Document:

Exhibit102

Exhibit 10.2
DAVID PETERSCHMIDT 
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of March 25, 2014 by and between CIBER, INC., a Delaware corporation (the “Company”), and DAVID PETERSCHMIDT (the “Executive”).
WHEREAS, the Company and the Executive entered into an Employment Agreement dated July 1, 2010 (the “Original Employment Agreement”);
WHEREAS, the Company and the Executive desire to amend the Original Employment Agreement in its entirety on the terms set forth below.
Accordingly, the parties hereto agree as follows:
1.Term.  The Company hereby employs the Executive, and the Executive hereby accepts such employment for a term commencing as of the date hereof and ending March 24, 2016  unless sooner terminated in accordance with the provisions of Section 4 or Section 5 (the period during which the Executive is employed hereunder being hereinafter referred to as the “Term”). 
2.    Duties.
(a)The Executive, in his capacity as President and Chief Executive Officer (“CEO”) shall faithfully perform for the Company the duties of said office and shall perform such other duties of an executive, managerial, or administrative nature, as shall be specified and designated from time to time by the board of directors or similar governing body of the Company (the “Board”) (including the performance of services for, and serving on the Board of Directors of, any subsidiary or affiliate of the Company without any additional compensation). The Executive will be based at the Company’s headquarters, presently located in Greenwood Village, Colorado.  The Executive shall devote substantially all of the Executive’s business time and effort to the performance of the Executive’s duties hereunder, provided that in no event shall this sentence prohibit the Executive from performing personal and charitable activities and any other activities approved by the Board, so long as such activities do not materially and adversely interfere with the Executive’s duties for the Company.
(b)    The Company shall nominate Executive for election (or re-election, as the case may be) as a member of the Board for so long as Executive remains Chief Executive Officer of the Company.
3.    Compensation.

 

3.1    Salary.  The Company shall pay the Executive during the Term a base salary at the rate of $710,000 per annum (the “Annual Salary”), payable bi-weekly and subject to regular deductions and withholdings as required by law.  The Annual Salary may be increased (but not decreased) annually by an amount as may be approved by the Board, and, upon such increase, the increased amount shall thereafter be deemed to be the Annual Salary for purposes of this Agreement.  
3.2    Bonus.  The Executive will be entitled to such bonuses as may be authorized by the Board based on achievement of performance targets specified annually by the Board.  The Executive’s bonus amount will be 105% of Annual Salary if the target is achieved for the respective fiscal year.  There shall be no minimum guaranteed bonus amount, thus, the bonus paid to the Executive may be greater or lesser than 105% of Annual Salary based upon whether the target performance factors have been achieved or exceeded.  Any annual bonus payable to the Executive hereunder shall be paid fully in cash, payable quarterly, and shall be paid no later than 21⁄2 months following the fiscal quarter with respect to which the bonus is earned.  The performance targets established for the Executive shall be substantially the same as those performance targets established for other “Section 16 Officers” of the Company.  
3.3    Equity-Based Awards.  The Executive may from time to time be awarded such restricted stock units, stock options, or other equity-based awards as the Board determines in its sole discretion to be appropriate, which awards shall be evidenced by separate award agreements; provided, however, that the target amount of equity-based awards granted to the Executive for any year shall not be less than the target amount of equity-based awards granted to the chief executive officer of companies in the 50th percentile of the Company’s peer group, as determined by the compensation consultant retained by the Board.  Effective July 1, 2010 (or promptly upon the Executive commencing services under the Original Employment Agreement), the Executive was awarded, as an inducement grant outside of the Equity Incentive Plan, 1,400,000 stock options (the “Initial Equity Grant”), twenty-five percent (25%) of which vested on July 1, 2011, twenty-five percent (25%) of which vested on July 1, 2012, twenty-five percent (25%) of which vested on July 1, 2013 and twenty-five percent (25%) of which shall vest on July 1, 2014, in each case subject to the Executive’s continued employment. Stock options that comprise the Initial Equity Grant shall have a term of seven (7) years from the date of the Initial Equity Grant (the last date of such term, the “Option Expiration Date”).  The Initial Equity Grant shall be subject to the terms and conditions set forth in the Equity Incentive Plan to the extent applicable, a copy of which is attached hereto as Exhibit “A” and by this reference made a part hereof (as may be amended from time to time).  For the purposes of this Section 3.3, “Equity Incentive Plan” shall mean the CIBER, Inc. 2004 Incentive Plan (as amended and restated as of February 28, 2010).
3.4    Benefits - In General.  The Executive shall have the right during the Term to participate in any group life, medical, dental or disability insurance plans, health programs, pension and profit sharing plans and similar benefits that are made available to other senior executives of 

the Company generally, on the same or more favorable terms (as determined by the Board in its sole discretion) as may be made available to such other executives, in each case to the extent that the Executive is eligible under the terms of such plans or programs.
3.5    Vacation/Personal Days.  During the Term, the Executive shall be entitled to take vacation and/or personal days in accordance with the Company’s human resources policies for senior executives.
3.6    Expenses - General.  The Company shall pay or reimburse the Executive for all ordinary and reasonable out-of-pocket expenses actually incurred (and, in the case of reimbursement, paid) by the Executive during the Term in the performance of the Executive’s services under this Agreement, provided that the Executive submits such expenses in accordance with the policies applicable to senior executives of the Company generally.
3.7    Business Travel.  The Executive shall be subject to the Company’s travel policy, as may be amended from time to time, when the Executive is required to travel for business; provided, however, that the Executive shall have the right to cause the Company to amend its travel policy.
4.    Termination upon Death or Disability.  If the Executive dies during the Term, the obligations of the Company to or with respect to the Executive shall terminate in their entirety, except as otherwise provided under this Section 4.  If the Executive becomes eligible for disability benefits under the Company’s long-term disability plans and arrangements (or, if none apply, would have been so eligible under the most recent plan or arrangement), the Company shall have the right, to the extent permitted by law, to terminate the employment of the Executive solely as a result of such disability upon notice in writing to the Executive and such termination in and of itself shall not be, nor shall it be deemed to be, a breach of this Agreement; provided that, the Company will have no right to terminate the Executive’s employment if, in the opinion of a qualified physician reasonably acceptable to the Company, it is reasonable to assume that the Executive will be able to resume the Executive’s duties on a regular full-time basis within 90 days of the date the Executive receives notice of such termination.
Upon death of the Executive or upon termination of the Executive’s employment by virtue of his qualification for long-term disability (i) the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall have no right to receive any compensation or benefits under this Agreement on and after the Effective Date of the Termination (as defined below in this Section 4), other than the Annual Salary earned and unpaid under this Agreement prior to the Effective Date of the Termination, a pro-rata bonus with respect to the calendar year in which the Effective Date of Termination occurred to the extent performance goals related to the bonus have been achieved (to be paid at the same time bonuses are normally paid for the year), 

reimbursement for reasonable expenses actually incurred by the Executive (or the Executive’s estate or wife in the case of the death of the Executive) to move personal effects from Colorado to California and for the Closing Costs related to the sale of the Executive’s Colorado residence, and other benefits (and reimbursement under this Agreement for expenses incurred but not paid prior to the Effective Date of the Termination), (ii) all unvested equity awards held by the Executive (including the Initial Equity Grant) shall be 100% vested as of the Effective Date of the Termination, provided, however, that if the equity awards are subject to performance vesting requirements, such vesting will only occur to the extent the performance goals for any pending bonus period(s) are subsequently determined to have been achieved, and (iii) all vested equity awards (including the vested portion of the Initial Equity Grant) must be exercised by the earlier of (A) the one year anniversary of the Effective Date of the Termination, and (B) the Option Expiration Date. In the event of a termination of the Executive’s employment as a result of his qualification for long-term disability, in addition to the amount specified in the first sentence of this paragraph, the Executive will also be entitled to receive disability benefits under the Company’s then existing long-term disability plans and arrangements.  This Agreement shall otherwise terminate upon the Effective Date of the Termination and there shall be no further rights with respect to the Executive hereunder (except as provided in Section 8.14).  For purposes of this Section 4, the “Effective Date of the Termination” shall mean the date of death or the date on which a notice of termination by virtue of Executive’s qualification for long-term disability is given by the Company or any later date set forth in such notice of termination. For purposes of this Agreement, “Closing Costs” shall mean the expenses, over and above the price of the property that parties to such a sale normally incur and shall include appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges, but shall not include (i) one half of any real estate broker’s fees or commissions or (ii) any loss incurred due to change in value of the residence.
For the avoidance of doubt, the Executive acknowledges and agrees that the payments set forth in this Section 4 constitute liquidated damages for termination of his employment during the Term upon his death or by virtue of his qualification for long-term disability.
5.    Other Terminations of Employment.
5.1    Termination for Cause; Termination of Employment by the Executive Without Good Reason; Retirement.
(a)    For purposes of this Agreement, “Cause” shall mean:
(i)    the Executive being indicted or charged with a crime constituting a felony;
(ii)    the Executive’s commission of an act of fraud, theft or dishonesty with respect to the Company;

(iii)    the continuing failure or habitual neglect by the Executive to perform the Executive’s duties hereunder;
(iv)    any material violation of the Company’s announced policies including without limitation, the Company’s Code of Business Conduct and Ethics, a copy of which is attached hereto as Exhibit “B” and by this reference made a part hereof (as may be amended and published from time to time); or
(v)    the Executive’s material breach of this Agreement.  
Notwithstanding the foregoing, (X) if there exists (without regard to this sentence) an event or condition that constitutes Cause under clauses (iii), (iv) or (v) above that is capable of being cured by the Executive, the Board shall notify the Executive in writing of the existence of such event or condition and the Executive shall have thirty (30) days from the date of such notice to cure such event or condition and, if the Executive does so, such event or condition shall not constitute Cause hereunder and (Y) any determination of the existence of an event or condition that constitutes Cause shall be made by at least 2/3 of the members of the Board (excluding the Executive).
(b)    For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to in writing by the Executive:
(i)    the assignment to the Executive of duties or responsibilities which are materially inconsistent with the Executive’s level of duties and responsibilities as the CEO of the Company and its subsidiaries, or any material diminution in the nature or status of the Executive’s duties or responsibilities as the CEO of the Company and its subsidiaries (including, without limitation, the Executive ceasing to be CEO of the Company and its subsidiaries);
(ii)    a reduction by the Company in the Executive’s annual base salary or annual incentive compensation opportunity (including an adverse change in performance criteria or a decrease in the target amount of annual incentive compensation);
(iii)    a requirement by the Company that the Executive’s work location be moved more than 50 miles from the Company’s principal place of business in Greenwood Village, Colorado; or 
(iv)    the Company’s material and willful breach of this Agreement.
An event or condition shall cease to constitute Good Reason one hundred twenty (120) days after the event or condition first occurs if the Executive has not previously given written notice thereof.

(c)    The Company may terminate the Executive’s employment for Cause and such termination, in and of itself, shall not be, nor shall it be deemed to be, a breach of this Agreement.  If the Company terminates the Executive for Cause as aforesaid, (i) the Executive shall have no right to receive any compensation or benefit under this Agreement on and after the Effective Date of the Termination (as defined below in this Section 5.1(c) other than Annual Salary earned and unpaid under this Agreement prior to the Effective Date of the Termination and other benefits, excluding any bonuses with respect to the calendar year in which the Effective Date of the Termination occurred (and reimbursement under this Agreement for expenses incurred but not paid prior to the Effective Date of the Termination), (ii) all vested equity awards (including any vested portion of the Initial Equity Grant) shall be void for all purposes as of the Effective Date of the Termination, (iii) the provisions of Section 5.4 shall apply, and (iv) this Agreement shall otherwise terminate upon the Effective Date of the Termination and the Executive shall have no further rights hereunder (except as provided in Section 8.14). For purposes of this Section 5.l(c), the “Effective Date of the Termination” shall mean the date on which a notice of termination is given by the Company or any later date set forth in such notice of termination.
(d)    In the event that the Executive terminates his employment without Good Reason, including Executive’s retirement, the Executive shall have no right to receive any compensation or benefit under this Agreement on and after the Effective Date of the Termination (as defined below in this Section 5.1(d)) for any remaining period of the Term, or otherwise, other than (i) Annual Salary earned and unpaid under this Agreement prior to the Effective Date of the Termination and other benefits, a pro-rata bonus with respect to the calendar year in which the Effective Date of the Termination occurred to the extent performance goals related to the bonus have been achieved (to be paid at the same time bonuses are normally paid for the year) and other benefits (and reimbursement under this Agreement for expenses incurred but not paid prior to the Effective Date of the Termination), (ii) all vested equity awards (including the vested portion of the Initial Equity Grant) must be exercised by the Executive by the earlier of (A) the three-year anniversary of the Effective Date of the Termination, and (B) the Option Expiration Date, (iii) the provisions of Section 5.4 shall apply, (iv) the Executive’s status as Global Services member will be renewed at the Company’s expense for two years from the Effective Date of Termination; and (v) this Agreement shall otherwise terminate upon the Effective Date of the Termination and the Executive shall have no further rights hereunder (except as provided in Section 8.14). For purposes of this Section 5.1(d), the “Effective Date of the Termination” shall mean the date on which a notice of termination or retirement is given by the Executive, or any later date set forth in such notice of termination or retirement.
5.2    Termination Without Cause; Termination for Good Reason.  The Company may terminate the Executive’s employment at any time without Cause, for any reason or no reason, and the Executive may terminate the Executive’s employment with the Company for Good Reason.  If the Company or the Executive terminates the Executive’s employment and such termination is 

not described in Section 4, Section 5.1 or Section 5.3, the Executive shall have no right to receive any compensation or benefit hereunder on and after the Effective Date of the Termination (as defined below in this Section 5.2) for any remaining period of the Term, or otherwise, other than (i) Annual Salary earned and unpaid under this Agreement prior to the Effective Date of the Termination, any bonus for the prior year not yet paid, a pro-rata bonus with respect to the calendar year in which the Effective Date of Termination occurred to the extent performance goals related to the bonus have been achieved (to be paid at the same time bonuses are normally paid for the year) and other benefits (and reimbursement under this Agreement for expenses incurred but not paid prior to the Effective Date of the Termination), (ii) all unvested equity awards held by the Executive shall be 100% vested as of the Effective Date of the Termination, provided, however, that if the equity awards are subject to performance vesting requirements, such vesting will only occur to the extent the performance goals for any pending bonus period(s) are subsequently determined to have been achieved, (iii) the Initial Equity Grant shall be 100% vested as of the Effective Date of the Termination, (iv) all vested equity awards (including the vested portion of the Initial Equity Grant) must be exercised by the Executive by the earlier of (A) the eighteen (18) month anniversary of the Effective Date of the Termination, and (B) the Option Expiration Date, (v) the Executive and his spouse shall continue to receive health and dental benefits for twenty-four (24) months (whether via the Company’s payment of COBRA premiums for such period or the payment by the Company of premiums for individual coverage for the Executive and his spouse), (vi) the Company shall reimburse the Executive for reasonable expenses actually incurred by the Executive to move personal effects from Colorado to California and for the Closing Costs related to the sale of the Executive’s Colorado residence; (vii) the Executive’s status as Global Services member will be renewed at the Company’s expense for two years from the Effective Date of Termination; and (viii) this Agreement shall otherwise terminate upon the Effective Date of the Termination and the Executive shall have no further rights hereunder (except as provided in Section 8.14); provided that in order for the Executive to receive any benefit or item in the foregoing clauses (ii), (iii), (iv), (v), (vi) and (vii), the Executive shall first execute a separation agreement and legal release in accordance with Section 8.19.  For purposes of this Section 5.2, the “Effective Date of the Termination” shall mean the date of termination specified in the Company’s or the Executive’s notice of termination, as applicable.
5.3    Termination Upon Change in Control.  Notwithstanding the provisions set forth in Section 5.2, if the Company terminates Executive’s employment without Cause or Executive terminates employment for Good Reason Following a Change in Control on or within 24 months after a Change in Control, (i) the Executive shall have no right to receive any compensation or benefit hereunder on and after the Effective Date of the Termination (as defined below in this Section 5.3) other than Annual Salary earned and unpaid under this Agreement prior to the Effective Date of the Termination, any bonus for the prior year not yet paid, a pro­ rata bonus with respect to the calendar year in which the Effective Date of Termination occurred to the extent performance goals 

related to the bonus have been achieved (to be paid at the same time bonuses are normally paid for the year), and other benefits (and reimbursement under this Agreement for expenses incurred but not paid prior to the Effective Date of the Termination), (ii) the Executive shall receive a cash payment equal to the Severance Payment (as defined in the final paragraph of this Section 5.3) payable after the Release Effective Date, (iii) the Executive and his spouse shall continue to receive health and dental benefits for eighteen (18) months, (iv) all unvested equity awards held by the Executive (including the Initial Equity Grant) shall fully vest, (v) all vested equity awards (including the Initial Equity Grant) must be exercised by the Executive by the earlier of (A) the one-year anniversary of the Effective Date of the Termination and (B) the Option Expiration Date, and (vi) this Agreement shall otherwise terminate upon the Effective Date of the Termination and the Executive shall have no further rights hereunder (except as provided in Section 8.14) provided that in order for the Executive to receive any amounts or items in the foregoing clauses (ii), (iii) and (iv), the Executive shall first execute a separation agreement and legal release in accordance with Section 8.19.
For purposes of this Section 5.3, (A) the “Effective Date of the Termination” shall mean the date of termination specified in the Company’s or the Executive’s notice of termination, as applicable and (B) a “Change in Control” means the occurrence of one or more of the following events; (i) any “person” (as such term is used in Sections 3(a)(9) and 13(d) of the Securities Exchange Act of 1934 as amended (the “Act”)) or “group” (as such term is used in Section 13(d)(3) of the Act) is or becomes a “beneficial owner” (as such term is used in Rule 13d-3 promulgated under the Act) of more than 40% of the Voting Stock of the Company; (ii) within any 24 month period the majority of the Board consists of individuals other than Incumbent Directors, which term means the members of the Board on the date hereof; provided that any person becoming a director subsequent to such date whose election or nomination for election was supported by a majority of the directors who then comprised the Incumbent Directors shall be considered to be an Incumbent Director; (iii) the Company adopts any plan of liquidation providing for the distribution of all or substantially all of its assets; (iv) the Company transfers all or substantially all of its assets or business (unless the shareholders of the Company immediately prior to such transaction beneficially own, directly or indirectly, in substantially the same proportion as they owned the Voting Stock of the Company, all of the Voting Stock or other ownership interests of the entity or entities, if any, that succeed to the business of the Company or the Company’s ultimate parent company if the Company is a subsidiary of another corporation); or (v) any merger, reorganization, consolidation or similar transaction unless, immediately after consummation of such transaction, the shareholders of the Company immediately prior to the transaction hold, directly or indirectly, more than 50% of the Voting Stock of the Company or the Company’s ultimate parent company if the Company is a subsidiary of another corporation. For purposes of this Change in Control definition, the “Company” shall include any entity that succeeds to all or substantially all of the business of the Company and “Voting Stock” shall mean securities or ownership interests of any class or classes having general 

voting power under ordinary circumstances, in the absence of contingencies, to elect the directors of a corporation.  Notwithstanding anything to the contrary herein, if (i) a Change in Control results in a successor organization to the Company and (ii) such successor organization does not assume, convert or replace all of the Executive’s unvested equity awards, then all such unvested equity awards shall fully vest effective as of the date of such Change in Control.
For purposes of this Agreement, “Good Reason Following a Change in Control” shall mean, unless otherwise consented to in writing by the Executive:
(i)    the assignment to the Executive of a duty or responsibility which is inconsistent with the Executive’s duties and responsibilities previously assigned to the Executive as the CEO of the Company and its subsidiaries, or any diminution in the nature or status of the Executive’s duties or responsibilities as the CEO of the Company and its subsidiaries (including, without limitation, the Executive ceasing to be CEO of the Company and its subsidiaries), in all cases other than isolated incidents which, if curable, are promptly remedied by the Company;
(ii)    a reduction by the Company in the Executive’s annual base salary, annual incentive compensation opportunity, or long term incentive compensation opportunity (including an adverse change in performance criteria or a decrease in the target amount of annual incentive or long term compensation);
(iii)    a requirement by the Company that the Executive’s work location be moved more than 50 miles from the Company’s principal place of business in Greenwood Village, Colorado; or
(iv)    the Company’s material and willful breach of this Agreement.
An event or condition shall cease to constitute Good Reason Following a Change in Control one hundred twenty (120) days after the event or condition first occurs if the Executive has not previously given written notice thereof.
The “Severance Payment” means two (2) times the Executive’s Annual Salary and annual bonus at target level in effect on the Effective Date of the Termination.
5.4    Nature of Payments.  For the avoidance of doubt, the Executive acknowledges and agrees that the Company’s payment obligations set forth in this Section 5 constitute liquidated damages for termination of the Executive’s employment during the Term.
6.    Noncompetition.
6.1    Noncompetition.  The Executive shall not, during the term of his employment and for eighteen (18) months following the termination of his employment, work as an employee 

or independent contractor or become an investor or lender of any business, corporation, partnership or other entity engaged in a Competing Business.  An investment by the Executive of up to 2% of the outstanding equity in a publicly traded corporation shall not constitute a violation of this Section 6.1.  A “Competing Business” is a business which the Company has engaged in, or has actively investigated engaging in, at any time during the twenty-four (24) months prior to the termination of the Executive’s employment.
6.2    No Solicitation of Clients.  The Executive shall not, during the term of his employment and for eighteen (18) months following the termination of his employment (unless the Company grants him written authorization): (a) call upon, cause to be called upon, solicit or assist in the solicitation of, any client or potential client of the Company for the purpose of selling, renting or supplying any product or service competitive with the products or services of the Company; (b) provide any product or services to any client or potential client of the Company which is competitive with the products or services of the Company; or (c) request, recommend or advise any client or potential client to cease or curtail doing business with the Company. Any individual, governmental authority, corporation, partnership or other entity to whom the Company has provided services or products at any time prior to or during the Executive’s employment or to whom the Company has made one or more sales or sales calls during the eighteen (18) month period preceding the date of termination of the Executive’s employment shall be deemed a client or potential client.
6.3    No Hire of Other Employees or Contractors.  Except on behalf of the Company, the Executive shall not, during the term of his employment and for a period of eighteen (18) months following the termination of his employment: (a) employ, engage or seek to employ or engage any individual or entity, on behalf of the Executive or any entity (including a client of the Company), who is employed or engaged by the Company or who was employed or engaged by the Company during the six (6) month period preceding the Executive’s termination; (b) solicit, recommend or advise any employee of the Company or independent contractor to terminate their employment or engagement with the Company for any reason; or (c) solicit recruiting prospects and/or candidates whose files are actively maintained or have been maintained during the last six (6) months prior to the Executive’s termination.
6.4    No Control of the Company.  The Executive shall not, during the term of his employment and for eighteen (18) months following the termination of his employment (unless the Board authorizes such action in advance) take any action in furtherance of a third party acquiring, or assist, cooperate with, hold discussions with or otherwise encourage any person in acquiring, attempting to acquire or taking any action in furtherance of acquiring, directly or indirectly, control (as defined in Rule 12b-2 of the Act) of the Company.
6.5    Reasonable and Necessary Restrictions.  The Executive acknowledges that the restrictions, prohibitions and other provisions hereof, including, without limitation those 

contained in Sections 6.1, 6.2, 6.3 and 6.4 are reasonable, fair and equitable in terms of duration, scope and geographic area, are necessary to protect the legitimate business interests of the Company and are a material inducement to the Company to enter into this Agreement.
6.6    Forfeiture of Severance Payments.  In the event the Executive breaches any provision of Sections 6.1, 6.2, 6.3, 6.4 or 7.2, in addition to any other remedies that the Company may have at law or in equity, (i) the Executive shall promptly reimburse the Company for any Severance Payments received from, or payable by, the Company and (ii) the Company’s obligation to continue to provide any payments or benefits to the Executive after the date of such breach shall cease and the Executive shall no longer be entitled to receive such payments or benefits. In addition, the Company shall be entitled in its sole discretion to offset all or any portion of the amount of any unpaid reimbursements against any amount owed by the Company to the Executive.

7.    Confidentiality.
7.1    Confidential Information and Materials.  All of the Confidential Information and Materials, as defined herein, are and shall continue to be the exclusive confidential property and trade secrets of the Company.  Confidential Information and Materials have been or will be disclosed to the Executive solely by virtue of his employment with the Company and solely for the purpose of assisting him in performing his duties for the Company.  “Confidential Information and Materials” refers to all information belonging to or used by the Company or the Company’s clients relating to internal operations, procedures and policies, finances, income, profits, business strategies, pricing, billing information, compensation and other personnel information, client contacts, sales lists, employee lists, technology, software source codes, programs, costs, marketing plans, developmental plans, acquisition or disposition plans, computer programs, computer systems, inventions, developments, personnel manuals, computer program manuals, programs and system designs, and trade secrets of every kind and character, whether or not they constitute a trade secret under applicable law and whether developed by the Executive during or after business hours. The Executive acknowledges and agrees all Confidential Information and Materials shall, to the extent possible, be considered works made for hire for the Company under applicable copyright law.  To the extent any Confidential Information and Materials are not deemed to be a work made for hire, the Executive hereby assigns to the Company any rights he may have or may acquire in such Confidential Information and Materials as they are created, throughout the world, in perpetuity.  Further, the Executive hereby waives any and all moral rights he may have in such Confidential Information and Materials.  Notwithstanding the foregoing, the Company acknowledges that it shall have no right to inventions or other material for which no equipment, supplies, facilities or Confidential Information and Material of the Company are used and which are developed entirely on the Executive’s own time and (i) do not relate directly to the business of the Company or (ii) do not result from any work performed by the Executive hereunder.
7.2    Non-disclosure and Non-use.  The Executive may use Confidential Information and Materials while an employee of the Company and in the course of that employment to the extent deemed necessary by the Company for the performance of the Executive’s responsibilities.  Such permission expires upon termination of his employment with the Company or on notice from the Company.  The Executive shall not, either during or after his employment with the Company, disclose any such Confidential Information and Materials to any person, firm, corporation, association or other entity for any reason or purpose unless expressly permitted by the Company in writing.  The Executive shall not use, in any manner other than to further the Company’s business, any such Confidential Information and Materials of the Company.  Upon termination of his employment, the Executive shall immediately return all Confidential Information and   Materials or other property of the Company or its clients or potential clients in his possession or control.
8.    Other Provisions.

8.1    Specific Performance.  The Executive acknowledges that the obligations undertaken by such Executive pursuant to Section 6 and Section 7 of this Agreement are unique and that the Company likely will have no adequate remedy at law if the Executive shall fail to perform any of such Executive’s obligations hereunder, and the Executive therefore confirms that the Company’s right to specific performance of the terms of Section 6 and Section 7 of this Agreement is essential to protect the rights and interests of the Company. Accordingly, in addition to any other remedies that the Company may have at law or in equity, the Company shall have the right to have all obligations, covenants, agreements and other provisions of Section 6 and Section 7 of this Agreement specifically performed by the Executive, and the Company shall have the right to obtain preliminary and permanent injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement by the Executive.  The Executive hereby acknowledges and warrants that he will be fully able to earn a livelihood for himself and his dependents if these covenants are specifically enforced against him.  The Executive hereby further acknowledges and agrees that the Company shall not be required to post bond as a condition to obtaining or exercising such remedies, and the Executive hereby waives any such requirement or condition.
8.2    Severability.  The Executive acknowledges and agrees that the Executive has had an opportunity to seek advice of counsel in connection with this Agreement.  If it is determined that any of the provisions of this Agreement, or any part thereof, is invalid or unenforceable, the remainder of the provisions of this Agreement shall not thereby be affected and shall be given full affect, without regard to the invalid portions.
8.3    Attorneys’ Fees.  In the event of any legal proceeding relating to this Agreement or any term or provision thereof, the losing party shall be responsible to pay or reimburse the prevailing party for all reasonable attorneys’ fees incurred by the prevailing party in connection with such proceeding.
8.4    Notices.  All notices, requests, demands, claims, and other communications hereunder shall be in writing.  Any notice, request, demand, claim, or other communication hereunder shall be deemed duly delivered (i) two business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, (ii) when received if it is sent by facsimile communication during normal business hours on a business day or one business day after it is sent by facsimile and received if sent other than during business hours on a business day, (iii) one business day after it is sent via a reputable overnight courier service, charges prepaid, or (iv) when received if it is delivered by hand, in each case to the intended recipient as set forth below:
(i)    if to the Executive, to the address set forth in the records of the Company; and
(ii)    if to the Company,

CIBER, Inc.
6363 S Fiddler’s Green Circle
Suite 1400
Greenwood Village, Colorado 80111
Attention: Sean Radcliffe, Vice President & General Counsel
Facsimile: (303) 224-4125
with a copy to,
Hogan Lovells US LLP
One Tabor Center, Suite 1500
1200 Seventeenth Street
Denver, Colorado 80202
Attention: Paul Hilton
Facsimile: (303) 899-7333
Any such person may by notice given in accordance with this Section to the other parties hereto designate another address or person for receipt by such person of notices hereunder.
8.5    Entire Agreement.  This Agreement, along with all equity grants to Executive, contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, including but not limited to the Original Employment Agreement, written or oral, with the Company or its subsidiaries (or any predecessor of either). 
8.6    Waivers and Amendments.  This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.
8.7    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
8.8    Submission to Jurisdiction; Consent to Service of Process.  The parties hereby irrevocably submit to the exclusive jurisdiction of any federal or state court located within the State of Colorado over any dispute arising out of or relating to this Agreement or any of the provisions contemplated hereby and each party hereby irrevocably agrees that all claims in respect of such dispute or any suit, action or proceeding related thereto may be heard and determined in such courts.  The parties hereby irrevocably waive, to the fullest extent permitted by law, any objection which 

they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute.  Each of the parties agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Each of the parties hereby consents to process being served by any party to this Agreement in any suit, action or proceeding by delivery of a copy thereof in accordance with the provisions of Section 8.4.
8.9    Assignment.  This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive; any purported assignment by the Executive in violation hereof shall be null and void.  In the event of any Change in Control, the Company may assign this Agreement and its rights hereunder.
8.10    Withholding.  The Company shall be entitled to withhold from any payments or deemed payments any amount of withholding required by law.  No other taxes, fees, impositions, duties or other charges or offsets of any kind shall be deducted or withheld from amounts payable hereunder, unless otherwise required by law.
8.11    No Duty to Mitigate.  The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor will any payments hereunder be subject to offset in the event the Executive does mitigate.
8.12    Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, heirs, executors and legal representatives.
8.13    Counterparts.  This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original but all such counterparts together shall constitute one and the same instrument.  Each counterpart may consist of two copies hereof each signed by one of the parties hereto.
8.14    Survival.  Anything contained in this Agreement to the contrary notwithstanding, the provisions of Sections 4 through 7 (to the extent necessary to effectuate the post-termination obligations set forth therein) and of Section 8 shall survive termination of this Agreement and any termination of the Executive’s employment hereunder.
8.15    Existing Agreements.  The Executive represents to the Company that the Executive is not subject or a party to any employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding which might prohibit the Executive from executing this Agreement or limit the Executive’s ability to fulfill the Executive’s responsibilities hereunder.

8.16    Headings.  The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
8.17    Section 409A if the Internal Revenue Code.
(a)    Anything in this Agreement to the contrary notwithstanding, if (A) on the date of termination of Executive’s employment with the Company or a subsidiary, any of the Company’s stock is publicly traded on an established securities market or otherwise (within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code, as amended (the “Code”)) and (B) as a result of such termination, the Executive would receive any payment that, absent the application of this Section 8.17, would be subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (1) six (6) months after the Executive’s termination date, (2) the Executive’s death, or (3) such other date as will cause such payment not to be subject to such interest and additional tax.
(b)    It is the intention of the parties that payments or benefits payable under this Agreement not be subject to the additional tax imposed pursuant to Section 409A of the Code (“409A”).  To the extent such potential payments or benefits could become subject to such Section, the parties shall cooperate to amend this Agreement with the goal of giving the Executive the economic benefits described herein in a manner that does not result in such tax being imposed.
(c)    Except as otherwise provided under this Agreement, all reimbursements to the Executive shall be paid as promptly as practical and in any event not later than the last day of the calendar year in which the expenses are incurred, and the amount of the expenses eligible for reimbursement during any calendar year will not affect the amount of expenses eligible for reimbursement in any other calendar year.  With respect to payments under this Agreement, for purposes of 409A, each severance payment and COBRA continuation reimbursement payment will be considered one of a series of separate payments, and the Executive’s termination date will be treated as the Executive’s separation from service as defined under 409A.
(d)    Amounts payable under this Agreement following the Executive’s termination of employment, other than those expressly payable on a deferred or installment basis, will be paid as promptly as practical after such a termination of employment and, in any event, within 2 1⁄2  months after the end of the year in which employment terminates.
8.18    Certain Definitions.  For purposes of this Agreement:
(a)    an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person, and includes subsidiaries.

(b)    A “business day” means the period from 9:00 am to 5:00 pm in the mountain time zone on any weekday that is not a banking holiday in New York City, New York.
(c)    A “person” means an individual, corporation, limited liability company, partnership, association, trust or any other entity or organization, including any court, administrative agency or commission or other governmental authority.
(d)    A “subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no such voting interests or no board of directors or other governing body, 50% or more of the equity interests of which) is owned directly or indirectly by such first person.
8.19    Release.  The Executive agrees that, except for such other payments and benefits to which the Executive may be entitled as expressly provided by the terms of this Agreement or any other applicable benefit plan, such liquidated damages shall be in lieu of all other claims that the Executive may make by reason of any such termination of his employment and that, as a condition to receiving the Severance Payments, the Executive will execute a release of claims in a form satisfactory to the Company in its sole discretion and drafted so as to ensure a final, complete and enforceable release of all claims that the Executive has or may have against the Company relating to or arising in any way from the Executive’s employment with the Company and/or the termination thereof. Within two business days of the Effective Date of Termination, the Company shall deliver to the Executive the release for the Executive to execute.  The Executive will forfeit all rights to the Severance Payments unless the Executive executes and delivers to the Company the release within 30 days of delivery of the release by the Company to the Executive and such release has become irrevocable by virtue of the expiration of the revocation period without the release having been revoked (the first such date, the “Release Effective Date”).  The Company shall have no obligation to provide the Severance Payments prior to the Release Effective Date.  Severance payments shall be made within three business days of the Release Effective Date and any payments not made because due prior to the Release Effective Date shall be paid in a single lump sum within such three business day period.  If the Executive fails to comply with his obligations under Sections 6 and 7, the Executive shall, to the extent such amounts are paid, vested or distributed, (i) forfeit outstanding equity awards, (ii) transfer the shares underlying equity awards that were accelerated and settled in shares to the Company for no consideration and (iii) repay the after-tax amount of the Severance Payments and any equity awards that were accelerated and settled in cash or sold.
8.20    Parachute Provisions.  In the event Executive becomes entitled to any amount of benefits payable in connection with a change in control (whether or not such amounts are payable pursuant to this Agreement) (the “Change in Control Payments”) and Executive’s receipt of such Change in Control Payments would cause Executive to become subject to the excise tax (the “Excise 

Tax”) imposed under Section 4999 of the Code (or any similar federal, state, or local tax that may hereafter be imposed), the Company shall reduce the Change in Control Payments to the extent necessary to avoid the application of the Excise Tax if, as a result of such reduction, the net benefits to Executive of the Change in Control Payments as so reduced (after payment of applicable income taxes) exceeds the net benefit to Executive of the Change in Control Payments without such reduction (after payment of applicable income taxes and excise taxes). Unless Executive shall have given prior written notice specifying a different order to the Company to effectuate the foregoing, the Company shall reduce the Change in Control Payments by first reducing the portion of the Change in Control Payments which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the change in control.  Any notice given by the Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation.  The determination that Executive’s Change in Control Payments would cause him to become subject to the Excise Tax and the calculation of the amount of any reduction, shall be made, at the Company’s discretion, by the Company’s outside auditing firm or by a nationally-recognized accounting or benefits consulting firm designated by the Company prior to a change in control.  The firm’s expenses shall be paid by the Company.

IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first above written.

CIBER, INC.
By: /s/ Paul A. Jacobs    
Name:    Paul A. Jacobs
Title:    Chairman of the Board of Directors

/s/ David Peterschmidt    
DAVID PETERSCHMIDTCRAY-03.31.2014-Ex 10.1

Exhibit 10.1 

2014 Executive Bonus Plan

I.    Purpose

The purpose of this Plan is to promote the success of the Company by providing to participating executives cash incentives based on achievement of critical strategic, tactical and financial goals.

II.    Definitions

Award Setting Deadline - The deadline by which to document Performance Measures for a Participant for a given Performance Period. This deadline shall be the earlier of either:  1) ninety (90) days after commencement of the Performance Period, or 2) the expiration of twenty-five percent (25%) of the Performance Period.  Documentation of Performance Measures for Participants hired after January 1, 2014 shall be completed the earlier of either:  1) ninety (90) days after date of hire; or 2) September 30, 2014.

Base Salary - The aggregate gross base annualized salary of a Participant as of September 30th in the year of the Performance Period, but prior to reductions for salary deferred pursuant to any deferred compensation plan or for contributions to a plan qualifying under Code Section 401(k), ESPP contributions, deductions for parking benefits, health insurance or non-cash benefits or perquisites.  Notwithstanding the foregoing, Base Salary does not include any actual or imputed income from Company-provided benefits or perquisites.

Bonus Award - The cash payment made pursuant to this Plan for a particular Performance Period.  Notwithstanding the Bonus Formula, a Bonus Award may not exceed two-hundred percent (200%) of the Bonus Target.

Bonus Formula - The formula established to determine the Bonus Award, if any, paid to Participant based upon the level of achievement of targeted goals for selected Performance Measures. The formula may differ from Participant to Participant. If targeted goals identify achievement at staged levels, the Bonus Formula may include interpolation between levels above the identified "threshold" level at the discretion of the Committee.

Bonus Target - The Bonus Award that may be paid if one-hundred percent (100%) of Performance Measures are achieved at target during the Performance Period. The Bonus Target shall be equal to a fixed percentage of Participant's Base Salary for such Performance Period, and may not exceed one hundred fifty percent (150%) of a participant's Base Salary.

Code - U.S. Internal Revenue Code of 1986, as amended from time to time.

Company - Cray Inc. and subsidiaries.

Committee - The Compensation Committee of the Company's Board of Directors.

GAAP - U.S. General Accepted Accounting Principles.

Participant - Any Company employee selected by the Committee to participate in the Plan for a given Performance Period. Typically, Participants in this Plan are comprised of the CEO and his/her direct reports.

Performance Measure(s) - Any one or a combination of pre-determined business criteria measured either on an either objective or subjective basis, in each case as specified by the Committee.

Performance Period - Any specific fiscal year or other such period as determined by the Committee.

Performance Target(s) - Specific, objective or subjective goal(s) established by the Committee for each Participant for the Performance Period in respect of any one or more of the Performance Measures.

Ill.    Eligibility

The Committee, in its sole discretion, shall select Participants for any Performance Period.  Participation in the Plan is at the sole discretion of the Committee, and on a Performance Period by Performance Period basis.  A Participant for a given Performance Period is not guaranteed to be selected for participation in any subsequent Performance Period.  Any change of in reporting responsibilities to a level below that at the time selected for participation in the Plan or move to part time subsequent to being designated a Participant shall disqualify such Participant from participation in the Plan except to the extent set forth below or as determined otherwise by the Committee in its sole discretion.

IV.    Administration

		
	1.
	Administrator - This Plan shall be administered by the Committee in accordance with Plan provisions.

		
	2.
	Authority - The Committee shall have all powers and discretion necessary or appropriate to interpret and administer the Plan and to control its operation.  Such authority includes selecting Participants in the Plan, determining Bonus Targets for each Participant, determining Performance Measures and Bonus Formulas to score performance, determining which Participants shall be granted Bonus Awards, and determining the form and manner in which Bonus Awards will be made (which may include elective or mandatory deferral alternatives).

		
	3.
	Decisions Binding - All determinations and decisions made by the Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, and shall be given the maximum deference permitted by law.

		
	4.
	Delegation by Committee - The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee shall review and approve all recommendations for any payments pursuant to the Plan prior to such payments being made.

		
	5.
	Term of Plan - Once approved by the Committee, this Plan shall be effective at the start of the Performance Period.  Once approved, this Plan shall continue until the earlier of: 1) the end of the Performance Period; 2) termination of the Plan as described in the "Amendment and Termination Provisions" section below; or 3) termination of Participant from the Company's employ, with respect to that Participant.

V.    Bonus Provisions

Prior to the Award Setting Deadline for a Performance Period or as soon as practicable thereafter, the Committee shall designate or approve the following:

		
	1.
	Performance Period

		
	2.
	Executives who will be Participants for the Performance Period

		
	3.
	Bonus Target for each Participant

		
	4.
	Performance Targets for each Participant

		
	5.
	Bonus Formulas for each Participant

VI.    Bonus Award Determination

After the end of each Performance Period, the Committee shall approve the extent to which the Performance Targets applicable to each Participant for the Performance Period were achieved.  The Bonus Award for each Participant shall be determined by applying the Bonus Formula to the level of actual performance.  The Committee, at its sole discretion, may eliminate, reduce or increase the Bonus Award payable to any Participant below or above that which otherwise would be payable under the Bonus Formula; provided, however that no Bonus Award may exceed 150% of a Participant's Bonus Target.

The Committee may appropriately adjust any evaluation of performance under a Performance Measure to exclude any of the following events that may occur during a Performance Period:

		
	1.
	The effects of currency fluctuation

		
	2.
	Any or all items excluded, or that could be excluded, from the calculation of non-GAAP earnings as reflected in any Company press release or 8-K filing relating to an earnings announcement

		
	3.
	Asset write-downs

		
	4.
	Litigation or claim judgments or settlements

		
	5.
	The effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results

		
	6.
	Accruals for reorganization and restructuring programs

		
	7.
	Any other extraordinary or non-operational items

		
	8.
	Acquisition or disposition costs

		
	9.
	The gain or losses as a result of a Board approved acquisition or disposition, including current year impact on bonus year targets planned without consideration of the transaction.

VII.    Right to Receive Payment

1.     Plan Unfunded and Unsecured - Each Bonus Award under this Plan shall be paid solely from the general assets of the Company.  This Plan is unfunded and unsecured; nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant's claim of any right to, or form of, payment of a Bonus other than as an unsecured general creditor with respect to any payment to which he/she may be entitled.
2.     Termination of Employment - Except as may otherwise be provided for in the "Bonus Award Payments" section below, in the event a Participant terminates employment with the Company prior to the end of a Performance Period, he/she shall not be entitled to payment of a Bonus Award for the applicable Performance Period pursuant to this Plan; provided that this provision shall not affect any amounts that may be due Participant under the Company's Executive Severance Policy or other applicable policy or agreement.

VIII.    Bonus Award Payments

		
	1.
	Timing -The Company shall distribute Bonus Awards to Participants as soon as is administratively practicable following the determination and written certification of the Committee for a Performance Period, but in no event later than March 15 of the year following the end of the fiscal year for which the Committee determines the Bonus Award.

		
	2.
	Active Employment - Payment of a Bonus Award requires that Participant be an active employee on the Company's payroll no later than September 30, 2014 and remain active until the last day of the Performance Period, subject to subsection 4 below.  The Committee may make exceptions to the active employment requirement in the case of retirement, death or disability, or in the case of a corporate change in control, in each case determined on its own merits by the Committee.

		
	3.
	Manner of Payment - Bonus Awards will be payable in cash as a single lump sum, subject to all applicable taxes and contributions required by law to be withheld in accordance with procedures established by the Company. Bonus Awards for Participants who become eligible after the first day of the Performance Period will be prorated accordingly.

		
	4.
	Change in Status - A Participant whose change in status or move to part time results in he/she being ineligible to participate in this Plan in a Performance Period may receive a prorated Bonus Award, at the sole discretion of the Committee.  A Participant whose change in reporting responsibilities results in he/she being ineligible to participate in this Plan in a Performance Period may receive a modified Bonus Award, at the sole discretion of the Committee.  No Participant shall have any right to a prorated or modified Bonus Award, and the method in which a Bonus Award may be prorated or modified shall be determined by the Committee in its sole discretion.

		
	5.
	Recoupment of Bonus Award - If the Company's reported financial or operating results become subject to a material restatement, the Committee may require Participant to pay to the Company an amount corresponding to the Bonus Award that Participant received under this Plan, or a portion of such award, that the Committee determines would not have been paid if Company results as originally published had been equal to Company results as subsequently restated.  Any requirement or claim to recoup a Bonus Award must be made, if at all, within five (5) years after the date the amount claimed was originally paid by the Company.

		
	6.
	Code Section 409A - It is intended that this Plan comply with the requirements of Code Section 409A so that none of the Bonus Award payments to be provided under this Plan will be subject to the additional tax imposed under Code Section 409A.  Any ambiguities will be interpreted to so comply.

IX.    Amendment and Termination Provisions

		
	1.
	Amendment, Modification, Suspension, Termination, or Reinstatement of Plan - The Board of Directors or the Committee may amend, modify, suspend, terminate or reinstate this Plan, in whole or in part, at any time, including adopting amendments deemed necessary or desirable to correct any defect or to supply omitted data, to reconcile any inconsistency in this Plan or in any Bonus Award granted hereunder or to adapt the Plan, including, but not limited to, Performance Measures under this Plan, to material changed circumstances (as determined by the Committee in its sole discretion).

		
	2.
	Plan Variations for non-U.S. Participants - For Participants employed outside the United States, the Company may vary the provisions of this Plan as deemed appropriate to conform with, as required by or made desirable by, local laws, practices and procedures.

X.    General Provisions

		
	1.
	Non-transferability of Awards - No Bonus Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in the prior subsection.  All rights with respect to a Bonus Award granted to a Participant shall be available during his or her lifetime only to the Participant.

		
	2.
	No Additional Participant Rights - Employees selected to participate in this Plan shall not have any right to be retained in the Company's employ, and the right of the Company to dismiss such Participant or to terminate any arrangement pursuant to which any such Participant provides services to the Company, with or without cause, is specifically reserved.  No person shall have claim to a Bonus Award under this Plan, except as otherwise provided for herein, or to continued participation under this Plan.  There is no obligation for uniformity of treatment of Participants under this Plan.  The benefits provided for Participants under this Plan shall be in addition to and shall in no way preclude other forms of compensation to or in respect of such Participants.

		
	3.
	Successors - All obligations of the Company under this Plan with respect to Bonus Awards shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company.

		
	4.
	Indemnification - Each member of the Company's Board of Directors and each Committee member shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him/her in connection with or resulting from any claim, action, suit, or proceeding to which he/she may be a 

party or in which he/she may be involved by reason of any action taken or failure to act under the Plan or any award, and (ii) from any and all amounts paid by him/her in settlement thereof, with the Company's approval, or paid by him/her in satisfaction of any judgment in any such claim, action, suit or proceeding against him/her, provided he/she shall give the Company an opportunity, at its own expense, to handle and defend the same before he/she undertakes to handle and defend it on his/her own behalf.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless.
		
	5.
	Severability - The provisions of this Plan are severable. If a court of competent jurisdiction rules that any provision of this Agreement is invalid or unenforceable, the court's ruling will not affect the validity and enforceability of the other provisions of this Plan.

		
	6.
	Requirements of Law - Bonus awards granted under this Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

		
	7.
	Governing Law - The validity, interpretation, construction and performance of the Plan and awards under it shall be governed and interpreted in accordance with the laws of the State of Washington.

XI.    Certification

The undersigned Corporate Secretary of the Company certifies that the foregoing constitutes a complete and correct copy of the Plan as approved by the Compensation Committee of the Board of Directors and its delegate, the Chief Executive Officer.

/s/ Michael C. Piraino                        March 03, 2014        
Michael C. Piraino                            Date
Vice President Administration,
General Counsel & Corporate Secretary

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