Document:

Exhibit 10.25

FY 200__ MANAGEMENT INCENTIVE PLAN

Objective

This FY 200__ Management
Incentive Plan (MIP) of AAR Corp. (the “Company”) is in effect over the period June 1,
200__ to May 31, 200__ (the “Plan Year”). It is intended to provide bonus
awards for the achievement of pre-tax income, return on invested capital and
cash flow goals as well as the personal performance of individual plan
participants.

Eligible Persons

Eligible persons will only include those whose job
duties and responsibilities support classification as an “exempt” employee
under the Fair Labor Standards Act. In addition, persons whose primary
responsibility is selling directly to individual customers and prospects and as
a result, are provided with separate revenue or profit based incentive earnings
plans, are also not eligible for participation in the MIP. Otherwise,

·                  Regular full-time persons in positions assigned
salary grade 25 or greater will automatically be eligible for participation,
and

·                  Regular full-time persons in positions assigned
salary grades 22 to 24, inclusive, may selectively be granted eligibility
subsequent to the recommendation of a Vice President or other senior executive
directing the activities of the prospective participant’s business unit or
functional organization.

Persons hired after March 1, 200__ are not
eligible for participation in the FY 200__ MIP. Other new employees hired prior
to the March 1 date may be granted eligibility for participation on a
pro-rata basis.

Eligibility for participation is subject to the final
approval of the President and CEO, AAR Corp., and the Corporate Vice President —
Human Resources.

Definitions

For MIP purposes,
the following terms will have the following meanings:

a)                                                       Base Salary will mean the annualized base salary of a participant
on the last day of the Plan year — that is, exclusive of any form of incentive
or lump sum payments and before any reduction for any voluntary contribution

authorized under any
qualified retirement plan sponsored by the Company or before any amount which a
participant may elect to defer under any other deferred compensation plan of
the Company.

b)                                                      Pre-Tax Income  (PTI) will mean
those pre-tax net income goals established annually for the Company and its
operating units, by the President and CEO in conjunction with the Compensation
Committee of the AAR Corp. Board of Directors.

c)                                                       Return on Invested Capital (ROIC) will mean the percentage
which results from dividing operating profit over the FY by the average
invested capital over the FY.

d)                                                      Cash Flow (Cash) will mean the target amount of Fiscal Year
End (FYE) cash and cash equivalents, established annually for the Company and
its operating units by the President and CEO, and reported in the Consolidated
Statements of Cash Flows of AAR CORP. and Subsidiaries.

e)                                                       Target Bonus (TB) will mean the percentage of base
salary which may be earned by a participant upon full achievement of all
assigned quantitative and personal performance goals. A participant’s TB
percentage is directly related to his or her salary grade and potential impact
on the overall performance of the Company.

f)                                                         Nominal
Bonus (NB) will mean the amount of incentive award derived from the
percentage of the TB which can be earned by a participant as a result of the
level of achievement measured against the participant’s quantitative goals
(i.e., PTI and ROIC) and measured against the Company’s FYE Cash Flow target.

Quantitative Measures

Each participant will have three quantitative goals
related to either the expectations for their operating unit or to the
expectations for the Company as a whole. In either case the goals will be
specific PTI and ROIC and Cash quantities.

As indicated in the table below, full (100.00% or
more) achievement of the PTI goal can provide up to 75.00% of a participant’s
TB. Similarly, full achievement of the ROIC goal can provide up to 25.00% of a
participant’s TB.

Conversely, anything less than 70.00% achievement of a
goal will eliminate the possibility of earning any portion of the participant’s
TB which may be available for achievement measured against that goal.

 2
 

In between 70.00% and 100.00% (or more) the sequence
of ranges of performance achievement shown in the table will determine
the portion (%) of the participant’s TB which can be credited for performance
against each goal. For example,

·                  between 70.00% and 74.99% performance achievement of
the PTI goal, the TB credit would be 37.50%.

·                  between 95.00% and 99.99% performance achievement of
the ROIC goal, the TB credit would be 21.75.%.

 

	
  RANGES OF

  PERFORMANCE

  ACHIEVEMENT

  LEVEL

  	
   

  	
  PERFORMANCE ACHIEVEMENT LEVEL

  
	
   

  	
   

  	
  PTI

  	
   

  	
  ROIC

  
	
  Less than 70.00%

  	
   

  	
  0.00% of TB

  	
   

  	
  0.00% of TB

  
	
  70.00% to 74.99%

  	
   

  	
  37.50% of TB

  	
   

  	
  12.50% of TB

  
	
  75.00% to 79.99%

  	
   

  	
  41.25% of TB

  	
   

  	
  13.75% of TB

  
	
  80.00% to 84.99%

  	
   

  	
  45.00% of TB

  	
   

  	
  15.00% of TB

  
	
  85.00% to 89.99%

  	
   

  	
  48.75% of TB

  	
   

  	
  16.25% of TB

  
	
  90.00% to 94.99%

  	
   

  	
  56.25% of TB

  	
   

  	
  18.75% of TB

  
	
  95.00% to 99.99%

  	
   

  	
  65.25% of TB

  	
   

  	
  21.75% of TB

  
	
  100.00% or More

  	
   

  	
  75.00% of TB

  	
   

  	
  25.00% of TB

  

 

The achievement credit (%)
earned against each of the PTI and ROIC measures is further modified by a
factor dependent upon the degree to which the Company achieves its annual Cash
Flow target as follows:

	
  Cash Flow Results

  	
   

  	
   

  	
   

  	
   

  	
  PTI & ROIC Credit (%) Modifier
  Factor

  	
   

  
	
  100.0% or More
  of Target Amount

  	
   

  	
  1.0

  
	
   90.0% to 99.9% of Target Amount

  	
   

  	
  0.9

  
	
   80.0% to 89.9% of Target Amount

  	
   

  	
  0.7

  

 3
 

 

	
  70.0% to 79.9%
  of Target Amount

  	
   

  	
  0.5

  
	
  Less than 70.0%
  of Target Amount

  	
   

  	
  0.0

  

 

Nominal Bonus Amount

The credit (%) earned against each of the PTI and ROIC
measures is first multiplied by the Modifier Factor and is then multiplied by a
participant’s base salary to determine a preliminary bonus award amount derived
from each measure. The amounts from each measure are then added to establish a
participant’s nominal bonus (NB) amount.

Personal Performance

At FYE an overall rating of each participant’s
Personal Performance (PP) will be determined by the appropriate
manager/executive. The rating shall be in the form of a number ranging between
0.00 and 2.00.

CEO Evaluation / Rating

Shortly after FYE, the CEO in conjunction with the
Compensation Committee of the Board of Directors will develop an evaluation of
the consolidated results of overall company performance. This evaluation will
be in the form of a rating in the range of 0.00 to 1.50 and will typically
recognize common stock price performance, diluted earnings per share results as
well as consolidated net income improvement and the attainment of AAR’s
strategic objectives.

The Actual Bonus Award Amount

The actual bonus amount to be awarded a participant
shall be determined in accord with the following formula.

	
  Nominal

  	
   

  	
  Individual

  	
   

  	
   

  	
   

  	
   

  
	
  Bonus

  	
  x

  	
  Participant

  	
  x

  	
  CEO

  	
  =

  	
  Actual Bonus Award

  
	
  Award

  	
   

  	
  Performance

  	
   

  	
  Overall

  	
   

  	
   

  
	
  Amount

  	
   

  	
  Evaluation

  	
   

  	
  Evaluation

  	
   

  	
   

  

 

(NB $)   x   (PP Rating)  
x   (CEO Rating)  =  $
Bonus

 4
 

A hypothetical example of a bonus award calculation is
presented in the attached Exhibit I.

Discretionary Awards

The Compensation Committee of the Board of Directors
may, upon the recommendation of senior executive management, increase or
decrease a participant’s actual bonus award amount by up to 100% in certain
circumstances, taking into account a multitude of discretionary factors
affecting a particular time period or individual participant. Such
circumstances could include the effects of acquisitions, divestitures,
corporate stock buybacks or financing activities, foreign currency, significant
unplanned special projects or activities intended to enhance current year bonus
payments perhaps to the detriment of future periods (e.g., inadequate
expenditures that artificially increase short-term profits or unnecessary
year-end shipments that build sales only short-term, etc.), or an individual’s
contribution or performance for such year. For certain participants, a
discretionary change to the actual bonus award may also recognize how well his
or her management team has been built and developed.

In addition, should there be unusual circumstances
occurring during the FY such that the above measures and/or bonus award amounts
do not adequately reflect extraordinary effort, the CEO may consider providing
a participant with a one-time, solely discretionary bonus award.

MIP Administration

MIP administration shall
be the responsibility of the Corporate Vice President — Human Resources.

A.    New Participants

New employees who join the Company during the Plan
year may be authorized to participate in the MIP on a pro-rata basis with the
approval of the Chief Executive Officer and the Vice President — Human
Resources.

B.    Transfers and Promotions

If a
participant is transferred or promoted during the Plan year causing an
adjustment in the assigned Target Bonus, such a participant’s bonus will be
calculated on a pro-rata basis.

C.    Retirement, Death or Disability

A participant who
retires, dies, or becomes totally and permanently disabled (as that term is
defined in the AAR Retirement Plan) during the Plan year will be entitled to a
pro-rated bonus in accordance with Paragraph D.

 5
 

D.    Payment of Bonus

Bonuses will be paid as soon as possible after the
completion of the company’s year-end audit. A participant does not have a
contractual right to receive a bonus. Rather, a participant becomes entitled to
receive a bonus award payment only after such individual payments, if any, have
been approved and authorized by the Compensation Committee of the Board.

E.     Employment as a Condition Precedent

No
bonus will be paid, except pursuant to the provisions of Paragraph C above,
unless a participant is an employee of the Company on the bonus payout date.

F.     No Employment Contract

Neither
the establishment of the MIP nor the authorization to be a participant in the
Plan will be construed as giving any participant the right to be retained in
the service of the Company.

G.    Modification of Goals

The Compensation
Committee of the Board from time to time during the Plan year, may modify the
MIP at the discretion of the Chief Executive Officer and the Committee, should
any part of the MIP cease to be a reasonable measure of desired performance. These
modifications shall be timely communicated to participants in writing.

Specific
Participant Goals

The goals and target bonus percentages for each
eligible participant shall be communicated to each participant in a form,
approximating that shown in Exhibit II, attached.

 6
 

 

Exhibit
I

FY 2006
Management Incentive Plan

	
  Operations
  Executive

  	
   

  	
   

  	
   

  	
   

  
	
  Base
  Salary Earnings

  	
   

  	
  $90,000

  	
   

  	
   

  
	
  Target
  Bonus Percentage (TB)

  	
   

  	
  15.0%

  	
   

  	
   

  
	
  Achievement
  against PTI

  	
   

  	
  98.00%

  	
   

  	
  (credit = 65.25% x TB)

  
	
  Achievement
  against ROIC

  	
   

  	
  104.0%

  	
   

  	
  (credit = 25.00% x TB)

  
	
  Cash
  Flow Results

  	
   

  	
  94.3%

  	
   

  	
  (Credit Modifier = 0.9)

  
	
  Individual
  Performance Evaluation (PP)

  	
   

  	
  1.10

  	
   

  	
   

  
	
  CEO
  Rating

  	
   

  	
  0.95

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Target
  Bonus Credit due to PTI

  	
  =

  	
  (65.25%) (15.0%) (0.9) ($90,000)

  	
   

  	
   

  
	
   

  	
  =

  	
  $7,927.88

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Target
  Bonus Credit due to ROIC

  	
  =

  	
  (25.0%) (15.0%) (0.9) ($90,000)

  	
   

  	
   

  
	
   

  	
  =

  	
  $3,037.50

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nominal
  Bonus Amount (NB)

  	
  =

  	
  $7,927.88 + $3,037.50

  	
   

  	
   

  
	
   

  	
  =

  	
  $10,965.38

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Actual
  Bonus Award after

  	
   

  	
   

  	
   

  	
   

  
	
  Application
  of PP and CEO Ratings

  	
  =

  	
  ($10,965.38) (1.10) (0.95)

  	
   

  	
   

  
	
   

  	
  =

  	
  $11,458.82

  	
   

  	
   

  

 

 7

 

Exhibit II

AAR Corp.

FY 2006 Management Incentive Plan

	
  PARTICIPANT NAME:

  	
   

  
	
   

  	
   

  
	
  CURRENT TITLE OF RECORD:

  	
   

  
	
   

  	
   

  
	
  CURRENT SALARY GRADE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TARGET BONUS AS A% OF BASE SALARY: %

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ORGANIZATION UNIT:   Corp.

  	
   

  
	
   

  	
   

  
	
  PTI GOAL ($           ):

  	
   

  
	
   

  	
   

  
	
  ROIC GOAL:       %

  	
   

  
	
   

  	
   

  
	
  AAR CORP. CASH FLOW TARGET (‘000): $

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DATE:Exhibit
10.1

[Logo of
SCIENTIGO]

May 9, 2006

Dennis Bunt

Dear Dennis,

Scientigo, Inc. is
pleased to offer you employment as a Chief Financial Officer. We trust that
your knowledge, skills and experience will be among our most valuable assets.
You will be reporting to Doyal Bryant, CEO.   The attached job description will define the
responsibilities associated with this position.

The starting
salary offered for this position is $120,000 annually, paid in biweekly
installments by your choice of check or direct deposit. You will also be
entitled to earn up to $30,000/yr in performance-based incentives to be defined
and established by the executive team.

The offer also
includes an option grant of 300,000 shares at a strike price of $1.35.  100,000 shares will vest on 6/5/06; 100,000
shares will vest on 6/5/07; and the remaining 100,000 shares will vest on
6/5/08.  An additional management
incentive option of 300,000 will be issued on your one year anniversary with a
strike price equal to the average closing stock price of the 5 business days
immediately preceding June 5, 2007. 
These options will vest 100,000 on 6/5/2007, 100,000 on 6/5/2008 and
100,000 on 6/5/2009.

You will be
eligible for standard, Scientigo-provided benefits for salaried employees
effective June 5, 2006. These benefits include three (3) weeks paid vacation,
accrued at 4.62 hours per pay period and one (1) week sick leave per year,
accrued at 1.54 hours per pay period.

This offer
includes a moving/relocation allowance of $7,500.  We anticipate your successful relocation to
Charlotte, NC within six months of hire. 
Temporary living expenses for 30 days will be reimbursed.

Your
start date with Scientigo, Inc. will be Monday, June 5, 2006.  This offer will expire at 5:00 pm on June 5,
2006.  You will be working from the
corporate office at 6701 Carmel Road, Suite 205, Charlotte, NC 27226.

Your acceptance of this offer and commencement of
employment with the Company are contingent upon your execution of the Company’s
standard form of Confidential Information and Invention Assignment Agreement
(the Confidentiality Agreement), a copy of which is enclosed for your review
and execution, prior to or on your Start Date. 
We would also appreciate receipt of a detailed resume to prepare
appropriate press releases and SEC filings.

On your first day of employment, you will be provided
with additional information about benefit programs and general employment
conditions. To fulfill federal identification requirements, you should bring
documentation to support your identity and eligibility to work in the United
States.

 

 

We are pleased to have you join the Scientigo team as
a member of what we feel is an organization that offers each employee an
opportunity for personal and professional development. If you have any questions,
please do not hesitate to contact me at 704-837-0478. We look forward to
working with you in the future, and hope you will find your employment at
Scientigo a rewarding experience.

Regards,

Christine
(Tina) Cheney,

Human
Resource Manager

Scientigo, Inc.

Accept Job Offer

By signing and dating
this letter below, I, Dennis Bunt, accept the job offer of Chief Financial
Officer by Scientigo, Inc.

	
  Signature:

  	
   

  	
  Date:

  	
   

  

 

(Signed 5/23/06 By Dennis
Bunt)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]