Document:

Third Amended and Restated Investors' Rights Agreement

 Exhibit 10.60 
  
 OCCAM NETWORKS, INC. 
  
 THIRD AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT 
  

This Third Amended and Restated Investors’ Rights Agreement (this “Agreement”) is made and entered into as of December
    , 2004 by and among Occam Networks, Inc., a Delaware corporation (the “Company”); the undersigned purchasers (each, an “Investor” and collectively, the “Investors”) of
the Company’s Series A Preferred Stock (as defined herein) originally issued pursuant to the Series A Preferred Stock Purchase Agreement dated as of December 19, 2002 (the “2002 Purchase Agreement”) and/or shares of the
Company’s Series A-2 Preferred Stock (as defined herein) issued pursuant to the Series A-2 Preferred Stock Purchase Agreement (the “2003 Purchase Agreement”) dated as of November 19, 2003 as amended by Amendment No. 1 to Series
A-2 Preferred Stock Purchase Agreement of even date herewith (the “Amendment” and together with the 2003 Purchase Agreement, the “Amended Purchase Agreement”); and Hercules Technology Growth Capital, Inc., a
Maryland corporation (“Hercules”). This Agreement amends and restates in its entirety the Second Amended and Restated Investors’ Rights Agreement dated as of March 8, 2004 (the “Prior Agreement”) in
accordance with Section 22(e) thereof and shall become effective at such time as it has been executed and delivered by the Company and the requisite Investors (as constituted pursuant to the Prior Agreement) specified in such Section 22(e).

  
 Recitals 
  
 WHEREAS, the Company proposes to enter a Senior Loan and Security Agreement
(the “Hercules Loan Agreement”) with Hercules and, in connection therewith, will issue to Hercules the Hercules Common Warrant and the Hercules Preferred Warrant, each as defined herein. 
  
 WHEREAS, as an inducement to Hercules to enter the Warrant Agreement, the
Company and the Investors have agreed to amend and restate the Prior Agreement as set forth herein and to make Hercules a party hereto. 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth, the Investors, the Company agree that the Prior
Agreement is hereby amended and restated, and replaced in its entirety, as follows, and Hercules agrees to become a party to this Agreement on the terms and conditions set forth herein: 
  
 1. Definitions. As used in this Agreement: 
  
 (a) “Alta Warrant” shall have the meaning set forth in the Amendment. 
  
 (b) “Common Stock” shall mean the Company’s common
stock, par value $0.001 per share. 
  
 (c)
“Closing” shall mean the date of the initial sale of shares of Series A-2 Preferred pursuant to the Amendment. 

 (d) “Exchange Act” shall mean the United States Securities Exchange Act of 1934, as
amended. 
  
 (e) “Hercules Common Warrant” shall
mean the warrant to acquire shares of Common Stock issued to Hercules on the date hereof in connection with the Hercules Loan Agreement. 
  
 (f) “Hercules Preferred Warrant” shall mean the warrant to acquire shares of Series A-2 Preferred issued to Hercules on the date hereof
in connection with the Hercules Loan Agreement. 
  
 (g)
“Holder” shall mean (i) an Investor; (ii) Hercules; or (iii) a transferee to whom registration rights granted under this Agreement are assigned in accordance with this Agreement. 
  
 (h) “New Securities” shall mean any capital stock (including
Common Stock and/or Preferred Stock) of the Company whether now authorized or not, and rights, options or warrants to purchase such capital stock, and securities of any type whatsoever that are, or may become, convertible into such capital stock and
that are issued after the Closing; provided, however, that “New Securities” shall in no event be deemed to include: (i) any shares of capital stock, including any rights, options, or warrants to purchase shares of capital
stock, that have been subject to the rights contained in Section 12 of this Agreement where such rights have either been exercised or waived or have expired in accordance with this Agreement; (ii) any securities issued pursuant to the 2003 Purchase
Agreement or the Amended Purchase Agreement; (iii) the Hercules Common Warrant, the Hercules Preferred Warrant, and any securities issued or issuable upon exercise thereof (including any Common Stock issued or issuable upon conversion of the shares
of Series A-2 Preferred issuable upon exercise of the Hercules Preferred Warrant); (iv) the Alta Warrant and any equity securities of the Company issued or issuable upon exercise thereof (including any Common Stock issuable upon conversion of the
shares of Series A-2 Preferred issuable upon exercise of the Alta Warrant); (v) rights to acquire shares of Series A-2 Preferred offered pursuant to the Rights Offering and any shares of Series A-2 Preferred sold and issued in accordance therewith;
(vi) any shares of the Company’s capital stock issued or issuable upon conversion of the Series A-2 Preferred or any other right, option, or warrant outstanding as of the date of this Agreement (provided such other right, option, or warrant is
described in Section 3.3 of the 2003 Purchase Agreement) to acquire shares of the Company’s capital stock; (vii) securities issued by the Company in one or more transactions where the securities issued in the transaction or transactions have
been unanimously approved by directors present at a properly noticed meeting of the board of directors or unanimously approved by a written consent of the directors as securities that should not be deemed to be “New Securities”; (viii)
securities offered to the public by the Company pursuant to a registration statement filed under the Securities Act; (ix) securities issued to customers, commercial partners (including technology partners, marketing partners or distribution
partners), vendors, lenders, and equipment lessors of the Company, other than in a transaction whose principal purpose is to raise additional working capital for the Company, provided that such issuance is unanimously approved by directors present
at a properly noticed meeting of the board of directors or unanimously approved by a written consent of the directors; (x) securities issued in connection with the Company’s acquisition of any business, product, or technology by way of merger,
asset purchase, reorganization, or other means, 
  

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 provided that such issuance is unanimously approved by directors present at a properly noticed meeting of the board of
directors or unanimously approved by a written consent of the directors; (xi) shares of Common Stock (or options, warrants or rights therefor) granted or issued hereafter to employees, officers, directors, contractors, consultants or advisers to,
the Company or any subsidiary pursuant to incentive agreements, stock purchase or stock option plans, stock bonuses or awards, warrants, contracts or other arrangements that are approved by the Company’s board of directors or by the
compensation committee of the board of directors; and (xii) securities issued in connection with any proportionate stock split, stock dividend or distribution, recapitalization, or similar event by the Company. 
  
 (i) The terms “register,” “registered,” and
“registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement. 

 
 (j) “Registration Expenses” shall mean all expenses
incurred in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and
expenses, expenses of any regular or special audits incident to or required by any such registration, and the reasonable fees and disbursements of one special counsel for the Holders. 
  
 (k) “Registrable Securities” shall mean for each Holder, (i) shares of Common Stock of the Company issued
to such Holder upon conversion of the Series A Preferred; (ii) shares of Common Stock of the Company issued or issuable to such Holder upon conversion of the Series A-2 Preferred; (iii) shares of Common Stock of the Company issued or issuable to
such Holder upon conversion of the Series A-2 Preferred issued or issuable upon exercise of the Alta Warrant and/or the Hercules Preferred Warrant; (iv) shares of Common Stock issued or issuable upon exercise of the Hercules Common Warrant; and (v)
any Common Stock issued as a dividend or other distribution with respect to or in exchange for or in replacement of the shares referenced in (i), (ii), (iii), or (iv) above; provided, however, that such shares of Common Stock shall
cease to be Registrable Securities at such time as (i) they have been registered for resale pursuant to a prospectus included in the effective registration statement contemplated pursuant to Section 2 hereof, which registration statement has been
effective for the periods specified in Section 2(b) and 2(c), or (ii) they are otherwise available for resale under Rule 144 of the Securities Act within a single 90 day period. 
  
 (l) “Rights Offering” shall mean the offer, sale, and/or issuance of rights to purchase shares of Series
A-2 Preferred to stockholders of the Company pursuant to a registration statement filed with and declared effective by the SEC, as contemplated by Section 2.1(f) of the 2003 Purchase Agreement, such Rights Offering to be effected after the Closing
on terms and conditions to be approved by the Company’s Board of Directors. 
  
 (m) “SEC” shall mean the United States Securities and Exchange Commission. 
  
 (n) “Securities Act” shall mean the United States Securities Act of 1933, as amended. 
  

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 (o) “Series A Preferred Stock” or “Series A Preferred” shall mean the
Series A Convertible Preferred Stock of the Company, par value $0.001 per share, issued pursuant to the 2002 Purchase Agreement, which Series A Preferred is no longer outstanding and of which no shares of authorized Preferred Stock of the Company
are currently designated. 
  
 (p) “Series A-2 Preferred
Stock” or “Series A-2 Preferred” shall mean the Series A-2 Convertible Preferred Stock of the Company, par value $0.001 per share. 
  
 (q) “Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of
Registrable Securities. 
  
 (r) “Significant
Holder” shall mean a Holder who holds at least at least 100,000 shares of Series A-2 Preferred (subject to adjustments for stock splits, stock dividends, reverse stock splits and the like), or at least such number of shares of Common Stock
as were in fact issued upon conversion of 100,000 shares of Series A-2 Preferred Stock (each subject to adjustments for stock splits, stock dividends, reverse stock splits and the like). 
  
 (s) “Stand-off Investor” shall mean any Investor (other than Hercules). 
  
 2. Holder Registration. 
  
 (a) The Company will use commercially reasonable efforts to cause the
Registrable Securities held by the Holders to be registered under the Securities Act so as to permit the resale thereof, and in connection therewith shall prepare and file with the SEC in accordance with Section 2(b) below a registration statement
on such form as may then be available to effect the registration of the Registrable Securities. The offering made pursuant to such registration shall not be underwritten. 
  
 (b) The Company shall (i) prepare and file with the SEC the registration statement in accordance with Section 2 hereof with
respect to the Registrable Securities at such time as the Company’s Board of Directors shall determine appropriate (in no event to be filed later than March 31, 2005) and shall use commercially reasonable efforts to cause such registration
statement to become effective as promptly as practicable after filing and to keep such registration statement effective until the sooner to occur of (A) the date on which all Registrable Securities included within such registration statement have
been sold; (B) the date on which Holders of all Registrable Securities are able to sell such Registrable Securities immediately without restriction pursuant to the volume limitation provisions of Rule 144 under the Securities Act within a single 90
day period, provided, however, that the Company shall provide each Holder with 10 trading days’ notice before rescinding the effectiveness of such registration statement pursuant to this subparagraph 2(b)(i)(B); or (C) two years
following the effective date of the registration statement; (ii) in the event the SEC determines not to review such registration statement, request the declaration of the effectiveness of such registration statement as of a date within 5 days of
such determination by the SEC; (iii) prepare and file with the SEC such amendments to such registration statement and amendments or supplements to the prospectus used in connection therewith as may be necessary to comply with the provisions of the
Securities Act with respect to the sale or other disposition of all Registrable Securities to be registered by such registration statement; (iv) furnish to each Holder such number of 
  

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 copies of any prospectus (including any amended or supplemented prospectus) in conformity with the requirements of the
Securities Act, and such other documents, as such Holder may reasonably request in order to effect the offering and sale of the Registrable Securities to be offered and sold, but only while the Company shall be required under the provisions hereof
to cause the registration statement to remain effective; (v) use commercially reasonable efforts to register or qualify the Registrable Securities covered by such registration statement under the securities or blue sky laws of such jurisdictions as
each Holder shall reasonably request (provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such jurisdiction where it
has not been qualified), and do any and all other acts or things which may be necessary or advisable to enable each Holder to consummate the public sale or other disposition of such Registrable Securities in such jurisdictions; and (vi) notify each
Holder, promptly after it shall receive notice thereof, of the date and time the registration statement and each post-effective amendment thereto has become effective or a supplement to any prospectus forming a part of such registration statement
has been filed; provided, further, that the Company shall not be obligated to take any action to effect any such registration, qualification or compliance pursuant to this Section 2 after the Company has effected one such registration
pursuant to this Section 2 and such registration has been declared or ordered effective. 
  
 (c) Notwithstanding subsection (b) above, if upon a termination of the effectiveness of the registration statement pursuant to Section 2(b), any Holder(s) would not otherwise be able to sell all Registrable Securities
then held by such Holder within a single 90-day period under Rule 144, the Company shall take such actions as may be necessary, whether by filing a new registration statement or amending an existing registration statement, to extend the
effectiveness of such registration statement and keep such registration statement effective until such time as all such shares may be sold by such Holder under Rule 144 within a single 90-day period. 
  
 (d) Each Investor hereby irrevocably waives any breach, default, or other
violation (and any related remedies) that may have existed under the Prior Agreement arising from any failure to register Registrable Securities on or before the date specified in Section 2(a) of the Prior Agreement. Each Investor further agrees not
to assert any claim against the Company with respect to any such breach, default, or violation under the Prior Agreement. 
  
 3. Piggyback Registration. 
  
 (a) The Company may from time to time determine to register for sale shares of Common Stock for its own account, other than (i) a registration relating
solely to employee benefit plans, (ii) a registration relating solely to a transaction pursuant to Rule 145 promulgated under the Securities Act, or (iii) a registration relating to the Rights Offering, and in connection with such determination,
shall file with the SEC a registration statement to register such Common Stock (a “Registered Sale”). In the event of such determination, the Company will give to each Holder written notice thereof at least 20 days (but not more
than 60 days) prior to the filing of such registration statement, and will include in the Registered Sale (and any related qualification under blue sky laws or other related compliance) all the Registrable Securities specified by the Holders in
their written request or requests to the Company, made within 15 days after receipt of such written notice from the Company, subject, however, to the marketing limitation set forth in subsection (b) below. If the registration statement under which
the Company gives notice under this subsection (a) 
  

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 is for an underwritten offering, the Company shall so advise the Holders. A Registered Sale, including (if applicable)
the form of underwriting agreement to be entered into by the Company, the underwriter(s) and any selling stockholders, shall be on customary terms. The underwriter(s) for an underwritten offering shall be selected by the Company in its sole
discretion. 
  
 (b) The right of any Holder to registration
pursuant to this section shall be conditioned upon such Holder’s participation in the Registered Sale and the inclusion of Registrable Securities in the Registered Sale to the extent provided herein. All Holders shall (together with the Company
and the other holders distributing their securities through the Registered Sale) enter into an underwriting agreement in customary form with the managing underwriter. Notwithstanding any other provision of this section, if the managing underwriter
determines that marketing factors require a limitation of the number of shares to be underwritten, the managing underwriter may limit the Registrable Securities to be included in such registration and underwriting; provided, however,
that (i) all shares that are not Registrable Securities and are held by other selling stockholders, including, without limitation, persons who are employees or directors of the Company (or any subsidiary of the Company), shall first be excluded from
such registration and underwriting before any Registrable Securities are so excluded, (ii) all securities requested to be included by the Holders shall share pro rata in the number of shares to be excluded from such registration, such sharing to be
based on the respective numbers of shares owned by each stockholder, and (iii) any such limitation shall not prevent the Holders of Registrable Securities requesting to be included in such registration from including Registrable Securities
representing up to 30% of the total number of shares registered thereby. In such event, the Company shall so advise all Holders of Registrable Securities which would otherwise be registered pursuant hereto, and the number of shares of Registrable
Securities that may be included in the registration shall be allocated among the Holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities requested to be included by such Holders in accordance with
subsection (a) above. To facilitate the allocation of shares in accordance with the above provision, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest 100 shares. If any Holder disapproves of the
terms of the Registered Sale, he or she may elect to withdraw therefrom by written notice to the Company and the managing underwriter. If a Holder decides not to include all of its Registrable Securities in any registration statement filed by the
Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement as may be filed by the Company, all upon the terms hereof. 
  
 (c) Termination of Piggyback Rights. Notwithstanding any other
provision of this Agreement, the Company’s obligations pursuant to this Section 3 shall terminate at such time as it has effected two (2) registrations in accordance herewith. 
  
 4. Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration
initiated by it under Section 3 prior to the effectiveness of the registration whether or not any Holder has elected to include securities in such registration. 
  

5. Notice to the Company; Suspension of Prospectus. Each Holder shall provide the compliance officer designated by the Company with written
notice at least two business days prior to any transfer, sale or other disposition of Registrable Securities under any registration statement filed pursuant to Section 2 of this Agreement (a “Requesting Holder”). The Company may by
written 
  

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 notice to such Requesting Holder delivered within two business days of receipt of such notice restrict the proposed
offer, sale, transfer, or disposition of such Registrable Securities if the Company, in its reasonable judgment, has determined that such transactions would require public disclosure by the Company of material non-public information that is not
included in such registration. The notice referred to in the preceding sentence shall set forth the Company’s good faith estimate of the number of days during which the Requesting Holder is to refrain from the proposed offer, sale, transfer of
disposition of Registrable Securities. Upon receipt of such notice, the Requesting Holder agrees not to effect any offer, sale, transfer, or other disposition of Registrable Securities pursuant to such registration statement for the period of days
set forth in the Company’s notice. In the event the Company determines that the Requesting Holder is able to effect a transfer, sale or other disposition as requested prior to the date the Company estimated, the Company shall provide an updated
notice to the Requesting Holder. In any event, in the event of a delivery of the notice described above by the Company, for a period of 15 trading days following the expiration of the time period stated in the notice, a Holder may effect an offer,
sale, transfer or other disposition of Registrable Securities without restriction under this Section 5. Notwithstanding the foregoing, the Company may not, without the consent of the holders of a majority of the then-outstanding Registrable
Securities, restrict the transfer, sale or other disposition of the Registrable Securities under any registration statement filed pursuant to this Agreement for more than 20 consecutive trading days or 90 trading days during any 365-day period.

  
 6. Indemnification. 
  
 (a) The Company will indemnify and hold harmless each Holder, each of its
officers, directors, partners, members, stockholders, legal counsel and any underwriter (as defined in the Securities Act) for the Holder, and each person controlling such Holder or underwriter within the meaning of Section 15 of the Securities Act,
with respect to which registration, qualification or compliance has been effected pursuant to this Agreement against all expenses, claims, losses, damages or liabilities (or actions in respect thereof), including any of the foregoing incurred in
settlement of any litigation, commenced or threatened, arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus, offering circular or other document, or any
amendment or supplement thereto, incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of the Securities Act or the Exchange Act or any rule or regulation promulgated thereunder applicable to the Company or any state
securities law applicable to the Company in connection with any such registration, qualification or compliance, and the Company will reimburse (on an as incurred basis), each Holder, each of its officers, directors, partners, members, and each
person controlling such Holder, for any reasonable legal and other expenses incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action; provided, however, that the Company will
not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in conformity with
written information with regard to a Holder furnished to the Company by such Holder for use by the Company in connection with a registration as required by Section 8 hereof; and provided further, however, that the Company will
not be liable to any such person or entity with respect to any such untrue statement or omission 
  

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 or alleged untrue statement or omission made in any preliminary prospectus that is corrected in the final prospectus
filed with the SEC pursuant to Rule 424(b) promulgated under the Securities Act (or any amendment or supplement to such prospectus) if the person asserting any such loss, claim, damage or liability purchased securities but was not sent or given a
copy of the prospectus (as amended or supplemented) at or prior to the written confirmation of the sale of such securities to such person in any case where such delivery of the prospectus (as amended or supplemented) is required by the Securities
Act, unless such failure to deliver the prospectus (as amended or supplemented) was a result of the Company’s failure to provide such prospectus (as amended or supplemented). 
  
 (b) Each Holder shall indemnify the Company, each of its directors and officers and each person who controls the Company
within the meaning of Section 15 of the Securities Act against all claims, losses, damages, and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in
any such registration statement, prospectus, offering circular or other document, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, and will reimburse the Company and such directors, officers and partners and members, persons, or control persons of the Company for any reasonable legal or other expenses incurred in connection
with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information with regard to the Holder furnished to the Company by such Holder for use by the Company in connection with a
registration as required by Section 8 hereof. The liability of a Holder under this Section 6(b) shall not exceed the proceeds from the offering received by such Holder, prior to deduction of any commissions, transfer taxes or other selling expenses
incurred with respect to such sale. 
  
 (c) Each party entitled to
indemnification under this Section 6 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge
of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided, that counsel for the Indemnifying Party, who shall conduct the
defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided
further, however, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 6 unless the failure to give such notice is materially
prejudicial to an Indemnifying Party’s ability to defend such action (and then only to the extent of such prejudice). No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim
or litigation. Any Indemnified Party shall reasonably cooperate with the Indemnifying Party in the defense of any claim or litigation brought against such Indemnified Party. 
  

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 (d) If the indemnification provided for in this Section 6 is for any reason not available to an
Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with
the statements or omissions that resulted in such loss, liability, claim, damage or expense as will as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by
reference to, among other things, whether the untrue or the alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The liability of a Holder under this Section 6(d) shall not exceed the proceeds from the offering received by such
Holder less any amounts paid pursuant to Section 6(b), prior to deduction of any commissions, transfer taxes or other selling expenses incurred with respect to such sale. 
  
 7. Expenses. The Company shall bear all Registration Expenses incurred in connection with (i) a registration declared
effective by the SEC pursuant to Section 2 here and (ii) of any registration, qualification or compliance pursuant to Section 3 hereof. All Selling Expenses relating to securities so registered shall be borne by the holders of such securities pro
rata on the basis of the number of shares of securities so registered on their behalf, provided, that any applicable taxes with respect to stock sold by a particular Holder shall be borne entirely by such Holder. 
  
 8. Information by Holder. Each Holder shall furnish to the Company
such information regarding such Holder, the Registrable Securities held by it, the manner in which such Holder holds any securities of the Company and the distribution proposed by such Holder as the Company may reasonably request in writing and as
shall be reasonably required in connection with any registration, qualification or compliance referred to in this Agreement. 
  
 9. Reports Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of the
SEC that may at any time permit a Holder to sell securities of the Company to the public without registration, the Company agrees to use commercially reasonable efforts to: 
  
 (a) make and keep public information available, as those terms are understood and defined in Rule 144, at all times after
the date hereof; 
  
 (b) file with the SEC in a timely manner all
reports and other documents required of the Company under the Securities Act and the Exchange Act; and 
  
 (c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it
has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such
other information as may be reasonably requested to avail any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration or pursuant to such form. 
  

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 10. Limitation on Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Agreement may not be assigned or transferred, except that such right is assignable by each Holder to (i) an “affiliate” of such Holder (as defined in Rule 12b-2 under the Exchange Act), or (ii) to a
partner, active or retired of such Holder. As a condition to any permitted transfer hereunder, such transferee shall agree in writing for the benefit of the Company to be bound by this Agreement. 
  
 11. Limitation on Subsequent Registration Rights. 
  
 (a) From and after the date of this Agreement, the Company shall not,
without the prior written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company which would allow such holder or
prospective holder (i) to include such securities in any registration filed under Section 2 or Section 3 hereof, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to
the extent that the inclusion of his securities will not reduce the amount of the Registrable Securities of the Holders which are included, or (ii) to make a demand registration which could result in such registration statement being declared
effective prior to the date that is 120 days after the effective date of a registration effected pursuant to Section 2 hereof. 
  
 (b) Notwithstanding the foregoing, each Holder acknowledges and agrees that the Company has granted Silicon Valley Bank pari passu registration rights
pursuant to Section 3.3 of the Warrant to Purchase Stock dated as of June 16, 2003. Each Holder acknowledges and agrees that such registration rights shall remain effective after the date hereof and hereby waives any breach, default, or other
violation that may have existed under the First Agreement in connection with the grant of such registration rights and any remedy or remedies that may exist with respect thereto. 
  
 12. Right of Participation. The Company hereby grants to each Significant Holder the right to purchase its pro rata
share of any New Securities which the Company may, from time to time, propose to sell and issue. A Significant Holder’s pro rata share, for purposes of this right of participation, is the ratio that the number of shares of Common Stock issued
or issuable upon conversion of the Series A Preferred Stock or the Series A-2 Preferred Stock owned by such Significant Holder, immediately prior to the issuance of New Securities, bears to the total number of shares of Common Stock outstanding as
reported in the Company’s most recent Form 10-K or Form 10-Q, as the case may be, filed with the SEC under the Exchange Act. This right to participate shall be subject to the following provisions: 
  
 (a) In the event the Company proposes to undertake an issuance of New
Securities, it shall give each Significant Holder written notice of its bona fide intention, describing the type of New Securities, and their price and the general terms upon which the Company proposes to issue the same. Each Significant Holder
shall have ten days after any such notice is effective as determined pursuant to Section 22(b) hereof to agree to purchase such Significant Holder’s pro rata share of such New Securities for the price and upon the terms specified in the notice
by giving written notice to the Company and stating therein the quantity of New Securities to be purchased. 
  

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 (b) In the event the Significant Holders fail to exercise fully the right to participate within said ten
day period, the Company shall have 90 days thereafter to sell or enter into an agreement (pursuant to which the sale of New Securities covered thereby shall be closed, if at all, within 30 days from the date of said agreement) to sell the New
Securities respecting which the Significant Holders’ right to participate set forth herein was not exercised, at a price and upon terms no more favorable to the purchasers thereof than specified in the Company’s notice to Significant
Holders pursuant to subsection (a) above. In the event the Company has not sold within such 90-day period or entered into an agreement to sell the New Securities in accordance with the foregoing within 30 days from the date of said agreement, the
Company shall not thereafter issue or sell any New Securities, without first again offering such securities to the Significant Holders in the manner provided in subsection (a) above. 
  
 (c) Each Significant Holder (as constituted pursuant to the Prior Agreement) hereby waives the application of this provision
pursuant to the First Agreement, and waives all applicable notice provisions relating thereto, in connection with the sale and issuance of (i) Series A-2 Preferred pursuant to the 2003 Purchase Agreement or the Amended Purchase Agreement; (ii) the
Alta Warrant pursuant to the Amendment; and (iii) the Convertible Notes and the Commitment Warrants, when and if issued. 
  
 13. Limitation on Assignment of Right to Participate. The rights of the Significant Holders to participate in sales of New Securities may not be
assigned or transferred, except that such right is assignable by each Significant Holder to (i) an “affiliate” of such Significant Holder (as defined in Rule 12b-2 under the Exchange Act) or (ii) to a partner (active or retired), parent,
child or spouse of such Holder, or to a trust for the direct or indirect benefit of any of the foregoing, provided, that in the case of either (i) or (ii) such transferee together with its affiliates holds after such transfer at least 66,667
shares of Series A Preferred Stock or 50,000 shares of Series A-2 Preferred Stock or at least the number of shares of Common Stock as were issued upon conversion of 66,667 shares of Series A Preferred Stock or 50,000 shares of Series A-2 Preferred
Stock (subject, in each case, to adjustments for stock splits, stock dividends, reverse stock splits and the like). 
  
 14. Termination of Right to Participate. The rights of the Significant Holders to participate in sales of New Securities shall terminate upon the
earlier of (i) the second anniversary of this Agreement or (ii) when such Holder ceases to be a Significant Holder. 
  
 15. Transfer Restrictions of the Registrable Securities. Each Holder further agrees not to sell or otherwise make any disposition or transfer of
all or any portion of the Registrable Securities held by such Holder except (i) to an “affiliate” of such Holder (as defined in Rule 12b-2 under the Exchange Act), or (ii) to a partner (active or retired), parent, child or spouse of such
Holder, or to a trust for the direct or indirect benefit of any of the foregoing (and in each case under subsection (i) and (ii) hereof, as a condition to transfer, such transferee shall agree in writing for the benefit of the Company to be bound by
this Agreement), or unless: 
  
 (a) There is then in effect a
registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or 
  

 -11- 

 (b) Such Holder shall have notified the Company of the proposed disposition and shall have furnished the
Company with a detailed statement of the circumstances surrounding the proposed disposition, and, such Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require
registration of such shares under the Securities Act. 
  
 Notwithstanding the foregoing, a Holder may, without restriction, transfer all or any portion of such Holder’s Registrable Securities (i) pursuant to a statutory merger or statutory consolidation of the Company with or into another
corporation or corporations in which the stockholders of the Company receive distributions in cash or securities of another entity or entities as a result of such transaction, and in which the stockholders of the Company, immediately prior to such
merger or consolidation hold, immediately after such merger or consolidation, less than a majority of the outstanding voting securities of the surviving or successor corporation or its parent, (ii) pursuant to the winding up and dissolution of the
Company, (iii) pursuant to a registration effected in accordance with Section 2 or Section 3 hereof, or (iv) in compliance with Rule 144. 
  
 16. Restrictive Legends. Each certificate representing Registrable Securities shall (unless otherwise permitted by the provisions of this
Agreement) be stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applicable state securities laws): 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION
OTHERWISE COMPLIES WITH THE ACT. 
  
 COPIES OF THE AGREEMENT
COVERING THE PURCHASE OF THESE SHARES AND RESTRICTING THEIR VOTING AND TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICE OF THE
COMPANY. 
  
 17. Market Stand-Off Agreement. Each Stand-off
Investor and any permitted transferee hereunder agrees, in connection with the first registration of the Company’s securities in connection with an underwritten public offering following the date hereof, upon request of the Company or the
underwriters managing any underwritten offering of the Company’s securities, not to sell, make any short sale of, loan, grant any option for the purchase of or otherwise dispose of any securities of the 
  

 -12- 

 Company without the prior written consent of the Company or such underwriters, as the case may be, for such period of
time (not to exceed 180 days) from the effective date of such registration as the Company or the underwriters may specify; provided that (i) all officers and directors of the Company then holding capital stock of the Company and (ii) all
stockholders holding in the aggregate at least 5% of the fully-diluted equity securities of the Company are bound by similar agreements. The foregoing restriction shall not apply to any securities of the Company held by an Investor that are included
in such registration. Each Stand-off Investor agrees that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce the provisions of this Section. Notwithstanding any other provision of this Agreement,
the Company may assign the obligations of each Stand-off Investor under this Section 17 to any underwriter of the Company’s securities. 
  
 18. Covenant Against Indebtedness. The Company agrees, that prior to December 19, 2005, the approval of the Holders of two-thirds of the then
outstanding “Investor Securities” (as defined below) will be required for: (i) any debt financing, including convertible debt financings, in excess of $750,000, in the aggregate, other than (a) financing for the purchase or lease of
capital equipment that is secured by the capital equipment, (b) accounts receivable financing that is secured by the accounts receivable of the Company, (c) normal trade debt, (d) borrowings under the Loan and Security Agreement dated as of June 16,
2003 between the Company and Silicon Valley Bank (the “SVB Loan Agreement”), (e) borrowings under the Hercules Loan Agreement; or (ii) any grant of a security interest in the intellectual property of the Company.
“Investor Securities” shall mean the Series A Preferred Stock and Series A-2 Preferred Stock issued pursuant to the 2002 Purchase Agreement, 2003 Purchase Agreement and the Amended Purchase Agreement, respectively, and any Common
Stock issued upon conversion thereof, or as a dividend, distribution, exchange or replacement in respect thereof; provided, however, that “Investor Securities” shall not include any shares of Common Stock that are transferred
to a person or entity that is not an “Investor” under the 2002 Purchase Agreement or the 2003 Purchase Agreement or a partner (including former partners) or affiliate of the same. Each holder of Investor Securities hereby waives any
breach, default, or other violation that may exist under the First Agreement or the Prior Agreement with respect to the SVB Loan Agreement and any remedy or remedies that may exist with respect thereto. 
  
 19. Negative Covenants. 
  
 (a) The Company agrees that the approval of the Holders of two-thirds of the
then outstanding A-2 Securities will be required to (i) increase to the number of shares designated by the Company’s Certificate of Designation as Series A-2 Preferred Stock; (ii) designate, authorize, or issue, or obligate itself to designate,
authorize, or issue, any equity security (including any other security convertible into or exercisable for any such equity security) having a preference over, or being on a parity with, the Series A-2 Preferred Stock with respect to dividends,
liquidation or redemption (other than issuances of Series A-2 Preferred Stock pursuant to the 2003 Purchase Agreement and the Amendment, issuances of the Convertible Notes, and in accordance with the Rights Offering); (iii) pay any dividend or make
any distribution upon any share or shares of Preferred Stock or Common Stock of the Company; (iv) redeem, purchase or otherwise acquire (or pay into or set aside for a sinking fund for such purpose) any share or shares of Preferred Stock or Common
Stock of the Company; provided, however, that this restriction shall not apply to the 
  

 -13- 

 repurchase of shares of Common Stock from employees, officers, directors, consultants or other persons performing
services for the Company or any subsidiary pursuant to agreements under which the Company has the option to repurchase such shares upon the occurrence of certain events, such as the termination of employment or service, or pursuant to a right of
first refusal. 
  
 (b) “A-2 Securities” shall
mean shares of Series A-2 Preferred Stock issued pursuant to the 2003 Purchase Agreement and the Amendment or upon exercise of the Alta Warrant. 
  
 (c) The Company acknowledges and agrees that it would be impossible to measure in money the damages a holder of A-2 Securities may incur in the event the
Company fails to comply with its obligations under this Section 19, and in the event of such failure to comply, a holder of A-2 Securities will not have an adequate remedy at law for damages. Accordingly, with respect only to compliance with this
Section 19, the Company hereby agrees that injunctive relief or other equitable relief, in addition to remedies at law for damages, is the appropriate remedy for any such failure, and the Company will not oppose the granting of such relief on the
basis that such holders have an adequate remedy at law. 
  
 20.
Covenant About Investment Advisors Act. The Company agrees that it will take such actions as may from time to time be necessary to insure that the Company does not become subject to the Investment Advisors Act of 1940, as amended. 

 
 21. Covenants of the Investors. Each Investor agrees that it will
not, without the written consent of Alta California Partners III, L.P., effect or permit any person under the control of such Investor to effect any Series A-2 Consent (as defined herein) that would reasonably be expected to result in a Series A-2
Event (as defined herein). For purposes of this Agreement, (i) a “Series A-2 Event” means either (A) the automatic conversion into Common Stock of the outstanding shares of Series A-2 Preferred pursuant to Section 6(b) of the
Company’s Certificate of Designation of Series A-2 Convertible Preferred Stock as filed with the Delaware Secretary of State (the “Certificate of Designation”) or (B) the waiver of the treatment of any specified transaction as
a “Liquidation” pursuant to Section 4(b) of the Certificate of Designation, and (ii) a “Series A-2 Consent” shall mean the voting of shares of Series A-2 Preferred held by such Investor, the submission of any proxy
with respect to the voting of Series A-2 Preferred held by such Investor, or the execution or delivery of any written consent with respect to any shares Series A-2 Preferred held by such Investor. Notwithstanding any other provision of this
Agreement imposing restrictions on transfer, each Investor agrees that it will not sell, pledge, hypothecate, or otherwise transfer any shares of Series A-2 Preferred unless the transferee thereof agrees to be bound by the provisions of this Section
21. Each Investor acknowledges and agrees that it would be impossible to measure in money the damages that Alta may incur in the event such Investor fails to comply with its obligations under this Section 21, and in the event of such failure to
comply, Alta will not have an adequate remedy at law for damages. Accordingly, with respect only to compliance with this Section 21, each Investor hereby agrees that injunctive relief or other equitable relief, in addition to remedies at law for
damages, is the appropriate remedy for any such failure, and no Investor will oppose the granting of such relief on the basis that Alta has an adequate remedy at law. 
  

 -14- 

 22. Miscellaneous. 
  
 (a) Third Parties. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than
the parties to this Agreement, and their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 
  
 (b) Governing Law. This Agreement shall be construed in accordance with, and governed in all respects by, the laws of
the State of California, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. With respect to any disputes arising out of or related to this Agreement, the parties consent to the exclusive
jurisdiction of, and venue in, the state courts in the County of Santa Clara in the State of California (or in the event of exclusive federal jurisdiction, the courts of the Northern District of California). 
  
 (c) Severability. If one or more provisions of this Agreement are held
to be unenforceable under applicable law, portions of such provisions, or such provisions in their entirety, to the extent necessary, shall be severed from this Agreement, and the balance of this Agreement shall be enforceable in accordance with its
terms. 
  
 (d) Notices. All notices and other
communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile, or otherwise delivered by hand or by messenger addressed: 
  
 (i) if to an Investor, at the Investor’s address or facsimile number
as shown on Exhibit B to the Amendment or in the case of Hercules, on the signature pages to the Hercules Common Warrant and the Hercules Preferred Warrant; or 
  
 (ii) if to the Company, at its address at 77 Robin Hill Road, Santa Barbara, California 93117 or facsimile number at (805)
692-2999 and addressed to the attention of the President, or at such other address or facsimile number as the Company shall have furnished to the Investors; with a copy to Wilson Sonsini Goodrich & Rosati, Professional Corporation at 650 Page
Mill Road, Palo Alto, California 94304-1050 and addressed to the attention to Thomas C. DeFilipps and Robert F. Kornegay. 
  
 Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered
personally, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid or, if sent by facsimile,
upon confirmation of facsimile transfer. Any party may amend its address for receipt of notice by delivering written instructions to the other party in accordance with this Section 22(d). 
  
 (e) Amendment and Waiver. This Agreement may be amended, or any provision waived, only upon the written consent of
the Company and two-thirds in interest of the Holders; provided, however, that any amendment to, or waiver under, (i) Sections 12, 13, or 14 shall require the written consent of the Company and a majority-in-interest of the Significant
Holders; (ii) Section 18 shall require the written consent of the Company and holders of two-thirds of the then-outstanding Investor Securities; (iii) Section 19 shall require the written consent of holders of 
  

 -15- 

 two-thirds of the then-outstanding A-2 Securities; and (iv) Section 21 shall require the written consent of Alta and
Investors (excluding Alta) holding a majority of then outstanding Series A-2 Preferred; and provided further, however, that any amendment adversely affecting one or more Holders or Significant Holders, as applicable, that does
not so affect all Holders or Significant Holders, as applicable, shall require the written consent of such adversely affected Holder or Significant Holder. 
  
 (f) Confidentiality. Anything in this Agreement to the contrary notwithstanding, no Holder by reason of this Agreement shall have access to any
trade secrets or classified information of the Company. Each Holder acknowledges that the information received by them pursuant to this Agreement may be confidential and for its use only, and it will not use such confidential information in
violation of the Exchange Act or reproduce, disclose or disseminate such information to any other person (other than its employees or agents having a need to know the contents of such information who are subject to confidentiality obligations to
such Holder, and its attorneys), except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally or such Holder is required to disclose such information by a
governmental authority. 
  
 (g) Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 (h) Telecopy Execution and Delivery. A facsimile, telecopy or other reproduction of this Agreement may be executed by
one or more parties hereto, and an executed copy of this Agreement may be delivered by one or more parties hereto by facsimile or similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and
such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute an original of this Agreement as well as any facsimile, telecopy or other
reproduction hereof. 
  
 [Remainder of Page Intentionally Left
Blank] 
  

 -16- 

 IN WITNESS WHEREOF, the parties hereto have executed this Third Amended and Restated Investors’
Rights Agreement effective as of the day and year first above written. 
  

					
	“COMPANY”	 	OCCAM NETWORKS, INC.
	 	 	 a Delaware corporation

			
	 	 	 By:
	 	 /s/ Howard Bailey

	 	 	 Name:
	 	 Howard Bailey

	 	 	 Title:
	 	 Chief Financial Officer

		
	“ALTA”	 	ALTA CALIFORNIA PARTNERS III, L.P.
	 (also Investors hereunder)
	 	 	 	 
	 	 	 By:
	 	 Alta California Management Partners III, LLC

			
	 	 	 By:
	 	  

	 	 	 	 	 Director

		
	 	 	ALTA EMBARCADERO PARTNERS III, LLC
			
	 	 	 By:
	 	  

	 	 	 	 	 V.P. of Finance and Administration

  
 [Signature Page to
Third Amended Investors’ Rights Agreement] 

			
	“INVESTOR”
	
	U.S. Venture Partners VII, L.P.
	2180 Associates Fund VII, L.P.
	USVP Entrepreneur Partners VII-A, L.P.
	USVP Entrepreneur Partners VII-B, L.P.
	By Presidio Management Group VII, L.L.C.
	The General Partner of Each
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	U.S. Venture Partners V, L.P.
	USVP V International, L.P.
	2180 Associates Fund V, L.P.
	USVP V Entrepreneur Partners, L.P.
	By Presidio Management Group V, L.L.C.
	The General Partner of Each
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 [Signature
Page to Third Amended Investors’ Rights Agreement] 

			
	“INVESTOR”
	
	Norwest Venture Partners VIII, L.P.
	By:	 	Itasca VC Partners VIII, LLP
	Its:	 	General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	NVP Entrepreneurs Fund VIII, L.P.
	By:	 	Itasca VC Partners VIII, LLP
	Its:	 	General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 [Signature
Page to Third Amended Investors’ Rights Agreement] 

			
	“INVESTOR”
	
	Hook Partners V, L.P.
		
	By:	 	

	 	 	David Hook, General Partner

  
 [Signature
Page to Third Amended Investors’ Rights Agreement] 

			
	“INVESTOR”
	
	 Hercules Technology Growth Capital, Inc.

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  
 [Signature
Page to Third Amended Investors’ Rights Agreement] 

			
	“INVESTOR”
	
	New Enterprise Associates 9, L.P.
	By: NEA Partners 9, L.P.
	Its General Partner
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  
 [Signature
Page to Third Amended Investors’ Rights Agreement] 

			
	“INVESTOR”
	
	Windward Ventures, L.P.
		
	By:	 	Windward Ventures Management, L.P.
	Title:	 	General Partner
		
	By:	 	

	Name:	 	M. David Titus
	Title:	 	General Partner
	
	Windward Ventures 2000, L.P.
		
	By:	 	Windward 2000, LLC
	Title:	 	General Partner
		
	By:	 	

	Name:	 	M. David Titus
	Title:	 	Managing Member
	
	Windward Ventures 2000-A, L.P.
		
	By:	 	Windward 2000, LLC
	Title:	 	General Partner
		
	By:	 	

	Name:	 	M. David Titus
	Title:	 	Managing Member

  
 [Signature
Page to Third Amended Investors’ Rights Agreement]Supplemental Executive Retirement Plan

 Exhibit 10.1 
  
 NORTHWEST NATURAL GAS COMPANY 
  

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
  
 EFFECTIVE SEPTEMBER 1, 2004 

 Table of Contents 
  

					
	 	 	 	  	Page

	 1.
	 	Purpose; Effective Date	  	1
			
	 2.
	 	Eligibility	  	1
			
	 3.
	 	Years of Participation	  	1
			
	 4.
	 	Normal Retirement Benefit	  	1
			
	 5.
	 	Early Retirement Benefit	  	2
			
	 6.
	 	Termination Benefit	  	2
			
	 7.
	 	Time and Form of Payment to Participant	  	3
			
	 8.
	 	Death Benefit.	  	4
			
	 9.
	 	Change in Control	  	5
			
	 10.
	 	Administration	  	6
			
	 11.
	 	Claims Procedure	  	6
			
	 12.
	 	Amendment and Termination of the Plan	  	7
			
	 13.
	 	Miscellaneous	  	7

 INDEX OF TERMS 
  

					
	 Term

	  	 Section

	  	Page

	 Board
	  	1	  	1
			
	 Change in Control
	  	9(b)	  	5
	 Committee
	  	10(a)	  	6
	 Company
	  	1	  	1
			
	 Deferred Comp Plan
	  	4(e)(ii)	  	2
	 Disability
	  	6(d)	  	3
			
	 Early Retirement Date
	  	5(a)	  	2
	 Effective Date
	  	1	  	1
	 Eligibility Date
	  	2	  	1
	 ESRIP
	  	1	  	1
	 Exchange Act
	  	9(b)(iii)	  	5
			
	 Final Average Pay
	  	4(c)	  	1
			
	 Incumbent Directors
	  	9(b)(ii)	  	5
			
	 Merger
	  	9(b)(i)(1)	  	5
			
	 Normal Retirement Date
	  	4(a)	  	1
			
	 Participant
	  	2	  	1
	 Pension Offset
	  	4(e)	  	2
	 Person
	  	9(b)(iii)	  	5
	 Plan
	  	1	  	1
			
	 Qualified Plan
	  	1	  	1
			
	 Short Service Factor
	  	4(d)	  	2
			
	 Voting Securities
	  	9(b)(i)(1)	  	5
			
	 Year of Participation
	  	3	  	1

  

 1 

 NORTHWEST NATURAL GAS COMPANY 
  
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
  
 1. Purpose; Effective Date. The Board of Directors (the “Board”) of Northwest Natural Gas Company (the
“Company”) adopts this Supplemental Executive Retirement Plan (the “Plan”) in order to attract and retain highly effective executives by providing retirement benefits in excess of those provided by the Northwest Natural Gas
Company Retirement Plan for Non-Bargaining Unit Employees (the “Qualified Plan”). The Plan shall not apply to executives already covered by the Company’s Executive Supplemental Retirement Plan (the “ESRIP”). The Plan is
intended to constitute an unfunded plan maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees. The Plan is effective as of September 1, 2004 (the “Effective Date”).

  
 2. Eligibility. Each executive officer of the Company
hired into such office after the Effective Date and each other executive employee of the Company designated by the Organization and Executive Compensation Committee of the Board shall be eligible to participate in the Plan (a
“Participant”). “Eligibility Date” means the date as of which the Participant became an executive officer of the Company or the effective date of designation to participate in the Plan, whichever applies. Participants in the
ESRIP shall not be eligible to participate in the Plan. 
  
 3.
Years of Participation. Vesting of benefits, accrual of benefits, and eligibility for retirement shall be based on the Participant’s Years of Participation. “Year of Participation” means a 12-month period elapsed between the
Participant’s Eligibility Date and date of separation from service with the Company. If participation is not continuous, whole and fractional months shall be aggregated and any remaining fractional month shall be disregarded. 
  
 4. Normal Retirement Benefit. 
  
 (a) Normal Retirement Date. A Participant’s “Normal
Retirement Date” is the first of the month following separation from service with the Company at or after attainment of age 65 and completion of five Years of Participation. 
  
 (b) Amount of Benefit. A Participant’s benefit upon Normal Retirement Date shall be a lump sum equal to six
times Final Average Pay (FAP) times the Short Service Factor (SSF) minus the Pension Offset (PO) as follows: 
  
 Lump sum = (6 x FAP x SSF) - PO 
  
 (c) Final Average Pay. “Final Average Pay” means the Participant’s average annual salary plus annual performance award in the 60 consecutive calendar months of employment with the Company
producing the highest average out of the 120 months ending with the calendar month preceding the Participant’s separation from service with the Company. If the Participant’s employment was not continuous, months of non-employment shall be
disregarded and the adjoining months treated as continuous. If the Participant does not have 60 
  

 1 

 consecutive months of employment, the average shall be based on all months of employment. The Participant’s annual
performance award shall be attributed 1/12th to each of the months in which it was earned. 
  
 (d) Short Service Factor. “Short Service Factor” means a
percentage calculated by dividing the Participant’s Years of Participation at separation from service with the Company by 15, not to exceed 100 percent. 
  
 (e) Pension Offset. “Pension Offset” means a lump sum amount equal to the combined actuarial equivalent value of the following:

  
 (i) The Participant’s benefit payable at age 65 under
the Qualified Plan in the normal form provided by that plan; 
  
 (ii) The make-up benefit payable at age 65 provided by any elective nonqualified deferred compensation plan of the Company (a “Deferred Comp Plan”) on account of the reduction in benefits under the Qualified Plan and under Social
Security resulting from deferral of compensation under the Deferred Comp Plan; and 
  
 (iii) The Participant’s Social Security benefit payable at age 65, as estimated by the Committee based on the Participant’s total compensation in the most recent full calendar year and an assumed rate of
increase over a full working career. 
  
 5. Early Retirement
Benefit. 
  
 (a) Early Retirement Date. A
Participant’s “Early Retirement Date” is the first of the month following separation from service with the Company at or after attainment of age 55 and completion of 15 Years of Participation and before attainment of age 65.

  
 (b) Amount of Benefit. A Participant’s benefit
upon Early Retirement Date shall be a lump sum determined under the same formula in 4(b) as the benefit at Normal Retirement Date, with the same defined terms, subject to the following additional detail in the definition of Pension Offset. The value
of the Qualified Plan benefit and the make-up benefit provided by the Deferred Comp Plan shall be based on the benefit payable at age 65, even if those benefits start before age 65. The value of the Social Security Benefit shall be based on the
assumption of no earnings after Early Retirement Date and payment starting at the later of the Participant’s Early Retirement Date or the date the Participant attains age 62. 
  
 (c) Reduction for Commencement Before Age 60. The Participant’s benefit upon Early Retirement Date shall be
reduced by five percent for each year by which Early Retirement Date precedes the first of the month following the Participant’s 60th birthday, with interpolation for a partial year based on one-twelfth of the full five percent for each month. 
  
 6. Termination Benefit. 
  
 (a) Vesting. A Participant shall become vested in benefits under the Plan upon completing five Years of Participation, upon suffering a Disability,
or upon a Change in Control of the Company. A Participant whose employment with the Company terminates prior 
  

 2 

 to vesting shall forfeit any right to benefits under the Plan, subject to reinstatement of such right upon rehire into a
position with the Company eligible to participate in the Plan. A Participant whose employment with the Company terminates after becoming vested and before qualifying for Early or Normal Retirement Date shall be paid a termination benefit.

  
 (b) Amount of Benefit. A Participant’s termination
benefit shall be determined under the same formula in 4(b) as the benefit at Normal Retirement Date, with the same defined terms, subject to the following additional detail in the definition of Pension Offset. The Pension Offset shall be calculated
the same as on Early Retirement Date, except the value of Social Security benefits shall be based on the assumption of future earnings continuing at the Participant’s last pay rate with the Company and on payment starting at age 65. 

 
 (c) Reduction for Commencement Before Age 60. The
Participant’s termination benefit shall be reduced by five percent for each year by which the first of the month following separation from service with the Company precedes the first of the month following the Participant’s 60th birthday, with interpolation for a partial year based on one-twelfth of the full five percent for each month. This paragraph
(c) shall not reduce the Participant’s benefit below 40 percent of the amount payable at age 60. 
  
 (d) Disability. “Disability” means a termination of employment because of absence from duties with the Company for 180 consecutive days
as a result of the Participant’s incapacity due to physical or mental illness or injury, unless within 30 days after a written notice of termination is given following such absence the Participant returns to full-time performance of Company
duties. 
  
 7. Time and Form of Payment to Participant.

  
 (a) Lump Sum. Except as provided in (b), (d), and (e),
benefits shall be paid to a Participant in a lump sum of cash within 30 days following the Participant’s separation from service with the Company. 
  
 (b) Optional Annuity Forms. Upon an Early Retirement Date or Normal Retirement Date, the Participant can elect to receive payment in any of the
following forms in lieu of a lump sum: 
  
 (i) A monthly annuity
for the life of the Participant and continuing at 50 percent for the life of a contingent annuitant designated by the Participant. 
  
 (ii) A monthly annuity for the life of the Participant and continuing at 100 percent for the life of a contingent annuitant designated by the
Participant. 
  
 (iii) A monthly annuity for the life of the
Participant and continuing for the remainder of 120 months to a beneficiary designated by the Participant if the Participant dies before receiving 120 monthly payments. 
  
 (c) Actuarial Equivalency. The amount payable in annuity form shall be the actuarial equivalent of the lump sum in
(a), based on the actuarial assumptions used for determining equivalent benefits under the Qualified Plan at the time of the Participant’s retirement date. Annuity benefits shall start on the first of the calendar month following Early or
Normal Retirement Date, except as provided in (d). 
  

 3 

 (d) 6-Month Delay for Specified Employees. For a Participant who is a key employee as defined in
Section 416(i) of the Internal Revenue Code for the plan year of separation from service with the Company, payment of a lump sum or commencement of monthly annuity benefits shall be postponed until the first day of the seventh calendar month
following the Participant’s separation from service. A lump sum payable to such a Participant shall be increased to the actuarial equivalent of the amount determined under the benefit formula, using the actuarial assumptions described in (c).
An annuity benefit payable to such a Participant shall be converted to the actuarial equivalent of a benefit starting on Early or Normal Retirement Date. 
  
 (e) Election of Payment Form. A Participant may elect to receive payment in an optional annuity form on a written form prescribed by the Committee.
Such an election shall be effective for an Early or Normal Retirement Date occurring on or after the January 1 following the date the written form is received by the Committee and shall continue to apply until changed by a later election by the
Participant. If such an election is in effect for the year of the Participant’s Early or Normal Retirement Date, the Participant shall elect at the time of retirement to receive payment in one of the forms provided in 7(b). 
  
 8. Death Benefit. 
  
 (a) Beneficiary. If the Participant dies before separation from
service with the Company, a death benefit shall be paid to the Beneficiary designated by the Participant on a written form prescribed by the Committee. A designation made by the Participant shall remain in effect until changed by a subsequent
designation. If no Beneficiary has been designated or no person designated by the Participant survives, the Beneficiary shall be the following in order of priority: 
  
 (i) The Participant’s surviving spouse. 
  
 (ii) The Participant’s surviving children in equal shares. 
  
 (iii) The Participant’s estate. 
  
 (b) Amount of Benefit. The death benefit shall have a lump sum value
equal to 50 percent of the amount determined under the formula in 4(b) for the benefit at Normal Retirement Date, calculated on the basis of the Participant’s Final Average Pay, Years of Participation, and Pension Offset determined as of the
day before death. 
  
 (c) Form of Payment. The amount
calculated under (b) shall be converted to an actuarial equivalent single life annuity for the life of the Beneficiary commencing on the first of the month following the date of death, except as follows. If the lump sum value is under $50,000, the
lump sum shall be paid to the Beneficiary within 30 days after the date of death in lieu of a life annuity. Actuarial equivalency shall be based on the actuarial assumptions used for determining equivalent benefits under the Qualified Plan at the
time of the Participant’s death. 
  

 4 

 9. Change in Control. 
  
 (a) Enhancements. Each Participant who is actively employed by the Company on the date of a Change in Control of the
Company shall be fully vested in benefits under the Plan, regardless of Years of Participation, and shall be credited with three additional Years of Participation beyond those the Participant has actually completed. 
  
 (b) Change in Control. “Change in Control” of the Company
shall mean the occurrence of any of the following events: 
  
 (i) The approval by the shareholders of the Company of: 
  
 (1) any consolidation, merger or plan of share exchange involving the Company (a “Merger”) as a result of which the holders of outstanding securities of the Company ordinarily having the right to vote for
the election of directors (“Voting Securities”) immediately prior to the Merger do not continue to hold at least 50% of the combined voting power of the outstanding Voting Securities of the surviving corporation or a parent corporation of
the surviving corporation immediately after the Merger, disregarding any Voting Securities issued to or retained by such holders in respect of securities of any other party to the Merger; 
  
 (2) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all, or substantially all, the assets of the Company; or 
  
 (3) the adoption of any plan or proposal for the liquidation or dissolution of the Company; 
  
 (ii) At any time during a period of two consecutive years, individuals who
at the beginning of such period constituted the Board (“Incumbent Directors”) shall cease for any reason to constitute at least a majority thereof; provided, however, that the term “Incumbent Director” shall also include each new
director elected during such two-year period whose nomination or election was approved by two-thirds of the Incumbent Directors then in office; or 
  
 (iii) Any Person (as hereinafter defined) shall, as a result of a tender or exchange offer, open market purchases or privately negotiated purchases from
anyone other than the Company, have become the beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934 (the “Exchange Act”)), directly or indirectly, of Voting Securities representing 20 percent or more
of the combined voting power of the then outstanding Voting Securities. “Person” shall mean and include any individual, corporation, partnership, group, association or other “person,” as such term is used in Section 14(d) of the
Exchange Act, other than the Company or any employee benefit plan(s) sponsored by the Company. 
  

 5 

 10. Administration. 
  
 (a) Committee Duties. This Plan shall be administered by the Organization and Executive Compensation Committee of the
Board (the “Committee”). The Committee shall have responsibility for the general administration of the Plan and for carrying out its intent and provisions. The Committee shall interpret the Plan and have such powers and duties as may be
necessary to discharge its responsibilities. The Committee may, from time to time, employ other agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with counsel who may be counsel to the Company.

  
 (b) Tax Law Compliance. The Committee shall have the
authority to cancel an executive’s participation in the Plan if the Committee determines that providing nonqualified deferred compensation under the Plan will or may cause the Plan to be operated in violation of Section 409A of the Internal
Revenue Code. 
  
 (c) Binding Effect of Decisions. The
decision or action of the Committee in respect of any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and
binding upon all persons having any interest in the Plan. 
  
 11.
Claims Procedure. 
  
 (a) Claim. Any person
claiming a benefit, requesting an interpretation or ruling under the Plan, or requesting information under the Plan shall present the request in writing to the Committee, which shall respond in writing as soon as practicable. 
  
 (b) Denial of Claim. If the claim or request is denied, the written
notice of denial shall state: 
  
 (i) The reasons for denial,
with specific reference to the Plan provisions on which the denial is based; 
  
 (ii) A description of any additional material or information required and an explanation of why it is necessary; and 
  
 (iii) An explanation of the Plan’s claim review procedure. 
  

(c) Review of Claim. Any person whose claim or request is denied or who has not received a response within 30 days may request review by notice
given in writing to the Committee. The claim or request shall be reviewed by the Committee who may, but shall not be required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and submit
issues and comments in writing. 
  
 (d) Final Decision. The
decision on review shall normally be made within 60 days. If an extension of time is required for a hearing or other special circumstances, the claimant shall be notified and the time limit shall be 120 days. The decision shall be in writing and
shall state the reasons and the relevant Plan provisions. All decisions on review shall be final and bind all parties concerned. 
  

 6 

 12. Amendment and Termination of the Plan. 
  
 (a) Amendment. The Board may at any time amend the Plan in whole or
in part; provided, however, that no amendment shall without the consent of each affected Participant (i) decrease the Participant’s benefit accrued under the formula in 4(b) of the Plan as of the date of amendment, or (ii) accelerate the
payment of benefits under the Plan. The Board shall have the right to apply an amendment retroactively, including any amendment necessary to comply with restrictions on nonqualified deferred compensation provided by Section 409A of the Internal
Revenue Code. 
  
 (b) Termination. The Board may at any
time terminate the Plan if, in its judgment, the tax, accounting, or other effects of the continuance of the Plan, or potential payments thereunder, would not be in the best interests of the Company. Upon termination, no further benefits shall
accrue under the Plan, which shall continue for the purpose of paying benefits accrued under the Plan as of the termination date as they become payable. 
  
 13. Miscellaneous. 
  
 (a) Unsecured General Creditor. Participants and their beneficiaries, heirs, successors and assigns shall have no legal or equitable rights,
interest or claims in any property or assets of the Company, nor shall they be beneficiaries of, or have any rights, claims or interests in any mutual funds, other investment products or the proceeds therefrom owned or which may be acquired by the
Company. Except as provided in (b), any and all of the Company’s assets shall be, and remain, the general, unpledged, unrestricted assets of the Company. The Company’s obligation under the Plan shall be that of an unfunded and unsecured
promise to pay money in the future, and the rights of Participants and beneficiaries shall be no greater than those of unsecured general creditors of the Company. 
  
 (b) Trust Fund. The Company shall be responsible for the payment of all benefits provided under the Plan. The Company
shall establish one or more trusts, with such trustees as the Board may approve, for the purpose of providing for the payment of such benefits, but the Company shall have no obligation to contribute to such trusts except as specifically provided in
the applicable trust documents. Such trust or trusts shall be irrevocable, but the assets thereof shall be subject to the claims of the Company’s creditors. To the extent any benefits provided under the Plan are actually paid from any such
trust, the Company shall have no further obligation with respect thereto, but to the extent not so paid, such benefits shall remain the obligation of, and shall be paid by, the Company. 
  
 (c) Non-assignability. Neither a Participant nor any other person shall have the right to commute, sell, assign,
transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be
non-assignable and nontransferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other
person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency. 
  

 7 

 (d) Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to
constitute a contract of employment between the Company and any Participant, and the Participants (and their Beneficiaries) shall have no rights against the Company except as may otherwise be specifically provided herein. Moreover, nothing in this
Plan shall be deemed to give a Participant the right to be retained in the service of the Company or to interfere with the right of the Company to discipline or discharge the Participant at any time. 
  
 (e) Withholding; Payroll Taxes. The Company shall withhold from
payments made hereunder any taxes required to be withheld from such payments under federal, state or local law. When the value of a Participant’s benefits under the Plan becomes subject to FICA tax, as determined by applicable law, the
Participant’s share of FICA shall be withheld from other non-deferred compensation payable to the Participant. Any amount not covered by such withholding shall be paid by the Participant to the Company out of other funds. 
  
 (f) Payment to Guardian. If a benefit under the Plan is payable to a
minor or a person declared incompetent or to a person incapable of handling the disposition of his property, the Committee may direct payment of such Plan benefit to the guardian, legal representative or person responsible for the care and custody
of such minor, incompetent or person. The Committee may require proof of incompetence, minority, incapacity or guardianship as it may deem appropriate prior to distribution of the Plan benefit. Such distribution shall completely discharge the
Committee and the Company from all liability with respect to such benefit. 
  
 (g) Governing Law. The provisions of this Plan shall be construed and interpreted according to the laws of the State of Oregon, except as preempted by federal law. 
  
 (h) Validity. In case any provision of this Plan shall be held illegal
or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provisions had never been inserted herein. 
  
 (i) Notice. Any notice or filing required or permitted to be given to
the Company or the Committee under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to the Secretary of the Company. Such notice shall be deemed given as of the date of delivery or, if delivery
is made by mail, as of the date shown on the postmark on the receipt for registration or certification. 
  
 (j) Successors. The provisions of this Plan shall bind and inure to the benefit of the Company and its successors and assigns. The term successors
as used herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of the Company, and successors of any such
corporation or other business entity. 
  

 8 

 The foregoing Plan was approved by the Board of Directors of Northwest Natural Gas Company on December
16, 2004. 
  

			
	NORTHWEST NATURAL GAS COMPANY
		
	By:	 	   /s/    MARK S. DODSON

  
 Attest:
  /s/    C. J. RUE                         
  

 9

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