Document:

Commitment Letter

 Exhibit 10.1 
 Wachovia Bank, N.A. 
 2211 Michelson, 2nd Floor 
 Irvine, California 92612 
 June 26, 2008 
 Dan Moses 
 Chief Financial Officer 
 STEC, Inc. 
 3001 Daimler Street 
 Santa Ana, CA 92705 
  

	Re:	$35 Million Revolving Credit Facility Commitment to STEC, Inc. 

 Dear
Mr. Moses, 
 Wachovia Bank, National Association (hereafter “Wachovia” or “Bank”) is pleased to offer you a commitment to lend as
more fully described in the Summary of Proposed Terms and Conditions attached hereto as Annex A (the “Term Sheet”, and together with this letter, the “Commitment” or “Commitment Letter”). 
 Wachovia’s obligations under this Commitment are conditioned on the fulfillment to Wachovia’s sole satisfaction of each term and condition referenced by this
Commitment. These terms and conditions are not exhaustive, and this Commitment is subject to certain other terms and closing conditions customarily required by Wachovia for similar transactions and may be supplemented prior to closing based upon
Wachovia’s investigation and/or as disclosure of Borrower’s circumstances so dictate. This Commitment will expire unless it is closed on or before July 30, 2008. This Commitment Letter shall not survive closing. 
 Wachovia has made this Commitment based upon the information supplied by STEC, Inc. (the “Borrower”). Wachovia shall have the right to cancel this Commitment,
whereupon Wachovia shall have no obligations hereunder, in the event of: (i) a material adverse change in the business, financial condition or operations of Borrower or any Guarantor (as defined herein), (ii) a material change in the
accuracy of the information, representations, exhibits or other written materials submitted by Borrower in connection with its request for financing; (iii) Borrower or any Guarantor shall file or make or have filed or made against it a petition
in bankruptcy, an assignment for the benefit of creditors or an action for the appointment of a receiver, or shall become insolvent, however evidenced or (iv) there is a material change in the structure or ownership of the Borrower. 

This Commitment supersedes all prior commitments and proposals with respect to this transaction, whether written or oral, including any previous loan proposals made
by Wachovia or anyone acting with its authorization. No modification shall be valid unless made in writing and signed by an authorized officer of Wachovia. This Commitment is not assignable, and no party other than Borrower shall be entitled to rely
on this Commitment. 

 Dan Moses 
 June 26, 2008

 Page 2 
 Please indicate your acceptance of this offer and the
terms and conditions contained herein by signing below and returning one executed copy of this Commitment Letter together with one executed copy of the letter to the undersigned dated June 25, 2008 regarding fees (the “Fee Letter”) to
the undersigned. This Commitment shall expire unless the acceptance of this Commitment Letter and the Fee Letter is received by the undersigned on or before 5:00pm, Pacific Daylight Time, June 27, 2008. 
 Thank you for allowing Wachovia to be of service. Please do not hesitate to call us if we can be of further assistance. 
 Sincerely, 
  

			
	WACHOVIA BANK, NATIONAL ASSOCIATION
		
	By:	 	/s/ Kenneth C. Coulter
		 	 Kenneth C. Coulter
 Vice President
 Risk Manager
 (949) 567-6289

 The above Commitment Letter is agreed to and accepted on the terms and conditions provided in this letter.

 STEC, Inc. 
  

									
	By: 	 	/s/ Dan Moses	 		 		 	June 26, 2008
	 Name: Dan Moses
	 		 		 	 Date

	 Title: Chief Financial Officer
	 		 		 	

 ANNEX A 
 SUMMARY OF PROPOSED TERMS AND CONDITIONS 
 BORROWER: 
 STEC, Inc. (the “Borrower”) 
 AMOUNT: 
 The amount of this facility shall be $35,000,000.00 (“Facility Amount”) in the form of a revolving line of credit (the “Facility”). 
 PURPOSE: 
 This Facility shall be used to finance working capital
needs. 
 TERM: 
 This Facility shall have a term of two
years. Borrower may borrow, repay and reborrow from time to time provided the total indebtedness does not exceed the Facility Amount. Bank’s commitment to lend shall terminate on the second anniversary of the Closing Date of the Facility.

 DOCUMENTS: This Commitment does not set forth all the terms and conditions of the Facility offered herein. As a condition of closing, Wachovia will
require the execution of definitive loan documentation, prepared by Bank’s legal counsel, which will contain terms and conditions not set forth herein, including such representations, warranties, affirmative and negative covenants, indemnities,
closing conditions, defaults and remedies as are typically required by Wachovia and/or deemed appropriate for this specific transaction. The failure of Borrower and Wachovia to reach agreement on the loan documents shall not be deemed a breach by
Wachovia of this Commitment. Unless Wachovia agrees otherwise in writing, completion of all documents is a condition of closing. 
 INTEREST RATE: 

 Interest rates in connection with the Facility will be as specified on Schedule I attached hereto. 
 The interest rate will be, for each applicable interest period, the rate selected by the Borrower from the following: 
  

	 	•	 	 The Base Rate plus the Applicable Interest Margin as outlined in Schedule I, as that rate may change from time to time. “Base Rate” shall be the rate
announced by Wachovia from time to time as its Prime Rate, and is not necessarily the lowest rate offered by Wachovia; or 

  

	 	•	 	 1-month, 3-month, 6-month or 9-month LIBOR plus the Applicable Interest Margin as outlined in Schedule I. “LIBOR” is the rate for U.S. dollar deposits of
that many months maturity as reported on Reuters Screen LIBOR01 Page or any successor thereto as of 11:00 a.m., London time, on the second London business day before the relevant interest period begins (or if not so reported, then as determined by
the Bank from another recognized Bank or interbank quotation). 

  

 1 

 REPAYMENT: 
 This
facility shall be repayable in quarterly payments of accrued interest only until the maturity date when all remaining principal and interest shall be due. Borrower may borrow, repay and reborrow principal under this facility. 
 FEES: 
 Borrower shall pay to the Bank an availability fee and a
commitment fee as provided in the Fee Letter. 
 GUARANTORS: 
 The obligations of the Borrower under the Facility, under any hedging agreements entered into between any Loan Party (as defined below) and the Bank (or any affiliate thereof) at the time such hedging agreement is executed and under any
treasury management arrangements between any Loan Party and the Bank will be unconditionally guaranteed, on a joint and several basis, by each existing and subsequently acquired or organized direct and indirect material subsidiary of the Borrower
(each a “Guarantor”; and such guarantee being referred to herein as a “Guarantee”); provided that Guarantees by foreign subsidiaries will be required only to the extent such Guarantees would not have material adverse tax
consequences for the Borrower. All Guarantees shall be guarantees of payment and not of collection. The Borrower and the Guarantors are herein referred to as the “Loan Parties” and, individually, as a “Loan Party.” 
 ACCORDION: 
 At any time prior to the expiration of Facility, and so
long as no Default or Event of Default shall have occurred which is continuing, the Borrower may elect to increase the aggregate Facility Amount to an amount not exceeding $50,000,000, provided that (i) the Borrower shall give adequate notice
to be determined, (ii) the Bank shall have the first right (but not the obligation) to subscribe to the proposed increase in the Facility Amount, by giving adequate notice to be determined, and only if Bank does not exercise such election may
the Borrower elect to add new lenders, (iii) the Bank shall not be required to increase its commitment unless it shall have expressly agreed to such increase in writing, (iv) the addition of new lenders shall be subject to approval by both
the Borrower and the Bank, which approval shall not be unreasonably withheld, and shall be subject to certain minimum commitment amounts, (v) the Borrower shall execute and deliver such additional or replacement Notes and the Borrower and the
new lenders shall execute and deliver such other documentation (including evidence of proper authorization) as may be reasonably requested by the Bank or any new lender, (vi) the Bank shall not have any right to decrease its commitment as a
result of such increase of the aggregate Facility Amount, (vii) the Bank shall have the right to control the syndication of the increase in the Facility Amount; provided that the Bank shall have no obligation to arrange, find or locate any
lender or new bank or financial institution to participate in any unsubscribed portion of such increase in the aggregate Facility Amount, (viii) the Bank shall be appointed as the administrative agent for the Facility and shall receive an
administrative agent fee to be mutually agreed, and (ix) such 

  

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option to increase the Facility Amount may only be exercised once. The Borrower shall be required to pay (or to reimburse) any breakage costs incurred by
Bank in connection with the need to reallocate existing loans following any increase in the Facility Amount pursuant to this provision. 
 FINANCIAL
STATEMENTS: 
 Borrower and/or Guarantor, as indicated below, shall furnish to Wachovia the following financial information, in each instance prepared in
accordance with generally accepted accounting principles consistently applied and otherwise in form (with original signatures) and substance satisfactory to Bank and in the case of Annual Financial Statements and Periodic Financial Statements, shall
be accompanied by management discussion and analysis thereof: 
  

	 	•	 	 Annual Financial Statements. As soon as available, but in any event within ninety (90) days after the end of each fiscal year of the Borrower, Borrower
shall deliver to the Bank a copy of the consolidated balance sheet of the Borrower and its consolidated subsidiaries as at the end of such fiscal year and the related consolidated statements of income, cash flows and retained earnings of the
Borrower and its consolidated subsidiaries for such year, audited by a firm of independent certified public accountants reasonably acceptable to the Bank, setting forth in each case in comparative form the figures for the preceding fiscal year,
reported on without a “going concern” or like qualification, exception or assumption, or qualification or assumption indicating that the scope of the audit was inadequate to permit such independent certified public accountants to certify
such financial statements without such qualification. 

  

	 	•	 	 Quarterly Financial Statements. As soon as available and in any event within forty-five (45) days after the end of each fiscal quarter of the Borrower,
a company-prepared consolidated balance sheet of the Borrower and its consolidated subsidiaries as at the end of such period and related company-prepared consolidated statements of income, cash flows and retained earnings for the Borrower and its
consolidated subsidiaries for such quarterly period and for the portion of the fiscal year ending with such period, in each case setting forth in comparative form the figures for the corresponding period or periods of the preceding fiscal year and
the figures for the corresponding period or periods as set forth in the most recent budget. 

  

	 	•	 	 Budget. As soon as practicable, and in any event within forty-five (45) days after the end of each fiscal year, a consolidated budget and cash flow
projections on a quarterly basis of the Borrower and its consolidated subsidiaries for the next succeeding fiscal year, in form and detail reasonably acceptable to the Bank, such budget to be prepared by the Borrower in a manner consistent with GAAP
and to include an operating and capital budget and a summary of the material assumptions made in the preparation of such budget. Such budget shall be accompanied by a certificate of the managing member or chief financial officer of the Borrower to
the effect that the budgets and other financial data are based on reasonable estimates and assumptions, all of which are fair in light of the conditions which existed at the time the budget was made, have been prepared on the basis of the
assumptions stated therein, and reflect, as of the time so furnished, the reasonable estimate of the Borrower and its subsidiaries of the budgeted results of the operations and other information budgeted therein. 

  

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 CONDITIONS TO CLOSING: 
  

	 	•	 	 Opinion of Counsel. On or prior to the closing date of the Facility, Borrower will provide Wachovia with an opinion letter, in form and substance
satisfactory to Wachovia, from an attorney acceptable to Wachovia. The opinion will provide, to Wachovia’s satisfaction, that the Borrower and Guarantors are duly organized and validly existing under the laws of the jurisdictions where Borrower
and any Guarantors are organized, are qualified to transact business, and have full power and authority to undertake the activities contemplated by the Facility; that all Loan Documents have been duly authorized, executed and delivered by Borrower
and Guarantors; and that the loan and its terms do not violate any laws and such other matters and opinions as Wachovia reasonably requests. 

  

	 	•	 	 Operating Documents. Wachovia shall have received from each Borrower and each Guarantor, as applicable, a copy of Borrower’s and each Guarantor’s
by-laws, partnership agreement, or operating agreement, certified as to completeness and accuracy by an appropriate officer, manager or partner of Borrower and each Guarantor, as applicable. 

  

	 	•	 	 Charter Documents. Wachovia shall have received from Borrower and each Guarantor a copy of its Articles of Incorporation or Organization, as
appropriate, for the legal entity and all other charter documents of Borrower and each Guarantor, as applicable, all certified by the Secretary of State of the state of Borrower’s and each Guarantor’s incorporation or organization,
as appropriate. 

  

	 	•	 	 ERISA. Each employee pension benefit plan, as defined in ERISA, maintained by Borrower or each Guarantor, as applicable meets, as of date hereof, the minimum
funding standards of ERISA and all applicable regulations thereto and requirements thereof, and of the Internal Revenue Code of 1986, as amended. No “Prohibited Transaction” or “Reportable Event” (as both terms are defined by
ERISA) has occurred with respect to any such plan. 

  

	 	•	 	 Certificate of Good Standing. Wachovia shall have received from Borrower and each Guarantor, as applicable, a certificate of the Secretary of State of the
state of Borrower’s and each Guarantor’s incorporation or organization, as applicable, as to the good standing of Borrower and each Guarantor. 

  

	 	•	 	 Certificate of Incumbency. Wachovia shall have received from Borrower and each Guarantor, as applicable, a certificate of an appropriate officer of Borrower
and each Guarantor as to the incumbency and signatures of the officers of Borrower and each Guarantor executing the Loan Documents. 

  

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	 	•	 	 Borrowing Authorization. Bank shall have received from Borrower and each Guarantor, as applicable, a borrowing resolution or other proof of authority to
enter into the transactions contemplated herein. 

  

	 	•	 	 Deposit Account. Borrower shall create a demand deposit account at Wachovia into which advance of the loan may be credited and from which monthly payments
shall be automatically deducted. 

  

	 	•	 	 Due Diligence. The Bank not becoming aware of any material information or other matter that is inconsistent in a material and adverse manner with any
previous due diligence, information or matter (including any financial information and projections previously delivered to the Bank). 

 CONDITIONS TO ALL EXTENSIONS OF CREDIT: 
 Each extension of credit under the Facility will be subject to the (a) absence of any default
and (b) continued accuracy of representations and warranties. 
 REPRESENTATIONS AND WARRANTIES: 
 Usual and customary for facilities of this type and such others as may be reasonably requested by the Bank, including, without limitation, the following (which will be
applicable to the Borrower and its subsidiaries and be subject to materiality thresholds and exceptions to be mutually agreed): corporate status, financial statements; capital structure; corporate power and authority; no default; no conflict with
laws or material agreements; enforceability; absence of material litigation, environmental regulations and liabilities; ERISA; necessary consents and approvals; compliance with all applicable laws and regulations including Regulations U and X,
Investment Company Act, the Patriot Act, environmental laws and as to not being a sanctioned person; payment of taxes and other obligations; ownership of properties; intellectual property; liens; insurance; solvency; absence of any material adverse
change; senior debt status; investments, location of assets; labor matters; material contracts; no burdensome restrictions; and accuracy of disclosure. 
  

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 AFFIRMATIVE COVENANTS: 
 Usual and customary for facilities of this type and such others as may be reasonably requested by the Bank, including, without limitation, the following (which will be applicable to the Borrower and its subsidiaries and be subject to
materiality thresholds and exceptions to be mutually agreed): use of proceeds; payment of taxes and other obligations; continuation of business and maintenance of existence and rights and privileges; maintenance of all material contracts, necessary
consents, approvals, licenses and permits; compliance with laws and regulations (including environmental laws, ERISA and the Patriot Act); maintenance of property and insurance (including hazard and business interruption insurance); maintenance of
books and records; right of the Bank to inspect property and books and records; notices of defaults, litigation and other material events; financial reporting (as outlined in this Commitment); additional Guarantors and further assurances.

 NEGATIVE COVENANTS: 
 Usual and customary for
facilities of this type and such others as may be reasonably requested by the Bank, including, without limitation, the following (which will be applicable to the Borrower and its subsidiaries and be subject to materiality thresholds and exceptions
to be mutually agreed): limitation on debt; limitation on liens; limitation on further negative pledges; limitation on investments; limitation on dividends, distributions, issuances of equity interests (except for common stock issuances),
redemptions and repurchases of equity interests; limitation on mergers, acquisitions and asset sales; limitation on contingent obligations and guarantees; limitation on sale-leaseback transactions; limitation on prepayments, redemptions and
purchases of subordinated and certain other debt; limitation on transactions with affiliates; limitation on dividend and other payment restrictions affecting subsidiaries; limitation on changes in line of business, fiscal year and accounting
practices; limitation on speculative transactions; limitation on amendment of organizational documents and material contracts; limitation on additional designated senior debt. 
 FINANCIAL COVENANTS: 
 Usual and customary for facilities of this type and such others as may be reasonably requested
by the Bank, including, without limitation, the following: 
  

	 	•	 	 Maximum Leverage Ratio (defined as Total Debt to EBITDA) of not more than 2.5 to 1.0 until the quarter ended December 31, 2008, or 2.0 to 1.0 thereafter; and

  

	 	•	 	 Minimum Liquidity Ratio (defined as unencumbered cash divided by Total Liabilities) of not less than 20%. 

 The financial covenants will apply to the Borrower and its subsidiaries on a consolidated basis. 
 EVENTS OF DEFAULT: 
 Usual and customary for facilities of this type and such others as may be reasonably requested by
the Bank, including, without limitation, the following (with materiality thresholds, exceptions and grace periods to be mutually agreed): non-payment of obligations; breach of representation 

  

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or warranty; non-performance of covenants and obligations; default on other material debt (including secured hedging agreements); change of control (to be
defined as mutually agreed) bankruptcy or insolvency; ERISA; material judgments; and termination or default under material contracts or licenses. 
 YIELD
PROTECTION AND INCREASED COSTS: 
 Customary for facilities of this type, including, without limitation, in respect of breakage or redeployment costs
incurred in connection with prepayments, changes in capital adequacy and capital requirements or their interpretation, illegality, unavailability, reserves without proration or offset and payments free and clear of withholding or other taxes.

 INDEMNIFICATION: 
 The Loan Parties will indemnify the
Bank and its respective affiliates, partners, directors, officers, agents and advisors and hold them harmless from and against all liabilities, damages, claims, costs, expenses (including reasonable fees, disbursements, settlement costs and other
charges of counsel) relating to the Transactions or any transactions related thereto and the Borrower’s use of the loan proceeds or the commitments; provided that such indemnity will not, as to any indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such indemnitee. 
 COSTS: 
 Borrower shall pay all costs, expenses and fees (including,
without limitation, any reasonable attorneys’ fees and expenses) associated with this transaction, regardless of whether the transaction actually closes. Bank has engaged outside legal counsel to represent Bank in the preparation of loan
documentation and closing of the transaction contemplated herein. Bank is not providing legal advice or services to Borrower. 
 GOVERNING LAW:

 California 
 BANK COUNSEL: 
 Mayer Brown LLP 
  

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 Annex A 
 Schedule I 
 PRICING GRID 
 The Applicable Interest Margins with respect to the Facility shall be based on the Total Leverage Ratio pursuant to the following grid: 
  

							
	 Total Debt/EBITDA
	  	LIBOR
Margin	 	 	Base
Margin	 
	 >1.50 x, but <2.50x
	  	1.20	%	 	-1.00	%
	 >1.00 x, but <1.50x
	  	0.95	%	 	-1.25	%
	 <1.00x
	  	0.70	%	 	-1.50	%

  

 82007 Incentive Compensation Plan

 Exhibit 10.1 
 MICHAEL BAKER CORPORATION 
 2007 INCENTIVE COMPENSATION PLAN 
 Section 1. Purpose. The purpose of the Michael Baker Corporation 2007 Incentive Compensation Plan (the “Plan”) is to
provide for an incentive payment opportunity to employees of Michael Baker Corporation (the “Company”) and its subsidiaries, which may be earned upon the achievement of established performance goals. By providing an incentive
payment opportunity based upon market-based performance goals, the Company will establish a clear line of sight between the overall performance of the Company and the individual contribution of each employee. 
 Section 2. Effective Date. The effective date of this Plan is January 1, 2007. The Plan will remain in effect from year to year
(each calendar year shall be referred to herein as a “Plan Year”) until formally amended or terminated in writing by the Company’s Board of Directors (the “Board”). 
 Section 3. Administration of the Plan. 
 Section 3.01. Committee. Full power and authority to administer, construe and interpret the Plan, and any incentive program described within the Plan (any “Incentive Program”) shall
be vested in the Compensation Committee of the Board (the “Committee”). The Committee may delegate to any agent as it deems appropriate to assist it with the administration of the Plan. Any determination, action or records of the
Committee shall be final, conclusive and binding on all Plan Participants, as defined in Section 3.04 of the Plan, and their beneficiaries, heirs, personal representatives, executors and administrators, and upon the Company and all other
persons having or claiming to have any right or interest in or under the Plan. 
 Section 3.02. Rules and Regulations. The
Committee may, from time to time, establish rules, forms and procedures of general application for the administration of the Plan and each Incentive Program. The Committee shall determine the Incentive Targets and Incentive Awards, as defined in
Sections 5.01 and 5.02 of the Plan, designate the employees who are to participate in the Plan and determine the Group to which a Participant is assigned, as defined in Section 4.02 of the Plan. 
 Section 3.03. Quorum. A majority of the members of the Committee shall constitute a quorum for purposes of transacting business
relating to the Plan. The acts of a majority of the members present (in person, or by conference telephone) at any meeting of the Committee at which there is a quorum, or acts reduced to and approved unanimously in writing by all of the Committee
members, shall be valid acts of the Committee. 
 Section 3.04. Notice of Participation. Each employee shall receive
notice informing the employee of the Plan and specifying the group in which the employee is designated to participate. Designation of participation does not guarantee a participant (a “Participant”) that an Incentive Award will be
earned, or that such Participant will continue to participate in the same group for the current Plan Year (based upon the achievement of Group qualification metrics) or for future Plan Years. 
 Section 4. Eligibility, Groups and Incentive Programs. 
 Section 4.01. Eligibility. Any employee of the Company or any wholly-owned subsidiary of the Company shall be eligible to participate in the Plan upon written designation by the Committee as
provided in Section 3.04, excluding employees who are covered under a foreign government regulated bonus plan. 

 Section 4.02. Designation of Groups. Any employee who is designated by the Committee
as a Participant for a Plan Year shall be a member of one of the following Groups: 
  

			
	Group 1.	  	Participants in Group 1 shall be the Company’s executive officers, including Divisional Managers.
		
	Group 2.	  	Participants in Group 2 shall be the Engineering Project Managers, the Energy Project Managers, the Sales Managers and the Office Managers.
		
	Group 3.	  	Participants in Group 3 shall be any employee who is designated as a Participant in the Plan and who is not otherwise a member of Group 1 or 2.

 With respect to a Participant who moves to or from a Group during a Plan Year, such Participant shall be treated
as a member of each Group for the period of time in that Group during the Plan Year, and the actual achievement of any Performance Goals, as defined in Section 5.03 of the Plan, established with respect to participation in each Group shall be
used to calculate the pro-rated Incentive Award applicable for the period of time in each Group. 
 Section 4.03. Incentive
Programs. The following Incentive Programs shall be administered under the Plan: 
  

	 	•	 	 The Corporate Incentive Program; 

  

	 	•	 	 The Project Manager Incentive Program; 

  

	 	•	 	 The Sales Manager Incentive Program; 

  

	 	•	 	 The Office Manager Incentive Program; and 

  

	 	•	 	 The Discretionary Incentive Program. 

 All Group 1
Participants shall participate in the Corporate Incentive Program. All Group 2 Participants who are Engineering Project Managers or Energy Project Managers shall participate in the Project Manager Incentive Plan. All Group 2 Participants
who are Sales Managers shall participate in the Sales Manager Incentive Program. All Group 2 Participants who are Office Managers shall participate in the Office Manager Incentive Program. All Group 3 Participants shall participate in the
Discretionary Incentive Program. Notwithstanding the foregoing, the Committee may elect to offer the discretionary bonus program as provided in Section 5.06 hereof, in lieu of any or all of such Incentive Programs. 
 Section 4.04. Termination of Employment. 
 (a) Except as provided in Section 4.05 of the Plan, a Participant whose employment with the Company and all subsidiaries is terminated, either voluntarily, by mutual agreement or by involuntary termination for
cause following the end of a Plan Year but prior to the payment of an Incentive Award for such Plan Year will forfeit all right to such unpaid Incentive Awards, except as otherwise determined by the Committee or its delegate; provided further that a
Participant whose employment is terminated by the Company and all subsidiaries involuntarily other than for cause following the end of a Plan Year shall not forfeit all right to such unpaid Incentive Awards. 

 (b) Except as provided in Section 4.05 of the Plan, a Participant whose employment with the Company
and all subsidiaries is terminated voluntarily, by mutual agreement or involuntarily for cause at any time during a Plan Year shall forfeit all rights to any Incentive Awards for the Plan Year during which termination occurs. A Participant whose
employment is terminated by the Company and all subsidiaries involuntarily other than for cause on or before June 30 of any Plan Year shall forfeit all rights to any Incentive Awards for the Plan Year during which termination occurs; provided
further that a Participant whose employment is terminated by the Company and all subsidiaries involuntarily other than for cause after June 30 of a Plan Year shall be entitled to a pro-rated Incentive Award for the period of employment, subject
to the other terms and conditions of the Plan and the achievement of the applicable Performance Goals. 
 Section 4.05. Death,
Disability or Retirement. If, during a Plan Year, a Participant dies or becomes disabled, within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended, or retires after attainment of at least age 55 and with
at least 10 years of service with the Company and/or its subsidiaries, the Committee may, in its discretion or under such rules as it may prescribe, make a partial or full Incentive Award to the Participant for the Plan Year provided that the
applicable Performance Goals were achieved. 
 Section 4.06. New Participants. New employees of the Company or any
wholly-owned subsidiary of the Company hired after June 30 of a Plan Year and designated for participation will become a Group 3 Participant during such Plan Year. New employees hired on or before June 30 and designated for
participation may participate (on a pro-rated basis) in any Group during such Plan Year based upon achievement of Group qualification metrics. 
 Section 5. Incentive Targets, Incentive Awards and Performance Goals. 
 Section 5.01. Incentive
Targets. Each Participant under the Plan shall be assigned an incentive target (an “Incentive Target”) that shall be determined based on market competitive levels, and which may be expressed as a percentage of the
Participant’s base salary or a percentage of project profits, as related to the level of achievement attained. Incentive Targets shall be determined within 30 days after the commencement of each Plan Year and approved by the Committee. The
Incentive Targets for the current Plan Year are attached hereto as Attachment A. 
 Section 5.02. Incentive Awards.
No incentive award payment (“Incentive Award”) may exceed the Participant’s Incentive Target. Payment of any Incentive Award under the Plan shall be contingent upon (i) the achievement of the Main Company Performance Goals
(measured at target), as defined in Section 5.03(a) of the Plan, for the Plan Year, (ii) the achievement of the applicable Participant Performance Goals, as defined in Section 5.03 of the Plan, for the particular Incentive Program in
which the Participant is a member for the Plan Year, (iii) the Participant’s receiving an overall “Meets Expectations” rating on the values/work standards portion of his or her Company performance review form for the Plan Year
and (iv) the determination of the amount payable under Section 5.05 of the Plan. 
 Section 5.03. Performance
Goals. 
 (a) Company Performance Goals. Within 30 days after the commencement of the Plan Year, the Committee shall establish
specific performance goals for the Company (“Company Performance Goals”), which may be based upon one or more of the following objective performance measures and expressed in either, or a combination of, absolute values or rates of
change: earnings per share, earnings per share growth rates, return on total capital, stock price, revenues, costs, net income, operating income, income before taxes, operating margin, cash flow, market share, return on equity, return on assets and
total 

 
shareholder return. The Committee shall designate one or more of such Performance Goals as the main Company Performance Goals (the “Main Company
Performance Goals”) and the weighting among the various Performance Goals established. The Company Performance Goals are attached hereto as Attachment B. In order for any Incentive Awards to be paid to Participants in any Incentive
Program with respect to a Plan Year, the Main Company Performance Goals established by the Committee for such Plan Year (measured at target) must be achieved. 
 (b) Divisional Performance Goals. Within 30 days after the commencement of a Plan Year, the Committee shall establish specific performance goals for the Company’s divisions (“Divisional
Performance Goals”), which may be based upon one or more of the following objective performance measures and expressed in either, or a combination of, absolute values or rates of change: revenues, costs, net income, operating income, income
before taxes, operating margin, cash flow, market share, return on equity or return on assets. The Divisional Performance Goals are attached hereto as Attachment C. 
 (c) Sales Manager Performance Goals. Within 30 days after the commencement of a Plan Year, the Committee shall establish specific performance goals for the Company’s Sales Managers (“Sales
Manager Performance Goals”), which may be based upon one or more of the following objective performance measures and expressed in either, or a combination of, absolute values or rates of change: revenues. The Sales Manager Performance Goals
are attached hereto as Attachment D. 
 (d) Office Manager Performance Goals. Within 30 days after the commencement of a
Plan Year, the Committee shall establish specific performance goals for the Company’s Office Managers (“Office Manager Performance Goals”), which may be based upon one or more of the following objective performance measures and
expressed in either, or a combination of, absolute values or rates of change: revenues, expenses. The Office Manager Performance Goals are attached hereto as Attachment E. 
 (e) Participants’ Performance Goals. Within 90 days after the commencement of the Plan Year, the Committee shall establish performance goals
for the Participants in each of the Incentive Programs (“Participant Performance Goals”) as follows: 
  

	 	(i)	Corporate Incentive Program. The Participant Performance Goals for all Participants in the Corporate Incentive Program shall be the Company Performance Goals and, in the case
of Group 1 Participants who are Divisional Managers, Divisional Performance Goals, weighted per Attachment F. 

  

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

  

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

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

  

	 	(v)	Discretionary Incentive Program. The Participant Performance Goals for the Participants in the Discretionary Incentive Program shall be (x) the Main Company Performance
Goals and (y) other goals as established by the Committee in its discretion, weighted per Attachment F. 

 (d) When
the Participant Performance Goals are established, the Committee shall also specify the manner in which the level of achievement of such Participant Performance Goals shall be calculated. The Committee may determine that unusual items or certain
specified events or occurrences, including changes in accounting standards or tax laws, shall be excluded from the calculation, or may within their discretion adjust the performance goals. 
 Section 5.04. Discretion. The Committee shall have no discretion to increase any Incentive Target or Incentive Award payable that
would otherwise be due upon attainment of the Performance Goals, but the Committee may in its discretion reduce or eliminate such Incentive Target or Incentive Award. 
 Section 5.05. Determination of Incentive Award. The amount of a Participant’s Incentive Award for a Plan Year, if any, shall be determined by the Committee or its delegate in accordance with
the level of achievement of the applicable Participant Performance Goals, the Participant’s Incentive Target for such level of achievement, and the other terms of the Plan. Provided the conditions set forth in Section 5.02 are achieved for
any Plan Year, Incentive Awards payable shall be calculated as a percentage of each of the respective Incentive Targets, such percentage being equal to (i) 80% of the extent, if any, to which the Company’s income before taxes exceeds the
Company Performance Goal target for such item, as identified on Attachment B, divided by (ii) the cumulative total of all Incentive Targets, expressed in terms of dollar amounts, assigned under the Plan for such Plan Year. 
 Section 5.06. Determination of Other Bonuses. The Committee may grant, from time to time in its sole discretion, a bonus to any
Participant based on any criteria it determines. Such bonus, if specifically designated by the Committee as payable under this Plan, shall be subject to such provisions of the Plan as it shall specify. 
 Section 6. Payment to Participants. 
 Section 6.01. Timing of Payment. Any Incentive Award for a Plan Year shall be
paid to the Participant, or in the case of death to the Participant’s beneficiary, within 2 1/2 months following the end of
such Plan Year in which the right to payment is no longer subject to a substantial risk of forfeiture. Notwithstanding the foregoing, in the event such amount is conditioned upon a separation from service and not compensation the Participant could
receive without separating from service, then no such payments may be made to the Participant who is a “specified employee” under section 409A of the Internal Revenue Code of 1986, as amended, until the first day following the six-month
anniversary of the Participant’s termination. 
 Section 6.02. Beneficiary Designation. The deemed beneficiary
of a Participant for this Plan will be the beneficiary elected by the Participant under the Company’s Life Insurance Plan; provided that a Participant may elect a different beneficiary by filing a 

 
completed designation of beneficiary form with the Committee or its delegate in the form prescribed. Such designation may be made, revoked or changed by the
Participant at any time before death but such designation of beneficiary will not be effective and supersede all prior designations until it is received and acknowledged by the Committee or its delegate. If the Committee has any doubt as to the
proper beneficiary to receive payments hereunder, the Committee shall have the right to withhold such payments until the matter is finally adjudicated. However, any payment made in good faith shall fully discharge the Committee, the Company, its
subsidiaries and the Board from all further obligations with respect to that payment. 
 Section 6.03. Tax Withholding.
All Incentive Awards and bonuses shall be subject to Federal income, FICA, and other tax withholding as required by applicable law. 
 Section 7. Miscellaneous. 
 Section 7.01. No Recourse. If the actual level of achievement of
any Performance Goal taken into account for determination of an Incentive Award is found to be incorrect by the Company’s independent certified public accountants and was more than the correct amount, there shall be no recourse by the Company
against any person or estate. However, the Company shall have the right to correct such error by reducing any subsequent payments yet to be made under the Plan for current and future Plan Years by the entire excess amount of any Incentive Awards
paid over the correct amounts. 
 Section 7.02. Merger or Consolidation. All obligations for amounts earned but not yet
paid under the Plan shall survive any merger, consolidation or sale of all or substantially all of the Company’s or a subsidiary’s assets to any entity, and be the liability of the successor to the merger or consolidation or the purchaser
of assets, unless otherwise agreed to by the parties thereto. 
 Section 7.03. Gender and Number. The masculine pronoun
whenever used in the Plan shall include the feminine and vice versa. The singular shall include the plural and the plural shall include the singular whenever used herein unless the context requires otherwise. 
 Section 7.04. Construction. The provisions of the Plan shall be construed, administered and governed by the laws of the Commonwealth
of Pennsylvania, including its statute of limitations provisions, but without reference to conflicts of law principles. Titles of Sections of the Plan are for convenience of reference only and are not to be taken into account when construing and
interpreting the provisions of the Plan. 
 Section 7.05. Non-alienation. Except as may be required by law, neither the
Participant nor any beneficiary shall have the right to, directly or indirectly, alienate, assign, transfer, pledge, anticipate or encumber (except by reason of death) any amount that is or may be payable hereunder, including in respect of any
liability of a Participant or beneficiary for alimony or other payments for the support of a spouse, former spouse, child or other dependent, prior to actually being received by the Participant or beneficiary hereunder, nor shall the
Participant’s or beneficiary’s rights to benefit payments under the Plan be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or
beneficiary or to the debts, contracts, liabilities, engagements, or torts of any Participant or beneficiary, or transfer by operation of law in the event of bankruptcy or insolvency of the Participant or any beneficiary, or any legal process.

 Section 7.06. No Employment Rights. Neither the adoption of the Plan nor any provision of the Plan shall be construed
as a contract of employment between the Company or a subsidiary and any employee or Participant, or as a guarantee or right of any employee or Participant to future or continued employment with the Company or a subsidiary, or as a limitation on the
right of the 

 
Company or a subsidiary to discharge any of its employees with or without cause. Specifically, designation as a Participant does not create any rights, and
no rights are created under the Plan, with respect to continued or future employment or conditions of employment. 
 Section 7.07. Minor or Incompetent. If the Committee determines that any Participant or beneficiary entitled to a payment under the Plan is a minor or incompetent by reason of physical or mental disability, it may, in its
sole discretion, cause any payment thereafter becoming due to such person to be made to any other person for his benefit, without responsibility to follow application of amounts so paid. Payments made pursuant to this provision shall completely
discharge the Company, its subsidiaries, the Plan, the Committee and the Board. 
 Section 7.08. Illegal or Invalid
Provision. In case any provision of the Plan shall be held illegal or invalid for any reason, such illegal or invalid provision shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced without regard to
such. 
 Section 7.09. Amendment or Termination of this Plan. The Board shall have the right to amend or terminate the
Plan at any time, provided that any amendment or termination shall not affect any Incentive Awards earned but unpaid. No employee or Participant shall have any vested right to payment of any Incentive Award hereunder prior to its payment. The
Company shall notify affected employees in writing of any amendment or Plan termination. 
 Section 7.10. Unsecured
Creditor. The Plan constitutes a mere promise by the Company or a subsidiary to make benefit payments in the future. The Company’s and the subsidiaries’ obligations under the Plan shall be unfunded and unsecured promises to pay. The
Company and the subsidiaries shall not be obligated under any circumstance to fund their respective financial obligations under the Plan. Any of them may, in its discretion, set aside funds in a trust or other vehicle, subject to the claims of its
creditors, in order to assist it in meeting its obligations under the Plan, if such arrangement will not cause the Plan to be considered a funded deferred compensation plan. To the extent that any Participant or beneficiary or other person acquires
a right to receive payments under the Plan, such right shall be no greater than the right, and each Participant and beneficiary shall at all times have the status, of a general unsecured creditor of the Company or a subsidiary.

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