Document:

Exhibit 10.1

 

TRANSITION
ARRANGEMENTS AGREEMENT

 

THIS AGREEMENT (the “Agreement”), executed to be effective as of September 17,
2008 (the “Effective Date”), by and between CH2M HILL Companies, Ltd. (“CH2M
HILL”) and Mr. Ralph R. Peterson (the “Executive”). CH2M HILL and the
Executive shall hereafter be referred to as “Parties” and each a “Party”.

 

Recitals

 

A.            The
Executive is currently employed as CH2M HILL’s Chief Executive Officer (“CEO”)
and Chairman of the Board of Directors (“Chairman”).

 

B.            For
the last two years, the Executive has been working with CH2M HILL’s Board
of Directors and its senior management team to orchestrate an orderly
transition of his responsibilities as CH2M HILL CEO and Chairman.

 

C.            Pursuant
to this long term succession plan, the Executive has decided to step down and
resign from his current position as CH2M HILL’s CEO effective December 31,
2008 (the “Resignation Date”) and as Chairman at the end of the Executive’s
term as a member of the Board of Directors in May, 2009. CH2M HILL is accepting
the Executive’s resignation subject to the terms and conditions of this
Agreement.

 

D.            CH2M
HILL and the Executive desire for the Executive to participate in the
transition of his responsibilities during a transition period from the Effective
Date until the Resignation Date (the “Transition Period”); and the Executive
desires to continue his affiliate with CH2M HILL in a non-executive role as a
Chairman Emeritus after the end of his Board term in May, 2009 until he retires
on October 12, 2009 (the “Retirement Date”), subject to the terms and
conditions of this Agreement.

 

E.             In
consideration for the Executive’s services during the Transition Period and
until retirement and in exchange for certain promises and covenants by the
Executive, the Company desires to provide the Executive with certain additional
compensation and benefits that the Executive is not otherwise entitled to under
the terms of his current employment with CH2M HILL.

 

F.             The
Parties wish to enter into this Transition Arrangements Agreement, which shall
replace and supersede the Executive’s employment arrangements and
understandings, written and oral, in their entirety;

 

NOW, THEREFORE, in consideration of the mutual covenants and promises
set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, CH2M HILL and the Executive
hereby agree as follows:

 

Agreement

 

I.              REASSIGNMENT OF DUTIES AND OTHER TRANSITION
ARRANGMENTS.

 

1.     The
Executive hereby resigns, effective December 31, 2008,  as CH2M HILL’s Chief Executive Officer and
all other officer and director level positions that the 

 

 

Executive
holds with CH2M HILL affiliates (including all joint ventures and special
project companies) which resignation shall become effective without further
action by the Executive or CH2M HILL at the close of business on the
Resignation Date.

 

2.               The
Transition Period shall commence immediately as of the Effective Date and shall
continue until the Resignation Date.

 

3.               Effective
as of the Effective Date, the Executive shall commence transition of his
responsibilities as the CEO to Mr. Lee A. McIntire, the new CEO appointed
by the Board to succeed the Executive (the “New CEO”). During this transition
period, the New CEO shall take on the day-to-day operations and leadership of
the company, interfacing with the Executive as appropriate in the best interest
of CH2M HILL.

 

4.               Effective
as soon as the Board of Directors elects a new Chairman to succeed the
Executive, the Executive shall commence transition of his responsibilities as
the Chairman of the Board.

 

5.               During
the Transition Period, CH2M HILL will facilitate the transition of all other
officership and directorships that the Executive holds with CH2M HILL
affiliates, including the joint ventures and special project companies.

 

6.               During
the Transition Period, certain other transition arrangements shall take place
as follows:

 

a.               The Executive will facilitate
and cause to occur, no later than by end of business Friday, September 19,
2008 all customary and appropriate public announcements and internal
communications about the Executive’s decision to step down as CH2M HILL’s CEO,
including the announcement of the appointment (effective January 1, 2009)
of the New CEO.

 

b.              The Executive shall, as soon
as possible at the start of the Transition Period, assist and effect the
re-assignment and delegation of the Executive’s duties as CEO to the New CEO
and provide whatever support is necessary and appropriate to facilitate a
smooth transition of responsibilities.

 

c.               The Executive shall as soon
as practicable after the Board’s election of the new Chairman and as requested
by the Lead Director coordinate and assist with the prompt transition of all
the Executive’s duties and responsibilities as Chairman, and as chairman or
member of each Committee of the Board on which the Executive serves, to the new
Chairman of the Board when elected.

 

d.              In order to assist the
transition of the Executive’s duties and responsibilities as Chairman and as a
member of various Board Committees,

 

(i)                                     The Executive shall
not vote or otherwise actively participate in the regularly scheduled November 2008
and February 2009 meetings of the Board and committees thereof.

 

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(ii)                                  The Executive shall,
or cause the Lead Director to, cancel the planned 2008 Board retreat (the Board
retreat to reschedule for early 2009).

 

7.               During the Executive’s
service as the Chairman Emeritus until the Retirement Date, the Executive will
perform services to be agreed on behalf of CH2M HILL, such as acting as a
member of public bodies and organizations and other roles as reasonably
requested from time to time by the Lead Director, the members of the Board, or
the New CEO. Notwithstanding the foregoing, the Executive shall not be required
to commit any minimum level of effort (number of hours on a weekly, monthly or
other basis).

 

8.               Until his retirement, the
Executive shall continue to represent CH2M HILL by words and actions in
the most positive manner, consistent with the values of CH2M HILL and its
obligations to its employee-shareholders, other employees and stakeholders.

 

II.             COMPENSATION and BENEFITS;
EMPLOYMENT AT-WILL.

 

1.               Employment
At-Will. As has been the case during the Executive’s entire career with
CH2M HILL, he shall remain an employee at-will, subject
to CH2M HILL’s policies and procedures. Nothing in this Agreement shall
modify that employment status.

 

2.               Base
Salary. If the Executive
materially complies with the terms and understandings of this Agreement, and
his employment continues until the Retirement Date or if the Executive’s
employment with CH2M HILL terminates for any reason other than as
specified in Section II.6, the Executive shall be compensated as follows:

 

a.               Transition Period. During the
Transition Period, the Executive will receive base salary in the amount of
approximately $82,916 per month, representing the Executive’s current monthly
compensation at his annual base salary rate of $995,000.

 

b.              After Transition Period. After the
Resignation Date and until the Retirement Date, the Executive will receive base
salary of approximately $62,188 per month, representing approximately 75% of
the Executive’s current monthly compensation.

 

3.               Incentive Compensation.
If the Executive materially complies with the terms and understandings of this
Agreement, and his employment continues until the Retirement Date or if the
Executive’s employment with CH2M HILL terminates for any reason other than
as specified in Section II.6, the Executive shall receive the following
incentive compensation:

 

a.               STI. Subject to the Executive being actually
employed by CH2M HILL on the date of the 2008 Short Terms Incentive (“STI”)
benefit payout, currently expected early in March, 2009, the Executive will
receive STI with respect to the Executive’s and CH2M HILL’s overall
enterprise performance in fiscal 

 

3

 

year
2008 in the amount of approximately $995,000; the actual amount to be
determined based on the company’s performance in 2008.

 

b.              LTI. Payouts pursuant to the Executive’s
2006, 2007, and 2008 Executive Long Term Incentive (“ELTI”) awards to be paid
in the first quarter of 2009, 2010, and 2011 respectively, in the amount of
approximately $2,700,000 with respect to the 2006 award (payable in 2009),
$3,800,000 with respect to the 2007 award (payable in 2010), and $2,985,000
with respect to the 2008 award (payable in 2011). The ELTI award payouts are
based on a 3-year performance of the company and the actually amounts of the
payout will be determined within a reasonable time of the end of each ELTI
3-year period.

 

4.               Retirement Benefits.

 

a.               Defined Benefit Pension Plan. All benefits currently accrued for the Executive pursuant to that
certain, frozen as of 1993, CH2M HILL defined benefit pension plan , to be
paid in accordance with the provisions of the plan.

 

b.              DCRP. Pursuant to that
certain CH2M HILL Deferred Compensation Retirement Plan (“DCRP”), the
Executive will receive, at the Executive’s discretion, either  a lump sum payment of his entire benefit as
of the Retirement Date or annual installments equivalent as provided under the
terms of the DCRP  CH2M HILL  and the Executive agree that the actual
amount of this benefit will be calculated following the Retirement Date, using
the Retirement Date as the actual benefit calculation date under the DCRP;
provided, however, if the Executive separates from CH2M HILL for any
reason before the Retirement Date, then the benefits will be pro-rated based on
the actual years of service before the Retirement Date in a manner similar to
how other DCRP participants have been handled under similar circumstances.

 

c.               Life Insurance Benefit.
Until the Retirement Date, CH2M HILL will pay all premiums and
otherwise maintain in full force and effect the existing $13,000,000 face value
life insurance policy currently maintained by the company on the life of the
Executive.  After the Retirement Date, CH2M HILL shall assign to the
Executive, the Executive’s portion of this company owned life insurance policy,
which is currently estimated to be approximately $4,975,000. All premium costs
for this policy shall be the responsibility of the Executive after the
Retirement Date. CH2M HILL and the Executive agree that this policy has no
cash value due to the Executive as of the date hereof and as of the Retirement
Date. Except as otherwise provided in Section 5(d) of this Agreement,
when and to the extent that the company transfers the Executive’s portion of
this policy to the Executive in accordance with the terms thereof, the entire
cash value of the policy shall remain with CH2M HILL.

 

d.              Retiree Medical. Upon retirement, the
Executive shall have the benefit of CH2M HILL retiree benefits for self
and spouse pursuant to CH2M HILL’s retiree benefit plan at the level
appropriate for the senior executive at CH2M HILL. The availability of
this benefit is contingent on CH2M HILL’s 

 

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discretion to continue to
provide it and the level at CH2M HILL will provide it in the future.

 

e.               DCP and EDCP Payouts. The Executive shall receive all payouts due
to him under CH2M HILL’s Deferred Compensation Plan (“DCP”) and Executive
Deferred Compensation Plan (“EDCP”) based on the distribution elections made by
the Executive under the plan and in full compliance with IRS Code Section 409A.

 

f.                 Alumni Program. Employ
may elect to participate in the CH2M HILL Alumni Program with respect to
CH2M HILL shares of common stock that the Executive Owns or he can elect
to sell his shares through the CH2M HILL Internal Market (as described in
the CH2M HILL Prospectus and Annual Report on Form 10K). If the
Executive wishes to accelerate the sale of his CH2M HILL shares beyond the
schedule provided under the Alumni program he can do so at his discretion
subject to the Internal Market rules and limitations; provided, however,
that the Executive will not sell any of his shares in CH2M HILL between December 2008
and June 2009 (inclusive) as such sale may create negative impressions
about CH2M HILL’s business prospects and stability post-Executive
resignation.

 

5.               Additional Discretionary Compensation and Benefits. Subject to the Executive’s compliance with
all material terms and understandings of this Agreement, in consideration
of assistance that the Executive will provide to CH2M HILL during the
Transition Period and for other services requested from time to time by the
Lead Director, members of the Board of Directors, or the New CEO, between the
Resignation Date and Retirement Date, at the discretion of the Lead Director of
CH2M HILL’s Board (which discretion is to be exercised with reasonable
care and in consultation with other members of the Board of Directors), the
Executive shall receive additional compensation as follows:

 

a.               Additional Base Salary.

 

(i) After
the Resignation Date and until the Retirement Date, assuming he is employed by
CH2M HILL, the Executive shall receive supplemental salary adjustment of
up to $24,478 per month to increase total monthly compensation to $86,666,
($62,188 plus $24,478), representing an annual salary rate of approximately
$1,040,000.

 

(ii)   The additional compensation available to the
Executive under the provisions of this Section 5(a) is up to
$232,541.

 

b.              Additional Incentive Compensation.

 

(i)    STI. Payable at the time when 2008 STI is paid at CH2M HILL, currently
expected in early in March of 2010, the Executive shall receive an
additional STI compensation in the amount of approximately $823,000 based,
however, on the Executive’s and CH2M HILL’s overall enterprise performance
in fiscal year 2009; the actual amount to be determined based on the company’s
performance in 2009.

 

5

 

(ii)   LTI. Payable at the time when 2009 ELTI awards are to be paid, currently
expected in early in March of 2012, the Executive shall receive an
additional compensation based on the $2,470,000 target prorated for partial
year of service in 2009. The ELTI award payouts are based on a 3-year
performance of the company and the actually amount of the 2012 payout will be
determined within a reasonable time of the end of 2011, for the 2009 ELTI
3-year period, based on the company’s performance.

 

c.               Additional DCRP Benefit.
Payable as provided under the DCRP to supplement the retirement benefit already
outlined in Section II.4(b) of this Agreement, an additional
retirement benefit sufficient to deliver (in conjunction with the Section II.4(b) benefit)
a total aggregate benefit as provided in the DCRP equal to 50% of the Executive’s
base salary (2009 nominal salary rate of $1,040,000) as of the Retirement Date.
Based on the currently available information, CH2M HILL believes that the
total value of the overall DCRP  benefit
will be approximately $2,500,000 The actual value of this benefit to be
calculated in accordance with the provisions of the DCRP  effective as of the Retirement Date.

 

d.              Additional Life Insurance Benefit. In addition to the
life insurance benefit described in Section 4(c), CH2M HILL will
transfer to the Executive, at Retirement, the entire $13,000,000 face value
life insurance policy, including the policy’s cash value, currently estimated
to be at least $3,500,000, and the company’s portion of the  policy (in addition to the Executive’s
portion covered in Section 4(c)), estimated to have value of at least
$2,500,000; for a total additional benefit of $6,000,000. The actual cash value
and policy value to be definitively determined by Fulcrum Consultants (Joe
Thompson) at retirement or sooner. To the extent the aggregate realizable value
of this benefit is less than $6,000,000, CH2M HILL will true up the total
benefit, to $6,000,000, payable to the Executive by CH2M HILL in cash as
soon as practicable after the value is so determined. To the extent the aggregate
value of this benefit exceed $6,000,000 as determined by Fulcrum Consultants as
of the Retirement Date, such additional benefit will be for the account of the
Executive.

 

e.               Stock Options. To the
extent some of the Executive’s stock options, currently held, would not fully
vest as of the Retirement Date, the company (as part of the additional
discretionary retirement benefit will provide to the Executive the value of
these not yet vested options, calculated based on the difference between the
options’ strike price and the fair market value of CH2M HILL’s stock as of
the Retirement Date. This additional benefit will be paid by CH2M HILL to
the Executive in cash as soon as practicable after the Retirement Date.

 

f.                 Change of Control Benefit. The benefits that the Executive now enjoys under a Change of Control
Agreement with CH2M HILL will remain in effect until the date of the Board
meeting immediately following the Resignation Date.

 

6.               Termination for Cause.
All additional compensation as outlined in Section 5 of this Agreement
shall be at the discretion of the Lead Director of the Board (to be 

 

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exercised
with reasonable care and in consultation with the Board of Directors). If,
during the term of this Agreement, the Executive’s employment with
CH2M HILL is terminated for cause then the Executive shall only be
entitled to compensation outlined in Sections II.2 and II.4  of this Agreement.

 

Cause.  For purposes of this Agreement, the company may
terminate the Executive “for Cause” if:

 

(A)                              The
Executive commits any act of misconduct in violation of CH2M HILL’s
policies;

 

(B)                                During
the Transition Period or post-Transition Period until the Retirement Date, the
Executive engages in any activity which would reasonable constitute a material
conflict of interest with CH2M HILL;

 

(C)                                The
Executive breaches material provisions of this Agreement. For the avoidance of
doubt and without limiting the generality of other provisions herein, all
provisions of Article I and IV of this Agreement, as well as provisions of
Article V.3 and V.8 are deemed material by the Parties.

 

(D)                               Prior
to the Retirement Date, the Executive commits any act of misconduct which in
the opinion of the Lead Director, in his sole discretion (this discretion to be
reasonably applied in consultation with the Board) is harmful to
CH2M HILL, its shareholders, or other employees and stakeholders.

 

(E)                                 The
Executive having been convicted of (or plead guilty or nolo contendere to) a
felony involving fraud, dishonesty or moral turpitude.

 

III.         GENERAL RELEASE AND
AKNOWLEDGEMENTS.

 

1.               The Executive and
CH2M HILL agree that, in exchange for CH2M HILL’s entering into this
Agreement and the payments and other terms described herein, the Executive
hereby releases and discharges the company and any of its subsidiaries or
affiliates, and their respective directors, officers, employees, agents,
representatives, benefit plans and administrators, successors and assigns from
any and all claims, obligations, and liabilities, whether known or unknown, at
law or in equity, arising out of the Executive’s employment with
CH2M HILL; provided, however, that this release shall not include release
of any equity interests, grants, rights or entitlements, or any other accrued
benefits under any agreement, plan or policy, or to any accrued compensation
that the Executive is entitled to without discretion on the part of the company.
Subject to those benefits and rights and the rights hereunder, this Agreement
is to be broadly construed so as to resolve all pending or potential disputes
including, but without limiting the generality of the foregoing, any and all
claims under the Age Discrimination in Employment Act, as amended by the Older
Workers Benefit Protection Act of 1990, Title VII of the Civil Rights Act of
1964, the Americans with Disabilities Act, the Employee Retirement Income
Security Act of 1974, the Equal Pay Act, the Family and Medical Leave Act, the
discrimination and wage payment laws of the State of Colorado, and any other
statute, regulation, or

 

7

 

ordinance, and any and all
claims based upon alleged wrongful or retaliatory discharge, negligence,
intentional infliction of emotional distress, defamation, invasion of privacy,
other torts, harassment, employment discrimination or breach of contract (express
or implied). Notwithstanding the foregoing, the Executive does not waive any
rights the Executive may have to enforce the terms of this Agreement, to
benefits available after termination under any company-sponsored equity or
employee benefit plan, to insurance protection and/or indemnification for
actions taken by the Executive while an employee, officer and/or director of
the Company or to make any claims for workers’ compensation.

 

2.               For the avoidance
of doubt, CH2M HILL’s willingness to enter into this Agreement is in
consideration for the services that the Executive will provide to the company
as provided herein and not as a quid pro quo for any wrongdoing on the part of
CH2M HILL.

 

3.               To further
acknowledge this Release and understanding, the Executive shall sign the
Release document attached hereto as Exhibit A.

 

IV.  
COVENANTS AND
UNDERSTANDINGS.

 

All Restrictive Covenants outlined in this Section IV.2
may be waived by CH2M HILL (its Lead Director or New CEO or their
designee) at its discretion.

 

1.               Legitimate Business Interests. The Executive acknowledges that
CH2M HILL has “Legitimate Business Interests,” which CH2M HILL seeks
to protect by the Restrictive Covenants set forth below in this Article IV.

 

2.               Restricted Period. The restrictive covenants set forth below
shall apply effective immediately and for 3 years following the Retirement Date.
Given the Executive’s role as the CEO and the Chairman of the company, the
Executive agrees that the duration of the restrictive covenants is reasonable
and appropriate under the circumstances.

 

3.               Restricted Area. The Executive acknowledges that
CH2M HILL’s business is intended to be and is global, and agrees that any
of his activities anywhere in the world in violation of the restrictive
covenants contained herein would unfairly damage CH2M HILL and its Legitimate
Business Interests. Therefore, the restrictive covenants contained in this
Agreement shall apply and be effective throughout the world (the “Restricted
Area”).

 

4.               Covenant Not to Compete. During the Restricted Period and within the
Restricted Area, the Executive shall not directly or indirectly, individually
or in combination with others, complete with CH2M HILL as an employee,
officer, director, independent contractor, consultant, agent, venturer,
partner, member, or other beneficial holder of any interest in any
CH2M HILL Competitor (as that term defined in herein). Notwithstanding the
foregoing, nothing herein shall prevent the Executive from owning or purchasing
stock of a CH2M HILL Competitor on the open market, either directly or
through the ownership of a mutual funds or other investment vehicle, as long as
the Executive Does not directly or indirectly own more than .1% (in the
aggregate) of such CH2M HILL Competitor.

 

8

 

For purposes of this
Agreement, the term “CH2M HILL Competitor” shall be defined as any engineering,
program management, or construction company engaged in any activities or
businesses similar in material respects to CH2M HILL’s business and ranked
by the ENR (Engineering News Record); or any financial institution or
investment bank in business of acquiring or selling businesses like
CH2M HILL.

 

5.               Waiver of
Non-Complete Restriction. At any time, the Executive may seek a waiver of his
obligations under a Covenant Not to Compete outlined in this Section IV.2
of this Agreement by discussing any proposed activity with the New CEO or his
successor or designee. The New CEO shall determine in his sole discretion
whether the potential engagement is competitively harmful to CH2M HILL and
may waive the Covenant Not to Compete obligations in his discretion.

 

6.               Covenant Against
Interference with Client Relations. During the Restricted
Period and within the Restricted Area, the Executive shall not interfere in any
manner with any CH2M HILL relationships with its clients or prospective clients.
Activities prohibited hereunder shall include, but are not limited to, the
Executive’s  request, suggestion, advice,
recommendation, solicitation, or other actions or attempts to induce or
influence a client or a prospective client to

 

a.               Withdraw from,
curtail, or cease discussions with CH2M HILL about project or business
opportunities;

b.              cancel, breach,
terminate, or otherwise fail to go forward with any contract or business
relation with CH2M HILL; or

c.               do business within
the scope of CH2M HILL business with any person or entities other than CH2M
HILL.

 

7.               Covenant Against
Interference with Employment Relations. During the Restricted
Period and within the Restricted Area, the Executive shall not interfere in any
manner with any CH2M HILL relations with any person who, to the knowledge of
the Executive, is employed by or otherwise in the service of one or more of the
CH2M HILL companies during the Restricted Period or in the previous twelve (12)
months. Activities prohibited hereunder shall include, but are not limited to,
the Executive’s request, suggestion, advice, recommendation, solicitation, or
other actions or attempts to induce or influence an employee or other person to
leave employment or the service of any CH2M HILL company nor identification of
any persons so engaged by CH2M HILL as a target of recruiting activities
by others.

 

8.               Covenant Regarding
Corporate Opportunities. During the Restricted Period, the Executive shall
promptly refer to CH2M HILL any information or inquiry he receives or is aware
of concerning any opportunity involving or relating to CH2M HILL business
anywhere in the Restricted Area, and shall not refer such inquiry or
information to any other person or entity. In the event that CH2M HILL is
not interested in pursuing such a opportunity, the Executive shall be free to
pursue such opportunities directly or advise others about such opportunities,
provided he advises the New CEO of his intention to do so.

 

9

 

9.               Nondisclosure
Covenant. During the Restricted Period, the Executive shall not,
without the prior written consent of the New CEO, use or exploit for any
purpose not related to his activities on behalf of  CH2M HILL, or disclose to any person or
entity other than an employee, officer or director of CH2M HILL (with a
need-to-know and to whom disclosure is reasonably necessary or appropriate in
connection with the performance by the Executive of his duties as outlined
hereunder) any Confidential Information of any of CH2M HILL Companies.

 

In the event that the
Executive is called upon to disclose Confidential Information in connection
with any judicial or administrative proceeding or inquiry, the Executive shall
(unless prohibited from doing so by law) immediately inform CH2M HILL of
the proceeding and the potential disclosure of Confidential Information, and
shall cooperate with CH2M HILL fully to obtain a protective order (or
similar protection mechanism) to the extent possible. In the event of any
action or proceeding between the Executive and CH2M HILL, in which disclosure
of Confidential Information may be necessary or appropriate, the Executive
shall limit such disclosure to that which is absolutely necessary and shall
cooperate with CH2M HILL in obtaining an order to protect the Confidential
Information from public disclosure. CH2M HILL shall be responsible for any
reasonable fees and costs incurred in seeking and obtaining such protective
orders.

 

For purposes of this Agreement, “Confidential
Information” shall mean information about CH2M HILL, its companies and its
business, employees, and clients that is not generally available outside the
confines of our organization, and (a) is identified or treated by
CH2M HILL as confidential, proprietary or trade-secret, or (b) in
CH2M HILL’s discretion is competitively sensitive and the disclosure of it
would have a detrimental effect on CH2M HILL and/or unfairly disadvantage
CH2M HILL in the marketplace.

 

10.         Severability and
Reformation of Restrictive Covenants. In entering into this
Agreement and restrictive covenants herein contained, it is the intent of both
Parties to comply with the requirements of Colorado law in all material
respects and for the restrictive covenants to be fully enforceable under
Colorado law. If any restraint contained herein is deemed by a court of
competent jurisdiction to be unreasonable in scope, duration, activities
restricted, or otherwise, the parties hereby authorize and request the court to
modify the restraint to the minimum extent necessary, so as to grant the relief
provided and intended by this Agreement to the maximum extent permitted by law.

 

11.         Remedies. The Parties hereto
agree that the restrictive covenants contained in this Agreement are material
terms of this Agreement, without which CH2M HILL would not have entered
into this Agreement. Therefore, the Parties agree that any material breach of
any such covenant shall discontinue any obligation by CH2M HILL to provide
any further consideration as provided in this Agreement. The parties further
agree that the Executive’s material breach of any covenant contained in this
Agreement would result in substantial damage to CH2M HILL that would be
difficult or impossible to ascertain or quantify. The Executive therefore
agrees that in the event of any breach or threatened breach of the restrictive
covenants, CH2M HILL and/or any of CH2M HILL companies shall 

 

10

 

have the right to enforce the provisions of this Agreement
by any appropriate and effective legal and/or equitable remedy.

 

V.            MISCELLANEOUS
PROVISIONS.

 

1.               Binding Effect.

 

a.               This Agreement
shall be binding upon and inure to the benefit of the Executive, Executive’s
executors, administrators, legal representatives, heirs and legatees and on
CH2M HILL and its subsidiaries, affiliates, agents, employees, officers
and their respective successors and assigns.  CH2M HILL  shall require any Successors and Assigns to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the company would be required to perform it, if no such
succession or assignment had taken place.

 

b.              Neither this
Agreement nor any right or interest hereunder shall be assignable or
transferable by the Executive or the Executive’s beneficiaries or legal
representatives, except by will or by the laws of descent and distribution.

 

2.               Indemnification.
During the Term of this Agreement, the Company agrees to indemnify and hold
harmless, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any action threatened
or filed against the Executive arising from or on account of his employment by
CH2M HILL.  The company shall pay all reasonable legal fees and
related expenses (including the reasonable costs of experts, evidence and
counsel) incurred by the Executive as they become due as a result of such
obligation.

 

3.               Cooperation. 
The Executive shall exercise best efforts to assist the company, if requested
by CH2M HILL to assist it or its counsel or is otherwise subpoenaed or
called as a witness, at trial or otherwise. The company will advance the
Executive the expenses related thereto, but the Executive shall be entitled to
no additional compensation.

 

4.               Notices. Notices and all other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly
given when personally delivered or sent by overnight delivery service, or by
certified mail, return receipt requested, postage prepaid, addressed to the
respective addresses last given by each Party to the other; provided, that all
notices to CH2M HILL shall be directed to Senior Vice President of HR and
General Counsel. All notices and communications shall be deemed to have been
received on the date of delivery thereof or on the third business day after the
mailing thereof, except that notice of change of address shall be effective
only upon receipt.

 

5.               No Further Benefits. The compensation and benefits provided for
in this Agreement shall be in lieu of any other severance or separation from
service pay to which the Executive may be entitled under any CH2M HILL
severance or termination plans, program, practice or arrangement. The Executive’s
entitlement to any other compensation or benefits shall be determined in
accordance with 

 

11

 

CH2M HILL employee benefit plans and
other applicable programs, policies and practices then in effect.

 

6.               Legal Review; Sophisticated Parties; No
Changes. The Executive and
CH2M HILL acknowledge that this Agreement sets forth the entire
understanding between them. Neither Party has relied upon any representation or
statement with respect to subject matter hereof, written or oral, not set forth
in this Agreement. This Agreement may not be changed orally, but only by a
specific written agreement signed by the Party against whom enforcement of any
waiver, change, modification, extension, or discharge is sought.

 

This Agreement is deemed to have been drafted
jointly by the Parties and any uncertainty or ambiguity shall not be construed
for or against any party based upon attribution of drafting to any party.

 

The Executive, by signing below, acknowledges
that CH2M HILL has encouraged him to review the legal effect and implications
of this Agreement with an attorney and carefully and thoroughly review the
Agreement prior to signing. This subparagraph constitutes the written
advice to this effect  As a senior executive and a sophisticated
financially savvy party, the Executive acknowledges that he reviewed this
Agreement and understands its terms and conditions. The Executive
executes this Agreement knowingly and voluntarily, without duress of any kind,
and after having given the matter full and careful consideration.

 

7.               Unenforceability. In the event a particular provision of the
Agreement is declared invalid or unenforceable, the remaining provisions of the
Agreement will continue in full force and effect. This Agreement shall be
construed in all respects as if such invalid or unenforceable provisions were
omitted.

 

8.               No Disparagement. 
The Parties agree that they will not, directly or indirectly, individually or
in concert with others, engage in any conduct or make any statement calculated
or likely to have the effect of undermining, disparaging or otherwise
reflecting poorly upon the other (including, in CH2M HILL’s case, its
employees, officers and directors), though each (in the company’s case, through
representatives) may give truthful testimony if properly subpoenaed to testify
under oath.

 

9.               Governing Law; Dispute Resolution and Venue. The Parties agree that this Agreement shall
be construed and enforced in accordance with the laws of the State of Colorado,
without giving effect to any choice or conflict of laws provision or rule that
would cause the application of the domestic substantive laws of any other
jurisdiction. The Parties agree that all disputes with respect to this Agreement
shall be resolved through courts of competent jurisdiction located in the State
of Colorado.

 

10.         Waivers. The waiver by either Party of any right under this Agreement or of
any failure to perform or breach by the other party hereto shall not be deemed
a waiver of any other right hereunder or of any other failure or breach by the
other party whether of the same or a similar nature or otherwise. No waiver
shall be 

 

12

 

deemed to have occurred unless set forth in a
writing executed by or on behalf of the waiving party. No such written waiver
shall be deemed a continuing waiver unless specifically stated therein, and
each such waiver shall operate only as to the specific term or condition waived
and shall not constitute a waiver of such term or condition for the future or
as to any act other than that specifically waived.

 

No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and 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 at any prior or subsequent time. No
agreement or representation, oral or otherwise, express or implied, with
respect to the subject matter hereof has been made by either party which is not
expressly set forth in this Agreement.

 

11.         Tax Withholdings. All
payments due to the Executive hereunder shall be subject to and net of all
normal and customary tax withholdings that are in effect at the time the
payments are made.

 

IN WITNESS WHEREOF, CH2M HILL has caused
this Agreement to be executed by its duly authorized officer and the Executive
has executed this Agreement as of the day and year first above written.

 

	
  CH2M HILL Companies, Ltd.

  	
  The Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Robert Allen

  	
   

  	
  By:

  	
   /s/ Ralph R. Peterson

  
	
   

  	
   Robert Allen,

  	
   

  	
   Ralph R. Peterson

  
	
   

  	
   Sr. Vice President for Human
  Resources

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   September 17, 2008

  	
   

  	
  Date:

  	
  September 17, 2008

  
	
   

  	
   

  	
   

  
									

 

13

 

EXHIBIT A

 

RELEASE

 

In consideration for the
benefits described in the Transition Arrangements Agreement of September 17,
2008, Ralph R Peterson hereby releases and discharges CH2M HILL Companies, Ltd.
and its affiliated companies and subsidiaries (collectively the “Company”), and
their respective directors, officers, employees, agents, representatives,
benefit plans and administrators, successors and assigns from any and all
claims, obligations, and liabilities, whether known or unknown, at law or in
equity, arising out of the Executive’s employment with the Company and the
termination thereof, except for the compensation and benefits and those matters
reserved from release in the Transition Arrangements Agreement. Except for the
compensation and benefits and those matters reserved from release in the
Transition Arrangement Agreement this Release is to be broadly construed so as
to resolve all other pending or potential disputes including, but without
limiting the generality of the foregoing, any and all claims under the Age
Discrimination in Employment Act, as amended by the Older Workers Benefit
Protection Act of 1990, Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act, the Employee Retirement Income Security Act of
1974, the Equal Pay Act, the Family and Medical Leave Act, the discrimination
and wage payment laws of the State of Colorado, and any other statute,
regulation, or ordinance, and any and all claims based upon alleged wrongful or
retaliatory discharge, negligence, intentional infliction of emotional
distress, defamation, invasion of privacy, other torts, harassment, employment
discrimination or breach of contract (express or implied). Notwithstanding the
foregoing, the Executive does not waive any rights the Executive may have to
enforce the terms of the Transition Arrangements Agreement or those matters
reserved from release in said agreement, to benefits available after
termination under any Company-sponsored employee benefit plan, to insurance
protection and/or indemnification for actions taken by the Executive while an
employee, officer and/or director of the Company or to make any claims for
workers’ compensation.

 

The Executive acknowledges and agrees that:

 

(a)           The Executive has read
and understands this Release in its entirety;

 

(b)           The Executive has been advised
in writing to consult with an attorney concerning this Release before signing
it. This subparagraph constitutes such written advice;

 

(c)           Nothing contained in
this Release waives any claim that may arise after the date of its execution;

 

(d)           This Agreement is deemed to have been drafted jointly by the Parties
and any uncertainty or ambiguity shall not be construed for or against any
party based upon attribution of drafting to any party;

 

(f)            As a senior executive and a sophisticated
financially savvy party, the Executive acknowledges that he reviewed this
Agreement and understands its terms and conditions; and

 

14

 

(e)   The Executive executes
this Agreement knowingly and voluntarily, without duress of any kind, and after
having given the matter full and careful consideration.

 

 

	
  The Executive

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Ralph R. Peterson

  	
   

  
	
   

  	
  Ralph R. Peterson

  
	
   

  
	
   

  
	
  Date: 

  	
  September 17, 2008

  	
   

  
	
   

  	
   

  
						

 

15Exhibit 10.2

 

EXECUTIVE CHANGE OF CONTROL AGREEMENT

 

THIS EXECUTIVE CHANGE OF
CONTROL AGREEMENT is executed to be effective as of the 1st day of July, 2008 (“Effective Date”), by and between CH2M HILL Companies,
Ltd., an Oregon corporation (“CH2M HILL”), and Robert G. Card (“Executive”).

 

RECITALS

 

A.                                 The Board of
Directors of CH2M HILL considers the establishment and maintenance of a sound
and vital management team to be essential to protecting and enhancing the best
interests of CH2M HILL and its stockholders; and

 

B.                                   The Board of
Directors recognizes that the possibility of a change in control may arise and
that such possibility, and the uncertainty and questions which it may raise
among senior management, may result in the departure or distraction of senior
management personnel to the detriment of CH2M HILL and its stockholders; and

 

C.                                   Executive
currently serves as an officer or director of CH2M HILL or one of its
subsidiaries; and

 

D.                                  The Board of
Directors has determined that it is in the best interests of CH2M HILL and its
stockholders to secure Executive’s continued services and to ensure Executive’s
continued and undivided dedication to duties in the event of any threat of or
occurrence of events that could lead to a change in control of CH2M HILL, without
being influenced by the Executive’s uncertainty of his/her own situation; and

 

E.                                    The Board of
Directors has authorized the undersigned to enter into this Agreement on behalf
of CH2M HILL.

 

For and in consideration of
the premises and the mutual covenants and agreements herein contained, CH2M
HILL and Executive hereby agree as follows.

 

AGREEMENT

 

Article 1.  Definitions

 

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

 

1.1          “Board” means
the Board of Directors of CH2M HILL.

 

1.2          “Cause” means:

 

a.                                     A material
breach by Executive of his/her duties and responsibilities (other than as a
result of incapacity due to physical or mental illness) which is (i) demonstrably
willful, continued and deliberate on Executive’s part, or (ii) committed
in bad faith and without reasonable belief that such breach is in the best
interests of CH2M HILL; or (iii) a willful failure to follow the lawful
and reasonable directions of the Board, that remain uncured five (5) business
days following the Board’s provision of written notice regarding such failure
to the Executive.  For purposes of clause
(a)(ii), any act, 

 

 

or failure to act, based
upon authority given pursuant to a resolution duly adopted by the Board or
based upon the advice of counsel for CH2M HILL shall be conclusively presumed
to be done, or omitted to be done, by Executive in good faith and in the best
interests of CH2M HILL; or

 

b.                                    The Executive’s
conviction of, or plea of nolo contendere
to, a felony involving willful misconduct which is materially and demonstrably
injurious to CH2M HILL.

 

c.                                     “Cause” shall
not exist unless and until CH2M HILL has delivered to Executive a copy of a
resolution duly adopted by three-quarters (3/4) of the entire Board at a meeting
of the Board called and held for such purpose (after thirty (30) calendar days’
notice to Executive and an opportunity for 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 clause (a) or (b) above has occurred and
specifying the particulars thereof in detail. 
CH2M HILL must first notify Executive of any event believed to
constitute Cause within thirty (30) calendar days following CH2M HILL’s
knowledge of its existence or such event shall not constitute “Cause” under
this Agreement.

 

1.3                               “Change of Control Event” or “COC”
means the occurrence of any one of the following events:

 

a.                                     Any one person, or more than one person acting as a group, acquires
ownership of stock of CH2M HILL that, together with stock held by such person
or group, constitutes more than 50% of the total Fair Market Value of CH2M HILL
stock.  However, if any one person or
more than one person acting as a group, owns more than 50% of the total Fair
Market Value of CH2M HILL stock, the acquisition of additional stock by the
same person or persons is not considered to cause a change in the ownership of
CH2M HILL (or to cause a change in the effective control of CH2M HILL).

 

b.                                    There is a change in the effective control of CH2M HILL.  A change in the effective control of CH2M
HILL occurs on the date that either:

 

(i)                  Any one person, or more than one person acting as a group, acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of CH2M HILL that
represents 30% or more of the total voting power of CH2M HILL stock; or

 

(ii)               a majority of members of CH2M HILL ‘s board of directors is replaced during
any 12-month period by directors whose appointment or election is not endorsed
by a majority of the members of CH2M HILL ‘s board of directors prior to the
date of the appointment or election.

 

c.                                     Any one person, or more than one person acting as a group, acquires
ownership of all or substantially all of the assets of CH2M HILL.

 

d.                                    The stockholders of CH2M HILL approve a plan of liquidation or dissolution
of CH2M HILL and such transaction is consummated.

 

 

For purposes of the definition in this Section 1.3
Persons Acting as a Group shall have the following meaning: Persons will not be
considered to be acting as a group solely because they purchased stock of CH2M
HILL at the same time, or as a result of the same public offering.  However, persons will be considered to be acting
as a group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business
transaction with the corporation.  If a
person, including an entity, owns stock in both corporations that enter into a
merger, consolidation, purchase or acquisition of stock, or similar
transaction, such shareholder is considered to be acting as a group with other
shareholders in a corporation prior to the transaction giving rise to the
change and not with respect to the ownership interest in the other corporation.

 

For the avoidance of doubt, this Section shall be
interpreted in accordance with Treasury guidance for the definition of Change
in Control under Section 409A of the Code (“Section 409A”).

 

e.                                     Termination Ahead of COC.   Notwithstanding
anything in this Agreement to the contrary, if Executive’s employment is
terminated (actually or pursuant to a Constructive Termination as described in
section 1.8 below) prior to a Change of Control Event, and Executive reasonably
demonstrates that such termination was at the request or suggestion of a third
party who has indicated an intention or taken steps reasonably calculated to
effect a Change of Control Event and a Change of Control Event involving such
third party occurs, then for all purposes of this Agreement, the date of a
Change of Control Event shall mean the date immediately prior to the date of
such termination of employment.

 

1.4                               “COC Period” means the period of time
beginning with a Change of Control Event and ending two (2) years
following such Change of Control Event.

 

1.5                               “Code” means the United States Internal
Revenue Code of 1986, as amended.

 

1.6                                 “Date of Termination” means:

 

a.                                     The effective date on which Executive’s employment by CH2M HILL or successor
terminates as specified in a written notice to the other by CH2M HILL,
successor, or Executive, as the case may be, delivered pursuant to section 9.7,
or

 

b.                                    If Executive’s employment with CH2M HILL or successor terminates by reason
of death, the date of death of Executive, or

 

c.                                     In case of Constructive Termination, the date on which CH2M HILL or
successor notifies the Executive of the action that constitutes Constructive
Termination (section 1.8).

 

d.                                      A Date of Termination shall not occur unless the Executive Separates from
Service with the Company.

 

1.7                               “ELTI” means the incentive offered under
the Executive Officers Long Term Incentive Plan or similar incentive that may
replace ELTI that provides performance-based 

 

 

compensation to select senior executive officers and ensures full deductibility of
benefits paid under the Plan as performance-based compensation under Code §162(m).

 

1.8                               “Good Reason” or “Constructive
Termination” means, without Executive’s express written consent, the
occurrence of any of the following after a Change of Control Event or as
provided in section 1.3(e):

 

a.                                     Change in Responsibilities:

 

(i)                                    the assignment to Executive of any duties or responsibilities inconsistent
in any material adverse respect with Executive’s position(s), duties,
responsibilities or status immediately prior to such Change of Control Event
(including any diminution of such duties or responsibilities); or

 

(ii)                                 a material adverse change in
Executive’s reporting responsibilities, titles or offices with CH2M HILL or
successor as in effect immediately prior to such Change of Control Event.

 

b.                                    Change in Compensation.  Any material reduction by CH2M HILL or
successor in Executive’s total compensation package, including any material
adverse change in the annual salary, the incentive bonus ranges and targets, or
the timing of payment of same as compared to the compensation package in effect
immediately prior to such Change of Control Event.

 

c.                                       Change in Location.    Any requirement of CH2M HILL or successor that Executive:

 

(i)                                    be based anywhere more than
twenty-five (25) miles from the facility where Executive is located at the time
of the Change of Control Event; or

 

(ii)                                 travel on CH2M
HILL or successor’s business to an extent substantially greater than the travel
obligations of Executive immediately prior to such Change of Control Event.

 

d.                                      Change in Benefits:

 

(i)                                   the failure of CH2M HILL or successor to continue in effect any employee
benefit and fringe benefit plans and policies or deferred compensation plans in
which Executive is participating immediately prior to such Change of Control
Event, unless Executive is permitted to participate in other plans
providing Executive with substantially comparable benefits; or

 

(ii)                                the taking of any action by CH2M HILL or successor which would adversely
affect Executive’s prior participation in or reduce Executive’s accrued
benefits under any employee benefit and fringe plans or deferred compensation
plans in which Executive is participating immediately prior to such Change of
Control Event; or

 

(iii)                             the failure of CH2M HILL or
successor to provide Executive and Executive’s dependents welfare benefits that
are substantially comparable 

 

 

to the benefits available to them immediately prior to such Change of Control
Event at a substantially comparable cost to Executive; or

 

(iv)                            the failure of CH2M HILL or successor to provide Executive with paid
vacation at levels in effect for Executive immediately prior to such Change of
Control Event or as the same may be increased from time to time thereafter.

 

e.                                       Office and Support Staff.  A material negative change in the office or offices, personal secretarial
and other assistance, provided to Executive compared to the most favorable of
the foregoing provided to the Executive by CH2M HILL at any time during the
120-day period immediately preceding the Change of Control Event or, if more
favorable to the Executive, as provided generally at any time thereafter with
respect to other peer executives of CH2M HILL or successor.

 

f.                                       Assumption of this Agreement.  The failure of CH2M HILL to assign and obtain the assumption of this
Agreement from any successor as contemplated in section 3.5 below.

 

g.                                    Inadvertent Action.  An action taken in good faith and which is
remedied by CH2M HILL or successor within thirty (30) calendar days after
receipt of notice thereof given by Executive shall not constitute Good Reason
or Constructive Termination under this Agreement.  Executive must provide notice of termination
of employment within thirty (30) calendar days of Executive’s knowledge of an
event constituting “Good Reason” or such event shall not constitute Good Reason
or Constructive Termination under this Agreement.   To constitute Good Reason or Constructive
Termination the Executive must terminate employment within 2 years from the
date of the initial occurrence of an event described in Section 1.8.

 

1.9                               “ISVEU” means stock value equivalent
units offered under the CH2M HILL Companies, Ltd. International Deferred
Compensation Plan.

 

1.10                         “LTI” means the incentive offered under
the Long-Term Incentive Plan to selected senior executives of CH2M HILL or
similar bonus that may replace LTI at a future date.  In current form this incentive bonus is tied
to specific three-year performance targets with payments made during the year
immediately following the year in which the target performance period
terminated.

 

1.11                         “Phantom Stock” means contractual rights
to amounts equal to value of CH2M HILL Stock over time provided to selected
employees pursuant to CH2M HILL Phantom Stock Plan, as amended from time to
time, and any successor plan.

 

1.12                         “SAR”  means
contractual rights to amounts equal in value to CH2M HILL Stock appreciation
over time provided to selected employees pursuant to CH2M HILL Stock Appreciation
Rights Plan, as amended from time to time, and any successor plan.

 

1.13                         “Separation from Service” means a
termination of services provided by the Executive whether voluntarily or
involuntarily, other than by reason of death or disability, as determined by
CH2M HILL in accordance with Treas. Reg. §1.409A-1(h).  In determining whether the Executive has
experienced a Separation from Service, the following 

 

 

provisions shall apply:

 

A Separation from Service shall occur when the Executive has
experienced a termination of employment with CH2M HILL.  The Executive shall be considered to have
experienced a termination of employment when the facts and circumstances
indicate that the Executive and CH2M HILL reasonably anticipate that either (i) no
further services will be performed for CH2M HILL after a certain date, or (ii) that
the level of bona fide services the Executive will perform for CH2M HILL after
such date (whether as an employee or as an independent contractor) will
permanently decrease to no more than 20% of the average level of bona fide
services performed by the Executive (whether as an employee or an independent
contractor) over the immediately preceding 36-month period (or the full period
of services to the Executive if the Executive has been providing services to
CH2M HILL less than 36 months).

 

1.14                         “Specified Employee”  shall mean any Executive who is determined to be a “key employee”
(generally the top 50 ranked employees by compensation for the prior calendar
year) for the applicable period, as determined annually by CH2M HILL in
accordance with Treas. Reg. §1.409A-1(i).

 

1.15                         “STI” means the incentive offered under
the Short-Term Incentive Plan to selected CH2M HILL employees on an annual
basis or similar bonus that may replace STI at a future date.  STI bonus is historically paid in the first
quarter of the year immediately following the year with respect to which it is
awarded.

 

1.16                         “Stock” means CH2M HILL common stock.

 

1.17                         “Stock Options” means options to purchase
CH2M HILL stock at an agreed strike price granted from time to time to selected
CH2M HILL employees pursuant to CH2M HILL Stock Option Plans.

 

1.18                         “Subsidiary” means any corporation or
other entity in which CH2M HILL has a direct or indirect ownership interest of
fifty percent (50%) or more of the total combined voting power of the
then-outstanding securities of such corporation or other entity entitled to
vote generally in the election of directors or in which CH2M HILL has the right
to receive fifty percent (50%) or more of the distribution of profits or of the
assets on liquidation or dissolution.

 

1.19                         “SVEUs” means stock value equivalent
units offered under the CH2M HILL Pre-Tax and Post-Tax Deferred Compensation
Plans.

 

1.20                         “VAR” means a Value Appreciation Right
bonus offered to a selected group of senior management and technologists in the
Communications Group of CH2M HILL pursuant to the CH2M HILL Communications
Group Value Appreciation Incentive Plan, as amended from time to time, and any
successor plan.

 

1.21                         “Window Period” means the period of at
least ten (10) business days commencing on the business day next following
signing of the agreement or plan of organization which will result in a COC and
during which the Executive will be required to make certain elections described
in this Agreement.

 

 

Article 2.  Obligations of Executive

 

2.1                               Continuing Employment.  Executive agrees that in the event of any
threat or occurrence of or negotiation or other action that could reasonably
lead to, or create the possibility of a Change of Control Event, Executive
shall not voluntarily leave the employ of CH2M HILL without Good Reason for a
period of thirty (30) calendar days following the Change of Control Event
unless CH2M HILL or successor specifically agrees otherwise

 

2.2                               Assistance with Transition.  The Executive agrees that in the event of
termination (by the Executive voluntarily or by CH2M HILL or successor
subsequent to the Change of Control Event, but not in case of a Constructive
Termination) he/she shall act diligently to assist CH2M HILL or successor with
transition of his/her responsibilities to another executive designated by CH2M
HILL or successor.  Such assistance
obligation shall not extend beyond thirty (30) calendar days after the Date of
Termination and shall be limited in scope to tasks and consultations necessary
for orderly transition and shall not unduly burden the Executive or interfere
in any way whatsoever in his/her pursuits of alternative employment.  All expenses of the Executive related to such
assistance shall be promptly reimbursed by CH2M HILL or successor.

 

2.3                               Confidentiality.  Executive agrees to hold in a fiduciary
capacity for the benefit of CH2M HILL all secrets or confidential information,
knowledge or data relating to CH2M HILL, any of its Subsidiaries and their
respective businesses, which shall have been obtained by the Executive during
the Executive’s employment by CH2M HILL or its Subsidiaries, and which shall
not be or become public knowledge (other than by acts by the Executive or representatives
of the Executive in violation of this Agreement).  After termination of the Executive’s
employment with CH2M HILL, the Executive shall not, without the prior written
consent of CH2M HILL or successor or as may otherwise be required by law or legal
process, communicate or divulge any such information, knowledge or data to
anyone other than CH2M HILL or successor and those designated by it.

 

2.4                               In no event shall an asserted violation of the provisions of sections 2.2
or 2.3 constitute a basis for deferring or withholding any amounts otherwise
payable to the Executive under this Agreement.

 

Article 3.  Obligations of CH2M HILL
and/or Successor

 

3.1                               Payment on COC.  The “COC Year” is
defined for this article as the fiscal year in which a Change of Control Event
occurs.  At closing of the transaction
resulting in the Change of Control Event or, if there is no such closing,
within thirty (30) calendar days of the Change of Control Event becoming
effective, CH2M HILL or successor shall pay to the Executive in immediately
available funds, a lump sum cash amount equal to the sum of:

 

a.                                     Prior Year STI.  If not yet paid, the
Executive’s annual STI bonus due for the fiscal year immediately preceding the
COC Year.  To the extent that the
STI amount due for such prior fiscal year has not yet been determined by the
Board, the amount shall be deemed to be the target STI bonus designated for the
Executive for that fiscal year; and

 

b.                                    Prior Year LTI.  If not yet paid, the Executive’s LTI bonus
due for the LTI period that terminates in the fiscal year immediately preceding
the COC Year, calculated as provided in the LTI Plan; and

 

 

c.                                     Prior Year ELTI.  If not yet paid, the Executive’s ELTI bonus due for the ELTI period that
terminates in the fiscal year immediately preceding the COC year, calculated as
provided in the ELTI Plan; and

 

d.                                    Pro-rata Current Year STI.  A pro rata portion, as of the date of COC, of
Executive’s annual STI bonus in an amount at least equal to:

 

(i)                                   the Executive’s target STI
bonus for the COC Year; multiplied by

 

(ii)                                a fraction, the numerator of which is the number of days in the COC Year
through the date when COC becomes effective and the denominator of which is
three hundred sixty-five (365).

 

e.                                     Pro-rata Current LTI.  A pro-rata portion, as of the date of COC, of
Executive’s LTI bonus payouts for open bonus periods that include the COC Year,
calculated as provided in the LTI Plan; and

 

f.                                       Pro-rata Current ELTI.   A pro-rata portion, as of the date of COC, of Executive’s ELTI bonus
payouts for open bonus periods that include the COC year, calculated as
provided in the ELTI Plan; and

 

g.                                    Deferred Compensation.  Pursuant to a written election of the
Executive during the Window Period selecting such payment, any compensation
previously deferred by Executive other than pursuant to a tax-qualified plan
(together with any interest and earnings thereon) and any accrued vacation, in
each case to the extent not yet paid for all amounts deferred or accrued prior
to October 3, 2004, and the earnings credited thereto.

 

If no
amount is paid with respect to this paragraph (g) in connection with the
COC, then the deferred compensation described in this paragraph (g) shall
continue to be administered in accordance with the terms of the applicable
deferred compensation plans or programs and the existing elections of the
Executive under such plans or programs. 
Unless the Executive agrees otherwise, CH2M HILL or successor shall
establish separate rabbi trusts or a separate structure within its existing
rabbi trusts to fund CH2M HILL’s or successor’s obligations to the Executive
with respect to such unpaid deferred compensation.

 

h.                                    Offsets. 
Any amounts paid under paragraphs (a) through (f) immediately
above shall be a respective offset to any amounts remaining to be paid to the
Executive for the COC Year, in the case of the STI bonus, and for the open
bonus periods that include the COC Year, in the case of the LTI bonus and the
ELTI bonus.  In no event shall the
Executive be required to return all or any portion of payments under paragraphs
(a) through (f) above.

 

3.2                               Treatment of Stock Options, SARs, VARs, Stock and SVEU Holdings.  At closing
of the transaction resulting in the Change of Control Event or, if there is no
such closing, within thirty (30) calendar days of Change of Control Event
becoming effective, CH2M HILL or successor shall cause the following:

 

a.                                     Vesting. 
With respect to any Stock Options, SARs, VARs, Stock, Phantom Stock,
SVEUs, ISVEUs and instruments tied directly or indirectly to the value of
Stock, held by the Executive on the date COC becomes effective, (i) cancellation
of all 

 

 

restrictions
on awards of restricted Stock, Phantom Stock or ISVEUs and (ii) full and
immediate vesting (to the extent not already vested) of, and application of
immediate exerciseability or unrestricted redemption rights with respect to,
all outstanding Stock Options, SARs, VARs, SVEUs, ISVEUs and other stock-based
awards.  The period for exercising Stock
Options shall be extended by ninety (90) calendar days following the date when
COC becomes effective.

 

b.                                      Redemption. 
To the extent such awards are not subject to Section 409A, the redemption of all Phantom Stock, SARs, SVEUs and ISVEUs
of the Executive at the greater of (i) the price per share of Stock which
was paid to secure the COC or (ii) the Stock price in effect immediately
prior to the Change of Control Event.

 

c.                                       Cashout. 
Provided that at the time immediately prior to COC, Stock does not have
a public market and continues to be traded through a CH2M HILL internal market
or equivalent, CH2M HILL or successor shall cash out the Executive’s Stock and
Stock Option holdings at the greater of (i) the price per share of Stock
which was paid to secure the COC or (ii) the Stock price in effect
immediately prior to the Change of Control Event.

 

3.3                                 Payment on COC Termination.  If during the COC Period the Executive
terminates employment with CH2M HILL for Good Reason, or if CH2M HILL or
successor terminates the employment of Executive (actually or through
Constructive Termination) other than

 

(w)                             for Cause; or

 

(x)                               as a result of Executive’s
death; or

 

(y)                               due to Executive’s absence from Executive’s duties with CH2M HILL or
successor on a full-time basis for at least one hundred eighty (180)
consecutive days as a result of Executive’s incapacity due to physical or
mental illness; or

 

(z)                                 as a result of Executive’s mandatory retirement (not including any
mandatory early retirement) in accordance with CH2M HILL’s or successor’s
retirement policy generally applicable to its salaried employees of
responsibilities and rank similar to the Executive’s as in effect immediately
prior to the Change of Control Event, or in accordance with any retirement
arrangement established with respect to Executive with Executive’s written
consent;

 

then, CH2M HILL or successor shall
pay to Executive within thirty (30) calendar days following the Date of Termination,
as compensation for services rendered to CH2M HILL and/or successor, in
immediately available funds:

 

a.                                     Salary. 
Executive’s base salary, accrued vacation, and any accrued compensation
previously deferred by Executive other than pursuant to a tax-qualified plan
(together with any interest and earnings thereon), through the Date of
Termination, in each case to the extent not yet paid; plus

 

 

b.                                    Severance. 
A lump-sum severance amount equal to 2.99 times:

 

(i)                                    Executive’s highest annual rate of base salary in effect during the twelve
(12) month period prior to the Date of Termination, plus

 

(ii)                                 Executive’s target STI bonus for the fiscal year in which Executive’s Date
of Termination occurs.

 

c.                                     Continuation of Benefits.  In addition to severance payment listed
above, CH2M HILL or successor shall continue to provide, for a period equal to
the period the Executive would be entitled to continuation coverage under a
group health plan of CH2M HILL under Code §4980B following the Date of
Termination but in no event after Executive’s attainment of age sixty-five
(65), Executive (and Executive’s dependents if applicable) with the same level
of medical, dental, benefits and through the end of the last day of the second
taxable year of CH2M HILL following the Date of Terminations for accident,
disability, life insurance and any other similar welfare benefits in place as
of the Date of Termination upon substantially the same terms and conditions
(including contributions required by the Executive for such benefits) as
existed immediately prior to Executive’s Date of Termination (or, if more
favorable to Executive, as such benefits and terms and conditions existed
immediately prior to the COC); provided that, if Executive cannot continue to
participate in CH2M HILL’s or successor plans providing such benefits, CH2M
HILL or successor shall otherwise provide such benefits on the same after-tax
basis as if continued participation had been permitted.  Notwithstanding the foregoing, in the event
Executive becomes employed with another employer and becomes eligible to
receive welfare benefits from such employer, the welfare benefits described
herein shall be secondary to such benefits during the period of Executive’s
eligibility, but only to the extent that CH2M HILL or successor reimburses
Executive for any increased cost and provides any additional benefits necessary
to give Executive the benefits provided hereunder.

 

d.                                    Vesting in Retirement Plans.  On the Date of Termination, all amounts
contributed by CH2M HILL for the account of the Executive pursuant to CH2M HILL’s
retirement plans, including the Defined Contribution Pension Plan, Deferred
Compensation Retirement Plan, Employee Stock Plan and Tax-Deferred Savings Plan
(401(k)), or successor’s equivalents, shall fully vest, and the Executive will
be paid in cash an amount equal to all CH2M HILL or successor contributions
that would have been made by CH2M HILL or successor during the entire COC
Period assuming the company paid the contributions at rates comparable to those
in the two years preceding the Date of Termination; provided that if full
vesting in the CH2M HILL retirement plans would violate applicable provisions
of the plans or the Code, the Executive will be paid in cash an amount equal to
the amount forfeited by the Executive in such retirement plans.

 

e.                                     Cashout.  Amounts due from the cashout or redemption of all Executive’s Stock, Stock
Options, Phantom Stock, SARs, SVEUs, and ISVEUs if any, not otherwise cashed
out or redeemed pursuant to sections 3.2(b) and (c) and/or obtained
thereafter, at the price per share of Stock which was paid to secure the COC.

 

f.                                         Section 409A.  Anything in this
Agreement to the contrary notwithstanding, if (A) 

 

 

on the date of termination of Executive’s employment with
CH2M HILL or a subsidiary, any of CH2M HILL’s stock is publicly traded on an
established securities market or otherwise, (B) the Executive is
determined to be  a Specified Employee”, (C) the
payments exceed the amounts permitted to be paid pursuant to Treasury Regulations
section 1.409A-1(b)(9)(iii) and (D) such delay is required to avoid
the imposition of the tax set forth in Section 409A as a result of such
termination, the Executive would receive any payment that, absent the
application of this Section 3(f), would be subject to interest and
additional tax imposed pursuant to Section 409A as a result of the
application of Section 409A, then no such payment shall be payable prior
to the date that is the earliest of (1) 6 months and 1 day after the
Executive’s termination date, (2) the Executive’s death or (3) such
other date as will cause such payment not to be subject to such interest and
additional tax (with a catch-up payment equal to the sum of all amounts that
have been delayed to be made as of the date of the initial payment).  It is the intention of CH2M HILL and the
Executive that payments or benefits payable under this Agreement not be subject
to the additional tax imposed pursuant to Section 409A.  To the extent such potential payments or
benefits could become subject to such Section, CH2M HILL and the Executive
shall cooperate to structure the payments with the goal of giving the Executive
the economic benefits described herein in a manner that does not result in such
tax being imposed.

 

3.4                               Greatest Net Benefit.  Anything in this Agreement to the contrary notwithstanding, in the event
that the Executive determines (at his/her expense) that the receipt of any
payments hereunder would subject the Executive to tax under Code §4999 or a
successor provision, CH2M HILL or successor shall reduce the payment due to the
Executive hereunder to the extent necessary, if at all, so that the net (after
tax) benefit of the payments to the Executive is maximized.  In order to comply with Section 409A,
the reduction or elimination will be performed in the order in which each
dollar of value subject to an Award reduces the parachute payment for purposes
of  Code §280G  to the greatest extent.

 

3.5                               Assignment of Agreement.  Concurrently with any Change of Control, CH2M
HILL shall cause any successor or transferee unconditionally to assume, by
written instrument delivered to Executive (or his beneficiary or estate), all
of the obligations of CH2M HILL hereunder. 
Failure of CH2M HILL to obtain such assumption prior to the effectiveness
of any such Change of Control shall be a breach of this Agreement and shall
constitute Good Reason entitling the Executive to resign, within thirty (30)
calendar days of consummation of such Change of Control, and receive
compensation hereunder.

 

Article 4.  Withholding Taxes

 

CH2M HILL
or successor may withhold from all payments due to Executive (or his
beneficiary or estate) hereunder all taxes which, by applicable federal, state,
local or other law, CH2M HILL or successor is required to withhold therefrom.

 

Article 5.  Term and Termination

 

5.1                                 a.             This Agreement replaces and
supercedes all COC agreements the Executive holds with CH2M HILL as of the
Effective Date.  Execution of this
Agreement 

 

 

constitutes notice and acceptance of termination (including any requisite waivers of
notice periods for such termination) of all outstanding COC agreements.

 

b.                                    Term. 
This Agreement shall be effective as of the Effective Date and shall
continue in effect for twelve (12) months thereafter.  The Agreement shall automatically renew for
an indefinite number of twelve (12) months consecutive terms unless and
until CH2M HILL provides the Executive with written notice of cancellation
of the Agreement at least thirty (30) calendar days prior to such automatic renewal.  Notwithstanding the delivery of any such
cancellation notice, however, this Agreement shall continue in effect until the
end of the COC Period, if the COC shall have occurred during the term of this
Agreement or within six months following the termination date stated in the
cancellation notice.

 

5.2           Termination. 
This Agreement shall terminate upon :

 

a.                                     Termination prior to COC.  Termination of Executive’s employment with CH2M HILL prior to a Change of
Control Event (except as otherwise provided in section 1.3(d) above);

 

b.                                    Termination after COC.

 

(i)                                   Executive’s termination of his/her employment with CH2M HILL for any reason
except for Good Reason;

 

(ii)                                Termination of Executive employment by CH2M HILL or successor for Cause;

 

(iii)                             Termination of Executive employment as a result of his/her death;

 

(iv)                            Absence, as outlined in section 3.3; or

 

(v)                               Retirement, as outlined in section 3.3;

 

c.                                     The end of the COC Period; or

 

d.                                    Cancellation in accordance with section 5.1.

 

Article 6.  Agreement Survives Changes
of Control

 

6.1                               This Agreement shall not be terminated by any Change of Control.  In the event of any Change of Control, the
provisions of this Agreement shall be binding upon the surviving or resulting
corporation.  If the person or entity to
which such assets are transferred has not agreed to be bound by the provisions
of this Agreement, this Agreement will continue to be binding upon CH2M HILL.

 

6.2                               This Agreement shall inure to the benefit of and be enforceable by
Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.  If Executive shall die while any amounts
would be payable to Executive hereunder had 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 Executive to receive such amounts or, if no person is so appointed, to
Executive’s estate.

 

 

Article 7.  Full Settlement

 

CH2M HILL’s
or successor’s obligation to make payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall be in lieu and in full
settlement of all other separation payments to Executive under any previous
severance or employment agreement between the Executive and CH2M HILL or a
successor, and, with respect to amounts payable in connection with a
termination of employment within the COC Period, such agreements shall be null
and void.  In addition, payments made
under Section 3.1 and 3.2 shall be in full settlement of the compensation
and benefit obligations to which the payments relate under the plan, program or
agreement under which such promises, awards or grants were made.  As a condition of payment of amounts due the
Executive under this Agreement in connection with a termination of employment,  the Executive shall be required to execute a Release and
Settlement Agreement  within 30 days
of his/her termination of employment, in the form
reasonably determined by CH2M HILL or successor, in which the Executive shall
acknowledge satisfaction of CH2M HILL’s or successor’s obligations under this
Agreement and such programs, plans, and agreements under which such promises,
awards or grants were made.

 

Article 8.  Employment With Subsidiaries

 

Employment
with CH2M HILL for purposes of this Agreement shall include employment with any
Subsidiary or successors in interest of CH2M HILL.

 

Article 9.  Miscellaneous

 

9.1                               Mitigation. 
In no event shall Executive be obligated to seek other employment or
take other action by way of mitigation of the amounts payable to Executive
under any of the provisions of this Agreement and, except as provided in
section 3.4, such amounts shall not be reduced whether or not Executive obtains
other employment.

 

9.2                               Setoff. 
CH2M HILL’s or successor’s obligations hereunder shall not be affected
by any setoff, counterclaim, recoupment, defense or other claim, right or
action that CH2M HILL or successor may have against Executive or others.

 

9.3                               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 Colorado 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.

 

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

 

9.5                               Indemnification and Reimbursement of Expenses.  If any contest or dispute shall
arise under this Agreement involving termination of Executive’s employment with
CH2M HILL or successor or involving the failure or refusal of CH2M HILL or
successor to perform fully in accordance with the terms hereof, CH2M HILL or
successor shall, to the fullest extent permitted by law, indemnify and
reimburse Executive for all legal fees and expenses incurred by Executive in
connection with such contest or dispute (regardless of the lack of finality or
the result thereof), within thirty (30) calendar days of receipt of 

 

 

evidence thereof, together with interest in an amount equal to the prime rate
published in the Wall Street Journal, but in no event higher than the
maximum legal rate permissible under applicable law, such interest to accrue
from the end of such 30 day period through the date of payment thereof.  To the extent that a final order subject to
no further appeal determines that all or any part of the position taken by
Executive was frivolous or advanced in bad faith, the court shall order the
Executive to repay an amount to CH2M HILL or its successor as the court shall
equitably determine.

 

9.6                               Waivers. 
No provision of this Agreement may be modified or waived unless such
modification or waiver is agreed to in writing and signed by Executive and by a
duly authorized officer of CH2M HILL or successor.  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 at any prior or subsequent time. 
Failure by Executive or CH2M HILL or successor to insist upon strict
compliance with any provision of this Agreement or to assert any right
Executive or CH2M HILL or successor may have hereunder, including without
limitation, the right of Executive to terminate employment for Good Reason,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

 

9.7.                            Notice.

 

a.                                     For purposes of this Agreement, all notices and other communications
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given when delivered or five (5) business days after deposit in
the U.S.  mail,
certified and return receipt requested, postage prepaid, addressed as follows:

 

If to the
Executive:                                                                                          Robert G. Card

7 Mountain Willow Drive

Littleton, CO 80127

 

If to CH2M
HILL:                                                                                            CH2M HILL Companies, Ltd.  or successor

9191 South Jamaica Street

Englewood, CO   80112

Attn: Corporate Secretary

 

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.

 

b.                                    A written notice of Executive’s Date of Termination by CH2M HILL or
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 Executive’s employment under the provision so indicated; and

 

(iii)                              specify the
termination date (which date shall be not less than fifteen (15) nor more than
sixty (60) calendar days after the giving of such notice).

 

 

The failure by Executive or CH2M
HILL or successor 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
Executive or CH2M HILL or successor hereunder or preclude Executive or CH2M HILL
or successor from asserting such fact or circumstance in enforcing Executive’s
or CH2M HILL’s or successor’s rights hereunder.

 

9.8.                            Section 409A.  With respect to payments under
this Agreement, for purposes of Section 409A, each severance payment and reimbursement
payment will be considered one of a series of separate payments.

 

IN WITNESS
WHEREOF, CH2M HILL has caused this Agreement to be executed by a duly
authorized officer of CH2M HILL and Executive has executed this Agreement as of
the day and year first above written.

 

 

	
  CH2M HILL COMPANIES, LTD.

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ M. Catherine Santee

  	
   

  	
  /s/ Robert G. Card

  
	
   

  	
  M. Catherine Santee,

  	
   

  	
  Name:  Robert G.
  Card

  
	
   

  	
  Chief Financial Officer and Secretary

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