the performance of the Executive’s duties
to the Company which is demonstrably willful and deliberate on the Executive’s
part.

 

Cause shall not exist
unless and until the Company has delivered to the Executive a copy of a
resolution duly adopted by a majority of the entire Board at any duly called
meeting of the Board (after reasonable notice to the Executive and an
opportunity for the Executive, together with counsel, to be heard before the
Board), finding that in the good faith opinion of the Board an event set forth
in clauses (i), (ii) or (iii) has occurred and specifying the
particulars thereof in detail.

 

The Company must notify
the Executive of any event constituting Cause (in accordance with the
provisions of Section 14(b)) within ninety (90) days following the
Board’s (excluding, if applicable, the Executive) knowledge of its existence or
such event shall not constitute Cause under this Agreement.

 

(c)           “Change in
Control” means the occurrence of any one of the following
events:

 

 

(i)            any “person” (as such
term is defined in Section 3(a)(9) of the Securities Exchange Act of
1934 (the “Exchange
Act”) and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power
of the Company’s then outstanding securities eligible to vote for the election
of the Board (the “Company
Voting Securities”); provided, however,
that the event described in this paragraph (i) shall not be deemed to be a
Change in Control by virtue of any of the following acquisitions:  (A) by the Company or any Subsidiary; (B) by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary; (C) by any underwriter temporarily holding
securities pursuant to an offering of such securities; (D) pursuant to a
Non-Control Transaction (as defined in paragraph (iii) below); or (E) a
transaction (other than one described in paragraph (iii) below) in which
Company Voting Securities are acquired from the Company, if a majority of the
Incumbent Board (as defined in paragraph (ii) below) approves a resolution
providing expressly that the acquisition pursuant to this clause (E) does
not constitute a Change in Control under this paragraph (i);

 

(ii)           individuals who, on February 29,
2008, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority thereof, provided that
any person becoming a director subsequent to February 29, 2008, whose
election or nomination for election was approved by a vote of at least
two-thirds of the directors comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for director, without objection to such
nomination) shall be considered a member of the Incumbent Board; provided,
however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with
respect to directors or any other actual or threatened solicitation of proxies
or consents by or on behalf of any person other than the Board shall be deemed to
be a member of the Incumbent Board;

 

(iii)          the consummation of a
merger, consolidation, share exchange or similar form of corporate transaction
involving the Company or any of its Subsidiaries that requires the approval of
the Company’s stockholders (whether for such transaction or the issuance of
securities in the transaction or otherwise) (a “Reorganization”),
unless immediately following such Reorganization:  (A) more than 60% of the total voting
power of (x) the corporation resulting from such Reorganization (the “Surviving Company”), or (y) if
applicable, the ultimate parent corporation that directly or indirectly has
beneficial ownership of 95% of the voting securities eligible to elect
directors of the Surviving Company (the “Parent Company”),
is represented by Company Voting Securities that were outstanding immediately
prior to such Reorganization (or, if applicable, is represented by shares into
which such Company Voting Securities were converted pursuant to such
Reorganization), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting
Securities among holders thereof immediately prior to the Reorganization; (B) no
person (other than any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Company or the Parent Company) is or becomes the
beneficial owner, directly or indirectly, of 35% or more of the total voting
power of the outstanding voting securities eligible to elect directors of the
Parent Company (or, if there is no Parent Company, the Surviving Company); and (C) at
least a majority of the members of the board of directors of the Parent Company
(or, if there is no Parent Company, the Surviving Company) following the
consummation of the Reorganization were members of the Incumbent Board at the
time of the Board’s approval of the execution of the initial agreement
providing for such Reorganization (any Reorganization which satisfies all of
the criteria specified in (A), (B) and (C) above shall be deemed to
be a “Non-Control
Transaction”);

 

(iv)          the stockholders of the
Company approve a plan of complete liquidation or dissolution; or

 

2

 

(v)           the consummation of a
sale (or series of sales) of all or substantially all of the assets of the
Company and its Subsidiaries to an entity that is not an affiliate of the
Company.

 

Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because any
person acquires beneficial ownership of 35% or more of the Company Voting
Securities as a result of the acquisition of Company Voting Securities by the
Company which reduces the number of Company Voting Securities outstanding;
provided, that, if after such acquisition by the Company such person becomes
the beneficial owner of additional Company Voting Securities that increases the
percentage of outstanding Company Voting Securities beneficially owned by such
person, a Change in Control shall then occur.

 

(d)           “Change in
Control Termination Period” means the period of time beginning
with a Change in Control and ending at the end of the Window Period.

 

(e)           “Date of
Termination” means (i) the effective date on which the
Executive’s employment with the Company terminates, as specified in a prior
written notice by the Company or the Executive, as the case may be, to the
other, delivered pursuant to Section 14, or (ii) if the
Executive’s employment with the Company terminates by reason of death, the date
of death of the Executive.

 

(f)            “Disability”
means the Executive’s incapacity due to physical or mental illness, as
evidenced by a written statement from a licensed physician acceptable to the
Company or by the insurance company which insures the Company’s long-term
disability plan in which the Executive is eligible to participate which
confirms the Executive’s inability to perform due to such physical or mental
illness.

 

(g)           “Good
Reason” means, without the Executive’s express written consent,
the occurrence of any of the following events following a Change in Control:

 

(i)            (A) any change in
the authority, duties or responsibilities that is inconsistent in any material
and adverse respect with the Executive’s authority, position(s), duties,
responsibilities or status with the Company immediately prior to such Change in
Control (including any material and adverse diminution of such duties or
responsibilities) or (B) a material and adverse change in the Executive’s
reporting responsibilities, titles or offices with the Company as in effect
immediately prior to such Change in Control;

 

(ii)           a material reduction by
the Company in the Executive’s rate of annual base salary or annual target
bonus opportunity (including any material and adverse change in the formula for
such annual bonus target) as in effect immediately prior to such Change in
Control or as the same may be increased from time to time thereafter;

 

(iii)          any requirement of the
Company that the Executive be based anywhere more than fifty (50) miles from
the place of business where the Executive is located at the time of the Change
in Control;

 

(iv)          the failure of the
Company to continue in effect any employee benefit plan or compensation plan in
which the Executive is participating immediately prior to such Change in
Control and which is material to the Executive’s overall compensation, unless
the Executive is permitted to participate in other plans providing the
Executive with benefits or compensation which are not materially less, or the
taking of any action by the Company which would materially and adversely affect
the Executive’s participation in or materially and adversely reduce the
Executive’s benefits under any such plan; or

 

(v)           a material breach by
the Company of this Agreement or any other material agreement in effect between
the Executive and the Company.

 

3

 

Any event described in this Section 1(g) which
occurs prior to a Change in Control, but was at the request of a third party
who had indicated an intention or taken steps reasonably calculated to effect a
Change in Control and who effectuates a Change in Control, shall constitute
Good Reason following a Change in Control for purposes of this Agreement
(treating the date of such event as the date of the Change in Control)
notwithstanding that it occurred prior to the Change in Control.  For purposes of this Agreement, any good
faith determination of Good Reason made by the Executive shall be conclusive; provided,
however, that an isolated, insubstantial and inadvertent action taken in
good faith and which is remedied by the Company promptly after receipt of
notice thereof given by the Executive shall not constitute Good Reason.  The Executive must provide notice of
termination of employment (in accordance with the provisions of Section 14(b))
within ninety (90) days of the Executive’s knowledge of an event constituting
Good Reason or such event shall not constitute Good Reason under this
Agreement.  The Company shall have thirty
(30) days following its receipt of a notice of termination of employment from
the Executive to remedy the condition the Executive claimed to provide a basis
for such termination in the notice of termination.

 

(h)           “Nonqualifying
Termination” means a termination of the Executive’s employment (i) by
the Company for Cause, (ii) by the Executive for any reason other than (x) for
Good Reason during the Change in Control Termination Period or (y) for any
reason during the Window Period, (iii) as a result of the Executive’s
death, or (iv) by the Company due to the Executive’s absence from the
Executive’s duties with the Company on a full-time basis for at least one
hundred thirty (130) business days during any consecutive twelve month period
as a result of the Executive’s Disability.

 

(i)            “Subsidiary”
means any corporation
or other entity in which the Company has a direct or indirect ownership
interest of 50% or more of the total combined voting power of the then
outstanding securities or interests of such corporation or other entity
entitled to vote generally in the election of directors or in which the Company
has the right to receive 50% or more of the distribution of profits or 50% of
the assets on liquidation or dissolution.

 

(j)            “Window
Period” means the thirty (30) day period immediately following
the six (6) month anniversary of a Change in Control.

 

2.             Obligations of the Executive.  The
Executive agrees that if a Change in Control shall occur, the Executive shall
not voluntarily leave the employ of the Company without Good Reason until
ninety (90) days following such Change in Control.

 

3.             Severance Payments. 
Except as otherwise provided in Section 4 and subject to Section 6
and Section 19, if the Executive’s employment with the Company is
terminated other than by reason of a Nonqualifying Termination, then the
Company shall pay or provide the Executive (or the Executive’s beneficiary or
estate) with the following payments or benefits:

 

(a)           a lump-sum cash amount
within thirty (30) days following the Date of Termination equal to the sum of: (i) the
Executive’s base salary through the Date of Termination, and any accrued
vacation, in each case to the extent not theretofore paid; (ii) any unpaid
bonus accrued with respect to the fiscal year ending on or preceding the Date
of Termination; and (iii) subject to presentment of appropriate
documentation, any unreimbursed expenses incurred through the Date of
Termination in accordance with Company policy (collectively, the “Accrued Amounts”);

 

(b)           a lump-sum cash amount
within the calendar year next following the calendar year during which the Date
of Termination occurs equal to the product of (i) the annual bonus the
Executive would have been paid based on the achievement of actual performance
goals and (ii) a fraction, the numerator of which is the number of days in
the fiscal year in which the Date of Termination occurs through the Date of
Termination and the denominator of which is three hundred sixty-five (365) (the
“Pro-Rata Bonus”);

 

4

 

(c)           a lump-sum cash amount
within thirty (30) days following the Date of Termination equal to one times
the sum of (A) the Executive’s annual base salary and (B) the
greatest of (1) the Executive’s target bonus for the fiscal year in which
the Executive’s Date of Termination occurs and (2) the average of the
actual bonuses earned by the Executive in respect of the two (2) preceding
fiscal years of the Company immediately preceding the fiscal year in which the
Date of Termination occurs;

 

(d)           subject to (A) the
Executive’s timely election of continuation coverage under the Consolidated
Budget Omnibus Reconciliation Act of 1985, as amended (“COBRA”),
(B) the Executive’s continued co-payment of the employee portion of any
contribution or premium at the same level and cost to the Executive as if the
Executive were an employee of the Company (excluding, for purposes of
calculating cost, an employee’s ability to pay premiums with pre-tax dollars)
and (C) the Executive’s continued eligibility for COBRA continuation
coverage, the Company will pay for a period of up to twelve (12) months
following the Date of Termination the portion of the Executive’s COBRA premium
equivalent to what the Company would have paid if the Executive were an
employee of the Company.  Notwithstanding
the foregoing, in the event the Executive fails to pay any required
contribution or premium or becomes employed with another employer and becomes
eligible to receive substantially similar or improved medical, dental or vision
benefits from such employer (whether or not the Executive accepts such
benefits), the Company’s obligations under this Section 3(d) shall
immediately cease, except that the Company’s obligation to continue to make
available continuation coverage under COBRA at the full COBRA rates shall be
determined in accordance with COBRA.  The
Executive will notify the Company of the Executive’s eligibility for medical,
dental or vision benefits from a subsequent employer within thirty (30) days of
such eligibility; and

 

(e)           with respect to
outstanding equity awards held by the Executive as of the Date of Termination,
all stock options and stock appreciation rights that would become vested and
exercisable if the Executive had continued to be employed with the Company
during the twelve (12) month period commencing on the Date of Termination shall
vest and become exercisable and the restrictions on all restricted stock
awards, restricted stock units and other equity or incentive awards that would
have lapsed if the Executive had continued to be employed with the Company
during the twelve (12) month period commencing on the Date of Termination shall
lapse and such awards shall become immediately payable; and

 

(f)            all other payments,
benefits or fringe benefits to which the Executive shall be entitled under the
terms of any applicable compensation arrangement or benefit, equity or fringe
benefit plan or program or grant (the “Other Benefits”).

 

4.             Change in Control Severance
Payments.  If a Change in Control occurs and the
Executive’s employment with the Company is terminated (x) other than by
reason of a Nonqualifying Termination (1) during the Change in Control
Termination Period or (2) prior to the Change in Control Termination
Period and the Executive reasonably demonstrates that such termination was at
the request of a third party who had indicated an intention or taken steps
reasonably calculated to effect such Change in Control and who effectuates such
Change in Control (or such termination was otherwise in anticipation of such
Change in Control) or (y) by the Executive for any reason during the
Window Period, then, subject to Section 6 and Section 19
the Company shall pay or provide the Executive (or the Executive’s beneficiary
or estate) with the following payments or benefits:

 

(a)           a lump-sum cash amount
within thirty (30) days following the Date of Termination (or, if later, the
date of the Change in Control) equal to the sum of the Accrued Amounts;

 

(b)           a lump-sum cash amount
within the calendar year next following the calendar year during which the Date
of Termination occurs equal to the Pro-Rata Bonus;

 

(c)           a lump-sum cash amount
within thirty (30) days following the Date of Termination (or, if later, the
date of the Change in Control) equal to one and one-half times the sum of: (A) the
Executive’s 

 

5

 

highest rate of annual base salary during the 12-month
period prior to the Date of Termination; and (B) the greatest of (1) the
Executive’s target bonus for the fiscal year in which the Executive’s Date of
Termination occurs, (2) the Executive’s target bonus for the fiscal year
in which the Change in Control occurs and (3) the average of the actual
bonuses earned by the Executive in respect of the two (2) preceding fiscal
years of the Company immediately preceding the fiscal year in which the Change
in Control occurs;

 

(d)           COBRA continuation
coverage pursuant to Section 3(d), except that the Company will pay
the portion of the Executive’s COBRA premium equivalent to what the Company
would have paid if the Executive were an employee of the Company for a period
of up to eighteen (18) months following the Date of Termination instead of for
up to twelve (12) months;

 

(e)           with respect to
outstanding equity awards held by the Executive as of the Date of Termination,
all stock options and stock appreciation rights shall vest and become
exercisable and the restrictions on all restricted stock awards, restricted
stock units and other equity or incentive awards shall lapse and such awards
shall become immediately payable; and

 

(f)            the Other Benefits.

 

Notwithstanding anything
herein to the contrary, if the Executive becomes entitled to, and receives, payments and benefits pursuant to Section 3 and thereafter becomes entitled to payments
and benefits pursuant to this Section 4, payments and
benefits due under this Section 4 shall be reduced by any amounts
received pursuant to Section 3.

 

5.             Payments Upon Non-Qualifying
Termination of Employment.  If the Executive’s employment with the
Company shall terminate by reason of a Nonqualifying Termination, then the
Company shall pay to the Executive (or the Executive’s beneficiary or estate)
within thirty (30) days following the Date of Termination, a lump-sum cash
amount equal to the Accrued Amounts (other than the amount described in Section 3(a)(ii))
and provide the Other Benefits.

 

6.             Release Required; Resignations.  Any
amounts payable pursuant to this Agreement (other than Accrued Amounts and Other Benefits) shall only be payable if the Executive
executes and delivers to the Company (and does not revoke) a general release of
claims in a form substantially in the form of Exhibit A attached
hereto.  In addition, upon any
termination of the Executive’s employment with the Company, the Executive shall
promptly resign from any position as an officer, director or fiduciary of any
Company-related entity.

 

7.             Certain Additional Payments
by the Company.  (a)  Anything in this Agreement to the
contrary notwithstanding, in the event it shall be determined that any payment,
award, benefit or distribution (or any acceleration of any payment, award,
benefit or distribution) by the Company (or any of its affiliated entities) or
any entity which effectuates a Change in Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 7) (a “Payment”) would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986,
as amended (the “Code”), or
any interest or penalties are incurred by the Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay the Executive an
additional payment (a “Gross-Up Payment”)
in an amount such that, after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes) including,
without limitation, any income and employment taxes (and any interest and
penalties imposed with respect thereto) and any Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. 
For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to (i) pay federal income taxes at the highest
marginal rates of federal income taxation for the calendar year in which the
Gross-Up Payment is to be made, and (ii) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in
which the Gross-Up 

 

6

 

Payment is to be made, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state
and local taxes.

 

(b)           Subject to the
provisions of Section 7(a), all determinations required to be made
under this Section 7, including whether and when a Gross-Up Payment
is required and the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determinations, shall be made by the public
accounting firm that is retained by the Company as of the date immediately
prior to the Change in Control (the “Accounting Firm”)
which shall provide detailed supporting calculations both to the Company and
the Executive within fifteen (15) business days of the receipt of notice from
the Company or the Executive that there has been a Payment, or such earlier
time as is requested by the Company (collectively, the “Determination”).  Notwithstanding the foregoing, in the event (i) the
Board shall determine prior to the Change in Control that the Accounting Firm
is precluded from performing such services under applicable auditor
independence rules, (ii) the Audit Committee of the Board determines that
it does not want the Accounting Firm to perform such services because of
auditor independence concerns or (iii) the Accounting Firm is serving as
accountant or auditor for the individual, entity or group effecting the Change
in Control, the Board shall appoint another nationally recognized public
accounting firm to make the determinations required hereunder (which accounting
firm shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of the Accounting Firm
shall be borne solely by the Company and the Company shall enter into any
agreement requested by the Accounting Firm in connection with the performance
of the services hereunder.  The Gross-Up
Payment under this Section 7 with respect to any Payments shall be
made no later than thirty (30) days following such Payment and, in no event,
later than the calendar year next following the calendar year in which the
Executive remits the taxes to which such Gross-Up Payment relates.  If the Accounting Firm determines that no
Excise Tax is payable by the Executive, it shall furnish the Executive with a
written opinion to such effect, and to the effect that failure to report the
Excise Tax, if any, on the Executive’s applicable federal income tax return will
not result in the imposition of a negligence or similar penalty.  The Determination by the Accounting Firm
shall be binding upon the Company and the Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the Determination,
it is possible that Gross-Up Payments which will not have been made by the
Company should have been made (“Underpayment”)
or Gross-Up Payments are made by the Company which should not have been made (“Overpayment”), consistent with the
calculations required to be made hereunder. 
In the event that the Executive thereafter is required to make payment
of any additional Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code)
shall be promptly paid by the Company to or for the benefit of the
Executive.  In the event the amount of
the Gross-Up Payment exceeds the amount necessary to reimburse the Executive
for the Executive’s Excise Tax, the Accounting Firm shall determine the amount
of the Overpayment that has been made and any such Overpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code)
shall be promptly paid by the Executive to or for the benefit of the
Company.  The Executive shall cooperate,
to the extent the Executive’s expenses are reimbursed by the Company, with any
reasonable requests by the Company in connection with any contests or disputes
with the Internal Revenue Service in connection with the Excise Tax.

 

(c)           Nothing in this Section 7
is intended to violate the Sarbanes-Oxley Act and to the extent that any
advance hereunder would do so, such obligation shall be modified so as to make
the advance a nonrefundable payment to the Executive.

 

8.             Restrictive Covenants.

 

(a)           Non-Compete.  While employed by the Company and during the
twelve (12) month period after the Date of Termination (the “Restricted Period”), the Executive
shall not directly or indirectly (without the prior written consent of the
Company):

 

(i)            hold a 5% or greater
equity (including stock options whether or not exercisable), voting or profit
participation interest in a Competitive Enterprise, or

 

7

 

(ii)           associate (including as
an officer, employee, partner, consultant, agent or advisor) with a Competitive
Enterprise and in connection with the Executive’s association engage, or
directly or indirectly manage or supervise personnel engaged, in any activity:

 

(A)          that is substantially
related to any activity that the Executive was engaged in with the Company or
any of its affiliated entities during the twelve (12) months prior to the Date
of Termination (excluding as a director),

 

(B)           that is substantially
related to any activity for which the Executive had direct or indirect
managerial or supervisory responsibility with the Company or any of its
affiliated entities during the twelve (12) months prior to the Date of
Termination, or

 

(C)           that calls for the
application of specialized knowledge or skills substantially related to those
used by the Executive in the Executive’s activities with the Company or any of
its affiliated entities during the twelve (12) months prior to the Date of
Termination.

 

For purposes of this
Agreement, “Competitive Enterprise” means
any business enterprise anywhere worldwide that either (A) engages in the
manufacture and sale of blast- and ballistic- protected wheeled vehicles for
the US or foreign militaries or (B) holds a 5% or greater equity, voting
or profit participation interest in any enterprise that engages in such a
competitive activity.

 

(b)           Non-Solicit.  During the Restricted Period, the Executive
shall not, in any manner, directly or indirectly (without the prior written
consent of the Company):  (i) Solicit
any Client to transact business with a Competitive Enterprise or to reduce or
refrain from doing any business with the Company or any of its affiliated
entities, (ii) transact business with any Client that would cause the
Executive to be engaged in a Competitive Enterprise, (iii) interfere with
or damage any relationship between the Company or any of its affiliated
entities and a Client or (iv) Solicit anyone who is then an employee of
the Company or any of its affiliated entities to resign from the Company or
affiliated entity or to apply for or accept employment with any other business
or enterprise.

 

(c)           For purposes of this
Agreement, a “Client” means any client or
prospective client of the Company or any of its affiliated entities to whom the
Executive provided services, or for whom the Executive transacted business, or
whose identity became known to the Executive in connection with the Executive’s
relationship with or employment with the Company, and “Solicit”
means any direct or indirect communication of any kind, regardless of who
initiates it, that in any way invites, advises, encourages or requests any
person to take or refrain from taking any action.

 

(d)           Confidential
Information.  The
Executive hereby acknowledges that, as an employee of the Company, the
Executive will have access to confidential information of a special and unique
nature and value relating to the Company and its strategic plan and financial
operations.  The Executive further
recognizes and acknowledges that all such confidential information is the
exclusive property of the Company, is material and confidential, and is
critical to the successful conduct of the business of the Company.  Accordingly, the Executive hereby covenants
and agrees not to, at any time, directly or indirectly, divulge, reveal or
communicate any such confidential information to any person, firm, corporation
or entity whatsoever, or use any such confidential information for the
Executive’s own benefit or for the benefit of others.  Notwithstanding the foregoing, the Executive
shall be authorized to disclose confidential information (i) as may be
required by law or legal process after providing the Company with prior written
notice and an opportunity to respond to such disclosure (unless such notice is
prohibited by law), (ii) in any criminal proceeding against the Executive
after providing the Company with prior written notice and an opportunity to
seek protection for such confidential information, and (iii) with the
prior written consent of the Company.

 

8

 

(e)           Return of
Company Property.  On the
Date of Termination (or at any time prior thereto at the Company’s request),
the Executive shall return all property (both tangible and intellectual)
belonging to the Company or any of its affiliated entities (including, but not
limited to, files, monthly management financial booklets, projections,
forecasts, balance sheets, income statements, audited financial statements,
total cost development budgets, actual or prospective purchaser or customer
lists, written proposals and studies, plans, drawings, specifications, reports
to creditors, books, accounts, reports to directors, minutes, resolutions,
certificates, bank account numbers, passwords, rolodexes, identification cards,
credit cards, computers, fax machines, cellular or other telephones,
Blackberries, beepers, PDA’s, keys, card access keys to any building of the
Company or any of its affiliated entities, deeds, contracts, office equipment
and supplies, records, computer disks and any other documents or things received
or acquired in connection with the Executive’s employment with the Company)
without retaining any copies or extracts thereof.

 

(f)            Nondisparagement.  The Executive agrees not to make negative
comments or otherwise disparage the Company or any of its affiliated entities
or its or their officers, directors, employees, shareholders, agents or
products, in any manner likely to be harmful to them or their business,
business reputation or personal reputation.

 

(g)           Cooperation.  Upon the receipt of reasonable notice from
the Company (including outside counsel), the Executive agrees that while
employed by the Company and thereafter, the Executive will respond and provide
information with regard to matters in which the Executive has knowledge as a
result of the Executive’s employment with the Company, and will provide
reasonable assistance to the Company, its affiliated entities and their
respective representatives in defense of any claims that may be made against
the Company or any of its affiliated entities, and will assist the Company and
its affiliated entities in the prosecution of any claims that may be made by
the Company or any of its affiliated entities, to the extent that such claims
may relate to the period of the Executive’s employment with the Company.  The Executive agrees to promptly inform the
Company if the Executive becomes aware of any lawsuits involving such claims
that may be filed or threatened against the Company or any of its affiliated
entities.  The Executive also agrees to
promptly inform the Company (to the extent that the Executive is legally
permitted to do so) if the Executive is asked to assist in any investigation of
the Company or any of its affiliated entities (or their actions), regardless of
whether a lawsuit or other proceeding has then been filed against the Company
or any of its affiliated entities with respect to such investigation, and shall
not do so unless legally required.

 

(h)           Survival.  The obligations contained in this Section 8
shall survive the termination of the Executive’s employment with the Company
and shall be fully enforceable thereafter.

 

(i)            Validity.  The terms and provisions of this Section 8
are intended to be separate and divisible provisions and if, for any reason,
any one or more of them is held to be invalid or unenforceable, neither the
validity nor the enforceability of any other provision of this Agreement shall
thereby be affected.  The parties hereto
acknowledge that the potential restrictions on the Executive’s future
employment imposed by this Section 8 are reasonable in both
duration and geographic scope and in all other respects.  If for any reason any court of competent
jurisdiction shall find any provisions of this Section 8
unreasonable in duration or geographic scope or otherwise, the Executive and
the Company agree that the restrictions and prohibitions contained herein shall
be effective to the fullest extent allowed under applicable law in such
jurisdiction.

 

(j)            Tolling.  In the event of any violation of the
provisions of this Section 8 on or after the Date of Termination,
the Executive acknowledges and agrees that the post-termination restrictions
contained in this Section 8 shall be extended by a period of time
equal to the period of such violation, it being the intention of the parties hereto
that the running of the applicable post-termination restriction period shall be
tolled during any period of such violation.

 

9

 

9.             Withholding Taxes.  The
Company may withhold from all payments due to the Executive (or the Executive’s
beneficiary or estate) hereunder all taxes which, by applicable federal, state,
local or other law or regulation, the Company is required to withhold
therefrom.

 

10.           Reimbursement of Expenses.

 

(a)           If any contest or dispute
shall arise under this Agreement involving the termination of the Executive’s
employment with the Company (including the covenants contained in Section 8)
or involving the failure or refusal of the Company to perform fully in
accordance with the terms hereof (a “Dispute”) and the Executive
prevails on the material issues in such Dispute,
the Company shall, upon presentment of appropriate documentation (which
submission shall be made within forty-five (45) days after the resolution of
such Dispute), promptly pay or
reimburse the Executive, for all reasonable legal fees and expenses (including
costs of the arbitrators) incurred by the Executive in connection with such Dispute.

 

(b)           Notwithstanding the provisions of Section 10(a), the
Company shall, on a quarterly basis, upon presentment of appropriate
documentation (which submission shall be made within forty-five (45) days after
the end of such quarter), reimburse the Executive for all legal fees and
expenses (including costs of the arbitrators), if any, incurred by the
Executive in connection with a Dispute arising on or after a Change in Control (or
otherwise related to a Change in
Control), except that the
Executive shall reimburse the Company (to the extent permitted under applicable
law) for the fees and expenses advanced (i) in the event the Executive’s
claims are determined to have been advanced by the Executive in bad faith or
were frivolous, or (ii) to the extent that such legal fees and expenses
are determined to be unreasonable.

 

11.           Termination of Agreement.  This
Agreement shall be effective on the Effective Date and shall terminate one year
after the date of any written notification from the Company to the Executive
terminating this Agreement; provided, however, that if a Change
in Control occurs while this Agreement is still operative, any written notification to the Executive terminating this Agreement (including any
written notification given prior to such Change in Control), shall not be effective prior to the end of
the Change in Control Termination Period; and provided, further,
that this Agreement shall continue in effect following any termination that is
not a Nonqualifying Termination which occurs prior to such termination with
respect to all rights and obligations accruing as a result of such termination.

 

12.           Scope of Agreement. 
Nothing in this Agreement shall be deemed to alter the “at-will” nature
of the Executive’s employment or entitle the Executive to continued employment
with the Company.

 

13.           Successors; Binding
Agreement.

 

(a)           This Agreement shall
not be terminated by any Reorganization. 
In the event of any Reorganization, the provisions of this Agreement
shall be binding upon the surviving or resulting corporation or the person or
entity to which such assets are transferred.

 

(b)           The Company agrees that
concurrently with any Reorganization that does not constitute a Non-Control
Transaction, it will cause any successor or transferee unconditionally to
assume, by written instrument delivered to the Executive (or the Executive’s beneficiary
or estate), all of the obligations of the Company hereunder.  Failure of the Company to obtain such
assumption prior to the effectiveness of any such Reorganization, shall be a
material breach of this Agreement and shall constitute Good Reason hereunder
and shall entitle the Executive to compensation and other benefits from the
Company in the same amount and on the same terms as the Executive would be
entitled hereunder if the Executive’s employment were terminated following a
Change in Control other than by reason of a Nonqualifying Termination.  For purposes of implementing the foregoing,
the date on which any such Reorganization becomes effective shall be deemed the
date Good Reason occurs, and shall be the Date of Termination, if requested by the
Executive.

 

10

 

(c)           This Agreement is
personal to the Executive and without the prior written consent of the Company
shall not be assignable by the Executive. 
This Agreement shall inure to the benefit of, and be enforceable by, the
Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.  If the Executive shall die while any amounts
would be payable to the Executive hereunder had the Executive continued to
live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to such person or persons appointed
in writing by the Executive to receive such amounts or, if no person is so appointed,
to the Executive’s estate.

 

14.           Notices.  (a)  For purposes of this Agreement, all notices and other
communications required or permitted hereunder (each, a “Notice”) shall be in writing and shall
be sent by either party by personal delivery, e-mail, fax (with a Notice
contemporaneously given by another method specified in this Section 14), recognized overnight
commercial courier or United
States mail (certified and return receipt requested, postage prepaid) and shall
be deemed to have been duly given when delivered or five (5) days after
deposit in the United States mail, addressed as follows:

 

	
  If to the Company:

  	
   

  	
  Force
  Protection, Inc.

  
	
   

  	
   

  	
  9801 Highway 78,
  Building No. 1

  
	
   

  	
   

  	
  Ladson, South Carolina
  29456-3802

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
  Facsimile: (843)
  553.1311

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
   

  	
  To the Executive’s last
  address (or to the last 

  
	
   

  	
   

  	
  facsimile number) shown
  on the records

  
	
   

  	
   

  	
  of the Company

  

 

or to such other address
as either party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt (or refusal of receipt).

 

(b)           A written notice of the
Executive’s Date of Termination by the Company or the Executive, as the case
may be, to the other, shall (i) indicate the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable,
set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so indicated
and (iii) specify the termination date (which date shall be not less than
thirty (30) nor more than sixty (60) days after the giving of such
notice).  The failure by the Executive or
the Company to set forth in such notice any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
the Executive or the Company hereunder or preclude the Executive or the Company
from asserting such fact or circumstance in enforcing the Executive’s or the
Company’s rights hereunder.

 

15.           Full Settlement; No
Mitigation.  The Company’s obligation to make any payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall be in lieu of and in full settlement of all other severance or
similar payments to the Executive under any other severance or employment
agreement between the Executive and the Company, any severance plan of the
Company and any statutory entitlement (including notice of termination,
termination pay and/or severance pay). 
The Company’s obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action
which the Company may have against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and, except as provided in Section 3(d), such amounts shall not be reduced whether
or not the Executive obtains other employment.

 

16.           Employment with Subsidiaries. 
Employment with the Company for purposes of this Agreement shall include
employment with any Subsidiary or affiliate entity.

 

11

 

17.           GOVERNING LAW; VALIDITY.  THE
INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF SOUTH CAROLINA WITHOUT REGARD TO THE PRINCIPLE OF CONFLICTS OF
LAWS.  THE INVALIDITY OR UNENFORCEABILITY
OF ANY PROVISION OF THIS AGREEMENT SHALL NOT AFFECT THE VALIDITY OR
ENFORCEABILITY OF ANY OTHER PROVISION OF THIS AGREEMENT, WHICH OTHER PROVISIONS
SHALL REMAIN IN FULL FORCE AND EFFECT.

 

18.           Disputes.

 

(a)           Mandatory
Arbitration.  Subject to
the provisions of this Section 18, any Dispute will be finally
settled by arbitration in Charleston, South Carolina administered by the
American Arbitration Association (the “AAA”) under
its Commercial Arbitration Rules then in effect.  However, the AAA’s Commercial Arbitration Rules will
be modified in the following ways:  (i) the
decision must not be a compromise but must be the adoption of the submission by
one of the parties; (ii) the dispute shall be decided by a panel of three (3) arbitrators,
one appointed by each of the parties and the third appointed by the other two (2) arbitrators
or, if the arbitrators do not agree, appointed by the AAA; (iii) each
arbitrator will agree to treat as confidential evidence and other information
presented to them; (iv) there will be no authority to award punitive
damages (and the Executive and the Company agree not to request any such
award); (v) the optional Rules for Emergency Measures of Protections
will apply; (vi) there will be no authority to amend or modify the terms
of this Agreement except as provided in Section 21 (and the
Executive and the Company agree not to request any such amendment or
modification); and (vii) a decision must be rendered within ten (10) business
days of the parties’ closing statements or submission of post-hearing briefs.

 

(b)           Injunctions
and Enforcement of Arbitration Awards.  The Executive or the Company may bring an
action or special proceeding in a state or federal court of competent
jurisdiction sitting in Charleston, South Carolina to enforce any arbitration
award under Section 18(a). 
Also, the Company may bring such an action or proceeding, in addition to
its rights under Section 18(a) and whether or not an arbitration
proceeding has been or is ever initiated, to temporarily, preliminarily or
permanently enforce any part of Section 8.  The Executive agrees that (i) violating
any part of Section 8 would cause damage to the Company that cannot
be measured or repaired and that the Company’s remedies at law for a breach or
threatened breach of any of the provisions of Section 8 would be
inadequate, (ii) the Company therefore is entitled to an injunction,
restraining order or other equitable relief restraining any actual or
threatened violation of Section 8 in addition to any remedies at
law, (iii) no bond will need to be posted for the Company to receive such
an injunction, order or other relief and (iv) no proof will be required
that monetary damages for violations of Section 8 would be
difficult to calculate and that remedies at law would be inadequate.  In addition, in the event of a violation by
the Executive of Section 8, any severance payments or benefits
being paid to the Executive pursuant to this Agreement or otherwise shall
immediately cease and any severance previously paid to the Executive shall be
immediately repaid to the Company.

 

(c)           Jurisdiction
and Choice of Forum.  The
Executive and the Company irrevocably submit to the exclusive jurisdiction of
any state or federal court located in Charleston, South Carolina over any
Dispute that is not otherwise arbitrated or resolved according to Section 18(a).  This includes any action or proceeding to
compel arbitration or to enforce an arbitration award.  Both the Executive and the Company (i) acknowledge
that the forum stated in this Section 18(c) has a reasonable
relation to this Agreement and to the relationship between the Executive and
the Company and that the submission to the forum will apply even if the forum
chooses to apply non-forum law, (ii) waive, to the extent permitted by
law, any objection to personal jurisdiction or to the laying of venue of any
action or proceeding covered by this Section 18(c) in the
forum stated in this Section 18(c), (iii) agree not to
commence any such action or proceeding in any forum other than the forum stated
in this Section 18(c) and (iv) agree that, to the extent
permitted by law, a final and non-appealable judgment in any such action or
proceeding in any such court will be conclusive and binding on the Executive
and the Company.  However, nothing in
this 

 

12

 

Agreement precludes the
Executive or the Company from bringing any action or proceeding in any court
for the purpose of enforcing the provisions of Section 18(a) and
this Section 18(c).

 

19.           Section 409A of the
Code.  The
parties agree that this Agreement is intended to comply with the requirements
of Section 409A of the Code and the regulations and other guidance
promulgated thereunder (“Section 409A”)
or an exemption from Section 409A. 
Notwithstanding anything in this Agreement to the contrary, if the
Executive is a “specified employee” (as described in Section 409A) on the
Date of Termination, any amount to which the Executive would otherwise be
entitled during the first six months following a separation of service that
constitutes nonqualified deferred compensation within the meaning of Section 409A
and that is therefore not exempt from Section 409A as involuntary
separation pay or a short-term deferral will be accumulated and paid in a
single lump sum cash payment (without interest) on the earlier of (i) the
first business day of the seventh month following the date of such “separation
from service” (as defined under Section 409A) or (ii) the date of the
Executive’s death, and any remaining payments and benefits due under this
Agreement shall be paid or provided in accordance with the normal payment dates
specified for them herein.  For purposes
of this Agreement, each amount to be paid or benefit to be provided hereunder
shall be construed as a separate identified payment for purposes of Section 409A.

 

20.           Counterparts.  This
Agreement may be executed (including by facsimile
transmission confirmed promptly
thereafter by actual delivery of executed counterparts) in counterparts, each of which shall be
deemed to be an original and all of which together shall constitute one and the
same instrument.

 

21.           Miscellaneous.  No
provision of this Agreement may be modified or waived unless such modification
or waiver is agreed to in writing and signed by the Executive and by a duly
authorized officer of the Company.  No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or any prior or subsequent
time.  Failure by the Executive or the
Company to insist upon strict compliance with any provision of this Agreement
or to assert any right the Executive or the Company may have hereunder,
including, without limitation, the right of the Executive to terminate
employment for Good Reason or the Company to terminate employment for Cause,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement. 
This Agreement together with all exhibits hereto sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  Except as
otherwise specifically provided for herein, the rights of, and benefits payable
to, the Executive or the Executive’s estate or beneficiaries pursuant to this
Agreement are in addition to any rights of, or benefits payable to, the
Executive or the Executive’s estate or beneficiaries under any other employee
benefit plan or compensation program of the Company.

 

22.           Section Headings.  The
section headings used in this Agreement are included solely for convenience and
shall not affect, or be used in connection with, the interpretation of this
Agreement.

 

[Signatures on next page]

 

13

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by a duly authorized
officer of the Company and the Executive has executed this Agreement on the
Effective Date.

 

 

FORCE
PROTECTION, INC.

 

 

	
  By:

  	
             /s/
  Michael Moody

  	
   

  
	
   

  	
    Name:
  Michael Moody

  	
   

  
	
   

  	
    Title:
  President and CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “EXECUTIVE”
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
              /s/
  Daniel
  Busher                                    

  	
   

  
	
  Name:  Daniel Busher

  	
   

  

 

14

 

Exhibit A

 

Form of General Release

 

This General Release,
dated as of the [·]
day of [·] 20[·], is delivered by [·] (the “Executive”)
to and for the benefit of the Released Parties (as defined below).  The Executive acknowledges that this General
Release is being executed in accordance with Section 6 of the Severance
Agreement dated [·], 200[·] (the “Severance Agreement”).

 

1.             General Release.  (a) 
The Executive, for himself and for the Executive’s heirs, dependents, assigns,
agents, executors, administrators, trustees and legal representatives
(collectively, the “Releasors”)
hereby forever releases, waives and discharges the Released Parties (as defined
below) from each and every claim, demand, cause of action, fee, liability or right of any sort (based upon legal
or equitable theory, whether contractual, common-law, statutory, federal,
state, local or otherwise), known or unknown, which Releasors ever had, now
have, or hereafter may have against the Released Parties by reason of any
actual or alleged act, omission, transaction, practice, policy, procedure,
conduct, occurrence, or other matter from the beginning of the world up to and
including the Effective Date (as defined below), including, without limitation,
those in connection with, or in any way related to or arising out of, the
Executive’s employment or termination of employment or any other agreement,
understanding, relationship, arrangement, act, omission or occurrence, with the
Released Parties.

 

(b)           Without limiting the
generality of the previous paragraph, this General Release is intended to and shall release the Released Parties from any and all claims,
whether known or unknown, which Releasors ever had, now have, or may hereafter
have against the Released Parties including, but not limited to:  (1) any claim of discrimination or
retaliation under the Age Discrimination in Employment Act, Title VII of the
Civil Rights Act, the Americans with Disabilities Act, the Fair Labor Standards
Act, the Employee Retirement Income Security Act of 1974, as amended (excluding
claims for accrued, vested benefits under any employee benefit or pension plan
of the Released Parties subject to the terms and conditions of such plan and
applicable law) and the Family and Medical Leave Act; (2) any claim under
the South Carolina Human Affairs Law and the South Carolina Wage Payment
Statute; (3) any other claim (whether based on federal, state or local law
or ordinance, statutory or decisional) relating to or arising out of the
Executive’s employment, the terms and conditions of such employment, the
termination of such employment and/or any of the events relating directly or
indirectly to or surrounding the termination of such employment, including, but
not limited to, breach of contract (express or implied), tort, wrongful
discharge, detrimental reliance, defamation, emotional distress or compensatory
or punitive damages; and (4) any claim for attorney’s fees, costs,
disbursements and the like.

 

(c)           The foregoing release
does not in any way affect: (1) the
Executive’s rights of indemnification to which the Executive was entitled
immediately prior to the Date of Termination
(as defined in the Severance Agreement);
and (2) the right of the Executive to take whatever steps may be necessary
to enforce the terms of the Severance Agreement.

 

(d)           For purposes of this General Release, the “Released Parties” means Force
Protection, Inc. (the “Company”),
all current and former parents, subsidiaries, related companies, partnerships,
joint ventures and employee benefit programs (and the trustees, administrators,
fiduciaries and insurers of such programs), and, with respect to each of them,
their predecessors and successors, and, with respect to each such entity, all
of its past, present, and future employees, officers, directors, members,
stockholders, owners, representatives, assigns, attorneys, agents, insurers,
and any other person acting by, through, under or in concert with any of the
persons or entities listed in this paragraph, and their successors (whether
acting as agents for such entities or in their individual capacities).

 

2.             No Existing Suit.  The Executive represents and warrants
that, as of the Effective Date of this General
Release, the Executive has not filed or commenced any suit, claim,
charge, complaint, action, arbitration, or legal proceeding of any kind against
the Company or its subsidiaries or affiliates. 

 

 

The Executive
acknowledges that this General
Release does not prohibit the Executive from filing a charge of
discrimination with the Equal Employment Opportunity Commission.

 

3.             Knowing and
Voluntary Waiver.  By signing this General Release, the Executive expressly
acknowledges and agrees that: (a) the Executive has carefully read it and
fully understands what it means; (b) the Executive has discussed this General Release with an attorney of the
Executive’s choosing before signing it; (c) the Executive has been given
at least twenty-one (21) calendar days to consider this General Release; (d) the Executive has agreed to this General Release knowingly and voluntarily
and was not subjected to any undue influence or duress; (e) the
consideration provided the Executive under Severance Agreement is sufficient to support the releases provided by the
Executive under this General Release;
(f) the Executive may revoke the Executive’s execution of this General
Release within seven (7) days after the Executive signs it by
sending written notice of revocation as set forth below; and (g) on the
eighth day after the Executive executes this General Release (the “Effective Date”),
this General Release becomes
effective and enforceable, provided that the Executive does not revoke this
Agreement during the revocation period. 
Any revocation of the Executive’s execution of this General
Release must be submitted, in writing, to Force Protection, Inc.
9801 Highway 78, Building No. 1, Ladson, South Carolina 29456-3802, to the
attention of the Co-General Counsel, stating “I hereby revoke my execution of the General Release.”  The
revocation must be personally delivered to the General Counsel or mailed to the
General Counsel and postmarked within seven (7) days of the Executive’s
execution of this General Release.  If the last day of the revocation period is a
Saturday, Sunday or legal holiday, then the revocation period will be extended to
the following day which is not a Saturday, Sunday or legal holiday.  The Executive agrees that if the Executive
does not execute this General Release
or, in the event of revocation, the Executive will not be entitled to receive
any of the payments or benefits under the
Severance Agreement (other than the Accrued Amounts and the Other
Benefits).  The Executive must
execute this General Release on or before [·], 20[·].

 

This General Release is
final and binding and may not be changed or modified.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [                                                      ]

  

 

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