Document:

exv10w1

 

EXHIBIT 10.1

URS CORPORATION

Annual Incentive Compensation Plan 

2005 Plan Year Document

	   	I. Plan Objectives

     The URS Corporation Annual Incentive Compensation Plan (the “Plan”) is intended to provide
rewards to individuals who make a significant contribution to the financial performance of URS
Corporation and its URS Division and EG&G Division (collectively, the “Company”) during each fiscal
year (a “Plan Year”). Among other things, the Plan is intended to:

	 	•  	Focus key employees on achieving specific financial targets;
	 
	 	•  	Reinforce teamwork;
	 
	 	•  	Provide significant award potential for achieving outstanding performance; and
	 
	 	•  	Enhance the ability of the Company to attract and retain highly talented and competent people.

	   	II. General Plan Description

	 	A.  	Eligibility

     The Plan provides an opportunity for employees to earn cash awards based on achievement of
Company and individual performance objectives during a Plan Year. Eligible participants are
classified in one of two categories:

	 	1.  	“Designated Participants” are key employees who have the potential to
significantly impact the Company’s success; or
	 
	 	2.  	“Non-designated Participants” are employees who demonstrate outstanding
individual effort and results during the year. Awards to this group of employees are
paid from a discretionary bonus pool.

     Except as noted herein, to be eligible to receive an award under the Plan, participants must
be employed by the Company at the end of a Plan Year. If the employment of a Designated
Participant is terminated prior to the end of a Plan Year due to death, permanent disability or
retirement, other than the retirement of a Covered Employee (as defined in the Plan), the
Designated Participant (or their heirs in the case of death) will be eligible to receive a pro-rata
award based on the time the Designated Participant was employed by the Company and the performance
objectives achieved. If a Designated Participant’s employment is terminated for any other reason
prior to the end of a Plan Year (whether voluntary or involuntary), the Designated Participant will
not receive an award. In addition, Designated Participants who are employed by the Company at the
end of a Plan Year and have at least three months of service during the Plan Year will be eligible
to receive a pro-rata award based on the time the Designated Participant was employed by the
Company and the performance objectives achieved. Notwithstanding the foregoing, the terms of a
Designated Participant’s employment agreement will supersede the terms and conditions of the Plan.

	B.  	Performance Objectives

     Each Plan Year, the Compensation Committee of the Board of Directors (the “Committee”)
establishes specific performance objectives for the Company and for Designated Participants,
including weightings of the

 

 

performance objectives, by the business unit where the Designated Participant is expected to
have the most direct impact. The performance objectives may be based on any one, all or a
combination of the following (each as defined in the Plan):

	 	1.  	Net Income;
	 
	 	2.  	Contribution;
	 
	 	3.  	Average Day Sales Outstanding; and/or
	 
	 	4.  	New Sales.

     In addition, the Committee has the discretion to adjust the performance objectives by
including or excluding the following events that occur during a Plan Year that are objectively
determinable and unrelated to the achievement of the performance objectives:

	 	1.  	Effects of changes in U.S. tax laws, generally accepted accounting principles
or other laws or provisions affecting the Company’s reported financial results; and
	 
	 	2.  	Extraordinary non-recurring items as described in Accounting Principles Board
Opinion No. 30 and/or in Management’s Discussion and Analysis of Financial Condition
and Results of Operations appearing in the Company’s annual report to stockholders for
a Plan Year.
	 
	 	C.  	Target Bonus Pool

     Each Plan Year, the Committee identifies a target bonus pool as part of the Company’s
financial planning process. The target bonus pool is the sum of all anticipated awards for
Designated Participants and Non-designated Participants. The actual bonus pool may vary from the
target bonus pool depending on the Company’s actual performance against the performance objectives
established for a Plan Year.

	 	D.  	Target Bonus Percentage

     Each Plan Year, the Committee assigns Designated Participants a target bonus percentage,
expressed as a percentage of salary, based on his or her anticipated contributions to the Company.

	   	III. 2005 Plan Year

	 	A.  	Performance Objectives

     For the 2005 Plan Year, the Committee established as a prerequisite to all bonus payments
under the Plan that URS Corporation meet a minimum Net Income threshold. In addition, the
Committee established business unit performance objectives and individual performance objectives
for Designated Participants, including weightings of the performance objectives, by the business
unit where the Designated Participant is expected to have the most direct impact as follows:

	 	 	 	 	 	 	 
	Name	 	Primary Performance Objective	 	Weight
	URS Corporation

	 	Net Income
	 	 	100	%
	 
	 	 	 	 	 	 
	URS Division

	 	URS Division Profit Contribution
	 	 	100	%
	 
	 	 	 	 	 	 
	EG&G Division

	 	EG&G Division Profit Contribution
	 	 	100	%

 

 

     In addition, for Designated Participants in the URS Division and the EG&G Division, the
Committee has established secondary individual performance objectives consisting of Average Day
Sales Outstanding and New Sales.

	 	B.  	Target Bonus Pool

     For the 2005 Plan Year, the Committee established a target bonus pool which will be funded
based on achievement of the Company performance objective as follows:

	 	 	 
	Performance Results	 	2005 Award Pool Funding
	110% of Performance Objective
	 	200%
	 
	 	 
	100% of Performance Objective
	 	100%
	 
	 	 
	90% of Performance Objective
	 	0%

	 	C.  	Target Bonus Percentage

     For the 2005 Plan Year, the Committee established the following target bonus percentages for
the Company’s executive officers:

	 	 	 
	Name	 	2005 Target Bonus Percentage
	 	 	(as a percentage of salary)
	Martin M. Koffel
	 	120%
	 
	 	 
	Kent P. Ainsworth
	 	75%
	 
	 	 
	Thomas W. Bishop
	 	60%
	 
	 	 
	Reed N. Brimhall
	 	55%
	 
	 	 
	Gary V. Jandegian
	 	75%
	 
	 	 
	Joseph Masters
	 	60%
	 
	 	 
	Mary E. Sullivan
	 	55%
	 
	 	 
	Randall A. Wotring
	 	75%

	   	IV. Determination of Awards

     If performance objectives are met in a Plan Year, a Designated Participant’s award will equal
the target bonus percentage multiplied by the Designated Participant’s base salary earned during
the Plan Year. Determinations of awards to Non-designated Participants will be made by the CEO at
the end of a Plan Year from the discretionary pool.

	   	V. Other Plan Provisions

	 	A.  	Payment of Awards

     Assessment of actual performance and payout of awards will be subject to completion of the
Company’s fiscal year-end independent audit and certification by the Committee that the applicable
performance objectives and other material terms of the Plan have been met.

 

 

     The actual award earned will be paid to Designated Participants (or the Designated
Participant’s heirs in the case of death) in cash within 30 days following completion of both the
independent audit and the above-referenced certification by the Committee. Payroll and other taxes
will be withheld as required by law.

	 	B.  	Plan Accrual

     Estimated payouts for the Plan will accrue monthly during a Plan Year. At the end of each
fiscal quarter, the estimated actual awards for a Plan Year will be evaluated based on actual
performance to date and the monthly accrual rate will be adjusted so that the cost of the Plan is
fully accrued at Plan Year-end. Accrual of estimated payouts does not imply vesting of any
individual awards to Designated Participants.

	 	C.  	Administration

     The Plan will be administered by the Committee and the CEO; provided, however, that the
Committee shall retain final authority regarding all aspects of Plan administration, including the
resolution of any disputes and application of the Plan in any respect to the CEO and the Company’s
four highest compensated officers (as defined in Section 162(m) of the Internal Revenue Code of
1986, as amended). The Committee may, without notice, amend, suspend or revoke the Plan at any
time.

	 	D.  	Assignment of Employee Rights

     No employee has a claim or right to be a participant, to continue as a participant or to be
granted an award under the Plan. Participation in the Plan does not give an employee the right to
be retained in the employment of the Company or its affiliates, nor does it imply or confer any
other employment rights.

     Nothing contained in the Plan shall be construed to create a contract of employment with any
participant. The Company and its affiliates reserve the right to elect any person to its offices
and to remove any employees in any manner and upon any basis permitted by law.

     Nothing contained in the Plan shall be deemed to require the Company or its affiliates to
deposit, invest or set aside amounts for the payment of any awards. Participation in the Plan does
not give a participant any ownership, security or other rights in any assets of the Company or any
of its affiliates.

	 	E.  	Validity

     In the event that any provision of the Plan is held invalid, void or unenforceable, such
provision shall not affect, in any respect, the validity of any other provision of the Plan.

	 	F.  	Governing Law

     The Plan will be governed by, and construed in accordance with, the laws of the State of
California.exv10w2

 

EXHIBIT 10.2

URS CORPORATION

NONSTATUTORY STOCK OPTION GRANT NOTICE

(1999 EQUITY INCENTIVE PLAN)

URS Corporation (the “Company”), pursuant to its 1999 Equity Incentive Plan (the “Plan”), hereby
grants to Optionholder a nonstatutory stock option to purchase the number of shares of the
Company’s Common Stock set forth below. This option is subject to all of the terms and conditions
as set forth herein and in the Stock Option Agreement, the Plan and the Notice of Exercise, all of
which are attached hereto and incorporated herein in their entirety.

	 	 	 	 	 	 	 	 	 
	Optionholder:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Grant Date:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Number of Shares Subject to Option:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Exercise Price (Per Share):

	 	 	$	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Total Exercise Price:

	 	 	$	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Expiration Date:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

	 	 	 
	Vesting Schedule:

	 	1/3 of the shares vest on the first anniversary of the Grant Date.
	 
	 	 
	

	 	1/3 of the shares vest on the second anniversary of the Grant Date.
	 
	 	 
	

	 	1/3 of the shares vest on the third anniversary of the Grant Date.
	 
	 	 
	Payment:

	 	A. By one or a combination of the following methods described in the Stock Option Agreement:
	 
	 	 
	 
	 	 
	

	 	1. By cash or check;
	 
	 	 
	

	 	2. Pursuant to the Regulation T Program (“same day exercise and sale”); or
	 
	 	 
	

	 	3. By delivery of already owned shares; OR
	 
	 	 
	

	 	B. By “net exercise” of the option in such manner
as may be expressly authorized by the
Compensation Committee of the Board of Directors.

Additional Terms/Acknowledgments: The undersigned Optionholder acknowledges receipt of, and
understands and agrees to, this Grant Notice, the Stock Option Agreement and the Plan.
Optionholder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option
Agreement and the Plan set forth the entire understanding between Optionholder and the Company
regarding the acquisition of stock in the Company and supersede all prior oral and written
agreements on that subject with the exception of options previously granted and delivered to
Optionholder (if any) under the Plan. Optionholder further acknowledges that as a condition to any
exercise of the option, the Company may require the Optionholder to

 

 

enter into an arrangement providing for the payment by the Optionholder of any tax withholding
obligation of the Company arising by reason of the option exercise.

If there are any discrepancies in the name or address shown above, or if you have any questions,
please contact Sheri Piazza. She is located at 600 Montgomery Street, 25th Floor, San Francisco,
CA 94111 and can be reached at (415) 774-2720.

	 	 	 	 	 	 	 
	URS Corporation:	 	 	Optionholder:	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Mary E. Sullivan	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Vice President Human Resources	 	 	 	 

	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	 	 	 	 	 	 	 

Attachments: Stock Option Agreement, 1999 Equity Incentive Plan and Notice of Exercise

 

 

Attachment I

STOCK OPTION AGREEMENT

Attachment II

1999 EQUITY INCENTIVE PLAN

Attachment III

NOTICE OF EXERCISE

 

 

URS CORPORATION

1999 Equity Incentive Plan

Nonstatutory Stock Option Agreement for                    

     Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement,
URS Corporation (the “Company”) has granted you an option under its 1999 Equity Incentive Plan (the
“Plan”) to purchase the number of shares of the Company’s Common Stock indicated in your Grant
Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly defined
in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the
Plan.

     The details of your option are as follows:

     1. Vesting. Subject to the limitations contained herein, your option shall
vest as provided in your Grant Notice, provided that vesting shall cease upon the termination of
your Continuous Service. Notwithstanding the foregoing, your option shall become vested and
exercisable in its entirety either (i) if, prior to the termination of your Continuous Service, a
Change in Control (as defined in the Employment Agreement dated as of
___ between you and the
Company, as it may be amended from time to time) occurs, or (ii) in the circumstances provided in
Section 12(c) of the Plan.

     2. Number of Shares and Exercise Price. The number of shares of Common
Stock subject to your option and your exercise price per share referenced in your Grant Notice may
be adjusted from time to time for Capitalization Adjustments, as provided in the Plan.

     3. Method of Payment. Payment of the exercise price is due in full upon
exercise of all or any part of your option. You may elect to make payment of the exercise price in
cash or by check or in any other manner permitted by your Grant Notice, which may include one or
more of the following:

          (a) In the Company’s sole discretion at the time your option is exercised and
provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in
The Wall Street Journal, pursuant to a same day sale program developed under Regulation T as
promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in
either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to
pay the aggregate exercise price to the Company from the sales proceeds.

          (b) Provided that at the time of exercise the Common Stock is publicly traded and
quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock
either that you have held for the period required to avoid a charge to the Company’s reported
earnings (generally six months) or that you did not acquire, directly or indirectly from the
Company, that are owned free and clear of any liens, claims, encumbrances or security interests,
and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes,
in the sole discretion of the Company at the time you exercise your option, shall include delivery
to the Company of your attestation of ownership of such shares of Common Stock in a form approved
by the Company. Notwithstanding the foregoing, you may not exercise your option by tender to the
Company of Common Stock to the extent such tender would violate the provisions of any law,
regulation or agreement restricting the redemption of the Company’s stock.

     4. Minimum Exercise. You may not exercise your option for less than one
hundred (100) shares of Common Stock at any one time, except that it may be exercised for all of
the Common Stock remaining subject to the option if fewer than one hundred (100) shares remain.
You may exercise your option only for whole shares of Common Stock.

     5. Securities Law Compliance. Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common Stock issuable upon
such exercise are then registered under the Securities Act or, if such shares of Common Stock are
not then so registered, the Company has determined

1

 

that such exercise and issuance would be exempt from the registration requirements of the
Securities Act. The exercise of your option must also comply with other applicable laws and
regulations governing your option, and you may not exercise your option if the Company determines
that such exercise would not be in material compliance with such laws and regulations.

     6. Term. You may not exercise your option before the commencement of its
term or after its term expires. The term of your option commences on the Date of Grant and expires
upon the earliest of the following:

          (a) three (3) months after the termination of your Continuous Service for any reason
other than your retirement from the Company or an Affiliate on or after the date you attain age 65,
Disability or death, provided that if during any part of such three- (3-) month period you may not
exercise your option solely because of the condition set forth in the preceding paragraph relating
to “Securities Law Compliance,” your option shall not expire until the earlier of the Expiration
Date or until it shall have been exercisable for an aggregate period of three (3) months after the
termination of your Continuous Service;

          (b) three (3) years after your retirement from the Company or an Affiliate, if such
retirement occurs on or after the date you attain age 65;

          (c) twelve (12) months after the termination of your Continuous Service due to your
Disability;

          (d) twelve (12) months after your death if you die either during your Continuous
Service or within three (3) months after your Continuous Service terminates for any reason other
than your retirement from the Company or an Affiliate on or after the date you attain age 65;

          (e) the Expiration Date indicated in your Grant Notice; or

          (f) the day before the tenth (10th) anniversary of the Date of Grant.

     7. Exercise.

          (a) You may exercise the vested portion of your option during its term by delivering
a Notice of Exercise (in a form designated by the Company) together with the exercise price to the
Secretary of the Company, or to such other person as the Company may designate, during regular
business hours, together with such additional documents as the Company may then require.

          (b) By exercising your option you agree that, as a condition to any exercise of your
option, the Company may require you to enter into an arrangement providing for the payment by you
to the Company of any tax withholding obligation of the Company arising by reason of (1) the
exercise of your option or (2) the disposition of shares of Common Stock acquired upon such
exercise.

     8. Transferability. Your option is not transferable, except by will or by
the laws of descent and distribution, and is exercisable during your life only by you.
Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your death, shall thereafter
be entitled to exercise your option.

     9. Option not a Service Contract. Your option is not an employment or
service contract, and nothing in your option shall be deemed to create in any way whatsoever any
obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company
or an Affiliate to continue your employment. In addition, nothing in your option shall obligate
the Company or an Affiliate, their respective shareholders, Boards of Directors, Officers or
Employees to continue any relationship that you might have as a Director or Consultant for the
Company or an Affiliate.

2

 

     10. Withholding Obligations.

          (a) At the time you exercise your option, in whole or in part, or at any time
thereafter as requested by the Company, you hereby authorize withholding from payroll and any other
amounts payable to you, and otherwise agree to make adequate provision for (including by means of a
“cashless exercise” pursuant to a program developed under Regulation T as promulgated by the
Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if
any, which arise in connection with your option.

          (b) Upon your request and subject to approval by the Company, in its sole
discretion, and compliance with any applicable conditions or restrictions of law, the Company may
withhold from fully vested shares of Common Stock otherwise issuable to you upon the exercise of
your option a number of whole shares of Common Stock having a Fair Market Value, determined by the
Company as of the date of exercise, that satisfies federal, state, local and foreign tax
obligations of the Company and you; provided that the Company shall not withhold shares of Common
Stock at rates in excess of the minimum statutory withholding rates imposed upon the Company for
federal and state tax purposes if such withholding would result in a charge to the Company’s
earnings for accounting purposes. Any adverse consequences to you arising in connection with such
share withholding procedure shall be your sole responsibility.

          (c) You may not exercise your option unless the tax withholding obligations of the
Company and/or any Affiliate are satisfied. Accordingly, you may not be able to exercise your
option when desired even though your option is vested, and the Company shall have no obligation to
issue a certificate for such shares of Common Stock or release such shares of Common Stock from any
escrow provided for herein.

     11. Notices. Any notices provided for in your option or the Plan shall be
given in writing and shall be deemed effectively given upon receipt or, in the case of notices
delivered by mail by the Company to you, five (5) days after deposit in the United States mail,
postage prepaid, addressed to you at the last address you provided to the Company.

     12. Governing Plan Document. Your option is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your option, and is further subject
to all interpretations, amendments, rules and regulations which may from time to time be
promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions
of your option and those of the Plan, the provisions of the Plan shall control.

3

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