Document:

Pope Resources

	

Exhibit 10.75   

POPE RESOURCES, A
DELAWARE LIMITED PARTNERSHIP  

RESOLUTIONS OF THE
HUMAN RESOURCE COMMITTEE                                                      
OF THE
BOARD OF DIRECTORS  

RE: REVISED CHANGE IN
CONTROL SEVERANCE AGREEMENTS  

          WHEREAS,
 the Committee deems it advisable at this time to adopt a change in control  severance
program for selected senior executives of the Company and its affiliates; now, therefore,
it is hereby  

          RESOLVED
that the Company be, and the Company hereby is,  authorized to enter into change in
control  severance  agreements (the “New  Agreements”)  with those key executives of the
Company and its  affiliates  that are  specifically  selected and approved from time to
time by the Human  Resources  Committee.  The New  Agreements  shall not  generally  and
 comprehensively  displace the existing  severance  policies  and  practices  of the
Company for and with respect to the  executives  who enter into them,  and the existing
 policies and practices  shall continue to apply in any situation that does not qualify
as a change in control  termination event  according to the terms of the New  Agreements.
 In any  circumstance  in which a terminated  executive is entitled to receive benefits
pursuant to the terms of a New Agreement,  however,  such benefits received by the
terminated executive pursuant to the New Agreement shall be the sole and exclusive
severance benefit to which such terminated  executive shall be entitled,  unless
otherwise provided by further  resolution of this Committee.  Each executive  entering
into an approved  change in control  agreement with the Company shall receive the
following  benefits  should his or her employment  terminate  (other than for cause)
within  eighteen (18) months following certain changes in control or ownership of the
Company:  

	  	• 	Severance
 Payment.  The executive  will be entitled to a cash  severance  payment in an
         aggregate  amount  equal to (i) two (2) times  base  salary  plus (ii) his or
her target          bonus for the fiscal year of the Company in which such termination
occurs.  

	  	• 	Option
 Acceleration.  Each of the executive’s  outstanding  options will  automatically
         accelerate  so  that  each  such  option  will  become  fully  vested  and
  immediately          exercisable for the total number of Units at the time subject to
that option.  

	  	• 	Health
Care  Coverage.  The Company will, at its expense,  provide the executive and his
         or her eligible  dependents  with  continued  health care  coverage  under the
Company’s          medical/dental  plan for up to an additional  eighteen (18) months
 following his or her          termination date.  

	

	

          However,
 the severance payment  otherwise payable to the terminated  executive shall be subject
to reduction to the extent necessary to assure that the total severance  benefits
provided to the terminated  executive will not result in any excess parachute payments
under Internal Revenue Code Section 280G  (determined as if such Section were applicable
to such payments,  notwithstanding the technical inapplicability of such Section to the
severance payment).  

          FURTHER
RESOLVED, that the remaining terms and conditions of the severance benefits
hereby authorized shall be as substantially set forth in the form severance agreement
attached to these resolutions as Exhibit A.   

          FINALLY
RESOLVED that each officer of the Company be, and each such officer hereby is,
authorized and directed, for and on behalf of the Company, to take all action and to
prepare, execute and deliver all documents which such officer deems necessary or
advisable in order to implement the revised change in control severance program
hereby authorized, including (without limitation) the preparation, execution and
delivery of the form severance agreement in such final form as he deems advisable.   

2  

	

April 13, 2004  

Mr. John T. Shea 
Director Business
Development  

Dear John:  

          We
are pleased to inform you that the Board of Directors of Pope MGP,  Inc.,  the General
 Partner of Pope  Resources  (the “Company”),  has recently authorized and approved a
special severance benefit program for you and other key executives.  The purpose of this
letter  agreement is to set forth the terms and  conditions  of your benefit  package and
to explain the  limitations  which will govern the overall value of your benefits.  

          This
 program is intended to be available to selected  executives  who are employed by the
Company or any  affiliate of the Company.  Subsequent  references to the “Company” in
this letter shall be deemed to include  affiliates,  to the extent  required by context,
 when they pertain  directly to your own  employment  relationship,  but  references to
the  “Company”  that do not pertain directly to that employment relationship shall be
deemed to refer exclusively to Pope Resources and not to any affiliate.  

          Your
severance benefits will become payable in the event your employment  terminates
 involuntarily within a specified time period following  certain changes in ownership or
control of the Company.  To understand the full scope of your severance  benefits, you
should  familiarize  yourself with the definitional  provisions of Part One of this
letter  agreement.  The benefits  comprising your  severance  package are  detailed in
Part Two, and the dollar  limitations  on the overall  value of your  benefit  package
are specified in Part Three.  Part Four deals with ancillary  matters  affecting  your
severance  arrangement.  In any  circumstance  in which  severance  benefits become
payable to you pursuant to this letter  agreement,  those benefits will be your sole and
exclusive severance  benefits to be paid to you by the  Company as a result of your
 termination,  and you will not be  entitled to  severance benefits  under any other
policy or program of the  Company,  unless the Board of Directors  shall  specifically
 approve such other severance benefits at that time.  

PART ONE — DEFINITIONS  

          For
purposes of this letter agreement, the following definitions will be in effect:  

          Andrews
Family means Emily T. Andrews, her parents, and Adolphus Andrews, Jr., and their lineal
descendants, any present or former spouse of such persons, any lineal descendants of
such spouses or former spouses, any estate of any of the foregoing persons, any trust
in which the foregoing persons collectively have all of the beneficial interests as
income beneficiaries or remaindermen, and any corporation, partnership, or other
entity in which any one or more of such persons or entities own all of the interests.   

1  

	

          Assets
means all or substantially all of the assets of the Company and its affiliates,
as they shall be held by the Company and its affiliates from time to time, including
the assets of all divisions, segments, and business units in existence at such time.   

          Average
Compensation means the average of your W-2 wages from the Company for the five (5)
calendar years (or such fewer number of calendar years of employment with the Company)
completed immediately prior to the calendar year in which the Change of Control is
effected. Any W-2 wages for a partial year of employment will be annualized, in
accordance with the frequency which such wages are paid during such partial year,
before inclusion in your Average Compensation. If any of your compensation from the
Company during such five (5)-year or shorter period was not included in your W-2
wages for U.S. income tax purposes, either because you were not a U.S. citizen or
resident or because such compensation was excludible from income as foreign earned
income under Code Section 911, then such compensation will nevertheless be included in
your Average Compensation to the same extent as if it were part of your W-2 wages.   

          Base
Salary means the annual rate of base salary in effect for you immediately prior to
the Change in Control or (if greater) the annual rate of base salary in effect at the
time of your Involuntary Termination.   

          Change
in Control means:   

	  	          (i)
     any event or circumstance that results in persons other than Controlling  Persons
 collectively  being In Control of MGP and/or EGP unless,  prior to the  occurrence of
such event or  circumstance,  the Assets shall have been  transferred exclusively to
Controlling Persons and/or to entities of which Controlling Persons collectively are In
Control; or  

	  	          (ii)
    an event or circumstance  that results in MGP and/or EGP collectively  ceasing to act
as the sole General Partners and the Managing  General  Partner of the Company and to
have the sole and exclusive right to direct,  manage,  and conduct the business of the
Company unless,  prior to the occurrence of such event or  circumstance,  the Assets
shall have been transferred exclusively to Controlling Persons and/or to entities of
which Controlling Persons collectively are In Control; or  

	  	          (iii)
   the Transfer of the Assets to any person or persons who are not Controlling  Persons
and/or to any entity or entities of which Controlling Persons collectively are not In
Control; or  

	  	          (iv)
    any  merger  or  consolidation  in which  Controlling  Persons  collectively  are not
In  Control  of the surviving  or  resulting  entity  unless,  prior to the  occurrence
 of such  event or  circumstance,  the  Assets  shall  have been transferred exclusively
to Controlling Persons and/or to entities of which Controlling Persons collectively are
In Control; or  

	

2  

	  	          (v)
     the dissolution  and/or  liquidation of the Company that results in ownership or
control of the Assets by any persons who are not Controlling  Persons and/or by any
entity or entities of which Controlling  Persons  collectively are not In Control.  

	

          Code
means the Internal Revenue Code of 1986, as amended.   

          Controlling
Persons means members of the Andrews Family and members of the Pope Family, collectively.   

          EGP
means Pope EGP, a Delaware corporation and a standby general partner of the Company.   

          Fair
Market Value means, with respect to any Units subject to any of your Options, the
closing selling price per Unit on the date in question, as reported on the Nasdaq
National Market System. If there is no reported sale of Units on such date, then the
closing selling price on the Nasdaq National Market System on the next preceding
day for which there does exists such quotation will be determinative of Fair Market
Value.   

          Health
Care Coverage means the continued health care coverage to which you and your
eligible dependents may become entitled under Part Two of this letter agreement upon
the Involuntary Termination of your employment.   

          In
Control means owning, and having the present and continuing right to exercise control
over, a majority of the voting power of, and right to exercise control over management
of, any entity, which right is not subject to any material limitations,
qualifications, or exceptions (whether temporary or permanent) in excess of those
applicable on the date of this letter agreement to the interests of the Controlling
Persons in MGP and EGP.   

          Involuntary
Termination means the termination of your employment with the Company:   

	  	• 	involuntarily
upon your discharge or dismissal (other than a Termination for Cause), or  

	  	• 	voluntarily
 upon your  resignation  following  (I) a change in your  position  with the
         Company which materially reduces your duties or level of  responsibility,  (II)
a 20% or          more reduction in your level of  compensation  (including  base salary,
 fringe benefits          and target bonus under any incentive  performance  plan) or
(III) a change in your place          of employment  which is more than fifty (50) miles
from your place of  employment  prior          to the Change in  Control,  provided  and
only if such change or  reduction  is effected          without your written concurrence.  

	

          In
no event shall an Involuntary  Termination be deemed to occur should your  employment
 terminate by reason of your death or disability.  

3  

	

          MGP
means Pope MGP, Inc., a Delaware corporation and the Managing General Partner of the
Company.   

          Option
means any option granted to you under the Plan which is outstanding at the time of
the Change in Control or upon your subsequent Involuntary Termination.   

          Option
Parachute Payment means, with respect to any Option, the portion of that Option deemed
to be a parachute payment under Code Section 280G and the Treasury Regulations issued
thereunder. The portion of such Option which is categorized as an Option Parachute
Payment will be calculated in accordance with the valuation provisions established
under Code Section 280G and the applicable Treasury Regulations and will include an
appropriate dollar adjustment to reflect the lapse of your obligation to remain in the
Company’s employ as a condition to the vesting of the accelerated installment. In no
event, however, will the Option Parachute Payment attributable to any Option (or
accelerated installment) exceed the spread (the excess of the Fair Market Value of the
accelerated option Units over the option exercise price payable for those Units) existing
at the time of acceleration.   

          Other
Parachute Payment means any payment in the nature of compensation (other than the
benefits to which you become entitled under Part Two of this letter agreement)
which are made to you in connection with the Change in Control and which
accordingly qualify as parachute payments within the meaning of Code Section
280G(b)(2) and the Treasury Regulations issued thereunder. Your Other Parachute
Payment will include (without limitation) the Present Value, measured as of the
Change in Control, of the aggregate Option Parachute Payment attributable to your Options
(if any).   

          Partnership
Agreement means the Amended and Restated Limited Partnership Agreement of Pope
Resources, A Delaware Limited Partnership, as amended through the date of this letter
agreement and as hereafter amended or restated at any time.   

          Plan
means (i) the Company’s Unit Option Plan adopted in 1997, as amended or restated
from time to time, and (ii) any successor equity incentive plan subsequently
implemented by the Company.   

          Pope
Family means the lineal descendants or spouses of George A. Pope, Jr. and Harriet
Brownell, any present or former spouse of such persons, any lineal descendants of such
spouses or former spouses, any estate of any of the foregoing persons, any trust in
which the foregoing persons collectively have all of the beneficial interests as
income beneficiaries or remaindermen, and any corporation, partnership, or other entity
in which any one or more of such persons or entities own all of the interests.   

          Present
Value means the value, determined as of the date of the Change in Control, of any
payment in the nature of compensation to which you become entitled in connection with
the Change in Control or the subsequent Involuntary Termination of your employment,
including (without limitation) the Option Parachute Payment attributable to your
Options and your Severance Payment under Part Two of this letter agreement. The Present
Value of each such payment shall be determined in accordance with the provisions of
Code Section 280G(d)(4), utilizing a discount rate equal to one hundred twenty percent
(120%) of the applicable Federal rate in effect at the time of such determination,
compounded semi-annually to the effective date of the Change in Control.   

4  

	

          Severance
Payment means the severance payment to which you may become entitled under Part
Two in the event of your Involuntary Termination following a Change in Control; subject,
however, to the dollar limitations of Part Three.   

          Termination
for Cause means a termination of your employment occasioned by reason of your having
engaged in fraud or in any other intentional misconduct adversely affecting the business
reputation of the Company in a material manner.   

          Transfer
shall mean the sale, transfer, or disposition of all or substantially all of the Assets
in a single transaction or group of related transactions, but shall not include the
sale, transfer, or disposition of any of the Assets in the ordinary course of business.   

          Unit
means a unit of interest in the Company acquired or issued pursuant to the Partnership
Agreement.   

PART TWO  — CHANGE
IN CONTROL BENEFITS  

          Upon
the Involuntary  Termination of your employment  within eighteen (18) months  following a
Change in Control,  you will become entitled to receive the special severance benefits
provided in this Part Two.  

	  	          1.
Severance Payment.  

	

          If
your  Involuntary  Termination  occurs within the first eighteen (18) months after the
Change in Control,  then you will be entitled to a Severance  Payment in an aggregate
 amount equal to (i) two (2) times your Base Salary plus (ii) your  target bonus for the
fiscal year of the Company in which such  Involuntary  Termination  occurs.  The
Severance  Payment will be made to you in a lump sum payment within ninety (90) days
after your Involuntary Termination.  

          The
Severance  Payment will be subject to the Company’s  collection of applicable  federal
and state income and  employment withholding taxes.  

          In
the event your employment  terminates by reason of your death or disability or your
 Termination for Cause, you will not be entitled to receive any Severance Payment or
other benefits under this letter agreement.  

	  	          2.
Option Acceleration.  

	

          Your
outstanding Options will (to the extent not then otherwise fully exercisable)
 automatically  accelerate to the extent so provided in the Plan so that each such
 accelerated  Option will become fully vested and  immediately  exercisable  for the
total number of Units at the time subject to that Option.  Each such  accelerated
 Option,  together  with all your other vested  Options, will remain  exercisable for
 fully-vested  Units until the earlier of (i) the  expiration date of the original option
term for such Option or (ii) the  end of the one (1) year period  measured  from the date
of your  Involuntary  Termination  (notwithstanding  any provisions of the Plan that
would provide for only a 90-day period).  

5  

	  	          3.
Additional Benefits.  

	  	          a.
      Health Care Coverage.  

	

          The
Company will, at its expense,  provide you and your eligible  dependents with continued
 health care coverage under the Company’s  medical/dental plan until the earlier of (i)
eighteen (18) months after the date of your Involuntary  Termination or (ii) the first
date that the you are covered under another  employer’s  health  benefit  program which
 provides  substantially  the same level of benefits without exclusion for pre-existing
 medical conditions.  The coverage so provided you and your eligible dependents will be
in full and complete  satisfaction  of the continued  health care coverage to which you
or your  eligible  dependents  would otherwise,  at your own expense,  be entitled under
Code Section 4980B by reason of your termination of employment,  and neither you nor your
eligible  dependents  will  accordingly  be entitled to any  additional  period of health
care coverage  under Code Section 4980B as a result of your termination of employment.  

	  	          b.
      Unpaid Benefits  

	

          You
will  receive an immediate  lump sum payment of all unpaid  vacation  days which you have
 accrued  through the date of your Involuntary Termination.  

PART THREE
                                                   — LIMITATION ON BENEFITS  

	  	          1.
Parachute Limit.  

	

          Except
to the limited extent (if any) provided  under  Paragraph 4(a) below,  the aggregate
 Present Value  (measured as of the Change in  Control) of the  benefits to which you
become  entitled  under Part Two at the time of your  Involuntary  Termination (namely
the Severance  Payment,  the Option Parachute Payment  attributable to your Options and
your Health Care  Continuation) will in no event exceed in amount the difference  between
(i) 2.99 times your Average  Compensation and (ii) the Present Value,  measured as of the
Change in Control, of all Other Parachute Payments to which you are entitled.  

          Accordingly,
 except as otherwise  provided under  Paragraph 4(a) below,  your Options will not
accelerate and no Severance Payment  will be made to you  pursuant to this  letter
 agreement,  to the extent the  Present  Value as of the Change in Control of (1).the
 aggregate Option  Parachute  Payment  attributable to your Options plus (II) your
Severance  Payment plus (III) your Health Care  Continuation  would,  when added to the
 Present  Value of your  Other  Parachute  Payments,  exceed  2.99 times your  Average
Compensation (the “Parachute Limit”).  

	  	          2.
Resolution Procedure.  

	

          For
purposes of the foregoing Parachute Limit, the following provisions will be in effect:  

6  

	

          
          
          a.
      In the event there is any  disagreement  between you and the Company as to whether
one or more payments to which you become entitled in connection with either the Change in
Control or your subsequent  Involuntary  Termination  constitute  Option  Parachute
Payments or Other  Parachute  Payments or as to the  determination  of the Present Value
 thereof,  such dispute will be resolved as follows:  

          
          
          

          (i)
     In the event  temporary,  proposed  or final  Treasury  Regulations  in  effect at
the time  under  Code  Section  280G (or applicable  judicial  decisions)  specifically
 address the status of any such  payment or the method of  valuation  therefore,  the
characterization  afforded to such payment by the  Regulations  (or such  decisions)
 will,  together with the applicable  valuation methodology, be controlling.  

          
          
          

          (ii)
In the event Treasury  Regulations (or applicable  judicial decisions) do not address the
status of any payment in dispute, the matter will be submitted  for  resolution  to
 independent  counsel  mutually  acceptable  to you and the Company  (“Independent
Counsel”). The resolution reached by Independent Counsel will be final and
controlling;  provided,  however, that if in the judgment of Independent  Counsel the
status of the payment in dispute can be resolved  through the obtainment of a private
letter ruling from the Internal  Revenue  Service,  a formal and proper request for such
ruling will be prepared and submitted by Independent  Counsel, and the  determination
 made by the Internal  Revenue  Service in the issued ruling will be  controlling.  All
expenses  incurred in connection  with the retention of  Independent  Counsel and (if
 applicable)  the  preparation  and submission of the ruling request shall be shared
equally by you and the Company.  

          
          
          

          (iii)
In the event Treasury Regulations (or applicable judicial decisions) do not address the
appropriate  valuation  methodology for any payment in dispute,  the Present Value
 thereof  will,  at the  Independent  Counsel’s  election,  be determined  through
an independent  third-party  appraisal,  and the expenses  incurred in obtaining such
appraisal  shall be shared equally by you and the Company.  

	  	          3.
Status of Benefits.  

	

          
          

          a.
      No Severance  Payment  will be made to you under Part Two of this letter  agreement
 until the Present  Value of the Option Parachute  Payment  attributable  to your Options
has been  determined  and the status of any payments in dispute under  Paragraph 2 above
has been  resolved in  accordance  therewith.  However,  you will be permitted to
exercise your Options at any time during the one (1) year (or shorter) period immediately
following your Involuntary Termination.  

          
          
          b.
      Once the  requisite  determinations  under  Paragraph 2 have been made,  then to
the extent the  aggregate  Present  Value, measured as of the Change in Control,  of (1)
the Option Parachute  Payment  attributable to your Options (or installments  thereof)
plus (2) your Severance  Payment would,  when added to the Present Value of all your
Other  Parachute  Payments exceed the Parachute Limit, your Severance Payment will be
accordingly reduced.  

7  

	  	          4.
Overriding Limitations.  

	

          
          
          
a.
      Notwithstanding  any  provision to the contrary set forth in the  preceding
 provisions  of this Part Three,  the aggregate Present Value of your Severance  Payment
and the Option  Parachute  Payment  attributable  to your Options will not be reduced
below that amount (if any) which,  when added to the Present Value of all the Other
 Parachute  Payment to which you are  entitled,  would nevertheless  qualify  as
 reasonable   compensation  for  past  services  within  the  standards  established
 under  Code  Section 280G(b)(4)(B).  

          
          

          b.
      The  limitations  of this Part Three will in all events be  interpreted in such
manner as to avoid the imposition of excise taxes under Code Section 4999, and the
disallowance of deductions  under Code Section  280G(a),  with respect to any of the
benefits paid  pursuant to Part Two of this letter  agreement.  This  provision  will
apply as if Code Section 4999 and Code Section  280G(a) and the related  provisions of
the Code and Treasury  Regulations are applicable to this Agreement and to payments to be
made to you as a result of your Involuntary  Termination  following a Change of Control,
 notwithstanding the technical  inapplicability of such law and  regulations to the
Company as a result of its  organization  and structure,  and all provisions of this
Agreement  shall be construed, interpreted, and applied as if such laws and regulations
were applicable.  

PART FOUR
                                                   — MISCELLANEOUS PROVISIONS  

	  	          1.
Termination for Cause.  

	

          Should
your  termination of employment  constitute a Termination  for Cause,  then the Company
will only be required to pay you (i) any unpaid  compensation  earned for services
 previously rendered through the date of such termination and (ii) any accrued but unpaid
vacation benefits or sick days, and no benefits will be payable to you under Part Two of
this letter agreement.  

	  	          2.
Death.  

	

          Should
you die before receipt of one or more Severance  Payment to which you become  entitled
under Part Two of this letter agreement,  then those  payment or payments will be made to
the executors or  administrators  of your estate.  Should you die before you exercise all
your outstanding  Options,  then such Options may be exercised,  within twelve (12)
months after your death, by the executors  or  administrators  of your  estate  or by
 persons  to whom the  Options  are  transferred  pursuant  to your will or in accordance
 with the laws of inheritance.  In no event,  however,  may any such Option be exercised
 after the specified  expiration date of the option term.  

	  	          3.
General Creditor Status.  

	

          The
payments and benefits to which you become  entitled  hereunder  will be paid,  when due,
from the general assets of the Company,  and no trust fund,  escrow  arrangement or other
 segregated  account will be  established  as a funding  vehicle for such payment.
 Accordingly,  your right (or the right of the personal  representatives  or
 beneficiaries  of your estate) to receive any payments or benefits  hereunder  will at
all times be that of a general  creditor of the Company and will have no priority  over
the claims of other general creditors.  

8  

	  	          4.
Indemnification.  

	

          The
 indemnification  provisions for Officers and Directors under the Company Bylaws will (to
the maximum extent  permitted by law) be extended to you, during the period following
your Involuntary  Termination,  with respect to any and all matters,  events or
transactions occurring or effected during your employment with the Company.  

	  	          5.
Miscellaneous.  

	

          This
letter agreement will be binding upon the Company,  its successors and assigns
 (including,  without  limitation,  the surviving  entity in any Change in Control) and
is to be construed and interpreted  under the laws of the State of Washington.  This
letter may only be amended by written  instrument signed by you and an authorized
 officer of the Company.  If any provision of this letter  agreement as applied to you or
the Company or to any  circumstance  should be adjudged by a court of competent
 jurisdiction to be void or  unenforceable  for any  reason,  the  invalidity  of that
 provision  will in no way  affect (to the  maximum  extent permissible by law) the
 application of such  provision  under  circumstances  different  from those  adjudicated
by the court,  the application of any other  provision of this letter  agreement,  or the
 enforceability  or invalidity of this letter  agreement as a whole.  Should any
provision of this letter agreement  become or be deemed invalid,  illegal or
unenforceable in any jurisdiction by reason of the scope,  extent or duration of its
coverage,  then such  provision  will be deemed  amended to the extent  necessary to
conform to applicable law so as to be valid and enforceable or, if such provision cannot
be so amended without  materially  altering the  intention of the parties,  then such
 provision  will be stricken and the remainder of this letter  agreement  will continue
in full force and effect.  

	  	          6.
No Employment or Service Contract.  

	

          Nothing
in this  letter  agreement  is  intended to provide you with any right to continue in the
employ of the Company for any period of specific  duration or  interfere  with or
 otherwise  restrict in any way your rights or the rights of the Company (or any
 subsidiary),  which rights are hereby  expressly  reserved by each,  to terminate  your
 employment  at any time for any reason whatsoever, with or without cause.  

	  	          7.
Attorney Fees.  

	

          In
the event legal  proceeding  should be  initiated by you or by the Company  with  respect
to any  controversy,  claim or dispute  relating  to the  interpretation  or  application
 of the  provisions  of this letter  agreement  or any  benefits  payable hereunder,  the
prevailing party in such proceedings will be entitled to recover from the losing party
reasonable  attorney fees and costs incurred in connection  with such  proceedings  or in
the  enforcement or collection of any judgment or award rendered in such proceedings.
 For purposes of this  provision,  the  prevailing  party means the party  determined  by
the court to have most nearly prevailed in the proceedings,  even if that party does not
prevail in all matters,  and does not necessarily mean the party in whose favor the
judgment is actually rendered.  

9  

	

          Please
 indicate your acceptance of the foregoing  provisions of this employment  agreement by
signing the enclosed copy of this agreement and returning it to the Company.  

	 	POPE RESOURCES, A DELAWARE 
LIMITED PARTNERSHIP

BY: David L. Nunes

TITLE: President & Chief Executive Officer  

	

ACCEPTANCE  

          I
hereby agree to all the terms and provisions of the foregoing  letter  agreement
 governing the special benefits to which I may become entitled in connection with certain
changes in control or ownership of the Company.  

	 	Signature: John T. Shea

Dated: April 13, 2004 

	

10Exhibit 10.17

 Exhibit 10.17 
  
 BEARINGPOINT, INC. 
  
 2000 LONG-TERM INCENTIVE PLAN 
  
 (as amended and restated effective as of November 4, 2003) 

 
 I. INTRODUCTION 
  
 1.1 Purposes. The purposes of the 2000 Long-Term Incentive Plan
(this “Plan”) of BearingPoint, Inc., a Delaware corporation (the “Company”), are (i) to align the interests of the Company’s stockholders and the recipients of awards under this Plan by providing a means to
increase the proprietary interest of such recipients in the Company’s growth and success, (ii) to advance the interests of the Company by increasing its ability to attract and retain highly competent officers, other employees, non-employee
directors and consultants and (iii) to motivate such persons to act in the long-term best interests of the Company and its stockholders. 
  
 This Plan is a continuation, and amendment and restatement, of the KMPG Consulting, Inc. 2000 Long-Term Incentive Plan, the provisions of which shall
continue to control with respect to any options or stock awards outstanding thereunder to the extent necessary to avoid establishment of a new measurement date for financial accounting purposes. 
  
 1.2 Certain Definitions. 
  
 “Affiliate” shall mean (i) any subsidiary corporation
(other than the Company) in an unbroken chain of corporations beginning with the Company, as described in Section 424(f) of the Code and (ii) any other entity in which the Company has an equity interest or with which the Company has a significant
business relationship. 
  
 “Agreement”
shall mean the written agreement evidencing an award hereunder between the Company and the recipient of such award. 
  
 “Board” shall mean the Board of Directors of the Company. 
  
 “Bonus Stock” shall mean shares of Common Stock which are not subject to a Restriction Period or
Performance Measures. 
  
 “Bonus Stock
Award” shall mean an award of Bonus Stock under this Plan. 
  
 “Change in Control” shall have the meaning set forth in Section 7.8(b). 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 

 “Committee” shall mean the committee designated by the Board which, following an
IPO, shall consist of two or more members of the Board, each of whom may be a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act. 
  
 “Common Stock” shall mean the common stock, $0.01 par value, of the Company. 
  
 “Company” shall have the meaning set forth in Section
1.1. 
  
 “Disability” shall mean the
inability of the recipient of an award to perform substantially such recipient’s duties and responsibilities for a continuous period of at least six months, as determined solely by the Committee. 
  
 “Discretionary Director Options” shall have the
meaning set forth in Section 6.5. 
  
 “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” shall mean the last sale price of a share of Common Stock as reported on the New York Stock Exchange on the date as of which such value is being determined or, if there
shall be no reported transactions on such date, on the next preceding date for which a transaction was reported; provided, however, that if the Common Stock is not traded on the New York Stock Exchange, Fair Market Value may be
determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion, shall at such time deem appropriate. 
  
 “Free-Standing SAR” shall mean an SAR which is not issued in tandem with, or by reference to, an option, which entitles the holder
thereof to receive, upon exercise, shares of Common Stock (which may be Restricted Stock), cash or a combination thereof with an aggregate value equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise over
the base price of such SAR, multiplied by the number of such SARs which are exercised. 
  
 “Incentive Stock Option” shall mean an option to purchase shares of Common Stock that meets the requirements of Section 422 of the Code, or any successor provision, which is intended by the
Committee to constitute an Incentive Stock Option. 
  
 “Incumbent Board” shall have the meaning set forth in Section 7.8(b)(3). 
  
 “IPO” shall mean the initial public offering of Common Stock pursuant to an effective registration statement under the Securities
Act of 1933, as amended. 
  
 “Mature
Shares” shall mean previously-acquired shares of Common Stock for which the holder thereof has good title, free and clear of all liens and encumbrances and which such holder either (i) has held for at least six months or (ii) has
purchased on the open market. 
  
 “Non-Employee
Director” shall mean any director of the Company who is not an officer or employee of the Company or any subsidiary of the Company and who is not a partner, principal or employee of KPMG LLP. 
  

 2 

 “Non-Statutory Stock Option” shall mean an option to purchase shares of Common
Stock which is not an Incentive Stock Option. 
  
 “Performance Measures” shall mean the criteria and objectives, established by the Committee, which shall be satisfied or met (i) as a condition to the exercisability of all or a portion of an option or SAR, (ii) as a
condition to the grant of a Stock Award or (iii) during the applicable Restriction Period or Performance Period as a condition to the holder’s receipt, in the case of a Restricted Stock Award, of the Restricted Stock subject to such award, or,
in the case of a Performance Share Award, of the shares of Common Stock subject to such award and/or of payment with respect to such award. Such criteria and objectives may include one or more of the following: the attainment by a share of Common
Stock of a specified Fair Market Value for a specified period of time, earnings per share, return to stockholders (including dividends), return on equity, earnings of the Company, revenues, market share, cash flow or cost reduction goals, or any
combination of the foregoing. In the sole discretion of the Committee, the Committee may amend or adjust the Performance Measures or other terms and conditions of an outstanding award in recognition of unusual or nonrecurring events affecting the
Company or its financial statements or changes in law or accounting principles. 
  
 “Performance Period” shall mean any period designated by the Committee during which the Performance Measures applicable to a Performance Share Award shall be measured. 
  
 “Performance Share” shall mean a right, contingent
upon the attainment of specified Performance Measures within a specified Performance Period, to receive one share of Common Stock, which may be Restricted Stock or, in lieu of all or a portion thereof, the Fair Market Value of such share of Common
Stock in cash. 
  
 “Performance Share
Award” shall mean an award of Performance Shares under this Plan. 
  
 “Person” shall have the meaning set forth in Section 7.8(b)(3). 
  
 “Restricted Stock” shall mean either (i) shares of Common Stock which are subject to a Restriction Period, or (ii) Common Stock
equivalent units which are subject to a Restriction Period. 
  
 “Restricted Stock Award” shall mean an award of Restricted Stock under this Plan. 
  
 “Restriction Period” shall mean any period designated by the Committee during which the Restricted Stock subject to a Restricted
Stock Award is subject to forfeiture and may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or the Agreement relating to such award. 
  
 “Retirement” shall mean termination of employment
with or service to the Company by reason of retirement on or after age 65. 
  
 “SAR” shall mean a stock appreciation right which may be a Free-Standing SAR or a Tandem SAR. 
  

 3 

 “Stock Award” shall mean a Restricted Stock Award or a Bonus Stock Award.

  
 “Tandem SAR” shall mean an SAR which
is granted in tandem with, or by reference to, an option (including a Non-Statutory Stock Option granted prior to the date of grant of the SAR), which entitles the holder thereof to receive, upon exercise of such SAR and surrender for cancellation
of all or a portion of such option, shares of Common Stock (which may be Restricted Stock), cash or a combination thereof with an aggregate value equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise over
the base price of such SAR, multiplied by the number of shares of Common Stock subject to such option, or portion thereof, which is surrendered. 
  
 “Tax Date” shall have the meaning set forth in Section 7.5. 
  
 “Ten Percent Holder” shall have the meaning set forth in Section 2.1(a). 
  
 1.3 Administration. This Plan shall be administered by the
Committee. Any one or a combination of the following awards may be made under this Plan to eligible persons: (i) options to purchase shares of Common Stock in the form of Incentive Stock Options or Non-Statutory Stock Options, (ii) SARs in the form
of Tandem SARs or Free-Standing SARs, (iii) Stock Awards in the form of Restricted Stock or Bonus Stock and (iv) Performance Shares. The Committee shall, subject to the terms of this Plan, select eligible persons for participation in this Plan and
determine the form, amount and timing of each award to such persons and, if applicable, the number of shares of Common Stock, the number of SARs and the number of Performance Shares subject to such an award, the exercise price or base price
associated with the award, the time and conditions of exercise or settlement of the award and all other terms and conditions of the award, including, without limitation, the form of the Agreement evidencing the award. The Committee may, in its sole
discretion and for any reason at any time, take action such that (i) any or all outstanding options and SARs shall become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable to any outstanding Restricted Stock
Award shall lapse, (iii) all or a portion of the Performance Period applicable to any outstanding Performance Share Award shall lapse and (iv) the Performance Measures applicable to any outstanding award (if any) shall be deemed to be satisfied at
the maximum or any other level. The Committee shall, subject to the terms of this Plan, interpret this Plan and the application thereof, establish rules and regulations it deems necessary or desirable for the administration of this Plan and may
impose, incidental to the grant of an award, conditions with respect to the award, such as limiting competitive employment or other activities. All such interpretations, rules, regulations and conditions shall be final, binding and conclusive.

  
 The Committee may delegate some or all of its power and
authority hereunder to the Board or either of the Co-Chief Executive Officers or other executive officer of the Company as the Committee deems appropriate; provided, however, that the Committee may not delegate its power and authority
to either of the Co-Chief Executive Officers or other executive officer of the Company with regard to the selection for participation in this Plan of an officer or other person subject to Section 16 of the Exchange Act or decisions concerning the
timing, pricing or amount of an award to such an officer or other person. 
  

 4 

 No member of the Board or Committee, and neither a Co-Chief Executive Officer nor any other executive
officer to whom the Committee delegates any of its power and authority hereunder, shall be liable for any act, omission, interpretation, construction or determination made in connection with this Plan in good faith, and the members of the Board and
the Committee and the Co-Chief Executive Officers or other executive officer shall be entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including attorneys’ fees) arising therefrom to
the full extent permitted by law, except as otherwise may be provided in the Company’s Certificate of Incorporation and/or By-laws, and under any directors’ and officers’ liability insurance that may be in effect from time to time.

  
 A majority of the Committee shall constitute a quorum. The
acts of the Committee shall be either (i) acts of a majority of the members of the Committee present at any meeting at which a quorum is present or (ii) acts approved in writing by all of the members of the Committee without a meeting. 

 
 1.4 Eligibility. Participants in this Plan shall
consist of such officers, other employees and consultants, and persons expected to become officers, other employees and consultants, of the Company and its Affiliates, as the Committee in its sole discretion may select from time to time, and such
other persons designated by the Committee pursuant to Section 7.13. For purposes of this Plan, references to employment also shall mean a consulting relationship and references to employment by the Company also shall mean employment by an Affiliate.
The Committee’s selection of a person to participate in this Plan at any time shall not require the Committee to select such person to participate in this Plan at any other time. Non-Employee Directors of the Company shall be eligible to
participate in this Plan in accordance with Article VI. 
  
 1.5
Shares Available. 
  
 (a) Shares Available. The
number of shares of Common Stock that are authorized for grants or awards under this Plan (the “Authorized Shares”) shall at all times be equal to the greater of (i) subject to adjustment as provided in Section 7.7, 177,000,000 shares and
(ii) 25% of the sum of (x) the number of issued and outstanding shares of Common Stock of the Company plus (y) the Authorized Shares, provided, however, that the number of Authorized Shares shall never be reduced below the number of shares
that are then issuable under all outstanding grants or awards. The number of shares of Common Stock that shall be available for grants or awards under this Plan (the “Available Shares”) shall be equal to the number of Authorized Shares
reduced by the sum of the aggregate number of shares of Common Stock, adjusted as provided in Section 7.7, which become subject to outstanding options, including Discretionary Director Options, outstanding Free-Standing SARs, outstanding Stock
Awards and outstanding Performance Share Awards. 
  
 (b)
Maximum Grants of Incentive Stock Options. Subject to adjustment as provided in Section 7.7, the maximum number of shares that may be granted as Incentive Stock Options shall be 177,000,000. 
  
 (c) Restoration of Available Shares. To the extent that shares of
Common Stock subject to an outstanding option (except to the extent shares of Common Stock are issued or 
  

 5 

 delivered by the Company in connection with the exercise of a Tandem SAR), Free-Standing SAR, Stock Award or Performance
Share Award are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or by reason of the delivery or withholding of shares of Common Stock to pay all or a portion of the purchase price of an
award, if any, or to satisfy all or a portion of the tax withholding obligations relating to an award, then such shares of Common Stock shall again be available under this Plan. 
  
 (d) Available Common Stock. Shares of Common Stock shall be made available from authorized and unissued shares of
Common Stock, or authorized and issued shares of Common Stock reacquired and held as treasury shares or otherwise or a combination thereof. 
  
 II. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS 
  
 2.1 Stock Options. The Committee may, in its discretion, grant options to purchase shares of Common Stock to such eligible persons as may be
selected by the Committee. Each option, or portion thereof, that is not an Incentive Stock Option shall be a Non-Statutory Stock Option. An Incentive Stock Option may not be granted to any person who is not an employee of the Company or any parent
or subsidiary (as defined in Section 424 of the Code). Each Incentive Stock Option shall be granted within ten years of the date this Plan is adopted by the Board. To the extent that the aggregate Fair Market Value (determined as of the date of
grant) of shares of Common Stock with respect to which options designated as Incentive Stock Options are exercisable for the first time by a participant during any calendar year (under this Plan or any other plan of the Company or any parent or
subsidiary as defined in Section 424 of the Code) exceeds the amount (currently $100,000) established by the Code, such options shall constitute Non-Statutory Stock Options. 
  
 Options shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of this Plan, as the Committee shall deem advisable: 
  
 (a) Number of Shares and Purchase Price. The number of shares of Common Stock subject to an option and the purchase price per share of Common Stock purchasable upon exercise of the option shall be determined by
the Committee; provided, however, that the purchase price per share of Common Stock purchasable upon exercise of the option shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such
option; and provided further, that if an Incentive Stock Option shall be granted to any person who, at the time such option is granted, owns capital stock possessing more than ten percent of the total combined voting power of all
classes of capital stock of the Company (or of any parent or subsidiary as defined in Section 424 of the Code) (a “Ten Percent Holder”), the purchase price per share of Common Stock shall not be less than the price (currently 110%
of Fair Market Value) required by the Code in order to constitute an Incentive Stock Option. 
  
 (b) Exercise Period and Exercisability. The period during which an option may be exercised shall be determined by the Committee; provided, however, that no Incentive Stock Option shall be
exercised later than ten years after its date of grant; and provided further, that if an Incentive Stock Option shall be granted to a Ten Percent Holder, such option shall not be exercised later than five years after its date of grant.
The Committee may, in its discretion, 
  

 6 

 establish Performance Measures which shall be satisfied or met as a condition to the grant of an option or to the
exercisability of all or a portion of an option. The Committee shall determine whether an option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An exercisable option, or portion thereof, may
be exercised only with respect to whole shares of Common Stock. 
  
 (c) Method of Exercise. An option may be exercised (i) by giving written notice to the Company specifying the number of whole shares of Common Stock to be purchased and by accompanying such notice with payment therefor in full (or by
arranging for such payment to the Company’s satisfaction) either (A) in cash, (B) by delivery (either actual delivery or by attestation procedures established by the Company) of Mature Shares having an aggregate Fair Market Value, determined as
of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise, (C) in cash by a broker-dealer acceptable to the Company to whom the optionee has submitted an irrevocable notice of exercise or (D) a combination of
(A) and (B), in each case to the extent set forth in the Agreement relating to the option, (ii) if applicable, by surrendering to the Company any Tandem SARs which are cancelled by reason of the exercise of the option and (iii) by executing such
documents as the Company may reasonably request. The Company shall have sole discretion to disapprove of an election pursuant to any of clauses (i)(B)-(D). Any fraction of a share of Common Stock which would be required to pay such purchase price
shall be disregarded and the remaining amount due shall be paid in cash by the optionee. No certificate representing Common Stock shall be delivered until the full purchase price therefor and any withholding taxes thereon, as described in Section
7.5, have been paid (or arrangement made for such payment to the Company’s satisfaction). 
  
 2.2 Stock Appreciation Rights. The Committee may, in its discretion, grant SARs to such eligible persons as may be selected by the Committee. The Agreement relating to an SAR shall specify whether the
SAR is a Tandem SAR or a Free-Standing SAR. 
  
 SARs shall be
subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable: 
  
 (a) Number of SARs and Base Price. The number of SARs subject to an award shall be determined by the Committee. Any
Tandem SAR related to an Incentive Stock Option shall be granted at the same time that such Incentive Stock Option is granted. The base price of a Tandem SAR shall be the exercise price per share of Common Stock of the related option. The base price
of a Free-Standing SAR shall be determined by the Committee; provided, however, that such base price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such SAR. 
  
 (b) Exercise Period and Exercisability. The Agreement relating to an
award of SARs shall specify whether such award may be settled in shares of Common Stock (including shares of Restricted Stock) or cash or a combination thereof. The period for the exercise of an SAR shall be determined by the Committee;
provided, however, that no Tandem SAR shall be exercised later than the expiration, cancellation, forfeiture or other termination of the related option. The Committee may, in its discretion, establish Performance Measures which shall
be satisfied or met as a condition to the grant of an SAR or to the exercisability of all or a portion of an SAR. The 
  

 7 

 Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and in part or in
full at any time. An exercisable SAR, or portion thereof, may be exercised, in the case of a Tandem SAR, only with respect to whole shares of Common Stock and, in the case of a Free-Standing SAR, only with respect to a whole number of SARs. If an
SAR is exercised for shares of Restricted Stock, a certificate or certificates representing such Restricted Stock shall be issued in accordance with Section 3.2(c) and the holder of such Restricted Stock shall have such rights of a stockholder of
the Company as determined pursuant to Section 3.2(d). Prior to the exercise of an SAR for shares of Common Stock, including Restricted Stock, the holder of such SAR shall have no rights as a stockholder of the Company with respect to the shares of
Common Stock subject to such SAR. 
  
 (c) Method of
Exercise. A Tandem SAR may be exercised (i) by giving written notice to the Company specifying the number of whole SARs which are being exercised, (ii) by surrendering to the Company any options which are cancelled by reason of the exercise of
the Tandem SAR and (iii) by executing such documents as the Company may reasonably request. A Free-Standing SAR may be exercised (i) by giving written notice to the Company specifying the whole number of SARs which are being exercised and (ii) by
executing such documents as the Company may reasonably request. 
  
 2.3 Termination of Employment or Service. Subject to the requirements of the Code, all of the terms relating to the exercise, cancellation or other disposition of an option or SAR upon a termination of employment with or
service to the Company of the recipient of such option or SAR, as the case may be, whether by reason of Disability, Retirement, death or any other reason, shall be determined by the Committee. 
  
 III. STOCK AWARDS 
  
 3.1 Stock Awards. The Committee may, in its discretion, grant
Stock Awards to such eligible persons as may be selected by the Committee. The Agreement relating to a Stock Award shall specify whether the Stock Award is a Restricted Stock Award or Bonus Stock Award. 
  
 3.2 Terms of Stock Awards. Stock Awards shall be subject to the
following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable. 
  
 (a) Number of Shares and Other Terms. The number of shares of Common Stock subject to a Restricted Stock Award or
Bonus Stock Award and the Performance Measures (if any) and Restriction Period applicable to a Restricted Stock Award shall be determined by the Committee. Bonus Stock Awards shall not be subject to any Performance Measures or Restriction Periods.

  
 (b) Vesting and Forfeiture. The Agreement relating to a
Restricted Stock Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of the Restricted Stock subject to such award (i) if specified Performance Measures are
satisfied or met during the specified Restriction Period or (ii) if the holder of such award remains continuously in the employment of or service to the 
  

 8 

 Company during the specified Restriction Period and for the forfeiture of all or a portion of the shares of Common Stock
subject to such award (x) if specified Performance Measures are not satisfied or met during the specified Restriction Period or (y) if the holder of such award does not remain continuously in the employment of or service to the Company during the
specified Restriction Period. 
  
 (c) Share Certificates.
During the Restriction Period, a certificate or certificates representing a Restricted Stock Award may be registered in the holder’s name or a nominee name at the discretion of the Company and may bear a legend, in addition to any legend which
may be required pursuant to Section 7.6, indicating that the ownership of the shares of Common Stock represented by such certificate is subject to the restrictions, terms and conditions of this Plan and the Agreement relating to the Restricted Stock
Award. As determined by the Committee, all certificates registered in the holder’s name shall be deposited with the Company, together with stock powers or other instruments of assignment (including a power of attorney), each endorsed in blank
with a guarantee of signature if deemed necessary or appropriate by the Company, which would permit transfer to the Company of all or a portion of the shares of Common Stock subject to the Restricted Stock Award in the event such award is forfeited
in whole or in part. Upon termination of any applicable Restriction Period (and the satisfaction or attainment of applicable Performance Measures), or upon the grant of a Bonus Stock Award, in each case subject to the Company’s right to require
payment of any taxes in accordance with Section 7.5, a certificate or certificates evidencing ownership of the requisite number of shares of Common Stock shall be delivered to the holder of such award. 
  
 (d) Rights with Respect to Restricted Stock Awards. Unless
otherwise set forth in the Agreement relating to a Restricted Stock Award, and subject to the terms and conditions of the Agreement relating to a Restricted Stock Award, (i) the holder of a Restricted Stock Award denominated in shares of Common
Stock shall have all rights as a stockholder of the Company, including, but not limited to, voting rights, the right to receive dividends and the right to participate in any capital adjustment applicable to all holders of Common Stock;
provided, however, that a distribution with respect to shares of Common Stock, other than a regular cash dividend, shall be deposited with the Company and shall be subject to the same restrictions as the shares of Common Stock with
respect to which such distribution was made, and (ii) the holder of a Restricted Stock Award denominated in Common Stock equivalent units shall have no rights as a stockholder of the Company unless and until shares of Common Stock are issued and
delivered to the holder of the Restricted Stock Award with respect to such Common Stock equivalent units; provided, however, that a Restricted Stock Award denominated in Common Stock equivalent units may provide for the payment of
dividend equivalents which correspond to the payment of dividends on Common Stock. 
  
 3.3 Termination of Employment or Service. All of the terms relating to the satisfaction of Performance Measures and the termination of the Restriction Period relating to a Restricted Stock Award, or any
forfeiture and cancellation of such award upon a termination of employment with or service to the Company of the recipient of such award, whether by reason of Disability, Retirement, death or any other reason, shall be determined by the Committee.

  

 9 

 IV. PERFORMANCE SHARE AWARDS 
  
 4.1 Performance Share Awards. The Committee may, in its discretion, grant Performance Share Awards to such
eligible persons as may be selected by the Committee. 
  
 4.2
Terms of Performance Share Awards. Performance Share Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee
shall deem advisable. 
  
 (a) Number of Performance Shares and
Performance Measures. The number of Performance Shares subject to any award and the Performance Measures and Performance Period applicable to such award shall be determined by the Committee. 
  
 (b) Vesting and Forfeiture. The Agreement relating to a Performance
Share Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such award, if specified Performance Measures are satisfied or met during the specified
Performance Period, and for the forfeiture of all or a portion of such award, if specified Performance Measures are not satisfied or met during the specified Performance Period. 
  
 (c) Settlement of Vested Performance Share Awards. The Agreement relating to a Performance Share Award (i) shall
specify whether such award may be settled in shares of Common Stock (including shares of Restricted Stock) or cash or a combination thereof and (ii) may specify whether the holder thereof shall be entitled to receive, on a current or deferred basis,
dividend equivalents, and, if determined by the Committee, interest on or the deemed reinvestment of any deferred dividend equivalents, with respect to the number of shares of Common Stock subject to such award. If a Performance Share Award is
settled in shares of Restricted Stock, a certificate or certificates representing such Restricted Stock shall be issued in accordance with Section 3.2(c) and the holder of such Restricted Stock shall have such rights of a stockholder of the Company
as determined pursuant to Section 3.2(d). Prior to the settlement of a Performance Share Award in shares of Common Stock, including Restricted Stock, the holder of such award shall have no rights as a stockholder of the Company with respect to the
shares of Common Stock subject to such award. 
  
 4.3
Termination of Employment or Service. All of the terms relating to the satisfaction of Performance Measures and the termination of the Performance Period relating to a Performance Share Award, or any forfeiture and cancellation of such
award upon a termination of employment with or service to the Company of the recipient of such award, whether by reason of Disability, Retirement, death or other termination, shall be determined by the Committee. 
  
 V. OTHER STOCK-BASED AWARDS 
  
 In addition to Restricted Stock Awards, the Committee may from time to time
grant other stock-based awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine. Other
stock-based awards may be denominated in cash, in Common Stock or other securities, in stock-equivalent units, in stock appreciation units, in 
  

 10 

 securities or debentures convertible into Common Stock, or in any combination of the foregoing and may be paid in Common
Stock or other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the sole discretion of the Committee. 
  

VI. PROVISIONS RELATING TO NON-EMPLOYEE DIRECTORS 
  
 6.1 Eligibility. Each Non-Employee Director shall be eligible to participate in the Plan as provided in this Article VI. 

 
 6.2 Automatic Grants of Stock Options. Each
Non-Employee Director shall automatically be granted Non-Statutory Stock Options as follows: 
  
 (a) Time of Grant. Automatic grants of Non-Statutory Stock Options shall be made on the dates specified below: 
  
 (1) Each person who is serving as a Non-Employee Director as of March 20, 2001 shall automatically be granted, on the date that the next Non-Employee
Director is elected, an option to purchase 15,000 shares of Common Stock. 
  
 (2) Each person who is first elected or first begins to serve as a Non-Employee Director on or after March 20, 2001 shall automatically be granted, on the date of such initial election or service, an option to
purchase 15,000 shares of Common Stock. 
  
 (3) Each person who is
a Non-Employee Director shall automatically be granted an option to purchase 5,000 shares of Common Stock on the date he or she is first elected to serve as Chair of the Audit Committee of the Board of Directors of the Company. 
  
 (b) Purchase Price. The purchase price per share of Common Stock
purchasable upon exercise of an option granted under this Section 6.2 shall be 100% of the Fair Market Value of a share of Common Stock on the date of grant of such option. 
  
 (c) Exercise Period and Exercisability. Each option granted under Section 6.2(a)(1) or Section 6.2(a)(2) shall be
fully exercisable on and after the one year anniversary of its date of grant and each option granted under Section 6.2(a)(3) shall be fully exercisable on and after the day preceding the day of the next annual meeting of stockholders of the Company
following its date of grant. Each option granted under this Section 6.2 shall expire 10 years after its date of grant. An exercisable option, or portion thereof, may be exercised in whole or in part only with respect to whole shares of Common Stock.
Options granted under this Section 6.2 shall be exercisable in accordance with Section 2.1(c). 
  
 6.3 Termination of Directorship. (a) Disability. If the recipient of an option granted under Section 6.2 ceases to be a director of the Company by reason of Disability, each such option held by
the holder thereof shall be exercisable only to the extent such option is exercisable on the effective date of such recipient’s ceasing to be a director and may thereafter be exercised by such holder (or such holder’s legal representative
or similar person) until and including the earlier to occur of the (i) date which is one year after the effective date of such recipient’s ceasing to be a director and (ii) the expiration date of the term of such option. 
  

 11 

 (b) Retirement. If the recipient of an option granted under Section 6.2 ceases to be a director of
the Company by reason of Retirement, each such option held by the holder thereof shall be exercisable only to the extent such option is exercisable on the effective date of such recipient’s ceasing to be a director and may thereafter be
exercised by such holder (or such holder’s legal representative or similar person) until and including the earlier to occur of the (i) date which is three months after the effective date of such recipient’s ceasing to be a director and
(ii) the expiration date of the term of such option. 
  
 (c)
Death. If the recipient of an option granted under Section 6.2 ceases to be a director of the Company by reason of death, each such option held by the holder thereof shall be exercisable only to the extent such option is exercisable on the
effective date of such recipient’s ceasing to be a director and may thereafter be exercised by such holder’s executor, administrator, legal representative, beneficiary or similar person until and including the earlier to occur of the (i)
date which is one year after the date of such recipient’s death and (ii) the expiration date of the term of such option. 
  
 (d) Other Termination. If the recipient of an option granted under Section 6.2 ceases to be a director of the Company for any reason other than
Disability, Retirement or death, each such option held by the holder thereof shall be exercisable only to the extent such option is exercisable on the effective date of such recipient’s ceasing to be a director and may thereafter be exercised
by such holder (or such holder’s legal representative or similar person) until and including the earlier to occur of the (i) date which is three months after the effective date of such recipient’s ceasing to be a director and (ii) the
expiration date of the term of such option. 
  
 (e) Death
Following Termination of Directorship. If the recipient of an option granted under Section 6.2 dies during the period set forth in Section 6.3(a) following such recipient’s ceasing to be a director of the Company by reason of Disability, or
if such recipient dies during the period set forth in Section 6.3(b) following such recipient’s Retirement, or if such a recipient dies during the period set forth in Section 6.3(d) following such recipient’s ceasing to be a director for
any reason other than by reason of Disability or Retirement, each such option held by the holder thereof shall be exercisable only to the extent that such option is exercisable on the date of the recipient’s death and may thereafter be
exercised by such holder’s executor, administrator, legal representative, beneficiary or similar person until and including the earlier to occur of the (i) date which is one year after the date of such recipient’s death and (ii) the
expiration date of the term of such option. 
  
 6.4
Automatic Grants of Restricted Stock Awards. Each Non-Employee Director shall be granted a Restricted Stock Award as follows: 
  
 (a) Time of Grant. Each person who is serving as a Non-Employee Director immediately following any annual meeting of stockholders of the Company
held on or after November 4, 2003 shall automatically be granted, on the date of such meeting, a Restricted Stock Award for 8,000 shares of Common Stock, unless the Compensation Committee determines that such Restricted Stock Award shall be in
Common Stock equivalent units with dividend equivalents. 
  
 (b)
Vesting. The Restricted Stock Award shall be fully vested upon grant. 
  

 12 

 (c) Restriction Period. The Restriction Period for the Restricted Stock Award shall be the period
of time during which the Non-Employee Director provides services as a member of the Board. The Restriction Period shall terminate on the date that the Non-Employee Director ceases to serve as a member of the Board. 
  
 6.5 Discretionary Grants of Stock Options. The Committee may,
in its discretion, grant options to purchase shares of Common Stock (“Discretionary Director Options”) to all Non-Employee Directors or to any one or more of them. Each Discretionary Director Option shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable: 
  
 (a) Number of Shares and Purchase Price. The number of shares of Common Stock subject to a Discretionary Director
Option and the purchase price per share of Common Stock purchasable upon exercise of the option shall be determined by the Committee; provided, however, that the purchase price per share of Common Stock purchasable upon exercise of the
option shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such option. 
  
 (b) Exercise Period and Exercisability. The period during which a Discretionary Director Option may be exercised shall be determined by the
Committee. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of a Discretionary Director Option or to the exercisability of all or a portion of a Discretionary Director
Option. The Committee shall determine whether a Discretionary Director Option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An exercisable Director Discretionary Option, or portion thereof,
may be exercised only with respect to whole shares of Common Stock. Each Discretionary Director Option shall be exercisable in accordance with Section 2.1(c). 
  

(c) Termination of Directorship. All of the terms relating to the exercise, cancellation or other disposition of a Discretionary Director Option
upon a termination of service as a director of the Company of the recipient of a Discretionary Director Option, whether by reason of Disability, Retirement, death or any other reason, shall be determined by the Committee. 
  
 VII. GENERAL 
  
 7.1 Effective Date and Term of Plan. This Plan shall be
submitted to the stockholders of the Company for approval within 12 months following its adoption by the Board and, if approved, shall become effective as of the date of such adoption by the Board. No option may be exercised prior to the date of
such stockholder approval. This Plan shall terminate 10 years after its effective date, unless terminated earlier by the Board. Termination of this Plan shall not affect the terms or conditions of any award granted prior to such termination.

  
 7.2 Amendments. The Board or the Committee may
amend this Plan as it shall deem advisable, subject to any requirement of stockholder approval required by applicable law, rule or regulation, including Section 422 of the Code; provided, however, that no amendment shall be made
without stockholder approval if such amendment would (a) increase the maximum number of shares of Common Stock available under this Plan (subject to Section 7.7), (b) effect any 
  

 13 

 change inconsistent with Section 422 of the Code or (c) extend the term of this Plan. No amendment may impair the rights
of a holder of an outstanding award without the consent of such holder. 
  
 7.3 Agreement. No award shall be valid until an Agreement is executed by the Company and the recipient of such award and, upon execution by each party and delivery of the Agreement to the Company, such award shall be effective
as of the effective date set forth in the Agreement. 
  
 7.4
Non-Transferability of Awards. Unless the Committee provides for the transferability of a particular award and such transferability is specified in the Agreement relating to such award, no award shall be transferable other than by will,
the laws of descent and distribution or pursuant to beneficiary designation procedures stated in Section 7.11 or otherwise approved by the Company. Except to the extent permitted by the foregoing sentence or the Agreement relating to the Award, each
award may be exercised or settled during the recipient’s lifetime only by the recipient or the recipient’s legal representative or similar person. Except to the extent permitted by the second preceding sentence or the Agreement relating to
the Award, no award may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so sell,
transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any such award, such award and all rights thereunder shall immediately become null and void. 
  
 7.5 Tax Withholding. The Company shall have the right to require, prior to the issuance or delivery of any
shares of Common Stock or the payment of any cash pursuant to an award made hereunder, payment by the holder of such award of any federal, state, local or other taxes which may be required to be withheld or paid in connection with such award. An
Agreement may provide that (i) the Company shall withhold whole shares of Common Stock which would otherwise be delivered to a holder, having an aggregate Fair Market Value determined as of the date the obligation to withhold or pay taxes arises in
connection with an award (the “Tax Date”), or withhold an amount of cash which would otherwise be payable to a holder, in the amount necessary to satisfy any such obligation or (ii) the holder may satisfy any such obligation by any
of the following means: (A) a cash payment to the Company, (B) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of Mature Shares having an aggregate Fair Market Value, determined as of the Tax
Date, equal to the amount necessary to satisfy any such obligation, (C) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or
withhold an amount of cash which would otherwise be payable to a holder, equal to the amount necessary to satisfy any such obligation, (D) in the case of the exercise of an option, a cash payment by a broker-dealer acceptable to the Company to whom
the optionee has submitted an irrevocable notice of exercise or (E) any combination of (A), (B) and (C), in each case to the extent set forth in the Agreement relating to the award; provided, however, that the Company shall have sole
discretion to disapprove of an election pursuant to any of clauses (ii)(B)-(E). Any fraction of a share of Common Stock which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by
the holder. 
  
  

 14 

 7.6 Restrictions on Shares. Each award made hereunder shall be subject to the requirement
that if at any time the Company determines that the listing, registration or qualification of the shares of Common Stock subject to such award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the
taking of any other action is necessary or desirable as a condition of, or in connection with, the exercise or settlement of such award or the delivery of shares thereunder, such award shall not be exercised or settled and such shares shall not be
delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Committee may provide for such restrictions upon the
transferability of shares of Common Stock delivered pursuant to any award made hereunder as it deems appropriate and such restrictions shall be specified in the Agreement relating to such award. The Company may require that certificates evidencing
shares of Common Stock delivered pursuant to any award made hereunder bear a legend indicating that the sale, transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the
rules and regulations thereunder and such other restrictions, if any, specified in the Agreement relating to the award pursuant to which such shares were delivered. 
  
 7.7 Adjustment. In the event of any stock split, reverse stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock other than a regular cash dividend, the class of
securities available under this Plan, the number and class of securities subject to each outstanding option and the purchase price per security, the terms of each outstanding SAR, the number and class of securities subject to each outstanding Stock
Award or Performance Share Award, and the terms of each outstanding Restricted Stock Award or Performance Share Award shall be appropriately adjusted by the Committee, such adjustments to be made in the case of outstanding options and SARs without
an increase in the aggregate purchase price or base price. The decision of the Committee regarding any such adjustment shall be final, binding and conclusive. If any such adjustment would result in a fractional security being (a) available under
this Plan, such fractional security shall be disregarded, or (b) subject to an award under this Plan, the Company shall pay the holder of such award, in connection with the first vesting, exercise or settlement of such award in whole or in part
occurring after such adjustment, an amount in cash determined by multiplying (i) the fraction of such security (rounded to the nearest hundredth) by (ii) the excess, if any, of (A) the Fair Market Value on the vesting, exercise or settlement date
over (B) the exercise or base price, if any, of such award. 
  
 7.8 Change in Control. 
  
 (a) (1)
Notwithstanding any provision in this Plan or any Agreement, in the event of a Change in Control in connection with which the holders of Common Stock receive shares of common stock that are registered under Section 12 of the Exchange Act, (i) all
outstanding options and SARS shall immediately become exercisable in full, (ii) the Restriction Period applicable to any outstanding Restricted Stock Award shall lapse, (iii) the Performance Period applicable to any outstanding Performance Share
Award shall lapse, (iv) the Performance Measures applicable to any outstanding award shall be deemed to be satisfied at the maximum level and (v) there shall be substituted for each share of Common Stock available under this Plan, whether or not
then subject to an outstanding award, the number and class of shares into 
  

 15 

 which each outstanding share of Common Stock shall be converted pursuant to such Change in Control. In the event of any
such substitution, the purchase price per share in the case of an option and the base price in the case of an SAR shall be appropriately adjusted by the Committee (whose determination shall be final, binding and conclusive), such adjustments to be
made in the case of outstanding options and SARs without an increase in the aggregate purchase price or base price. 
  
 (2) Notwithstanding any provision in this Plan or any Agreement, in the event of any Change in Control other than a Change in Control in connection with
which the holders of Common Stock receive shares of common stock that are registered under Section 12 of the Exchange Act, each outstanding award shall be surrendered to the Company by the holder thereof, and each such award shall immediately be
cancelled by the Company, and the holder shall receive, within ten days of the occurrence of a Change in Control, a cash payment from the Company in an amount equal to (i) in the case of an option, the number of shares of Common Stock then subject
to such option, multiplied by the excess, if any, of the greater of (A) the highest per share price offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a share of Common
Stock on the date of occurrence of the Change in Control, over the purchase price per share of Common Stock subject to the option, (ii) in the case of a Free-Standing SAR, the number of shares of Common Stock then subject to such SAR, multiplied by
the excess, if any, of the greater of (A) the highest per share price offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a share of Common Stock on the date of
occurrence of the Change in Control, over the base price of the SAR, (iii) in the case of a Restricted Stock Award or Performance Share Award, the number of shares of Common Stock or the number of Performance Shares, as the case may be, then subject
to such award, multiplied by the greater of (A) the highest per share price offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (B) the Fair Market Value of a share of Common Stock on the date of
occurrence of the Change in Control. In the event of such a Change in Control, each Tandem SAR shall be surrendered by the holder thereof and shall be cancelled simultaneously with the cancellation of the related option. The Company may, but is not
required to, cooperate with any person who is subject to Section 16 of the Exchange Act to assure that any cash payment in accordance with the foregoing to such person is made in compliance with Section 16 and the rules and regulations thereunder.

  
 (b) “Change in Control” shall mean: 
  
 (1) a sale or transfer of all or substantially all of the assets of the
Company on a consolidated basis in any transaction or series of related transactions; 
  
 (2) any merger, consolidation or reorganization to which the Company is a party, except for a merger, consolidation or reorganization in which the Company is the surviving corporation and, after giving effect to such
merger, consolidation or reorganization, the holders of the Company’s outstanding equity (on a fully diluted basis) immediately prior to the merger, consolidation or reorganization will own in the aggregate immediately following the merger,
consolidation or reorganization the Company’s outstanding equity (on a fully diluted basis) either (i) having the ordinary voting power to elect a majority of the members of the Company’s board of directors to be elected by the holders of
Common Stock and any other class which votes 
  

 16 

 together with the Common Stock as a single class or (ii) representing at least 50% of the equity value of the Company as
reasonably determined by the Board; 
  
 (3) individuals who, as of
the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided, however, that any individual who becomes a director of the Company
subsequent to the date hereof whose election, or nomination for election by the holders of the Company’s equity, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed to have been a
member of the Incumbent Board; and provided further, that no individual who was initially elected as a director of the Company as a result of an actual or threatened solicitation by any individual, entity or group (a “Person”) other
than the Board, including any “person” within the meaning of Section 13(d) of the Exchange Act, for the purpose of opposing a solicitation by any other Person with respect to the election or removal of 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 have been a member of the Incumbent Board; or 
  
 (4) any Person other than KPMG LLP or its affiliates, acquires beneficial ownership of 30% or more of the outstanding equity
of the Company generally entitled to vote on the election of directors. 
  
 7.9 No Right of Participation or Employment. No person shall have any right to participate in this Plan. Neither this Plan nor any award made hereunder shall confer upon any person any right to continued employment by the
Company or any Affiliate of the Company or affect in any manner the right of the Company or any Affiliate of the Company to terminate the employment of any person at any time without liability hereunder. 
  
 7.10 Rights as Stockholder. No person shall have any right as a
stockholder of the Company with respect to any shares of Common Stock or other equity security of the Company which is subject to an award hereunder unless and until such person becomes a stockholder of record with respect to such shares of Common
Stock or equity security. 
  
 7.11 Designation of
Beneficiary. If permitted by the Company, a holder of an award may file with the Committee a written designation of one or more persons as such holder’s beneficiary or beneficiaries (both primary and contingent) in the event of the
holder’s death. To the extent an outstanding option or SAR granted hereunder is exercisable, such beneficiary or beneficiaries shall be entitled to exercise such option or SAR. Each beneficiary designation shall become effective only when filed
in writing with the Committee during the holder’s lifetime on a form prescribed by the Committee. The spouse of a married holder domiciled in a community property jurisdiction shall join in any designation of a beneficiary other than such
spouse. The filing with the Committee of a new beneficiary designation shall cancel all previously filed beneficiary designations. If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder predecease the holder,
then each outstanding option and SAR hereunder held by such holder, to the extent exercisable, may be exercised by such holder’s executor, administrator, legal representative or similar person. 
  
 7.12 Governing Law. This Plan, each award hereunder and the
related Agreement, and all determinations made and actions taken pursuant thereto, to the extent not otherwise 
  

 17 

 governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware and
construed in accordance therewith without giving effect to principles of conflicts of laws. 
  
 7.13 Granting Awards to Foreign Persons. Without the amendment of this Plan, the Committee may grant awards to persons designated by the Committee from time to time, who otherwise are eligible persons
under Section 1.4 and who are subject to the laws of foreign countries or jurisdictions. The Committee may grant awards to such persons on such terms and conditions different from those specified in this Plan as may in the judgment of the Committee
be necessary or desirable to foster and promote achievement of the purposes of this Plan and, in furtherance of such purposes, the Committee may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable
to comply with provisions of the laws of other countries or jurisdictions in which the Company or its Affiliates operate or have employees or other persons who are eligible persons under Section 1.4. 
  
 7.14 Additional Provisions Applicable to Options Granted Prior to
IPO. In order to comply with certain requirements of the California Corporate Securities Law of 1968, as amended, this Section shall apply to options granted under this Plan prior to an IPO (a “Pre-IPO Option”). The terms set forth
in the Agreements pursuant to which Pre-IPO Options are granted on January 31, 2000 (the “January 31, 2000 Options”) relating to (i) the period during which an option may be exercised, (ii) the exercise, cancellation or other disposition
of an option upon a termination of employment with the Company of the recipient of such option, whether by reason of Disability, Retirement, death or any other reason, (iii) restrictions on the transferability of an option and (iv) the providing of
annual financial statements to the holder of an option are hereby incorporated into this Plan by reference as if set forth herein verbatim and shall apply in all respects only to all Pre-IPO Options granted to eligible persons; provided, however,
that Pre-IPO Options may be granted under this Plan having exercise periods different from those of the January 31, 2000 Options so long as each such Pre-IPO Option becomes exercisable at a rate of at least 20% per year during the five-year period
commencing on the date of grant of such Pre-IPO Option. 
  

 18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]