Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

TRUST UNDER CH2M HILL COMPANIES, LTD.
  2002 AFTER-TAX DEFERRED COMPENSATION PLAN    
  

        (a)  This
Agreement made this 9th day of November, 2001, by and between CH2M HILL Companies, Ltd. ("Company") and Wells Fargo ("Trustee"); 

        (b)  WHEREAS,
Company has adopted the CH2M HILL Companies, Ltd. 2002 After-Tax Deferred Compensation Plan (the "Plan") for the benefit of employees of
Company and employees of certain affiliates of Company ("Participating Affiliates") whose employees participate in the Plan; 

        (c)  WHEREAS,
Company and the Participating Affiliates have incurred or expect to incur liability under the terms of such Plan with respect to the individuals participating
in such Plan; 

        (d)  WHEREAS,
Company wishes to establish a trust (hereinafter called "Trust") and to contribute to the Trust assets that shall be held therein, subject to the claims of
Company's creditors in the event of Company's Insolvency, as herein defined, and, to the extent described below, subject to the claims of each Participating Affiliate's creditors in the event of the
Participating Affiliate's Insolvency, as herein defined, until paid to Plan participants and their beneficiaries in such manner and at such times as specified in the Plan; and 

        (e)  WHEREAS,
it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan; 

        NOW,
THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows: 

Section 1

Establishment of Trust  

        (a)  Company
hereby deposits with Trustee in trust $1 in cash, which shall become the principal of the Trust to be held, administered and disposed of by Trustee as provided
in this Agreement. 

        (b)  The
Trust hereby established shall be revocable by Company. 

        (c)  The
Trust is intended to be a grantor trust, of which Company is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the
Internal Revenue Code of 1986, as amended, and shall be construed accordingly. 

        (d)  The
principal of the Trust, and earnings (if any) thereon, shall be held separate and apart from other funds of Company or a Participating Affiliate and shall be used
exclusively for the uses and purposes of Plan participants and general creditors of Company and Participating Affiliates as herein set forth. Plan participants and their beneficiaries shall have no
preferred claim on, or any beneficial ownership interest in, any assets of the Trust. Any rights created under the Plan and this Agreement shall be mere unsecured contractual rights of Plan
participants and their beneficiaries against Company or a Participating Affiliate. Any assets held by the Trust will be subject to the claims of Company's and, to the extent set forth below,
Participating Affiliates' general creditors under federal and state law in the event of Insolvency, as defined in Section 3(a) herein. 

        (e)  Company
may at any time, or from time to time, make additional deposits of cash or shares of common stock of Company ("Common Stock") in trust with Trustee to augment
the principal to be held, administered and disposed of by Trustee as provided in this Agreement. Trustee shall not have any right to compel such additional deposits. 

        (f)    When
Company deposits cash or Common Stock with Trustee, Company shall inform Trustee in writing of the Plan participant with respect to whom such deposit is made and of
the Participating Affiliate by which such Plan participant is employed. Trustee shall establish and maintain a separate recordkeeping account in the name of each Plan participant and shall credit that
recordkeeping account with a number of units (referred to as "Share Value Equivalent Units," or "SVEUs") equal to the number of shares of Common Stock deposited by Company with Trustee with respect to
that Plan participant. Trustee shall also credit the recordkeeping account maintained in the name of each Plan 

 

participant with the amount of cash deposited by Company with Trustee with respect to that Plan participant. Trustee shall also credit the recordkeeping account maintained in the name of each Plan
participant with an amount equal to earnings (if any) of the Trust on any assets credited to the recordkeeping account maintained in the name of that Plan participant, other than cash dividends paid
with respect to the Common Stock (which shall be paid over to Company in accordance with Section 5). When Trustee uses cash credited to a recordkeeping account maintained in the name of a Plan
participant to purchase shares of Common Stock, the recordkeeping account maintained in the name of that Plan participant shall be reduced to reflect the amount of cash used to purchase the shares of
Common Stock and the recordkeeping account maintained in the name of that Plan participant shall be credited with a number of SVEUs equal to the number of shares of Common Stock so purchased. Trustee
shall allocate the assets of the Trust to separate accounts or sub-trusts based on the Participating Affiliate by which the Plan participant is employed, so that each separate account or
sub-trust will contain only those assets associated with the recordkeeping accounts of employees or former employees of that Participating Affiliate. 

Section 2

Payments to Plan Participants and Their Beneficiaries  

        (a)  Company
shall deliver to Trustee a schedule (the "Payment Schedule") that indicates the amount payable in respect of each Plan participant (and his or her
beneficiaries), that provides a formula or other instructions acceptable to Trustee for determining the amounts so payable, the form in which such amount is to be paid (as provided for or available
under the Plan), and the time of commencement for payment of such amounts. The Payment Schedule may be modified from time to time by Company. Except as otherwise provided herein, Trustee shall make
payments to the Plan participants and their beneficiaries in accordance with such Payment Schedule. Payments to Plan participants employed or previously employed by a Participating Affiliate or their
beneficiaries shall only be made from the separate account or sub-trust allocated to that Participating Affiliate. Trustee shall make provision for the reporting and withholding of any
federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and shall pay amounts withheld to the appropriate taxing
authorities or determine that such amounts have been reported, withheld and paid by Company or a Participating Affiliate. 

        (b)  The
entitlement of a Plan participant or his or her beneficiaries to benefits under the Plan shall be determined by Company or such party as it shall designate under the
Plan, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plan. 

        (c)  Company
may make payment of benefits directly to Plan participants or their beneficiaries as they become due under the terms of the Plan. A Participating Affiliate may
make payment of benefits directly to Plan participants employed or previously employed by the Participating Affiliate or their beneficiaries as they become due under the terms of the Plan. Company
shall notify Trustee of its decision or the decision of a Participating Affiliate to make payment of benefits directly prior to the time amounts are payable to participants or their beneficiaries. If
the principal of a separate account or sub-trust allocated to a Participating Affiliate, and earnings (if any) thereon, are not sufficient to make payment of benefits to Plan participants
employed by or previously employed by that Participating Affiliate and their beneficiaries in accordance with the terms of the Plan, Company or the Participating Affiliate shall make the balance of
each such payment as it falls due. If the entire principal of the Trust, and earnings (if any) thereon, are not sufficient to make payment of benefits in accordance with the terms of the Plan, Company
shall make the balance of each such payment as it falls due. Trustee shall notify Company when assets of the Trust are not sufficient. 

2

 

Section 3

Trustee Responsibility Regarding Payments to Trust Beneficiaries

when Company or a Participating Affiliate Is Insolvent  

        (a)  Trustee
shall cease payment of benefits to Plan participants and their beneficiaries if Company is Insolvent. Trustee shall cease payment of benefits to Plan
participants employed by or previously employed by a Participating Affiliate and their beneficiaries if the Participating Affiliate is Insolvent. Company shall be considered "Insolvent" for purposes
of this Agreement if (1) Company is unable to pay its debts as they become due, or (2) Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. A
Participating Affiliate shall be considered "Insolvent" for purposes of this Agreement if (1) the Participating Affiliate is unable to pay its debts as they become due, or (2) the
Participating Affiliate is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 

        (b)  At
all times during the continuance of this Trust, as provided in Section 1(d) hereof, the principal and income of the Trust shall be subject to claims of general
creditors of Company and Participating Affiliates under federal and state law as set forth below. 

          (i)  The
Board of Directors and the Chief Executive Officer of Company shall have the duty to inform Trustee in writing of Company's Insolvency and of any Participating
Affiliate's Insolvency. If a person claiming to be a creditor of Company or of a Participating Affiliate alleges in writing to Trustee that Company or a Participating Affiliate has become Insolvent,
Trustee shall determine whether Company or the Participating Affiliate is Insolvent. Pending such determination, Trustee shall discontinue
payment of benefits to Plan participants or their beneficiaries (if Company is alleged to be Insolvent) or to Plan participants employed or previously employed by the allegedly Insolvent Participating
Affiliate or their beneficiaries (if a Participating Affiliate is alleged to be Insolvent). 

        (ii)  Unless
Trustee has actual knowledge of Company's or a Participating Affiliate's Insolvency, or has received notice from Company or a person claiming to be a creditor
alleging that Company or a Participating Affiliate is Insolvent, Trustee shall have no duty to inquire whether Company or a Participating Affiliate is Insolvent. Trustee may in all events rely on such
evidence concerning Company's or a Participating Affiliate's Insolvency as may be furnished to Trustee and that provides Trustee with a reasonable basis for making a determination concerning Company's
or a Participating Affiliate's solvency. 

        (iii)  If
at any time Trustee has determined that Company is Insolvent, Trustee shall discontinue payments to Plan participants or their beneficiaries and shall hold the
assets of the Trust for the benefit of Company's general creditors. If at any time Trustee has determined that a Participating Affiliate is Insolvent, Trustee shall discontinue payments to Plan
participants employed or previously employed by that Participating Affiliate or their beneficiaries and shall hold the assets of the Trust allocated to that Participating Affiliate for the benefit of
the Participating Affiliate's general creditors. Nothing in this Agreement shall in any way diminish any rights of Plan participants or their beneficiaries to pursue their rights as general creditors
of Company or Participating Affiliates with respect to benefits due under the Plan or otherwise. 

        (iv)  Trustee
shall resume the payment of benefits to Plan participants or their beneficiaries in accordance with Section 2 of this Agreement only after Trustee has
determined that Company or the Participating Affiliate is not Insolvent (or is no longer Insolvent). 

        (c)  Provided
that there are sufficient assets, if Trustee discontinues the payment of benefits from the Trust pursuant to Section 3(b) hereof and subsequently resumes
such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Plan participants or their beneficiaries under the terms of the Plan for the
period of such discontinuance, 

3

 

less the aggregate amount of any payments made to Plan participants or their beneficiaries by Company or a Participating Affiliate in lieu of the payments provided for hereunder during any such
period of discontinuance. In no case shall assets of a separate account or sub-trust allocated to a Participating Affiliate be used to provide benefits for any participants in the Plan
other than participants who are employed by or were employed by that Participating Affiliate, and their beneficiaries. 

Section 4

Investment Authority  

        (a)  Trustee
shall, to the maximum extent practicable, invest all assets of the Trust in Common Stock. Trustee shall retain Common Stock deposited by Company with Trustee.
Trustee shall use cash deposited by Company with Trustee or earned by the Trust to purchase Common Stock as soon as reasonably practicable after such cash is received by Trustee. Common Stock shall be
purchased in the internal market maintained by Company or directly from Company. 

        (b)  All
rights associated with assets of the Trust shall be exercised by Trustee or the person designated by Trustee, and shall in no event be exercisable by or rest with
Plan participants, except that voting rights and dividend rights with respect to Trust assets will be exercised by Company. 

Section 5

Disposition of Income  

        During the term of this Trust, all income (if any) received by the Trust, net of expenses and taxes, shall be accumulated and reinvested to the maximum extent
practicable in Common Stock, except that cash dividends (if any) paid to the Trust with respect to Common Stock shall be paid to Company immediately upon receipt by Trustee. 

Section 6

Accounting by Trustee  

        Trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such
specific records as shall be agreed upon in writing between Company and Trustee. Within forty-five (45) days following the close of each calendar year and within
forty-five (45) days after the removal or resignation of Trustee, Trustee shall deliver to Company a written account of its administration of the Trust during such year or during
the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected by it, including
a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately), and showing
all cash, securities and other property held in the Trust at the end of such year or as of the date of such removal or resignation, as the case may be. 

Section 7

Responsibility of Trustee  

        (a)  Trustee
shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with
such matters would use in the conduct of an enterprise of a like character and with like aims, provided, however, that Trustee shall incur no liability to any person for any action taken pursuant to a
direction, request or approval given by Company which is contemplated by, and in conformity with, the terms of the Plan or this Trust and is given in writing by Company. 

4

 

        (b)  Trustee
may consult with legal counsel (who may also be counsel for Company generally) with respect to any of its duties or obligations hereunder. 

        (c)  Trustee
shall have, without exclusion, all powers conferred on Trustees by applicable law, unless expressly provided otherwise herein. 

        (d)  Notwithstanding
any powers granted to Trustee pursuant to this Agreement or to applicable law, Trustee shall not have any power that could give this Trust the objective
of carrying on a business and dividing the gains therefrom, within the meaning of Section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the
Internal Revenue Code. 

Section 8

Compensation and Expenses of Trustee  

        Company shall pay all administrative and Trustee's fees and expenses. If not so paid, the fees and expenses shall be paid from the Trust. 

Section 9

Resignation and Removal of Trustee  

        (a)  Trustee
may resign at any time by written notice to Company, which shall be effective thirty (30) days after receipt of such notice unless Company and Trustee
agree otherwise. 

        (b)  Trustee
may be removed by Company on thirty (30) days notice or upon shorter notice accepted by Trustee. 

        (c)  Upon
resignation or removal of Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the successor Trustee. The transfer shall
be completed within thirty (30) days after receipt of notice of resignation, removal or transfer, unless Company extends the time limit. 

        (d)  If
Trustee resigns or is removed, a successor shall be appointed, in accordance with Section 10 hereof, by the effective date of resignation or removal under
paragraphs (a) or (b) of this section. If no such appointment has been made, Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions.
All expenses of Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust. 

Section 10

Appointment of Successor  

        (a)  If
Trustee resigns or is removed in accordance with Section 9(a) or (b) hereof, Company may appoint any third party, such as a bank trust department or
other party that may be granted corporate trustee powers under state law, as a successor to replace Trustee upon resignation or removal. The appointment shall be effective when accepted in writing by
the new Trustee, who shall have all of the rights and powers of the former Trustee, including ownership rights in the Trust assets. The former Trustee shall execute any instrument necessary or
reasonably requested by Company or the successor Trustee to evidence the transfer. 

        (b)  The
successor Trustee need not examine the records and acts of any prior Trustee and may retain or dispose of existing Trust assets, subject to Section 4 hereof.
The successor Trustee shall not be responsible for and Company shall indemnify and defend the successor Trustee from any claim or liability resulting from any action or inaction of any prior Trustee
or from any other past event, or any condition existing at the time it becomes successor Trustee. 

5

 

Section 11

Amendment or Termination  

        (a)  This
Agreement may be amended by a written instrument executed by Trustee and Company. 

        (b)  The
Trust shall not terminate until the date on which Plan participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan,
unless sooner revoked in accordance with Section 1(b) hereof. Upon termination of the Trust any assets remaining in the Trust shall be returned to Company. 

Section 12

Miscellaneous  

        (a)  Any
provisions of this Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof. 

        (b)  Benefits
payable to Plan participants and their beneficiaries under this Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged,
encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process. 

        (c)  This
Trust Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. 

Section 13

Effective Date  

        The effective date of this Trust Agreement shall be January 1, 2002. 

	 	 	CH2M HILL COMPANIES, LTD.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

TRUSTEE
	

 	
 	

By:	
 	

 
	 	 	 	 	

6

QuickLinks

TRUST UNDER CH2M HILL COMPANIES, LTD. 2002 AFTER-TAX DEFERRED COMPENSATION PLANQuickLinks
 -- Click here to rapidly navigate through this document

 
 

SECOND AMENDMENT
  TO
  $100,000,000 SENIOR UNSECURED REVOLVING CREDIT AGREEMENT    
  

        This Second Amendment to $100,000,000 Senior Unsecured Revolving Credit Agreement ("Second Amendment") is entered
into as of the 12th day of July, 2001, by and between WELLS FARGO BANK, N.A., for its own benefit as a Lender (in that capacity sometimes referred to as "Wells
Fargo"), as the Issuing Bank, and, as agent for the benefit of the present and future Lenders (in that capacity "Agent"), HARRIS
TRUST AND SAVINGS BANK, as a Lender, U.S. BANK NATIONAL ASSOCIATION, as a Lender, THE BANK OF TOKYO-MITSUBISHI, LTD., as a Lender, and BANK OF AMERICA, N.A., as a Lender (collectively, the
"Lenders") and CH2M HILL COMPANIES, LTD., an Oregon corporation, as a Borrower, CH2M HILL, INC., a Florida corporation, as a Borrower,
OPERATIONS MANAGEMENT INTERNATIONAL, INC., a California corporation, as a Borrower and CH2M HILL INDUSTRIAL DESIGN CORPORATION, an Oregon corporation, as a Borrower (collectively, the
"Borrowers"). 

 
 

R E C I T A L S    
  

	(a)
	The Borrowers and the Lenders have entered into that certain $100,000,000 Senior Unsecured Revolving Credit Agreement dated as of June 18, 1999, as
amended by that First Amendment to $100,000,000 Senior Unsecured Revolving Credit Agreement dated as of October 2, 2000 (as further amended, modified or supplemented from time to time, the
"Credit Agreement").

	(b)
	The Borrowers have requested that the Lenders amend the Credit Agreement in order to (1) permit the Borrowers to participate as a Limited Partner in the
Centennial Ventures VII Limited Partnership, (2) permit the Borrowers to enter into the Operating Lease Transaction (as defined below), (3) modify certain financial covenants, and
(4) modify and add certain definitions, all of which the Lenders are willing to do under the terms and conditions as set forth in this Second Amendment.

A G R E E M E N T  

        For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto hereby agree as follows: 

        (1)    Amendment to Credit Agreement.    Upon satisfaction of the conditions set forth in Section 3 of this
Second Amendment, the Credit Agreement shall be amended as of the date hereof as follows: 

        1.1    Amendments of Existing Definitions.    The following definitions in Section 1 of the Credit Agreement
are amended in their entirety to read as follows: 

         "EBITDA" means, for any period, the sum of (a) Consolidated Net Income for such period (excluding the effect of any extraordinary or
non-recurring gains (including any gain from the sale of property)), plus (b) an amount which, in the determination of Consolidated Net Income for such period, has been deducted for
(i) Interest Expense for such period, and (ii) total federal, state, foreign and other income taxes for such period, and (iii) all depreciation and amortization for such period,
all as determined in accordance with GAAP. In addition, if (i) the Parent or any Subsidiary makes a Permitted Acquisition during any fiscal quarter, (ii) the Target becomes a Material
Subsidiary as a result of such Permitted Acquisition, and (iii) the Target's financial statements for the Determination Period are audited by independent certified public accountants of
recognized national standing reasonably satisfactory to the Agent, then the reported financial results of the Target for the Determination Period may, at the option of the Borrowers by notice to the
Agent, be included in determining EBITDA for such Determination Period. 

        "Final Maturity Date" means June 17, 2004. 

         "LC Available Credit" means the lesser of (i) $80,000,000, or (ii) the Available Credit. 

 

        "Net Funded Debt" means all Indebtedness of the Parent and its Subsidiaries excluding (a) Key Employee Notes, and (b) the Operating Obligations so
long as: (i) the covenants contained in the Operating Lease Documents are less restrictive than the covenants contained in the Credit Agreement, and (ii) the maturity date of the
Operating Obligations is greater than the maturity date of the Notes. 

         "Total Funded Debt" means all Indebtedness of the Parent and its Subsidiaries (a) including Key Employee Notes, and (b) excluding the Operating
Obligations so long as: (i) the covenants contained in the Operating Lease Documents are less restrictive than the covenants contained in the Credit Agreement, and (ii) the maturity date
of the Operating Obligations is greater than the maturity date of the Notes. 

        1.2    Additional Definitions.    The following definitions are added to Section 1 of the Credit Agreement as
follows: 

         "Adjusted EBITDA" means, for any period, the sum of (a) Consolidated Net Income for such period (excluding the effect of any extraordinary or
non-recurring gains (including any gain from the sale of property)), plus (b) an amount which, in the determination of Consolidated Net Income for such period, has been deducted for
(i) Interest Expense for such period, and (ii) total federal, state, foreign and other income taxes for such period, and (iii) all depreciation and amortization for such period,
and (iv) total expenses associated with the non-cash portion of all employee bonus plans for such period, all as determined in accordance with GAAP. In addition, if (i) the
Parent or any Subsidiary makes a Permitted Acquisition during any fiscal quarter, (ii) the Target becomes a Material Subsidiary as a result of such Permitted Acquisition, and (iii) the
Target's financial statements for period(s) including the four fiscal quarters ending at the quarter during which the Permitted Acquisition occurs (the "Determination Period") are audited by
independent certified public accountants of recognized national standing reasonably satisfactory to the Agent, then the reported financial results of the Target for the Determination Period may, at
the option of the Borrowers by notice to the Agent, be included in determining Adjusted EBITDA for such Determination Period. 

         "Collateral Trustee" means State Street Bank and Trust Company, a Massachusetts trust company, or any successor Collateral Trustee appointed under and in
accordance with the Operating Lease Documents. 

        "Consolidated Total Assets" means as of the date of any determination thereof, total assets of the Borrowers determined on a consolidated basis in accordance
with
GAAP. 

         "EBITDAR" means, for any period, the sum of (a) Consolidated Net Income for such period (excluding the effect of any extraordinary or
non-recurring gains (including any gain from the sale of property)), plus (b) an amount which, in the determination of Consolidated Net Income for such period, has been deducted for
(i) Interest Expense for such period, and (ii) total federal, state, foreign and other income taxes for such period, and (iii) all depreciation and amortization for such period,
(iv) total expenses associated with the non-cash portion of all employee bonus plans for such period, and (v) Lease Expense for such period, all as determined in accordance
with GAAP. In addition, if (i) the Parent or any Subsidiary makes a Permitted Acquisition during any fiscal quarter, (ii) the Target becomes a Material Subsidiary as a result of such
Permitted Acquisition, and (iii) the Target's financial statements for the Determination Period are audited by independent certified public accountants of recognized national standing
reasonably satisfactory to the Agent, then the reported financial results of the Target for the Determination Period may, at the option of the Borrowers by notice to the Agent, be included in
determining EBITDAR for such Determination Period. 

2

 

         "Guarantors" means CH2M Hill Companies, Ltd., Operations Management International, Inc. and CH2M Hill Industrial Design and
Construction, Inc. 

        "Lease Expense" means, for any period, total lease expense under all operating and capital leases of the Parent and its Subsidiaries, on a Consolidated basis,
determined in accordance with GAAP. 

         "Meridian 26 Trust" means the trust created under that certain Trust Agreement dated July 2, 2001 among the Owner Trustee and the Participants for the
purpose of acquiring and holding title to the property subject to the Operating Lease Transaction. 

         "Operating Lease Collateral" means the collateral described on Exhibit A attached hereto and incorporated herein by this reference. 

        "Operating Lease Documents" means those documents listed on Exhibit B attached hereto and incorporated herein by this reference, together with all
renewals, extensions, amendments, modifications and supplements thereto made in accordance with Section 26.2 of this Credit Agreement. 

         "Operating Lease Transaction" means the $53,000,000 Operating lease transaction to be entered into on July 2, 2001 or shortly thereafter, by and between
the Operating Lenders and the Borrowers pursuant to the Operating Lease Documents, for the purpose of financing the construction of two (2) new headquarters buildings for the Borrowers in
Denver, Colorado. 

        "Operating Lenders" means the Owner Trustee, the Collateral Trustee and the Participants. 

         "Operating Obligations" means the Indebtedness of the Borrowers owed to the Operating Lenders pursuant to the Operating Lease Documents 

         "Owner Trustee" means Wells Fargo Bank Northwest, National Association, individually and as trustee under the Meridian 26 Trust. 

        "Participants" means John Hancock Life Insurance Company, Mellon Bank, N.A., as trustee for the Bell Atlantic Master Trust, John Hancock Variable Life
Insurance
Company, Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company, and Provident Mutual Life Insurance Company, and each of the other financial institutions as are or may
from time to time become Participants pursuant to the Participation Agreement listed on Exhibit B hereto, together with their respective
successors and assigns. 

        1.3    Covenant Amendments.    The following covenants set forth in the Credit Agreement shall be amended as follows: 

        1.3.1    Subsection
9.3.6 of the Credit Agreement is amended in its entirety to read as follows: 

        9.3.6    Other Information.    The Parent will maintain accurate books, accounts and records of the financial affairs
of the Parent and its Subsidiaries sufficient to permit the preparation of financial statements therefrom in accordance with GAAP and will prepare all financial statements required hereunder in
accordance with GAAP and in compliance with the regulations of any Governmental Authority having jurisdiction thereof. The Parent will provide copies to the Agent, promptly after the sending, making
available or filing of all reports and financial statements which the Parent sends or makes available to its stockholders, and all registration statements and amendments thereto, and all reports on
Form 8-K or any similar form hereafter in use which the Parent files with the 

3

 

Securities and Exchange Commission. From time to time at reasonable intervals upon the request of any authorized officer of any Lender, each Borrower and its Subsidiaries will furnish to the Agent
such other information regarding the business, assets, financial condition, income or prospects of the Borrowers and their Subsidiaries as such officer may reasonably request, including copies of all
tax returns, licenses, agreements, leases and instruments to which any Borrower or its Subsidiaries is a party. The Lenders' authorized officers and representatives will have the right during normal
business hours upon reasonable notice and at reasonable intervals to visit the principal executive office of any Borrower or its Subsidiaries, to discuss the affairs, finances, and accounts of each
Borrower and its Subsidiaries with the respective officers and independent public accountants of each Borrower and its Subsidiaries (and by this provision each Borrower and its Subsidiaries authorize
said accountants to discuss the affairs, finances and accounts of the Borrower and its Subsidiaries), examine the books and records of each Borrower and its Subsidiaries, to make copies and notes
therefrom for the purpose of ascertaining compliance with or obtaining enforcement of this Agreement or any other Credit Document, provided that if an
Event of Default has occurred and is continuing, such visit and inspection shall be at the expense of the Borrowers. 

        1.32    Section 9.4
of the Credit Agreement is amended in its entirety to read as follows: 

        9.4    Consolidated Net Worth.    Consolidated Net Worth will at all times exceed $100,000,000, plus 80% of
Consolidated Net Income for each fiscal quarter commencing with the fiscal quarter ending March 31, 2001, excluding any fiscal quarters in which Consolidated Net Income is negative. 

        1.3.3    Section 9.5
of the Credit Agreement is amended in its entirety to read as follows: 

        9.5    "Intentionally Omitted." 

        1.3.4    Section 9.6
of the Credit Agreement is amended in its entirety to read as follows: 

        9.6    Fixed Charge Coverage Ratio.    The Parent will maintain as of the last day of each fiscal quarter a ratio of
EBITDAR to the sum of Interest Expense plus Lease Expense for the four consecutive fiscal quarters ended as of such day of not less than 1.85 to 1.00. 

        1.3.5    Section 9.7
of the Credit Agreement is amended in its entirety to read as follows: 

        9.7    Leverage Ratio.    The Parent will maintain as of the last day of each fiscal quarter a ratio of Total Funded
Debt to Adjusted EBITDA for the four consecutive fiscal quarters ended as of such day of not more than 2.90 to 1.00. 

        1.3.6    Section 9.10
of the Credit Agreement is amended to delete "and" at the end of Subsection 9.10.12, renumber Subsection 9.10.13 as Section 9.10.14 and add
a new Subsection 9.10.13 to read as follows: 

        9.10.13    Indebtedness
of the Borrowers in respect of the Operating Lease Transaction; and 

4

  

        1.3.7    Section 9.13
of the Credit Agreement is amended in its entirety to read as follows: 

        9.13    Environmental Laws.    

        9.13.1    Compliance with Law and Permits.    Each Borrower will, and will cause its Subsidiaries to (unless a failure
by the Subsidiary would not have a Material Adverse Effect) use and operate all of its facilities and properties in compliance with all Environmental Laws, keep all necessary permits, approvals,
certificates, licenses and other authorizations relating to environmental matters in effect and remain in compliance therewith, and handle all Hazardous Materials in compliance with all applicable
Environmental Laws. 

        9.13.2    Notice of Claims, Etc.    Each Borrower will immediately notify the Agent, and provide copies upon receipt,
of all written material claims, complaints, notices or inquiries from governmental authorities relating to the condition of the facilities and properties of the Borrowers and their Subsidiaries or
compliance with Environmental Laws. The Borrowers will promptly cure and have dismissed with prejudice to the satisfaction of Agent any actions and proceedings relating to compliance with
Environmental Laws by the Borrowers, and the Borrowers will cause each Subsidiary to cure and have dismissed such actions and proceedings relating to compliance with Environmental Laws by the
Subsidiaries unless the Subsidiary's failure to cure and have dismissed such actions and proceedings would not have a Material Adverse Effect. 

        1.3.8    Section 9.15
of the Credit Agreement is amended in its entirety to read as follows: 

        9.15    Payment of Taxes, Etc.    Each Borrower will, and will cause each of its Subsidiaries to (unless a failure by
the Subsidiary would not have a Material Adverse Effect), to file all tax returns required to be filed in any jurisdiction and pay and discharge, before the same becomes delinquent, (i) all
Taxes, assessments and governmental charges or levies imposed upon it or upon its property and (ii) all lawful claims that, if unpaid, might by law become a Lien upon its
property; provided, however, that unless and until any Lien resulting therefrom attaches to its property and becomes enforceable against its other
creditors, no payment will be required if such Tax, assessment, charge, levy or claim is being contested in good faith and by proper proceedings for which adequate reserves determined in accordance
with GAAP have been established (and as to which property subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof). 

        1.4    Operating Lease Transaction.    A new Section 26 is added to the Credit Agreement reading as follows: 

        26.    Operating Lease Transaction.    

        26.1    Operating Lease Transaction Deemed Permitted.    Notwithstanding any provision of the Credit Agreement to the
contrary, upon satisfaction of all conditions precedent to the effectiveness of this Second Amendment (which satisfaction shall be reasonably determined in the Agent's sole discretion) the Operating
Lease Transaction to be entered into by the Borrowers is deemed permitted under the Credit Agreement and the consummation by the Borrowers of the Operating Lease Transaction shall not constitute an
Event of Default under the Credit Agreement. 

5

 

        26.2    Prohibition on Certain Amendments to the Operating Lease Documents and the Granting of Liens Without
Consent.    The Borrowers shall not, without the prior written consent of the Agent and the Lenders, (a) request or enter into any amendment to the Operating
Lease Documents or other agreement that would (i) change the maturity date of the Operating Obligations to an earlier date, (ii) increase either the principal amount of the Operating
Lease Transaction or the amount of any payments due under the Operating Lease Documents (as such payment amounts are set forth in or determined in accordance with the copies of the Operating Lease
Documents dated as of July 2, 2001 that were delivered to the Agent), or (iii) cause any of the covenants contained in the Operating Lease Documents and binding on any of the Borrowers
to be more restrictive than those covenants set forth in the copies of the Operating Lease Documents dated as of July 2, 2001 that were delivered to the Agent, or (b) grant any lien or
security interest in favor of the Collateral Trustee or any other Operating Lender in any property other than the Operating Lease Collateral. 

        26.3    Copy of All Amendments to Operating Lease Documents.    The Borrowers shall provide to the Agent a true,
correct and complete copy of any and all amendments to any of the Operating Lease Documents within three (3) Banking Days of the date of any such amendment. 

        26.4    Prohibition on Prepayment of Operating Obligations.    The Borrowers shall not prepay any of the Operating
Obligations. 

        1.5    Event of Default Amendment.    Subsection 11.1.2 is amended in its entirety to read as follows: 

        11.1.2    Specified Covenants.    Any Borrower fails to perform or observe any of the provisions of
Section 2.5, 9.4, 9.5, 9.6, 9.7, 9.8, 9.10, 9.11, 9.14, 9.16, 9.19, 9.20 through 9.30, 9.31, 26.2 or 26.4, or a Material Subsidiary fails to perform or observe any of the provisions of
Section 2.1 of a Subsidiary Guaranty. 

        2.    Waiver of Default Under Section 9.21.    

        The
Lenders hereby (a) permit the Borrowers to participate as a Limited Partner in the Centennial Ventures VII Limited Partnership and to invest up to $5,000,000.00 in the
aggregate in such Limited Partnership, and (b) grant a waiver of the provisions of Section 9.21 of the Credit Agreement for such limited purpose. 

        3.    Conditions to Effectiveness of this Second Amendment.    The effectiveness of this Second Amendment is subject
to satisfaction, as reasonably determined in the Agent's sole discretion, of each of the following conditions precedent: 

        3.1    Approval of the Operating Lease Documents.    The Agent shall have received from the Borrowers a true, correct
and complete copy of all Operating Lease Documents as executed, and shall have approved the terms and conditions of such Operating Lease Documents as reasonably determined in its sole discretion. 

        3.2    Representations and Warranties.    The representations and warranties of the Borrowers shall be true and
correct in all material respects on and as of the date hereof. 

        3.3    No Event of Default.    No Event of Default, or default that with notice and/or the passage of time would
become an Event of Default, shall have occurred and be continuing under the Credit Agreement. 

6

 

        4.    General Provisions.    

        4.1    No Other Modifications.    The Credit Agreement shall remain in full force and effect except as specifically
amended by this Second Amendment. 

        4.2    Definitions.    Capitalized terms, used but not defined herein, shall have the meanings given to such terms in
the Credit Agreement, if defined therein. 

        4.3    Severability.    Should any provision of this Second Amendment be deemed unlawful or unenforceable, said
provision shall be deemed several and apart from all other provisions of this Second Amendment and all remaining provisions of this Second Amendment shall be fully enforceable. 

        4.4    Governing Law.    This Second Amendment and the rights and obligations of the parties hereto shall be governed
by, interpreted and enforced in accordance with the laws of the State of Colorado. 

        4.5    Headings.    The captions or headings in this Second Amendment are for convenience only and in no way define,
limit or describe the scope or intent of any provision of this Second Amendment. 

        4.6    Waiver.    Any waiver or consent given in this Second Amendment shall be effective only in the specific
instance and for the specific purpose for which it was given. No waiver of any default under the Credit Agreement shall be effective unless in writing, and any such waiver shall not operate as a
waiver of any other default or the same default on a future occasion. 

        4.7    Counterparts.    This Second Amendment may be executed by the parties hereto in separate counterparts, each of
which, when so executed and delivered, shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a number of copies hereof,
each signed by less than all, but together signed by all, of the parties hereto. Telefax copies of documents or signature pages bearing original signatures, and executed documents or signature pages
delivered by telefax, shall, in each such instance, be deemed to be, and shall constitute and be treated as, an original signed document or counterpart, as applicable. 

[Signatures Follow on Next Page]

7

 

        IN
WITNESS WHEREOF the parties have caused this Second Amendment to be executed as of the date set forth above. 

	 	 	BORROWERS:
	

CH2M HILL COMPANIES, LTD., an Oregon corporation	
 	

 
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	

 	

CH2M HILL, INC., a Florida corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	
 	

OPERATIONS MANAGEMENT INTERNATIONAL, INC., a California corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	
 	

CH2M HILL INDUSTRIAL DESIGN CORPORATION, an Oregon corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

8

 

	

 	
 	

LENDERS:
	

 	
 	

WELLS FARGO BANK, N.A.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	
 	

HARRIS TRUST AND SAVINGS BANK
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	
 	

U.S. BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	
 	

THE BANK OF TOKYO-MITSUBISHI, LTD.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	
 	

BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

9

 

	

 	
 	

AGENT:
	

 	
 	

WELLS FARGO BANK, N.A.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

	

 	
 	

ISSUING BANK:
	

 	
 	

WELLS FARGO BANK, N.A.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

10

QuickLinks

SECOND AMENDMENT TO $100,000,000 SENIOR UNSECURED REVOLVING CREDIT AGREEMENT

R E C I T A L S

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]