Document:

Exhibit 4.1

 Exhibit 4.1 

 

 GENERAL DYNAMICS CORPORATION 

 
 2012 EQUITY COMPENSATION PLAN 

 

	1.	Purpose of the Plan. 

  

The purpose of the Plan is to provide the Company with an effective means of attracting, retaining, and motivating directors, officers and key employees,
and to provide them with incentives to enhance the growth and profitability of the Company. 
  

	2.	Effective Date and Duration of the Plan. 

  

The Plan was adopted by the Board on March 7, 2012, subject to approval by the stockholders of the Parent. The Plan becomes effective upon the first
date that the stockholders of the Parent approve the Plan in a manner that satisfies the requirements of the DGCL and the rules of the New York Stock Exchange. Awards may be made pursuant to the Plan through and including the 10 year anniversary of
the date of the latest stockholder approval of the Plan, including without limitation any stockholder approval of any amendment to the Plan to increase the share award capacity hereunder. 
  

	3.	Definitions; Rules of Construction. 

  

	 	(a)	Defined terms. The terms defined in this Section shall have the following meanings for purposes of this Plan: 

 

	 	(i)	Award shall mean a grant under the Plan in any form permitted hereunder. 

 

	 	(ii)	Award Agreement shall mean a written agreement, in a form determined by the Committee from time to time, entered into by each Participant and the Company,
evidencing the grant of an Award under the Plan. 

  

	 	(iii)	Beneficial Owner shall have the meaning used in Rule 13d-3 promulgated under the Exchange Act. “Beneficial Ownership” shall have a correlative
meaning. 

  

	 	(iv)	Board shall mean the Board of Directors of the Parent. 

  

	 	(v)	Cause for the termination of the Participant’s employment with the Company will be deemed to exist if the Participant has been convicted of a felony or if
the Company determines in good faith that the Participant has (A) intentionally and continually failed to perform in all material respects the Participant’s reasonably assigned duties with the Company (other than a failure resulting from
the Participant’s incapacity due to physical or mental disability or illness) or (B) intentionally engaged in conduct which is demonstrably and materially injurious to the Company; provided, however, that if the Participant has entered
into an individual employment or severance protection agreement between the Participant and the Company, and the agreement defines the term “Cause”, then Cause shall have the meaning assigned to such term in such agreement.

  

	 	(vi)	Change in Control shall have the meaning set forth in Section 16 of the Plan. 

  

	 	(vii)	Code shall mean the Internal Revenue Code of 1986, as amended from time to time, including any regulations promulgated thereunder. 

  
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	 	(viii)	Committee shall mean the Compensation Committee of the Board and any successor committee thereto. 

 

	 	(ix)	Common Stock shall mean the common stock of the Parent. 

  

	 	(x)	Common Stock Award shall mean an Award of unrestricted Common Stock. 

 

	 	(xi)	Company shall mean collectively the Parent and its Subsidiaries. 

 

	 	(xii)	Covered Award shall mean an Award made to a Covered Employee that is intended to meet the requirements of “qualified performance-based compensation”
under Section 162(m) of the Code. 

  

	 	(xiii)	Covered Employee shall mean a Participant who is an executive officer of the Parent or any Subsidiary within the meaning of Rule 3b-7 promulgated under the
Exchange Act. 

  

	 	(xiv)	DGCL shall mean the Delaware General Corporation Law, as in effect from time to time. 

  

	 	(xv)	Dividend Equivalent shall mean an amount, payable either in shares of Common Stock or in cash, that is equal to the cash dividend that would be paid on each
share of Common Stock underlying an Award if the share were duly issued and outstanding on the record date for the dividend. 

  

	 	(xvi)	Exchange Act shall mean the Securities Exchange Act of 1934, as amended from time to time, including any regulations promulgated thereunder.

  

	 	(xvii)	Excluded Person shall have the meaning set forth in Section 16 of the Plan. 

  

	 	(xviii)	Fair Market Value shall mean, as of the date of determination, (A) the average of the highest and lowest quoted selling price per share of Common Stock on
the national securities exchange or such other market on which such stock is principally traded, as determined by the Committee, or (B) if the shares of Common Stock are not listed or admitted to trading on any such exchange or market, the
average of the highest and lowest selling price as reported by an over-the-counter market; provided that if no sales occur as of the date of determination, then the date of determination shall be the last day on which a sale was reported; further
provided that if the shares of Common Stock are not then listed on a national securities exchange or market or traded in an over-the-counter market, such value shall be determined by the Committee in good faith. In no event shall the Fair Market
Value of any share of Common Stock be less than the par value per share of Common Stock. 

  

	 	(xix)	 Good Reason shall mean either (A) a material reduction in the Participant’s base salary (other than a reduction that applies across
the board to similarly-situated employees) or (B) the imposition of a requirement that the Participant be based at any place outside a 50-mile radius from the Participant’s principal place of employment immediately prior to a Change in
Control; provided, that, in each case, the Participant shall not have Good Reason to terminate service unless the Participant provides the Company with written notice of the occurrence of the action constituting Good Reason within 30 days following
the occurrence of such 

  
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action, the Participant provides the Company with a minimum of 30 days following delivery of the written notice to cure such action, and the Participant terminates service within 90 days
following the occurrence of such action. Notwithstanding the foregoing, if the Participant has entered into an individual employment agreement or severance protection agreement with the Company, and the agreement defines the term “Good
Reason”, then Good Reason shall have the meaning assigned to such term in such agreement. 

  

	 	(xx)	Grant Date shall mean the date designated by the Committee and specified in the Award Agreement as the date the Award is granted. 

 

	 	(xxi)	Incumbent Board shall have the meaning set forth in Section 16 of the Plan. 

  

	 	(xxii)	ISO shall mean any Option, or portion thereof, awarded to a Participant pursuant to the Plan which is designated by the Committee as an incentive stock option
and also meets the applicable requirements of an incentive stock option pursuant to Section 422 of the Code. 

  

	 	(xxiii)	Non-Control Transaction shall have the meaning set forth in Section 16 of the Plan. 

  

	 	(xxiv)	Non-Employee Director shall mean a member of the Board who is not an employee of the Company. 

 

	 	(xxv)	Non-Statutory Stock Option shall mean any Option awarded under the Plan that does not qualify as an ISO or that is designated as a Non-Statutory Stock Option
notwithstanding that it may otherwise qualify as an ISO. 

  

	 	(xxvi)	Option shall mean an Award in the form of an option to purchase Common Stock granted pursuant to the Plan. 

 

	 	(xxvii)	Other Award shall mean an Award payable only in cash. 

  

	 	(xxviii)	Parent shall mean General Dynamics Corporation (and any successor thereto). 

 

	 	(xxix)	Participant shall mean any individual who has an outstanding Award pursuant to the Plan. 

  

	 	(xxx)	Participation Unit shall mean an Award that has a value derived from or related to the value of Common Stock, including but not limited to a phantom stock unit
or restricted stock unit, that is payable in cash or Common Stock, or any combination thereof, as specified in the Award Agreement. 

  

	 	(xxxi)	Performance-Based Award shall mean an Award granted under Section 7 of the Plan, the payment of which is conditioned upon the attainment of one or more
Performance Goals. 

  

	 	(xxxii)	Performance Goal shall mean a measure of performance established by the Committee, based on one or more of the criteria set forth in Section 7, that must be
met during the Performance Period under a Performance-Based Award. 

  

	 	(xxxiii)	Performance Period shall mean, with respect to any Performance-Based Award, the period over which the attainment of the applicable Performance Goal is measured.
Performance Periods may be overlapping. 

  
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	 	(xxxiv)	Person for purposes of Section 16 only shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
14(d) of the Exchange Act, and will include any “group” as such term is used in such sections. 

  

	 	(xxxv)	Plan shall mean the General Dynamics Corporation 2012 Equity Compensation Plan as set forth herein and as may be amended from time to time.

  

	 	(xxxvi)	Purchase Price shall mean the price per share (A) for which a share of Common Stock may be purchased pursuant to an Option or (B) by reference to which
the amount of any payment pursuant to a Stock Appreciation Right is determined, in each case as established by the Committee, provided that such price will not be less than one hundred percent (100%) of the Fair Market Value of a share of
Common Stock on the Grant Date. 

  

	 	(xxxvii)	Restricted Stock shall mean an Award consisting of shares of Common Stock granted to a Participant pursuant to the Plan that may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated except upon passage of time, or upon satisfaction of Performance Goals or other conditions, or a combination thereof, in every case pursuant to such terms and conditions as may be determined
by the Committee in its sole discretion. 

  

	 	(xxxviii)	Securities Act shall mean the Securities Act of 1933, as amended from time to time, including any regulations promulgated thereunder. 

 

	 	(xxxix)	Stock Appreciation Right shall mean an Award in the form of a right to receive an amount of cash, or shares of Common Stock with a Fair Market Value, equal to
the increase in the Fair Market Value of a specified number of shares of Common Stock between the Grant Date of the right and the date on which it is exercised. 

 

	 	(xl)	Subject Person shall have the meaning set forth in Section 16 of the Plan. 

  

	 	(xli)	Subsidiary shall mean any “subsidiary” of the Parent within the meaning of Rule 405 under the Securities Act. 

 

	 	(xlii)	Surviving Corporation shall have the meaning set forth in Section 16 of the Plan. 

  

	 	(xliii)	13G Filer shall have the meaning set forth in Section 16 of the Plan. 

 

	 	(b)	Construction. Unless otherwise expressly provided or the context otherwise requires, the terms defined in this Plan include the plural and the singular, and
pronouns of either gender or neuter shall include, as appropriate, the other pronoun forms. 

  

	4.	Eligibility. 

  
 Any officer or employee of the Company is eligible for selection by the Committee for an Award under this Plan. Awards to Non-Employee Directors may be granted pursuant to Section 13 of the Plan.

  

	5.	Awards. 

  
 The Committee shall determine the amounts and types of the Awards and the terms and conditions of such Awards, consistent with the terms of this Plan. Awards may be made in Common Stock Awards,

  
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Options, Stock Appreciation Rights, Restricted Stock, Participation Units, Other Awards, Performance-Based Awards or in any combination thereof. If any Award is settled in cash that is to be paid
on a deferred basis, the Participant may be entitled at the Committee’s discretion and on terms and conditions as the Committee may determine, to be paid interest on the unpaid amount. 
  

	6.	Common Stock Available for Awards Pursuant to the Plan. 

  

	 	(a)	Shares Available. Subject to adjustment pursuant to Section 15 of the Plan, the maximum aggregate number of shares of Common Stock available for grant
pursuant to Awards (including Common Stock Awards, Options, Stock Appreciation Rights, Restricted Stock, Participation Units and Performance-Based Awards) under the Plan and for the payment of Dividend Equivalents that are settled in shares of
Common Stock is 18,250,000. From that aggregate limit: 

  

	 	(i)	no more than 18,250,000 shares may be granted in the form of ISOs; 

 

	 	(ii)	no more than an aggregate of 18,250,000 shares may be granted in the form of Non-Statutory Stock Options and Stock Appreciation Rights; and 

 

	 	(iii)	no more than an aggregate of 5,000,000 shares may be granted in the form of Restricted Stock, Common Stock Awards, Participation Units, and Performance-Based Awards
(excluding Performance-Based Awards that are Options or Stock Appreciation Rights) and paid in settlement of Dividend Equivalents. 

  

The shares of Common Stock issued pursuant to the Plan may come from authorized and unissued shares, treasury shares or shares purchased
by the Company in the open market. 
  

	 	(b)	Share Counting Rules. 

  

	 	(i)	Share Recycling. The following categories of shares of Common Stock shall again be available for grant pursuant to Awards under the Plan, in addition to the
shares described in Section 6(a): (A) shares related to Awards that expire, are forfeited or cancelled or terminate for any reason without the issuance of shares (including, without limitation, upon cash settlement), (B) shares
related to awards granted under the General Dynamics Corporation 2009 Equity Compensation Plan that expire, are forfeited or cancelled or terminate for any reason without the issuance of shares (including, without limitation, upon cash settlement),
and (C) shares related to awards granted under the General Dynamics Corporation Equity Compensation Plan adopted in 2004 that expire, are forfeited or cancelled or terminate for any reason without the issuance of shares (including, without
limitation, upon cash settlement). For purposes of clarity, (x) shares of Common Stock that are tendered or withheld in payment of all or part of the Purchase Price of an Option or other exercise price of an Award or in satisfaction of tax
withholding obligations shall not be included in or added to the number of shares available for issuance under the Plan and (y) with respect to a Stock Appreciation Right granted hereunder, the number of shares of Common Stock counted against
the share limits set forth in Section 6(a) shall be either (A) the full number of shares subject to the Stock Appreciation Right if the Stock Appreciation Right is settled in shares or (B) zero shares if the Stock Appreciation Right
is settled in cash. 

  
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	 	(ii)	Assumption, Replacement, Conversion and Adjustment. The Committee may grant Awards pursuant to the Plan in connection with the assumption, replacement,
conversion or adjustment of outstanding equity-based awards in the context of a corporate acquisition or merger (within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual). Common Stock covered by Awards granted
pursuant to this Section 6(b)(ii) shall not count against the number of shares available for issuance pursuant to Section 6(a). 

  

	7.	Performance-Based Awards. 

  

	 	(a)	General. The Committee may grant Performance-Based Awards in the form of Common Stock Awards, Options, Stock Appreciation Rights, Restricted Stock, Participation
Units, or Other Awards. The minimum vesting period for any Performance-Based Award shall not be less than the minimum vesting period for the form of Award in which the Performance-Based Award is granted, as set forth herein.

  

	 	(b)	Performance Goals. A Performance Goal (i) may relate to the performance of the Participant, the Parent, a Subsidiary, any business group, any business unit
or other subdivision of the Parent or any Subsidiary, or any combination of the foregoing, as the Committee may deem appropriate, (ii) may be expressed as an amount, as an increase or decrease over a specified period, as a relative comparison
to the performance of a group of comparator companies or a published or special index, or any other external measure of the selected performance criteria, as the Committee, in its sole discretion, deems appropriate, and (iii) shall be based on
one or more of the following criteria selected by the Committee in its sole discretion (as determined in accordance with generally accepted accounting principles, as applicable): 

 

	 	(A)	market price of Common Stock; earnings per share of Common Stock; net income or profit (before or after taxes); return on total stockholders’ equity; return of
stockholders’ equity; return on invested capital; cash flow; cumulative return on net assets employed; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings from continuing operations;
sales or revenues; return on assets, capital or investment; market share; cost reduction goals; budget comparisons; implementation or completion of specified projects or processes; the formation of joint ventures, research or development
collaborations, or the completion of other transactions; and/or any combination of any of the foregoing; and 

  

	 	(B)	with respect to any Award that is not a Covered Award, any other criteria that the Committee deems appropriate. 

 
 Within 90 days after the beginning of a Performance Period,
and in any case before 25 percent of the Performance Period has elapsed, the Committee shall establish the Performance Goals for such Performance Period. The Committee may provide at the time it establishes the Performance Goal for any Performance
Period that the measurement of the Performance Goal shall exclude the impact of unusual, non-recurring or extraordinary items, charges for restructurings, discontinued operations, the cumulative effect of changes in accounting treatment and any
other items, each determined in accordance with generally accepted accounting principles (to the extent applicable) and as identified in the Company’s audited financial statements, including the notes thereto. 

 

  
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	 	(c)	Individual Limits. Notwithstanding any other provision of the Plan, the maximum number of shares of Common Stock (or in the case of an Other Award, the maximum
dollar amount) that may be subject to Covered Awards granted under the Plan to any single Covered Employee, in any calendar year, shall be: 

  

	 	(i)	1,000,000 shares of Common Stock pursuant to a Common Stock Award; 

 

	 	(ii)	1,000,000 shares of Common Stock pursuant to an Option or Stock Appreciation Right; 

 

	 	(iii)	200,000 shares of Restricted Stock; 

  

	 	(iv)	Participation Units with a value equal to 200,000 shares of Common Stock; and 

 

	 	(v)	$5,000,000 of Other Awards. 

  

The limitations set forth in this Section 7(c) shall be subject to adjustment as provided in Section 15, but only to the extent
such adjustment would not prevent a Covered Award from meeting the requirements of “qualified performance-based compensation” pursuant to Section 162(m) of the Code. 
  

	 	(d)	Effect of a Termination of Employment or Service. The consequences with respect to a Performance-Based Award of the termination of employment, or service as a
Non-Employee Director, of the Participant holding the Performance-Based Award shall be determined by the Committee in its sole discretion and set forth in the applicable Award Agreement. 

 

	 	(e)	Dividends and Dividend Equivalents. The Committee may provide in its discretion that a Performance-Based Award shall accrue dividends or Dividend Equivalents, as
applicable, provided such dividends or Dividend Equivalents shall be subject to the same terms and conditions as, and shall in no event be paid prior to the vesting of, the Performance-Based Award to which they relate. 

 

	8.	Common Stock Awards. The Committee may grant Common Stock Awards on such terms and conditions, not inconsistent with this Plan, as the Committee may determine.

  

	9.	Restricted Stock Awards. 

  

	 	(a)	General. The Committee may grant Restricted Stock, on such terms and conditions, not inconsistent with this Plan, as the Committee may determine.

  

	 	(b)	 Terms and Conditions. Restricted Stock Awards may not vest sooner than three years from the Grant Date (other than shares of Restricted Stock
granted as an adjustment pursuant to a performance-based formula), provided that Restricted Stock may vest earlier in accordance with Section 16 and the Committee may provide for a shorter vesting period (i) in connection with any
corporate divestiture or acquisition affecting a Participant’s employment with, or provision of services to, the Company, (ii) in the case of any special agreement, award, or situation with respect to any individual Participant, or
(iii) in connection with such other events or circumstances as the Committee may determine from time to time. Subject to the restrictions set forth in this Section 9, each Participant who receives Restricted Stock

  
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shall have all rights as a stockholder with respect to such shares, including the right to vote the shares and receive dividends and other distributions thereon, except as may be provided in the
applicable Award Agreement. Restricted Stock shares may be held by the Company until all restrictions lapse and shall be subject to a legend describing applicable restrictions as provided by the Committee from time to time.

  

	 	(c)	Effect of a Termination of Employment or Service. The consequences with respect to an Award of Restricted Stock of the termination of employment, or service as a
Non-Employee Director, of the Participant holding the Restricted Stock shall be determined by the Committee in its sole discretion and set forth in the applicable Award Agreement. 

 

	10.	Option and Stock Appreciation Right Awards. The Committee may grant Options and Stock Appreciation Rights on such terms and conditions, not inconsistent with the
Plan, as the Committee may determine, subject to the following provisions: 

  

	 	(a)	Type of Options. The Committee may grant Options in the form of ISOs, Non-Statutory Stock Options, or any combination thereof. Each Option Award Agreement shall
identify whether the Options are intended to be ISOs or Non-Statutory Stock Options. If an Award is not designated as either ISOs or Non-Statutory Stock Options, then such Award shall be deemed to be Non-Statutory Stock Options.

  

	 	(b)	ISO Limitations. For ISOs granted under the Plan, the aggregate Fair Market Value (determined as of the Grant Date) of the number of shares with respect to which
ISOs are exercisable for the first time by any Participant during any calendar year under all plans of the Company shall not exceed $100,000, or such other maximum amount then applicable under Section 422 of the Code. Any Option or a portion
thereof that is designated as an ISO that for any reason fails to meet the requirements of an ISO shall be treated hereunder as a Non-Statutory Stock Option. No ISO may be granted to an individual who, at the time of the proposed grant, owns (or is
deemed to own under the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of common stock of the Company unless (i) the exercise price of such ISO is at least one hundred ten percent
(110%) of the Fair Market Value of a share of Common Stock at the time such ISO is granted and (ii) such ISO is not exercisable after the expiration of five years from the date it is granted. 

 

	 	(c)	Terms and Conditions. The Committee shall determine all terms and conditions of the Options and Stock Appreciation Rights, provided that the following terms and
conditions shall apply to all Options and Stock Appreciation Rights: 

  

	 	(i)	Options and Stock Appreciation Rights may not vest sooner than one year from the Grant Date, provided that Options and Stock Appreciation Rights may vest earlier in
accordance with Section 16 and the Committee may provide for a shorter vesting period (A) in connection with any corporate divestiture or acquisition affecting a Participant’s employment with, or provision of services to, the Company,
(B) in the case of any special agreement, award, or situation with respect to any individual Participant, or (C) in connection with such other events or circumstances as the Committee may determine from time to time.

  

	 	(ii)	The term during which an Option or Stock Appreciation Right may be exercised shall not exceed ten years from the Grant Date. 

 

  
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	 	(iii)	The Purchase Price of an Option or Stock Appreciation Right shall in no event be less than one hundred percent (100%) of the Fair Market Value of a share of Common
Stock on the Grant Date. 

  

	 	(iv)	The consequences with respect to an Award of Options or Stock Appreciation Rights of the termination of employment, or service as a Non-Employee Director, of the
Participant holding the Options or Stock Appreciation Rights shall be determined by the Committee in its sole discretion and set forth in the applicable Award Agreement. 

  

	 	(v)	Options and Stock Appreciation Rights shall not contain any provision entitling a Participant to the automatic grant of additional Options or Stock Appreciation Rights
in connection with any exercise of the original Options or Stock Appreciation Rights. 

  

	 	(vi)	Except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), the terms of outstanding Options and Stock Appreciation Rights may not be amended to reduce the Purchase Price of outstanding Options
or Stock Appreciation Rights or cancel, exchange, buyout, replace or surrender outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation Rights with a Purchase Price that is less than the
exercise price of the original Options or Stock Appreciation Rights without approval of the Parent’s shareholders. 

  

	 	(vii)	Exercise and Settlement. During the lifetime of the Participant, an Option or Stock Appreciation Right may be exercised only by the Participant or his or her
personal representative. 

  

	 	(A)	Options. The Purchase Price of shares purchased upon the exercise of any Option shall be paid (i) in full in cash (including check or wire transfer),
(ii) in whole or in part (in combination with cash) in full shares of unrestricted Common Stock owned by the Participant and valued at their Fair Market Value on the date of exercise, (iii) by cashless exercise in any manner as may be
permitted by the Committee from time to time, or (iv) such other method as may be permitted by the Committee from time to time. 

  

	 	(B)	Stock Appreciation Rights. Upon the exercise of a Stock Appreciation Right, the Participant shall be entitled to a number of shares of Common Stock with a Fair
Market Value, or an amount in cash, equal to the difference between the aggregate Fair Market Value of the shares of Common Stock underlying the Stock Appreciation Right on the Grant Date and the aggregate Fair Market Value of such shares on the
date of exercise. 

  
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	11.	Participation Units. 

  

	 	(a)	General. The Committee may grant Participation Units, on such terms and conditions, not inconsistent with the Plan and in compliance with Section 409A of
the Code, as the Committee may determine in its discretion and set forth in the applicable Award Agreement. 

  

	 	(b)	Terms and Conditions. Participation Units may not vest sooner than three years from the Grant Date (other than Participation Units granted as an adjustment
pursuant to a performance-based formula), provided that Participation Units may vest earlier in accordance with Section 16 and the Committee may provide for a shorter vesting period (i) in connection with any corporate divestiture or
acquisition affecting a Participant’s employment with, or provision of services to, the Company, (ii) in the case of any special agreement, award, or situation with respect to any individual Participant, or (iii) in connection with
such other events or circumstances as the Committee may determine from time to time. 

  

	12.	Other Awards. The Committee may grant Other Awards on such terms and conditions, not inconsistent with the Plan and in compliance with Section 409A of the
Code, as the Committee may determine in its discretion, provided that an Other Award shall be payable only in cash. 

  

	13.	Awards to Non-Employee Directors. 

  

	 	(a)	Awards. Awards to Non-Employee Directors may be made at the recommendation of the Committee, subject to final approval of the Board, in such amounts as the
Committee shall determine in Common Stock Awards, Non-Statutory Stock Options, Stock Appreciation Rights, Restricted Stock, Participation Units, Performance-Based Awards or any combination thereof. 

 

	 	(b)	Retainers and Fees. Upon terms and conditions as may be established by the Committee from time to time, each Non-Employee Director may elect to have all or part
of his or her annual retainer paid in Common Stock under the Plan. 

  

	14.	Plan Administration. 

  

	 	(a)	 Committee. The Plan shall be administered by the Committee. The Committee shall have the authority in its sole discretion, subject to and not
inconsistent with the express provisions of the Plan, to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or as it deems necessary or advisable in administration of the Plan,
including without limitation, (i) the authority to grant Awards; (ii) to determine the individuals to whom and the time or times at which Awards shall be granted; (iii) to determine the type and number of Awards to be granted, the
number of shares of Common Stock to which an Award may relate and the terms, conditions, restrictions and performance criteria relating to any Award; (iv) to determine whether, to what extent, and under what circumstances and the manner in
which an Award may be settled, cancelled, forfeited, exchanged or surrendered; (v) to construe and interpret the Plan and any Award Agreement; (vi) to prescribe, amend, and rescind rules and regulations relating to the Plan, including but
not limited to, rules and regulations relating to leaves of absence and changes from an employee to a service provider or consultant; (vii) to determine 

  
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whether an Award Agreement would be appropriate with respect to any Award, and if so, to determine the form of such Award Agreement; (viii) to determine whether an Award will be credited
with Dividend Equivalents and the terms and conditions of any such Dividend Equivalents; and (ix) to make all other determinations deemed necessary or advisable for the administration and implementation of the Plan. For purposes of clarity, the
Committee may exercise its discretion in a non-uniform manner among Participants. The determination of the Committee on these matters shall be final and conclusive and binding on the Company and all Participants. Any authority, power or right of the
Committee pursuant to the Plan may also be exercised by the Board. 

  

	 	(b)	Delegation. Except to the extent prohibited by applicable law, including Section 157(c) of the DGCL, the applicable rules of the national securities
exchange or such other market on which the Common Stock is principally traded or Section 162(m) of the Code with respect to Covered Awards, the Committee has the authority to delegate any of its powers under the Plan (including, without
limitation, its power to administer claims and appeals) to one or more members of the Committee or one or more officers of the Parent. Any delegation shall include the same sole discretionary and final authority that the Committee has hereunder, and
any decisions, actions or interpretations made by any delegate shall have the same ultimate binding effect as if made by the Committee. Any such allocation or delegation may be limited or revoked by the Committee at any time.

  

	 	(i)	Except as otherwise provided by the Committee, and to the extent permitted pursuant to applicable law, the applicable rules of the national securities exchange or such
other market on which Common Stock is principally traded and the Committee charter, the chairperson of the Committee may make Awards on behalf of the Committee to any Participant, except that the chairperson of the Committee may not (A) make an
Award to a Participant who is subject to the reporting requirements of Section 16(a) of the Exchange Act or (B) make a Covered Award to a Covered Employee. 

 

	15.	Adjustments Upon Certain Changes. Subject to any action by the shareholders of the Parent required by law, applicable tax rules or the rules of any exchange on
which shares of Common Stock are listed for trading: 

  

	 	(a)	Shares Available for Grants. In the event of any change in the number of shares of Common Stock outstanding by reason of any stock dividend or split,
recapitalization, merger, consolidation, combination or exchange of shares or similar corporate change, the maximum aggregate number of shares of Common Stock available for grant pursuant to Awards under the Plan as set forth in Section 6 and
the maximum number of shares of Common Stock with respect to which the Committee may grant Covered Awards to any individual Covered Employee in any calendar year as set forth in Section 7(c) shall be appropriately adjusted by the Committee. In
the event of any change in the number of shares of Common Stock outstanding by reason of any other event or transaction, the Committee may, to the extent deemed appropriate by the Committee, make such adjustments in the number and class of shares of
Common Stock with respect to which Awards may be granted. 

  

	 	(b)	 Increase or Decrease in Issued Shares Without Consideration. In the event of any increase or decrease in the number of issued shares of Common
Stock resulting from a subdivision or 

  
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consolidation of shares of Common Stock or the payment of a stock dividend (but only on the shares of Common Stock), or any other increase or decrease in the number of such shares affected
without receipt or payment of consideration by the Company, the Committee may, to the extent deemed appropriate by the Committee, adjust the number of shares of Common Stock subject to each outstanding Award and the Purchase Price or exercise price
per share of Common Stock of each such Award. 

  

	 	(c)	Certain Mergers. In the event of any merger, consolidation or similar transaction as a result of which the holders of shares of Common Stock receive
consideration consisting exclusively of securities of the surviving corporation in such transaction, the Committee may, to the extent deemed appropriate by the Committee, adjust each Award outstanding on the date of such merger or consolidation so
that it pertains and applies to the securities which a holder of the number of shares of Common Stock subject to such Award would have received in such merger or consolidation. 

  

	 	(d)	Certain Other Transactions. In the event of (i) a dissolution or liquidation of the Parent, (ii) a sale of all or substantially all of the
Company’s assets (on a consolidated basis), (iii) a merger, consolidation or similar transaction involving the Parent in which the holders of shares of Common Stock receive securities and/or other property, including cash, other than
shares of the surviving corporation in such transaction, the Committee shall, in its sole discretion, have the power to: 

  

	 	(A)	cancel, effective immediately prior to the occurrence of such event, each Award (whether or not then exercisable or vested), and, in full consideration of such
cancellation, pay to the Participant to whom such Award was granted an amount in cash, for each share of Common Stock subject to such Award equal to the value, as determined by the Committee in its reasonable discretion, of such Award, provided that
with respect to any outstanding Option or Stock Appreciation Right such value shall be equal to the excess of (i) the value, as determined by the Committee in its reasonable discretion, of the property (including cash) received by the holder of
a share of Common Stock as a result of such event over (ii) the Purchase Price of such Option or Stock Appreciation Right; or 

  

	 	(B)	provide for the exchange of each Award (whether or not then exercisable or vested) for an Award with respect to some or all of the property which a holder of the number
of shares of Common Stock subject to such Award would have received in such transaction and, incident thereto, make an equitable adjustment as determined by the Committee in its reasonable discretion in the Purchase Price or exercise price of the
Award, or the number of shares or amount of property subject to the Award or provide for a payment (in cash or other property) to the Participant to whom such Award was granted in partial consideration for the exchange of the Award.

  

	 	(e)	Other Changes. In the event of any change in the capitalization of the Parent or corporate change other than those specifically referred to in paragraphs (b),
(c) or (d), the Committee may make such adjustments in the number and class of shares subject to Awards outstanding on the date on which such change occurs and in such other terms of such Awards as the Committee may consider appropriate,
provided that if any such Award is a Covered Award such adjustments are consistent with the requirements of Section 162(m) of the Code. 

  
 12 

	 	(f)	Other Awards. In the event of any transaction or event described in this Section 15, including without limitation any corporate change referred to in
paragraph (e) hereof, the Committee may, in its sole discretion, make such adjustments in any Performance Goal and in any other terms of any Other Awards, as the Committee may consider appropriate in respect of such transaction or event,
provided that if such Other Award is a Covered Award, such adjustments are consistent with the requirements of Section 162(m) of the Code. 

  

	 	(g)	No Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of shares of stock
of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Parent or any other corporation. Except as expressly provided in the
Plan, no issuance by the Parent of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares or amount of other
property subject to, or the terms related to, any Award. 

  

	 	(h)	Savings Clause. No provision of this Section 15 shall be given effect to the extent that such provision would cause any tax to become due under
Section 409A of the Code. 

  

	16.	Change in Control. 

  

	 	(a)	In the event that, within two years following a Change in Control, the Participant’s service with the Company and its affiliates is terminated (i) by the
Company or any of its affiliates for any reason other than for Cause or (ii) by the Participant for Good Reason, all outstanding Awards granted to a Participant which have not theretofore vested shall immediately vest and become exercisable and
all restrictions on such Awards shall immediately lapse. 

  

	 	(b)	Except to the extent that it may give rise to a tax under Section 409A of the Code with respect to any Award, the Committee may also accord to any Participant a
right to refuse to have any of the actions that the Committee may take otherwise as described in (a) above, whether pursuant to the Award or otherwise, in such circumstances as the Committee may approve. 

 

	 	(c)	“Change in Control” means any of the following events: 

 

	 	(i)	An acquisition by any Person of Beneficial Ownership (other than a direct or indirect acquisition from the Parent) of forty percent (40%) or more of the combined
voting power of the Parent’s then outstanding voting securities; provided that, in determining whether a Change in Control has occurred, an acquisition by any of the following Persons will not constitute a Change in Control:

  

	 	(A)	an employee benefit plan (or a trust forming a part thereof) maintained by the Parent or any Subsidiary of the Parent, 

 

	 	(B)	the Parent or any Subsidiary of the Parent, 

  

	 	(C)	 any Person that, pursuant to Rule 13d-1 promulgated under the Act, is permitted to, and actually does, report its Beneficial Ownership of voting
securities of the Parent on Schedule 13G (or any successor schedule) (a “13G Filer”); provided that, a Person shall no longer be considered a 13G Filer if it

  
 13 

	 	 
subsequently becomes required to or does report its Beneficial Ownership of voting securities of the Parent on Schedule 13D (or any successor schedule) and for purposes of this Section 16
such Person shall be deemed to have first acquired, on the first date on which such Person does so file a Schedule 13D, Beneficial Ownership of all voting securities of the Parent Beneficially Owned by it on such date, (each of (A), (B), and
(C) an “Excluded Person”), 

  

	 	(D)	any Person in connection with a Non-Control Transaction (as hereinafter defined), or 

 

	 	(E)	an underwriter temporarily holding securities of the Parent pursuant to an offering of such securities. 

 
 Notwithstanding the foregoing provisions of this
Section 16, a Change in Control will not be deemed to occur solely because any Person (a “Subject Person”) acquires Beneficial Ownership of forty percent (40%) or more of the combined voting power of the Parent’s then
outstanding voting securities as a result of the acquisition of voting securities by the Parent which, by reducing the number of voting securities outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person;
provided that, if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, then a Change in Control shall be deemed to occur on the date the Subject Person becomes
the Beneficial Owner of any additional voting securities which increases the percentage of the then outstanding voting securities Beneficially Owned by the Subject Person. 

 

	 	(ii)	Consummation of: 

  

	 	(A)	a merger, consolidation or reorganization involving the Parent, or any direct or indirect Subsidiary of the Parent, unless: 

 

	 	(i)	the stockholders of the Parent immediately before such merger, consolidation or reorganization will own, directly or indirectly, immediately following such merger,
consolidation or reorganization, at least fifty percent (50%) of the combined voting power of the outstanding voting securities of the corporation resulting from such merger, consolidation or reorganization (the “Surviving
Corporation”) or any parent thereof in substantially the same proportion as their ownership of the voting securities of the Parent immediately before such merger, consolidation or reorganization; 

 

	 	(ii)	the individuals who were members of the Board immediately prior to the execution of the agreement providing for such merger, consolidation or reorganization constitute
a majority of the members of the board of directors of the Surviving Corporation (or parent thereof); and 

  

	 	(iii)	 no Person (other than an Excluded Person, the Surviving Corporation, any Subsidiary or parent of the Surviving Corporation, or any Person who,
immediately prior to such merger, consolidation or reorganization, was the Beneficial Owner of forty percent (40%) or more of the then outstanding voting securities of the Parent) is the Beneficial Owner of

  
 14 

	 	 
forty percent (40%) or more of the combined voting power of the Surviving Corporation’s outstanding voting securities immediately after the merger, consolidation or reorganization. A
transaction described in clauses (i) through (iii) above is referred to herein as a “Non-Control Transaction.” 

  

	 	(B)	a sale or other disposition of all or substantially all of the assets of the Parent to an entity (other than to an entity (i) at least fifty percent (50%) of
the combined voting power of the outstanding voting securities of which is owned, directly or indirectly, by stockholders of the Parent in substantially the same proportion as their ownership of the voting securities of the Parent, (ii) a
majority of the board of directors of which consists of the individuals who were members of the Board immediately prior to the execution of the agreement providing for such sale or disposition, and (iii) of which no Person (other than an
Excluded Person or any Person who, immediately prior to such sale or disposition, was the Beneficial Owner of forty percent (40%) or more of the combined voting power of the then outstanding voting securities of the Parent) has Beneficial
Ownership of forty percent (40%) or more of the combined voting power of the entity’s outstanding voting securities). 

  

	 	(iii)	Individuals who, as of the date of adoption of the Plan, constitute the Board (the “Incumbent Board”), cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a director subsequent to the adoption of the Plan whose election, or nomination for election, by Parent stockholders was approved by a vote of at least two-thirds (2/3) of
the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, unless any such individual’s initial assumption of office occurs as a result of either an actual or threatened
election contest (including, but not limited to, a consent solicitation). 

  

	 	(iv)	The stockholders of the Company approve a plan of complete liquidation of the Company. 

  
 With respect to Awards that are subject to Section 409A of the Code, the foregoing provisions of this Section 16
shall be interpreted in a manner that is consistent with the U.S. Department of Treasury Regulations promulgated pursuant to Section 409A of the Code so that only such transactions or events that could qualify as a “change in control
event” within the meaning of Treasury Regulation § 1.409A-3(i)(5)(i) will be deemed to be a Change in Control for purposes of such Awards. 
  

	17.	Nontransferability of Awards. 

  

	 	(a)	Except as provided by the Committee, an Award shall not be transferable other than (i) by the Participant’s last will and testament or (ii) by the
applicable laws of descent and distribution. 

  

	 	(b)	Any Award transferred pursuant to Section 17(a) shall be subject to all of the same original terms and conditions as provided in the Plan and the applicable Award
Agreement. The Participant’s estate will remain liable for any withholding tax that may be imposed by any Federal, state or local tax authority. 

  
 15 

	18.	Tax Withholding. 

  

In connection with the vesting of Awards or issuance of Common Stock under the Plan, the Parent may require the recipient to remit to the Company an
amount sufficient to satisfy any Federal, state or local (including foreign jurisdictions) tax withholding requirements prior to the delivery of such Common Stock, or, in the discretion of the Committee, the Parent may withhold from the shares to be
delivered shares sufficient to satisfy all or a portion of the minimum statutorily required tax withholding requirements. The Committee may determine the manner in which such tax withholding may be satisfied, and may permit a Participant to deliver
unrestricted shares of Common Stock to be used to satisfy minimum statutorily required tax withholding based on the Fair Market Value of any such shares of Common Stock on the date the amount of tax to be withheld is determined. Any cash paid
pursuant to the Plan is subject to all applicable tax withholding. 
  

	19.	Expenses. 

  
 The expenses of administering the Plan shall be borne by the Company. 
  

	20.	Termination, Amendment and Changes to Outstanding Awards. 

  

The Committee may at any time suspend the operation of, terminate or amend the Plan or any Award thereunder, provided that no suspension, termination, or
amendment shall adversely impair the rights of any Participant pursuant to an outstanding Award without the consent of the Participant. Notwithstanding the foregoing, the Committee may take such actions as it deems appropriate to ensure that the
Plan and any Awards may comply with any tax, securities or other applicable law. Nothing herein shall restrict the Committee’s ability to exercise its discretionary authority as provided in the Plan. 

 

	21.	Other Actions. 

  

Nothing contained in the Plan shall be deemed to preclude other compensation plans which may be in effect from time to time or be construed to limit the
authority of the Company to exercise its corporate rights and powers, including, but not by way of limitation, the right of the Parent (a) to award options to acquire shares of Common Stock otherwise than under the Plan to an employee or other
person, firm, corporation, or association, or (b) to award options to acquire shares of Common Stock, or assume the option of, any person in connection with the acquisition, by purchase, lease, merger, consolidation, or otherwise, of the
business and assets (in whole or in part) of any person, firm, corporation, or association. 
  

	22.	Foreign Jurisdictions. 

  

The Committee may adopt, amend, and terminate such arrangements, not inconsistent with the intent of the Plan, as it may deem necessary or desirable to
make available tax or other benefits of the laws of any foreign jurisdiction, to Participants who are subject to such laws and who receive Awards under the Plan. 

 

	23.	Applicable Law. 

  

The validity, construction, interpretation, administration and effect of the Plan, and its rules and regulations, and rights relating to the Plan and to
Awards granted pursuant to the Plan, shall be governed by the substantive laws of the State of Delaware, without giving effect to its principles of conflict of laws. 

  
 16 

	24.	Section 409A of the Code. 

  

	 	(a)	To the extent applicable, it is intended that the Plan comply with or be exempt from the requirements of Section 409A of the Code and any related regulations or
other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. Accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance
therewith and if any provision of this Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition will be interpreted and deemed amended so as to avoid this conflict. Any
reservation of rights or discretion by the Company or the Committee hereunder affecting the timing of payment of any Award subject to Section 409A of the Code will only be as broad as is permitted by Section 409A of the Code and any
regulations thereunder. 

  

	 	(b)	Notwithstanding anything herein or in any Award Agreement to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under
Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided to a Participant during the six-month period immediately following the Participant’s separation from service (within the
meaning of Section 409A of the Code) shall instead be paid on the first business day after the date that is six months following the Participant’s separation from service (or death, if earlier). 

 

	25.	Miscellaneous. 

  

	 	(a)	Limitation of Participant rights. No Participant shall have any right to an Award or a benefit under the Plan except in accordance with the terms of the Plan,
the applicable Award Agreement, and any related documents. Establishment of the Plan and/or receipt of an Award shall not be construed to give any Participant the right to be retained in the service of the Company. No holder of an Option will have
any rights to dividends or other rights as a stockholder with respect to the shares subject thereto prior to the purchase of such shares upon exercise of the Option pursuant to the terms thereof. Participation Unit Award holders shall have no rights
to dividends or any other rights as a stockholder prior to the acquisition of shares upon the vesting and settlement of such Award pursuant to the terms thereof. 

 

	 	(b)	Limitation of liability. Notwithstanding any provision of the Plan to the contrary, none of the Company, the Board, the Committee or any individual acting as an
employee or agent of the Company shall be liable to any Participant, former Participant, or any other person for any claim, loss, liability or expense incurred in connection with the Plan and any Award hereunder. 

 

	 	(c)	Treatment for other compensation purposes. Payments and other benefits received by a Participant pursuant to an Award shall not be deemed part of a
Participant’s regular, recurring compensation for purposes of any termination, indemnity or severance pay laws and shall not be included in, nor have any effect on, the determination of benefits under any other employee benefit plan, contract
or similar arrangement provided by the Company, unless expressly so provided by such other plan, contract or arrangement. 

  

	 	(d)	 Distribution only in compliance with applicable law. Notwithstanding any other provision of the Plan, the Company shall have no liability to
deliver any shares of Common Stock under the Plan or make any other distribution of benefits under the Plan unless such delivery or 

  
 17 

	 	 
distribution would comply with all applicable laws (including, without limitation, the requirements of the Securities Act), and the applicable requirements of any securities exchange or similar
entity. 

  

	 	(e)	Share issuance on a non-certificate basis. To the extent that the Committee provides for the issuance of shares of Common Stock or Restricted Stock, the issuance
may be affected on a non-certificated basis, subject to applicable law or the applicable rules of any stock exchange. 

  

	 	(f)	Fractional shares. Any fractional shares underlying an Award shall be rounded down to the nearest whole number (without any payment in respect of any rounding
down). 

  

	 	(g)	Termination of Employment. The employment of a Participant with the Company shall be deemed to have terminated for all purposes of the Plan if such person is
employed by or provides services to an entity that is a Subsidiary of the Company and such entity ceases to be a Subsidiary of the Company, unless the Committee determines otherwise, including in order to maintain compliance with Section 409A
of the Code. 

  

	26.	Notices. 

  
 All notices to the Parent regarding the Plan shall be in writing, effective as of actual receipt by the Parent, and shall be sent to: 

 
 General Dynamics Corporation 

2941 Fairview Park Drive, Suite 100 
 Falls
Church, Virginia 22042 
 Attention: Corporate Secretary 
  

The Committee may change the address to which notices under the Plan are sent provided such address is communicated to Participants. 

  
 18Employment agreement for Vice President of International Sales and Marketing

 Exhibit 10.20 
 Andrew Lockhart 
 TERMS AND CONDITIONS OF EMPLOYMENT 

Employer’s name and address: Calix, Inc., a Delaware US corporation (the “Company”) 

Employee’s name and address: Andrew Lockhart, 113 Castelnau, London SW13 9EL, England (“you”). 

In terms of the Employment Rights Act 1996 (the “Act”) this document (the “Agreement”) gives details of your terms and
conditions of employment with the Company together with other workplace information, as at February 2, 2011. 
 Company and you agree that
this Agreement shall be assigned to a wholly owned UK subsidiary of Calix, Inc. as soon as such entity is legally incorporated, and that such entity shall be considered the “Company” for purposes of this Agreement from and after the date
of such assignment. 
  

	1.	JOB TITLE AND DUTIES 

  

	1.1	You are employed as Senior Vice President, International Field Operations with effect from the earlier to occur of 90 days following the signature of this Agreement or
an earlier date to be agreed between you and the Company (the “Start Date”), with the following responsibilities: 

 The Senior Vice President, International Field Operations will be responsible for implementing and driving the strategic direction of business growth internationally. This position will be responsible for
identifying and initiating sales efforts, product insertion strategies, building customer relationships and creating detailed account strategies within EMEA, APAC and South America. The position will also be responsible for building and growing the
following organizations internationally: Field Marketing, Sales Operations, Technical Support and Customer Service. 
  

	1.2	You will perform all duties required of you by the Company, commensurate with the job title and description set forth in Clause 1.1 above. 

 

	1.3	Whilst employed by the Company you must: 

  

	 	(a)	during your hours of work devote the whole of your time, attention and abilities to the business of the Company and carry out your duties with due care and attention;

  

	 	(b)	not, without the Company’s prior written consent, be in any way directly or indirectly engaged or concerned with any other business or employment whether during or
outside your hours of work for the Company (provided, however, that you may continue to act as an industry advisor to Telesoft Partners during non-business hours, so long as such activity does not interfere with the performance of your
responsibilities under this Agreement); 

  

	 	(c)	use your best efforts to promote and protect the interests of the Company and observe the utmost good faith towards the Company; and 

 

	 	(d)	comply with all the Company’s rules, regulations and policies from time to time in force and any rules which the Company’s clients may require you to observe
whilst working on their premises. 

  
 1 

	2.	COMMENCEMENT OF EMPLOYMENT 

  

	2.1	Your period of continuous employment with the Company commenced on Start Date. 

 

	2.2	No employment with a previous employer counts as part of your period of continuous employment with the Company. 

 

	3.	REMUNERATION 

  

	3.1	Your gross basic salary is £180,000 per annum (or such other sum as agreed between you and the Company from time to time). The salary will be paid after
deduction of all taxes and national insurance contributions and is payable in equal monthly instalments on or around the last day of each month into your nominated bank account. 

 

	3.2	The Compensation Committee of the Calix, Inc. Board of Directors (“Compensation Committee”) will review your salary on an annual basis based on your
performance and the Company’s performance. 

  

	3.3	You will also be paid a benefits allowance in the total sum necessary to allow you to purchase medical expenses insurance and long term disability insurance. The
benefits allowance will be paid, after deduction of all taxes and national insurance contributions, into your nominated bank account upon the Company’s receipt of documentation of the actual costs to you of such benefits. As and when the
Company, in its discretion, introduces medical expenses insurance and long term disability insurance benefits for its executives based in the UK, you will become eligible for such plans and this benefits allowance will be cease to be payable by the
Company. 

  

	3.4	You will also be eligible to participate in any pension or car allowance schemes that the Company shall, in its discretion, later put in place for UK-based executives.

  

	3.5	You will be eligible for the Calix Executive Change in Control Severance Plan, a copy of which has been provided to you. 

 

	3.6	For the purposes of the Employment Rights Act 1996, sections 13-27, you agree that the Company may deduct from your remuneration any sums due from you to the Company
including, without limitation, your pension contributions (if any) and any overpayments, loans or advances made to you by the Company. 

  

	4.	BONUS 

  

	4.1	You will be eligible to receive an annual bonus and your target annual bonus will be a sum of £58,375. The actual amount of bonus to be paid to you, if any, will
be determined by whether Calix, Inc. has met its annual corporate bonus payout goals. You will not be entitled to receive any payment of bonus unless you are in employment (and have not given or received notice of termination) at the date the bonus
is paid to you. 

  

	4.2	You will also be eligible to participate in the Company’s variable sales compensation program, subject always to the rules of that program, from time to time. As
part of this variable compensation program, your annual target incentive compensation is estimated to be £96,625 based on the achievement of all your objectives for that year. The Compensation Committee will, in its sole discretion, determine
the extent to which you have met your objectives and the amount of any incentive compensation due to you for any particular year. 

  

	4.3	You will be eligible to receive a sign-on bonus of £25,000 at the same time as you receive your first payment of salary from the Company. This sign-on bonus is
subject to applicable income tax and National Insurance contributions deductions. 

  
 2 

	4.4	If you resign or are dismissed for gross misconduct at any time before the first anniversary of the Start Date, you will repay, within 30 days of the termination of
your employment, a sum equal to 1/12th of the sign-on bonus paid by Company multiplied by the number of months, including partial months, between the date of termination of the employment and the first anniversary of the Start Date. (Example –
total bonus, £10,000; start date 1/1/10; termination date 7/1/10; repayment amount £5,000.00 {£10,000÷12 = £833.33 x 6}) 

  

	4.5	The repayment amount calculated in accordance with clause 4.4 may be deducted from any and all amounts due to you from the Company, including, without limitation,
wages, accrued holiday pay, bonuses and variable compensation, and you expressly authorize the Company to effect such deductions. 

  

	5.	STOCK OPTIONS 

  

	5.1	The Company will recommend that the Calix, Inc. Board of Directors grant you an option to purchase 250,000 shares of Calix, Inc. common stock (“Shares”) with
an exercise price equal to the fair market value on the date of the grant, as determined by the Board of Directors. This option will vest during the period that you remain continuously employed by the Company at the rate of 25% of the Shares on the
first anniversary of the date of this Agreement, with the remainder of the Shares vesting monthly thereafter in equal installments over the next 36 months. Vesting will depend on your continued employment with the Company. The grant of the options
is at the sole discretion of the Board of Directors. 

  

	5.2	The stock options will be subject to the terms of the Calix, Inc. 2010 Stock Option Plan as amended from time to time, and any award agreement documenting the grant.

  

	6.	EXPENSES 

 The Company
shall reimburse to you (against receipts or other appropriate evidence as the Company may require) the amount of all out-of-pocket expenses reasonably and properly incurred by you in the proper performance of your duties hereunder in accordance with
the Company’s expenses policy in force from time to time. 
  

	7.	NORMAL HOURS OF WORK 

  

	7.1	Your normal hours of work are 9am to 5.30pm Monday to Friday inclusive with one hour break for lunch each day. 

 

	7.2	You may from time to time be required to work additional hours in order to properly perform your duties and/or allow the Company to meet its obligations to its clients.
You are not entitled to additional remuneration for hours worked in excess of your normal hours. 

  

	7.3	In particular, you agree to work hours that exceed the maximum average weekly working time limit of 48 hours imposed by the Working Time Regulations 1998. You may
withdraw your agreement on giving to the Company one month’s prior written notice. 

  

	8.	PLACE OF WORK 

  

	8.1	Your normal place of work will be in a location in greater London to be agreed between you and the Company, but the Company may change your normal place of work on
giving you at least one month’s notice of any permanent change to your normal place of work. Provided, however, that the Company shall not, without your agreement, change your normal place of work to a location outside of a 50 mile radius of
the place of work stated above. 

  

	8.2	You may be required to work at any of the Company’s premises or at the premises of its customers, clients, suppliers or associates wherever in the world from time
to time. 

  
 3 

	8.3	You may be required to work overseas for periods exceeding one month, however there are currently no particulars to be entered in this regard. 

 

	9.	NOTICE 

  

	9.1	The length of prior written notice that you must give the Company in order to terminate your employment is 3 months. 

 

	9.2	The Company must give you 3 months notice to terminate your employment 

  

	9.3	If you are dismissed for gross misconduct, you will receive no notice. 

  

	9.4	The Company may, at its absolute discretion, require you not to attend at work and/or not to undertake all or any of your duties hereunder during any period of notice
(whether given by the Company or you), provided always that the Company shall continue to pay your salary and those benefits set out in Clause 3.3. For the avoidance of doubt, there is no obligation on the Company to provide you with any work during
any period of notice and you will not be entitled to work on your own account or on account of any other person, firm or company during that period. 

  

	10.	NORMAL RETIREMENT AGE 

The Company’s normal retirement age for men and women is 65. However, the Company will duly consider any request by the Employee to
work beyond that age in accordance with the Employment Equality (Age) Regulations 2006. 
  

	11.	HOLIDAYS AND HOLIDAY PAY 

  

	11.1	You are entitled, in addition to all public and bank holidays recognised in England, to 25 working days paid holiday in each holiday year. 

 

	11.2	The Company’s holiday year runs from 1st January to 31st December. 

  

	11.3	If your employment begins or ends part way through the holiday year your holiday entitlement for that year will be assessed on a pro rata basis.

  

	11.4	On termination of your employment you will be entitled to pay in lieu of any holidays which have accrued to you in the holiday year in which the termination takes place
but which you have not taken at that time. The Company may require you to take unused holidays during your notice period. If on the termination of your employment, you have taken holidays in excess of the statutory holiday entitlement which has
accrued to you at that time you will be required to repay to the Company holiday pay in respect of those holidays. 

  

	11.5	Holidays must be taken at times agreed by the Company and sufficient notice of a request to take holiday must be given to the Company. 

 

	11.6	All holidays must be taken in the holiday year in which they accrue and cannot be carried over to the next holiday year without the prior consent of the Company.

  

	12.	SICKNESS OR OTHER ABSENCE 

  

	12.1	If you are absent from work for any reason and your absence has not previously been authorised by the Company you must inform the Company by 9am on your first day of
absence. 

  

	12.2	 In respect of absence due to sickness, injury or accident that continues for more than 7 consecutive days (including weekends) you must provide the
Company with a fit note from a 

  
 4 

	 	
doctor or registered medical practitioner stating the reason for the absence. Thereafter fit notes must be provided to the Company to cover the remainder of the period of continuing sickness
absence. Failure to follow these requirements may result in disciplinary action and loss of Statutory Sick Pay. 

  

	12.3	If you are absent from work due to sickness, injury or accident and comply with the requirements in this Clause you will be paid, subject to the provision of a fit note
from a registered medical practitioner: 

  

	 	(a)	Your full basic salary and benefits for the first eight weeks of sickness absence; and 

 

	 	(b)	Statutory Sick Pay in accordance with the provisions of the applicable legislation for any further sickness absence in any twelve-month period.

 For the purposes of Statutory Sick Pay, the “qualifying days” are Monday to Friday inclusive.

  

	12.4	Payment of any salary for the first eight weeks of sickness absence made in accordance with Clause 12.3(a) above, if applicable, shall be made less an amount equivalent
to any Statutory Sick Pay payable to you. 

  

	12.5	The Company reserves the right to require you to undergo a medical examination conducted by a doctor nominated by the Company, at the Company’s expense.

  

	12.6	If the sickness, injury or accident is caused by the act or omission of a third party you must, at the Company’s request, include in any claim for damages against
such third party a claim in respect of moneys paid by the Company under this Clause 12 and must refund to the Company any damages recovered under that head. 

 

	13.	PENSION 

  

	13.1	The Company does not operate a pension scheme applicable to your employment. You will be eligible to participate in a pension scheme if the Company establishes a
pension scheme in the future. 

  

	13.2	In the event that you make documented contributions to a private pension or retirement savings scheme, the Company will pay matching annual contributions into such
private pension or retirement scheme in the amount of 40% of your annual contributions, to a maximum annual contribution by the Company of 6% of the gross basic salary set forth in Clause 3.1 above. 

 

	14.	CONFIDENTIALITY 

 You must
not (except in the proper performance of your duties) while employed by the Company or at any time (without limit) after the date on which your employment with the Company terminates: 

 

	 	(a)	divulge or communicate to any person; 

  

	 	(b)	use for your own purposes or for any purposes other than those of the Company or, as appropriate, any of its clients; or 

 

	 	(c)	through any failure to exercise due care and diligence, cause any unauthorised disclosure of; 

any trade secrets or confidential information relating to the Company, or of Calix, Inc., a Delaware, US corporation, or any of its direct
or indirect subsidiaries or affiliates (collectively each a “Calix Company”), or any clients of any Calix Company. You must at all times use 

  
 5 

 
your best endeavours to prevent publication or disclosure of any trade secrets or confidential information. These restrictions shall cease to apply to any information which shall become available
to the public generally otherwise than through the default by you. 
  

	15.	INVENTIONS AND OTHER WORKS 

  

	15.1	For the purposes of this Clause, “Intellectual Property Rights” means any and all existing and future intellectual or industrial property rights (whether
registered or unregistered) including but not limited to all existing and future patents, copyrights, design rights, database rights, trade marks, semi-conductor topography rights, plant varieties rights, internet rights/domain names, know-how,
confidential information and any and all applications for any of the foregoing and any and all rights to apply for any of the foregoing. 

  

	15.2	During your employment with the Company, you may either alone or in conjunction with others, generate or assist in the generation of documents, materials, designs,
drawings, processes, formulae, computer coding, methodologies, confidential information and other works which relate to the business of the Company or any Calix Company or which are capable of being used or adapted for use therein or in connection
therewith (“Works”) and you agree that in respect of any such Works and all Intellectual Property Rights in relation thereto, you are obliged to further the interests of the Company and any Calix Company. 

 

	15.3	You must immediately disclose to the Company all Works and all related Intellectual Property Rights. Both the Works and the related Intellectual Property Rights will
(subject to sections 39 to 43 Patents Act 1977) belong to and be the absolute property of the Company or any other person the Company may nominate. 

  

	15.4	You shall immediately on request by the Company (whether during or after the termination of your employment) and at the expense of the Company:

  

	 	(a)	apply or join with the Company in applying for any Intellectual Property Rights or other protection or registration (“Protection”) in the United
Kingdom and in any other part of the world for, or in relation to, any Works; 

  

	 	(b)	execute all instruments and do all things necessary for vesting the Works or Protection when obtained and all right, title and interest to and in the same absolutely
and as sole beneficial owner in the Company or other person as the Company may nominate; and 

  

	 	(c)	sign and execute any documents and do any acts reasonably required by the Company in connection with any proceedings in respect of any applications and any publication
or application for revocation of any Protection, 

  

	15.5	You hereby irrevocably and unconditionally waive all rights under Chapter IV Copyright, Designs and Patents Act 1988 and any other moral rights which you may have in
any Works in whatever parts of the world such rights may be enforceable including: 

  

	 	(a)	the right conferred by section 77 of that Act to be identified as the author of any such Works; and 

 

	 	(b)	the right conferred by section 80 of that Act not to have any such Works subjected to derogatory treatment. 

 

	15.6	You hereby irrevocably appoint the Company to be your attorney and in your name and on your behalf to execute any such act and to sign all deeds and documents and
generally to use your name for the purpose of giving to the Company the full benefit of this Clause. You agree that, with respect to any third parties, a certificate signed by any duly authorised officer of the Company that any act or deed or
document falls within the authority hereby conferred shall be conclusive evidence that this is the case. 

  
 6 

	15.7	Nothing in this Clause shall be construed as restricting your rights or those of the Company under sections 39 to 43 Patents Act 1977. 

 

	15.8	You agree that, in addition to this clause, you will, if requested by the Company, sign up to any standard policies in relation to any Works implemented by the Company
from time to time. 

  

	16.	DATA PROTECTION 

 By
signing this Agreement, you acknowledge and agree that the Company and any other Calix company is permitted to hold and process personal (and sensitive) information and data about you as part of its personnel and other business records; and may use
such information in the course of the Company’s business. You agree that the Company and any other Calix company may disclose such information to third parties; including where they are situated outside the European Economic Area, in the event
that such disclosure is in the Company’s view required for the proper conduct of the Company’s business or that of any associated company. This Clause applies to information held, used or disclosed in any medium. 

 

	17.	RESTRICTIONS 

  

	17.1	 In the course of your employment you will be exposed to confidential information and will acquire other proprietary knowledge relating to the
Company’s and other Calix companies’ current and planned operations. Therefores subject to the terms of Clause 17.2, you will not during the period of your employment with the Company and for a period of six months after the termination of your employment, either directly, or
indirectly through any other person, firm or other organisation: 

  

	 	(a)	solicit, entice or induce any person, firm or other organisation which at any time during the last year of your employment with the Company was a supplier of the
Company or a Calix Company (and with whom you were actively involved during that time) to reduce the level of business between the supplier and the Company or the Calix Company and you will not approach any supplier for that purpose or authorise or
approve the taking of such actions by any other person; 

  

	 	(b)	solicit business which is of the same or similar nature as the business with which you were involved at any time during the last year of your employment with the
Company (such business referred to as the “Business”) from any person, firm or other organisation which at any time during the last year of your employment with the Company was a customer or client of the Company or a Calix Company
(and with whom you were actively involved during that time) and you will not approach any client or customer for that purpose or authorise or approve the taking of such actions by any other person. For the purposes of this restriction, the
expression customer or client shall include all persons from whom the Company or a Calix Company has received inquiries for the provision of goods or services where such inquiries have not been concluded; 

 

	 	(c)	employ or engage or otherwise solicit, entice or induce any person who, during the last year of your employment with the Company, was an employee or contractor of the
Company or a Calix Company who has a function that is not purely administrative to become employed or engaged by you or any other person, firm or other organisation and you will not approach any such employee for such purpose or authorise or approve
the taking of such actions by any other person; and 

  

	 	(d)	be employed or engaged or otherwise interested in a business which is the same as or similar to the Business. 

  
 7 

	17.2	The restrictions contained in Clauses 17.117.1(a)to 17.1(d) will not apply if: 

 

	 	(a)	you have received the prior written consent of the Company to your activities; or 

 

	 	(b)	you will not be in competition with the Business in carrying out those activities. 

 

	17.3	If the Company suspends any of your duties under Clause 9.4 during any period after notice of termination has been given by the Company or you, the aggregate of the
period of the suspension and the period after the end of your employment with the Company during which the restrictions in this Clause 17 shall apply shall not exceed six months and, if the aggregate of the two periods would exceed six months, the
period after the end of your employment during which the restrictions shall apply shall be reduced accordingly. 

  

	17.4	The restrictions in this Clause 17 are separate and severable restrictions and are considered by the parties to be reasonable in all the circumstances. It is agreed
that if any such restrictions by themselves, or taken together, shall be adjudged to go beyond what is reasonable in all the circumstances for the protection of the legitimate interests of the Company but would be adjudged reasonable if part or
parts of the wording were deleted, the relevant restriction or restrictions shall apply with such deletion(s) as may be necessary to make it or them valid and effective. 

 

	18.	COMPANY AND CLIENT PROPERTY 

 All equipment (including computer equipment), notes, memoranda, records, lists of customers, suppliers and employees, correspondence, computer and other discs or tapes, data listings, codes, keys and
passwords, designs, drawings and other documents or material whatsoever (whether made or created by you or otherwise and in whatever medium or format) relating to the business of the Company or a Calix Company or any of its or their clients (and any
copies of the same) shall: 
  

	 	(a)	be and remain the property of the Company or the relevant client; and 

  

	 	(b)	be handed over by you to the Company on demand and in any event on the termination of your employment. 

 

	19.	GRIEVANCE AND DISCIPLINARY MATTERS 

  

	19.1	If you have any grievance relating to your employment you may apply in writing to any director of the Company. 

 

	19.2	The director will consider your grievance and report to you within 7 days of the date when the grievance was raised. 

 

	19.3	If that report is not acceptable to you, you may then, within 7 days of receipt by you of the report, refer the matter in writing to the Chief Operating Officer of
Calix, Inc., who will notify you of their decision within 14 days and whose decision will be final and binding. 

  

	19.4	There are no special disciplinary rules which apply to you and any disciplinary matters affecting you will be dealt with by the Board of Directors of the Company.

  

	19.5	If you are dissatisfied with any decision of the Company regarding any disciplinary matter, you may apply in writing to the Chief Operating Officer of Calix, Inc.
within 5 days of the decision to have that decision re-considered. 

  
 8 

	19.6	The grievance, disciplinary and appeals procedures are not contractually binding on the Company and the Company may alter them, or omit any or all of their stages where
it considers it appropriate. 

  

	20.	COLLECTIVE AGREEMENTS 

There are no collective agreements applicable to you or which affect your terms of employment. 

 

	21.	CHANGES TO TERMS OF EMPLOYMENT 

  

	21.1	The Company reserves the right to make reasonable changes to any of your terms and conditions of employment that are not likely to have a material adverse impact upon
you. 

  

	21.2	You will be given not less than one month’s written notice of any significant changes that may be given by way of an individual notice. Such changes will be deemed
to be accepted unless you notify the Company of any objection in writing before the expiry of the notice period. 

  

	22.	PREVIOUS CONTRACTS 

 The
contractual terms in this Agreement shall be in substitution for all or any existing contracts of employment entered into between you and the Company which cease to have effect on the date upon which you commence work under this Agreement.

  

	23.	WORK PERMITS 

 It is a
condition precedent to your employment with the Company that you are legally entitled to reside and work in the United Kingdom. You confirm that you are legally entitled to work in the United Kingdom without holding a work permit. Should it be
discovered that you do not have permission to live and work in the United Kingdom or if any such permission is revoked, the Company reserves the right to terminate your employment forthwith without notice or pay in lieu of notice and without
referring to the warning stages of the Company’s disciplinary procedure. 
  

	24.	PRIVACY OF COMMUNICATION 

  

	24.1	All communications, whether by telephone, email, fax, or any other means, which are transmitted, undertaken or received using the Company’s IT or communications
systems (“Company Systems”) or on Company premises will be treated by the Company as work related. The Company Systems are provided for your work use only. You agree that the Company may intercept, record and monitor all
communications made by you and your use of the Company Systems without further notice. You should not regard any communications or use as being private. 

  

	24.2	The interception, recording and monitoring of communications is intended to protect the Company’s business interests for example, for the purposes of quality
control, security of the Company Systems, protection of the Company’s confidential information and legitimate business interests, record-keeping and evidential requirements, detection and prevention of criminal activity or misconduct and to
assist the Company to comply with relevant legal requirements. 

  

	24.3	You acknowledge and agree that all communications, data, records and files stored on the Company Systems or on the Company’s premises may be used as evidence in
disciplinary or legal proceedings against you. 

  
 9 

	25.	GOVERNING LAW AND JURISDICTION 

 This Agreement is governed by and to be construed in accordance with English law and any dispute is subject to the non-exclusive jurisdiction of the English courts. 

IN WITNESS of which this Agreement has been executed and delivered as a deed on the first date written above. 

 

					
	EXECUTED as a Deed	 		 	 /s/ Carl Russo

	by Calix, Inc.	 		 	Director
	 acting by Carl Russo
  

and Kelyn Brannon
	 		 	 /s/ Kelyn Brannon

		 		 	Director/Secretary

  

					
	 EXECUTED as a Deed
 by Andrew
Lockhart
 in the presence of:
	 		 	 /s/ Andrew Lockhart

			
	Witness’s	 		 	
	Signature:	 		 	 /s/ Daua Cockhart

	Full Name:	 		 	DAUA COCKHART
	Address:	 		 	M3, Castelnau, SW13 9EL
		 		 	London.

  
 10

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