Document:

exv10w1

	 	 	 	 	 

Exhibit 10.1

MICHAEL BAKER CORPORATION

INCENTIVE COMPENSATION PLAN 

     Section 1. Purpose. The purpose of the Michael Baker Corporation Incentive
Compensation Plan (the “Plan”) is to provide for an incentive payment opportunity to
employees of Michael Baker Corporation (the “Company”) and its subsidiaries, which may be
earned upon the achievement of established financial performance goals. By providing a payment
based upon profitability, the Company will establish rewards based on the overall performance of
the Company and the individual contribution of each employee.

     Section 2. Effective Date. The effective date of this Plan is January 1,
2009. The Plan will remain in effect from year to year (each calendar year shall be referred to
herein as a “Plan Year”) until formally amended or terminated in writing by the Company’s
Board of Directors (the “Board”).

     Section 3. Administration of the Plan.

          Section 3.01. Committee. Full power and authority to administer, construe
and interpret the Plan, and any incentive program described within the Plan (any “Incentive
Program”) shall be vested in the Compensation Committee of the Board (the “Committee”).
The Committee may delegate to any agent as it deems appropriate to assist it with the
administration of the Plan. Any determination, action or records of the Committee shall be final,
conclusive and binding on all Plan Participants, as defined in Section 3.04 of the Plan, and their
beneficiaries, heirs, personal representatives, executors and administrators, and upon the Company
and all other persons having or claiming to have any right or interest in or under the Plan.

          Section 3.02. Rules and Regulations. The Committee may, from time to time,
establish rules, forms and procedures of general application for the administration of the Plan and
each Incentive Program. The Committee shall determine the Targets and Awards, as defined in
Sections 5.01 and 5.02 of the Plan, designate the employees who are to participate in the Plan and
determine the Group to which a Participant is assigned, as defined in Section 4.02 of the Plan.

          Section 3.03. Quorum. A majority of the members of the Committee shall
constitute a quorum for purposes of transacting business relating to the Plan. The acts of a
majority of the members present (in person, or by conference telephone) at any meeting of the
Committee at which there is a quorum, or acts reduced to and approved unanimously in writing by all
of the Committee members, shall be valid acts of the Committee.

          Section 3.04. Notice of Participation. Each employee who is designated to
participate shall receive notice informing the employee of the Plan, which notice may also specify
the group in which the employee is designated to participate. Designation of participation does
not guarantee a participant (a “Participant”) that an Incentive Award will be earned, or
that such Participant will continue to participate in the same group for the current Plan Year
(based upon the achievement of Group qualification metrics) or for future Plan Years.

     Section 4. Eligibility, Groups and Incentive Programs.

          Section 4.01. Eligibility. Any employee of the Company or any wholly-owned
subsidiary of the Company shall be eligible to participate in the Plan upon written designation by
the Committee as provided in Section 3.04, excluding employees who are covered under a foreign
government regulated bonus plan.

 

 

          Section 4.02. Designation of Groups. Any employee who is designated by the
Committee as a Participant for a Plan Year may be assigned as a member of one of the following
Groups:

	 	Group 1.	 	 Participants in Group 1 may include the Company’s executive
officers, including Divisional, Department or Office Managers.
	 
	 	Group 2.	 	 Participants in Group 2 may include Project Managers.
	 
	 	Group 3.	 	 Participants in Group 3 may include any employee who is designated
as a Participant in the Plan and who is not otherwise assigned as a member of
Group 1 or 2.

          Section 4.03. Incentive Programs. The following Incentive Programs may be
administered under the Plan:

	 	•	 	The Corporate Incentive Program;
	 
	 	•	 	The Engineering Incentive Program;
	 
	 	•	 	The Project Manager Incentive Program; and
	 
	 	•	 	The Discretionary Incentive Program.

All Group 1 Participants are eligible to participate in the Corporate Incentive Program or the
Engineering Incentive Program, if offered; provided that if such program(s) are not offered Group 1
Participants shall be eligible to participate in the Discretionary Incentive Program, if offered.
All Group 2 Participants are eligible to participate in the Project Manager Incentive Plan, if
offered; provided that if such program is not offered Group 2 Participants shall be eligible to
participate in the Discretionary Incentive Program, if offered. All Group 3 Participants are
eligible to participate in the Discretionary Incentive Program, if offered. Notwithstanding the
foregoing, the Committee may elect to offer the discretionary bonus program as provided in Section
5.06 hereof, in lieu of any or all of such Incentive Programs.

          Section 4.04. Termination of Employment.

               (a) Except as provided in Section 4.05 of the Plan, a Participant whose employment with the
Company and all subsidiaries is terminated, either voluntarily, by mutual agreement or by
involuntary termination for cause following the end of a Plan Year but prior to the payment of an
Incentive Award for such Plan Year will forfeit all right to such unpaid Incentive Awards, except
as otherwise determined by the Committee or its delegate; provided further that a Participant whose
employment is terminated by the Company and all subsidiaries involuntarily other than for cause
following the end of a Plan Year shall not forfeit all right to such unpaid Incentive Awards.

               (b) Except as provided in Section 4.05 of the Plan, a Participant whose employment with the
Company and all subsidiaries is terminated voluntarily, by mutual agreement or involuntarily for
cause at any time during a Plan Year shall forfeit all rights to any Incentive Awards for the Plan
Year during which termination occurs. A Participant whose employment is terminated by the Company
and all subsidiaries involuntarily other than for cause on or before June 30 of any Plan Year shall
forfeit all rights to any Incentive Awards for the Plan Year during which termination occurs;
provided further that a Participant whose employment is terminated by the Company and all
subsidiaries involuntarily other than for cause after June 30 of a Plan Year shall be entitled to a
pro-rated Incentive Award for the period of employment,

 

 

subject to the other terms and conditions
of the Plan and the achievement of the applicable Performance Goals.

               (c) All incentive awards that are forfeited as provided in Section 4.04 (a) and (b) above may
be allocated to or among remaining plan participants within the discretion of the Committee.

          Section 4.05. Death, Disability or Retirement. If, during a Plan Year, a
Participant dies or becomes disabled, within the meaning of Section 409A(a)(2)(C) of the Internal
Revenue Code of 1986, as amended, or retires after attainment of at least age 55 and with at least
10 years of service with the Company and/or its subsidiaries, the Committee may, in its discretion
or under such rules as it may prescribe, make a partial or full Incentive Award to the Participant
for the Plan Year provided that the applicable Performance Goals were achieved.

          Section 4.06. New Participants. New employees of the Company or any
wholly-owned subsidiary of the Company hired after June 30 of a Plan Year and designated for
participation will become Group 3 Participants during such Plan Year. New employees hired on or
before June 30 and designated for participation may participate (on a pro-rated basis) in any Group
during such Plan Year based upon achievement of Group qualification metrics.

     Section 5. Incentive Targets, Incentive Awards and Performance Goals.
Incentive payment targets and performance goals may be established, as provided in this Section 5,
for any program other than the Discretionary Incentive Program or discretionary bonus program and,
may, to the extent determined by the Committee, be applicable to such discretionary programs.

          Section 5.01. Incentive Targets. Each Participant under the Plan may be
assigned an incentive payment target (an “Incentive Target”) that shall be determined based
on market competitive levels, and which may be expressed as a percentage of the Participant’s base
salary or other basis, as related to the level of achievement attained. Incentive Targets shall be
determined within 30 days after the commencement of each Plan Year and approved by the Committee.
The Incentive Targets for the current Plan Year are attached hereto as Attachment A.

          Section 5.02. Incentive Awards. No incentive award payment (“Incentive
Award”) may exceed the Participant’s Incentive Target. Payment of any Incentive Award under
the Plan shall be contingent upon (i) the achievement of the Main Company Performance Goals
(measured at target), as defined in Section 5.03(a) of the Plan, for the Plan Year, (ii) the
achievement of the applicable Participant Performance Goals, as defined in Section 5.03 of the
Plan, for the particular Incentive Program in which the Participant is a member for the Plan Year,
(iii) the Participant’s receiving an overall “Meets Expectations” rating on the values/work
standards portion of his or her Company performance review form for the Plan Year and (iv) the
determination of the amount payable under Section 5.05 of the Plan.

          Section 5.03. Performance Goals.

               (a) Company Performance Goals. Within 30 days after the commencement of a Plan Year,
the Committee shall establish specific performance goals for the Company (“Company Performance
Goals”), which may be based upon one or more of the following objective performance measures
and expressed in either, or a combination of, absolute values or rates of change: earnings per
share, earnings per share growth rates, return on total capital, stock price, revenues, costs, net
income, operating income, income before taxes, operating margin, cash flow, market share, return on
equity, return on assets and total shareholder return. The Committee shall designate one or more
of such Performance Goals as the main Company Performance Goals (the “Main Company Performance
Goals”) and the

 

 

weighting among the various Performance Goals established. The Company
Performance Goals are attached hereto as Attachment B. In order for any Incentive Awards to be
paid to
Participants in any Incentive Program with respect to a Plan Year, the Main Company
Performance Goals established by the Committee for such Plan Year (measured at target) must be
achieved.

               (b) Divisional Performance Goals. Within 30 days after the commencement of a Plan
Year, the Committee may establish specific performance goals for the Company’s divisions or
business units (“Divisional Performance Goals”), which may be based upon one or more of the
following objective performance measures and expressed in either, or a combination of, absolute
values or rates of change: revenues, costs, net income, operating income, income before taxes,
operating margin, cash flow, market share, return on equity or return on assets. The Divisional
Performance Goals are attached hereto as Attachment C.

               (c) Participants’ Performance Goals. Within 90 days after the commencement of the
Plan Year, the Committee may establish performance goals for the Participants in each of the
Incentive Programs (“Participant Performance Goals”) as follows:

	 	(i)	 	Corporate Incentive Program. The
Participant Performance Goals for all Participants in the Corporate
Incentive Program shall be the Company Performance Goals and, in the
case of Group 1 Participants who are Divisional Managers, Divisional
Performance Goals, weighted per Attachment F.
	 
	 	(ii)	 	Engineering Incentive Program. The
Participant Performance Goals for all Participants in the Engineering
Incentive Program shall be the Engineering Performance Goals and, in
the case of Group 1 Participants who are Engineering Managers,
Engineering Performance Goals, weighted per Attachment F.
	 
	 	(iii)	 	Project Manager Incentive Program.
The Participant Performance Goals for each Group 2 Participant in the
Project Manager Incentive Program shall be (x) the Main Company
Performance Goals and (y) the level of achievement of budgeted project
profits measured for the Plan Year on those particular projects for
which the Participant is primarily responsible, weighted per Attachment
F.
	 
	 	(iv)	 	Discretionary Incentive Program. The
Participant Performance Goals for the Participants in the Discretionary
Incentive Program shall be (x) the Main Company Performance Goals and
(y) other goals as established by the Committee in its discretion,
weighted per Attachment F.

               (d) When the Participant Performance Goals are established, the Committee shall also specify
the manner in which the level of achievement of such Participant Performance Goals shall be
calculated. The Committee may determine that unusual items or certain specified events or
occurrences, including changes in accounting standards or tax laws, shall be excluded from the
calculation, or may within their discretion adjust the performance goals.

          Section 5.04. Discretion. The Committee shall have no discretion to increase
any Incentive Target or Incentive Award payable that would otherwise be due upon attainment of the

 

 

Performance Goals, but the Committee may in its discretion reduce or eliminate such Incentive
Target or Incentive Award.

          Section 5.05. Determination of Incentive Award. The amount of a
Participant’s Incentive Award for a Plan Year, if any, shall be determined by the Committee or its
delegate, in its discretion, after considering the level of achievement of the Company Performance
Goals, and the extent to which that achievement results in funding of incentive awards, the
applicable Participant Performance Goals, the Participant’s Incentive Target for such level of
achievement, and the other terms of the Plan.

          Section 5.06. Determination of Other Bonuses. The Committee may grant, from
time to time in its sole discretion, a bonus to any Participant based on any criteria it
determines. Such bonus, if specifically designated by the Committee as payable under this Plan,
shall be subject to such provisions of the Plan as it shall specify.

     Section 6. Payment to Participants.

          Section 6.01. Timing of Payment. Any Incentive Award for a Plan Year shall
be paid to the Participant, or in the case of death to the Participant’s beneficiary, within 21/2
months following the end of such Plan Year in which the right to payment is no longer subject to a
substantial risk of forfeiture. Notwithstanding the foregoing, in the event such amount is
conditioned upon a separation from service and not compensation the Participant could receive
without separating from service, then no such payments may be made to the Participant who is a
“specified employee” under section 409A of the Internal Revenue Code of 1986, as amended, until the
first day following the six-month anniversary of the Participant’s termination.

          Section 6.02. Beneficiary Designation. The deemed beneficiary of a
Participant for this Plan will be the beneficiary elected by the Participant under the Company’s
Life Insurance Plan; provided that a Participant may elect a different beneficiary by filing a
completed designation of beneficiary form with the Committee or its delegate in the form
prescribed. Such designation may be made, revoked or changed by the Participant at any time before
death but such designation of beneficiary will not be effective and supersede all prior
designations until it is received and acknowledged by the Committee or its delegate. If the
Committee has any doubt as to the proper beneficiary to receive payments hereunder, the Committee
shall have the right to withhold such payments until the matter is finally adjudicated. However,
any payment made in good faith shall fully discharge the Committee, the Company, its subsidiaries
and the Board from all further obligations with respect to that payment.

          Section 6.03. Tax Withholding. All Incentive Awards and bonuses shall be
subject to Federal income, FICA, and other tax withholding as required by applicable law.

     Section 7. Miscellaneous.

          Section 7.01. No Recourse. If the actual level of achievement of any
Performance Goal taken into account for determination of an Incentive Award is found to be
incorrect by the Company’s independent certified public accountants and was more than the correct
amount, there shall be no recourse by the Company against any person or estate. However, the
Company shall have the right to correct such error by reducing any subsequent payments yet to be
made under the Plan for current and future Plan Years by the entire excess amount of any Incentive
Awards paid over the correct amounts.

          Section 7.02. Merger or Consolidation. All obligations for amounts earned
but not yet paid under the Plan shall survive any merger, consolidation or sale of all or
substantially all of the Company’s or a subsidiary’s assets to any entity, and be the liability of
the successor to

 

 

the merger or consolidation or the purchaser of assets, unless otherwise agreed to
by the parties thereto.

          Section 7.03. Gender and Number. The masculine pronoun whenever used in the
Plan shall include the feminine and vice versa. The singular shall include the plural and the
plural shall include the singular whenever used herein unless the context requires otherwise.

          Section 7.04. Construction. The provisions of the Plan shall be construed,
administered and governed by the laws of the Commonwealth of Pennsylvania, including its statute of
limitations provisions, but without reference to conflicts of law principles. Titles of Sections
of the Plan are for convenience of reference only and are not to be taken into account when
construing and interpreting the provisions of the Plan.

          Section 7.05. Non-alienation. Except as may be required by law, neither the
Participant nor any beneficiary shall have the right to, directly or indirectly, alienate, assign,
transfer, pledge, anticipate or encumber (except by reason of death) any amount that is or may be
payable hereunder, including in respect of any liability of a Participant or beneficiary for
alimony or other payments for the support of a spouse, former spouse, child or other dependent,
prior to actually being received by the Participant or beneficiary hereunder, nor shall the
Participant’s or beneficiary’s rights to benefit payments under the Plan be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of the Participant or beneficiary or to the debts, contracts, liabilities,
engagements, or torts of any Participant or beneficiary, or transfer by operation of law in the
event of bankruptcy or insolvency of the Participant or any beneficiary, or any legal process.

          Section 7.06. No Employment Rights. Neither the adoption of the Plan nor any
provision of the Plan shall be construed as a contract of employment between the Company or a
subsidiary and any employee or Participant, or as a guarantee or right of any employee or
Participant to future or continued employment with the Company or a subsidiary, or as a limitation
on the right of the Company or a subsidiary to discharge any of its employees with or without
cause. Specifically, designation as a Participant does not create any rights, and no rights are
created under the Plan, with respect to continued or future employment or conditions of employment.

          Section 7.07. Minor or Incompetent. If the Committee determines that any
Participant or beneficiary entitled to a payment under the Plan is a minor or incompetent by reason
of physical or mental disability, it may, in its sole discretion, cause any payment thereafter
becoming due to such person to be made to any other person for his benefit, without responsibility
to follow application of amounts so paid. Payments made pursuant to this provision shall
completely discharge the Company, its subsidiaries, the Plan, the Committee and the Board.

          Section 7.08. Illegal or Invalid Provision. In case any provision of the
Plan shall be held illegal or invalid for any reason, such illegal or invalid provision shall not
affect the remaining parts of the Plan, but the Plan shall be construed and enforced without regard
to such.

          Section 7.09. Amendment or Termination of this Plan. The Board shall have
the right to amend or terminate the Plan at any time, provided that any amendment or termination
shall not affect any Incentive Awards earned but unpaid. No employee or Participant shall have any
vested right to payment of any Incentive Award hereunder prior to its payment. The Company shall
notify affected employees in writing of any amendment or Plan termination.

          Section 7.10. Unsecured Creditor. The Plan constitutes a mere promise by the
Company or a subsidiary to make benefit payments in the future. The Company’s and the

 

 

subsidiaries’ obligations under the Plan shall be unfunded and unsecured promises to pay. The
Company and the subsidiaries shall not be obligated under any circumstance to fund their
respective financial obligations under the Plan. Any of them may, in its discretion, set
aside funds in a trust or other vehicle, subject to the claims of its creditors, in order to assist
it in meeting its obligations under the Plan, if such arrangement will not cause the Plan to be
considered a funded deferred compensation plan. To the extent that any Participant or beneficiary
or other person acquires a right to receive payments under the Plan, such right shall be no greater
than the right, and each Participant and beneficiary shall at all times have the status, of a
general unsecured creditor of the Company or a subsidiary.exv10w2wg

Exhibit 10.2 (g)

AMENDMENT NO. 7

TO CONSULTING AGREEMENT

     This AMENDMENT NO. 7 to the Consulting Agreement between the parties is entered into by and
between Michael Baker Corporation, a Pennsylvania Corporation (the “Corporation”) and Richard L.
Shaw, an individual (the “Executive”), effective April 26, 2010.

     WHEREAS, the Corporation and the Executive entered into the Consulting Agreement, effective
April 25, 2001, a true and correct copy of which (along with all amendments thereto) is attached
hereto as Exhibit A, as last amended by Amendment No. 6 to the Consulting Agreement, effective
April 26, 2009 extending the term of the Agreement until April 26, 2010; and

     WHEREAS, the Corporation and the Executive now desire to extend the term of the Consulting
Agreement upon the same terms and conditions for an additional one (1) year period until April 26,
2011;

     NOW THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration, incorporating the foregoing WHEREAS clauses and intending to be legally
bound hereby, THE PARTIES AGREE AS FOLLOWS:

The term of the Consulting Agreement effective April 25, 2001 between the parties as amended
by Amendment No. 1 effective April 26, 2003, Amendment No. 2 effective April 26, 2005,
Amendment No. 3 effective April 26, 2006, Amendment No. 4 effective April 26, 2007,
Amendment No. 5 effective April 26, 2008, and Amendment No. 6 effective April 26, 2009,
shall be, and the same hereby is, extended for an additional one (1) year period from April
26, 2010 until April 26, 2011 upon the same terms and conditions.

     IN WITNESS WHEREOF, effective April 26, 2010, the parties have executed this AMENDMENT NO. 7
to the Consulting Agreement extending the term thereof until April 26, 2011.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	MICHAEL BAKER CORPORATION
	Attest:

	 	 	 	(The “Corporation”)	 	 
	 
	/s/ Marcia S. Wolk

	 	 	 	By:
	 	/s/ H. James McKnight	 	 
	 

	 	 	 	 	 	 

	 	 
	Marcia S. Wolk	 	 	 	 	 	H. James McKnight
	Assistant Secretary	 	 	 	 	 	Executive Vice President
	 
	 	 	 	 	 	 	 	 
	Witness:
	 	 	 	 	 	 	 	 
	 	 	 	 	Richard L. Shaw
	 	 	 	 	(The “Executive”)
	 
	 	 	 	 	 	 	 	 
	/s/ Patricia A. Smith
 

	 	 	 	/s/ Richard L. Shaw

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