Document:

EXHIBIT 10.1

 

WASHINGTON GROUP INTERNATIONAL, INC.

EQUITY AND PERFORMANCE INCENTIVE PLAN

 

PERFORMANCE UNIT PARTICIPANT AGREEMENT

 

This
Agreement (the “Agreement”), dated as of                                   ,
is made by and between Washington Group International, Inc., a Delaware
corporation hereinafter referred to as “Corporation”, and                                                             ,
an employee of the Corporation or Subsidiary of the Corporation, hereinafter
referred to as “Participant.”

 

WHEREAS, the
Corporation wishes to afford the Participant an opportunity to earn incentive
compensation under the Corporation’s Long-Term Incentive Program (“LTIP”) by
achieving objectives that are in the long-term interest of the Corporation and
its shareholders; and

 

WHEREAS,
the Board may authorize the granting of Performance Units under the Plan (as
hereinafter defined), the terms of which are hereby incorporated herein by
reference and made a part hereof; and

 

WHEREAS,
the Board has authorized the grant of Performance Units to the Participant by a
resolution duly adopted on                                         ,
and incorporated herein by reference;

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, receipt of which is hereby acknowledged, the
parties hereto do agree as follows:

 

ARTICLE I

DEFINITIONS

 

Wherever
the following terms are used in this Agreement with initial capital letters,
they shall have the meanings specified in the Plan unless the context clearly
indicates otherwise.

 

Section 1.1 – Board

Section 1.2 – Change in Control

Section 1.3 – Code

Section 1.4 - Common Shares

Section 1.5 - Corporation

Section 1.6 – Management Objectives

Section 1.7 – Subsidiary

 

Wherever
the following terms are used in this Agreement with initial capital letters,
they shall have the meanings specified below unless the context clearly
indicates otherwise.  The 

 

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masculine pronoun shall
include the feminine and neuter, and the singular the plural, where the context
so indicates.

 

Section 1.8 -
Beneficiary

 

“Beneficiary”
means the person or persons properly designated by the Participant to receive
the Participant’s benefits under this Agreement in the event of the Participant’s
death, or if the Participant has not designated such person or persons, or such
person or persons shall all have pre-deceased the Participant, the executor,
administrator, or personal representative of the Participant’s estate.  Designation, revocation, and redesignation of
beneficiaries must be made in writing in accordance with rules established by
the Corporation and shall be effective upon delivery to the Corporation.

 

Section 1.9 -
Compensation Committee

 

“Compensation
Committee” means the compensation committee of the Board, as constituted from
time to time.

 

Section 1.10
– Par Value

 

“Par Value” means the value assigned to each
Performance Unit at the time of grant and represents the amount that the
Corporation will pay for each Performance Unit if the Corporation achieves 100%
of its predetermined Management Objectives during the applicable Performance
Period.

 

Section 1.11
– Performance Period

 

“Performance Period” means the three-fiscal-year
period of the Corporation commencing January 1, 2005, and ending January 2,
2009; provided, however, that the Performance Period may be shortened in the
event of a Change in Control as set forth in Section 4.4.

 

Section 1.12 – Performance Unit

 

“Performance
Unit” means a bookkeeping entry that records a right to payment, the value of
which is contingent upon performance as measured against pre-determined
Management Objectives over the Performance Period.

 

Section 1.13
- Plan

 

“Plan”
means the Washington Group International, Inc. Equity and Performance Incentive
Plan, as the same may be amended or restated from time to time.

 

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ARTICLE II

AWARD OF PERFORMANCE UNITS

 

Section 2.1 – Grant of Award

 

In
consideration of the Participant’s execution of this Agreement and for other
good and valuable consideration, on the date hereof, the Corporation
irrevocably awards to the Participant         
Performance Units with a Par Value of $10.00 per unit, upon the terms and
subject to the conditions set forth in the Plan and in this Agreement.

 

Section 2.2 – Performance Measures

 

The
Management Objectives that will be used to determine the actual value of the
Performance Units awarded under this Agreement will be the Corporation’s
average earnings per share (“EPS”) of Common Shares during the Performance
Period and the Corporation’s average return on invested capital (“ROIC”) during
the Performance Period.  A separate
target goal for each Management Objective (EPS and ROIC) has been established
for each year of the Performance Period. 
These target goals are set forth on Exhibit A to this Agreement.  The average EPS and the average ROIC will be
determined by calculating the percentage of the target goal achieved each year
(i.e., dividing each year’s actual results for EPS and ROIC by the respective
target goal for that year) and then calculating the average of the percentages
for all years in the Performance Period (i.e., adding the percentages and
dividing by the number of years in the Performance Period).

 

Example:  If Corporate ROIC equaled 100% of the
target goal in 2005 120% of the target goal in 2006 and 110% of the target goal
in 2007, then the three-year average ROIC would equal 110%.

 

EPS
for any year will be calculated by dividing after-tax profit (net income after
incentive compensation and taxes) by the number of Common Shares outstanding at
the end of the year.

 

ROIC
for any year will be calculated using the following formula:  (net income + tax effected interest) divided
by the average invested equity and debt (excluding cash in excess of $50
million).

 

All
amounts will be determined by the Corporation’s finance department and
certified by the Compensation Committee.

 

Section 2.3 – Performance Unit Values

 

At the
end of the Performance Period, the Compensation Committee shall value each
Performance Unit using the Performance Unit Value
Matrix set forth in Exhibit A and the Corporation’s actual results
during the Performance Period. 
Notwithstanding any other provision of this Agreement or the Plan, no
Performance Unit awarded under this Agreement may have a value greater than
$20.00.  For levels of actual performance
between any two amounts set forth on the Performance Unit Value Matrix, the
value of the Performance Units will

 

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be calculated by
prorating between the values assigned to the specified performance levels,
giving equal weighting to each Management Objective.

 

ARTICLE III

 

Section 3.1 – Payment in Ordinary Course

 

If the
Participant remains actively employed with the Corporation or a Subsidiary
through the date of payment, the value of the Performance Units shall be paid
to the Participant as soon as administratively practical after the February Board
meeting following the end of the Performance Period.  Payment shall be in cash except that the
Compensation Committee may determine in its discretion to permit payment in the
form of Common Shares or Deferred Shares or an election to receive Deferred
Shares of the Corporation, subject to availability under the Plan, to the
extent necessary for the Participant to satisfy any applicable stock ownership
guidelines.

 

Section 3.2 – Payment in the Event of Death or Disability

 

Notwithstanding
the foregoing, if the Participant’s employment with the Corporation or a
Subsidiary terminates solely because of the Participant’s death or permanent
and total disability (within the meaning of Section 822(e)(3) of the Code)
before payment is made, the Participant (or the Beneficiary in the case of the
Participant’s death) shall be entitled to receive a prorated portion of the
value of the Performance Units as soon as administratively practical after the February Board
Meeting following the end of the Performance Period.  The amount that the Participant (or Beneficiary)
shall be entitled to receive shall be determined by multiplying the value of
the Performance Units by a fraction, the numerator of which is the number of
days during the Performance Period that the Participant was employed by the
Corporation or a Subsidiary and the denominator of which is the total number of
days in the Performance Period.

 

Section 3.3 – Taxes

 

Any
taxes required by federal, state or local laws due on payment of the value of
Performance Units will be withheld by the Corporation.  The Participant hereby authorizes the
necessary withholding by the Corporation to satisfy such tax withholding
obligations prior to payment.

 

ARTICLE IV

OTHER
PROVISIONS

 

Section 4.1 – No Guarantee of Employment

 

Nothing
in this Agreement or in the Plan shall confer upon the Participant any right to
continue in the employ of the Corporation or any Subsidiary, or shall interfere
with or restrict in any way the rights of the Corporation or its Subsidiaries,
which are expressly reserved, to discharge the Participant at any time for any
reason whatsoever, with or without cause.

 

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Section 4.2 –
Administration

 

The
Board shall have the power to interpret the Plan and this Agreement and to
adopt such rules for the administration, interpretation and application of the
Plan as are consistent therewith and to interpret, amend or revoke any such
rules.  All actions taken and all
interpretations and determinations made by the Board in good faith shall be
final and binding upon the Participant, the Corporation and all other
interested persons.  No member of the
Board shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or a Performance
Unit.

 

Section 4.3 – Performance Units Not Transferable

 

Performance Units under the Plan may not be sold,
pledged, assigned or transferred in any manner other than by will or the laws
of descent and distribution; provided, however, the Participant may designate a
Beneficiary to receive payment after his death. 
No Performance Unit or any interest or right therein or part thereof
shall be liable for the debts, contracts or engagements of the Participant or
his successors in interest or shall be subject to disposition by transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect; provided, however, that this Section 4.3
shall not prevent transfer by will or by the applicable laws of descent and
distribution.  During the Participant’s
lifetime, the value of Performance Units shall be paid only to the Participant
or his guardian or legal representative.

 

Section 4.4 – Change in Control

 

The
Performance Period shall end immediately upon the occurrence of a Change in
Control and the value of each Performance Unit shall be equal to the greater of
(a) the Par Value set forth in this Agreement and (b) the value determined
under Section 2.3 of this Agreement based upon the Corporation’s actual
results for the shortened Performance Period. 
The value of the Performance Units shall become payable immediately upon
the Change in Control.

 

Section 4.5 –
Amendment

 

This
Agreement is subject to the Plan. The Board may amend the Plan and the
Compensation Committee may amend this Agreement at any time and in any way, except
that any amendment of the Plan or this Agreement that would impair the
Participant’s rights under this Agreement may not be made without the
Participant’s written consent.

 

Section 4.6 – Notices

 

Any notice to be given under the terms of this
Agreement to the Corporation shall be addressed to the Corporation in care of
its Secretary, and any notice to be given to the Participant shall be addressed
to him or her at the address given beneath his or her signature hereto.  By a notice given pursuant to this Section 4.6,
either party may hereafter designate a different address for notices to be
given to him or her.  Any notice which is
required to be given to the Participant

 

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shall, if the Participant is then deceased, be given to the Participant’s
personal representative if such representative has previously informed the
Corporation of his status and address by written notice under this Section 4.6.  Any notice shall be deemed duly given when
enclosed in a properly sealed envelope or wrapper addressed as aforesaid,
deposited (with postage prepaid) in a post office or branch post office
regularly maintained by the United States Postal Service.

 

Section 4.7 –
Titles

 

Titles
are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

 

Section 4.8 –
Governing Law

 

This
Agreement shall be administered, interpreted and enforced under the internal
substantive laws of the State of Delaware.

 

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IN WITNESS
WHEREOF, the Corporation, by its duly authorized officer, and the Participant
have executed this Agreement.

 

	
   

  	
  WASHINGTON GROUP INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Larry L. Myers

  
	
   

  	
   

  	
  Senior Vice
  President – Human Resources

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant’s Social Security Number

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Participant’s
  Address

  	
   

  
							

 

Spousal Consent

 

The undersigned has read
and is familiar with the preceding Agreement and the Plan and hereby consents
and agrees to be bound by all the terms of the Agreement and the Plan.  Without limiting the foregoing, the
undersigned specifically agrees that the Corporation may rely on any
authorization, instruction or election made under the Agreement by the
Participant alone and that all of his or her right, title or interest, if any,
in the Performance Units, whether arising by operation of community property
law, by property settlement or otherwise, shall be subject to all such terms.

 

	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name

  	
   

  

 

7Exhibit
10.11

 

SEVERANCE

 

AGREEMENT

 

This Agreement (“Agreement”)
is made and entered into as of the 25th day of
July, 2002 between Western Sierra Bancorp (“Bancorp”), and Gary D. Gall
(hereinafter referred to as “Executive”).

 

WITNESSETH:

 

WHEREAS, Bancorp desires to
provide Executive with severance compensation in the event there is a change in
control of Western Sierra National Bank (“Bank”) or the Bancorp, and Executive
desires severance compensation in the event there is a change in control of
Bank or Bancorp.

 

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and conditions herein
contained, the parties hereto, intending to be legally bound, do hereby agree
as follows:

 

1.             SEVERANCE PAYMENT

 

This Agreement shall not be
terminated by the voluntary or involuntary dissolution of the Bank or Bancorp.  Notwithstanding the foregoing, in the event
proceedings for liquidation of Bank or the Bancorp are commenced by regulatory
authorities, this Agreement and all rights and benefits hereunder shall
terminate.

 

In the event of (i) any
merger or consolidation involving the Bank, where Bank is (A) not the surviving
or resulting corporation (other than a merger or consolidation with another
wholly owned subsidiary of the Bancorp) or (B) the surviving corporation and
the shareholders of the Bancorp at the time immediately prior to such merger
will own less than 50% on a direct or indirect basis of the voting equity
interests of the surviving corporation after such merger or consolidation, (ii)
any merger or consolidation involving the Bancorp, where the Bancorp is (A) not
the surviving or resulting corporation (other than a reorganization where there
is no change in the proportionate ownership interests of the shareholders of
the Bancorp) or (B) the surviving corporation and the shareholders of the
Bancorp at the time immediately prior to such merger will own less than 50% on
a direct or indirect basis of the voting equity interests of the surviving
corporation after such merger or consolidation, (iii) upon transfer of all or
substantially all of the assets of Bank or of the

 

 

Bancorp to a third party, or
(iv) a sale of the equity securities of Bancorp representing more than 50% of
the aggregate voting power of all outstanding equity securities of the Bancorp
to any person or entity, or any group of persons and/or entities acting in
concert (any of these events shall be referred to as an “Acquisition”), this
Agreement shall continue and be in full force and effect.  In the event of an Acquisition, if Executive
is not given a new employment agreement that is satisfactory to Executive in
Executive’s sole discretion within 15 days prior to the date of consummation of
the Acquisition, then the Bancorp shall pay Executive a lump sum amount in cash
equal to the product of 24 times the Executive’s monthly base salary at the
time immediately prior to the time of consummation of the Acquisition.

 

Such lump sum payment shall
be paid within fifteen (15) days of the date Executive’s determination that new
employment agreement is not satisfactory to Executive or just prior to the time
of consummation of the Acquisition if no new employment agreement was offered
by the resulting corporation at least 15 days prior to time of consummation of
the Acquisition.  The lump sum payment
shall be considered to be in full and complete satisfaction of any and all
rights which Executive may enjoy other than (i) rights under the Executive’s
salary continuation agreement (ii) rights, if any, to exercise any of the stock
options vested prior to such termination, and (iii) rights pursuant to any
existing bonus plan of Bank or Bancorp.

 

2.             TERM
OF AGREEMENT

 

This Agreement shall be for
a term until December 4, 2007 (“Termination Date”).  Such Termination Date may be amended or extended
by written agreement of the parties.  This
Agreement shall apply to any Acquisition that is (i) consummated prior to the
Termination Date provided that Executive is employed by either the Bank or the
Bancorp at the date of public announcement of the Acquisition or (ii)
consummated at any time within one (1) year after the Termination Date, in the
event Executive’s employment is terminated without cause by either the Bank or
the Bancorp prior to the Termination Date and the date of such termination (or the
date of the last termination if there is more than one termination) is within
twelve (12) months prior to the date of consummation of an Acquisition that was
announced within six (6) months before or after the date of such Executive’s
termination of employment with Bank or Bancorp.

 

2

 

3.             APPLICABLE
LAW

 

This
Agreement is made and entered into in the State of California and the laws of
the State of California shall govern the validity and interpretation hereof,
and the performance of the parties hereto and their respective duties and
obligations hereunder, except to the extent that the provisions of federal law
are mandatorily applicable.

 

4.             ENTIRE AGREEMENT

 

This Agreement contains the
entire agreement of the parties and it supersedes any and all other agreements,
either oral or in writing, between Executive and Bancorp.  Each party to this Agreement acknowledges that
no representations, inducements, promises, or agreements, oral or otherwise,
have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein, and that no other agreement, statement, or promise not
contained in this Agreement shall be valid or binding.  This Agreement may not be modified or amended
by oral agreement, but only by an agreement in writing signed by Bancorp and
Executive.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

 

 

	
   

  	
   

  	
  WESTERN
  SIERRA BANCORP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles Bacchi

  
	
   

  	
   

  	
  Charles Bacchi

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Gary D. Gall

  
	
   

  	
   

  	
  Gary D. Gall

  

 

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