Document:

Severance Benefit Plan

 Exhibit 10.4 
  
 K2 INC. 
  
 SEVERANCE BENEFIT PLAN 
  
 Section 1. INTRODUCTION. 
  
 The K2 Inc. Severance Benefit Plan (the “Plan”) was established effective February 14, 2005 (the
“Effective Date”). The purpose of the Plan is to provide severance benefits to certain eligible employees of the Company and its subsidiaries upon selected terminations of service. This Plan document is also the
Summary Plan Description for the Plan. 
  
 Section 2.
DEFINITIONS. 
  
 The following shall be
defined terms for purposes of the Plan: 
  
 (a)
“Base Salary” means a Participant’s monthly base salary in effect immediately prior to the Covered Termination (including without limitation any compensation that is deferred by Participant into a Company-sponsored
retirement or deferred compensation plan, exclusive of any employer matching contributions by the Company associated with any such retirement or deferred compensation plan and exclusive of any other Company contributions) and excludes all bonuses,
commissions, expatriate premiums, fringe benefits (including without limitation car allowances), option grants, equity awards, employee benefits and other similar items of compensation. 
  
 (b) “Board” means the Board of Directors of the Company. 
  
 (c) “Bonus Amount” means, with respect to a
Participant, one-twelfth (1/12th) of the greater of (i) the average of the three (3) annual bonuses paid to the
Participant by the Company prior to the date of such Participant’s Covered Termination and (ii) the last annual bonus paid to the Participant by the Company prior to the date of such Participant’s Covered Termination. 
  
 (d) “Cause” for the Company to terminate
Executive’s employment hereunder shall mean the occurrence of one or more of the following events if such event results in a demonstrably harmful impact on the Company’s business or reputation, or that of any of its subsidiaries, as
reasonably determined by the Board: 
  
 (1)
Executive’s conviction of, or plea of guilty or no contest to, any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; 
  
 (2) Executive’s commission of (or attempted commission of), or
participation in, a fraud or act of dishonesty against the Company; 
  
 (3) Executive’s material violation of any statutory duty owed to the Company or material violation of any policy or rule of the Company; 

 (4) Executive’s unauthorized use or disclosure of the Company’s confidential
information or trade secrets; 
  
 (5) Executive’s
gross misconduct; or 
  
 (6) Executive’s conduct that
constitutes gross insubordination or habitual neglect of duties that is not cured within the reasonable period provided by the Board or a committee designated by the Board in its written notice to Executive of such conduct. 
  
 The determination that a termination is for Cause shall be made by the Board in good faith.
Any determination that the Executive’s employment was terminated by reason of dismissal without Cause for the purposes of this Agreement shall have no effect upon any determination of the rights or obligations of the Company or the Executive
for any other purpose. 
  
 (e)
“Company” means K2 Inc. 
  
 (f)
“Covered Termination” means, with respect to a Participant who immediately prior to a termination of employment was an employee of the Company, such Participant’s termination of employment by the Company without Cause.

  
 (g) “Participant” means all
individuals hereafter designated by the Board and listed on Exhibit A-1 or Exhibit A-2 attached hereto. 
  
 (h) “Plan Administrator” means K2 Inc. 
  
 (i) “Severance Period” means, with respect to a Participant, the period of time following the
Participant’s Covered Termination for which a Participant may be eligible to receive the benefits provided in Section 4 herein. The Severance Period shall be the number of months corresponding to such Participant’s name on Exhibit A-1
or Exhibit A-2 attached hereto. 
  
 Section 3.
ELIGIBILITY FOR BENEFITS. 
  
 Subject to the requirements set forth in this Section, the Company shall provide severance benefits under the Plan to the Participants. In order to be eligible to receive benefits under the Plan, a Participant must
(i) experience an Covered Termination and (ii) execute a general waiver and release in substantially the form attached hereto as Exhibit B (or as then may be required by law to effect a release of claims), as appropriate, and such release
must become effective in accordance with its terms. The Company, in its sole discretion, may at any time modify the forms of the required release and shall determine the appropriate form of release. 
  

 2. 

 Section 4. AMOUNT OF BENEFIT. 
  
 Subject to the limitations and reductions provided in this Plan,
benefits under this Plan, if any, shall be provided to the Participants described in Section 3 in the following amounts: 
  
 (a) Covered Termination Benefits. Upon a Participant’s Covered Termination, such Participant shall receive the following severance package:

  
 (1) Cash Severance Benefits. At the end of
each month during the term of the Participant’s Severance Period, each Participant listed on Exhibit A-1 will receive a cash payment in an amount equal to the sum of Participant’s Base Salary and Bonus Amount. At the end of each month
during the term of the Participant’s Severance Period, each Participant listed on Exhibit A-2 will receive a cash payment in an amount equal to the Participant’s Base Salary. 
  
 (2) COBRA Benefits. If such Participant timely elects to continue coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (“COBRA”), then for the term of the Participant’s Severance Period, the Company will reimburse all premiums for group medical, dental and vision coverage paid by such
Participant under (a) COBRA and, to the extent applicable, any similar applicable state statute, and (b) to the extent that such coverage under COBRA and any such applicable state statute has been exhausted or is no longer available, then under any
individual policy providing group medical, dental and vision benefits substantially similar to those provided to Participant immediately prior to his or her termination of Service. 
  
 (3) Stock Option Acceleration and Continued Post-Termination Exercise Period. The Participant will receive
immediate full vesting of all stock options and other equity awards issued by the Company and held by such Participant. In addition, with respect to stock options issued to the Participant, the Participant shall be entitled to exercise all of his or
her stock options for the number of months beyond the original post-termination exercise period provided in such Participant’s stock option agreement (but not beyond the original contractual life of the option) equal to the Severance Period.

  
 (b) Certain Reductions. Notwithstanding any other
provision of the Plan to the contrary, any benefits payable to a Participant under Sections 4(a)(1) and 4(a)(2) of this Plan shall be reduced (but not below zero) by any severance benefits payable by the Company or an affiliate of the Company to
such Participant under any other policy, plan, program, agreement or arrangement, including, without limitation, an employment agreement between such Participant and any entity, covering such Participant. In addition, to the extent that any federal,
state or local laws, including, without limitation the Worker Adjustment Retraining Notification Act, 29 U.S.C. Section 2101 et seq., or any similar state statute, require the Company to give advance notice or make a payment of any kind to a
Participant because of that Participant’s involuntary termination due to a layoff, reduction in force, plant or facility closing, sale of business, change of control, or any other similar event or reason, the benefits payable under Sections
4(a)(1) and 4(a)(2) of this Plan shall either be reduced or eliminated by such required payments or notice. The benefits provided under this Plan are intended to satisfy any and all statutory obligations that may arise out of a Participant’s
involuntary termination of employment for the foregoing reasons, and the Plan Administrator shall so construe and implement the terms of the Plan. 
  

 3. 

 Section 5. LIMITATIONS ON BENEFITS. 
  
 (a) Mitigation. Except as otherwise specifically provided herein, a
Participant shall not be required to mitigate damages or the amount of any payment provided under the Plan by seeking other employment or otherwise, nor shall the amount of any payment provided for under the Plan be reduced by any compensation
earned by a Participant as a result of employment by another employer or any retirement benefits received by such Participant after the date of service or employment termination. 
  
 (b) Termination of Benefits. Benefits under the Plan shall terminate immediately if the Participant, at any time, (i)
engages in the unauthorized use or disclosure of the Company’s material confidential information, material trade secrets or material proprietary information under any written agreement under which the Participant has a such an obligation to the
Company that survives the Participant’s termination of service to the Company, (ii) engages in any prohibited or unauthorized competitive activities, or prohibited or unauthorized solicitation or recruitment of employees, in violation of any
written agreement under which Participant has such an obligation to the Company that survives the Participant’s termination of service to the Company; (iii) violates any term or condition of this Plan or (iv) violates any term of the applicable
general waiver and release referenced in Section 3 above. 
  
 (c) Non-Duplication of Benefits. No Participant is eligible to receive benefits under this Plan more than one time. 
  
 (d) Indebtedness of Participants. If a Participant is indebted to the Company or an affiliate of the Company on the date of his or her termination
of employment or service, the Company reserves the right to offset any severance benefits payable in cash under the Plan by the amount of such indebtedness. 
  
 (e) Parachute Payments. If any payment or benefit a Participant would receive in connection with a Change in Control from the Company or otherwise
(a “Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be
subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of
the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion of the Payment, up to and including the total Payment, whichever amount, after taking into account all applicable federal, state
and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Participant’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or
some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order
unless the Participant elects in writing a different order (provided, however, that such election shall be subject to Company approval if made on or after the date on which the event that triggers the Payment occurs): 

  

 4. 

 
reduction of cash payments; cancellation of accelerated vesting of stock awards; reduction of employee benefits. If acceleration of vesting of stock award
compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Participant’s stock awards unless the Participant elects in writing a different order for cancellation. 

 
 (f) Deferred Compensation. In the event that any of the benefits
payable to Participant under this Section are determined by the Company to constitute deferred compensation subject to Section 409A(a)(2)(B)(i) of the Code, then the amount such benefits so determined shall be payable to Participant in a manner that
complies with the requirements of Section 409A, which may include, without limitation, deferring the payment of such benefit for six (6) months after Participant’s date of termination, provided however, that nothing in this paragraph
shall require the payment of benefits to Participant earlier than they would otherwise be payable under this Agreement. 
  
 The Company shall appoint a nationally recognized independent accounting firm to make the determinations required hereunder, which accounting firm shall
not then be serving as accountant or auditor for the individual, entity or group that effected the Change in Control. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.

  
 The accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and the Participant within ten (10) calendar days after the date on which the Participant’s right to a Payment is triggered (if requested
at that time by the Company or the Participant) or such other time as requested by the Company or the Participant. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of
the Reduced Amount, it shall furnish the Company and the Participant with an opinion reasonably acceptable to the Participant that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made
hereunder shall be final, binding and conclusive upon the Company and the Participant. 
  
 Section 6. RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION. 
  
 (a) Exclusive Discretion. The Plan Administrator shall have the exclusive discretion and authority to establish
rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of
the Plan, including, but not limited to, the eligibility to participate in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations and other actions of the Plan Administrator shall be binding and conclusive on
all persons. Unless otherwise determined by the Board, the General Counsel of the Company shall perform the duties of the Plan Administrator under this Plan. 
  
 (b) Amendment or Termination. The Board, or the Compensation Committee thereof, reserves the right to amend or terminate this Plan or the benefits
provided hereunder at any time; provided, however, that no such amendment or termination shall impair or 

  

 5. 

 
reduce the rights of a Participant unless such Participant consents to such amendment or termination of the Plan in writing. Notwithstanding the
foregoing, the Plan shall automatically terminate on the tenth (10th) anniversary from the date of its adoption by
the Board, unless extended by the Board or the Compensation Committee thereof. Except with respect to the automatic termination provided in the prior sentence, any action amending, terminating or extending the Plan shall be in writing and executed
by the Board or the Compensation Committee thereof. 
  
 Section 7.
CONTINUATION OF CERTAIN EMPLOYEE BENEFITS. 
  
 (a) COBRA Continuation. Each Participant who is enrolled in a group medical, dental or vision plan sponsored by the Company or an affiliate of the
Company may be eligible to continue coverage under such group medical, dental or vision plan (or to convert to an individual policy), at the time of the Participant’s termination of employment under COBRA. The Company will notify the
Participant of any such right to continue group medical coverage at the time of termination. No provision of this Plan will affect the continuation coverage rules under COBRA. Therefore, the period during which a Participant may elect to continue
the Company’s group medical, dental or vision coverage at his or her own expense under COBRA, the length of time during which COBRA coverage will be made available to the Participant, and all other rights and obligations of the Participant
under COBRA will be applied in the same manner that such rules would apply in the absence of this Plan. At the conclusion of the COBRA premium reimbursements made by the Company, if any, the Participant will be responsible for the entire payment of
premiums required under COBRA for the duration, if any, of the COBRA period.  
  
 (b) Other Employee Benefits. All non-health benefits (such as life insurance, disability and 401(k) plan coverage) terminate as of an employee’s termination date (except to the extent that a conversion
privilege may be available thereunder). 
  
 Section 8. NO
IMPLIED EMPLOYMENT CONTRACT. 
  
 The Plan shall not be deemed (i) to give any employee or other person any right to be retained in the employ or service of the Company or (ii) to interfere with the right of the Company to discharge any employee or
other person at any time and for any reason, which right is hereby reserved. 
  
 Section 9. LEGAL CONSTRUCTION. 
  
 This Plan is intended to be governed by and shall be construed in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and, to the extent not preempted by
ERISA, the laws of the State of California. 
  
 Section 10.
CLAIMS, INQUIRIES AND APPEALS. 
  
 (a) Applications for Benefits and Inquiries. Any application for benefits, inquiries about the Plan or inquiries about present or future rights
under the Plan must be submitted to the Plan Administrator in writing by an applicant (or his or her authorized representative). The Plan Administrator is: 
  
 K2 Inc. 
 2051 Palomar Airport Road 

Suite 100 
 Carlsbad, CA 92009 
 Attn: General Counsel 
  

 6. 

 (b) Denial of Claims. In the event that any application for benefits is denied in whole or in
part, the Plan Administrator must provide the applicant with written or electronic notice of the denial of the application, and of the applicant’s right to review the denial. Any electronic notice will comply with the regulations of the U.S.
Department of Labor. The written notice of denial will be set forth in a manner designed to be understood by the employee and will include the following: 
  
 (1) the specific reason or reasons for the denial; 
  
 (2) references to the specific Plan provisions upon which the denial is based; 
  
 (3) a description of any additional information or material that the Plan Administrator needs to complete the review
and an explanation of why such information or material is necessary; and 
  
 (4) an explanation of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the applicant’s right to bring a civil action under section 502(a) of
ERISA following a denial on review of the claim, as described in Section 10(d) below. 
  
 This written notice will be given to the applicant within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan
Administrator has up to an additional ninety (90) days for processing the application. If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial ninety (90)
day period. 
  
 This notice of extension will describe the special
circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application. 
  
 (c) Request for a Review. Any person (or that person’s authorized representative) for whom an application for benefits is denied, in whole or
in part, may appeal the denial by submitting a request for a review to the Plan Administrator within sixty (60) days after the application is denied. A request for a review shall be in writing and shall be addressed to: 
  
 K2 Inc. 
 2051 Palomar Airport Road 
 Suite 100 
 Carlsbad, CA 92009 
 Attn: General Counsel

  

 7. 

 A request for review must set forth all of the grounds on which it is based, all facts in support of the
request and any other matters that the applicant feels are pertinent. The applicant (or his or her representative) shall have the opportunity to submit (or the Plan Administrator may require the applicant to submit) written comments, documents,
records, and other information relating to his or her claim. The applicant (or his or her representative) shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant
to his or her claim. The review shall take into account all comments, documents, records and other information submitted by the applicant (or his or her representative) relating to the claim, without regard to whether such information was submitted
or considered in the initial benefit determination. 
  
 (d)
Decision on Review. The Plan Administrator will act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for
processing the request for a review. If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial sixty (60) day period. This notice of extension will describe the special
circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the review. The Plan Administrator will give prompt, written or electronic notice of its decision to the applicant. Any
electronic notice will comply with the regulations of the U.S. Department of Labor. In the event that the Plan Administrator confirms the denial of the application for benefits in whole or in part, the notice will set forth, in a manner calculated
to be understood by the applicant, the following: 
  
 (1)
the specific reason or reasons for the denial; 
  
 (2)
references to the specific Plan provisions upon which the denial is based; 
  
 (3) a statement that the applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim; and

  
 (4) a statement of the applicant’s right to bring
a civil action under section 502(a) of ERISA. 
  
 (e) Rules and
Procedures. The Plan Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims. The Plan Administrator may require an
applicant who wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the applicant’s own expense. 
  

 8. 

 (f) Exhaustion of Remedies. No legal action for benefits under the Plan may be brought until the
claimant (i) has submitted a written application for benefits in accordance with the procedures described by Section 10(a) above, (ii) has been notified by the Plan Administrator that the application is denied, (iii) has filed a written request for
a review of the application in accordance with the appeal procedure described in Section 10(c) above, and (iv) has been notified in writing that the Plan Administrator has denied the appeal. Notwithstanding the foregoing, if the Plan Administrator
does not respond to a Participant’s claim or appeal within the relevant time limits specified in this Section 10, then the Participant may bring legal action for benefits under the Plan pursuant to Section 502(a) of ERISA. 
  
 Section 11. BASIS OF PAYMENTS
TO AND FROM PLAN. 
  
 All benefits under the Plan shall be paid by the Company. The Plan shall be unfunded, and benefits hereunder shall be paid only from the general assets of the Company. 
  
 Section 12. OTHER PLAN INFORMATION.

  
 (a) Employer and Plan Identification Numbers. The
Employer Identification Number assigned to the Company (which is the “Plan Sponsor” as that term is used in ERISA) by the Internal Revenue Service is 95-2077125. The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the
instructions of the Internal Revenue Service is 507. 
  
 (b)
Ending Date for Plan’s Fiscal Year. The date of the end of the fiscal year for the purpose of maintaining the Plan’s records is December 31. 
  
 (c) Agent for the Service of Legal Process. The agent for the service of legal process with respect to the Plan is K2 Inc., Attn: General Counsel,
2051 Palomar Airport Road, Suite 100, Carlsbad, CA 92009. 
  
 (d) Plan Sponsor and Administrator. The “Plan Sponsor” and the “Plan Administrator” of the Plan is K2 Inc., 2051 Palomar Airport Road, Suite 100, Carlsbad, CA 92009. The Plan
Sponsor’s and Plan Administrator’s telephone number is (760) 494-1000. The Plan Administrator is the named fiduciary charged with the responsibility for administering the Plan. 
  
 Section 13. STATEMENT OF ERISA RIGHTS. 
  
 Participants in this Plan (which is a welfare benefit plan sponsored by the
Company) are entitled to certain rights and protections under ERISA. If you are a Participant in the Plan, under ERISA you are entitled to: 
  
 Receive Information about the Plan and Your Benefits 
  
 (a) Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as work sites, all documents governing
the Plan and a copy of the latest annual report (Form 5500 Series) filed by the Plan Administrator with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration; 
  

 9. 

 (b) Obtain, upon written request to the Plan Administrator, copies of documents governing the
operation of the Plan and copies of the latest annual report (Form 5500 Series). The Plan Administrator may make a reasonable charge for the copies; and 
  
 (c) Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each Participant with a copy
of this summary annual report. 
  
 Prudent Actions by Plan
Fiduciaries 
  
 In addition to creating rights for Plan
participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of
you and other Plan participants and beneficiaries. 
  
 Enforce
Your rights 
  
 No one, including your employer or any other
person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a Plan benefit or exercising your rights under ERISA. 
  
 Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report
from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless
the materials were not sent because of reasons beyond the control of the Plan Administrator. 
  
 If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the Plan Administrator’s decision or lack thereof
concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court. 
  
 If it should happen that the Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees.
If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. 
  
 Assistance with Your Questions 
  
 If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents
from the Plan Administrator, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Pension and
Welfare Benefits Administration, U.S. Department of Labor, 200 

  

 10. 

 
Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Pension and Welfare Benefits Administration. 
  
 Section 14. EXECUTION. 
  
 To
record the adoption of the Plan as set forth herein, effective as of the Effective Date, K2 Inc. has caused its duly authorized officer to execute the same this 14th day of February, 2005. 
  

	
	K2 Inc.
	
	 /s/ Richard J. Heckmann

 Richard J. Heckmann,

	 Chairman of the Board and

	 Chief Executive Officer

  

 11.Employment Agreement

 Exhibit 10.1 
  
 SOMERA COMMUNICATIONS SALES, INC. 
  
 JAY HILBERT EMPLOYMENT AGREEMENT 
  
 This Agreement is entered into and shall be effective as of February 16, 2005 (the “Effective Date”) by and
between Somera Communications Sales, Inc. (the ”Company”), and Jay Hilbert (“Executive”). 
  
 1. Duties and Scope of Employment. 
  
 (a) Positions and Duties. As of the Effective Date, Executive will serve as Senior Vice President, Marketing and Sales of the Company. Executive
will render such business and professional services in the performance of Executive’s duties, consistent with Executive’s position within the Company, and shall report to the President and Chief Executive Officer of Somera Communications,
Inc.. The period of Executive’s employment under this Agreement is referred to herein as the “Employment Term.” It is expressly understood that nothing in the foregoing shall preclude the Company from making any organizational and
reporting changes it may deem necessary to most effectively operate the business of the Company subject to Section 8(c). 
  
 (b) Obligations. During the Employment Term, Executive will perform Executive’s duties faithfully and to the best of Executive’s ability
and will devote Executive’s full business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect
remuneration without the prior approval of the Board of Directors of Somera Communications, Inc. (the “Board”). Executive has provided to the President and Chief Executive Officer of Somera Communications, Inc. any potential conflicting
obligations, a copy of which is attached hereto as Exhibit A, and the President and Chief Executive Officer of Somera Communications, Inc. has approved of and consented to each and every obligation thereon; provided that such obligations will
not interfere with Executive’s ability to perform Executive’s duties hereunder. 
  
 2. At-Will Employment. The parties agree that Executive’s employment with the Company will be “at-will” employment and may be terminated at any time with or without cause or notice. Executive
understands and agrees that neither Executive’s job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or
otherwise, of Executive’s employment with the Company. 
  
 3.
Compensation. 
  
 (a) Base Salary. During the
Employment Term, the Company will pay Executive as compensation for Executive’s services a base salary at the annualized rate of $250,000 (the “Base Salary”). The Base Salary will be paid periodically in accordance with the
Company’s normal payroll practices and be subject to the usual, required withholding. 
  
 (b) Bonus. Executive shall be a participant in the Company’s FY 2005 Sales Executive Compensation and Responsibilities Plan or such equivalent successor plan (the “Incentive 

 
Plan”) as may be adopted by the Company and be eligible to earn an annual bonus of up to $200,000 (at the base plan level and in excess of $200,000 if
goals and objectives are exceeded) based upon the performance of Executive’s sales and marketing organization to be paid according to the terms of the Incentive Plan. In addition, Executive is eligible to participate in the Company’s
Operating Income Bonus Plan (the “OI Plan”), based upon Company performance and profitability in an annual amount up to 25% of the Base Salary ($62,500), subject to the terms of the OI Plan. 
  
 (c) Stock Option. The Company shall recommend to the Company’s
Board of Directors (the “Board”) that Executive be granted a stock option, which will be, to the extent possible under the $100,000 rule of Section 422(d) of the Internal Revenue Code of 1986, as amended (the “Code”), an
“incentive stock option” (as defined in Section 422 of the Code), to purchase up to 375,000 shares of the Company’s Common Stock at an exercise price equal to the price per share of the Company’s Common Stock as listed on the
Nasdaq National Market on the date of grant as determined by the Board (the “Option”). Subject to the accelerated vesting provisions set forth herein, the Option will vest as to 25% of the shares subject to the Option one year after the
date of grant, and as to 1/48th of the shares subject to the Option monthly thereafter, so that the Option will be fully vested and exercisable four (4) years from the date of grant, subject to Executive’s continued service to the Company on
the relevant vesting dates. The Option will be subject to the terms, definitions and provisions of the Company’s 1999 Stock Option Plan (the “Option Plan”) and the stock option agreement by and between Executive and the Company (the
“Option Agreement”), both of which documents are incorporated herein by reference. 
  
 4. Executive Benefits. During the Employment Term, Executive will be entitled to participate in all employee benefit plans currently and hereafter maintained by the Company of applicability to other senior
executives of the Company, including, without limitation, the Company’s group medical, dental, vision, disability, life insurance, and flexible-spending account plans. The Company reserves the right to cancel or change the benefit plans and
programs it offers to its employees at any time. 
  
 5.
Vacation. Executive will be entitled to paid vacation of three (3) weeks per year in accordance with the Company’s vacation policy, with the timing and duration of specific vacations mutually and reasonably agreed to by the parties
hereto. 
  
 6. Expenses. The Company will reimburse
Executive for reasonable travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement
policy as in effect from time to time. 
  
 7. Severance.

  
 (a) Involuntary Termination. If (i) Executive’s
employment with the Company terminates other than voluntarily or for “Cause” (as defined herein), and (ii) Executive signs and does not revoke a standard release of claims with the Company, then subject to Section 10, Executive shall be
entitled to receive continuing payments of severance pay (less applicable withholding taxes) at a rate equal to Executive’s Base Salary rate, as then in effect, for a period of six (6) months from the date of such termination, to be paid
periodically in accordance with the Company’s normal payroll policies. In no event shall Executive be entitled to any bonus amounts 

  

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under the Incentive Plan or the OI Plan for the period in which Executive’s employment with the Company terminates. Additionally, the Company shall
waive the cost for the Executive to continue Executive’s group medical coverage with the Company should Executive decide to exercise Executive’s right to do so in accordance with Title X of the Consolidated Budget Reconciliation Act of
1985, as amended (“COBRA”). Such waiver of cost shall cease upon the earlier of six (6) months from the effective date of such coverage or the date in which the Executive obtains equivalent coverage elsewhere. 
  
 (b) Voluntary Termination; Termination for Cause. If Executive’s
employment with the Company terminates voluntarily by Executive or for “Cause” by the Company, then (i) all vesting of the Option will terminate immediately and all payments of compensation by the Company to Executive hereunder will
terminate immediately (except as to amounts already earned), and (ii) Executive will not be eligible for severance benefits. 
  
 (c) Change of Control. If within twelve (12) months following a “Change of Control” (as defined below) (i) Executive terminates his or
her employment with the Company or successor corporation other than voluntarily, (ii) Executive terminates his or her employment with the Company or successor corporation as a result of Constructive Termination, or (iii) the Company or the successor
corporation terminates Executive’s employment with the Company or successor corporation for other than “Cause”, death or Disability, then 50% of the shares subject to any options granted to Executive in prior periods or subsequent to
the date hereof (the “Options”), shall vest and become exercisable at such time. Thereafter, the Options will continue to be subject to the terms, definitions and provisions of the Option Plan and the respective Option Agreements.

  
 8. Definition of Cause. 
  
 (a) Cause. For purposes of this Agreement, “Cause” is
defined as: (i) an act of willful dishonesty made by Executive in connection with Executive’s responsibilities as an employee, (ii) Executive’s conviction of, or plea of nolo contendere to, a felony, (iii) Executive’s gross
misconduct, which shall include, but is not limited to, fraud, theft, embezzlement, breach of the Company’s Code of Conduct and Conflicts of Interest policy on the part of the Executive and any material breach of the Executive’s
responsibilities as an employee or (iv) Executive’s continued substantial violations of Executive’s employment duties after Executive has received a written demand for performance from the Company which specifically sets forth the factual
basis for the Company’s belief that Executive has not substantially performed Executive’s duties. 
  
 (b) Change of Control. For purposes of this Agreement, “Change of Control” of the Company is defined as: (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; or (ii) a change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority
of the directors are Incumbent Directors. “Incumbent Directors” will mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes
of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to 

  

 -3- 

 
the election of directors to the Company); (iii) the date of the consummation of a merger or consolidation of the Company with any other corporation that has
been approved by the stockholders of the Company, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company; or (iv) the date of the consummation of the sale or disposition by the Company of all or substantially all the Company’s assets.

  
 (c) Constructive Termination. For purposes of this
Agreement, “Constructive Termination” is defined as the resignation of Executive within sixty (60) days following: (i) a material reduction in Executive’s Base Salary; provided that the materiality qualification of this Section
8(c)(i) shall not apply if such a reduction in Executive’s Base Salary occurs within twelve (12) months following a Change of Control, (ii) a material reduction in Executive’s authority or duties, or (iii) the relocation of Executive to a
facility or location more than fifty (50) miles from Executive’s then present location and then present residence, without Executive’s written consent. 
  
 9. Confidential Information. Executive agrees to enter into the Company’s standard Confidential Information and
Invention Assignment Agreement (the “Confidential Information Agreement”) upon commencing employment hereunder. 
  
 10. Conditional Nature of Severance Payments. 
  
 (a) Noncompete. Executive acknowledges that the nature of the Company’s business is such that if Executive were to become employed by, or
substantially involved in, the business of a competitor of the Company during the twelve (12) months following the termination of Executive’s employment with the Company, it would be very difficult for Executive not to rely on or use the
Company’s trade secrets and confidential information. Thus, to avoid the inevitable disclosure of the Company’s trade secrets and confidential information, Executive agrees and acknowledges that Executive’s right to receive the
severance payments set forth in Section 7 (to the extent Executive is otherwise entitled to such payments) shall be conditioned upon Executive not directly or indirectly engaging in (whether as an employee, consultant, agent, proprietor, principal,
partner, stockholder, corporate officer, director or otherwise), nor having any ownership interested in or participating in the financing, operation, management or control of, any person, firm, corporation or business that directly competes with
Company. Upon any breach of this section, all severance payments pursuant to this Agreement shall immediately cease. 
  
 (b) Non-Solicitation. Until the date twelve (12) months after the termination of Executive’s employment with the Company for any reason,
Executive agrees and acknowledges that Executive’s right to receive the severance payments set forth in Section 7 (to the extent Executive is otherwise entitled to such payments) shall be conditioned upon Executive not either directly or
indirectly soliciting, inducing, attempting to hire, recruiting, encouraging, taking away, hiring any employee of the Company or causing an employee to leave his or her employment either for Executive or for any other entity or person. 

 

 -4- 

 (c) Understanding of Covenants. Executive represents that he (i) is familiar with the foregoing
covenants not to compete and not to solicit, and (ii) is fully aware of Executive’s obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of these covenants. 
  
 11. Assignment. This Agreement will be binding upon and inure to the
benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this
Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of
the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted
assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void. 
  
 12. Notices. All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given (i) on the
date of delivery if delivered personally, (ii) one (1) day after being sent by a well established commercial overnight service, or (iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and
addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing: 
  
 If to the Company: 
  
 Somera Communications, Inc. 
 6410 Via Real

 Carpinteria, California 93013 
 Attention: General Counsel 
  
 If to Executive:

  
 at the last residential address known by the Company.

  
 13. Severability. In the event that any provision
hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 
  
 14. Arbitration. The parties agree that any controversy or claim arising out of or relating to this Agreement, or any
dispute arising out of the interpretation or application of this Agreement, which the parties hereto are unable to resolve, shall be finally resolved and settled exclusively by arbitration as provided in the Arbitration Agreement between the Company
and the Executive which is incorporated by reference herein. 
  
 15. Integration. This Agreement, together with the Option Plan, Option Agreement, the Arbitration Agreement and the Confidential Information Agreement represents the entire agreement and understanding between the parties as to the
subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral by and between the Company and Executive. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless
in writing and signed by duly authorized representatives of the parties hereto. 
  

 -5- 

 16. Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding
of applicable taxes. 
  
 17. Governing Law. This Agreement
will be governed by the laws of the State of California (with the exception of its conflict of laws provisions). 
  
 18. Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from Executive’s
private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 
  

 -6- 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by their
duly authorized officers, as of the day and year first above written. 
  
 COMPANY:

  

							
	SOMERA COMMUNICATIONS SALES, INC.	 	 	 	 
				
	By:	 	 /s/    DAVID W. HEARD

	 	Date:	 	     2/16/2005

	Name:	 	David W. Heard	 	 	 	 
	Title:	 	President and Chief Executive Officer	 	 	 	 
			
	EMPLOYEE:	 	 	 	 
			
	 /s/    JAY HILBERT

	 	Date:	 	     2/16/2005

	Jay Hilbert	 	 	 	 

  

 -7-

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