Document:

calx-2013.12.31-EX10.15 AtkinsOfferLetter121813

Exhibit 10.15

Petaluma Headquarters 
1035 N. McDowell Blvd. 
Petaluma, CA 94954 
Phone: 707-766-3000 
Fax: 707-283-3100 

December 18, 2013
                            

William Atkins
3600 Macomb St., NW 
Washington, DC 20016-3164

Dear William:

On behalf of Calix, Inc. (the "Company"), I am pleased to offer you this employment agreement for the full time position of Executive Vice President (EVP) and Chief Financial Officer (CFO), of the Company, contingent on approval of the terms of this offer by the Compensation Committee of the Calix Board of Directors. 
The terms of your position with the Company are as set forth below: 
1.Position. 
(a)    You will become the EVP, CFO of the Company, initially working out of the Company's headquarters office in Petaluma, California. You will report directly to Carl Russo, President and Chief Executive Officer of the Company.
(b)    You agree to the best of your ability and experience that you will at all times loyally and conscientiously perform all of the duties and obligations required of and from you pursuant to the express and implicit terms hereof, and to the reasonable satisfaction of the Company. During the term of your employment, you further agree that:
(1)    you will devote all of your business time and attention to the business of the Company, 
(2)    the Company will be entitled to all of the benefits and profits arising from or incident to all such work services and advice, 
(3)    you will not render commercial or professional services of any nature to any person or organization, whether or not for compensation, without the prior written consent of the Company's Board of Directors, and
(4)    you will not directly or indirectly engage or participate in any business that is competitive in any manner with the business of the Company. 

Notwithstanding the foregoing, however, you shall be permitted to continue to serve on the boards of directors of the companies set forth on Attachment A hereto; provided, however, that you will devote only such time to those companies as is required to properly discharge your fiduciary duties thereto and you shall, as situations allow, make a good faith effort to resign from such boards as soon as practicable. Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for honoraria or from serving on boards of charitable organizations, from owning no more than 1% of the outstanding equity securities of a corporation whose stock is listed on a national stock exchange, or from investing in the two private companies listed on Attachment A1. 
2.    Effective Date.  Subject to fulfillment of any conditions imposed by this letter agreement, the terms of this agreement shall commence February 5, 2014. 
3.    Proof of Right to Work.  For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States, once obtained. Such documentation must be provided to us within three business days of your receipt, or our relationship with you may be terminated.  Until such time as your work permit is approved, you will perform your services as CFO to the Company through your personal service company, Arbor LLC.
4.    Compensation.  You will receive a base salary of $11,538.46 every two weeks, which equates to $300,000.00 annually, on the Company's regular payroll dates and subject to applicable tax withholding. In addition, you will be eligible to receive a 2014 bonus targeted at 50% of your annualized base salary based on meeting objectives and funding approved by the Compensation Committee.
5.    Signing Bonus.  In addition, you will be paid a one-time lump sum sign-on bonus of $20,000, subject to applicable tax withholding, on the first pay period following your date of hire.  This sign-on bonus is contingent on you signing and returning the enclosed Sign-On Bonus Repayment Agreement.    
6.    Change in Control and Severance Plan.  You will be eligible to participate in the Calix, Inc. Executive Change in Control and Severance Plan (“CIC Plan”) as a “Senior Executive” (as defined in the CIC Plan).  A copy of the CIC Plan is attached as Attachment B.
7.    Stock Option Grant. In connection with the commencement of your employment, the Company will recommend that the Board of Directors grant you an option to purchase 300,000 shares of the Company's Common Stock ("Shares") with an exercise price equal to the fair market value on the date of the grant, as determined by the Board of Directors. This option will vest during the period that you remain continuously employed by the Company at the rate of 25% of the Shares on the one year anniversary of the Effective Date, with the remainder of the Shares vesting monthly thereafter in equal installments over the next 36 months. 
8.    Option Terms. To the maximum extent allowed by law, the options will be subject to the terms of the Company's 2010 Stock Plan and the Stock Option Agreements between you and the Company. 

9.    Benefits. 
(a)    Insurance Benefits. The Company will provide you with the opportunity to participate in the standard benefits plans currently available to other executive-level employees of the Company, subject to any eligibility requirements imposed by such plans. 
(b)    Vacation; Sick Leave. You will be entitled to such number of paid vacation days per year equivalent to that provided to other executive-level employees of the Company. Vacation accrues ratably per pay period and may not be taken before it is accrued. 
(c)    Business Expenses. The Company shall reimburse you, following submission of appropriate documentation, for the reasonable travel, entertainment, cellular telephone and other business expenses incurred in connection with your duties to the Company, other than any expenses related to travel on personal or private aircraft, subject to the Company's expenditure and reimbursement guidelines. 
(d)    Work Permits.    The Company will provide assistance in procuring the necessary work permits for you and any dependents accompanying you, and will bear the cost of any immigration counsel necessary in connection therewith.  The Company will assist in the procurement of your permanent residence.
10.    Relocation.    The Company will pay for reasonable costs associated with household goods relocation for you and your, shipment of personal vehicles, and temporary storage for up to one year, up to a maximum budget of $45,000.  Your Company sponsored move will be coordinated through Crown Relocation in accordance with the above limits and the Calix approved relocation policy.
11.    Temporary Housing.        The Company will also pay the cost of relocation travel from Washington DC to San Francisco CA.  In addition the Company will pay rent, utilities, and lease related charges for temporary housing in San Francisco, CA for up to 12 months, subject to a cap of $8,500 per month.  
12.    Confidential Information and Invention Assignment Agreement.  Your acceptance of this offer and commencement of employment with the Company is contingent upon your continued adherence to the terms and conditions of the Company's Confidential Information and Invention Assignment Agreement. A copy of your signed agreement is enclosed as Attachment B. 
13.    No Conflicts.  You understand and agree that by accepting this offer of employment, you represent to the Company that your performance will not breach any other agreement to which you are a party and that you have not, and will not during the term of your employment with the Company, enter into any oral or written agreement in conflict with any of the provisions of this letter or the Company's policies. You will not use or disclose to any person associated with the Company, any confidential or proprietary information belonging to any former employer or other third party with respect to which you owe an obligation of confidentiality under any agreement or otherwise. The Company does not need and will not use such information and we will assist you in any way possible to preserve and protect the confidentiality of proprietary information belonging to third parties. We also expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and 

suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires. 
14.         At-Will Employment.  Your employment with the Company is on an "at will" basis, meaning that either you or the Company may terminate your employment at any time, with or without cause or advance notice, without further obligation or liability other than as expressly set forth in this letter. The Company also reserves the right to modify or amend the terms of your employment at any time at its sole discretion with reasonable advance notice, subject to the provisions of this letter. This policy of at-will employment is the entire agreement as to the duration of your employment and may only be modified in an express written agreement signed by an appropriate officer of the Company. 
15.    Equal Opportunity/Affirmative Action.  As an employee, you will be expected to adhere to the Company's standards of professionalism, loyalty, integrity, honesty, reliability and respect for all. The Company is an equal opportunity and affirmative action employer that does not permit, and will not tolerate, the unlawful discrimination or harassment of any employees, consultants, or third parties on the basis of sex, race, color, religion, age, national origin or ancestry, marital status, veteran status, mental or physical disability or medical condition, sexual orientation, pregnancy, childbirth or related medical condition, or any other status protected by law. Any questions regarding these policies should be directed to Human Resources. 
16.    Disability Accommodation.  Calix does not discriminate against disabled applicants who are otherwise qualified and able to perform the essential functions of a particular position.  If you are an individual with a disability and require reasonable accommodation in order to perform the essential functions of your position, please contact Mimi Gigoux, SVP, Talent and Culture.  If the accommodation can be accomplished without creating an undue hardship, Calix will be happy to cooperate in making this accommodation.
We are all delighted to be able to extend you this offer and look forward to working with you. To indicate your acceptance of the Company's offer, please sign and date this letter in the space provided below and return it to me. This letter may not be modified or amended except by a written agreement, signed by the Company and by you. 
	
					
	Very truly yours, 

CALIX, INC.
	 
	ACCEPTED AND AGREED:

	By:
	/s/ Mimi Gigoux
	 
	/s/ William Atkins

	 
	Mimi Gigoux
	 
	William Atkins

	Title:  SVP, Talent & Culture
	 
	Date:
	December 21, 2013

Attachment A:    List of Board Commitments
Attachment A1: List of Private Investments
Attachment B:    Confidential Information and Invention Assignment Agreementcalx-2013.12.31-EX10.16 AshbyTransitionandSeparationAgrmt

Exhibit 10.16

TRANSITION AND SEPARATION AGREEMENT

This Transition and Separation Agreement (“Agreement”) is made by and between Michael Ashby (“Executive”) and Calix, Inc., a Delaware corporation (“Company”), effective as of February 11, 2014 (“Effective Date”), with reference to the following facts:

A.    Executive currently serves as the Executive Vice President and Chief Financial Officer of the Company.

B.      Executive and the Company desire for Executive to transition to the role of Executive Vice President and Chief Accounting Officer effective as of February 11, 2014 (“Transition Date”), and to continue to serve as the Company’s principal financial officer and principal accounting officer.

C.    Executive and the Company desire for Executive to transition to the role of Advisor to the Chief Executive Officer and Chief Financial Officer effective as of March 1, 2014, at which point Executive will no longer serve as the Company’s principal financial officer and principal accounting officer.

D.     Executive and the Company desire for Executive to terminate employment with the Company as of August 11, 2014 (“Termination Date”).    

E.    Executive and the Company want to transition Executive’s duties and end their relationship amicably and also to establish the obligations of the parties including, without limitation, all amounts due and owing to Executive.

The parties agree as follows:

1.Continued Employment.  Unless Executive is terminated by the Company for Cause (within the meaning of the Company’s Executive Change in Control and Severance Plan (“Severance Plan”)) or Executive voluntarily resigns from the Company, Executive shall continue to serve as the Company’s Executive Vice President and Chief Financial Officer and continue his current duties and responsibilities, compensation arrangements and benefit plans until the Transition Date.  Executive acknowledges that, while continuing to serve as the Company’s Executive Vice President and Chief Financial Officer or Executive Vice President and Chief Accounting Officer, Executive shall continue to be subject to the requirements of Section 16 of by the Securities Exchange Act of 1934, as amended (“Exchange Act”).  Executive shall no longer be eligible to participate in the Severance Plan and Executive’s letter agreement with the Company under the Severance Plan shall be deemed terminated and superseded in its entirety by this Agreement.
2.    Transition Period.
(a)    Transition Period.  Unless Executive’s employment with the Company is terminated by the Company for Cause or Executive voluntarily resigns from the Company, during the period of time (“Transition Period”) commencing on the Transition Date and ending on the Termination Date, Executive shall remain employed by the Company, first as Executive Vice President and Chief Accounting Officer (through February 28, 2014), continuing to serve as the Company’s principal financial officer and principal accounting officer, and from and after March 1, 2014, as 

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Advisor to the Chief Executive Officer and Chief Financial Officer, at which point Executive will no longer serve as the Company’s principal financial officer and principal accounting officer.  Executive shall provide transition services in Executive’s areas of expertise and work experience and responsibility and such other duties as shall be assigned by the Chief Executive Officer or other officer of the Company designated by the Chief Executive Officer (“Transition Duties”).  Executive acknowledges and agrees that, during the Transition Period, Executive shall not, directly or indirectly, become employed by or provide assistance to any Competitor (as defined below) of the Company and may only accept employment with a Competitor if Executive receives written consent from the Company’s Chief Executive Officer.  Executive shall otherwise devote such time and attention to Executive’s Transition Duties as shall reasonably be required.  For purposes of this Agreement, “Competitor” means any company that could reasonably be considered to be a competitor of Company, including without limitation all of the following entities and their respective parents, affiliates and subsidiaries:  Accedian Networks Inc.; ADTRAN, Inc.; Alcatel-Lucent, S.A.; BTI Systems Inc.; CIENA Corp.; Cisco Systems, Inc.; Cyan, Inc.; Huawei Technologies Co., Ltd.; Tellabs Inc.; Zhone Technologies Inc.; and ZTE Corporation.
(b)    Salary and Benefits Continuation.  During the Transition Period, Executive will continue to be paid an annual base salary of $280,000, paid in bi-weekly installments in accordance with the Company’s standard payroll practices, accrue paid vacation and be eligible for all employee benefit plans available to senior executives of the Company (other than the Severance Plan) through the Termination Date.  All payments made to Executive during the Transition Period will be subject to standard payroll deductions and withholdings.  
(c)    Equity Awards.  Each stock option, restricted stock award and restricted stock unit award held by Executive shall continue to vest in accordance with its terms and remain outstanding based upon Executive’s continued service during the Transition Period. 
(d)    Business Expenses.  The Company shall reimburse Executive for all outstanding expenses incurred prior to the Termination Date which are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documenting such expenses.  
(e)    SEC Reporting.  Executive acknowledges that to the extent required by the Exchange Act, Executive will have continuing obligations under Section 16(a) and 16(b) of the Exchange Act to report his transactions in Company common stock for six months following the Transition Date. 
(f)    Protection of Information.  Executive agrees that, during the Transition Period and thereafter, Executive will not, except for the purposes of performing the Transition Duties, seek to obtain any confidential or proprietary information or materials of the Company.
3.    Final Paycheck.  Executive acknowledges and agrees that, unless Executive’s employment with the Company is terminated earlier by the Company for Cause or by Executive for any reason, Executive’s status as an employee of the Company will end effective as of the Termination Date.  As soon as administratively practicable on or after the Termination Date, the Company will pay Executive all accrued but unpaid base salary and all accrued and unused vacation earned through the Termination Date, subject to standard payroll deductions and withholdings.  Executive is entitled to these payments regardless of whether Executive executes or revokes this Agreement or the Release of Claims (as defined 

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below).  Following the Termination Date, Executive may elect to receive continued healthcare coverage under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
4.    Full Payment.  Executive acknowledges that the payment and arrangements set forth above shall constitute full and complete satisfaction of any and all amounts due and owing to Executive as a result of his employment with the Company and the termination thereof.  
5.    Executive’s Release of the Company.  Executive understands that by agreeing to the release provided by this Section 5, Executive is agreeing not to sue, or otherwise file any claim against, the Company or any of its employees or other agents for any reason whatsoever based on anything that has occurred as of the date Executive signs this Agreement.
(a)    On behalf of Executive and Executive’s heirs, assigns, executors, administrators, trusts, spouse and estate, Executive releases and forever discharges the “Releasees,” consisting of the Company, and each of its owners, affiliates, subsidiaries, predecessors, successors, assigns, agents, directors, officers, partners, employees, and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (“Claims”), which Executive now has or may later have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the Effective Date, including, without limitation, any Claims arising out of, based upon, or relating to Executive’s hire, employment, remuneration or resignation by the Releasees, or any of them, Claims arising under federal, state, or local laws relating to employment, Claims of any kind that may be brought in any court or administrative agency, including any Claims arising under Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. § 2000 et seq.; the Equal Pay Act, 29 U.S.C. § 206(d); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the False Claims Act, 31 U.S.C. § 3729 et seq.; the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C.  § 2101 et seq.; the Fair Labor Standards Act, 29 U.S.C. § 215 et seq.; the Sarbanes-Oxley Act of 2002; the California Labor Code; the employment and civil rights laws of California; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.
(b)    Executive does not release the following claims:
(i)    Claims for unemployment compensation or any state disability insurance benefits under the terms of state law; 
(ii)    Claims for workers’ compensation insurance benefits under the terms of any worker’s compensation insurance policy or fund of the Company;
(iii)    Claims to continued participation in certain of the Company’s group benefit plans under the terms and conditions of COBRA;

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(iv)    Claims to any benefit entitlements vested as the date of Executive’s employment termination, under written terms of any Company employee benefit plan;
(v)    Claims for indemnification under the Company’s Bylaws, , California Labor Code Section 2802 or any other applicable law; and
(vi)    Executive’s right to bring to the attention of the Equal Employment Opportunity Commission claims of discrimination; provided, however, that Executive does release Executive’s right to secure any damages for alleged discriminatory treatment.
(c)    EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
(d)    BEING AWARE OF SAID CODE SECTION, EXECUTIVE EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.
6.    Non-Disparagement, Transition, Transfer of Company Property and Limitations on Service.  Executive further agrees that:
(a)    Non-Disparagement.  Executive agrees that he shall not disparage, criticize or defame the Company, its affiliates and their respective affiliates, directors, officers, agents, partners, stockholders, employees, products, services, technology or business, either publicly or privately.  The Company agrees that it shall not, and it shall instruct its officers and members of its Board of Directors to not, disparage, criticize or defame Executive, either publicly or privately.  Nothing in this Section 7(a) shall have application to any evidence or testimony required by any court, arbitrator or government agency.
(b)    Transition.  Each of the Company and Executive shall use their respective reasonable efforts to cooperate with each other in good faith to facilitate a smooth transition of Executive’s duties to other executive(s) of the Company.
(c)    Transfer of Company Property.  On or before the Termination Date, Executive shall turn over to the Company all files, memoranda, records, and other documents, and any other physical or personal property which are the property of the Company and which he has in his possession, custody or control on the Termination Date.
7.    Executive Representations.  Executive warrants and represents that (a) he has not filed or authorized the filing of any complaints, charges or lawsuits against the Company or any affiliate of the Company with any governmental agency or court, and that if, unbeknownst to Executive, such a complaint, charge or lawsuit has been filed on his behalf, he will immediately cause it to be withdrawn and dismissed, (b) he has reported all hours worked as of the date of this Agreement and has been paid all compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and no other compensation, wages, bonuses, commissions and/or benefits are due to him, except as provided in this 

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Agreement, (c) he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family and Medical Leave Act or any similar state law, (d) the execution, delivery and performance of this Agreement by Executive does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject, and (e) upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will be a valid and binding obligation of Executive, enforceable in accordance with its terms.  
8.    No Assignment by Executive.  Executive warrants and represents that no portion of any of the matters released, and no portion of any recovery or settlement to which Executive might be entitled, has been assigned or transferred to any other person, firm or corporation not a party to this Agreement, in any manner, including by way of subrogation or operation of law or otherwise.  If any claim, action, demand or suit should be made or instituted against the Company or any other Releasee because of any actual assignment, subrogation or transfer by Executive, Executive agrees to indemnify and hold harmless the Company and all other Releasees against such claim, action, suit or demand, including necessary expenses of investigation, attorneys’ fees and costs.  In the event of Executive’s death, this Agreement shall inure to the benefit of Executive and Executive’s executors, administrators, heirs, distributees, devisees, and legatees.  None of Executive’s rights or obligations may be assigned or transferred by Executive, other than Executive’s rights to payments under this Agreement, which may be transferred only upon Executive’s death by will or operation of law.  
9.    Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California or, where applicable, United States federal law, in each case, without regard to any conflicts of laws provisions or those of any state other than California.  The parties consent to the exclusive jurisdiction of, and venue in, the state and federal courts within San Francisco County, California for the resolution of any disputes arising out of or in any way related to this Agreement.  
10.    Miscellaneous.  This Agreement, collectively with the Confidentiality Agreement, the Release of Claims and the agreements evidencing the outstanding equity awards, constitutes the entire agreement between the parties with regard to its subject matter and supersedes, in their entirety, any other agreements between Executive and the Company with regard to its subject matter. Executive acknowledges that there are no other agreements, written, oral or implied, and that he may not rely on any prior negotiations, discussions, representations or agreements.  This Agreement may be modified only in writing, and such writing must be signed by Executive and an authorized officer or director of the Company and recited that it is intended to modify this Agreement.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.  
11.    Company Assignment and Successors.  The Company shall assign its rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise).  This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns, personnel and legal representatives.    
12.    Maintaining Confidential Information.  Executive reaffirms his obligations under his Confidentiality Agreement.    
13.    Executive’s Cooperation.  After the Termination Date, Executive shall cooperate with the Company and its affiliates, upon the Company’s reasonable request, with respect to any internal 

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investigation or administrative, regulatory or judicial proceeding involving matters within the scope of Executive’s duties and responsibilities to the Company or its affiliates during his employment with the Company (including, without limitation, Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s reasonable request to give testimony without requiring service of a subpoena or other legal process, and turning over to the Company all relevant Company documents which are or may have come into Executive’s possession during his employment); provided, however, that any such request by the Company shall not be unduly burdensome or interfere with Executive’s personal schedule or ability to engage in gainful employment.   

	
				
	DATED:  February 7, 2014
	 
	/s/ Michael Ashby

	 
	 
	Michael Ashby

	 
	 
	 
	 

	 
	 
	Calix, Inc.

	DATED:  February 7, 2014
	 
	By:
	/s/ Mimi Gigoux

	 
	 
	 
	Mimi Gigoux

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