Document:

Exhibit 10.1

NITROMED, INC.

125 Spring Street

Lexington, MA 02421

March 20,
2006

(amended June 16, 2006)

Michael D. Loberg

C/o NitroMed, Inc.

125 Spring Street

Lexington, MA 02421

Dear Michael:

In connection with the cessation of your employment
with NitroMed, Inc. (the “Company”) on March 20, 2006 and your resignation from
the Board of Directors on April 5, 2006, you are eligible to
receive the severance benefits described in the “Description of Severance
Benefits” set forth in Section 3 of 
this letter agreement A if you timely sign and return this letter
agreement to Lisa Kelly, Vice President of Human Resources and it becomes
binding. By signing and returning this letter agreement, you will be entering
into a binding agreement with the Company and will be agreeing to the terms and
conditions set forth in the numbered paragraphs below, including the release of
claims set forth in paragraph 4. Therefore, you are advised to consult with an
attorney before signing this letter agreement and you may take up to twenty-one
(21) days to do so. By signing this letter agreement, you agree to waive your
right to change your mind and revoke your agreement during the seven (7) day
period after you have signed it. Accordingly, 
this letter agreement will become a binding agreement between you and
the Company upon execution by both you and the Company.

If you choose not to timely sign and return this
letter agreement  you shall not receive
any severance benefits from the Company. Regardless of signing this letter
agreement, you may elect to continue receiving group medical insurance pursuant
to the federal “COBRA” law, 29 U.S.C. § 1161 et  seq. All premium
costs for “COBRA” shall be paid by you on a monthly basis for as long as, and
to the extent that, you remain eligible for COBRA continuation. You should
consult the COBRA materials to be provided by the Company for details regarding
these benefits. All other benefits, including life insurance and long term
disability, will cease upon your Separation Date.

You will have until June 19, 2006 to exercise any
vested stock options and rights you may have. All unvested stock rights will be
cancelled on the Separation Date. A schedule which lists all of your vested and
unvested stock option grants is attached hereto as Exhibit A.

The following numbered paragraphs set forth the terms
and conditions which will apply if you timely sign and return this letter
agreement:

 1
 

 

1.               Separation
Date - Your effective date of termination from the Company is March 20,
2006 (the “Separation Date”).

2.               Board
Service - You have resigned from the Board of
Directors of the Company effective as of April 5, 2006.

3.               Description of Severance Benefits. In
return for your timely execution and non-revocation of this letter agreement,
including the release of claims in Section 4(a) below, the Company
agrees to provide you with the following severance benefits (collectively, the “Severance
Benefits”):

(a)          Severance
Pay. Notwithstanding any provisions in the offer letter from the
Company to the contrary, the Company agrees to provide you severance pay in the
amount of Three Hundred Sixty One Thousand Three Hundred Twenty Eight Dollars
($361,328), which equals twelve (12) months of salary continuation at your base
salary rate as of the Separation Date (the “Severance Pay”). The Severance Pay
will be paid to you less all applicable state and federal taxes. Of the total
Severance Pay amount, $90, 332 will be paid to you in equal bi-monthly
installments beginning on March 31 , 2006 and ending on June 15,
2006, in accordance with the Company’s regular payroll procedures, and the
remaining $270,996 will be paid to you in equal bi-monthly installments
beginning on June 30, 2006 and ending on December 31, 2006. The
Company’s obligations under this section shall continue, regardless if you
accept future employment, including self-employment.

(b)         Benefits
Continuation. Effective as of the Separation Date, you shall be
considered to have elected to continue receiving group medical insurance
pursuant to the federal “COBRA” law,  29
U.S.C. § 1161 et  seq. For the twelve (12) month period following the Separation Date
, the Company agrees to pay on your behalf, or reimburse you, for the share of
the premium costs and associated administrative fees for such group medical
insurance coverage that is paid by the Company for active and
similarly-situated employees who receive the same type of coverage. The
remaining balance of any premium costs, and all premium costs after the twelve
(12) month period described herein, shall be paid by you on a monthly basis for
as long as, and to the extent that, you remain eligible for COBRA continuation.

(c)          Acceleration of Options.
On June 17, 2003, the Company granted to you an option to purchase an
aggregate of 100,000 shares of the Common Stock
of the Company pursuant to an Employee Incentive Stock Option Agreement (the “Option
Agreement”). The Company agrees that the Option Agreement has been amended as
of the Separation Date to provide that, notwithstanding the separation of your
employment on March 20, 2006, the option shall vest as of the Separation
Date with respect to the option to purchase 25,000 shares of common stock that
would have vested on June 17, 2006.

 2
 

 

(d)         Retention of Company Property. The Company agrees that
you may retain as personal property the Company-provided laptop and the
Company-provided BlackberryTM used by you during your employment; provided,
however, you must first return all Company property stored in the laptop
pursuant to the provisions of Section 4 below. The Company-provided laptop
and the Company-provided BlackberryTM will be retained by you strictly on an “as
is” basis, and you shall assume responsibility for all costs related to the
laptop and the BlackberryTM after the Separation Date.

(e)          Non-Disparagement.
The Company, through the Chair of its Board of Directors, agrees
to direct the Company’s officers, all members of the management team and the
members of the Company’s Board of Directors not to make any false, disparaging,
derogatory or defamatory statements in public or in private regarding you or
your employment with the Company.

4.               Releases

(a)          Company
Release. In consideration of the payment of the Severance
Benefits, which you acknowledge you would not otherwise be entitled to receive,
you hereby fully, forever, irrevocably and unconditionally release, remise and
discharge the Company and its current officers, directors, stockholders,
corporate affiliates, subsidiaries, parent companies, agents and employees
(each in their individual and corporate capacities) (hereinafter, the “Released
Parties”) from any and all claims, charges, complaints, demands, actions,
causes of action, suits, rights, debts, sums of money, costs, accounts,
reckonings, covenants, contracts, agreements, promises, doings, omissions,
damages, executions, obligations, liabilities, and expenses (including
attorneys’ fees and costs), of every kind and nature which you ever had or now
have against the Released Parties, including, but not limited to, those claims
arising out of your employment with and/or separation from the Company,
including, but not limited to, all employment discrimination claims under Title
VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et
seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et
seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et  seq.,
the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. §
2101 et  seq., and the Rehabilitation Act of 1973, 29 U.S.C. § 701
et  seq., all as amended; all claims arising out of the Fair
Credit Reporting Act, 15 U.S.C. § 1681 et  seq., the Employee Retirement Income Security
Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et  seq., the Massachusetts Fair Employment
Practices Act., M.G.L. c. 151B, § 1 et seq.,
the Massachusetts Civil Rights Act, M.G.L. c. 12, §§ 11H and 11I, the
Massachusetts Equal Rights Act, M.G.L. c. 93, § 102 and M.G.L. c. 214, § 1C,
the Massachusetts Labor and Industries Act, M.G.L. c. 149, § 1 et  seq.,
and the Massachusetts Privacy Act, M.G.L. c. 214, § 1B, all as amended; all
common law claims including, but not limited to, actions in tort, defamation
and breach of contract; all claims to
any 

 

 3
 

 

                        non-vested ownership interest in the Company,
contractual or otherwise, including but not limited to claims to stock or stock
options; and any claim or damage arising out of your employment with or
separation from the Company (including a claim for retaliation) under any
common law theory or any federal, state or local statute or ordinance not
expressly referenced above; provided, however, that nothing in this Agreement
prevents you from filing, cooperating with, or participating in any proceeding
before the EEOC or a state Fair Employment Practices Agency (except that you
acknowledge that you may not be able to recover any monetary benefits in
connection with any such claim, charge or proceeding).

Nothing contained in this
Section 3(a) shall bar you from asserting a claim for any vested
benefit or any obligation expressly set forth in this letter agreement. Moreover,
the provisions of this section 3(a) do not include and will not
preclude (i) any rights to defense or indemnification that you may have as
a former officer of the Company or member of the Board of Directors, (ii) claims
for unemployment compensation, (iii) non-termination related claims under
the ERISA , (iv) claims, actions or rights arising under or to enforce the
terms of this agreement, and (v) shall bar you from defending yourself
against any claim brought against you by the Company or any other Released
Party.

(b)         Company
Release. In consideration of the undertakings, transactions and
consideration recited in this agreement, the Company hereby unconditionally and
irrevocably remises, releases and forever discharges you of and from any and
all suits, claims, demands, interest, costs (including attorney fees and costs
actually incurred), expenses, actions and causes of action, rights,
liabilities, obligations, promises, agreements, controversies, losses and debts
of every kind and nature including, but not limited to, any and all claims arising out of or relating
to your employment with and/or separation from the Company, which the Company now has, or at any time heretofore ever
had, or could have had, whether known or unknown, suspected or unsuspected,
against you.

Nothing contained in this
Section 3(b) will preclude claims, actions or rights arising under
or to enforce the terms of this agreement or shall bar the Company from
defending itself against any claim brought by you against the Company or any
other Released Party.

5.               Non-Disclosure, Non-Competition and Non-Solicitation
Obligations - You acknowledge and reaffirm your obligations as
are stated more fully in the Invention and Non-Disclosure Agreement and the Non-Competition
and Non-Solicitation Agreement you executed at the inception of your
employment, each of which remains in full force and effect, including your
obligation to keep confidential and not to disclose any and all non-public
information concerning the Company which you acquired during the course of your
employment with the Company, including, but not limited to, any non-public
information concerning the Company’s business affairs, business prospects and
financial condition.

 4
 

 

6.               Return
of Company Property — Except as provided in section 2(d) above,
you confirm that you have returned to the Company all keys, files, records (and
copies thereof), equipment (including, but not limited to, computer hardware,
software and printers, wireless handheld devices, cellular phones, pagers,
etc.), Company identification, Company vehicles and any other Company-owned
property in your possession or control and have left intact all electronic
Company documents, including but not limited to those which you developed or helped
develop during your employment. You further confirm that you have cancelled all
accounts for your benefit, if any, in the Company’s name, including but not
limited to, credit cards, telephone charge cards, cellular phone and/or pager
accounts and computer accounts.

7.               Business
Expenses and Compensation - You acknowledge that you have been
reimbursed by the Company for all business expenses incurred in conjunction
with the performance of your employment and that no other reimbursements are
owed to you. You further acknowledge that you have received payment in full for
all services rendered in conjunction with your employment by the Company and
that no other compensation is owed to you.

8.               Non-Disparagement - You understand and
agree that as a condition for payment to you of the consideration herein
described, you shall not make any false, disparaging, derogatory or defamatory
statements in public or in private to any media outlet, industry group,
financial institution or current or former employee, consultant, client or
customer of the Company regarding your employment with the Company, the Company
or any of its directors, officers, employees, agents or representatives or
about the Company’s business affairs and financial condition.

9.               Amendment -
This letter agreement shall be binding upon the parties and may not be modified
in any manner, except by an instrument in writing of concurrent or subsequent
date signed by duly authorized representatives of the parties hereto. This
letter agreement is binding upon and shall inure to the benefit of the parties
and their respective agents, assigns, heirs, executors, successors and
administrators.

10.         Waiver of Rights - No delay or
omission by the Company in exercising any right under this letter agreement
shall operate as a waiver of that or any other right. A waiver or consent given
by the Company on any one occasion shall be effective only in that instance and
shall not be construed as a bar or waiver of any right on any other occasion.

11.         Validity -
Should any provision of this letter agreement be declared or be determined by
any court of competent jurisdiction to be illegal or invalid, the validity of
the remaining parts, terms or provisions shall not be affected thereby and said
illegal or invalid part, term or provision shall be deemed not to be a part of
this letter agreement.

12.         Confidentiality
- To the extent permitted by law, you understand and agree that as a condition
for payment to you of the severance benefits herein described, the terms and
contents of this letter agreement, and the contents of the negotiations and
discussions resulting in this letter agreement, shall be maintained as
confidential by you and your agents and representatives and shall not be
disclosed to any third party except to the 

 5
 

 

                        extent required by federal or
state law or as otherwise agreed to in writing by the Company, provided,
however, that nothing in this section shall prevent you from providing
information to your attorneys, immediate family members, tax advisors, or
accountants.

13.         Nature of Agreement - You
understand and agree that this letter agreement is a severance agreement and
does not constitute an admission of liability or wrongdoing on the part of the
Company.

14.         Acknowledgments
- You acknowledge that you have been given at least twenty-one (21) days to
consider this letter agreement and that the Company advised you to consult with
an attorney of your own choosing prior to signing this letter agreement. You
understand that you may revoke this letter agreement for a period of seven (7) days
after you sign this letter agreement, and you have waived your rights under
this seven (7) day revocation period. You understand and agree
that by entering into this letter agreement you are waiving any and all rights
or claims you might have under The Age Discrimination in Employment Act, as
amended by The Older Workers Benefit Protection Act, and that you have received
consideration beyond that to which you were previously entitled.

15.         Voluntary Assent - You affirm that
no other promises or agreements of any kind have been made to or with you by
any person or entity whatsoever to cause you to sign this letter agreement, and
that you fully understand the meaning and intent of this letter agreement. You
state and represent that you have had an opportunity to fully discuss and
review the terms of this letter agreement with an attorney. You further state
and represent that you have carefully read this letter agreement, including
Attachment A, understand the contents herein, freely and voluntarily assent to
all of the terms and conditions hereof, and sign your name of your own free
act.

16.         Applicable
Law - This letter agreement shall be interpreted and construed by the
laws of the Commonwealth of Massachusetts, without regard to conflict of laws
provisions. You hereby irrevocably submit to and acknowledge and recognize the
jurisdiction of the courts of the Commonwealth of Massachusetts, or if
appropriate, a federal court located in Massachusetts (which courts, for
purposes of this letter agreement, are the only courts of competent
jurisdiction), over any suit, action or other proceeding arising out of, under
or in connection with this letter agreement or the subject matter hereof.

17.         Entire Agreement - This letter
agreement contains and constitutes the entire understanding and agreement
between the parties hereto with respect to your severance benefits and the
settlement of claims against the Company and cancels all previous oral and
written negotiations, agreements, commitments and writings in connection
therewith. Nothing in this paragraph, however, shall
modify, cancel or supersede your obligations set forth in paragraph 5 herein.

 6
 

 

 

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  NITROMED, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jerry Karabelas

  
	
   

  	
   

  	
  Jerry Karabelas

  
	
   

  	
   

  	
  Chairman, Board of Directors

  

 

I hereby agree to the terms and conditions set forth
above and in the attached Description of Severance Benefits. I have been given
at least twenty-one (21) days to consider this letter agreement and I have
chosen to execute this on the date below. I intend that this letter agreement
become a binding agreement between me and the Company and I waive my right to
revoke my acceptance in seven (7) days.

	
  /s/ Michael D. Loberg

  	
   

  	
   

  	
  Date 

  	
  6/16/06

  
	
  Employee Name:
  Michael D. Loberg

  	
   

  	
   

  	
   

  

 

 7
 

 

EXHIBIT A

	
  Optionee Statement

  	
   

  	
  Nitromed, Inc.

  

 

Exercisable as of
6/14/2006

 

Michael D. Loberg

86A Beacon Street

Boston, MA 02116  US

 

	
  Grant

  Date

  	
   

  	
  Expiration

  Date

  	
   

  	
  Plan ID

  	
   

  	
  Grant

  Type

  	
   

  	
  Granted or

  Transferred

  To

  	
   

  	
  Grant

  Price

  	
   

  	
  Date

  Transferred

  Out

  	
   

  	
  Outstanding

  	
   

  	
  Exercisable

  	
   

  	
   

  	
   

  
	
  1/26/1998

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  1993

  	
   

  	
  Incentive

  	
   

  	
  161,500

  	
   

  	
  $

  	
  0.7200

  	
   

  	
   

  	
   

  	
  161,500

  	
   

  	
  161,500

  	
   

  	
  current

  	
   

  
	
  6/16/1999

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  1993

  	
   

  	
  Incentive

  	
   

  	
  6,700

  	
   

  	
  $

  	
  1.3000

  	
   

  	
   

  	
   

  	
  6,700

  	
   

  	
  6,700

  	
   

  	
  current

  	
   

  
	
  6/16/1999

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  1993

  	
   

  	
  Incentive

  	
   

  	
  26,800

  	
   

  	
  $

  	
  1.3000

  	
   

  	
   

  	
   

  	
  26,800

  	
   

  	
  26,800

  	
   

  	
  current

  	
   

  
	
  1/30/2001

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  1993

  	
   

  	
  Incentive

  	
   

  	
  60,000

  	
   

  	
  $

  	
  2.0000

  	
   

  	
   

  	
   

  	
  60,000

  	
   

  	
  60,000

  	
   

  	
  current

  	
   

  
	
  6/17/2003

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Incentive

  	
   

  	
  100,000

  	
   

  	
  $

  	
  2.0000

  	
   

  	
   

  	
   

  	
  75,000

  	
   

  	
  75,000

  	
   

  	
  current

  	
   

  
	
  12/1/2003

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Non-Qualified

  	
   

  	
  114,424

  	
   

  	
  $

  	
  7.9800

  	
   

  	
   

  	
   

  	
  61,954

  	
   

  	
  61,954

  	
   

  	
  current

  	
   

  
	
  12/1/2003

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Incentive

  	
   

  	
  15,576

  	
   

  	
  $

  	
  7.9800

  	
   

  	
   

  	
   

  	
  3,046

  	
   

  	
  3,046

  	
   

  	
  current

  	
   

  
	
  5/18/2004

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Non-Qualified

  	
   

  	
  136,755

  	
   

  	
  $

  	
  7.5500

  	
   

  	
   

  	
   

  	
  37,500

  	
   

  	
  37,500

  	
   

  	
  current

  	
   

  
	
  5/18/2004

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Incentive

  	
   

  	
  13,245

  	
   

  	
  $

  	
  7.5500

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  current

  	
   

  
	
  5/16/2005

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Non-Qualified

  	
   

  	
  109,329

  	
   

  	
  $

  	
  14.9900

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  current

  	
   

  
	
  5/16/2005

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Incentive

  	
   

  	
  6,671

  	
   

  	
  $

  	
  14.9900

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  current

  	
   

  
	
  1/19/2006

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Non-Qualified

  	
   

  	
  85,281

  	
   

  	
  $

  	
  12.0200

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  current

  	
   

  
	
  1/19/2006

  	
   

  	
  6/19/2006

  	
   

  	
  NMI
  2003

  	
   

  	
  Incentive

  	
   

  	
  8,319

  	
   

  	
  $

  	
  12.0200

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  current

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Optionee
  Totals

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  844,600

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  432,500

  	
   

  	
  432,500

  	
   

  	
   

  	
   

  

 

 8Exhibit
4.8

ARCADIS NV

2005 LONG-TERM
INCENTIVE PLAN

 

 

ARCADIS NV 2005
LONG-TERM INCENTIVE PLAN

	
  

  	
   

  	
  ARTICLE 1

  OBJECTIVE

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1.

  	
   

  	
  Objective

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 2

  DEFINITIONS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1.

  	
   

  	
  Definitions

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 3

  ADMINISTRATION AND AMENDMENTS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1.

  	
   

  	
  Administration

  	
   

  	
  4

  	
   

  
	
  3.2.

  	
   

  	
  Award Design
  Authority

  	
   

  	
  4

  	
   

  
	
  3.3.

  	
   

  	
  Amendments

  	
   

  	
  4

  	
   

  
	
  3.4.

  	
   

  	
  Binding
  Authority

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 4

  PERSONS ELIGIBLE FOR AWARDS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.

  	
   

  	
  Persons Eligible
  for Awards

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 5

  NUMBER OF SHARES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1.

  	
   

  	
  Shares Available
  for Issuance

  	
   

  	
  5

  	
   

  
	
  5.2.

  	
   

  	
  Annual Award
  Limit

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 6

  OPTIONS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1.

  	
   

  	
  General

  	
   

  	
  5

  	
   

  
	
  6.2.

  	
   

  	
  Terms and
  Conditions of Options

  	
   

  	
  5

  	
   

  
	
  6.3.

  	
   

  	
  Exercise Price

  	
   

  	
  5

  	
   

  
	
  6.4.

  	
   

  	
  Exercise Period

  	
   

  	
  5

  	
   

  
	
  6.5.

  	
   

  	
  Other Terms and
  Conditions

  	
   

  	
  6

  	
   

  
	
  6.6.

  	
   

  	
  Incentive Stock
  Options

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 7

  STOCK APPRECIATION RIGHTS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1.

  	
   

  	
  General

  	
   

  	
  6

  	
   

  
	
  7.2.

  	
   

  	
  Terms and
  Conditions of Stock Appreciation Rights

  	
   

  	
  6

  	
   

  
	
  7.3.

  	
   

  	
  Exercise Price

  	
   

  	
  6

  	
   

  
	
  7.4.

  	
   

  	
  Exercise Period

  	
   

  	
  6

  	
   

  
	
  7.5.

  	
   

  	
  Other Terms and
  Conditions .

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 8

  RESTRICTED SHARE AWARDS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1.

  	
   

  	
  General

  	
   

  	
  7

  	
   

  
	
  8.2.

  	
   

  	
  Terms and
  Conditions of Restricted Shares

  	
   

  	
  7

  	
   

  
	
  8.3.

  	
   

  	
  Issuance of
  Shares

  	
   

  	
  7

  	
   

  
	
  8.4.

  	
   

  	
  Release of Shares

  	
   

  	
  8

  	
   

  

 

 

 

	
  8.5.

  	
   

  	
  Restrictions on
  Transfer of Shares

  	
   

  	
  8

  	
   

  
	
  8.6.

  	
   

  	
  Rights of
  Grantee During Restricted Period

  	
   

  	
  8

  	
   

  
	
  8.7.

  	
   

  	
  Other Terms and
  Conditions

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 9

  RESTRICTED SHARE UNIT AWARDS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1.

  	
   

  	
  General

  	
   

  	
  9

  	
   

  
	
  9.2.

  	
   

  	
  Terms and
  Conditions of Restricted Share Unit Awards

  	
   

  	
  9

  	
   

  
	
  9.3.

  	
   

  	
  Vesting and
  Conversion of Restricted Share Units

  	
   

  	
  9

  	
   

  
	
  9.4.

  	
   

  	
  Other Terms and
  Conditions

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 10

  EXERCISE OF OPTIONS AND STOCK APPRECIATION RIGHTS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.

  	
   

  	
  Exercise of
  Options and Stock Appreciation Rights

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 11

  EXPIRATION OF AWARDS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.1.

  	
   

  	
  Expiration of
  Awards

  	
   

  	
  11

  	
   

  
	
  11.2.

  	
   

  	
  Termination of
  Service Upon Certain Events

  	
   

  	
  11

  	
   

  
	
  11.3.

  	
   

  	
  Determination of
  Unvested Conditional Awards

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 12

  CHANGES IN CAPITAL STRUCTURE

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.1.

  	
   

  	
  Equitable
  Adjustments

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 13

  ADDITIONAL PROVISIONS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.1.

  	
   

  	
  Confirmation of
  Grant

  	
   

  	
  13

  	
   

  
	
  13.2.

  	
   

  	
  Acceptance

  	
   

  	
  14

  	
   

  
	
  13.3.

  	
   

  	
  Non.transferabi1ity.

  	
   

  	
  14

  	
   

  
	
  13.4.

  	
   

  	
  Compliance with
  Other Laws and Regulations

  	
   

  	
  14

  	
   

  
	
  13.5.

  	
   

  	
  No Rights as
  Shareholders

  	
   

  	
  14

  	
   

  
	
  13.6.

  	
   

  	
  Withholding

  	
   

  	
  14

  	
   

  
	
  13.7.

  	
   

  	
  Continued
  Employment Not Presumed

  	
   

  	
  14

  	
   

  
	
  13.8.

  	
   

  	
  Effective Date;
  Duration

  	
   

  	
  15

  	
   

  
	
  13.9.

  	
   

  	
  Unfunded Plan

  	
   

  	
  15

  	
   

  
	
  13.10.

  	
   

  	
  Taxes

  	
   

  	
  15

  	
   

  
	
  13.11.

  	
   

  	
  Domicile

  	
   

  	
  15

  	
   

  
	
  13.12.

  	
   

  	
  Term of Plan

  	
   

  	
  15

  	
   

  
	
  13.13.

  	
   

  	
  Governing Law

  	
   

  	
  16

  	
   

  

 

 

 

ARCADIS NV 2005
LONG-TERM INCENTIVE PLAN

ARTICLE 1

OBJECTIVE

1.1.   Objective.   The objective of the 2005 ARCADIS NV
Long-Term Incentive Plan and the accompanying grant of Awards to employees and
Executive Board members is to strengthen such persons ties with ARCADIS and to
promote the success, and enhance the value, of ARCADIS, by linking the personal
interests of its employees and Executive Board members to those of the ARCADIS shareholders.

ARTICLE 2

DEFINITIONS

2.1.   Definitions.   In
this Plan the terms to be referred to shall have the meaning as listed.

	
  –

  	
   

  	
  Agreement:

  	
   

  	
  a written agreement, in such form as the Supervisory
  Board prescribes from time to time, setting forth the number of Shares subject
  to the Award, any Performance Condition and/or period, the date of Vesting,
  the Award date and any other terms and conditions of the Award.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Award:

  	
   

  	
  an Option, Stock Appreciation Right, award of
  Restricted Shares, or award of Restricted Share Units granted to a
  participant under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Code:

  	
   

  	
  the United States Internal Revenue Code of 1986, as
  amended.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Committee:

  	
   

  	
  the ARCADIS Selection and Remuneration Committee,
  composed by and from members of the ARCADIS Supervisory Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Company:

  	
   

  	
  the naamloze vennootschap ARCADIS NV, registered at
  Arnhem.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Executive Board:

  	
   

  	
  the Executive Board of the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Exercise:

  	
   

  	
  an election by a Grantee, in accordance with the
  procedures established by the Supervisory Board, to acquire Shares underlying
  an Option or SAR.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Exercise Form:

  	
   

  	
  the form as prescribed and provided by the Company
  to Grantees to exercise an Option or SAR.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Exercise Period:

  	
   

  	
  the period during which an Option or SAR can be exercised.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Exercise Price:

  	
   

  	
  with respect to an Option means the price payable by
  a Grantee to the Company to purchase Shares underlying the Option (which
  price cannot be less than the Fair Market Value on the Grant Date), and with
  respect to a SAR “Exercise Price” means the Fair

  

 1

 

 

	
  

  	
   

  	
   

  	
   

  	
  Market Value on the Grant Date, which is used to
  determine the number of Shares to be issued to the Grantee upon exercise of
  the SAR, or the cash payment equal to the SAR.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Fair Market Value:

  	
   

  	
  as of a particular date means the closing price of
  the Shares on such date as listed in the official Prijscourant of Euronext
  Amsterdam N.V., or if the Shares are not traded on such date, on the last
  prior date on which the Shares were traded.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Grantee:

  	
   

  	
  a participant to whom an Award is granted under the
  Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Grant Date:

  	
   

  	
  the date designated by the Supervisory Board as
  being the date upon which a Grantee receives an Award under the Plan;
  regardless of when the Agreement evidencing the Award is actually delivered
  to the Grantee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Member of the Group:

  	
   

  	
  the Company or any entity that directly or through
  one or more intermediaries controls, is controlled by or is under common
  control with, the Company, as determined by the Supervisory Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Option:

  	
   

  	
  the right to acquire during a certain period of time
  a certain number of Shares against a pre-set price.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Option Agreement:

  	
   

  	
  a written agreement, in such form as the Supervisory
  Board shall approve from time to time, that evidences the terms and
  conditions of an Option granted under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Plan:

  	
   

  	
  the 2005 ARCADIS NV Long-Term Incentive Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Performance Condition:

  	
   

  	
  A performance condition applicable to an Award shall
  determine the time such Award becomes Vested, if at all, based upon the
  satisfaction of such Performance Condition. An Award shall lapse if the Performance Condition is not
  satisfied. The Supervisory Board may change a Performance Condition during
  the performance period to take account of any structural changes relating to
  the Shares or the Company in accordance with established market practice.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Reglement:

  	
   

  	
  the Regulatory concerning Insider Information
  ARCADIS N.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Restricted Period:

  	
   

  	
  the period during which the Restricted Shares
  awarded to a Grantee under Article 8 of the Plan remain subject to a
  risk of forfeiture.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Restricted Shares:

  	
   

  	
  Shares that have been awarded to a Grantee under
  Article 8 of the Plan that are subject to certain restrictions and to a
  risk of forfeiture.

  

 

 2
 

 

 

	
  –

  	
   

  	
  Restricted Share Units:

  	
   

  	
  an Award made to a Grantee under Article 9 of
  the Plan representing the right to receive Shares (or the equivalent value in
  cash or other property if the Supervisory Board so provides) in the future,
  upon achievement of such Performance Condition or satisfaction of other
  vesting criteria as the Supervisory Board establishes.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Restricted Share Agreement:

  	
   

  	
  a written agreement, in such form as the Supervisory
  Board shall approve from time to time, that evidences the terms and
  conditions of an award of Restricted Shares under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Restricted Share Unit Agreement:

  	
   

  	
  a written agreement, in such form as the Supervisory
  Board shall approve from time to time, that evidences the terms and
  conditions of an award of Restricted Share Units under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Retirement:

  	
   

  	
  voluntary termination of a participant’s employment
  at the retirement age specified in his employment contract or early
  retirement at the Company’s request.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  SAR Agreement:

  	
   

  	
  a written agreement, in such form as the Supervisory
  Board shall approve from time to time, that evidences the terms and
  conditions of an award of Stock Appreciation Rights under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Shares:

  	
   

  	
  ordinary shares in the capital of the Company with a
  nominal value of Euro 0,05 (five Euro cent) each, as exclusively listed at
  Euronext Amsterdam N.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Stock Appreciation Amount:

  	
   

  	
  with respect to a Stock Appreciation Right, means
  the amount determined by multiplying (i) the number of Shares subject to
  the portion of the Stock Appreciation Right being exercised by (ii) an
  amount equal to the excess, if any, of (A) the Fair Market Value per Share on the date of exercise
  of the Stock Appreciation Right, over (B) the Fair Market Value per
  Share on the Grant Date of the Stock Appreciation Right.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Stock Appreciation Right or “SAR”:

  	
   

  	
  shall have the meaning stated in Article 7 of
  the Plan. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Subsidiary:

  	
   

  	
  any corporation, company, association or other
  entity which qualifies as a subsidiary of the Company under the definition of
  “subsidiary corporation” contained in Section 424(f) of the Code
  and/or in the Dutch law as described in article 2:24 BW.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Supervisory Board: 

  	
   

  	
  the Raad van Commissarissen of the Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Vest:

  	
   

  	
  when an Award “vests,” the Grantee becomes
  irrevocably entitled to all or a portion of his or her benefits underlying
  the Award. An Option or Stock
  Appreciation Right becomes exercisable when it vests; an award of Restricted
  Shares or Restricted Share Units

  

 

 3
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  becomes non-forfeitable when it vests.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  –

  	
   

  	
  Vesting Date:

  	
   

  	
  the date on which all or some portion of an Award
  vests.

  

 

ARTICLE 3

ADMINISTRATION AND AMENDMENTS

3.1.   Administration.   The Plan shall be administered under
the responsibility of the Supervisory Board. The Supervisory Board shall have
the exclusive authority to grant and determine the terms and conditions of
Awards under the Plan. The Supervisory Board may delegate authority to the
Committee to carry out the executory functions of the Supervisory Board and to
handle the day-to-day administration of the Plan. The Supervisory Board or the
Committee shall have the authority to interpret, to amend, to correct and to
apply the Plan and to make regulations and determinations for carrying out its
purpose. The Supervisory Board has appointed the Company to keep the accounts
and records of the Plan, and to facilitate the administration of the Plan.

3.2.   Award
Design Authority.   The
Supervisory Board shall (i) establish objectives and/or Performance
Conditions for Awards, and (ii) determine the grant and Exercise Periods
of Awards.

3.3.   Amendments.   No amendment to the Plan may,
without the approval of the General Meeting of Shareholders of the Company,
either (i) materially increase the benefits accruing to participants, (ii) materially
increase the number of Shares available under the Plan, (iii) expand the
types of awards under the Plan, (iv) materially expand the class of
participants eligible to participate in the Plan, (v) materially extend
the term of the Plan, or (vi) otherwise constitute a material change
requiring shareholder approval under applicable laws or the applicable listing
or other requirements of a stock exchange were the Shares are listed.

3.4.   Binding
Authority.   Any
interpretation of the Plan by the Supervisory Board or the Committee, and any
decision made by it with respect to the Plan or in any dispute relating to an
Award or relating to any aspect of the Plan, is final and binding on all
persons.

ARTICLE 4

PERSONS ELIGIBLE FOR AWARDS

4.1.   Persons
Eligible for Awards.   Senior
employees and members of the Executive Board of the Company and its
Subsidiaries are eligible to receive Awards granted by the Company after
approval of the Supervisory Board, at its sole discretion. In addition, key
officials of newly acquired companies may receive Awards under the Plan, within
the framework of their entry into employment with the Company. Key officials
shall be approved by the Supervisory Board, upon proposal and recommendation by
the Executive Board.

 4
 

 

 

ARTICLE 5

NUMBER OF SHARES

5.1.   Shares
Available for Issuance.   The
total number of Shares reserved and available for issuance pursuant to Awards
granted under the Plan is 2,500,000. Any
or all of such Awards may be granted in the form of Incentive Stock
Options.

5.2.   Annual
Award Limit.   The
maximum number of Shares available each year for the grant of Awards under the
Plan is 600,000.

ARTICLE 6

OPTIONS

6.1.   General.   The conditions applicable to Options
granted under this Plan are applicable upon the granting of such Options by the
Company. The number of Options granted to a Grantee shall be determined based
on objectives and/or Performance Conditions established by the Supervisory
Board. The vesting of Options may be conditional on the satisfaction of
Performance Conditions or on continued employment, or both, subject to the
provisions of this Plan and the provisions as set out in the Option Agreement.

6.2.   Terms and
Conditions of Options.   The
Supervisory Board shall determine the Grant Date, number of underlying Shares
and the other terms and conditions of Options, consistent with the terms of the
Plan. Such terms and conditions shall be set forth in an Option Agreement with
the Grantee. The terms and conditions of Options may be different for different
Options and for different Grantees. No Option granted under the Plan shall have
a feature for the deferral of gain upon the exercise of the Option.

6.3.   Exercise
Price.

(a)       The
Exercise Price of the Option shall be the Fair Market Value on the Grant Date.

(b)       The
Exercise Price shall be pro rata parte amended in the event of a decision to
split up the Share to shares with a lower nominal value.

6.4.   Exercise
Period.

(a)       The
Supervisory Board shall determine the Exercise Period of the Option. Unless
otherwise provided in the Option Agreement, (i) Options cannot be
exercised during the first three years after the Grant Date, (ii) Options
cannot be exercised after midnight of the calendar day immediately preceding
the 10th anniversary of the Grant Date, and (iii) Options may be cancelled
by the Company as soon as the Shares are no longer listed on a public
securities exchange.

 5
 

 

(b)       Options
may be exercised in whole or in part as provided in the applicable Option
Agreement. Upon exercise of an Option, the Grantee is entitled to receive, upon
payment to the Company of the applicable Exercise Price and required tax
withholding amounts, the number of Shares with respect to which the Option is
being exercised.

6.5.   Other
Terms and Conditions.   Any
Option Agreement may contain such other terms and conditions not inconsistent
with the provisions of this Plan as the Supervisory Board may deem appropriate
from time to time, including a requirement that an Option shall be exercisable
only when approved by the Supervisory Board.

6.6.   Incentive
Stock Options.   Incentive
Stock Options (“ISOs”) as defined in Section 422 of the Code, shall only
be granted to eligible Grantees who are employees of the Company or a
Subsidiary of the Company. The aggregate Fair Market Value of Shares
(determined at the time of grant) granted to a Grantee, under all plans of the
Company or its Subsidiaries, that become exercisable for the first time during
any calendar year may not exceed US $100,000, or such other amount as may be
permitted by amendment of the Code. The ISOs must comply with all of the other rules applicable
to ISOs under Section 422 of the Code.

ARTICLE 7

STOCK APPRECIATION RIGHTS

7.1.   General.   The conditions applicable to Stock
Appreciation Rights (“SAR”) granted under this Plan are applicable upon the
granting of such Stock Appreciation Rights by the Company. The number of Stock
Appreciation Rights granted to a Grantee shall be determined based on
objectives and/or Performance Conditions established by the Supervisory Board.
The vesting of Stock Appreciation Rights may be conditional on the satisfaction
of Performance Conditions or on continued employment, or both, subject to the
provisions of this Plan and the provisions as set out in the SAR Agreement.

7.2.   Terms and
Conditions of Stock Appreciation Rights.   The Supervisory Board shall determine the Grant Date,
number of underlying Shares and the other terms and conditions of Stock
Appreciation Rights, consistent with the terms of the Plan. Such terms and conditions
shall be set forth in a SAR Agreement with the Grantee. The terms and
conditions of Stock Appreciation Rights may be different for different awards
of Stock Appreciation Rights and for different Grantees. No Stock Appreciation
Right granted under the Plan shall have a feature for the deferral of gain upon
the exercise of the SAR.

7.3.   Exercise
Price.

(a)       The
Exercise Price of the SAR shall be the Fair Market Value on the Grant Date.

(b)       The
Exercise Price shall be pro rata parte amended in the event of a decision to
split up the Share to shares with a lower nominal value.

7.4.   Exercise
Period.

(a)       The
Supervisory Board shall determine the Exercise Period of a Stock Appreciation
Right. Unless otherwise provided in the SAR Agreement, (i) SARs cannot be

 6
 

 

 

exercised during
the first three years after the Grant Date, (ii) SARs cannot be exercised
after midnight of the calendar day immediately preceding the 10th anniversary
of the Grant Date, (iii) a SAR may be exercised only when the Fair Market
Value of a Share exceeds the Exercise Price of the SAR, and (iv) SARs may
be cancelled by the Company as soon as the Shares are no longer listed on a
public securities exchange.

(b)       Stock
Appreciation Rights may be exercised in whole or in part as provided in the
applicable SAR Agreement. Upon exercise of a SAR, the Grantee is entitled to
receive, upon payment to the Company of required tax withholding amounts, a
number of Shares (equal to the highest whole number of Shares) having an
aggregate Fair Market Value as of the date of Exercise equal to the Stock
Appreciation Amount.

7.5.   Other
Terms and Conditions.   A
SAR Agreement may contain such other terms and conditions not inconsistent with
the provisions of this Plan as the Supervisory Board may deem appropriate from
time to time, including a requirement that the Stock Appreciation Right shall
be exercisable only when approved by the Supervisory Board.

ARTICLE 8

RESTRICTED SHARE AWARDS

8.1.   General.   The conditions applicable to
Restricted Shares granted under this Plan are applicable upon the granting of
such Restricted Shares by the Company. The number of Restricted Shares granted
to a Grantee shall be determined based on objectives and/or Performance
Conditions established by the Supervisory Board.

8.2.   Terms and
Conditions of Restricted Shares.   Restricted
Shares awarded under the Plan shall be subject to the terms and conditions of
the applicable Restricted Share Agreement which shall be consistent with the
terms and conditions set forth in this Article 8. Each Restricted Share
Agreement shall state the aggregate number of Shares as to which it pertains,
the date on which the award of Restricted Shares was made by the Supervisory
Board, and the Restricted Period or Periods with respect to the Restricted
Shares so awarded. The vesting of Restricted Shares may be conditional on the satisfaction
of Performance Conditions or on continued employment, or both, subject to the
provisions of this Plan and the provisions as set out in the Restricted Share
Agreement. The number of Restricted Shares awarded and the Restricted Period or
Periods may be different for different Awards and for different Grantees.

8.3.   Issuance
of Shares.   Restricted
Shares shall be delivered to the Grantee at the time of grant either by
book-entry registration or by delivering to the Grantee, or a custodian or
escrow agent (including, without limitation, the Company or one or more of its
employees) designated by the Supervisory Board, a stock certificate or
certificates registered in the name of the Grantee. If physical certificates
representing Restricted Shares are registered in the name of the Grantee, such
certificates shall be registered in the Grantee’s name and shall be deposited
with the Company or its designee in an escrow account, together with stock
powers or other instruments of transfer appropriately endorsed in blank by the
Grantee. Each certificate shall bear a legend in substantially the following
form:

“This certificate and the shares of stock represented
hereby are subject to the terms and conditions (including forfeiture and
restrictions against transfer) contained in the 2005 ARCADIS NV Long-Term
Incentive Plan, and a Restricted Share Agreement between

 7
 

 

 

the registered owner of the shares represented hereby
and ARCADIS NV. Release from such terms and conditions shall be made only in
accordance with the provisions of such Plan and Agreement, copies of which are
on file in the principal office of ARCADIS NV in The Netherlands.”

If a Restricted Share Agreement specifies different
Restricted Periods for portions of the Shares so awarded, and if physical
certificates representing the Restricted Shares are registered in the name of
the Grantee, the Company shall issue a separate stock certificate for each such
portion of Shares subject to a different Restricted Period.

8.4.   Release
of Shares.   Upon
the expiration or termination of the Restricted Period and provided that the
Grantee (a) has remained continuously in the employment of the Company or
a Subsidiary through such date, and (b) has satisfied all performance or
other requirements and conditions, if any, contained in the applicable
Restricted Share Agreement, the Award shall vest and the Company shall release
from escrow or book entry-registration and deliver to the Grantee or the
Grantee’s heir(s) or estate, free of the legend described in Section 8.3
above, stock certificate(s) evidencing the Restricted Shares as to which
the Restricted Period has expired or been terminated.

8.5.   Restrictions
on Transfer of Shares.   Restricted
Shares awarded under the Plan, and the right to vote such Shares and to receive
dividends thereon, may not be sold, assigned, transferred, exchanged, pledged,
hypothecated or otherwise encumbered during the Restricted Period applicable to
such Shares. No such sale, assignment, transfer, exchange, pledge,
hypothecation or encumbrance, whether made or created voluntarily by the
Grantee or his or her agent or by operation of law, shall be recognized by, be
binding upon, or affect in any manner the rights of, the Company or any agent
or custodian holding certificates for such Shares during the Restricted Period.

8.6.   Rights of
Grantee During Restricted Period.   Except
as otherwise provided in this Plan, during the applicable Restricted Period,
the Grantee shall have all of the rights of a shareholder with respect to
Restricted Shares awarded to such Grantee including, without limitation, (a) the
right to receive cash dividends, if any, as may be declared on such Shares from
time to time, and (b) the right to vote (in person or by proxy) such
Shares at any meeting of shareholders of the Company. Any stock dividends declared
with respect to Restricted Shares shall not be delivered to the Grantee, but
instead shall be held as Restricted Shares under the same terms and conditions
as the Restricted Shares with respect to which such stock dividends are issued.

8.7.   Other
Terms and Conditions.   Restricted
Share Agreements may contain such other terms and conditions not inconsistent
with the provisions of this Plan as the Supervisory Board may deem appropriate
from time to time.

 8
 

 

 

ARTICLE 9

RESTRICTED SHARE UNIT AWARDS

9.1.   General.   The conditions applicable to
Restricted Share Units granted under this Plan are applicable upon the granting
of such Restricted Share Units by the Company. The number of Restricted Share
Units granted to a Grantee shall be determined based on objectives and/or
Performance Conditions established by the Supervisory Board.

9.2.   Terms and
Conditions of Restricted Share Unit Awards.   Restricted Shares Units awarded
under the Plan shall be subject to the terms and conditions of the applicable
Restricted Share Unit Agreement which shall be consistent with the terms and
conditions set forth in this Article 9. Restricted Share Units do not
represent actual Shares on the Grant Date. Rather, they represent the right to
receive actual Shares (or the equivalent value in cash or other property if the
Restricted Share Unit Agreement so provides) in the future, upon achievement of
such Performance Conditions or satisfaction of other vesting criteria as the
Supervisory Board establishes. Each Restricted Share Unit Agreement shall state
the aggregate number of underlying Shares as to which it pertains, the date on
which the award of Restricted Share Units was made by the Supervisory Board,
and vesting terms and criteria applicable to the Restricted Share Units so awarded.
The vesting of Restricted Share Units may be conditional on the satisfaction of
Performance Conditions or on continued employment, or both, subject to the
provisions of this Plan and the provisions as set out in the Restricted Share
Unit Agreement. The number of Restricted Share Units awarded and vesting terms
and criteria may be different for different Awards and for different Grantees.

9.3.   Vesting
and Conversion of Restricted Share Units.   Upon the end of the vesting period set forth in the
Restricted Share Unit Agreement, and provided that the Grantee (a) has
remained continuously in the employment of the Company or a Subsidiary through
such date, and (b) has satisfied all Performance Conditions and/or other
requirements, if any, contained in the applicable Restricted Share Unit
Agreement, the Award will be converted on the Vesting Date into actual Shares
(or the right to receive the equivalent value in cash or other property if the
Restricted Share Unit Agreement so provides). The Company shall, as soon as
practical after the Vesting Date, deliver to the Grantee or the Grantee’s heir(s) or
estate, stock certificate(s) evidencing the Shares underlying the
Restricted Share Units so vesting (or the equivalent value in cash or other
property if the Restricted Share Unit Agreement so provides).

9.4.   Other
Terms and Conditions.   Restricted
Share Unit Agreements may contain such other terms and conditions not
inconsistent with the provisions of the Plan as the Supervisory Board may deem
appropriate from time to time.

 9
 

 

 

ARTICLE 10

EXERCISE OF OPTIONS AND STOCK APPRECIATION RIGHTS

10.1.   Exercise
of Options and Stock Appreciation Rights.

(a)       Options
and Stock Appreciation Rights can only be exercised by the Grantee, or after
his or her death by the Grantee’s heirs. If the person exercising an Option or
Stock Appreciation Rights is not the Grantee, such person shall also deliver
with the notice of exercise appropriate proof of his or her right to exercise
the Option or Stock Appreciation Rights.

(b)       Options
and Stock Appreciation Rights may be exercised in part or in full but only for
full Shares and not for fractional Shares.

(c)       Options
and Stock Appreciation Rights shall be exercised by written notice delivered as
specified in the applicable Option or SAR Agreement or in any other manner
directed by the Supervisory Board in writing. Such written notice in the case
of an Option shall state the manner of payment elected by the Grantee. In case
of exercising a SAR, the value of the SAR is the Fair Market Value of a Share
at the date of Exercise less the Exercise Price of the SAR. A Grantee can
authorize the Company to sell the Shares acquired through the Exercise of the
Option or Stock Appreciation Rights immediately, taking into account the
Reglement. Instructions to exercise the Option or Stock Appreciation Rights are
given to the Company secretary (or to a handling agent, as appointed by the
Company secretary). Instructions to sell are given by the handling agent to the
bank.

(d)       The
Exercise of an Option or Stock Appreciation Right shall take place by means of
an Option or SAR Exercise Form signed by the Grantee to the Company
secretary (or to a handling agent, as appointed by the Company secretary)
stating for how many Shares the Option or SAR is being exercised.

(e)       Upon
Exercise of an Option or SAR, the transfer of the Shares shall take place as
soon as possible against full payment of the Exercise Price (in the case of an
Option), or other applicable Exercise requirement. The Company retains the
right to extend the transfer period in the event in the opinion of the Company
the transfer within the aforementioned period would result into damage to the
Company.

(f)        The
Grantee holds harmless and indemnifies the Company, the Company secretary
and/or the handling agent for the risks resulting from instructions which are
not clear, and for any risks resulting from errors on the part of the bank.

(g)       The
Company secretary is responsible for maintaining the Option and Stock
Appreciation Rights Register. The Company secretary informs the Grantees by
information on the ARCADIS Intranet during which period trading is not allowed
pursuant to the Reglement by designated persons.

(h)       The
Company shall facilitate the administration of the Plan, and may prescribe the
manner of exercise of Options and Stock Appreciation Rights under the Plan
(including the address to which notice of Exercise should be sent).

 10
 

 

 

ARTICLE 11

EXPIRATION OF AWARDS

11.1.   Expiration
of Awards.   Unless
Article 11.2 applies, an unvested Award shall lapse on the date the
Grantee ceases to be an employee of a Member of the Group. The Grantee cannot
exercise any right and/or receive compensation with respect to an Award that
has expired and/or lapsed.

11.2.   Termination
of Service Upon Certain Events.   Upon
ceasing to be an employee of a Member of the Group, under the circumstances as
specified hereinafter, a Grantee’s Awards shall be treated as follows:

(a)   Retirement.   Unless
otherwise provided by the Supervisory Board, if the Grantee ceases to be an
employee of any Member of the Group by reason of Retirement, then:

(i)     unvested
conditional Awards outstanding on the date of Retirement shall be earned based
upon actual performance determined at the end of the applicable three-year
performance period and shall Vest on the original Vesting Date(s) of the
Award, but shall be prorated based upon the number of full months that elapsed
between the Grant Date and the date of Retirement, divided by thirty-six (36)
months, and any such Awards that are Options or SARs shall be exercisable for
thirty-six (36) months after the date of Retirement, but with a minimum of
twelve (12) months after the Vesting Date;

(ii)    unvested
unconditional Awards outstanding on the date of Retirement shall Vest
immediately on the date of Retirement, but shall be prorated based upon the
number of full months that elapsed between the Grant Date and the date of
Retirement, divided by thirty-six (36) months, and any such Awards that are
Options or SARs shall be exercisable for thirty-six (36) months after the date
of Retirement;

(iii)   the
Grantee’s vested Awards outstanding on the date of Retirement shall be
exercisable for thirty-six (36) months after the date of Retirement.

(b)   Death or permanent disability.   Unless
otherwise provided by the Supervisory Board, if the Grantee ceases to be an
employee of any Member of the Group by reason of death or permanent disability,
then:

(i)     the
Grantee’s unvested conditional Awards outstanding on the date of termination of
employment shall be earned based upon actual performance determined at the end
of the applicable three-year performance period and shall Vest on the original
Vesting Date(s) of the Award, but shall be prorated based upon the number
of full months that elapsed between the Grant Date and the date of termination
of employment, divided by thirty-six (36) months, and any such Awards that are
Options or SARs shall be exercisable for twelve (12) months after the Vesting
Date;

(ii)    the
Grantee’s unvested unconditional Awards outstanding on the date of termination
of employment shall Vest immediately on the date of termination of employment,
but shall be prorated based upon the number of months that elapsed between the
Grant Date and the date of termination of employment, divided by thirty-six
(36) months, and any such Awards that are Options or SARs shall be exercisable
for

 11
 

 

 

twelve (12) months
after the date of termination of employment; and

(iii)   the
Grantee’s vested Awards outstanding on the date of termination of employment
shall be exercisable for twelve (12) months after the date of termination of employment.

(c)   Redundancy, change of control,
termination without cause.   Unless otherwise
provided by the Supervisory Board, if the Grantee ceases to be an employee of
any Member of the Group by reason of (I) the Grantee’s employing company
ceasing to be under the control of the Company, (2) a transfer of the
undertaking, or the part of the undertaking, in which the Grantee works to a
person or body which is neither under the control of the Company nor a Member
of the Group, (3) redundancy, or (4) termination without cause, then:

(i)     the
Grantee’s unvested conditional Awards outstanding on the date of termination of
employment shall be earned based upon actual performance determined at the end
of the applicable three-year performance period and shall Vest on the original Vesting
Date(s) of the Award, but shall be prorated based upon the number of full
months that elapsed between the Grant Date and the date of termination of
employment, divided by thirty-six (36) months, and any such Awards that are
Options or SARs shall be exercisable for three (3) months after
the Vesting Date;

(ii)    the
Grantee’s unvested unconditional Awards outstanding on the date of termination
of employment shall Vest immediately on the date of termination of employment,
but shall be prorated based upon the number of full months that elapsed between
the Grant Date and the date of termination of employment, divided by thirty-six
(36) months, and any such Awards that are Options or SARs shall be exercisable
for three (3) months after the date of termination of employment; and

(iii)   the
Grantee’s vested Awards outstanding on the date of termination of employment
shall be exercisable for three (3) months after the date of termination of
employment.

(d)   Voluntary Termination.   Unless
otherwise provided by the Supervisory Board, if the Grantee terminates his or
her employment voluntarily, then all of the Grantee’s Awards (whether vested or
unvested, conditional or unconditional), shall expire on the date of
termination of employment.

(e)   Termination by the Company for Cause.   Unless
otherwise provided by the Supervisory Board, if the Company terminates the
Grantee’s employment for cause (as defined by the Supervisory Board), then all
of the Grantee’s Awards (whether vested or unvested, conditional or
unconditional), shall expire on the date preceding the date upon which notice
of termination for cause is provided by the Company.

(f)   Member of the Group.   For
the purposes of this Article 11, a Grantee shall not be treated as ceasing
to be an employee of a Member of the Group until he or she ceases to be an
employee of any Member of the Group or if he or she recommences employment with
a Member of the Group within ten (10) days.

 12
 

 

 

11.3   Determination
of Unvested Conditional Awards.   In the event Article 11.2
applies to an unvested conditional Award, the Supervisory Board shall determine
whether and to what extent the Performance Conditions have been satisfied at
the end of the performance period. The Supervisory Board may decide in its
discretion that the performance period in respect to an Award should be treated
as ending on the date of termination of employment, and the unvested
conditional Award should Vest immediately, to the extent that the Performance
Condition has been satisfied (as determined by the Supervisory Board in the
Agreement or in such manner as it considers reasonable).

ARTICLE 12

CHANGES IN CAPITAL STRUCTURE

12.1.   Equitable
Adjustments.   In the event of a
corporate event or transaction involving the Company (including, without
limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination or exchange of shares), the authorization limits under Section 5.1
and 5.2 shall be adjusted proportionately, and the Supervisory Board may adjust
the Plan and Awards to preserve the benefits or potential benefits of the
Awards. Action by the Supervisory Board may include: (i) adjustment of the
number and kind of shares which may be delivered under the Plan; (ii) adjustment
of the number and kind of shares subject to outstanding Awards; (iii) adjustment
of the Exercise Price of outstanding Options or SARs or the measure to be used
to determine the amount of the benefit payable on an Award; and (iv) any
other adjustments that the Supervisory Board determines to be equitable. In
addition, upon the occurrence or in anticipation of such an event, the
Supervisory Board may, in its sole discretion, provide (i) that Awards
will be settled in cash rather than Shares, (ii) that Awards will become
immediately vested and that Options or SARs will become immediately exercisable
and will expire after a designated period of time to the extent not then
exercised, (iii) that Awards will be assumed by another party to a
transaction or otherwise be equitably converted or substituted in connection
with such transaction, (iv) that outstanding Awards may be settled by
payment in cash or cash equivalents equal to the excess of the Fair Market
Value of the underlying Shares, as of a specified date associated with the
transaction, over the Exercise Price of the Award, (v) that performance
targets and performance periods for conditional Awards will be modified,
consistent with Code Section 162(m) where applicable, or (vi) any
combination of the foregoing. The Supervisory Board’s determination need not be
uniform and may be different for different Grantees whether or not such
Grantees are similarly situated. Without limiting the foregoing, in the event
of a subdivision of the outstanding Shares (stock-split), a declaration of a
dividend payable in Shares, or a combination or consolidation of the
outstanding Shares into a lesser number of Shares, the authorization limits
under Section 5.1 and 5.2 shall automatically be adjusted proportionately,
and the Shares then subject to each Award shall automatically be adjusted
proportionately without any change in the aggregate purchase price for Options
or SARs. To the extent that any adjustments made pursuant to this Article 12
cause Incentive Stock Options to cease to qualify as Incentive Stock Options,
such Options shall be deemed to be nonstatutory stock options.

ARTICLE 13

ADDITIONAL PROVISIONS

13.1.   Confirmation
of Grant.   Grants
of Awards, including the material terms and conditions thereof, shall be
confirmed in writing by the Executive Board to the Grantee by means of a
written and signed Agreement for Acceptance, based upon a written and signed

 13
 

 

 

decision of the Supervisory Board. Such confirmation
shall be provided to the Grantee as soon as administratively feasible after the
Grant Date.

13.2.   Acceptance.   Acceptance of the Award can only be
done in writing by the Grantee within the time period after the Grant Date as
specified in the Agreement. If the Grantee does not accept his or her Award
within the prescribed time frame, the Award shall be deemed to have lapsed. The
Grantee who accepts an Award confirms the following: to have knowledge of the “Regulatory
concerning Insider Information ARCADIS N.V.” (Reglement), and to have read the
contents thereof and to act in conformity therewith; agrees to act in the
future in conformity with possible changes in the Reglement; agrees to act in
conformity with any other internal regulation regarding the due observance of
the Reglement.

13.3.   Non-transferability.   Awards are personal and not
transferable. Awards cannot be pledged or otherwise encumbered. In the event
Awards are transferred, pledged or otherwise encumbered the Awards shall be
deemed to have lapsed without any compensation to the Grantee.

13.4.   Compliance
with Other Laws and Regulations.   The
Plan, the grant and exercise of Awards hereunder, and the obligation of the
Company to sell and deliver Shares, shall be subject to all applicable laws,
rules, and regulations of the Netherlands and United States and to such
approvals by government or regulatory agencies as may be required or deemed
advisable by the Supervisory Board. The Company shall not be required to issue
or deliver any certificates for Shares prior to (a) the listing or
quotation of such Shares on any stock exchange or equivalent securities market
on which the Common Stock may then be listed or quoted and (b) the completion
of all registrations or qualifications of such Shares under applicable
Netherlands, United States, or state law, or such other requirements which the
Supervisory Board shall, in its sole discretion, determine to be required,
necessary or advisable.

13.5.   No Rights
as Shareholders.   No
Grantee shall have any rights as a shareholder of the Company with respect to
any Share subject to an Award, prior to the date that the Shares covered
thereby are transferred to such Grantee.

13.6.   Withholding.   Whenever the Company proposes or is
required to issue or transfer Shares under the Plan, the Company shall have the
right to condition such issue or transfer on the requirement that the Grantee
remit to the Company an amount sufficient to satisfy all Netherlands, United
States, state or local withholding income tax liability, as well as social
security contributions, associated with such issue or transfer in such form as
the Company may determine or accept in its sole discretion, including payment
by surrender or retention of Shares prior to the delivery of any certificate or
certificates for such Shares. Whenever under the Plan payments are to be made
in cash, such payments shall be made net of an amount sufficient to satisfy all
related Netherlands, United States, state, or local withholding tax liability.

13.7.   Continued
Employment Not Presumed.   This
Plan and any document describing this Plan and the grant of any Award hereunder
shall not (a) give any Grantee a right to continued employment or position
or office with the Company or any Member of the Group or (b) adversely
affect the right of the Company or any Member of the Group to terminate the
employment, of position or office of the Grantee with or without cause.

 14
 

 

 

13.8.   Effective
Date; Duration.   The
Plan first became effective as of May 11, 2005 subject to approval by the
shareholders meeting of the Company on May 11, 2005, and shall expire on December 31, 2011. The Supervisory Board
approved additional amendments to the Plan, as set forth herein, on [December 15,
2005. No Awards may be granted under the Plan after December 31, 2011, but Awards granted on or
before that date may be exercised according to the terms of this Plan and the
related agreements and shall continue to be governed by and interpreted
consistent with the terms of this Plan.

13.9.   Unfunded
Plan.   The Plan,
insofar as it provides for Awards, shall be unfunded, and the Company shall not
be required to segregate any assets that may at any time be represented by
Awards under this Plan. Any liability of the Company to any person with respect
to any Award under this Plan shall be based solely upon and limited to the
contractual obligations of the Company towards such person as evidenced in the
applicable written agreement entered into by the Company and such person under
and pursuant to this Plan and no such obligations of the Company shall be
deemed to be secured by any pledge of, or other encumbrance on, any assets of
the Company or any of its Subsidiaries.

13.10.   Taxes.

(a)       In the
event granting of or exercise of an Award results in a taxable event, the
Grantee is liable for payment of all relevant taxes.

(b)       Any tax
or social security premium payable by the Grantee or his successors as a result
of the granting, the maintaining, the exercising or the transfer, respectively,
of Awards are under all circumstances for the account of the Grantee or, as
applicable, his successors.

(c)       Changes
in tax regulations or social security regulations are for the account and risk
of the Grantee.

(d)       In the
event the Awards are not exercised or do not vest, no repayment of paid taxes
and social security premiums shall take place.

(e)       It is
noted that in some jurisdictions exercising Awards after termination of the
Grantee’s employment might have tax implications.

13.11.   Domicile.   Communications and notices addressed
to the Grantee shall be sent to the address shown in the records of the
Company. Communications to the Company shall be sent to the attention of the
Company secretary or at such other address as the Company secretary may
hereafter designate in writing to the Grantee.

13.12.   Term of
Plan.   This Plan
is the successor of the ARCADIS 2001 Long Term Incentive Share Option Plan and
is applicable for the book years of the Company 2005 up to and including 2011.
Granting of any Award during any year does not result in an obligation of the
Company to grant Awards for any following year nor in an entitlement of any
Grantee to receive Awards in any following year.

 15
 

 

 

13.13.   Governing
Law.   The Plan and
all Award Agreements shall be construed in accordance with and governed by the
laws of the Kingdom of the Netherlands and, where applicable, the United
States.

 16

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