Document:

centale032808s8ex4-1.htm

    
      

      

    

    
      EXHIBIT
4.1

      

      CENTALE,
INC.

      

      2008
Equity Incentive Plan

      

      Article
1. Establishment and Purpose

      

      1.1  Establishment of the
Plan.  Centale, Inc., a New York corporation (the “Company” or
“Centale”), hereby establishes an incentive compensation plan (the “Plan”), as
set forth in this document.

      

      1.2  Purpose of the
Plan.  The purpose of the Plan is to promote the success and
enhance the value of the Company by linking the personal interests of
Participants to those of the

      Company's
shareholders, and by providing Participants with an incentive for outstanding
performance. The Plan is further intended to attract and retain the services of
Participants upon whose judgment, interest, and special efforts the successful
operation of Centale and its subsidiaries is dependent.

      

      1.3  Effective Date of the
Plan.  The Plan shall become effective on March 20,
2008.

      

      Article
2. Definitions

      

      Whenever used in the Plan, the
following terms shall have the meanings set forth below and, when the meaning is
intended, the initial letter of the word is capitalized:

      

      (a)  “Award” means,
individually or collectively, a grant under this Plan of Stock, Stock Options,
or Restricted Stock.

      

      (b)  “Award Agreement” means
an agreement which may be entered into by each Participant and the Company,
setting forth the terms and provisions applicable to Awards granted to
Participants under this Plan.

      

      (c)  “Board” or “Board of
Directors” means the Company’s Board of Directors.

      

      (d)  “Cause” shall mean
willful and gross misconduct on the part of an Eligible Person that is
materially and demonstrably detrimental to the Company or any Subsidiary as
determined by the Committee in its sole discretion.

      

      
        
           

        

        
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      (e)  “Change in Control”
shall be deemed to have occurred if (i) any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act), other than (A) a person who on
March 20, 2008 was the beneficial owner of more than 25% of the outstanding
Shares, (B) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or (C) a corporation owned directly or indirectly by
the shareholders of the Company in substantially the same proportions as their
ownership of stock of the Company, is  or becomes the “beneficial
owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company's then  outstanding voting
securities, or (ii) during any period of two (2) consecutive years, individuals
who at the beginning of such period constitute the Board of Directors of
the  Company and any new Director whose election by the Board
of  Directors or nomination for election by the
Company's  shareholders was approved by a vote of at least two-thirds
(2/3) of the Directors then still in office who either were  Directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof,
or (iii) the shareholders of the Company approve a merger
or  consolidation of the Company with any other corporation, other
than a merger or consolidation which would result in  the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of  the surviving entity) at least fifty-five percent (55%)
of the  total voting power represented by the voting securities of the
Company or such surviving entity outstanding immediately  after such
merger or consolidation, or the shareholders of  the Company approve a
plan of complete liquidation of the  Company or an agreement for the
sale or disposition by the  Company of all or substantially all the
Company’s assets.

      

      (f)  “Code” means the
Internal Revenue Code of 1986, as amended from time to time.

      

      (g)  “Committee” means the
committee or committees, as specified in Article 3, appointed by the Board to
administer the Plan with respect to grants of Awards.

      

      (h) “Consultant” means a natural person
under contract with the Company to provide bona fide services to the
Company which are not in connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly promote or
maintain a market for the Company’s securities.

      

       (i)  “Director” means
any individual who is a member of the Centale Board of Directors.

      

      (j)  “Disability” shall mean
the Participant’s inability to perform the Participant’s normal Employment
functions due to any medically determinable physical or mental disability, which
can last or has lasted 12 months or is expected to result in death.

      

      (k) “Eligible Person” means an
Employee, Director or Consultant.

      

      (l)  “Employee” means any
officer or employee of the Company or of one of the Company's
Subsidiaries.  Directors who are not otherwise employed by the Company
shall not be considered Employees under this Plan.

      

      
        
           

        

        
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      (m)  “Employment,” with
reference to an Employee, means the condition of being an officer or employee of
the Company or one of its Subsidiaries.  “Employment,” with reference
to a Consultant, means the condition of being a
Consultant.  “Employment,” with reference to a Director, means the
condition of being a Director.  The change in status of an Eligible
Person among the categories of Employee, Director and Consultant shall not be
deemed a termination of Employment.

      

      (n)  “Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, or any successor
Act thereto.

      

                 (o)  “Exercise
Price” means the price at which a Share may be purchased by a Participant
pursuant to an Option, as determined by the Committee.

      

      (p)  “Insider” shall mean an
Eligible Person who is, on the relevant date, an officer, director, or ten
percent (10%) beneficial owner of the Company, as those terms are defined under
Section 16 of the Exchange Act.

      

      (q)  “Option” or “Stock
Option” shall mean an option to purchase Shares granted hereunder.

      

      (r)  “Participant” means a
person who holds an outstanding Award granted under the Plan.

      

      (s) “Plan” means this 2008 Equity
Incentive Plan.

      

      (t)  “Restricted Stock” means
an Award of Stock granted to an Eligible Person pursuant to Article 7
herein.

      

      (u) “Restriction Period” means the
period during which Shares of Restricted Stock are subject to restrictions or
conditions under Article 7.

      

      (v)  “Shares” or “Stock”
means the shares of common stock of the Company.

      

                 (w)
“Subsidiary” shall mean any corporation in which the  Company owns
directly, or indirectly through  subsidiaries, more than fifty percent
(50%) of the total combined voting power of all classes of Stock, or any
other  entity (including, but not limited to, partnerships
and  joint ventures) in which the Company owns more than
fifty  percent  (50%) of the combined equity
thereof.

      

      Article
3. Administration

      

      
        
           

        

        
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      3.1  The
Committee.   The Plan and all Awards hereunder shall be
administered by one or more Committees of the Board as may be appointed by the
Board for this purpose.  The Board may appoint a Committee
specifically responsible for Awards to Insiders (the “Disinterested Committee”)
where each Director on such Disinterested Committee is a “Non-Employee Director”
(or any successor designation for determining who may administer plans,
transactions or awards exempt under Section 16(b) of the Exchange Act), as that
term is used in Rule 16b-3 under the Exchange Act, as that rule may be modified
from time to time.  If no specific Committee is appointed by the
Board, then the Board in its entirety shall be the Committee.  Any
Committee may be replaced by the Board at any time.

      

      3.2 Authority of the
Committee.  The Committee shall have full power, except as
limited by law and subject to the provisions herein, to select the recipients of
Awards; to determine the size and types of Awards; to determine the terms and
conditions of such Awards in a manner consistent with the Plan; to construe and
interpret the Plan and any agreement or instrument entered into under the Plan;
to establish, amend, or waive rules and regulations for the Plan's
administration; and to amend the terms and conditions of any outstanding Award
to the extent such terms and conditions are within the discretion of the
Committee as provided in the Plan.  Further, the Committee shall make
all other determinations which may be necessary or advisable for the
administration of the Plan.

      

      No Award may be made under the Plan
after December 31, 2015.

      

      All determinations and decisions made
by the Committee pursuant to the provisions of the Plan and all related orders
or resolutions of the Board shall be final, conclusive, and binding on all
persons, including the Company, its stockholders, Eligible Persons,
Participants, and their estates and beneficiaries.

      

      Subject to the terms of this Plan, the
Committee is authorized, and shall not be limited in its discretion, to use any
of the Performance Criteria specified herein in its determination of Awards
under this Plan.

      

      Article
4. Shares Subject to the Plan

      

      4.1 Number of
Shares.  Subject to adjustment as provided in Section 4.3
herein, the number of Shares available for grant under the Plan shall not exceed
three million (3,000,000) Shares.  The Shares granted under this Plan
may be either authorized but unissued or reacquired Shares.

      

      4.2 Lapsed
Awards.  If any Award granted under this Plan is canceled,
terminates, expires, or lapses for any reason, Shares subject to such Award
shall be again available for the grant of an Award under the Plan.

      

      4.3 Adjustments in Authorized
Plan Shares.  In the event of any merger, reorganization,
consolidation, recapitalization, separation, liquidation, Stock dividend,
split-up, Share combination, or other change in the corporate structure of the
Company affecting the Shares, an adjustment shall be made in the number and
class of Shares which may be delivered under the Plan, and in the number and
class of and/or price of Shares subject to outstanding Awards granted under the
Plan, and/or the number of outstanding Options and Shares of Restricted Stock
constituting outstanding Awards, as may be determined to be appropriate and
equitable by the Committee, in its sole discretion, to prevent dilution or
enlargement of rights.

      

      

      
        
           

        

        
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      Article
5.  Stock Grant

      

      5.1  Grant of
Stock.  Subject to the terms and provisions of the Plan, the
Board of Directors, at any time and from time to time, may grant Shares of Stock
to Eligible Persons in such amounts and upon such terms and conditions as the
Board of Directors shall determine.

      

      Article
6. Stock Options

      

      6.1  Grant of
Options.  Subject to the terms and provisions of the Plan,
Options may be granted to Eligible Persons at any time and from time to time,
and under such terms and conditions, as shall be determined by the
Committee.  The Committee shall have discretion in determining the
number of Shares subject to Options granted to each Eligible
Person.

      

      6.2  Form of
Issuance.  Each Option grant may be issued in the form of an
Award Agreement and/or may be recorded on the books and records of the Company
for the account of the Participant. If an Option is not issued in the form of an
Award Agreement, then the Option shall be deemed granted as determined by the
Committee.  The terms and conditions of an Option shall be set forth
in the Award Agreement, in the notice of the issuance of the grant, or in such
other documents as the Committee shall determine.  Such terms and
conditions shall include the Exercise Price, the duration of the Option, the
number of Shares to which an Option pertains (unless otherwise provided by the
Committee, each Option may be exercised to purchase one Share), and such other
provisions as the Committee shall determine.

      

      6.3  Exercise
Price.  The Exercise Price of an Option shall be determined by
the Committee in its sole discretion.

      

      6.4  Duration of
Options.  Each Option shall expire at such time as the
Committee shall determine at the time of grant (which duration may be extended
by the Committee); provided, however, that no Option shall be exercisable later
than the tenth (10th)
anniversary date of its grant.  If, however, the Eligible Person owns
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of its parent or subsidiary
corporations, then no Option shall be exercisable later than the fifth (5th)
anniversary date of its grant.

      

      6.5  Vesting of
Options.  Options shall vest at such times and under such terms
and conditions as determined by the Committee; provided, however, unless a
different vesting period is provided by the Committee at or before the grant of
an Option, the Options will vest on the first anniversary of the
grant.

      

      6.6  Exercise of
Options.  Options granted under the Plan shall be exercisable
at such times and be subject to such restrictions and conditions as the
Committee shall in each instance approve, which need not be the same for each
grant or for each Participant.

      
        
           

        

        
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      Options shall be exercised by delivery
of a written notice (including e-mail and telecopies) to the Secretary of the
Company (or, if so provided by the Company, to its designated agent), which
notice shall be irrevocable, setting forth the exact number of Shares with
respect to which the Option is being exercised and including with such notice
payment of the Exercise Price.  When Options have been transferred,
the Company or its designated agent may require appropriate documentation that
the person or persons exercising the Option, if other than the Participant, has
the right to exercise the Option.   No Option may be exercised
with respect to a fraction of a Share.

      

      6.7  Termination of
Employment.  Unless otherwise provided by the Committee, the
following limitations on exercise of Options shall apply upon termination of
Employment:

      

      (a) Termination by Death or
Disability.  In the event the Employment of a Participant shall
terminate by reason of death or Disability, all outstanding Options granted to
that Participant shall immediately vest as of the date of termination of
Employment and may be exercised, if at all, no more than three (3) years from
the date of the termination of Employment, unless the Options, by their terms,
expire earlier.

      

      (b)  Termination for
Cause.  If the Employment of a Participant shall be terminated
by the Company for Cause, all outstanding Options held by the Participant shall
immediately be forfeited to the Company and no additional exercise period shall
be allowed, regardless of the vested status of the Options.

      

      (c)  Retirement or Other
Termination of Employment.  If the Employment of a Participant
shall terminate for any reason other than the reasons set forth in (a) or (b)
above, all outstanding Options which are vested as of the effective date of
termination of Employment may be exercised, if at all, no more than thirty (30)
days from the date of termination of Employment, unless the Options, by their
terms, expire earlier.  In the event of the death of the Participant
after termination of Employment, this paragraph (c) shall still apply and not
paragraph (a), above.

      

      (d)  Options not Vested at
Termination.  Except as provided  in paragraph (a)
above, all Options held by the Participant  which are not vested on or
before the effective date of termination of Employment shall immediately be
forfeited to the Company (and shall once again become available for
grant  under the Plan).

      

      (e)  Notwithstanding the
foregoing, the Committee may, in its sole discretion, establish different terms
and conditions pertaining to the effect of termination of Employment, but no
such modification shall shorten the terms of Options issued prior to such
modification.

      

      6.9  Restrictions on Exercise and
Transfer of Options.  Unless otherwise provided by the
Committee:

      

      (a)  During the Participant's
lifetime, the Participant’s Options shall be exercisable only by the Participant
or by the Participant’s guardian or legal representative.  After the
death of the Participant, an Option shall only be exercised by the holder
thereof (including, but not limited to, an executor or administrator of a
decedent's estate) or his guardian or legal representative.

      

      
        
           

        

        
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      (b)  No Option shall be
transferable except: (i) in the case of the Participant, only upon the
Participant’s death; and (ii) in the case of any holder after the Participant’s
death, only by will or by the laws of descent and distribution.

      

      6.10  Competition.  Notwithstanding
anything in this Article 6 to the contrary, in the event the Committee
determines, in its sole discretion, that a Participant is engaging in activity
competitive with the Company, any Subsidiary, or any business in which any of
the foregoing have a substantial interest (the “Centale Businesses”), the
Committee may cancel any Option granted to such Participant, whether or not
vested, in whole or in part.  Such cancellation shall be effective as
of the date specified by the Committee.  Competitive activity shall
mean any business or activity if a substantially similar business activity is
being carried on by a Centale Business, including, but not limited to,
representing or providing consulting services to any person or entity that is
engaged in competition with a Centale Business or that takes a position adverse
to a Centale Business.  However, competitive activity shall not
include, among other things, owning a nonsubstantial interest as a shareholder
in a competing business.

      

      Article
7. Restricted Stock

      

      7.1  Grant of Restricted
Stock.  Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant Shares of Restricted
Stock to Eligible Persons in such amounts and upon such terms and conditions as
the Committee shall determine.

      

      7.2  Restricted Stock
Agreement.  The Committee may require, as a condition to an
Award, that a recipient of a Restricted Stock Award enter into a Restricted
Stock Award Agreement, setting forth the terms and conditions of the
Award.  In lieu of a Restricted Stock Award Agreement, the Committee
may provide the terms and conditions of an Award in a notice to the Participant
of the Award, on the Stock certificate representing the Restricted Stock, in the
resolution approving the Award, or in such other manner as it deems
appropriate.

      

      7.3  Transferability.  Except
as otherwise provided in this Article 7, the Shares of Restricted Stock granted
herein may not be sold, transferred, pledged, assigned, or otherwise alienated
or hypothecated until the end of the applicable Restriction Period established
by the Committee, if any.

      

      7.4  Other
Restrictions.  The Committee may impose such other conditions
and/or restrictions on any Shares of Restricted Stock granted pursuant to the
Plan as it may deem advisable including, without limitation, a requirement that
Participants pay a stipulated purchase price for each Share of Restricted Stock
and/or restrictions under applicable Federal or state securities laws; and may
legend the certificates representing Restricted Stock to give appropriate notice
of such restrictions.

      

      The Company shall also have the right
to retain the certificates representing Shares of Restricted Stock in the
Company's possession until such time as all conditions and/or restrictions
applicable to such Shares have been satisfied.

      

      
        
           

        

        
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      7.5  Removal of
Restrictions.  Except as otherwise provided in this Article 7,
Shares of Restricted Stock covered by each Restricted Stock grant made under the
Plan shall become freely transferable by the Participant after the last day of
the Restriction Period and completion of all conditions to vesting, if
any.  However, unless otherwise provided by the Committee, the
Committee, in its sole discretion, shall have the right to immediately waive all
or part of the restrictions and conditions with regard to all or part of the
Shares held by any Participant at any time.

      

      7.6  Voting Rights, Dividends and
Other Distributions. During the Restriction Period, Participants holding
Shares of Restricted Stock granted hereunder may exercise full voting rights and
shall receive all regular cash dividends paid with respect to such
Shares.  Except as provided in the following sentence, in the sole
discretion of the Committee, other cash dividends and other distributions paid
to Participants with respect to Shares of Restricted Stock may be subject to the
same restrictions and conditions as the Shares of Restricted Stock with respect
to which they were paid.  If any such dividends or distributions are
paid in Shares, the Shares shall be subject to the same restrictions and
conditions as the Shares of Restricted Stock with respect to which they were
paid.

      

      7.7  Termination of Employment
Due to Death or Disability.  In the event the Employment of a
Participant shall terminate by reason of death or Disability, unless otherwise
provided by the Committee prior to or at the time of the Award, all Restriction
Periods and all restrictions imposed on outstanding Shares of Restricted Stock
held by the Participant shall immediately lapse and the Restricted Stock shall
immediately become fully vested as of the date of termination of
Employment.

      

      7.8  Termination of Employment
for Other Reasons.  If the Employment of a Participant shall
terminate for any reason other than those specifically set forth in Section 7.7
herein, all Shares of Restricted Stock held by the Participant which are not
vested as of the effective date of termination of Employment immediately shall
be forfeited and returned to the Company.

      

      Article
8.   Employee Matters

      

      8.1  Employment Not
Guaranteed.  Nothing in the Plan shall interfere with or limit
in any way the right of the Company or any Subsidiary to terminate any
Participant's Employment at any time, nor confer upon any Participant any right
to continue in the employ of the Company or one of its
Subsidiaries.

      

      8.2  Participation.  No
Eligible Person shall have the right to be selected to receive an Award under
this Plan, or, having been so selected, to be selected to receive a future
Award.

      

      8.3  Claims and
Appeals.  Any claim under the Plan by a Participant or anyone
claiming through a Participant shall be presented to the Committee. Any person
whose claim under the Plan has been denied may, within sixty (60) days after
receipt of notice of denial, submit to the Committee a written request for
review of the decision denying the claim. The Committee shall determine
conclusively for all parties all questions arising in the administration of the
Plan.

      

      
        
           

        

        
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      Article
9. Amendment, Modification, and Termination

      

      9.1  Amendment, Modification, and
Termination.  The Board of Directors alone shall have the right
to alter, amend or revoke the Plan or any part thereof at any time and from time
to time, provided, however, that the Board of Directors may not, without the
approval of the holders of a majority of the voting Shares, make any alteration
or amendment to the Plan which changes the aggregate number of shares of Common
Stock which may be issued under the Plan, extend the term of the Plan, or change
the employees or class of employees eligible to receive Awards thereunder. The
Board may at any time suspend or terminate the Plan in whole or in
part.

      

      9.2  Awards Previously
Granted.  No termination, amendment, or modification of the
Plan shall adversely affect in any material way any Award previously granted
under the Plan, without the written consent of the Participant holding such
Award.

      

      Article
10. Change in Control

      

      Upon the occurrence of a Change in
Control:

      

      (a)  Any and all Options
granted hereunder immediately shall become vested and exercisable;

      

      (b)  Any Restriction Periods
and all restrictions imposed on Restricted Shares shall lapse and they shall
immediately become fully vested.

      

      Article
11 Withholding

      

      11 1  Tax
Withholding.  The Company shall deduct or withhold an amount
sufficient to satisfy Federal, state, and local taxes (including the
Participant's employment tax obligations) required by law to be withheld with
respect to any taxable event arising or as a result of this Plan (“Withholding
Taxes”).

      

      11.2  Share
Withholding.  With respect to withholding required upon the
exercise of Options, upon the lapse of restrictions on Restricted Stock, or upon
any other taxable event hereunder involving the transfer of Stock to a
Participant, the Company shall withhold Stock having a Fair Market Value on the
date the tax is to be determined in an amount equal to the Withholding Taxes on
such Stock.  Any fractional Share remaining after the withholding
shall be withheld as additional Federal withholding.

      

      11.3 Payment In Lieu of Share
Withholding.  In any situation in which the Company would be
required to withhold Stock pursuant to §11.2 above, the Participant may, in lieu
of all or part of such withholding, remit to the Company an amount in cash
sufficient to satisfy the federal, state and local withholding tax requirements
or may direct the Company to withhold from other amounts payable to the
Participant, including salary.

      

      
        
           

        

        
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      Article
12. Successors

      

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

      

      Article
13. Legal Construction

      

      13.1  Severability.  In
the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provision had not been included.

      

      13.2  Requirements of
Law.  The granting of Awards and the issuance of Shares under
the Plan shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as
may be required.

      

      13.3  Securities Law
Compliance.  With respect to Insiders, transactions under this
Plan are intended to comply with all applicable conditions of Rule 16b-3 or its
successors under the Exchange Act.  To the extent any provision of the
plan or action by the Committee fails to comply with a condition of Rule 16b-3
or its successors, it shall not apply to the Insiders or transactions
thereby.

      

      13.4  Governing
Law.  To the extent not preempted by Federal law, the Plan, and
all agreements hereunder, shall be construed in accordance with and governed by
the laws of the State of New York.

      

      *       *       *       *       *

       

       

       

      

         

         

         

         

        
 

         

        10Exhibit
10.1

 

CHANGE OF CONTROL AGREEMENT

 

AGREEMENT by
and between Tetra Tech, Inc., a Delaware
corporation (the “Company”), and Dan L. Batrack
(the “Executive”), dated as of March 25, 2008.

 

WHEREAS the Executive is an officer and key member
of the Company’s management;

 

WHEREAS the Board of Directors of the Company (the “Board”),
has determined that it is in the best interests of the Company and its shareholders
to assure the continued dedication of the Executive to the Company,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below);

 

WHEREAS the Board believes it is imperative to (a) diminish
the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a threatened or pending Change of Control, (b) encourage
the Executive’s full attention and dedication to the Company currently and in
the event of any threatened or pending Change of Control, and (c) preserve
the Executive’s impartial judgment in the event of any threatened or pending
Change of Control;

 

WHEREAS this Agreement is not intended to alter
materially the compensation, benefits or terms of employment that the Executive
could reasonably expect in the absence of a Change of Control, but is intended
to encourage and reward the Executive’s compliance with the wishes of the Board
whatever they may be in the event that a Change of Control occurs or is
threatened.

 

NOW, THEREFORE, in order to accomplish these
objectives and in consideration of the mutual agreements, provisions, and
covenants contained herein, and intending to be legally bound hereby, the Board
has authorized the Company to enter into this Agreement as follows:

 

1.                                      Term. This Agreement
shall terminate on March 25, 2013. Notwithstanding the foregoing, in no
event shall the Term expire before the second anniversary of a Change of
Control that occurs during the Term. The initial term of this Agreement, as it
may be extended as provided for under this Section 1, is herein referred
to as the “Term.”

 

2.                                      Duties. The Executive
agrees that, subject to the Executive’s fiduciary duties to the Company and its
shareholders, the Executive will exercise the Executive’s best efforts to bring
about whatever result the Board determines to be in the best interests of the
Company and its shareholders relative to any impending Change of Control (i.e.,
to help resist any such impending Change of Control if the Board determines
that to be in the best interests of the Company and its shareholders, and to
bring about such Change of Control if the Board determines that to be the preferable
alternative). The Executive agrees to use the Executive’s best efforts at and
after the occurrence of a Change of Control to affect an orderly and beneficial
transfer of control to the party or parties comprising the new control group.

 

 

3.                                      Change of Control as a
Condition Precedent. No amount or benefit shall be payable under the terms of this Agreement
unless there shall have been a Change of Control that is actually consummated. A
“Change of Control” shall mean the first of the following to occur:

 

(a)                                  The purchase or other acquisition by any
Person (as defined below), directly or indirectly, of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
the Company’s securities not including the securities beneficially owned by
such Person or any securities acquired directly from the Company or its
Affiliates representing 50 percent or more on a single date or during any 12
month period of the combined voting power of the Company’s then outstanding
voting securities entitled to vote generally in the election of the Board;
provided, however, that if any Person has satisfied this requirement, the
acquisition of additional Company securities by the same Person shall be
construed as not triggering a Change of Control; and provided further, however,
that an increase in the percentage of voting securities owned by any Person as
a result of a transaction in which the Company acquires its voting securities
in exchange for property shall not be treated as an acquisition of the Company’s
voting securities for purposes of this Section 3(a);

 

(b)                                 The consummation of a reorganization,
merger, or consolidation of the Company, if the Company’s shareholders, in
combination with any trustee or other fiduciary acquiring voting securities
under an employee benefit plan of the Company or an Affiliate as part of such
transaction, do not, immediately thereafter, own more than 50 percent of the
combined voting power of the reorganized, merged or consolidated Company’s then
outstanding securities that is entitled to vote generally in the election of
the directors; provided, however, that a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which
no Person acquires more than 50 percent of the combined voting power of the
Company’s then outstanding securities shall not be a Change of Control under
this Section 3(b);

 

(c)                                  During any period of two consecutive
years, individuals who, as of the beginning of such period, constitute the
Board (the “Incumbent Board”) cease to constitute at least a majority of the
Board  (unless the reason for no longer
constituting a majority of the Board is because one or more directors is not
re-elected because of a failure to satisfy majority voting requirements in the
Company’s charter, bylaws or applicable policy); provided, that any person
becoming a director of the Company subsequent to the beginning of such period
whose election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of either an actual or
threatened election contest, including, but not limited to, a consent solicitation
relating to the election of directors of the Company and whose appointment or
election was not approved by at least a majority of the directors of the
Company in office immediately before any such contest; or

 

2

 

(d)                                 The consummation of the sale or
disposition by the Company of all or substantially all of the Company’s assets,
other than a sale or disposition by the Company of all or substantially all of
the Company’s assets to an entity where the outstanding securities generally
entitled to vote in the election of directors of the Company immediately prior
to the transaction continue to represent (either by remaining outstanding or by
being converted into such securities of the surviving entity or any parent
thereof) 50 percent or more of the combined voting power of the outstanding
voting securities of such entity generally entitled to vote in such entity’s
election of directors immediately after such sale.

 

Notwithstanding the
foregoing, in no event may there by more than one transaction or occurrence
treated as a “Change of Control” for purposes of this Agreement. For purposes
of Section 3, the following terms shall have the following meanings:

 

“Affiliate” means any
entity that directly or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with the Company as
determined by the Board in its discretion.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Person” shall have the
meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act;
provided, however, that Person shall exclude (i) the Company or any of its
Affiliates, (ii) any trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities, and (iv) any corporation owned directly or indirectly, by the
shareholders of the Company in substantially the same proportion as their
ownership of stock of the Company.

 

4.                                      Employment
Period. In
the event of a Change of Control, the Company agrees to continue the Executive
in its employ, and the Executive agrees to remain in the employ of the Company,
in each case subject to the terms and conditions of this Agreement, for the
period commencing on the Change of Control and ending on the second anniversary
of such date (the “Employment Period”). Nothing in this Agreement shall be
deemed to prevent the Executive from remaining in the employ of the Company or
any successor beyond the Employment Period either on the terms and conditions
set forth herein or on others that may be mutually agreed upon.

 

5.                                      Stock
Options and Restricted Stock Awards.  Upon the occurrence of a
Change of Control, subject to the Executive remaining employed by the Company
on such date, all outstanding stock option awards shall vest in full and any
restrictions or forfeiture provisions applicable to restricted stock awards
shall lapse; provided, however, that if the Executive’s employment is terminated
Other Than For Cause under the circumstances described in Section 6(d)(ii),
any stock option and restricted stock awards held by the Executive that were
unvested at the time of such termination shall become fully vested upon the
occurrence of a Change of Control and shall be terminated in exchange for a
payment determined under the procedures set forth in Section 2.3(b) of
the Tetra Tech, Inc. 2005 Equity Incentive Plan. The

 

3

 

lapse of such vesting, forfeiture,
or other restrictions described in this Section 5 shall take place
regardless of the satisfaction of any performance criteria. The Change of
Control shall not extend the term or exercise period of any stock option. In
the event of any conflict between the terms of this Agreement and the terms of
any equity plan or individual agreement evidencing an equity award, the terms
of this Agreement (including, but not limited to, the definition of “Change of
Control”) shall govern. For avoidance of doubt, the unvested portion of any
stock option or restricted stock awards held by the Executive prior to a Change
of Control shall not be forfeited solely due to the Executive’s termination of
employment Other Than For Cause to the extent required to provide the Executive
with the benefits set forth in this Section 5.

 

6.                                      Termination
of Employment.

 

(a)                                  Death/Disability. The Executive’s
employment shall terminate automatically upon the Executive’s death and may be
terminated by the Company due to the Executive’s Disability. For purposes of
this Agreement, “Disability” shall mean either that (i) the Executive is
unable to engage in substantial gainful activity hereunder by reason of any
medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months or (ii) the Executive is, by reason of any medically
determinable physical or mental impairment that 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
three months under an accident and health plan covering employees of the
Company. The Company shall determine in good faith whether the Executive has
become Disabled. In no event shall the Company be obligated to terminate the
Executive’s employment if the Executive suffers a Disability.

 

(b)                                 Cause. The Company
may terminate the Executive’s employment during the Employment Period for Cause.
For purposes of this Agreement, “Cause” shall mean:

 

(i)                                     The willful and
continued failure of the Executive to perform substantially the Executive’s
duties with the Company or one of its affiliates (other than any such failure
resulting from incapacity due to physical or mental illness), after a written
demand for substantial performance is delivered to the Executive by the Board
that specifically identifies the manner in which the Board believes that the
Executive has not substantially performed the Executive’s duties, or

 

(ii)                                  The willful
engaging by the Executive in illegal conduct or gross misconduct that is
materially and demonstrably injurious to the Company.

 

(iii)                               For purposes of
this provision, no act or failure to act, on the part of the Executive, shall
be considered “willful” unless it is done, or omitted to be done, by the Executive
in bad faith or without reasonable belief that the Executive’s action or
omission was in the best interests of the Company. Any act, or failure to act,
based upon authority given pursuant to a resolution duly adopted by the Board or
based upon the advice of legal counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.

 

4

 

(c)                                  Good
Reason. The Executive may terminate employment during the Employment Period for
Good Reason. For purposes of this Agreement, “Good Reason” shall
mean:

 

(i)                                     A material
diminution of the Executive’s base salary, annual bonus opportunity, or both;
or

 

(ii)                                  A material
diminution in the Executive’s authority, duties, or responsibilities; or

 

(iii)                               A material
diminution in the authority, duties, or responsibilities of the supervisor to
whom the Executive is required to report, including a requirement that the Executive
report to a corporate officer or employee instead of reporting directly to the
Board;

 

(iv)                              Following a
Change of Control, if the Company is not the surviving entity in such Change of
Control, failure of the Executive to report to the Board of Directors of the
surviving entity;

 

(v)                                 A material
diminution in the budget over which the Executive retains authority; or

 

(vi)                              A material
change in the geographic location at which the Executive must perform the
services.

 

For the avoidance of doubt,
the term “supervisor” for purposes of Section 6(c)(iii) refers to the
position that the Executive reports to, as opposed to any specific individual;
a change in the individual serving in the position as a “supervisor” shall not,
by itself, constitute “Good Reason.”

 

The Executive may not
terminate employment for Good Reason unless: (x) the Executive has
provided  the Company with notice of the
occurrence of the Good Reason condition described in subsection (i)-(vi) above
within sixty (60) days of the initial existence thereof; and (y) the
Company has been provided with thirty (30) days to remedy such Good Reason
condition and has failed to remedy such condition. The Executive’s employment
shall be deemed to have been terminated following a Change of Control by the
Executive for Good Reason if the Executive terminates the Executive’s
employment prior to a Change of Control with Good Reason if a Good Reason
condition occurs at the direction of a person or entity who has entered into an
agreement with the Company the consummation of which will constitute a Change
of Control.

 

(d)                                 Other
Than For Cause. The Company shall have the right to terminate the
Executive’s employment during the Employment Period for any reason not
described in Section 6(a) or (b) above upon thirty (30) days’
prior written notice to the Executive and such termination shall be referred to
herein as a termination “Other Than For Cause.” 
The Executive’s employment shall be deemed to have been terminated
following a Change of Control by the Company Other Than For Cause if (i) the
Executive resigns following a request by the Company to terminate the Executive’s
employment on or after a Change of Control, or (ii)

 

5

 

the Company terminates the Executive’s employment
Other Than For Cause within the ninety (90) day period immediately prior to the
execution of a definitive agreement the consummation of which actually results
in such Change of Control.

 

(e)                                  Notice
of Termination. Any termination by the Company for Cause or for
Other Than For Cause, or by the Executive for Good Reason, shall be
communicated by Notice of Termination to the other party hereto in accordance
with Section 17(b) of this Agreement. For purposes of this Agreement,
a “Notice of Termination” means a written notice that: (i) indicates the
specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than thirty (30) days after the
giving of such notice). The failure by the Executive or the Company to set
forth in the Notice of Termination any fact or circumstance that contributes to
a showing of Good Reason or Cause shall not waive any right of the Executive or
the Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive’s or the Company’s rights hereunder.

 

(f)                                    Date
of Termination. “Date of Termination” means (i) if the
Executive’s employment is terminated by reason of death or Disability, the date
of the Executive’s death or the date the Company terminates the Executive as a
result of the Executive’s Disability, as the case may be, (ii) if the
Executive’s employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, and (iii) if the
Executive’s employment is terminated by the Company Other Than For Cause, the Date
of Termination shall be thirty (30) days after the date on which the Company
notifies the Executive of such termination, or if the Company chooses to pay
the Executive thirty (30) days of base salary in lieu of providing such 30-day
notice, the date on which the Company notifies the Executive of such termination.

 

7.                                      Obligations
of the Company Upon Termination.

 

(a)                                  Good
Reason, Other Than for Cause. If, during the Employment
Period, the Company terminates the Executive’s employment Other Than For Cause
or the Executive terminates employment for Good Reason under Section 6(c) above,
the Company shall pay to the Executive the following amounts:

 

(i)                                     A cash lump sum
payment equal to  two times the sum of (x) the
Executive’s annual base salary and (y) the Executive’s target bonus for
the year of termination (without regard to any reduction that gave rise to Good
Reason), regardless of actual performance;

 

(ii)                                  A cash lump sum
payment equal to the product of (x) the Executive’s target bonus for the
year of termination (without regard to any reduction that gave rise to Good
Reason), regardless of actual performance, and (y) a fraction, the
numerator of which is

 

6

 

the number of days in the
current fiscal year through the Date of Termination, and the denominator of
which is 365; and

 

(iii)                               For the two
year period immediately following the Date of Termination, the Company shall
arrange to provide the Executive and his dependents medical benefits
substantially similar to those provided to the Executive and his dependents
immediately prior to the Date of Termination at no greater cost to the
Executive than the cost to the Executive immediately prior to such date or
occurrence. The parties intend that the first 18 months of medical, dental and
accidental death and disability coverage shall be exempt from the application
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
and that any remaining payments by the Company for these benefits shall be made
on a monthly basis and considered in compliance with Section 409A of the
Code. To the extent
COBRA continuation coverage eligibility expires before the end of
the medical benefit continuation period under this Section 7(a)(iii),
the Executive will receive payment, on an after-tax basis (based on the highest
applicable marginal rate of federal, state and local income and employment
taxes) of an amount equal to the premium the Company would have otherwise
contributed to COBRA coverage under this Section 7(a)(iii). Benefits
otherwise receivable by the Executive pursuant to this Section 7(a)(iii) shall
be reduced to the extent benefits of the same type are received by or made
available by a subsequent employer to the Executive during the two year  period following the Date of Termination (and any such
benefits received by or made available to the Executive shall be reported to
the Company by the Executive); provided, however, that the Company shall
reimburse the Executive for the excess, if any, of the cost of such benefits to
the Executive over such cost immediately prior to the Date of Termination. Any
such reimbursement under this Section 7(a)(iii) shall be made
promptly in accordance with Company policy, but in any event on or before the
last day of the Executive’s taxable year following the taxable year in which
the expense or cost was incurred. In no event shall the amount that the Company
pays for any such benefit in any one year affect the amount that it will pay in
any other year and in no event shall the benefits described in this Section 7(a)(iii) be
subject to liquidation or exchange.

 

The lump sum payments
described in this Section 7(a) shall be paid upon the Executive’s “separation
from service” under Section 409A of the Code, subject to compliance with Section 11.
To the extent
required to avoid adverse tax consequences under Section 105(h) of
the Code, the Company’s payments under this Section 7(a)(iii) will
be recognized by the Executive in his taxable income (the “Covered Payments”)
and the Executive will receive, in addition, a “gross-up”
payment covering the tax liability attributable to such
recognized income. The “gross-up” payment shall be
determined by (i) dividing the Covered Payments by the amount obtained by
subtracting from 1.0 the highest applicable marginal rate of Federal,
state, and local income and employment taxation, respectively, for the calendar
year in which the “gross up” payment is made; and (ii) subtracting from
such quotient the Covered Payments.  This tax gross-up payment shall be
made at the same time as required premium payments by the Company.

 

(b)                                 Death,
Disability. If, during the Employment
Period, the Executive’s employment is terminated as a result of his death or by
the Company due to the Executive’s

 

7

 

Disability, the Company
shall pay to the Executive in cash the product of (x) the Executive’s
target bonus for the year of termination, regardless of actual performance, and
(y) a fraction, the numerator of which is the number of days in the
current fiscal year through the Date of Termination, and the denominator of
which is 365.

 

(c)                                  Other
Termination of Employment. If the Executive’s
employment is terminated for any reason other than as described in Sections 7(a) or
(b) above, except as specifically provided in subsection (d) below,
this Agreement shall terminate without further obligations to the Executive hereunder.

 

(d)                                 Accrued
Amounts. Upon a termination of employment for any reason, the Company shall pay
or provide the Executive (i) any unpaid base salary through the date of
termination and any accrued vacation in accordance with Company policy within
thirty (30) days after employment termination; (ii) reimbursement for any
unreimbursed expenses incurred through the date of termination; and (iii) all
other payments and benefits to which the Executive may be entitled under the
terms of any applicable compensation arrangement or benefit, equity or perquisite
plan or program or grant or this Agreement, including but not limited to any
applicable pension, retirement and insurance benefits (collectively, “Accrued
Amounts”).

 

8.                                      Non-Exclusivity
of Rights. Nothing in this Agreement shall prevent or limit
the Executive’s continuing or future participation in any plan, program, policy
or practice provided by the Company or any of its affiliated companies and for
which the Executive may qualify, nor shall anything herein limit or otherwise
affect such rights as the Executive may have under any contract or agreement
with the Company or any of its affiliated companies, except that all payments
and benefits made under this Agreement are made in lieu of any other severance
compensation or benefits to which the Executive may otherwise be entitled under
any plan, program, policy or arrangement of the Company (which compensation and
benefits the Executive hereby expressly waives to the extent the Executive
receives the compensation and benefits provided for hereunder). Amounts that
are vested benefits or that the Executive is otherwise entitled to receive
under any plan, policy, practice or program of, or any contract or agreement
with, the Company or any of its affiliated companies at or subsequent to the
Date of Termination shall be payable in accordance with such plan, policy,
practice or program or contract or agreement except as explicitly modified by
this Agreement.

 

9.                                      Full
Settlement, Mitigation. Except as provided in Section 7(a)(iii) and
Section 11(b), the Company’s obligation to make the payments provided for
in this Agreement and otherwise to perform its obligations hereunder shall not
be affected by any set-off, counterclaim, recoupment, defense or other claim,
right or action that the Company may have against the Executive or others. In
no event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and, except as provided in Section 7(a)(iii),
such amounts shall not be reduced whether or not the Executive obtains other
employment.

 

8

 

10.                               Certain
Additional Payments by the Company.

 

(a)                                  Excess
Parachute Payments. In the event it shall be determined that
any payment or distribution by the Company to or for the benefit of the
Executive (whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise) (a “Payment” and collectively “Total
Payments”) would be subject to the excise tax imposed by Section 4999 of
the Code (or would be within $1,000 of triggering such excise tax), then Total
Payments shall be reduced (but not below zero) so that the maximum amount of
Total Payments (after reduction) shall be $1,000 less than the amount that
would cause the Total Payments to be subject to the excise tax imposed by Section 4999
of the Code (as so reduced, the “280G Limitation Amount”). Notwithstanding the
foregoing, if the Executive would be better off by at
least $50,000 on an after-tax basis after taking into
account all taxes (including but not limited to the Section 4999 excise
tax) receiving the full amount of Total Payments as opposed to the 280G
Limitation Amount the Executive shall receive the full amount of Total Payments
without reduction. References to Section 4999 of the Code shall include
any successor provision or any similar excise tax. The Executive shall not be
entitled to an increased payment from the Company for any excise, additional,
or other tax, penalty, or interest as a result of this Agreement. Any payment
reductions under this subsection (a) shall be made first from cash payments.

 

(b)                                 Consultant. All
determinations required to be made under this Section 10, including
whether and when Total Payments should or should not be reduced and the assumptions
to be utilized in arriving at such determination, shall be made by a “Consulting
Firm,” which shall be
a law firm, a certified public accounting firm, and/or a firm of recognized
executive compensation consultants selected by the Company. The Consulting
Firm shall provide detailed supporting calculations regarding such determination
both to the Company and the Executive within fifteen (15) business days of the
receipt of notice from the Executive that there has been a Payment, or such
earlier time as is requested by the Company. All fees and expenses of the
Consulting Firm shall be borne solely by the Company. Any determination by the
Consulting Firm shall be binding upon the Company and the Executive, and no
later determination shall obligate the Company to make any payment or
adjustment to the Total Payments made to the Executive.

 

11.                               Conditions
to Payments and Benefits.

 

(a)                                  The Executive’s
entitlement to receive the payments and benefits hereunder shall be conditioned
upon:

 

(i)                                     the Executive
having complied to the best of the Executive’s abilities with the commitments
contained in Section 2;

 

(ii)                                  delivery to the
Company of an executed agreement and general release, which shall be executed substantially
in the form attached hereto as Exhibit A (with such changes therein or
additions thereto as needed under then applicable law to give effect to its
intent and purpose) within twenty one (21) days of presentation thereof by the
Company to the Executive; and

 

9

 

(iii)                               delivery to the
Company of a resignation from all offices, directorships and fiduciary
positions with the Company, its affiliates and employee benefit plans.

 

(b)                                 If the
Executive fails to materially comply with any obligation or covenant under Section 2
or is subsequently determined to have terminated employment for Cause under Section 6(b) above,
the Company’s obligations to make any payments or provide any benefits or other
rights or entitlements to Executive pursuant to any provision of this Agreement
shall immediately cease and Executive shall be required to immediately repay to
the Company all amounts theretofore paid or otherwise provided to Executive
pursuant to any section of this Agreement. The Company may recover amounts
under this Section 11(b) by set-off from any amounts otherwise due to
Executive under any other plan, program or arrangement if the Executive fails
to make any required repayment within 15 business days after written demand to
the Executive.

 

12.                               Confidential
Information. The Executive shall hold in a fiduciary capacity
for the benefit of the Company all secret or confidential information, knowledge
or data relating to the Company or any of its affiliated companies, and their
respective businesses, which shall have been obtained by the Executive during
the Executive’s employment by the Company or any of its affiliated companies
and which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement). After
termination of the Executive’s employment with the Company, the Executive shall
not, without the prior written consent of the Company or as may otherwise be
required by law or legal process (provided that the Executive provides the Company
with prior notice of the contemplated disclosure and reasonably cooperates with
the Company at its expense in seeking a protective order or other appropriate
protection of such information), communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it.

 

13.                               Successors.

 

(a)                                  This Agreement
is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive otherwise than by will or the
laws of descent and distribution. This Agreement shall inure to the benefit of
and be enforceable by the Executive’s legal representatives.

 

(b)                                 This Agreement
shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

 

(c)                                  The Company
will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. As used in this Agreement, “Company”
shall mean the Company as defined and any successor to its business and/or
assets as aforesaid that assumes and agrees to perform this Agreement by
operation of law, or otherwise.

 

10

 

14.                               Disputes.

 

(a)                                  Any dispute or
controversy arising under or in connection with this Agreement may, at the
Executive’s election, be settled by arbitration, conducted before a panel of
three arbitrators in Pasadena, California  in accordance
with the rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitrator’s award in any court having jurisdiction.

 

(b)                                 The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses that the Executive may reasonably incur as a result of any contest
(regardless of the outcome) by the Company, the Executive or others of the
validity or enforceability of, or liability under, any provision of this
Agreement or any guarantee of performance thereof (including as a result of any
contest by the Executive about the amount of any payment pursuant to this
Agreement), plus in each case, interest on any delayed payment at the applicable
Federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that the Company shall have no obligation
to reimburse the Executive for, or pay on behalf of the Executive’s account,
any fees or expenses that the Executive incurs in connection with a contest
initiated by the Executive that is found by a court of competent jurisdiction
or arbiter, as applicable, to be frivolous. In this circumstance, if the Company
has previously paid any fees or expenses, the Executive shall promptly repay to
the Company the amount of such fess and expenses.

 

15.                               Amendment. No provision
of this Agreement may be amended, modified or waived unless such amendment,
modification or waiver shall be authorized by the Board or any authorized
committee of the Board and shall be agreed to in writing, signed by the
Executive and by an officer of the Company thereunto duly authorized;  provided, however, that either
the Board or the applicable committee may amend this Agreement at any time as
necessary to comply with applicable laws and regulations without the Executive’s
written consent prior to a Change of Control; provided,
further, however, that (1) the Company’s unilateral power to amend
this Agreement shall be limited to technical, ministerial, and regulatory
requirements generally applicable to all public company officers, and (2) no
such amendment would constitute Good Reason as presently defined by this Agreement.

 

16.                               Cooperation. The Executive agrees to reasonably
cooperate with the Company at any times in any internal investigation, any
administrative, regulatory or judicial investigation or proceeding or any
dispute with a third party as reasonably requested by the Company (including,
without limitation, the Executive being available to the Company upon reasonable
notice and at reasonable times for interviews and factual investigations,
appearing at the Company’s request upon reasonable notice and at reasonable
times to give testimony without requiring service of a subpoena or other legal
process, delivering to the Company requested information and relevant documents
which are or may come into the Executive’s possession, all at times and on
schedules that are reasonably consistent with the Executive’s other permitted
activities and commitments). The obligations under this Section shall
survive expiration of this Agreement. If the Executive’s cooperation under this
Section is requested after the Executive’s termination of employment, the
Company shall (i) provide the Executive reasonable

 

11

 

advance notice after giving due consideration to the
Executive’s then current employment obligations, and (ii) reimburse the
Executive for all reasonable travel expenses and other reasonable out-of-pocket
expenses upon submission of receipts.

 

17.                               Miscellaneous.

 

(a)                                  This Agreement
shall be governed by and construed in accordance with the laws of the State of
California, without reference to principles of conflict of laws. The captions
of this Agreement are not part of the provisions hereof and shall have no force
or effect. This Agreement may not be amended or modified other than by a
written agreement executed by the parties hereto or their respective successors
and legal representatives.

 

(b)                                 All notices and
all other communications hereunder shall be in writing and shall be deemed to
have been duly given (i) on the date of delivery if delivered by hand, (ii) on
the date of transmission, if delivered by confirmed facsimile, (iii) on
the first business day following the date of deposit if delivered by guaranteed
overnight delivery service, or (iv) on the fourth business day following
the date delivered or mailed by United States registered or certified mail,
return receipt requested, postage prepaid, addressed as set forth below:

 

	
  To the Executive:

  	
   

  	
  To the Company:

  
	
   

  	
   

  	
   

  
	
  Dan L. Batrack

  	
   

  	
  Tetra Tech, Inc.

  
	
  3113
  Mesaloa Lane

  	
   

  	
  3475 East Foothill Boulevard

  
	
  Pasadena,
  CA 91107

  	
   

  	
  Pasadena, CA 91107

  Attention: General Counsel

  

 

or to such other address as
either party shall have furnished to the other in writing in accordance
herewith.

 

(c)                                  The Company and
the Executive intend that the benefits and payments described in this Agreement
shall comply with, or be exempt from, the requirements of Section 409A of
the Code. The Company shall in no event be obligated to indemnify the Executive
for any taxes or interest that may be assessed by the Internal Revenue Service
pursuant to Section 409A of the Code.

 

(d)                                 The invalidity
or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

 

(e)                                  This Agreement
may be executed in one or more counterparts (including via facsimile), each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other parties.

 

12

 

(f)                                    The Company may
withhold from any amounts payable under this Agreement such Federal, state,
local or foreign taxes required to be withheld pursuant to any applicable law
or regulation.

 

(g)                                 The Executive’s
or the Company’s failure to insist upon strict compliance with any provision
hereof or any other provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 6(c)(i)-(vi) of this Agreement, shall not be
deemed to be a waiver of such provision or right or any other provision or
right of this Agreement.

 

(h)                                 The language
used in this Agreement will be deemed to be the language chosen by the parties
hereto to express their mutual intent, and no rule of strict construction
will be applied against any party hereto. Neither the Executive nor the Company
shall be entitled to any presumption in connection with any determination made
hereunder in connection with any arbitration, judicial or administrative
proceeding relating to or arising under this Agreement.

 

(i)                                     The Executive
represents and warrants to the Company that the Executive has the legal right
to enter into this Agreement and to perform all of the obligations on the
Executive’s part to be performed hereunder in accordance with its terms and
that the Executive is not a party to any agreement or understanding, written or
oral, which could prevent the Executive from entering into this Agreement or
performing all of the Executive’s obligations hereunder.

 

(j)                                     The Executive
and the Company acknowledge that this Agreement supersedes all prior agreements
covering the subject matter hereof, and, except as may otherwise be provided
under any other written agreement between the Executive and the Company, the
employment of the Executive by the Company is “at will” and, prior to the
Effective Date, the Executive’s employment and this Agreement may be terminated
by either the Executive or the Company at any time prior to the Effective Date,
in which case the Executive shall have no further rights under this Agreement. From
and after the date hereof, this Agreement shall supersede any other agreement
between the parties with respect to the subject matter hereof.

 

13

 

IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant
to the authorization from its Board of Directors, the Company has caused these
presents to be executed in its name on its behalf, all as of the day and year
first above written.

 

 

	
   

  	
   

  	
  TETRA TECH, INC.

  
	
   

  	
   

  	
   

  
	
  /s/ Dan L. Batrack

  	
   

  	
  /s/ Sam W. Box

  
	
  Dan L. Batrack

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  March 25, 2008

  	
   

  	
  Date:

  	
  March 25, 2008

  
					

 

14

 

EXHIBIT A

FORM OF RELEASE AGREEMENT

 

AGREEMENT AND GENERAL RELEASE

 

Tetra
Tech, Inc., its affiliates, parents, subsidiaries, divisions, successors
and assigns in such capacity, and the current, future and former employees,
officers, directors, trustees and agents thereof (collectively referred to
throughout this Agreement as the “Employer”), and Dan L. Batrack (the “Executive”),
the Executive’s heirs, executors, administrators, successors and assigns
(collectively referred to throughout this Agreement as the “Employee”) agree:

 

1.                                       Last
Day of Employment.  The Executive acknowledges
that [his]/[her] employment with Employer has been terminated and that the
Executive’s last day of employment with Employer is [DATE].
Effective as of [DATE], Executive resigns from the
Executive’s position as                                     and
will not be eligible for any benefits or compensation after [DATE], except as otherwise specifically provided under the
Change of Control Agreement between the Employer and Executive dated «Dated». (the “Change of Control Agreement”)
or under the terms of any other employee benefit plan maintained by the
Employer. The Executive further acknowledges
and agrees that, after [DATE], the
Executive will not represent the Executive as being a director, employee,
officer, trustee, agent or representative of Employer for any purpose. In
addition, effective as of [DATE],
Executive resigns from all offices, directorships, trusteeships, committee memberships
and fiduciary capacities held with, or on behalf of, Employer or any benefit
plans of Employer. These resignations will become irrevocable as set forth in Section 3
below.

 

2.                                       Consideration.  The parties
acknowledge that this Agreement and General Release is being executed in
accordance with Section 11(a)(ii) of the Change of Control Agreement.

 

3.                                       Revocation.  Executive may
revoke this Agreement and General Release for a period of seven (7) calendar
days following the day Executive executes this Agreement and General Release. Any
revocation within this period must be submitted, in writing, to Employer and
state, “I hereby revoke my acceptance of our Agreement and General Release.”  The revocation must be personally delivered
to Employer’s
                                                      ,
and postmarked within seven (7) calendar days of execution of this
Agreement and General Release. This Agreement and General Release shall not
become effective or enforceable until the revocation period has expired. If the
last day of the revocation period is a Saturday, Sunday, or legal holiday in
Pasadena, California, then the revocation period shall not expire until the
next following day which is not a Saturday, Sunday, or legal holiday.

 

4.                                       General
Release of Claim. Subject to the full satisfaction by the
Employer of its obligations under the Change of Control Agreement, Employee
knowingly and voluntarily releases and forever discharges Employer from any and
all claims, causes of action, demands,

 

15

 

fees and liabilities of any
kind whatsoever, whether known and unknown, against Employer, Employee has, has
ever had or may have as of the date of execution of this Agreement and General
Release, including, but not limited to, any alleged violation of:

 

·                  Title VII of the Civil
Rights Act of 1964, as amended;

 

·                  The Civil Rights Act of
1991;

 

·                  Sections 1981 through 1988 of
Title 42 of the United States Code, as amended;

 

·                  The Employee Retirement
Income Security Act of 1974, as amended;

 

·                  The Immigration Reform and
Control Act, as amended;

 

·                  The Americans with
Disabilities Act of 1990, as amended;

 

·                  The Age Discrimination in
Employment Act of 1967, as amended;

 

·                  The Older Workers Benefit
Protection Act of 1990;

 

·                  The Worker Adjustment and
Retraining Notification Act, as amended;

 

·                  The Occupational Safety and
Health Act, as amended;

 

·                  The Family and Medical Leave
Act of 1993;

 

·                  Any wage payment and
collection, equal pay and other similar laws, acts and statutes of the State of
California;

 

·                  Any other federal, state or
local civil or human rights law or any other local state or federal law,
regulation or ordinance;

 

·                  Any public policy, contract,
tort, or common law; or

 

·                  Any allegation for costs,
fees, or other expenses including attorneys’ fees incurred in these matters.

 

Notwithstanding anything
herein to the contrary, the sole matters to which the Agreement and General
Release do not apply are: (i) Employee’s express rights to accrued vested
benefits under any other employee benefit plan, policy or arrangement
maintained by Employer or under COBRA (the “Accrued Amounts”); (ii) Employee’s
rights under the provisions of the Change of Control Agreement which are
intended to survive termination of employment; or (iii) the Employee’s
rights as a stockholder.

 

5.                                       No
Claims Permitted. Employee waives Executive’s right to file
any charge or complaint against Employer arising out of Executive’s employment
with or separation

 

16

 

from Employer before any
Federal, state or local court or any state or local administrative agency,
except where such waivers are prohibited by law.

 

6.                                       Affirmations.  Employee
affirms Executive has not filed, has not caused to be filed, and is not
presently a party to, any claim, complaint, or action against Employer in any
forum. Employee further affirms that the Executive has been paid and/or has
received all compensation, wages, bonuses, commissions, and/or benefits to
which Executive may be entitled and no other compensation, wages, bonuses,
commissions and/or benefits are due to Executive, except for the Accrued
Amounts. The Employee also affirms Executive has no known workplace injuries.

 

7.                                       Cooperation;
Return of Property. Employee agrees to reasonably cooperate with
Employer and its counsel in connection with any investigation, administrative
proceeding or litigation relating to any matter that occurred during Executive’s
employment in which Executive was involved or of which Executive has knowledge.
Employee represents that Executive has returned any and all property belonging
to the Employer, including any confidential information with respect to the Employer
or its operations.

 

8.                                       Governing
Law and Interpretation. This Agreement and General
Release shall be governed and conformed in accordance with the laws of the
State of California  without regard
to its conflict of laws provisions. In the event Employee or Employer breaches
any provision of this Agreement and General Release, Employee and Employer
affirm either may institute an action to specifically enforce any term or terms
of this Agreement and General Release. Should any provision of this Agreement
and General Release be declared illegal or unenforceable by any court of
competent jurisdiction and should the provision be incapable of being modified
to be enforceable, such provision shall immediately become null and void,
leaving the remainder of this Agreement and General Release in full force and
effect. Nothing herein, however, shall operate to void or nullify any general
release language contained in the Agreement and General Release.

 

9.                                       No
Admission of Wrongdoing. Employee agrees neither this
Agreement and General Release nor the furnishing of the consideration for this
Release shall be deemed or construed at any time for any purpose as an
admission by Employer of any liability or unlawful conduct of any kind.

 

10.                                 Amendment. This Agreement
and General Release may not be modified, altered or changed except upon express
written consent of both parties wherein specific reference is made to this
Agreement and General Release.

 

11.                                 Entire
Agreement. This Agreement and General Release sets forth the
entire agreement between the parties hereto and fully supersedes any prior
agreements or understandings between the parties; provided, however,
that notwithstanding anything in this Agreement and General Release, the
provisions in the Change of Control Agreement which are intended to survive
termination of the Executive’s employment shall survive and continue in full
force and effect. Employee acknowledges Executive has not relied on any
representations,

 

17

 

promises, or agreements of
any kind made to Executive in connection with Executive’s decision to accept
this Agreement and General Release.

 

EMPLOYEE HAS BEEN ADVISED
THAT EXECUTIVE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW THIS AGREEMENT
AND GENERAL RELEASE AND HAS BEEN ADVISED IN WRITING TO CONSULT WITH AN ATTORNEY
PRIOR TO EXECUTION OF THIS AGREEMENT AND GENERAL RELEASE.

 

EMPLOYEE AGREES ANY
MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND GENERAL
RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE (21)
CALENDAR DAY CONSIDERATION PERIOD.

 

HAVING ELECTED TO EXECUTE
THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES SET FORTH HEREIN,
AND TO RECEIVE THE SUMS AND BENEFITS SET FORTH IN THE SEVERANCE AGREEMENT,
EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS
AGREEMENT AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS
EXECUTIVE HAS OR MIGHT HAVE AGAINST EMPLOYER.

 

IN WITNESS WHEREOF, the
parties hereto knowingly and voluntarily executed this Agreement and General
Release as of the date set forth below:

 

	
   

  	
  TETRA TECH, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: [NAME]

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

18

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