Document:

Exhibit 10.1

CH2M HILL Companies, Ltd.

 

Amended and Restated

Executive Officers Long Term Incentive Plan

 

Amended and Restated on May 8, 2008

 

 to be Effective as of January 1,
2005

 

 

CH2M HILL Companies, Ltd.

Executive Officers Long Term Incentive Plan

 

ARTICLE I

INTRODUCTION

 

1.1                                 Establishment.  CH2M HILL Companies, Ltd., an Oregon
corporation, hereby amends and restates the CH2M HILL Companies, Ltd. Executive
Officers Long Term Incentive Plan to award incentive compensation to eligible
Participants.

 

1.2                                 Purposes.  The purposes of the Plan are to:

 

·                  Reward a
limited group of Executive Officers for the creation of value in the
organization through the achievement of established goals such as sustained
increases in CH2M HILL’s Available Funds, share price appreciation and other
established financial and strategic goals; and

 

·                  Provide
financial incentives to Plan Participants to incentivize their contribution to
the annual and long-term financial performance of CH2M HILL, thereby increasing
shareholder value; and

 

·                  Provide Plan
Participants an opportunity to earn market-competitive compensation and to
enable CH2M HILL to motivate and retain its senior Executive Officers.

 

ARTICLE II

DEFINITIONS

 

2.1                                 Affiliate
means any corporation or other entity that is affiliated with CH2M HILL
through stock or other equity ownership or otherwise which is designated by
either the Committee or the Board as an entity whose eligible Executive
Officers may be selected to participate in the Plan.  The Committee may select an entity to be
designated as an Affiliate if LTD owns directly or indirectly at least 50% of
the entity.  The Board, in its sole
discretion, may select an entity to be designated as an Affiliate if LTD owns
directly or indirectly at least 10% of the entity.

 

2.2                                 Available
Funds means those LTD level consolidated funds remaining
from gross revenue after all normally accrued operating expenses are deducted
(including LTD expenses and any Profit Center operating costs for units in a
startup or investing mode), but prior to accruals for incentive compensation
programs, retained earnings and income taxes.

 

2.3                                 Award  means a
pre-established, performance-based grant payable in Stock Instruments and/or
cash under the Plan, which is intended to satisfy the performance-based goal
requirements of Code § 162(m).

 

2.4                                 Board  means the LTD
Board of Directors.

 

2.5                                 CEO
means Chief Executive Officer of CH2M HILL Companies, Ltd.

 

 

2.6                                 CH2M
HILL means CH2M HILL family of companies, which includes CH2M
HILL Companies, Ltd., and, when appropriate, the Affiliates.

 

2.7                                 Change of Control.  For purposes of the Plan, a Change of Control
will occur if any one of the following events occurs:

 

a.                                      Any one person, or more than one person acting as a group, acquires
ownership of stock of CH2M HILL Companies, Ltd. that, together with stock held
by such person or group, constitutes more than 50% of the total Fair Market
Value of CH2M HILL Companies, Ltd. stock. 
If any one person or more than one person acting as a group, however,
owns more than 50% of the total Fair Market Value of CH2M HILL Companies, Ltd.
stock, the acquisition of additional stock by the same person or persons is not
considered to cause a change in the ownership of CH2M HILL Companies, Ltd. (or
to cause a change in the effective control of CH2M HILL Companies, Ltd.).

 

b.                                     There is a change in the effective control of CH2M HILL Companies,
Ltd.  A change in the effective control
of CH2M HILL Companies, Ltd. occurs on the date that either:

 

(i)                                     any one person, or more than one person acting as a group, acquires (or
has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of CH2M HILL
Companies, Ltd. that represents 30% or more of the total voting power of CH2M
HILL Companies, Ltd. stock; or

 

(ii)                                  a majority of members of the Board is replaced during any 12-month period
by directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of the appointment or election.

 

c.                                       Any one person, or more than one person acting as a group, acquires
ownership of all or substantially all of the assets of CH2M HILL Companies,
Ltd.

 

d.                                      The stockholders of CH2M HILL Companies, Ltd. approve a plan of
liquidation or dissolution of CH2M HILL Companies, Ltd. and such transaction is
consummated.

 

For
purposes of the definition in this Section 2.7 Persons
Acting as a Group means  persons
will not be considered to be acting as a group solely because they purchased
stock of LTD at the same time, or as a result of the same public offering.
However, persons will be considered to be acting as a group if they are owners
of a corporation that enters into a merger, consolidation, purchase or
acquisition of stock, or similar business transaction with the corporation. If
a person, including an entity, owns stock in both corporations that enter into
a merger, consolidation, purchase or acquisition of stock, or similar
transaction, such shareholder is considered to be acting 

 

 

as
a group with other shareholders in a corporation prior to the transaction
giving rise to the change and not with respect to the ownership interest in the
other corporation.

 

For
the avoidance of doubt, this Section shall be interpreted in accordance
with Treasury guidance for the definition of Change in Control under Code §
409A.

 

2.8                                 Code
means the Internal Revenue Code of 1986, as amended.

 

2.9                                 Committee means a
committee appointed by the Board consisting solely of two or more outside
directors (within the meaning of Code § 162(m)(4)(C)(i)) empowered to take
actions with respect to the administration of the Plan as described in Article V.

 

2.10                           Competitor means any  corporation or other entity that is engaged in any business
in which CH2M HILL is actively engaged, as described in the CH2M HILL’s most
recent (at the relevant time) Annual Report on Form 10-K, filed with the
United States Securities and Exchange Commission; and/or any business the entry
into which is contemplated by CH2M HILL at the time the Participant separates
from service.

 

2.11                           “Disabled” or “Disability”
shall mean that the participant either

 

a.                                       Is unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, or

 

b.                                      Is, by reason
of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months, receiving income replacement benefits for a period
of not less than 3 months under an accident and health plan covering employees
of the participant’s employer.

 

For
the avoidance of doubt, this Section shall be interpreted in accordance
with Treasury guidance for the definition of Disability under Code § 409A.

 

2.12                           Effective
Date means the effective date of the Plan, which is January 1,
2005.

 

2.13                           Executive
Officer means each of members of the CH2M HILL executive
leadership team, including the CEO and any employee who is an officer of LTD
and whose total compensation for the taxable year is required to be reported to
shareholders under the Securities Exchange Act of 1934 because the employee is
one of the four highest compensated officers for the taxable year (other than
the CEO).

 

2.14                           Fair
Market Value means the value of CH2M HILL, denominated in United
States dollars, as determined by the Board in a manner that is not inconsistent
with Code § 409A.

 

2.15                           Full
Service Revenue means revenue generated by CH2M HILL from work
outside CH2M HILL’s traditional consulting engineering business, primarily
integrated project delivery (design/build), operations and maintenance
(O&M), remediation, and construction work.

 

 

2.16                         Global
Revenue means revenue generated by CH2M HILL from clients
located and work performed outside the North American continent.

 

2.17                         LTD
means CH2M HILL Companies, Ltd.

 

2.18                         Participant means a
current or former Executive Officer designated to be eligible to receive an
Award under the Plan as provided in Section 3.1.

 

2.19                         “Performance-Based Compensation” means compensation the entitlement to or amount of which is contingent
on the satisfaction of pre-established organizational or individual performance
criteria relating to a performance period of at least 12 consecutive months, as
determined by the Committee in accordance with the Treasury Regulations.

 

2.20                         Plan means the CH2M
HILL Companies, Ltd. Executive Officers Long Term Incentive Plan.

 

2.21                         Profit
Center means any applicable operating unit of CH2M HILL,
including but not limited to the holding company of CH2M HILL family of
companies, LTD, and its subsidiary business units as designated from time to
time by the Committee.

 

2.22                         Program means each one-year,
two-year, or three-year Plan cycle.

 

2.23                         Program
Period means (a) a period beginning on January 1st
of each calendar year and ending 36 months thereafter (e.g., January 1,
2003 through December 31, 2005) for a three-year Program, (b) a
period beginning on January 1st of each calendar year and ending 24 months
thereafter (e.g., January 1, 2003 through December 31, 2004) for a
two-year Program, and (c) a period beginning on January 1st of each
calendar year and ending 12 months thereafter (e.g., January 1, 2003
through December 31, 2003) for a one-year Program.  Each Award shall state the Program Period to
which it applies.

 

2.24                         Stock
Instruments means the following instruments:

 

a.                                       Stock for CH2M
HILL Employees residing in the United States,

 

b.                                      Stock, Phantom
Stock, or International SVEUs (depending on instruments approved for
distribution in the country of residency of the employee) for International
Employees, or

 

c.                                       Other
instruments approved from time to time by the Board to use for incentive and
compensation purposes.

 

For
purposes of these definitions:

 

·                  Stock means one
share of CH2M HILL common stock.

 

·                  International
SVEU means one unit held in trust under the CH2M HILL
Companies, Ltd.  International Deferred
Compensation Plan.

 

 

·                  Phantom
Stock means a hypothetical interest in the value of one
share, denominated in United States dollars, which is granted pursuant to the
CH2M HILL Companies, Ltd. Phantom Stock Plan.

 

·                  International  Employees
means those employees who work for CH2M HILL and are not resident in
the United States and whose regular workplace is outside of the United States,
determined as of the time of the Award payout, except that International
Employees shall exclude an individual who is a United States citizen employed
by an Affiliate organized in the United States, regardless of where the
individual performs services.

 

2.24                           Target
Bonus means the bonus amount established by the Committee
under the Plan for Participants.

 

ARTICLE III

ELIGIBILITY

 

3.1                                 Eligibility
for Plan Participation. 
The Committee, in its sole discretion, shall determine which Executive
Officers shall be eligible to participate in the Plan for any Program Period.

 

3.2                                 No
Entitlement.  Eligibility to participate in the Plan in any
one Program Period does not create any entitlement to participate in any other
Program Period.

 

ARTICLE IV

AWARDS

 

4.1                                 Award.  Within 90 days of the beginning of each
Program Period, as required by the Code, the Committee in its sole discretion
shall establish performance goals and Awards and notify Participants in
writing. The Award notification shall include the length of the Program Period,
a Participant’s Target Bonus for the Program Period, and one or more of the
following performance goals:

 

a.                                       Available
Funds target to be achieved during the Program Period. The Committee, in its
sole discretion, shall establish the Available Funds target for each Award. The
Available Funds target may be identical for all Participants in a given Program
Period.

 

b.                                      Full
Service Revenue target to be achieved during the Program Period.
The Committee, in its sole discretion, shall establish the Full Service Revenue
target for each Award. The Full Service Revenue target may be identical for all
Participants in a given Program Period.

 

c.                                       Global
Revenue target to be achieved during the Program Period. The Committee, in its
sole discretion, shall establish the Global Revenue target for each Award. The
Global Revenue target may be identical for all Participants in a given Program
Period.

 

 

d.                                      Gross
Margin Ratio target to be achieved during the Program
Period.  The Committee, in its sole
discretion, shall establish the Gross Margin ratio target for each Award.  The Gross Margin Ratio target may be
identical for all Participants in a given Program Period.

 

e.                                       Stock
Price Appreciation target to be achieved during the Program
Period.  The Committee, in its sole
discretion, shall establish the Stock Price Appreciation target for each Award.
The Stock Price Appreciation target may be identical for all Participants in a
given Program Period.

 

f.                                         Return
On Equity target to be achieved during the Program Period.
The Committee, in its sole discretion, shall establish the Return on Equity
target for each Award. The Return on Equity target may be identical for all Participants
in a given Program Period.

 

g.                                      Backlog target to be
achieved during the Program Period. The Committee, in its sole discretion,
shall establish the Backlog target for each Award. The Backlog target may be
identical for all Participants in a given Program Period.

 

The
cumulative effect of all these target factors and modifiers will generally not
exceed two times Target Bonus as determined by the Committee, but will be
within the discretion of the Committee to determine subject to provisions of
Sec. 4.2 and 4.3 below with respect to compliance with the requirements of Code
§ 162(m).

 

4.2                                 Code
§ 162(m) Compliance. 
CH2M HILL intends that the Awards will satisfy the Performance-Based
Compensation requirements of Code § 162(m) so that CH2M HILL may deduct
any compensation paid under the Plan for federal income tax purposes without
limitation under Code § 162(m).  If any
provision of this Plan or any Award would otherwise frustrate or conflict with
such intent, that provision, to the extent possible, shall be interpreted and
deemed amended so as to avoid such conflict.

 

4.3                                 Award
Determination Process.  As
soon as practicable after the end of each Program Period, but no later than December 31st
of the calendar year following the end of the Program Period, the Committee
shall compare actual performance results against performance targets achieved
during the Program Period and determine whether and to the extent the
Participant actually achieved his/her performance goals for the Program Period.
The amount payable under the Plan to a Participant, who has actually achieved
his/her performance goals for a Program Period, shall be determined by the
Committee in its sole discretion. All determinations by the Committee shall be
made in the Committee’s sole discretion and shall be final and binding on all
Participants.  The Participant shall not
be entitled to any compensation under the terms of the Award until the
Committee certifies in writing that the Participant has met his/her specific
performance goals and determines the amount of compensation payable under the
Award.  Award provisions shall not be
modified or amended, however, if the modification or amendment would cause
compensation payable pursuant to such Award to fail to constitute qualified
Performance-Based Compensation under Code § 162(m).

 

 

4.4                                 Maximum
Award Amount.  Maximum Award
payout for each Participant for any Program Period, shall not exceed
$10,000,000 for that Program Period and may be adjusted to a lesser amount in
the discretion of the Committee. The maximum payout for all Participants for
any Program Period shall not exceed $45,000,000.

 

4.5                                 Payouts
of Awards.  The payment of Awards will be made as soon as
practicable after the end of the Program Period when the Committee has
determined Award payout amounts but no later than two and a half months
following the end of the Program Period. Except as provided in Article VII,
a Participant must be employed by CH2M HILL or an Affiliate as of the Award
payout date to be eligible for the payout, but does not need to be a current
Executive Officer for the entire Program Period or at the date of payment.  Unless otherwise determined by the Committee
in its sole discretion, all Awards will be paid 40% in cash and 60% in Stock
Instruments based on Participant’s eligibility to hold specific Stock
Instruments.  To the extent an Award
payout results in a Participant exceeding CH2M HILL ownership limitations
pursuant to CH2M HILL’s Articles of Incorporation and Bylaws, the Award shall
be paid out in cash.

 

4.6                                 Code
§ 409A Compliance.  CH2M HILL
intends that the Awards will satisfy the Performance-Based Compensation
requirements of Code § 409A.

 

4.7                                 Non-Transferability
of Awards.  No Award
shall be assignable or transferable.

 

4.8                                 Restrictions
on Transfers of Instruments. 
All Stock Instruments transferred to a Participant in accordance with
the Plan will be subject to the terms, conditions, and restrictions on CH2M
HILL Stock set forth in CH2M HILL’s Articles of Incorporation and Bylaws, as
amended from time to time, including:  (i) restrictions
that grant CH2M HILL the right to repurchase shares upon termination of the
shareholder’s affiliation with CH2M HILL; (ii) restrictions that grant
CH2M HILL a right of first refusal if the shareholder wishes to sell shares
other than in the Internal Market; and (iii) restrictions that require the
approval of CH2M HILL for any other sale of shares.

 

4.9                                 Withholding
Requirement.  All Awards are
subject to withholding of all taxes, government mandated social benefit
contributions, or other payments required to be withheld which are applicable
to the Participants.

 

ARTICLE V

 

5.1                                 Committee.  The Plan shall be administered
by the Committee appointed by the Board. 
The Committee shall at all times consist solely of outside directors
(within the meaning of Code § 162(m)(4)(C)(i)) and shall at all times have at
least two members.  The Board may from
time to time remove members from or add members to the Committee, and vacancies
on the Committee shall be filled by the Board. Members of the Committee may
resign at any time upon written notice to the Board.

 

5.2                                 Committee
Meetings and Actions.  The
Committee shall hold meetings at such times and places as it may
determine.  A majority of the members of
the Committee shall constitute a quorum, and the acts of the majority of the
members present at a meeting or a consent in writing signed by all members of
the Committee shall be the acts of the Committee and shall be final, binding
and conclusive upon all persons, including CH2M HILL, its shareholders, and all
persons having any interest in Awards which may be or have been granted
pursuant to the Plan. The 

 

 

Chairman of the Committee, in his or her sole discretion,
may delegate any or all of the responsibilities of the Committee to one or more
Committee members, whose actions shall be deemed to be the acts of all of the
members.

 

5.3                                 Powers of
Committee. 
Except as otherwise provided elsewhere in this plan
document, the Committee shall, in its sole discretion, determine the time at
which Awards are to be made and paid-out, actual performance against targets
for purposes of Award payout calculations, specific weighing of the components
of Award payout calculations, and establish such other terms under the Plan as
the Committee may deem necessary or desirable and consistent with the terms of
the Plan. Except as otherwise provided elsewhere in this plan document, the
Committee shall have the full and exclusive right to grant and determine terms
and conditions of all Awards granted under the Plan. The Committee shall
determine the form or forms of agreements with Participants that shall evidence
the particular provisions, terms, and conditions, which need not be identical
except as may be provided in the Plan. The Committee may from time to time adopt
such rules and regulations for carrying out the purposes of the Plan as it
may deem proper and in the best interests of CH2M HILL.

 

5.4                                 Interpretation
of Plan.  The determination of the Committee as to any
disputed question arising under the Plan, including questions of construction
and interpretation, shall be final, binding and conclusive upon all persons,
including CH2M HILL, its shareholders, and all persons having any interest in
Stock Instruments which may be or have been granted pursuant to the Plan.

 

5.5                                 Limitation of Liability and
Indemnification.

 

a.                                       No member of
the Committee shall be liable for any action or determination made in good
faith.

 

b.                                      Each person who
is or shall have been a member of the Committee or of the Board shall be
indemnified and held harmless by CH2M HILL Companies, Ltd. against and from any
loss, cost, liability or expense that may be imposed upon or reasonably
incurred in connection with or resulting from any claim, action, suit or
proceeding to which such person may be a party or in which such person may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid in settlement thereof, with CH2M HILL’s
approval, or paid in satisfaction of a judgment in any such action, suit or
proceeding against him, provided such person shall give CH2M HILL an
opportunity, at its own expense, to handle and defend the same before
undertaking to handle and defend it on such person’s own behalf.

 

ARTICLE VI

CHANGE IN CONTROL

 

Notwithstanding
any requirements contained in this Plan or any Award grant, all outstanding
Awards shall become immediately payable at two times the Target Bonus in cash
upon the occurrence of a Change in Control event, and shall be paid to
Participants no later than 

 

 

the
December 31st of the calendar year in which the Change in Control
occurred, or the first date it is administratively feasible to make the
payment, if later.

 

ARTICLE VII

TERMINATION OF AFFILIATION

 

7.1                                 Retirement.   If a Participant separates
from service,   within the meaning of
Code § 409A, (retires) after attainment of age 55 while holding Plan Awards,
and provided that subsequent to such separation from service he/she does not
affiliate with a Competitor (directly or indirectly as an employee, consultant,
director, officer, or shareholder of more than 5% of equity), the Participant
shall be entitled to the payouts of all outstanding Awards.  Notwithstanding the foregoing, the payouts
will be prorated to the actual period that the Participant actually worked for
CH2M HILL in the year when the Award was made, if the Participant did not work
for that entire year. The payout(s) will be made at the time each
outstanding Award payout is due for each Program.  It will be made 100% in cash and will be calculated prorata for the time that the
Participant actually participated in each Program, based on the actual
CH2M HILL Available Funds and/or other performance goals as of the end of each
relevant Program Period.

 

7.2                                 Death.  If a Participant dies while
employed by CH2M HILL, payouts of all his/her outstanding Awards will be made
prorata to the actual period worked for CH2M HILL during the first year of each
outstanding Award Program to the personal representative of the Participant’s
estate or the designated beneficiary or other person or persons who shall have
acquired entitlement to earned benefits under the Plan by bequest or
inheritance (hereafter, “Beneficiary”) as provided in Section 4.5 of the
Plan. Such payout will be made 100% in cash and will be calculated prorata for
the time that the Participant actually participated in each Program, based on
hypothetical Available Funds and other performance goal levels for the not yet
completed Program Periods, derived by assuming that Available Funds and other
performance goals through the end of each Program Period for each outstanding
Award, would be proportionate to the performance as of the time of death,
including consideration of projected performance in out-years where
appropriate.  The Committee’s
determination with respect to payout amounts based on the above criteria shall
be final and binding on the Beneficiary.

 

7.3                                 Disability.  Upon the Participant’s
separation from service, within the meaning of Code § 409A, with CH2M HILL by
reason of Disability, payouts of the Participant’s prorata share of all his/her
outstanding Awards (based on the actual period worked for CH2M HILL during the
first year of each outstanding Award Program) shall be made to the Participant
as provided in Section 4.5 of this Plan. Such payout will be made 100% in
cash and will be calculated prorata for the time that the Participant actually
participated in each Program, based on hypothetical Available Funds and other
performance goal levels for the not yet completed Program Periods, derived by
assuming that Available Funds and other performance goals through the end of
each Program Period for each outstanding Award, would be proportionate to the
performance as of the time of termination, including consideration of projected
performance in out-years where appropriate. The Committee’s determination with
respect to payout amounts based on the above criteria shall be final and
binding on the Participant.

 

7.4                                 Other
Termination. 
Upon the Participant’s voluntary or involuntary separation from service
(within the meaning of Code § 409A) with CH2M HILL (except as otherwise 

 

 

provided in Article VI or in Sections 7.1, 7.2 and
7.3), all rights a Participant has under any outstanding and not yet paid
Awards shall terminate.

 

ARTICLE VIII

REQUIREMENTS OF LAW

 

8.1                                 Requirements of
Law. 
All Awards pursuant to the Plan shall be subject to
all applicable laws, rules and regulations.

 

8.2                                 Governing Law.  The Plan and all agreements under the Plan shall be construed in
accordance with and governed by the laws of the State of Colorado, United
States of America.

 

8.3                                 Governing
Currency. 
The Plan and all agreements under the Plan shall be
denominated in the currency of the United States of America.

 

ARTICLE IX

AMENDMENT, MODIFICATION AND TERMINATION

 

The Board may amend or modify any provision of the
Plan at any time, except that no amendment or modification shall be effective
without the approval of the stockholders of LTD if such approval is necessary
to satisfy the requirements of Code § 162(m). 
The Board may suspend the granting of Awards under the Plan or terminate
the Plan at any time.

 

The Board may determine that any Awards granted
under the Plan shall be subject to additional and/or modified terms and
conditions, and the terms of the Award shall be adjusted accordingly, as may be
necessary to comply with or take account of any securities, exchange control,
or taxation laws, regulations or practice of any territory which may have
application to the relevant Participant.

 

ARTICLE X

MISCELLANEOUS

 

10.1                           Gender and
Number. 
Except when otherwise indicated by the context, the
masculine gender shall also include the feminine gender, and the definition of
any term herein in the singular shall also include the plural.

 

10.2                           No Right to
Continued Employment. 
Nothing contained in the Plan or in any Award granted under the Plan
shall confer upon any Participant any right with respect to the continuation of
the Participant’s employment by, or consulting relationship with, CH2M HILL
and/or Affiliates, or interfere in any way with the right of CH2M HILL or
Affiliates, subject to the terms of any separate employment agreement or other
contract to the contrary, at any time to terminate such services or to increase
or decrease the compensation of the Participant from the rate in existence at
the time of the grant of an award. Any Participant who leaves the employment of
CH2M HILL shall not be entitled to any compensation for any loss of any right
or any benefit or prospective right or benefit under this Plan which the
Participant might otherwise have enjoyed whether such compensation is claimed
by way of damages for wrongful dismissal or other breach of contract or by way
of compensation for loss of office or otherwise.

 

 

CH2M
HILL hereby agrees to the provisions of the Plan and in witness of its
agreement, by its duly authorized officer has executed the Plan on the date
written below.

 

	
   

  	
  CH2M
  HILL Companies, Ltd.

  
	
   

  	
  Plan
  Sponsor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:Exhibit 10.82

 

 

Inspired by
Simplicity.

Driven by
Innovation.

Engineered with
Excellence.

 

May 3, 2008

 

Jeanne
Seeley

 

Re:          Terms of
Employment Offer

 

Dear Jeanne:

 

This letter will confirm the terms of your offer of employment with
Occam Networks, Inc. (“Occam Networks”). 
Such terms are as follows:

 

1.     Position
and Responsibilities.  You
will serve in the position of Senior Vice President and Chief Financial Officer reporting to Bob Howard-Anderson, President &
CEO.  It is anticipated that your
first day of employment will be May 12,
2008.  You will assume and
discharge such responsibilities as are commensurate with such position and as
your manager may direct.  During the term
of your employment, you shall devote your full time, skill and attention to your
duties and responsibilities and shall perform them faithfully, diligently and
competently.  In addition, you shall
comply with and be bound by the operating policies, procedures and practices of
Occam Networks in effect from time to time during your employment.

 

2.     At-Will
Employment. You acknowledge that your employment with Occam
Networks is for an unspecified duration that constitutes at-will employment,
and that either you or Occam Networks can terminate this relationship at any
time, with or without cause and with or without notice.

 

3.     Compensation.

 

a)       In consideration for your
services, effective your first day of employment, you will be paid a base
salary of $250,000 per year, payable
semi-monthly in accordance with Occam Networks’ standard payroll practices.

 

b)      Executive Cash
Incentive:  The target for your executive
cash incentive will be 70% on an annualized basis.  Bonus target for the second half of fiscal
2008 will be at 35% of annual base salary and will be based 50% on Company
financial performance (revenue and OPINC) versus plan, and 50% on personal
objectives established by the CEO and approved by the compensation committee
for the half year ending December 31, 2008.  Each payout will have a performance
multiplier that will have the range of 50% payout for 90% achievement up to
150% payout for 120% achievement, scaled linearly in between.  Occam’s compensation committee has not
determined the structure of any incentive compensation plan for executive
officers for fiscal 2009, but Occam would expect, subject to your continued
status as an executive officer, that you would participate in any such plan
established by the compensation committee.

 

	
  Occam Networks, Inc.

  	
   

  	
  main
  +1.805.692.2900

  
	
  6868 Cortona Drive

  	
   

  	
  fax
  +1.805.692.2999

  
	
  Santa Barbara,
  California 93117

  	
   

  	
  www.occamnetworks.com

  

 

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c)       If your employment is
terminated by Occam Networks for any reason, with or without cause, or if you
resign your employment voluntarily, no compensation or other payments will be
paid or provided to you for periods following the date when such a termination
of employment is effective, provided that any rights you may have under the
benefit plans of Occam Networks (including any equity incentive and incentive compensation
plans) shall be determined under the provisions of those plans.  If your employment terminates as a result of
your death or disability, no compensation or payments will be made to you other
than those to which you may otherwise be entitled under the benefit plans of
Occam Networks.

 

4.     Other
Benefits. You will be entitled to receive the standard employee
benefits made available by Occam Networks to its employees to the full extent
of your eligibility therefore.  You shall
be entitled to 15 days of Paid Time Off (PTO) per year.  During your employment, you shall be
permitted, to the extent eligible, to participate in any group medical, dental,
life insurance and disability insurance plans, or similar benefit plan of Occam
Networks that is available to employees generally.  Participation in any such plan shall be
consistent with your rate of compensation to the extent that compensation is a
determinative factor with respect to coverage under any such plan.

 

As an executive officer of Occam Networks, you will be entitled to the
benefits outlined in the change of control severance agreement in the form
approved by Occam’s compensation committee for all executive officers, which we
will enter with you at the time you commence employment.

 

Occam Networks shall reimburse you for all reasonable expenses actually
incurred or paid by you in the performance of your services on behalf of the
company, upon prior authorization and approval in accordance with Occam
Networks’ expense reimbursement policy as from time to time in effect.

 

5.     Stock Option. Subject to the approval of the compensation
committee of the Board of Directors of Occam Networks, and under the terms and
conditions of the Occam Networks 2006 Equity Incentive Plan and the approved
stock option agreement for executive officers (net exercise form), you will be
granted a non-statutory stock option to purchase 75,000 shares of Occam Networks’ common stock at an exercise price
that is equal to the closing trading price of Occam Networks’ common stock on the
date of grant (which may, in accordance with Occam Networks’ administrative
policy relating to stock option grants be subsequent to the date of
compensation committee approval). Additionally, subject to compensation
committee approval, you will be granted 35,000
Restricted Stock Units (RSUs). Subject to your continuing to be a
Service Provider (as defined in the 2006 Equity Incentive Plan), the common
stock options will vest and become exercisable at the rate of 25% vesting on
the first anniversary of the vesting commencement date and the remaining 75%
vesting thereafter in 36 equal monthly installments.  Also assuming continued status as a Service
Provider, the RSUs will vest over a three year period as follows: 1/6th
will vest upon the six month anniversary of the date of grant, 1/6th
will vest on the first anniversary of the date of the grant, 1/3rd
will vest on the second anniversary of the date of the grant, and 1/3rd
will vest on the third anniversary of the date of grant.

 

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6.     Confidential
Information. You agree that your employment is contingent upon
your execution of, and delivery to, Occam Networks of an Employment,
Confidential Information and Invention Assignment Agreement in the standard
form utilized by Occam Networks (the “Confidentiality Agreement”).

 

7.     Conflicting
Employment. You agree that, during the term of your employment
with Occam Networks, you will not engage in any other employment, occupation,
consulting or other business activity directly related to the business in which
Occam Networks is now involved or becomes involved during the term of your
employment, nor will you engage in any other activities that conflict with your
obligations to Occam Networks.

 

8.     Federal
Immigration Law. For purposes of federal immigration law, you
will be required to provide to Occam Networks documentary evidence of your
identity and eligibility for employment in the United States.  Such documentation must be provided to Occam
Networks within two (2) business days of your date of hire.

 

9.     General
Provisions.  This offer
letter will be governed by the laws of the State of California, applicable to
agreements made and to be performed entirely within such state.

 

a)     This offer letters sets
forth the entire agreement and understanding between Occam Networks and you
relating your employment and supersedes all prior verbal discussion between
us.  Any subsequent change or changes in
your duties, salary or other compensation will not affect the validity or scope
of this agreement.  Any change to the
at-will term of this agreement must be executed in writing and signed by you
and the President of Occam Networks.

 

b)    This agreement will be
binding upon your heirs, executors, administrators and other legal representatives
and will be for the benefit of Occam Networks and its respective successors and
assigns.

 

c)     This offer
letter expires as of the close of business on Friday,
May 9, 2008.

 

Please acknowledge
and confirm your acceptance of this letter by signing and returning the
enclosed copy of this offer letter as soon as possible.  If you have any questions about this offer
letter, please call me directly.

 

	
   

  	
  OCCAM NETWORKS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Howard-Anderson

  
	
   

  	
   

  	
  Robert Howard-Anderson

  
	
   

  	
   

  	
  President & Chief Executive Officer

  

 

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* * * * * * * * * * * * *

 

ACCEPTANCE:

 

I
accept the terms of my employment with Occam Networks as set forth herein.  I understand that this offer letter does not
constitute a contract of employment for any specified period of time, and that
my employment relationship may be terminated by either party, with or without
cause and with or without notice.

 

	
  /s/ Jeanne Seeley

  	
   

  	
  May 3, 2008

  
	
  Jeanne Seeley

  	
   

  	
  Date

  

 

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