Document:

Exhibit 10.11

 

Exhibit 10.11

Summary of Compensation Paid to United Bankshares Inc.’s Executive Officers

     On November 4, 2004, the Compensation Committee (the “Committee”) of United Bankshares, Inc.
met to review the performance of the Company for 2004, to establish the Chief Executive Officer’s
and the other executive officers’ base salary for 2005, to determine the cash incentive awards for
the Company’s executives for 2004, and to determine the number of options to grant to the Company’s
officers and employees under the Company’s 2001 Incentive Stock Option Plan.

     The Company’s Executive Compensation program consists of three basic components: (1) base
salary; (2) short-term cash incentives; and (3) long-term stock incentives. The Committee is
responsible for the administration of the Company’s Executive Compensation programs, which includes
recommending to the Board of Directors base salary levels, short-term cash incentives and long-term
stock incentives for all executive officers of the Company. The Committee’s Executive
Compensation policies are designed to provide competitive levels of compensation that integrate
compensation with the Company’s annual and long-term performance goals and assist in attracting and
retaining qualified executives. The Company’s compensation policies will be discussed in detail in
the Report of the Compensation Committee included in the Company’s proxy statement.

Compensation of the Named Executive Officers Other than the Chief Executive Officer

     On November 4, 2004, the Committee reviewed recommendations by the Chief Executive Officer
relating to base salary for 2005, short-term cash incentives for 2004, and grants of stock options
under the Company’s 2001 Incentive Stock Option Plan for the Company’s named executive officers.
In reviewing the recommendations, the Committee considered (i) the financial performance of the
Company and (ii) a presentation by the Chief Executive Officer. The Chief Executive Officer based
his presentation and recommendations on an analysis of personal performance ratings provided by the
named executive officers, peer group data obtained from the Watson Wyatt survey, and the Chief
Executive Officer’s evaluation of the named executive officers.

     Based on its review of this analysis, the Committee approved the following compensation for
named executive officers of the Company who had been reported in the 2004 proxy statement and those
who are expected to be named executive officers in the 2005 proxy statement:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	2004 Cash	 	 	 	Incentive Stock	 	 
	 	Name/Position	 	 	2005 Salary	 	 	 	Incentive	 	 	 	Option	 	 
	 	Steven
E. Wilson

Executive Vice President, 
Chief Financial Officer,

Secretary and Treasurer	 	 	$	247,447	 	 	 	$	112,500	 	 	 	 	15,000	 	 
	 	James B. Hayhurst, Jr.

Executive Vice President	 	 	 	210,000	 	 	 	 	66,500	 	 	 	 	10,000	 	 
	 	Kendal E. Carson

Executive Vice President	 	 	 	220,000	 	 	 	 	75,000	 	 	 	 	10,000	 	 
	 	James J. Consagra, Jr.

Executive Vice President	 	 	 	210,000	 	 	 	 	75,000	 	 	 	 	10,000	 	 
	 

     These recommendations were presented to the Board of Directors for approval at its meeting on
November 22, 2004. The Board of Directors approved the recommendations of the Committee.

     All cash incentives were paid on January 3, 2005. The stock options were granted on the
opening bid price on November 4, 2004 of $36.71.

86

 

Compensation of the Chief Executive Officer

     At its meeting on November 4, 2004, the Committee recommended a new base salary for 2005, a
short-term cash incentive for 2004, and a grant of stock options under the Company’s 2001 Incentive
Stock Option Plan for Richard M. Adams, the Chairman of the Board of Directors and the Chief
Executive Officer of the Company. In determining the compensation for Mr. Adams, the Committee
considered the financial performance of the Company, information relating to compensation paid to
Chief Executive Officers of peer banks, and the individual performance of Mr. Adams. A more
detailed explanation of the factors considered when determining Mr. Adams’ compensation will be set
forth in the Compensation Committee Report in the Proxy Statement. The following table sets forth
the Committee’s recommendations to the Board of Directors for Mr. Adams’ compensation:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	2004 Cash	 	 	 	Incentive Stock	 	 
	 	Name/Position	 	 	2005 Salary	 	 	 	Incentive	 	 	 	Option	 	 
	 	Richard
M. Adams

Chairman of the Board of Directors and 
Chief Executive Officer	 	 	$	625,000	 	 	 	$	385,000	 	 	 	 	30,000	 	 
	 

     These recommendations were presented to the Board of Directors for approval at its meeting on
November 22, 2004. The Board of Directors approved the recommendations of the Committee.

     The cash incentive was paid on January 3, 2005, and the stock options were granted on the
opening bid price on November 4, 2004 of $36.71.

87Exhibit 10.12

 

Exhibit 10.12

Summary of Compensation Paid to United Bankshares Inc.’s Directors

     The Compensation Committee (the “Committee”) of United Bankshares, Inc. (the “Company”) met on
January 24, 2005, to discuss compensation of the Board of Directors. Prior to the meeting, the
Committee retained AON Consulting to review the compensation of the Board of Directors of the
Company and to compile information regarding director compensation in peer bank holding companies.
The Committee reviewed the report of AON Consulting, and based on this report, the Committee and the Board of Directors
approved the following compensation to the non-management members of the Company’s Board of
Directors for 2005:

	 	•  	Retainer of $500 per month regardless of meeting attendance.
	 
	 	•  	Fee of $1,000 for each of the six (6) scheduled Board meetings attended.
	 
	 	•  	Fee of $1,000 for each committee meeting attended or for each special meeting
of the Board attended.
	 
	 	•  	Retainer of $1,000 per quarter for the Chairman of the Compensation
Committee, Governance & Nominating Committee, and the Lead Director of the

Independent Directors.
	 
	 	•  	Retainer of $1,000 per month for the Chairman of the Audit Committee.

88Exhibit 10.13

 

Exhibit 10.13

Summary of Amendment to Richard M. Adams’ Employment Contract

     United Bankshares, Inc. (the “Company”) entered into an employment contract with Richard M.
Adams, the Chairman of the Board of Directors and Chief Executive Officer of the Company effective
April 11, 1986. The original term of Mr. Adams’ employment contract was five years commencing
March 31, 1986, with the provision that the contract could be extended annually for one (1) year to
maintain a rolling five (5) year contract. This contract was amended in November 2002, to extend
the initial term of the contract through March 31, 2008, with the provision for additional one (1)
year term extensions by the Executive Committee with the approval of Mr. Adams. In November 2003,
the Board of Directors of the Company extended Mr. Adams’ employment contract for an additional
year until March 31, 2009.

     At its meeting on November 4, 2004, the Committee agreed to recommend to the Board of
Directors that Mr. Adams’ employment contract be extended for an additional year until March 31,
2010. The Board of Directors approved this recommendation at a meeting on November 22, 2004.

89<PAGE>

                                                                    EXHIBIT 10.1

                            MICHAEL BAKER CORPORATION
                        2004 INCENTIVE COMPENSATION PLAN

      Section 1. Purpose. The purpose of the Michael Baker Corporation 2004
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
performance goals. By providing an incentive payment opportunity based upon
market-based performance goals, the Company will establish a clear line of sight
between 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,
2004. 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 Incentive Targets and Incentive 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 shall receive
notice informing the employee of the Plan and specifying 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

<PAGE>

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 shall be a member of one of
the following Groups:

            Group 1. Participants in Group 1 shall be the Company's executive
                     officers, including Divisional Managers.

            Group 2. Participants in Group 2 shall be the Engineering Project
                     Managers, the Energy Project Managers, the Sales Managers
                     and the Office Managers.

            Group 3. Participants in Group 3 shall be any employee who is
                     designated as a Participant in the Plan and who is not
                     otherwise a member of Group 1 or 2.

With respect to a Participant who moves to or from a Group during a Plan Year,
such Participant shall be treated as a member of each Group for the period of
time in that Group during the Plan Year, and the actual achievement of any
Performance Goals, as defined in Section 5.03 of the Plan, established with
respect to participation in each Group shall be used to calculate the pro-rated
Incentive Award applicable for the period of time in each Group.

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

            -     The Corporate Incentive Program;

            -     The Project Manager Incentive Program;

            -     The Sales Manager Incentive Program;

            -     The Office Manager Incentive Program; and

            -     The Discretionary Incentive Program.

All Group 1 Participants shall participate in the Corporate Incentive Program.
All Group 2 Participants who are Engineering Project Managers or Energy Project
Managers shall participate in the Project Manager Incentive Plan. All Group 2
Participants who are Sales Managers shall participate in the Sales Manager
Incentive Program. All Group 2 Participants who are Office Managers shall
participate in the Office Manager Incentive Program. All Group 3 Participants
shall participate in the Discretionary Incentive Program.

            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.

                                      -2-
<PAGE>

                  (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.

            Section 4.05. Death, Disability or Retirement. If, during a Plan
Year, a Participant dies or becomes disabled, within the meaning of Section
22(e)(3) 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 a Group 3 Participant 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.

            Section 5.01. Incentive Targets. Each Participant under the Plan
shall be assigned an incentive 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 a percentage of project profits,
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 the 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

                                      -3-
<PAGE>

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 shall establish specific performance
goals for the Company's divisions ("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) Sales Manager Performance Goals. Within 30 days after the
commencement of a Plan Year, the Committee shall establish specific performance
goals for the Company's Sales Managers ("Sales Manager 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. The Sales Manager Performance Goals are attached hereto as
Attachment D.

                  (d) Office Manager Performance Goals. Within 30 days after the
commencement of a Plan Year, the Committee shall establish specific performance
goals for the Company's Office Managers ("Office Manager 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, expenses. The Office Manager Performance Goals are attached
hereto as Attachment E.

                  (e) Participants' Performance Goals. Within 90 days after the
commencement of the Plan Year, the Committee shall 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)  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.

                  (iii) Sales Manager Incentive Program. The Participant
                        Performance Goals for each Group 2 Participant in the
                        Sales Manager Incentive Program shall be (x) the Main
                        Company Performance Goals and (y) the Sales Manager
                        Performance Goals, weighted per Attachment F.

                                      -4-
<PAGE>

                  (iv)  Office Manager Incentive Program. The Participant
                        Performance Goals for each Group 2 Participant in the
                        Office Manager Incentive Program shall be (x) the Main
                        Company Performance Goals and (y) the Office Manager
                        Performance Goals, weighted per Attachment F.

                  (v)   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 accordance with the level of achievement of the
applicable Participant Performance Goals, the Participant's Incentive Target for
such level of achievement, and the other terms of the Plan. Provided the
conditions set forth in Section 5.02 are achieved for any Plan Year, Incentive
Awards payable shall be calculated as a percentage of each of the respective
Incentive Targets, such percentage being equal to (i) 80% of the extent, if any,
to which the Company's income before taxes exceeds the Company Performance Goal
target for such item, as identified on Attachment B, divided by (ii) the
cumulative total of all Incentive Targets, expressed in terms of dollar amounts,
assigned under the Plan for such Plan Year.

            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, on or before March 30th of the following year.

            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

                                      -5-
<PAGE>

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.

                                      -6-
<PAGE>

            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.

                                      -7-
<PAGE>

                                  ATTACHMENT A

                       INCENTIVE TARGETS, PLAN YEAR 2004

<TABLE>
<CAPTION>
Position                                                                               Percentage of Base Salary
--------                                                                               -------------------------
<S>                                                                                    <C>
Group 1
          CORPORATE
          CEO                                                                                     55%

          President & COO                                                                         40%

          Corporate EVP, Regional Engineering Managers and Energy Manager                         35%

          Corporate Controller, Division Controllers, and Associate Legal                         25%
          Counsel

          BUSINESS SEGMENT
          Engineering Functional Managers and Controller and Energy EVP                        25% - 30%
          and Project Services Manager

          Engineering Practice Leaders, Office Managers, Energy OPCO                           15% - 25%
          Regional Managers and Discipline Department Managers

          Selected Staff who support the entire Business Segment or                           10% or 15%
          Corporation
          Divisional Managers                                                                 10% or 15%
</TABLE>

<TABLE>
<S>                               <C>
Group 2
          Project Managers        ENGINEERING:

                                  (2% of project profit not to exceed the
                                  following % of base salary): 10% to 15%

                                  ENERGY:

                                                               10%-15%

          Sales Managers                                    10% to 20%

          Office Managers                                   10% to 20%
</TABLE>

Group 3                                       Individual Discretionary Awards*

*     Amount of individual award is discretionary, total pool of discretionary
      awards not to exceed 15% of total award payouts for Groups 1, 2 and 3.

<PAGE>

                                  ATTACHMENT B

                    COMPANY PERFORMANCE GOALS, PLAN YEAR 2004

<TABLE>
<CAPTION>
                                                    Target
                                                   ----------
<S>                                                <C>
Earnings per share *                               $   1.02

Total Contract Revenues                            $  460.5MM

Income before taxes                                $   16.5MM
</TABLE>

*     Main Company Performance Goal.

<PAGE>

                                  ATTACHMENT C

                  DIVISIONAL PERFORMANCE GOALS, PLAN YEAR 2004

<TABLE>
<CAPTION>
                                                      Target
                                                   -------------
<S>                                                <C>
ENERGY REVENUE                                     $ 208,860,849

INCOME FROM OPERATIONS                             $   7,821,031

ENGINEERING REVENUE                                $ 254,527,571
</TABLE>

<PAGE>

                                  ATTACHMENT D

                SALES MANAGER PERFORMANCE GOALS, PLAN YEAR 2004

<TABLE>
<CAPTION>
                                                          Target
                                                        -----------
<S>                                                     <C>
[SPECIFY GOALS]                                            [ON
                                                        INDIVIDUAL
                                                        PERF PLANS]
</TABLE>

<PAGE>

                                  ATTACHMENT E

                OFFICE MANAGER PERFORMANCE GOALS, PLAN YEAR 2004

<TABLE>
<CAPTION>
                                                           Target
                                                         -----------
<S>                                                      <C>
[SPECIFY GOALS]                                             [ON
                                                         INDIVIDUAL
                                                         PERF PLANS]
</TABLE>

<PAGE>

                                  ATTACHMENT F

               INCENTIVE PROGRAM PERFORMANCE GOALS, PLAN YEAR 2004

<TABLE>
<CAPTION>
                                                     Weight                                     Target
                                                     ------                                     ------
<S>                                   <C>                                    <C>
Corporate Incentive                   50% Earnings per share                 $1.02 Earnings per share
Program (Group 1, other
than Divisional Managers)             50% Total Contract Revenues            $460.5MM Contract Revenues

Corporate Incentive                   50%, same division as Group 1 above    (1)   Earnings Per Share and Total Contract
Program (Group 1                                                                   Revenues (measured at target) and
Divisional Managers)
                                      50%                                    (2)   Divisional Performance Goals

Project Manager Incentive             Threshold Goal                         (1)   Main Company Performance Goals
Program (Group 2)                                                                  (measured at target) and

                                      100%, after achievement of             (2)   100% of aggregate Budgeted Project
                                      threshold goal                               Profit of the Participant's projects

Sales Manager Incentive               Threshold Goal                         (1)   Main Company Performance Goals
Program                                                                            (measured at target) and
(Group 2)

                                      100%, after achievement of             (2)   Sales Manager Performance Goals
                                      threshold goal

Office Manager Incentive              Threshold Goal                         (1)   Main Company Performance Goals
Program                                                                            (measured at target) and
(Group 2)

                                      100%, after achievement of             (2)   Office Manager Performance Goals
                                      threshold goal

Discretionary Incentive                Threshold Goal                        (1)   Main Company Performance Goals
Program (Group 3)                                                                  (measured at target) and

                                      100%, after achievement of             (2)   Other Goals established by Committee
                                      threshold goal
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]