Document:

<PAGE>
                                                                    EXHIBIT 10.3
                                                                         to S-11

                       MANAGEMENT AND SERVICING AGREEMENT

         This MANAGEMENT AND SERVICING AGREEMENT ("Agreement") dated as of [ ],
2003, between DELPHI PROPERTIES, INC., a Maryland corporation (the "REIT"),
DELPHI PROPERTIES HOLDINGS, LLC, a Maryland limited liability company
("Holdings", and together with the REIT, the "REIT Entities "), and DELPHI
CORPORATION, a Delaware corporation (the "Manager").

                              W I T N E S S E T H:

         WHEREAS, the principal business objective of the REIT is to acquire
and, through Holdings, hold mortgage assets and other authorized investments
that will generate net income for distribution to REIT stockholders and the REIT
intends to elect to be treated as a real estate investment trust for federal
income tax purposes; and

         WHEREAS, the REIT Entities desire to have the Manager manage and
administer all of their business and affairs and the Manager has the capability
to provide the management, administrative and other services provided for herein
and is willing to perform and discharge such services for the REIT Entities on
the terms and subject to the conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual terms and covenants
contained herein, and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties agree as follows:

         Section 1.        Duties of the Manager.

                  (a) Duties with Respect to the REIT Entities. The Manager
agrees to take or cause or arrange for other appropriate persons or entities to
take all such actions that it, in the exercise of its good faith judgment,
believes is necessary or appropriate for the management or administration of the
REIT Entities' business and affairs. Notwithstanding anything to the contrary in
this Agreement, the Manager shall not take any action that the REIT Entities
direct the Manager not to take. The Manager shall consult with the Board of
Directors and the officers of the REIT Entities and shall, at the request of the
Board of Directors and/or the officers of the REIT Entities, furnish advice and
recommendations with respect to all aspects of the business and affairs of the
REIT Entities. Subject to the control and discretion of, and at the request of,
the Board of Directors of the REIT (the "Board of Directors"), the Manager
shall:

                  (i) administer the day-to-day operations and affairs of the
         REIT Entities, including, without limitation, the performance or
         supervision of the functions described in this Section 1;

                  (ii) monitor the credit quality of the assets held by the REIT
         Entities;

                  (iii) advise the REIT Entities with respect to the
         acquisition, management, financing and disposition of the REIT
         Entities' assets;
<PAGE>
                  (iv) represent the REIT Entities in their day-to-day dealings
         with persons with whom the REIT Entities interact, including, without
         limitation, stockholders of the REIT, the transfer agent of the REIT,
         consultants, accountants, attorneys, custodians, insurers and banks;

                  (v) establish and provide necessary services for the REIT
         Entities, including executive, administrative, accounting, stockholder
         relations, secretarial, record-keeping, copying, telephone, mailing and
         distribution facilities;

                  (vi) procure necessary insurance coverage for the REIT
         Entities;

                  (vii) maintain communications and relations with the
         stockholders of the REIT, including, but not limited to, responding to
         inquiries, proxy solicitations, providing reports to stockholders and
         arranging and coordinating all meetings of stockholders;

                  (viii) monitor and supervise the performance of all parties
         who have contracts to perform services for the REIT Entities, provided
         that the Manager shall have no duty to assume the obligations or
         guarantee the performance of such parties under such contracts;

                  (ix) arrange for the execution and delivery of such documents
         and instruments by the officers of the REIT as may be required in order
         to perform the functions herein described and to take any other
         required action contemplated by the terms of this Agreement;

                  (x) consult and work with legal counsel for the REIT in
         implementing REIT decisions and undertaking measures consistent with
         all pertinent federal, state and local laws and rules or regulations of
         governmental or quasi-governmental agencies, including, but not limited
         to, federal and state securities laws and tax laws, as they relate to
         the REIT's qualification, and the maintenance of its qualification as a
         real estate investment trust;

                  (xi) take any action which, in the Manager's judgment or the
         judgment of the Board of Directors (of which the Manager has received
         written notice), may be necessary to maintain the qualification of the
         REIT as a real estate investment trust for U.S. federal income tax
         purposes, unless otherwise instructed by the Board of Directors, or
         prevent the violation of any law or regulation of any governmental body
         or agency having jurisdiction over the REIT or its securities;

                  (xii) take any action which, in the Manager's judgment or the
         judgment of the Board of Directors (of which the Manager has received
         written notice), may be necessary to operate the REIT Entities in a
         manner that will not subject the REIT Entities to regulation under the
         Investment Company Act of 1940 including, but not limited to monitoring
         the assets of the REIT Entities to ensure that such entities maintain
         at least 55% of their respective total assets in qualifying interests
         under the Investment Company Act of 1940;

                  (xiii) refrain from any action which, in the Manager's
         reasonable judgment or in the judgment of the Board of Directors (of
         which the Manager has received written

                                       2
<PAGE>
         notice), may adversely affect the qualification of the REIT as a real
         estate investment trust, unless otherwise instructed by the Board of
         Directors, or which would violate any laws, rule or regulation of any
         governmental body or agency having jurisdiction over the REIT or its
         securities, or which would otherwise not be permitted by the Articles
         of Incorporation, as amended, or By-laws of the REIT;

                  (xiv) consult and work with the accountants and the audit
         committee for the REIT in connection with the preparation of financial
         statements, periodic reports, annual reports and tax returns;

                  (xv) prepare and distribute, in consultation with the
         accountants and audit committee for the REIT, periodic reports and
         annual reports to stockholders that will contain audited financial
         statements; and

                  (xvi) furnish reports to the Board of Directors and provide
         research, economical and statistical data in connection with the REIT
         Entities' investments; and as reasonably requested by the REIT , make
         reports to the REIT of its performance of the foregoing services and
         furnish advice and recommendations with respect to other aspects of the
         business of the REIT Entities.

         (b) Duties with Respect to the REIT Entities' Policies. The Manager
shall, at all times in connection with the performance and observance of its
duties and obligations under this Agreement, refrain from taking any actions
that would prevent the REIT Entities from complying with the policies adopted by
the Board of Directors, as they may be amended, supplemented or otherwise
modified by the Board of Directors at any time or from time to time. Upon its
receipt of notice thereof, the Manager shall thereupon comply with such policies
as so amended, supplemented or modified.

         Section 2.  Servicing Assets.

                  (a) If the REIT Entities obtain any assets that are not the
primary obligations of the Manager (the "Servicing Assets"), the Manager will
service the Servicing Assets with the same degree of care as the Manager
exercises with respect to similar assets held by it for its own account;
provided that the Manager will not be liable for any error of judgment or for
any action taken or omitted to be taken by it, except actions taken by reason of
the Manager's gross negligence or willful misconduct. Without limitation of the
generality of the foregoing, the Manager (i) may consult with legal counsel,
including counsel for any borrower, lender or guarantor of any Servicing Asset,
independent public accountants or experts, and shall not be liable for any
action taken in good faith or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts, (ii) makes
no warranty or representation and shall not be responsible for any statement,
warranty or representation made by any borrower, lender or guarantor in
connection with any Servicing Asset or in connection with any document relating
to any Servicing Asset or for the financial condition of any borrower, lender or
guarantor or for the value of any collateral, (iii) shall not be responsible for
the performance or observance by any borrower, lender or guarantor of any of the
terms, covenants or conditions of any loan or other document evidencing or
relating to any Servicing Asset and shall not have any duty to inspect the
property (including the books and records) of any borrower, lender or guarantor,
(iv)

                                       3
<PAGE>
makes no warranty or representation and shall not be responsible for the due
execution, legality, validity, enforceability, genuineness, sufficiency or
collectability of any loan or other document evidencing or relating to any
Servicing Asset or any collateral for any Servicing Asset, (v) makes no
representation or warranty concerning the value or existence of any collateral
or the perfection or enforceability of any security interests relating to any
Servicing Asset, and (vi) shall incur no liability in respect of any Servicing
Asset or under any loan or other document evidencing or relating to any
Servicing Asset or in respect of any collateral for any Servicing Asset by
acting upon any notice, consent, certificate or other instrument or writing
believed by the Manager to be genuine and signed or sent by the proper party.

         (b) The Manager shall not, without the REIT's prior written consent,
agree to the modification or waiver of any of the terms of any loan or other
document evidencing or relating to any Servicing Asset, consent to any action or
failure to act by any borrower, lender or guarantor, or exercise any rights
which the Manager may have in respect of any Servicing Asset or under any loan
or other document evidencing or relating to any Servicing Asset or with respect
to any collateral for any Servicing Asset, if the exercise of any of such rights
would (i) waive any payment default; (ii) forgive any of the principal amount of
or reduce the principal amount of, or rate of interest on, any Servicing Asset;
(iii) postpone any date fixed for any payment of principal of or interest on any
Servicing Asset; (iv) release any guaranty or collateral except as otherwise
contemplated in any loan or other document evidencing or relating to any
Servicing Asset; (v) extend the maturity date of any Servicing Asset; (vi)
increase the lending formulas or advance rates on any Servicing Asset; or (vii)
amend or modify the financial covenants contained in the loan or other documents
evidencing any Servicing Asset in any way that would make such financial
covenants any less restrictive.

         (c) In the event: (i) any default under a Servicing Asset shall be
continuing for more than 30 days, (ii) a Servicing Asset is placed in a
non-performing status, or (iii) any other development occurs that adversely
affects the value of a Servicing Asset, the Manager shall promptly give the REIT
written notice of such event. The Manager shall thereafter take such action as
the REIT may deem necessary to protect the interests of both the Manager and the
REIT Entities. In the event the Manager shall fail to timely take any such
action as directed by the REIT, the REIT may directly take any and all actions
it deems necessary to protect its interests in the Servicing Asset. At the
REIT's direction, and on behalf of the REIT Entities, the Manager may deal with
any of the borrowers or guarantors of the Servicing Asset for the purpose of
entering into forbearance agreements, moratoriums, and general work-out plans
designed to cure the default and restore the Servicing Asset to good standing;
provided, the REIT may, in its discretion, deal directly with any of the
borrowers or guarantors in the event it determines that the Manager is not
satisfactorily following the REIT's directions and, notwithstanding anything in
this Agreement to the contrary, the Manager shall, at all times, only take
action or inaction that is consistent with guidelines established by the REIT or
otherwise only with the REIT's consent.

         Section 3.  Other Duties of the Manager.

                  (a) The Manager shall segregate and hold all funds collected
and received by the REIT Entities under and pursuant to this Agreement separate
and apart from any of its own funds and general assets and shall establish and
maintain one or more accounts, in the form of time deposit or demand accounts,
titled "Delphi Corporation in trust for Delphi Properties, Inc."

                                       4
<PAGE>
or "Delphi Corporation in trust for Delphi Holdings, LLC", as applicable (the
"REIT Entities' Accounts"). Each REIT Entities' Account shall be established
with a depository institution acceptable to the REIT. All funds deposited in the
REIT Entities' Accounts shall at times be fully insured to the full extent
permitted under applicable law. Funds deposited in the REIT Entities' Accounts
may be drawn on by the Manager in accordance with this Section 3. The Manager
shall deposit in the REIT Entities' Accounts within one Business Day (as such
term is defined in Section 4 hereof) of receipt, and retain therein, all
collections received by the REIT Entities under and pursuant to this Agreement
as well as any and all other amounts received by the REIT Entities whatsoever.
Any interest paid on funds deposited in the REIT Entities' Accounts by the
depository institutions in which the REIT Entities' Accounts are established
shall accrue to the benefit of the REIT Entities.

         (b)      The Manager is hereby authorized, from time to time, to
withdraw funds from the REIT Accounts for the following purposes:

                  (i) to pay itself the Management Fee;

                  (ii) to pay dividends to the holders of the REIT's Common
         Stock and Series A Preferred Stock, each as defined in the REIT's
         Articles of Incorporation, as amended;

                  (iii) to pay all of the REIT Entities' accounts payable and
         other liabilities and obligations incurred by the REIT Entities in the
         ordinary course of the REIT Entities' business; and

                  (iv) to pay all other amounts directed to be paid by the Board
         of Directors or the REIT's officers, at the direction of the Board of
         Directors.

         Section 4. Management Fee. As compensation for the performance of the
Manager's duties and obligations under this Agreement, the Manager shall be
entitled to receive a management fee, on an annualized basis, of 0.10% of the
average daily outstanding principal balance of the mortgage notes receivable
plus any other REIT-qualified assets held by the REIT during each year. Such
management fee shall be payable on the [ ] day of each [ ], [ ], [ ] and [ ],
commencing on [ ], 2003, or in each case on the first Business Day immediately
thereafter if the [ ] day in any month is not a Business Day. As used herein,
the term "Business Day" shall mean any day other than a Saturday, a Sunday, or a
day on which commercial banks are authorized or obligated by law, regulation or
executive order to close in Michigan.

         Section 5. Independence of the Manager. For all purposes of this
Agreement, the Manager shall be an independent contractor and shall not be
subject to the supervision of the REIT with respect to the manner in which it
accomplishes the performance of its duties and obligations hereunder. Unless
expressly authorized by the REIT, the Manager shall have no authority to act for
or represent the REIT Entities in any way (other than as permitted hereunder)
and shall not otherwise be deemed an agent of the REIT Entities.

         Section 6. Indemnification by the Manager. The Manager agrees to
indemnify, defend and hold harmless the REIT Entities and each of their
stockholders, directors, officers, agents and independent contractors, as
applicable, for (i) any and all liabilities, losses, damages

                                       5
<PAGE>
and expenses that may be incurred in connection with or as a result of any
negligent act or omission or willful misconduct by the Manager in connection
with any activity undertaken or omitted to be taken by the Manager with respect
to this Agreement, (ii) any breach by the Manager of any representation or
warranty herein or any failure by the Manager to perform or observe any
agreement or covenant herein, and (iii) any third party claims, liabilities,
losses, damages or expenses, or actions in respect thereof, arising out of or in
connection with this Agreement. The indemnities set forth in the preceding
sentence shall survive the resignation or removal of the Manager and the
termination of this Agreement and shall include reasonable fees and expenses of
counsel and other expenses of litigation.

         Section 7. Other Activities of the Manager. Nothing herein contained
shall prevent the Manager, an affiliate of the Manager or an officer, director,
employee or stockholder of the Manager from engaging in any activity, including,
without limitation, originating, purchasing and managing real estate mortgage
assets, rendering services and investment advice with respect to real estate
investment opportunities to any other Person (including other real estate
investment trusts) and managing other investments (including the investments of
the Manager and its affiliates). Officers, directors, employees, stockholders
and agents of the Manager or of any affiliate of the Manager may serve as
officers, directors, employees or agents of the REIT Entities, but shall receive
no compensation from the REIT Entities for such service.

         Section 8. Termination. The parties may terminate this Agreement at any
time without penalty by mutual agreement in writing. Such written mutual
agreement to terminate shall specify the date on which the termination hereof
shall be effective.

         Section 9. Action upon Termination, Resignation or Removal. Promptly
upon the termination of this Agreement pursuant to Section 8, the Manager shall:

         (a) deliver to the REIT all assets and documents of the REIT Entities
then in the custody of the Manager; and

         (b) cooperate with the REIT and take all reasonable steps requested to
assist the Board of Directors in making an orderly transfer of the
administrative functions of the REIT Entities.

The Manager shall be entitled to be paid all fees accruing to it to the date of
such termination.

         Section 10. Amendment. Any term or provision of this Agreement may be
amended, waived, discharged or terminated, but only by an instrument in writing
signed by the parties hereto.

         Section 11. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN.

         Section 12. Headings. The section headings hereof have been inserted
for convenience of reference only and shall not be construed to affect the
meaning, construction or effect of this Agreement.

                                       6
<PAGE>
         Section 13. Counterparts. This Agreement may be executed in
counterparts, all of which when so executed shall together constitute but one
and the same agreement.

         Section 14. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         IN WITNESS WHEREOF, the parties have caused this Management Agreement
to be duly executed and delivered as of the day and year first above written.

                                      DELPHI PROPERTIES, INC.

                                      By:
                                         ------------------------------------
                                      Name:
                                      Title

                                      DELPHI PROPERTIES HOLDINGS, LLC
                                      By: Delphi Properties, Inc., as Agent

                                      By:
                                         ------------------------------------
                                      Name:
                                      Title

                                      DELPHI CORPORATION

                                      By:
                                         ------------------------------------
                                      Name:
                                      Title:

                                       7<PAGE>
                                                                  EXHIBIT 10.1

                            MICHAEL BAKER CORPORATION

                2002 "LINE OF SIGHT" INCENTIVE COMPENSATION PLAN

         Section 1. Purpose. The purpose of the Michael Baker Corporation 2002
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, 2002. 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 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
                               Chief Executive Officer, President and Chief
                               Operating Officer, Corporate Executive
                               Vice-Presidents, other senior corporate
                               management, Regional Engineering Managers, Energy
                               Manager, Engineering Functional Managers, Energy
                               Executive Vice-President, Project Services
                               Manager, Engineering Practice Leaders, Operations
                               Office Managers, Energy OPCO Regional Managers,
                               Discipline Department Managers and other selected
                               employees who support the entire business
                               segment.

                  Group 2.     Participants in Group 2 shall be those
                               Engineering Project Managers who are primarily
                               responsible for any individual engineering
                               project budgeted to equal or exceed $1,000,000 in
                               gross revenue for the Plan Year, or such other
                               amount as determined from time to time by the
                               Committee, and those Energy Project Managers who
                               are primarily responsible for any individual
                               energy project budgeted to equal or exceed
                               $1,000,000 in gross revenue for the Plan Year, or
                               such other amount as determined from time to time
                               by the Committee.

                  Group 3.     Participants in Group 3 shall be those
                               Engineering Project Managers and Energy Project
                               Managers who are primarily responsible for an
                               individual project or aggregate projects with
                               gross revenue for the Plan Year greater than
                               $200,000, excluding projects with annual gross
                               revenue less than $100,000.

                  Group 4.     Participants in Group 4 shall be any employee
                               who is designated as a Participant in the Plan
                               and who is not otherwise a member of Group 1, 2
                               or 3.

With respect to a Participant who moves to or from Group 1 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:

                  o The Corporate Incentive Program;

                  o The Engineering Project Incentive Program;

                  o The Energy Project Incentive Program; and

                  o The Discretionary Incentive Program.

All Group 1 Participants shall participate in the Corporate Incentive Program.
All Group 2 and Group 3 Participants who are Engineering Project Managers shall
participate in the Engineering Project Incentive Plan. All Group 2 and Group 3
Participants who are Energy Project Managers

                                       -2-
<PAGE>

shall participate in the Energy Project Incentive Program. All Group 4
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.

                           (b) 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.

                  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
will become a Group 4 Participant during such Plan Year. New employees hired on
or before June 30 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 as related to the level of
achievement attained. Incentive Targets shall be determined within 90 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 established
for the actual level of achievement attained. Payment of any Incentive Award
under the Plan shall be contingent upon (i) the achievement of the Main Company
Performance Goal (measured at target), as defined in Section 5.03(a) of the
Plan, for the Plan Year, (ii) the achievement of the applicable 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, and (iii) the
Participant's receiving an overall "Meets

                                      -3-
<PAGE>

Expectations" rating on the values/work standards portion of his or her Company
performance review form for the Plan Year.

                  Section 5.03. Performance Goals.

                           (a) Company Performance Goals. Within 90 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, 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 Goal(s) (the "Main Company
Performance Goal(s)") and the weighting among the various Performance Goals
established. The Company Performance Goals, and the assigned weighting of each
for the current Plan Year, 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 Goal(s) established by the
Committee for such Plan Year (measured at target) must be achieved.

                           (b) 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 the Participants in
                                    the Corporate Incentive Program shall be the
                                    Company Performance Goals.

                           (ii)     Engineering Project Incentive Program. The
                                    Participant Performance Goals for each Group
                                    2 Participant in the Engineering Project
                                    Incentive Program shall be (x) the Main
                                    Company Performance Goal 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 C. The Participant
                                    Performance Goals for each Group 3
                                    Participant in the Engineering Project
                                    Incentive Program shall be (x) the Main
                                    Company Performance Goal and (y) the level
                                    of achievement of the Participant's budgeted
                                    project profits measured for the Plan Year
                                    on all projects, weighted per Attachment C.

                           (iii)    Energy Project Incentive Program. The
                                    Participant Performance Goals for each Group
                                    2 and Group 3 Participant in the Energy
                                    Project Incentive Program shall be (x) the
                                    Main Company Performance Goal and (y) the
                                    level of achievement of budgeted project
                                    profits measured for the Plan Year on those
                                    particular projects for which their
                                    Department is primarily responsible,
                                    weighted per Attachment C.

                           (iv)     Discretionary Incentive Program. The
                                    Participant Performance Goals for the
                                    Participants in the Discretionary Incentive
                                    Program shall be (x) the Main Company
                                    Performance Goal and (y) other goals as
                                    established by the Committee in its
                                    discretion.

                                      -4-
<PAGE>

The Participant Performance Goals for each of the Engineering Project Incentive
Program and the Energy Project Incentive Program for the current Plan Year are
attached hereto as Attachment C.

                           (c) 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. The Committee may also, at its discretion, award up to 50% of
the targeted amount to participants without consideration of 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.

                  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
for this plan will be the beneficiary elected under the Company's Life Insurance
Plan. If a Participant would like to elect a different beneficiary, they may
file 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.

                                      -5-
<PAGE>

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.

                                      -6-
<PAGE>

                  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 amounts previously deferred.
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 2002

<TABLE>
<CAPTION>
  Position                                                                                 Percentage of Base Salary
  --------                                                                               -----------------------------
                                                                                         at target          at maximum
                                                                                         ---------          ----------
<S>                                                                                <C>                   <C>
  Group 1
            CORPORATE
            CEO                                                                            55%                  110%

            President & COO                                                                40%                   80%

            Corporate EVP, Regional Engineering Managers and Energy
            Manager                                                                        35%                   70%

            Corporate Controller, Division Controllers,
                and Associate Legal Counsel                                                25%                   50%

            BUSINESS SEGMENT
            Engineering Functional Managers and Controller and
            Energy EVP and Project Services Manager                                        25%                   50%

            Engineering Practice Leaders, Office Managers, Energy
            OPCO Regional Managers and Discipline Department Managers                      15%                   30%

            Selected Staff who support the entire Business Segment
            or Corporation                                                                 10% or 15%            30%

  Group 2                                                                                  15%                   30%

  Group 3                                                                                  10%                   20%

  Group 4                                                                             INDIVIDUAL DISCRETIONARY AWARDS*

</TABLE>

*        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

                 MAIN COMPANY PERFORMANCE GOALS, PLAN YEAR 2002

                                                    Target            Maximum
                                                    ------            -------
Net Earnings per share (after payment of             $1.57             $1.76
Incentive Awards) *

Total Gross Sales                                  $451.3MM           $473MM

* Main Company Performance Goal.   Payouts prorated between target and maximum.

<PAGE>

                                  ATTACHMENT C
               INCENTIVE PROGRAM PERFORMANCE GOALS, PLAN YEAR 2002
<TABLE>
<CAPTION>
                                     Weight                      Target                                Maximum
                                     ------                      ------                                -------
<S>                       <C>                         <C>                                   <C>
Corporate Incentive        60% Earnings per share      $1.57 Earnings per share              $1.76 earnings per share
Program
(Group 1)                  40% Total Gross Revenue     $451.3 Gross Revenue                  $473MM Gross Revenue

Engineering Project        Same as Tier One above      (1)   Main Company Performance Goal   (1)   Main Company Performance Goal
Incentive Program                                            (measured at target) and              (measured at target) and
(Group 2)
                                                       (2)   100% of aggregate Budgeted      (2)   100% of aggregate Budgeted
                                                             Project Profit of the                 Project Profit of the
                                                             Participant's projects                Participant's projects + 15%

Engineering Project        Same as Tier One above      (1)   Main Company Performance Goal   (1)   Main Company Performance Goal
Incentive Program                                            (measured at target) and              (measured at target) and
(Group 3)
                                                       (2)   100% of aggregate Budgeted      (2)   100% of aggregate Budgeted
                                                             Project Profit of  the                Project Profit of  the
                                                             Participant's projects                Participant's projects +15%
                                                             (weighted 75%)                        (weighted 75%)

Energy Project Incentive   Same as Tier One above      (1)   Main Company Performance Goal   (1)   Main Company Performance Goal
Program                                                      (measured at target) and              (measured at target) and
(Group 2)
                                                       (2)   100% of aggregate Budgeted      (2)   100% of aggregate Budgeted
                                                             Project Profit of a                   Project Profit of a
                                                             Department's projects                 Department's projects + 15%

Energy Project Incentive   Same as Tier One above      (1)   Main Company Performance Goal   (1)   Main Company Performance Goal
Program                                                      (measured at target) and              (measured at target) and
(Group 3)
                                                       (2)   100% of aggregate Budgeted      (2)   100% of aggregate Budgeted
                                                             Project Profit of a                   Project Profit of  a
                                                             Department's projects.                Department's projects + 15%
</TABLE>

*    Payouts prorated between target and maximum.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]