Document:

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                                                                 EXHIBIT 10.3(c)

                        EMPLOYMENT CONTINUATION AGREEMENT

      THIS AGREEMENT between Michael Baker Corporation, a Pennsylvania
corporation (the "Company"), and Richard W. Giffhorn (the "Executive"), dated as
of this 23rd day of September 2002.

                              W I T N E S S E T H:

      WHEREAS, the Company has employed the Executive in an officer position and
has determined that the Executive holds an important position with the Company;

      WHEREAS, the Company believes that, in the event it is confronted with a
situation that could result in a change in ownership or control of the Company,
continuity of management will be essential to its ability to evaluate and
respond to such situation in the best interests of stockholders;

      WHEREAS, the Company understands that any such situation will present
significant concerns for the Executive with respect to the Executive's financial
and job security;

      WHEREAS, the Company desires to assure itself of the Executive's services
during the period in which it is confronting such a situation, and to provide
the Executive certain financial assurances to enable the Executive to perform
the responsibilities of the position without undue distraction and to exercise
judgment without bias due to personal circumstances;

      WHEREAS, to achieve these objectives, the Company and the Executive desire
to enter into an agreement providing the Company and the Executive with certain
rights and obligations upon the occurrence of a Change of Control or Potential
Change of Control (as defined in Section 2);

      NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and intending to be legally bound, it is hereby agreed by and
between the Company and the Executive as follows:

      1. Operation of Agreement. (a) Effective Date. The effective date of this
Agreement shall be the date on which a Change of Control occurs (the "Effective
Date"), provided that, except as provided in Section 1(b), if the Executive is
not employed by the Company on the Effective Date, this Agreement shall be void
and without effect.

      (b) Termination of Employment Following a Potential Change of Control.
Notwithstanding Section 1(a), if (i) the Executive's employment is terminated by
the Company without Cause (as defined in Section 6(c)) or by the Executive with
Good Reason (as defined in Section 6(d)) after the occurrence of a Potential
Change of
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Control and prior to the occurrence of a Change of Control and (ii) a Change of
Control occurs within one year of such termination, the Executive shall be
deemed, solely for purposes of determining the Executive's rights under this
Agreement, to have remained employed until the Effective Date and to have been
terminated by the Company without Cause immediately after this Agreement becomes
effective.

      2.    Definitions.

      (a) Change of Control. For the purposes of this Agreement, a "Change of
Control" shall mean:

            (i) The acquisition by any individual, entity or group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
      1934, as amended (the "Exchange Act") or any successor rule thereto) (a
      "Person") of beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act or any successor rule thereto) of
      securities of the Company entitling such Person to 30% or more of the
      combined voting power of the then outstanding voting securities of the
      Company entitled to vote generally in the election of directors (the
      "Voting Power"); provided, however, that for purposes of this subsection
      (i), the following acquisitions shall not constitute or cause a Change in
      Control: (A) any acquisition directly from the Company following which the
      members of the Board continue to be comprised of at least 51% of
      Continuing Directors, (B) any acquisition by the Company, or (C) any
      acquisition by any employee benefit plan (or related trust) sponsored or
      maintained by the Company or by the Company's Employee Stock Ownership
      Plan or related trust or by any corporation controlled by the Company; or

            (ii) Completion of a tender offer to acquire securities of the
      Company entitling the holders thereof to 30% or more of the Voting Power
      of the Company, excepting any acquisitions specified in subsection (i),
      above, that do not constitute a Change of Control; or

            (iii) A successful solicitation subject to Rule 14a-11 under the
      Exchange Act relating to the election or removal of 50% or more of the
      members of any class of the Board shall be made by any Person other than
      the Company or less than 51% of the members of the Board shall be
      Continuing Directors; or

            (iv) The occurrence of a merger, consolidation, share exchange,
      division or sale or other disposition of assets of the Company, and as a
      result of which the shareholders of the Company immediately prior to such
      transaction do not hold, directly or indirectly, immediately following
      such transaction a majority of the Voting Power of (i) in the case of a
      merger or consolidation, the surviving or resulting company, (ii) in the
      case of a share exchange, the acquiring company, or (iii) in the case of a
      division or a sale or other disposition of assets, each surviving,
      resulting or acquiring company which, immediately following the
      transaction, holds more than 30% of the consolidated assets of the Company
      immediately prior to the transaction; or

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            (v) A majority of the Board otherwise determines that a Change in
      Control shall have occurred.

      (b) Potential Change of Control. For the purposes of this Agreement, a
Potential Change of Control shall be deemed to have occurred if:

            (i) a Person commences a tender offer (with adequate financing) for
      securities representing at least 30% of the Voting Power of the Company's
      securities or announces or otherwise makes known a bona fide intent to
      commence such a tender offer, excepting any offers that, if completed,
      would result in an acquisition not constituting a Change of Control; or

            (ii) the Company enters into an agreement the consummation of which
      would constitute a Change of Control; or

            (iii) there is commenced a solicitation of proxies for the election
      of directors of the Company by anyone other than the Company which
      solicitation, if successful, would effect a Change of Control; or

            (iv) any other event occurs which is deemed to be a Potential Change
      of Control by the Board in its reasonable determination after a
      consideration of relevant facts and circumstances.

      (c) Board. For purposes of this Agreement, "Board" shall mean the Board of
Directors of the Company.

      (d) Continuing Directors. For purposes of this Agreement, "Continuing
Directors" shall mean a director of the Company who either (i) was a director of
the Company immediately prior to the Effective Date or (ii) is an individual
whose election, or nomination for election, as a director of the Company was
approved by a vote of at least two-thirds of the directors then still in office
who were Continuing Directors (other than an individual whose initial assumption
of office is in connection with an actual or threatened election contest
relating to the election of directors of the Company which would be subject to
Rule 14a-11 under the Exchange Act).

      3. Employment Period. Subject to Section 6 of this Agreement, the Company
agrees to continue the Executive in its employ, and the Executive agrees to
remain in the employ of the Company, for the period (the "Employment Period")
commencing on the Effective Date and ending on the twenty-four month anniversary
of the Effective Date.

      4. Position and Duties. (a) No Reduction in Position. During the
Employment Period, the Executive's position (including titles), authority,
responsibilities and status shall be at least commensurate with those held,
exercised and assigned immediately prior to the Effective Date. It is understood
that, for purposes of this Agreement, such position, authority, responsibilities
and status shall not be regarded as not commensurate merely by virtue of the
fact that a successor shall have acquired all or substantially all of the
business and/or assets of the Company as contemplated by Section 12(b) of this
Agreement. The Executive's services shall be performed at the

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location where the Executive was employed immediately preceding the Effective
Date or any office or location within 35 miles from such location (or such other
distance not in excess of 50 miles as shall be set forth in the Company's
relocation policy as in effect immediately prior to the Effective Date).

      (b) Business Time. During the Employment Period, the Executive agrees to
devote full attention during normal business hours to the business and affairs
of the Company and to use his best efforts to perform faithfully and efficiently
the responsibilities assigned to the Executive hereunder, to the extent
necessary to discharge such responsibilities, except for (i) time spent in
managing personal, financial and legal affairs and serving on corporate, civic
or charitable boards or committees, in each case only if and to the extent not
substantially interfering with the performance of such responsibilities, and
(ii) periods of vacation and sick leave to which the Executive is entitled. It
is expressly understood and agreed that the Executive's continuing to serve on
any boards and committees on which the Executive is serving or with which the
Executive is otherwise associated immediately preceding the Effective Date shall
not be deemed to interfere with the performance of the Executive's services to
the Company.

      5. Compensation. (a) Base Salary. During the Employment Period, the
Executive shall receive a base salary at a monthly rate at least equal to the
monthly salary paid to the Executive by the Company and any of its affiliated
companies immediately prior to the Effective Date. The base salary may be
increased (but not decreased) at any time and from time to time by action of the
Board or any committee thereof or any individual having authority to take such
action in accordance with the Company's regular practices. The Executive's base
salary, as it may be increased from time to time, shall hereafter be referred to
as "Base Salary". Neither the Base Salary nor any increase in Base Salary after
the Effective Date shall serve to limit or reduce any other obligation of the
Company hereunder.

      (b) Annual Bonus. During the Employment Period, in addition to the Base
Salary, for each fiscal year of the Company ending during the Employment Period
and for each partial fiscal year during the Employment Period, the Executive
shall be afforded the opportunity to receive an annual bonus or partial bonus,
as applicable, on terms and conditions no less favorable to the Executive
(taking into account reasonable changes in the Company's goals and objectives)
than the annual bonus opportunity that had been made available to the Executive
for the fiscal year ended immediately prior to the Effective Date, provided that
the amount of bonus which shall be awarded to the Executive during each year of
the Employment Period shall be an amount not less than the average bonus earned
by such Executive during the five fiscal year period of the Company ending
immediately prior to the Effective Date (the "Annual Bonus Opportunity"), with
the average bonus calculated by dividing the total bonuses paid to the Executive
for such five year period by the total number of years for which any bonus was
paid. Any amount payable in respect of the Annual Bonus Opportunity shall be
paid as soon as practicable following the year for which the amount (or prorated
portion) is earned or awarded, unless electively deferred by the Executive
pursuant to any deferral programs or arrangements that the Company may make
available to the Executive.

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      (c) Long-term Incentive Compensation Programs. During the Employment
Period, the Executive shall participate in all long-term incentive compensation
programs for key executives, including stock option or stock incentive plans, at
a level that is commensurate with the Executive's opportunity to participate in
such plans immediately prior to the Effective Date, or, if more favorable to the
Executive, at the level made available to the Executive or other similarly
situated officers at any time thereafter. During the Employment Period, the
Company will offer such plans and programs to the Executive as were in effect
immediately prior to the Change of Control or, if more favorable to the
Executive when measured against particular plans or programs previously offered,
replacement plans or programs.

      (d) Benefit Plans. During the Employment Period, the Executive (and, to
the extent applicable, the Executive's dependents) shall be entitled to
participate in or be covered under all pension, retirement, deferred
compensation, savings, medical, dental, health, disability, group life,
accidental death and travel accident insurance plans and programs of the Company
and its affiliated companies at a level that is commensurate with the
Executive's participation in such plans immediately prior to the Effective Date,
or, if more favorable to the Executive, at the level made available to the
Executive or other similarly situated officers at any time thereafter. During
the Employment Period, the Company will offer such plans and programs to the
Executive as were in effect immediately prior to the Change of Control or, if
more favorable to the Executive when measured against particular plans or
programs previously offered, replacement plans or programs. All payments by the
Company hereunder excepting payments for Accrued Obligations shall be taken into
account (to the extent permitted by, and consistent with, law and the terms of
the applicable plan document) in determining the amount of contributions to be
made by or on behalf of the Executive under any tax-qualified defined
contribution plan of the Company.

      (e) Expenses. During the Employment Period, the Executive shall be
entitled to receive prompt reimbursement for all reasonable expenses incurred by
the Executive in accordance with the policies and procedures of the Company as
in effect immediately prior to the Effective Date. Notwithstanding the
foregoing, the Company shall apply the policies and procedures in effect after
the Effective Date to the Executive, if such policies and procedures are more
favorable to the Executive than those in effect immediately prior to the
Effective Date.

      (f) Vacation and Fringe Benefits. During the Employment Period, the
Executive shall be entitled to paid vacation and fringe benefits at a level that
is commensurate with the paid vacation and fringe benefits available to the
Executive immediately prior to the Effective Date, or, if more favorable to the
Executive, at the level made available from time to time to the Executive or
other similarly situated officers at any time thereafter.

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      (g) Indemnification. During and after the Employment Period, the Company
shall indemnify the Executive and hold the Executive harmless from and against
any claim, loss or cause of action arising from or out of the Executive's
performance as an officer, Director or employee of the Company or any of its
subsidiaries or in any other capacity, including any fiduciary capacity, in
which the Executive serves at the request of the Company to the maximum extent
permitted by applicable law and the Company's Articles of Incorporation and
By-laws (the "Governing Documents") and the Company shall maintain existing or
comparable policies of insurance covering such matters, provided that in no
event shall the protection afforded to the Executive hereunder be less than that
afforded under the Governing Documents as in effect immediately prior to the
Effective Date.

      (h) Office and Support Staff. The Executive shall be entitled to an office
with furnishings and other appointments, and to secretarial and other
assistance, at a level that is at least commensurate with the foregoing provided
to other similarly situated officers provided that such items shall be at least
equivalent to those provided for the Executive immediately prior to the
Effective Date.

      6. Termination. (a) Death, Disability or Retirement. Subject to the
provisions of Section 1 hereof, this Agreement shall terminate automatically
upon the Executive's death, termination due to permanent and total disability
("Disability") within the meaning of section 22(e)(3) of the Internal Revenue
Code of 1986 (the "Code"), or successor provision, or voluntary retirement under
any of the Company's retirement plans as in effect from time to time.

      (b) Voluntary Termination. Notwithstanding anything in this Agreement to
the contrary, following a Change of Control the Executive may, upon not less
than 30 days' written notice to the Company, voluntarily terminate employment
for any reason (including early retirement under the terms of any of the
Company's retirement plans as in effect from time to time), provided that any
termination by the Executive pursuant to Section 6(d) on account of Good Reason
(as defined therein) shall not be treated as a voluntary termination under this
Section 6(b).

      (c) Cause. The Company may terminate the Executive's employment for Cause.
For purposes of this Agreement, "Cause" means (i) the Executive's conviction of,
or plea of nolo contendere to, a felony; (ii) an act or acts of dishonesty or
gross misconduct on the Executive's part which result or are intended to result
in material damage to the Company's business or reputation; or (iii) the willful
and continued failure by Executive to substantially perform the required duties
with the Company (other than any such failure resulting from Executive's
incapacity due to physical or mental illness or Disability or any actual or
anticipated failure after the termination by Executive for Good Reason as
defined in paragraph 6(d), below) after a written demand for substantial
performance is delivered to Executive by the Company, which demand specifically
identifies the manner in which the Company believes that Executive has not
substantially performed the required duties.

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      (d) Good Reason. Following the occurrence of a Change of Control or
Potential Change of Control, the Executive may terminate employment for Good
Reason. For purposes of this Agreement, "Good Reason" means the occurrence of
any of the following, without the express written consent of the Executive,
after the occurrence of a Change of Control or Potential Change of Control:

            (i) (A) the assignment to the Executive of any duties inconsistent
      in any material adverse respect with the Executive's position, authority,
      responsibilities or status as contemplated by Section 4 of this Agreement,
      or (B) any other material adverse change in such position,
      responsibilities, authority or status, or any removal of the Executive
      from or any failure to re-elect the Executive to any position, except in
      connection with the termination of the Executive's employment due to
      Cause, Disability, retirement, death or voluntary termination for reasons
      other than those set forth in this Section 6(d);

            (ii) any failure by the Company to comply with any of the provisions
      of Section 5 of this Agreement, other than an insubstantial or inadvertent
      failure remedied by the Company promptly after receipt of notice thereof
      given by the Executive;

            (iii) any purported termination of the employment of the Executive
      by the Company which is not due to the Executive's Disability, death,
      retirement, for Cause in accordance with Section 6(c) or voluntary
      termination for reasons other than those set forth in this Section 6(d);

            (iv) the Company's requiring the Executive to be based at any office
      or location more than 35 miles (or such other distance not in excess of 50
      miles as shall be set forth in the Company's relocation policy as in
      effect immediately prior to the Effective Date) from that location at
      which the Executive performed services specified under the provisions of
      Section 4 immediately prior to the Change of Control, or the Company's
      requiring the Executive to travel on Company business to a substantially
      greater extent than required immediately prior to the Effective Date; or

            (v) any failure by the Company to obtain the assumption and
      agreement to perform this Agreement by a successor as contemplated by
      Section 12(b).

In no event shall the mere occurrence of a Change of Control, absent any further
impact on the Executive, be deemed to constitute Good Reason.

      (e) Notice of Termination. Any termination by the Company for Cause or by
the Executive for Good Reason shall be communicated by Notice of Termination to
the other party hereto given in accordance with Section 13(e). For purposes of
this Agreement, a "Notice of Termination" means a written notice given, in the
case of a termination for Cause, within 10 business days of the Company's having
actual knowledge of the events giving rise to such termination, and in the case
of a termination for Good Reason, within 180 days of the Executive's having
actual knowledge of the

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events giving rise to such termination, and which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated, and
(iii) if the termination date is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than 15 days after
the giving of such notice). The failure by the Executive to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason shall not waive any right of the Executive hereunder or preclude the
Executive from asserting such fact or circumstance in enforcing the Executive's
rights hereunder.

      (f) Date of Termination. For the purpose of this Agreement, the term "Date
of Termination" means (i) in the case of a termination for which a Notice of
Termination is required, the date of receipt of such Notice of Termination or,
if later, the date specified therein, as the case may be, and (ii) in all other
cases, the actual date on which the Executive's employment terminates during the
Employment Period.

      7. Obligations of the Company upon Termination. (a) Death or Disability.
If the Executive's employment is terminated during the Employment Period by
reason of the Executive's death or Disability, this Agreement shall terminate
without further obligations to the Executive or the Executive's legal
representatives under this Agreement other than those obligations accrued
hereunder at the Date of Termination, and the Company shall pay to the Executive
(or the Executive's beneficiary or estate) (i) the Executive's full Base Salary
through the Date of Termination (the "Earned Salary"), (ii) any vested amounts
or benefits owing to the Executive under the Company's otherwise applicable
employee benefit plans and programs, including any compensation previously
deferred by the Executive (together with any accrued earnings thereon) and not
yet paid by the Company and any accrued vacation pay not yet paid by the Company
(the "Accrued Obligations"), and (iii) any other benefits payable due to the
Executive's death or Disability under the Company's plans, policies or programs
(the "Additional Benefits").

      Any Earned Salary shall be paid in cash in a single lump sum as soon as
practicable, but in no event more than 30 days (or at such earlier date required
by law), following the Date of Termination. Accrued Obligations and Additional
Benefits shall be paid in accordance with the terms of the applicable plan,
program or arrangement.

      (b) Cause and Voluntary Termination. If, during the Employment Period, the
Executive's employment shall be terminated for Cause or voluntarily terminated
by the Executive (other than on account of Good Reason following a Change of
Control), the Company shall pay the Executive (i) the Earned Salary in cash in a
single lump sum as soon as practicable, but in no event more than 30 days (or at
such earlier date required by law), following the Date of Termination, and (ii)
the Accrued Obligations in accordance with the terms of the applicable plan,
program or arrangement.

      (c) Termination by the Company other than for Cause and Termination by the
Executive for Good Reason.

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            (i) Lump Sum Payments. If, during the Employment Period, the Company
      terminates the Executive's employment other than for Cause, or the
      Executive terminates employment for Good Reason, the Company shall pay to
      the Executive the following amounts:

            (A)   the Executive's Earned Salary;

            (B)   a cash amount (the "Severance Amount') equal to two times the
                  sum of

                  (1)   the Executive's annual Base Salary; and

                  (2)   the average of the bonuses payable to the Executive for
                        the five fiscal years of the Company ending immediately
                        prior to the Effective Date calculated by dividing the
                        total bonuses paid to the Executive for such five year
                        period by the total number of years for which any bonus
                        was paid; and

            (C)   the Accrued Obligations.

The Earned Salary and Severance Amount shall be paid in cash in a single lump
sum as soon as practicable, but in no event more than 30 days (or at such
earlier date required by law), following the Date of Termination. Accrued
Obligations shall be paid in accordance with the terms of the applicable plan,
program or arrangement.

            (ii) Continuation of Benefits. If, during the Employment Period, the
      Company terminates the Executive's employment other than for Cause, or the
      Executive terminates employment for Good Reason, the Executive (and, to
      the extent applicable, the Executive's dependents) shall be entitled,
      after the Date of Termination until the earlier of (x) the twenty-four
      month anniversary of the Date of Termination (the "End Date") and (y) the
      date the Executive becomes eligible for comparable benefits under a
      similar plan, policy or program of a subsequent employer, to continue
      participation in all of the Company's employee and executive welfare and
      fringe benefit plans (the "Benefit Plans"). To the extent any such
      benefits cannot be provided under the terms of the applicable plan, policy
      or program, the Company shall provide a comparable benefit under another
      plan or from the Company's general assets. The Executive's participation
      in the Benefit Plans will be on the same terms and conditions that would
      have applied had the Executive continued to be employed by the Company
      through the End Date.

      (d) Limit on Payments by the Company.

            (i) Application of Section 7(d). In the event that any amount or
      benefit paid or distributed to the Executive pursuant to this Agreement,
      taken together with any amounts or benefits otherwise paid or distributed
      to the Executive by the Company or any affiliated company (collectively,
      the "Covered Payments"), would be an "excess parachute payment" as defined
      in Section 280G of the Code and would thereby subject the Executive to the
      tax (the "Excise Tax")

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      imposed under Section 4999 of the Code (or any similar tax that may
      hereafter be imposed), the provisions of this Section 7(d) shall apply to
      determine the amounts payable to Executive pursuant to this Agreement.

            (ii) Calculation of Benefits. Immediately following delivery of any
      Notice of Termination, the Company shall notify the Executive of the
      aggregate present value of all termination benefits to which the Executive
      would be entitled under this Agreement and any other plan, program or
      arrangement as of the projected Date of Termination, together with the
      projected maximum payments, determined as of such projected Date of
      Termination, that could be paid without the Executive being subject to the
      Excise Tax.

            (iii) Imposition of Payment Cap. If (A) the aggregate value of the
      Severance Amount, Accrued Obligations, and continuation of benefits to be
      paid or provided to the Executive under this Agreement and any other plan,
      agreement or arrangement with the Company exceeds the amount which can be
      paid to the Executive without the Executive incurring an Excise Tax and
      (B) the Executive would receive a greater net-after-tax amount (taking
      into account all applicable taxes payable by the Executive, including any
      Excise Tax) by applying the limitation contained in this Section
      7(d)(iii), then such amounts payable to the Executive under this Section 7
      shall be reduced (but not below zero) to the maximum amount which may be
      paid hereunder without the Executive becoming subject to such an Excise
      Tax (such reduced payments to be referred to as the "Payment Cap"). In the
      event that Executive receives reduced payments and benefits pursuant to
      the previous sentence, Executive shall have the right to designate which
      of the payments and benefits otherwise provided for in this Agreement that
      the Executive will receive in connection with the application of the
      Payment Cap.

            (iv) Application of Section 280G. For purposes of determining
      whether any of the Covered Payments will be subject to the Excise Tax and
      the amount of such Excise Tax,

            (A)   such Covered Payments will be treated as "parachute payments"
                  within the meaning of Section 280G of the Code, and all
                  "parachute payments" in excess of the "base amount" (as
                  defined under Section 280G(b)(3) of the Code) shall be treated
                  as subject to the Excise Tax, unless, and except to the extent
                  that, in the good faith judgment of the Company's independent
                  certified public accountants appointed prior to the Effective
                  Date or tax counsel selected by such accountants (the
                  "Accountants"), the Company has a reasonable basis to conclude
                  that such Covered Payments (in whole or in part) either do not
                  constitute "parachute payments" or represent reasonable
                  compensation for personal services actually rendered (within
                  the meaning of Section 280G(b)(4)(B) of the Code) in excess of
                  the "base amount," or such "parachute payments" are otherwise
                  not subject to such Excise Tax, and

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            (B)   the value of any non-cash benefits or any deferred payment or
                  benefit shall be determined by the Accountants in accordance
                  with the principles of Section 280G of the Code.

            (v) For purposes of determining whether the Executive would receive
      a greater net-after-tax benefit were the amounts payable under this
      Agreement reduced in accordance with Paragraph 7(d)(iii), the Executive
      shall be deemed to pay:

            (A)   Federal income taxes at the highest applicable marginal rate
                  of Federal income taxation for the calendar year in which the
                  first amounts are to be paid hereunder, and

            (B)   any applicable state and local income taxes at the highest
                  applicable marginal rate of taxation for such calendar year,
                  net of the maximum reduction in Federal income taxes which
                  could be obtained from the deduction of such state or local
                  taxes if paid in such year;

      provided, however, that the Executive may request that such determination
      be made based on the Executive's individual tax circumstances, which shall
      govern such determination so long as the Executive provides to the
      Accountants such information and documents as the Accountants shall
      reasonably request to determine such individual circumstances.

            (vi) If the Executive receives reduced payments and benefits, under
      this Section 7(d) (or this Section 7(d) is determined not to be applicable
      to the Executive because the Accountants conclude that Executive is not
      subject to any Excise Tax) and it is established pursuant to a final
      determination of a court or an Internal Revenue Service proceeding (a
      "Final Determination") that, notwithstanding the good faith of the
      Executive and the Company in applying the terms of this Agreement, the
      aggregate "parachute payments" within the meaning of Section 280G of the
      Code paid to the Executive or for the Executive's benefit are in an amount
      that would result in the Executive's being subject to an Excise Tax, then
      the amount equal to such excess parachute payments shall be deemed for all
      purposes to be a loan to the Executive made on the date of receipt of such
      excess payments, which the Executive shall have an obligation to repay to
      the Company on demand, together with interest on such amount at the
      applicable Federal rate (as defined in Section 1274(d) of the Code) from
      the date of the payment hereunder to the date of repayment by the
      Executive. If this Section 7(d) is not applied to reduce the Executive's
      entitlements under this Section 7 because the Accountants determine that
      the Executive would not receive a greater net-after-tax benefit by
      applying this Section 7(d) and it is established pursuant to a Final
      Determination that, notwithstanding the good faith of the Executive and
      the Company in applying the terms of this Agreement, the Executive would
      have received a greater net-after-tax benefit by subjecting the
      Executive's payments and benefits hereunder to the Payment Cap, then the
      aggregate "parachute payments" paid to the Executive or for the
      Executive's benefit in excess of the Payment Cap shall be deemed for all
      purposes a loan to the Executive made on the date of

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      receipt of such excess payments, which the Executive shall have an
      obligation to repay to the Company on demand, together with interest on
      such amount at the applicable Federal rate (as defined in Section 1274(d)
      of the Code) from the date of the payment hereunder to the date of
      repayment by the Executive. If the Executive receives reduced payments and
      benefits by reason of this Section 7(d) and it is established pursuant to
      a Final Determination that the Executive could have received a greater
      amount without exceeding the Payment Cap, then the Company shall promptly
      thereafter pay the Executive the aggregate additional amount which could
      have been paid without exceeding the Payment Cap, together with interest
      on such amount at the applicable Federal rate (as defined in Section
      1274(d) of the Code) from the original payment due date to the date of
      actual payment by the Company.

      8. Non-Exclusivity of Rights. Except as expressly provided herein, nothing
in this Agreement shall prevent or limit the Executive's continuing or future
participation in any benefit, bonus, incentive, stock option or other plan or
program provided by the Company or any of its affiliated companies and for which
the Executive may qualify, nor shall anything herein limit or otherwise
prejudice such rights as the Executive may have under any other agreements with
the Company or any of its affiliated companies, including employment agreements
or stock option agreements. Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan or program of the
Company or any of its affiliated companies at or subsequent to the Date of
Termination shall be payable in accordance with such plan or program.

      9. Full Settlement. The Company's obligation to make the payments provided
for in this Agreement and otherwise to perform its obligations hereunder shall
not be affected by any circumstances, including, without limitation, any
set-off, counterclaim, recoupment, defense or other right which the Company may
have against the Executive or others whether by reason of the subsequent
employment of the Executive or otherwise. In the event of a termination of the
Executive's employment by the Company other than for Cause or termination of
employment by the Executive for Good Reason, the Executive shall have no duty to
seek any other employment after termination of employment with the Company and
the Company hereby waives and agrees not to raise or use any defense based on
the position that the Executive had a duty to mitigate or reduce the amounts due
to the Executive hereunder by seeking other employment whether suitable or
unsuitable and should the Executive obtain other employment, then the only
effect of such on the obligations of the Company hereunder shall be that the
Company shall be entitled to credit against any payments which would otherwise
be made pursuant to Section 7(c)(ii) hereof, any comparable payments to which
the Executive is entitled under the employee and executive welfare benefit plans
maintained by the Executive's other employer or employers in connection with
services to such employer or employers after termination of the Executive's
employment with the Company.

      10. Legal Fees and Expenses. If the Executive asserts any claim in any
contest (whether initiated by the Executive or by the Company) as to the
validity,

                                      -12-
<PAGE>
enforceability or interpretation of any provision of this Agreement, the Company
shall pay the Executive's costs (or cause such costs to be paid) in so
asserting, including, without limitation, reasonable attorneys' fees and
expenses, if the Executive is the prevailing party in such contest, as
determined by the arbitrators selected pursuant to Section 13(b) hereof to
resolve such contest.

      11. Confidential Information; Company Property. For and in consideration
of the salary and benefits to be provided by the Company hereunder, including
the severance arrangements set forth herein, the Executive agrees that:

      (a) Confidential Information. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, (i) obtained by the Executive during the
Executive's employment by the Company or any of its affiliated companies and
(ii) not otherwise public knowledge (other than by reason of an unauthorized act
by the Executive). After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company, unless compelled pursuant to an order of a court or other body having
jurisdiction over such matter, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it.

      (b) Company Property. Except as expressly provided herein, promptly
following the Executive's termination of employment, the Executive shall return
to the Company all property of the Company and all copies thereof in the
Executive's possession or under the Executive's control.

      (c) Injunctive Relief and Other Remedies with Respect to Covenants. The
Executive acknowledges and agrees that the covenants and obligations of the
Executive with respect to confidentiality and Company property relate to
special, unique and extraordinary matters and that a violation of any of the
terms of such covenants and obligations will cause the Company irreparable
injury for which adequate remedies are not available at law. Therefore, the
Executive agrees that the Company shall (i) be entitled to pursue an injunction,
restraining order or such other equitable relief (without the requirement to
post bond) restraining Executive from committing any violation of the covenants
and obligations contained in this Section 11 and (ii) have no further obligation
to make any payments to the Executive hereunder following any finding by a court
or an arbitrator that the Executive has engaged in a material violation of the
covenants and obligations contained in this Section 11. These remedies are
cumulative and are in addition to any other rights and remedies the Company may
have at law or in equity. In no event shall an asserted violation of the
provisions of this Section 11 constitute a basis for deferring or withholding
any amounts otherwise payable to the Executive under this Agreement.

      12. Successors. (a) This Agreement is personal to the Executive and,
without the prior written consent of the Company, shall not be assignable by the
Executive. This Agreement shall inure to the benefit of and be enforceable by
the Executive's legal representatives, including by will or the laws of descent
and distribution.

                                      -13-
<PAGE>
      (b) This Agreement shall inure to the benefit of and be binding upon the
Company and its successors. The Company shall require any successor to all or
substantially all of the business and/or assets of the Company, whether direct
or indirect, by purchase, merger, consolidation, acquisition of stock, or
otherwise, by an agreement in form and substance satisfactory to the Executive,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent as the Company would be required to perform if no such
succession had taken place.

      13. Miscellaneous. (a) Applicable Law. This Agreement shall be governed by
and construed in accordance with the laws of the Commonwealth of Pennsylvania,
applied without reference to principles of conflict of laws.

      (b) Arbitration. Except to the extent provided in Section 11(d), any
dispute or controversy arising under or in connection with this Agreement shall
be resolved by binding arbitration. The arbitration shall be held in the City of
Pittsburgh, Commonwealth of Pennsylvania, and except to the extent inconsistent
with this Agreement, shall be conducted in accordance with the Expedited
Employment Arbitration Rules of the American Arbitration Association then in
effect at the time of the arbitration, and otherwise in accordance with
principles which would be applied by a court of law or equity. The arbitrator
shall be acceptable to both the Company and the Executive. If the parties cannot
agree on an acceptable arbitrator, the dispute shall be heard by a panel of
three arbitrators, one appointed by each of the parties and the third appointed
by the other two arbitrators.

      (c) Amendments. This Agreement may not be amended or modified otherwise
than by a written agreement executed by the parties hereto or their respective
successors and legal representatives.

      (d) Entire Agreement. Excepting any plans, agreements or arrangements
specifically referred to in this Agreement, this Agreement constitutes the
entire agreement between the parties hereto with respect to the matters referred
to herein. No other agreement relating to the terms of the Executive's
employment by the Company, oral or otherwise, shall be binding between the
parties unless it is in writing and signed by the party against whom enforcement
is sought. There are no promises, representations, inducements or statements
between the parties other than those that are expressly contained herein. The
Executive acknowledges that he is entering into this Agreement of his own free
will and accord, and with no duress, that he has read this Agreement and that he
understands it and its legal consequences.

      (e) Notices. All notices and other communications hereunder shall be in
writing and shall be given by hand-delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                                      -14-
<PAGE>
           If to the Executive:         at the home address of the Executive
                                        noted on the records of the Company

           If to the Company:           Chairman of the Board
                                        Michael Baker Corporation
                                        Airport Office Park, Building #3
                                        420 Rouser Road
                                        Coraopolis, Pennsylvania 15108

           with a copy to:              Reed Smith LLP
                                        Attn:  David L. DeNinno, Esq.
                                        435 Sixth Avenue
                                        Pittsburgh, PA  15219

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

      (f) Tax Withholding. The Company shall withhold from any amounts payable
under this Agreement such Federal, state, foreign, or local taxes or levies as
shall be required to be withheld pursuant to any applicable law or regulation.

      (g) Severability; Reformation. In the event that one or more of the
provisions of this Agreement shall become invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not be affected thereby. In the event that any
of the provisions of Section 11(a) or Section 11(c) are not enforceable in
accordance with its terms, the Executive and the Company agree that such
Sections shall be reformed to make such Sections enforceable in a manner which
provides the Company the maximum rights permitted at law.

      (h) Effect of Agreement on Rights of Executive. The Executive and the
Company acknowledge that, except as may otherwise be provided under any other
written agreement between the Executive and the Company, the employment of the
Executive by the Company is "at will" and, prior to the Effective Date, the
Executive's employment may be terminated by either the Executive or the Company
at any time prior to the Effective Date, in which case the Executive shall have
no further rights under this Agreement except in circumstances relating to a
Potential Change of Control as provided for herein.

      (i) Waiver. Waiver by any party hereto of any breach or default by the
other party of any of the terms of this Agreement shall not operate as a waiver
of any other breach or default, whether similar to or different from the breach
or default waived. No waiver of any provision of this Agreement shall be implied
from any course of dealing between the parties hereto or from any failure by
either party hereto to assert its or his rights hereunder on any occasion or
series of occasions.

      (j) Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same instrument.

                                      -15-
<PAGE>
      (k) Captions. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect.

IN WITNESS WHEREOF, the Executive has hereunder set his hand and the Company has
caused this Agreement to be executed in its name on its behalf, and its
corporate seal to be hereunto affixed and attested by its Secretary, all as of
the day and year first above written.

[CORPORATE SEAL]                              MICHAEL BAKER CORPORATION

/s/ H. James McKnight                         /s/ Monica L. Iurlano
------------------------------------        ------------------------------------
By:  H. James McKnight                      By:  Monica L. Iurlano
   Title:  Secretary                        Title:  Executive Vice President and
                                                    Chief Resource Officer

                                            EXECUTIVE

/s/ Patricia A. Smith                       /s/ Richard W. Giffhorn
------------------------------------        ------------------------------------
Witnessed                                   Richard W. Giffhorn

                                      -16-<PAGE>
                                                                 EXHIBIT 10.4(d)

                       FOURTH AMENDMENT TO LOAN AGREEMENT

      This Fourth Amendment to Loan Agreement, dated this 24th day of March,
2003, by and among Michael Baker Corporation, a Pennsylvania corporation
("MBC"), Michael Baker, Jr., Inc., a Pennsylvania corporation ("Michael Baker
Jr."), Baker/MO Services, Inc., a Texas corporation ("Baker/MO"), Baker/OTS,
Inc., a Delaware corporation ("Baker/OTS"), Baker Engineering NY, Inc., a New
York corporation ("Baker NY") (each a "Borrower" and collectively, the
"Borrowers"), Citizens Bank of Pennsylvania (assignee of Mellon Bank, N.A.), a
Pennsylvania banking institution ("Citizens"), National City Bank of
Pennsylvania, a national banking association ("NCB"), and Fifth Third Bank, a
national banking association ("Fifth Third") (each a "Bank" and collectively,
the "Banks"), and Citizens Bank of Pennsylvania, as agent for the Banks (in such
capacity, the "Agent") ("Fourth Amendment").

                              W I T N E S S E T H:

      WHEREAS, the Borrowers, the Banks and the Agent entered into that certain
Loan Agreement, dated September 5, 2001, as amended by (i) the First Amendment
to Loan Agreement, dated February 20, 2002, by and among the Borrowers, the
Banks and the Agent, (ii) the Second Amendment to Loan Agreement, dated April
26, 2002, by and among the Borrowers, the Banks and the Agent and (iii) the
Third Amendment to Loan Agreement, dated July 31, 2002, by and among the
Borrowers, the Banks and the Agent (as amended, the "Loan Agreement"), pursuant
to which, among other things, the Banks agreed to extend credit to the Borrowers
pursuant to a revolving credit facility in an aggregate principal amount not to
exceed Forty Million and 00/100 Dollars ($40,000,000.00); and

      WHEREAS, the Borrowers desire to amend certain provisions of the Loan
Agreement to provide for, among other things, a swing line credit facility in an
amount not to exceed Five Million and 00/100 Dollars ($5,000,000.00), and the
Banks and the Agent shall permit such amendments pursuant to the terms and
conditions set forth herein.

      NOW, THEREFORE, in consideration of the premises contained herein and
other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto agree
as follows:

      1. All capitalized terms used herein which are defined in the Loan
Agreement shall have the same meaning herein as in the Loan Agreement unless the
context clearly indicates otherwise.

      2. Any and all references to "Mellon" contained in the Loan Agreement
shall instead be references to "Citizens".

      3. Section 1.01 of the Loan Agreement is hereby amended by deleting the
existing definition of "Loan" or "Loans" and inserting the following in its
stead:

<PAGE>

      "Loan" or "Loans" shall mean, singularly or collectively, as the context
      may require, the Revolving Credit Loans, the Swing Line Loans and any
      other credit to any Borrower extended by any Bank in accordance with
      Article II hereof as evidenced by the Notes, as the case may be.

      4. Section 1.01 of the Loan Agreement is hereby amended by deleting the
existing definition of "Note" or "Notes" and inserting the following in its
stead:

      "Note" or "Notes" shall mean, singularly or collectively as the context
      may require, the Citizens Revolving Credit Note, the NCB Revolving Credit
      Note, the Fifth Third Revolving Credit Note, the Swing Line Note and any
      other note of the Borrowers executed and delivered pursuant to this
      Agreement, as any such note may be amended, modified or supplemented from
      time to time, together with all extensions, renewals, refinancings or
      refundings in whole or in part.

      5. Section 1.01 of the Loan Agreement is hereby amended by deleting the
existing definition of "Office" and inserting the following in its stead:

      "Office", when used in connection with (i) Citizens or the Agent, shall
      mean its designated office located at 525 William Penn Place, Pittsburgh,
      Pennsylvania 15219 or such other office of Citizens or the Agent as
      Citizens or the Agent may designate in writing from time to time, or (ii)
      any other Bank, shall mean its designated office identified on Schedule 1
      attached hereto and made a part hereof with respect to such Bank or such
      other office of such Bank as such Bank may designate in writing from time
      to time.

      6. Section 1.01 of the Loan Agreement is hereby amended by inserting the
following definitions:

      "Costs in Excess of Billings Ratio" shall mean, the ratio of (i) Costs in
      Excess of Billings as of the date of determination to (ii) Total Revenue
      for the month ending on the date of determination.

      "Libor Advantage Loan Interest Payment Date" shall mean, initially, April
      1, 2003, and thereafter the numerically corresponding date of each month.
      If a month does not contain a day that numerically corresponds to the date
      of the Libor Advantage Loan Interest Payment Date, the Libor Advantage
      Loan Interest Payment Date shall be the last day of such month.

      "Libor Advantage Loan Interest Period" shall mean, initially, the period
      commencing on March 24, 2003 (the "Start Date") and ending on the
      numerically corresponding date one (1) month later, and thereafter each
      one (1) month period ending on the day of such

                                      -2-
<PAGE>

      month that numerically corresponds to the Start Date. If a Libor Advantage
      Loan Interest Period is to end in a month for which there is no day which
      numerically corresponds to the Start Date, the Libor Advantage Loan
      Interest Period will end on the last day of such month.

      "Libor Advantage Rate" shall mean, relative to any Libor Advantage Loan
      Interest Period, the offered rate for delivery in two (2) London Banking
      Days (as defined below) of deposits of U.S. Dollars which the British
      Bankers' Association fixes as its LIBOR rate and which appears on the
      Telerate page 3750 as of 11:00 a.m. London time on the day on which the
      Libor Advantage Loan Interest Period commences, and for a period
      approximately equal to such Libor Advantage Loan Interest Period. If the
      first (1st) day of any Libor Advantage Loan Interest Period is not a day
      which is both a (i) Business Day, and (ii) a day on which U.S. Dollar
      deposits are transacted in the London interbank market (a "London Banking
      Day"), the Libor Advantage Rate shall be determined in reference to the
      next preceding day which is both a Business Day and a London Banking Day.
      If for any reason the Libor Advantage Rate is unavailable and/or the Swing
      Line Lender is unable to determine the Libor Advantage Rate for any Libor
      Advantage Loan Interest Period, the Libor Advantage Rate shall be deemed
      to be equal to the Prime Rate.

      "Libor Advantage Rate Loan" shall mean any Loan that bears interest with
      reference to the Libor Advantage Rate.

      "Refunded Swing Line Loans" shall mean as set forth in Section 2.01.5(d)
      hereof.

      "Swing Line Lender" shall mean Citizens, in its capacity as Swing Line
      Lender, or any Person serving as a successor Swing Line Lender hereunder.

      "Swing Line Loan Facility" shall mean as set forth in Section 2.01.5(a)
      hereof.

      "Swing Line Loans" shall mean the Loans made by the Swing Line Lender to
      the Borrowers pursuant to Section 2.01.5 hereof.

      "Swing Line Note" shall mean the Swing Line Note, dated March 24, 2003,
      made by the Borrowers to the Swing Line Lender, as amended, modified or
      supplemented from time to time, together with all extensions, renewals,
      refinancings or refundings in whole or in part.

                                      -3-
<PAGE>

      "Total Revenue" shall mean, for the period of determination, total revenue
      determined and Consolidated for the Borrowers and their Subsidiaries in
      accordance with GAAP.

      7. The first sentence of Section 2.01(a) of the Loan Agreement is hereby
deleted in its entirety and in its stead is inserted the following:

      Subject to the terms and conditions and relying upon the representations
      and warranties set forth in this Agreement, the Notes and the other Loan
      Documents, the Banks severally (but not jointly) agree to make loans (the
      "Revolving Credit Loans") to the Borrowers at any time or from time to
      time on or after the Closing Date and to and including the Business Day
      immediately preceding the Expiry Date in an aggregate principal amount
      which, when combined with the aggregate principal amount of all Swing Line
      Loans outstanding and the aggregate Letter of Credit Undrawn Availability,
      shall not exceed at any one time outstanding Forty Million and 00/100
      Dollars ($40,000,000.00) (the "Revolving Credit Facility Commitment");
      provided, however, that no Bank shall be required to make Revolving Credit
      Loans (or participate in the issuance of Letters of Credit) in an
      aggregate principal amount outstanding at any one time exceeding such
      Bank's Commitment Percentage.

      8. The first and second sentences of Section 2.01(d) of the Loan Agreement
are hereby deleted in their entirety and in their stead are inserted the
following:

      The sum of the aggregate principal amount of all Revolving Credit Loans
      outstanding, the sum of the aggregate principal amount of all Swing Line
      Loans outstanding and the aggregate Letter of Credit Undrawn Availability
      shall not exceed the amount of the Revolving Credit Facility Commitment.
      The Borrowers agree that if at any time the sum of the aggregate principal
      amount of all Revolving Credit Loans outstanding, the sum of the aggregate
      principal amount of all Swing Line Loans outstanding and the aggregate
      Letter of Credit Undrawn Availability exceeds the amount of the Revolving
      Credit Facility Commitment (the "Excess Amount"), the Borrowers shall
      promptly, but in no event later than one Business Day thereafter, pay to
      the Agent (for the ratable benefit of the Banks) such Excess Amount.

      9. Article II of the Loan Agreement is hereby amended by inserting the
following as Section 2.01.5:

      2.01.5 Swing Line Loan Facility.

                                      -4-
<PAGE>

            (a) Swing Line Loans. Subject to the terms and conditions and
      relying upon the representations and warranties set forth in this
      Agreement and the other Loan Documents, the Swing Line Lender may, in its
      sole and absolute discretion, make available to the Borrowers at any time
      and from time to time during the period from the Closing Date through and
      including the Business Day immediately preceding the earlier of (i) the
      date upon which the aggregate unpaid principal balance of the Swing Line
      Loans become due and payable by demand or (ii) the Expiry Date, by making
      Swing Line Loans to the Borrowers in an aggregate principal amount not
      exceeding at any one time outstanding Five Million and 00/100 Dollars
      ($5,000,000.00) (the "Swing Line Loan Facility"). If not sooner paid, each
      Swing Line Loan, all unpaid interest thereon and all other sums and costs
      incurred hereunder with respect to such Swing Line Loan shall be
      immediately due and payable on the earlier of (i) thirty (30) Business
      Days from the date such Swing Line Loan was made, (ii) demand or (iii) the
      Expiry Date, without notice, presentment or demand (unless payable by
      demand). Within the limits of time and amount set forth in this Section
      2.01.5, and subject to the provisions of this Agreement including, without
      limitation, the Swing Line Lender's right to demand repayment of the Swing
      Line Loans at any time with or without the occurrence of an Event of
      Default, the Borrowers may borrow, repay and reborrow under this Section
      2.01.5.

            (b) Swing Line Note. The obligation of the Borrowers to repay the
      unpaid principal amount of the Swing Line Loans made to the Borrowers by
      the Swing Line Lender and to pay interest on the unpaid principal amount
      thereof will be evidenced by the Swing Line Note of the Borrowers. The
      executed Swing Line Note will be delivered by the Borrowers to the Swing
      Line Lender on March 24, 2003.

            (c) Making Swing Line Loans. Subject to the terms and conditions set
      forth in this Agreement and the other Loan Documents, and provided that
      the Borrowers have satisfied all applicable conditions specified in
      Article IV hereof, the Swing Line Lender may, in its sole and absolute
      discretion, make Swing Line Loans to the Borrowers on such Business Day
      and in such amount as (i) an Authorized Representative of the Borrowers
      shall request by written or telephonic notice (confirmed promptly, but in
      no event later than one (1) Business Day thereafter in writing) received
      by the Swing Line Lender no later than 10:00 a.m. (Pittsburgh,
      Pennsylvania time) on the date of requested disbursement of the Swing Line
      Loan or (ii) as otherwise agreed to by the Borrowers and the Swing Line
      Lender in accordance with

                                      -5-
<PAGE>

      the Cash Management Master Agreement, dated March 24, 2003, by and among
      the Swing Line Lender and the Borrowers which incorporates by reference
      the Cash Sweep Terms and Conditions executed by the Borrowers and accepted
      by the Swing Line Lender on March 24, 2003 (collectively, the "Cash
      Management Agreement"). Subject to the terms and conditions of this
      Agreement and the terms and conditions of the Cash Management Agreement,
      on each borrowing date, the Swing Line Lender shall make the proceeds of
      the Swing Line Loan available to the Borrowers at the Swing Line Lender's
      Office in immediately available funds not later than 2:00 p.m.,
      Pittsburgh, Pennsylvania time. Notwithstanding anything contained herein,
      the Swing Line Lender shall notify the Borrowers prior to terminating the
      Swing Line Loan Facility and/or the services provided under the Cash
      Management Agreement. The Swing Line Lender shall give notice to the Agent
      no later than 10:00 a.m. (Pittsburgh, Pennsylvania time) of the next
      Business Day or such other time as the Agent and the Swing Line Lender may
      agree of the amount of each such Swing Line Loan.

            (d) Refunded Swing Line Loans. With respect to any Swing Line Loans,
      the Swing Line Lender may, at any time in its sole and absolute
      discretion, deliver to the Agent (with a copy to the Borrowers), no later
      than 10:00 a.m. (Pittsburgh, Pennsylvania time) on the first (1st)
      Business Day immediately preceding the proposed date of disbursement, a
      notice (which shall be deemed to be a notice of borrowing given by an
      Authorized Representative) requesting the Banks to make Revolving Credit
      Loans that are Prime Rate Loans on such date in an amount equal to the
      lesser of (a) the amount of such Swing Line Loans outstanding on the date
      such notice is given which the Swing Line Lender requests the Banks to
      prepay or (b) the difference between the amount of the Swing Line Loan
      Facility minus the sum of (a) the Swing Line Lender's Pro Rata Share of
      Letter of Credit Undrawn Availability plus (b) the amount of the Swing
      Line Lender's outstanding Revolving Credit Loans (the lesser of (a) and
      (b) is the "Refunded Swing Line Loans"). Anything contained in this
      Agreement to the contrary notwithstanding, (i) the proceeds of such
      Revolving Credit Loans made by Banks other than the Swing Line Lender
      shall be immediately delivered by the Agent to the Swing Line Lender (and
      not to the Borrowers) and applied to repay a corresponding portion of the
      Refunded Swing Line Loans and (ii) on the day such Revolving Credit Loans
      are made, the Swing Line Lender's Pro Rata Share of the Refunded Swing
      Line Loans shall be deemed to be paid with the proceeds of a Revolving
      Credit Loan made by the Swing Line Lender, and such portion of the Swing
      Line Loans deemed to be so paid shall no longer be

                                      -6-
<PAGE>

      outstanding as Swing Line Loans and shall no longer be due under the Swing
      Line Note of the Swing Line Lender but shall instead constitute part of
      the Swing Line Lender's outstanding Revolving Credit Loans and shall be
      due under the Revolving Credit Note of the Swing Line Lender.

            Anything contained herein to the contrary notwithstanding, each
      Bank's obligation to make Revolving Credit Loans for the purpose of
      repaying any Refunded Swing Line Loans pursuant to the immediately
      preceding paragraph shall be absolute and unconditional and shall not be
      affected by any circumstance, including (a) any set-off, counterclaim,
      recoupment, defense or other right which such Bank may have against the
      Swing Line Lender, the Borrowers or any other Person for any reason
      whatsoever; (b) the occurrence or continuation of an Event of Default or a
      Potential Default; (c) any Material Adverse Change; (d) any breach of this
      Agreement or any other Loan Document by the Borrowers; or (e) any other
      circumstance, happening or event whatsoever, whether or not similar to any
      of the foregoing; provided that such obligations of each Bank are subject
      to the condition that (X) the Swing Line Lender believed in good faith
      that all conditions under Article IV to the making of the applicable Swing
      Line Loans were satisfied at the time such Swing Line Loans were made or
      (Y) the satisfaction of any such condition not satisfied had been waived
      in writing by the Banks prior to or at the time such Swing Line Loans were
      made.

      10. The introductory clause of Section 2.02(a) of the Loan Agreement is
hereby deleted in its entirety and in its stead is inserted the following:

            (a) Interest on the Revolving Credit Loans and Swing Line Loans.
      Subject to the terms and conditions of this Agreement, the aggregate
      outstanding principal balance of the Swing Line Loans shall be Libor
      Advantage Rate Loans which shall bear interest during each applicable
      Libor Advantage Loan Interest Period at the Libor Advantage Rate plus the
      Applicable Libor Margin as determined below and the aggregate outstanding
      principal balance of the Revolving Credit Loans shall be, at the option of
      the Borrowers as selected pursuant to Section 2.01(c) hereof, (x) Prime
      Rate Loans which shall bear interest for each day at the rates set forth
      below or (y) Libor Rate Loans which shall bear interest during each
      applicable Interest Period at the rates set forth below:

      11. Section 2.03 of the Loan Agreement is hereby deleted in its entirety
and in its stead is inserted the following:

                                      -7-
<PAGE>

            2.03 Interest Payments. The Borrowers shall pay to the Agent for the
      ratable account of the Banks interest on the aggregate outstanding balance
      of the Revolving Credit Loans which are Prime Rate Loans in arrears, on
      April 1, 2003 and on the first day of each calendar month thereafter
      through and including the Expiry Date. The Borrowers shall pay to the
      Agent for the ratable account of the Banks interest on the unpaid
      principal balance of the Revolving Credit Loans that are Libor Rate Loans
      on the earlier of (i) the last day of the applicable Interest Period for
      such Loan or (ii) for such Loans with an applicable Interest Period
      exceeding three (3) months, on each and every three (3) month anniversary
      of each such Loan during the period from the Closing Date to and including
      the Expiry Date. The Borrowers shall pay to the Swing Line Lender interest
      on the unpaid principal balance of the aggregate outstanding balance of
      the Swing Line Loans in arrears, on each Libor Advantage Loan Interest
      Payment Date through and including the earlier of demand or the Expiry
      Date. After maturity of any part of the Loans (whether upon the occurrence
      of an Event of Default, by acceleration, demand or otherwise), interest on
      such part of the Loans shall be immediately due and payable upon delivery
      by the Agent of an invoice for such interest without further notice,
      presentment, or demand of any kind.

      12. Section 2.04(a) of the Loan Agreement is hereby deleted in its
entirety and in its stead is inserted the following:

            (a) The Borrowers shall pay to the Agent for the account of each
      Bank, (i) a commitment fee on the unused portion of the Revolving Credit
      Facility Commitment during the period from the date of this Agreement to
      the Expiry Date, payable quarterly in arrears on the first (1st) day of
      each April, July, October and January of each calendar year and on the
      Expiry Date. Such fee shall be equal to the amount by which the amount of
      each Bank's Commitment has exceeded the average daily closing principal
      balance of the sum of such Bank's Revolving Credit Loans (for purposes of
      this computation, the Swing Line Loans shall be deemed to be borrowed
      amounts under the Revolving Credit Commitment of Citizens) plus its Pro
      Rata Share of the Letter of Credit Undrawn Availability during the
      preceding calendar quarter, multiplied by three-eights of one percent
      (0.375%), multiplied by a fraction, the numerator of which is the actual
      number of days in such calendar quarter and the denominator of which is
      three hundred sixty (360); and (ii) the Letter of Credit Commission
      pursuant to Section 2.06 hereof.

                                      -8-
<PAGE>

      13. The first sentence of Section 2.05 of the Loan Agreement is hereby
deleted in its entirety and in its stead is inserted the following:

            From time to time during the period from the Closing Date to the
      thirtieth (30th) day preceding the Expiry Date, subject to the further
      terms and conditions hereof, including those required in connection with
      the making of Revolving Credit Loans, the Agent shall issue standby
      letters of credit or trade letters of credit (collectively with the
      Existing Letters of Credit, the "Letters of Credit") for the account of
      the Borrowers in an amount not to exceed Twenty Million and 00/100 Dollars
      ($20,000,000.00) in the aggregate as a subfacility of the Revolving Credit
      Facility Commitment; provided, however, that on any date on which the
      Borrowers request a Letter of Credit, and after giving effect to the
      Letter of Credit Face Amount of such Letter of Credit, the sum of all
      Revolving Credit Loans outstanding, the sum of all Swing Line Loans
      outstanding and the Letter of Credit Undrawn Availability shall not exceed
      the Revolving Credit Facility Commitment.

      14. Section 6.14 of the Loan Agreement is hereby deleted in its entirety
and in its stead is inserted the following:

            6.14 Costs in Excess of Billings. The Borrowers shall maintain a
      Costs in Excess of Billings Ratio in an amount which shall not exceed (i)
      1.50 to 1.00 as of March 31, 2003 and June 30, 2003 and (ii) 1.35 to 1.00
      as of September 30, 2003. The Borrowers' Costs in Excess of Billings shall
      not exceed Thirty Eight Million and 00/100 Dollars ($38,000,000.00) as of
      December 31, 2003, and as of the last day of each March, June, September
      and December thereafter through the Expiry Date.

      15. The provisions of Sections 2 through 14 of this Fourth Amendment shall
not become effective until the Agent has received the following, each in form
and substance acceptable to it:

            (a) a fully-executed and notarized Swing Line Note, made by the
      Borrowers to the Swing Line Lender in the original principal amount not to
      exceed Five Million and 00/100 Dollars ($5,000,000.00); and

            (b) such other documents as may be reasonably requested by the
      Agent.

      16. Pursuant to Section 6.10 of the Loan Agreement, the Borrowers agreed,
among other things, that they would not, and they would not permit any
Subsidiary to, make or commit to make, Capital Expenditures in any fiscal year
aggregating, for all Borrowers and Subsidiaries, more than Ten Million and
00/100 Dollars ($10,000,000.00). The Borrowers have informed the

                                      -9-
<PAGE>

Agent that the Borrowers and their Subsidiaries made or committed to make
Capital Expenditures for the fiscal year 2002 in the approximate amount of
Thirteen Million and 00/100 Dollars ($13,000,000.00).

      Notwithstanding the foregoing, the Borrowers have requested that the Agent
and the Banks waive the Event of Default that has occurred under the Loan
Agreement as a result of the above-described violation. The Agent and the Banks
hereby waive the Event of Default specifically described in this Paragraph 16.

      17. Each Borrower hereby reconfirms and reaffirms all representations and
warranties, agreements and covenants made by it pursuant to the terms and
conditions of the Loan Agreement, except as such representations and warranties,
agreements and covenants may have heretofore been amended, modified or waived in
writing in accordance with the Loan Agreement.

      18. Each Borrower hereby represents and warrants to the Banks and the
Agent that (i) such Borrower has the legal power and authority to execute and
deliver this Fourth Amendment, (ii) the officers of such Borrower executing this
Fourth Amendment have been duly authorized to execute and deliver the same and
bind such Borrower with respect to the provisions hereof, (iii) the execution
and delivery hereof by such Borrower and the performance and observance by such
Borrower of the provisions hereof and of the Loan Agreement and all documents
executed or to be executed therewith, do not violate or conflict with the
organizational agreements of such Borrower or any Law applicable to such
Borrower or result in a breach of any provision of or constitute a default under
any other agreement, instrument or document binding upon or enforceable against
such Borrower, and (iv) this Fourth Amendment, the Loan Agreement and the
documents executed or to be executed by such Borrower in connection herewith or
therewith constitute valid and binding obligations of such Borrower in every
respect, enforceable in accordance with their respective terms.

      19. Subject to the provisions of Paragraph 16 of this Fourth Amendment,
each Borrower represents and warrants that (i) no Event of Default exists under
the Loan Agreement, nor will any occur as a result of the execution and delivery
of this Fourth Amendment or the performance or observance of any provision
hereof, (ii) the Schedules attached to and made a part of the Loan Agreement are
true and correct in all material respects as of the date hereof, and (ii) it
presently has no known claims or actions of any kind at Law or in equity against
the Banks or the Agent arising out of or in any way relating to the Loan
Documents.

      20. Each reference to the Loan Agreement that is made in the Loan
Agreement or any other document executed or to be executed in connection
therewith shall hereafter be construed as a reference to the Loan Agreement as
amended hereby.

      21. The agreements contained in this Fourth Amendment are limited to the
specific agreements made herein. Except as amended hereby, all of the terms and
conditions of the Loan Agreement shall remain in full force and effect. This
Fourth Amendment amends the Loan Agreement and is not a novation thereof.

                                      -10-
<PAGE>

      22. This Fourth Amendment may be executed in any number of counterparts
and by the different parties hereto on separate counterparts each of which, when
so executed, shall be deemed to be an original, but all such counterparts shall
constitute but one and the same instrument.

      23. This Fourth Amendment shall be governed by, and shall be construed and
enforced in accordance with, the Laws of the Commonwealth of Pennsylvania
without regard to the principles of the conflicts of law thereof. Each Borrower
hereby consents to the jurisdiction and venue of the Court of Common Pleas of
Allegheny County, Pennsylvania and the United States District Court for the
Western District of Pennsylvania with respect to any suit arising out of or
mentioning this Fourth Amendment.

                           [INTENTIONALLY LEFT BLANK]

                                      -11-
<PAGE>

      IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto
have caused this Fourth Amendment to be duly executed by their duly authorized
officers as of the date above written.

<TABLE>
<S>                                                           <C>
Attest:                                                       Michael Baker Corporation

By:  /s/ H. James McKnight                                    By:  /s/ William P. Mooney
   --------------------------------------------------              ------------------------------------------------

Name:  H. James McKnight                                      Name: William P. Mooney
     ------------------------------------------------              ------------------------------------------------

Title: Executive V.P., General Counsel & Sec.                 Title:  Executive V.P. and CFO
      ---------------------------------------                         ---------------------------------------------

Attest:                                                       MICHAEL BAKER, JR., INC.

By:  /s/ H. James McKnight                                    By:  /s/ William P. Mooney
     ------------------------------------------------              ------------------------------------------------

Name:  H. James McKnight                                      Name: William P. Mooney
     ------------------------------------------------               -----------------------------------------------

Title: Executive V.P., General Counsel & Sec.                 Title:  Executive V.P. and CFO
      ---------------------------------------                         ---------------------------------------------

Attest:                                                       BAKER/MO SERVICES, INC.

By:  /s/ H. James McKnight                                    By:  /s/ William P. Mooney
     ------------------------------------------------             -------------------------------------------------

Name:  H. James McKnight                                      Name: William P. Mooney
     ------------------------------------------------               -----------------------------------------------

Title: Executive V.P., General Counsel & Sec.                Title:  Executive V.P. and CFO
      ---------------------------------------                       -----------------------------------------------

Attest:                                                       Baker/OTS, Inc.

By:  /s/ H. James McKnight                                    By:  /s/ William P. Mooney
     ------------------------------------------------            --------------------------------------------------

Name:  H. James McKnight                                      Name: William P. Mooney
     ------------------------------------------------               -----------------------------------------------

Title: Executive V.P., General Counsel & Sec.                 Title:  Executive V.P. and CFO
      ---------------------------------------                        ----------------------------------------------

Attest:                                                       Baker Engineering NY, Inc.

By:  /s/ H. James McKnight                                    By:  /s/ William P. Mooney
     ------------------------------------------------            --------------------------------------------------

Name:  H. James McKnight                                      Name: William P. Mooney
     ------------------------------------------------               -----------------------------------------------

Title: Executive V.P., General Counsel & Sec.                 Title:  Executive V.P. and CFO
      ---------------------------------------                        ----------------------------------------------
</TABLE>

<PAGE>

                         Citizens Bank of Pennsylvania, as Agent and
                         for itself as a Bank

                         By:  /s/ John J. Ligday Jr.
                            --------------------------------------------------

                         Name:   John J. Ligday Jr.
                               -----------------------------------------------

                         Title:  Vice President
                               -----------------------------------------------

                         National City Bank of Pennsylvania

                         By:  /s/ Susan J. Dimmick
                            --------------------------------------------------

                         Name:  Susan J. Dimmick
                              ------------------------------------------------

                         Title:  Vice President
                               -----------------------------------------------

                         Fifth Third Bank

                         By:  /s/  C.S. Helmeci
                            --------------------------------------------------

                         Name:  Christopher S. Helmeci
                              ------------------------------------------------

                         Title:  Vice President
                               -----------------------------------------------

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"}]]