Document:

EXHIBIT 10.15

 

[Execution
Copy]

 

WARRANT
CASH SUBSTITUTION AGREEMENT

 

This WARRANT CASH SUBSTITUTION AGREEMENT
(this “Agreement”) is made and
entered into as of January 10, 2006 by and among Wells Fargo Bank,
N.A., f/k/a Wells Fargo Bank Minnesota, National Association, as Trustee and
Disbursing Agent (the “Trustee and Disbursing Agent”) under the Trust
and Disbursing Agreement dated as of January 25, 2002 (the “Trust and
Disbursing Agreement”), entered into pursuant to the Second Amended Joint
Plan of Reorganization of Washington Group International, Inc., et al., dated July 24, 2001, as modified by the First
Modification, the Second Modification and the Third Modification (as so
modified, the “Plan”), confirmed in the bankruptcy cases (the “Reorganization”)
of Washington Group International, Inc. (the “Company”) and certain
of its affiliates, in the United States Bankruptcy Court for the District of
Nevada (the “Bankruptcy Court”), Chapter 11 Case No. BK-N-01-31627,
the Plan Committee established by the Plan (the “Plan Committee”), the
Company, a corporation organized under the laws of Delaware, and Wells Fargo
Bank, N.A., f/k/a Wells Fargo Bank Minnesota, National Association, as Warrant
Agent (the “Warrant Agent”) under the Warrant Agreement dated as of January 25,
2002 (the “Warrant Agreement”) between the Company and the Warrant
Agent.  Capitalized terms used herein but
not defined shall have the meaning given to them in the Trust and Disbursing
Agreement or the Plan.

 

RECITALS

 

A.  WHEREAS,
the Plan provides for distributions of cash, New Common Shares, Class 7
Warrants and the proceeds, if any, of the Transferred Avoidance Actions
(collectively, the ”Plan Consideration”) to holders of Allowed Class 7
Claims;

 

B.  WHEREAS,
the Trustee and Disbursing Agent holds the Class 7 Warrants not yet
distributed in an account for the benefit of the holders of Allowed Class 7
Claims (the ”Allowed Class 7 Claimants”) in connection with
the Reorganization in accordance with the terms of the Trust and Disbursing
Agreement;

 

C.  WHEREAS,
the Plan provides that the Plan Committee will take such actions as are set
forth in the Plan, the Confirmation Order or the Plan Committee Document or as
may be approved or ordered by the Bankruptcy Court;

 

D.  WHEREAS,
the Class 7 Warrants by their terms expire at 5:00 p.m., New York
City time, on January 25, 2006; and

 

E.  WHEREAS,
upon noticed joint motion of the Plan Committee and the Company and following
hearings and oral arguments held on December 8 and December 23, 2005,
the Bankruptcy Court entered an Order on January 10, 2006 (the “Enabling
Order”) approving the payment of certain fees and expenses by the Company
and the provision of $27,500,000 in cash

 

 

by the Company (the “Consideration”)
in substitution, of the remaining Class 7 Warrants held by the Trustee and
Disbursing Agent, consisting of 634,974 Tranche A Warrants, 725,684 Tranche B
Warrants and 392,261 Tranche C Warrants (the “Remaining Warrants”) which
would otherwise expire on January 25, 2006 (the “Warrant Transaction”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
mutual promises set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Trustee and
Disbursing Agent, the Warrant Agent, the Plan Committee and the Company agree
as follows:

 

1.                                      Recitals.  The forgoing recitals are incorporated herein
by reference, and by this reference made a part hereof.

 

2.                                      Purchase
and Substitution of Warrants.

 

(a)                                  Subject to the
conditions set forth in the Enabling Order, the Trustee and Disbursing Agent,
the Company and the Plan Committee hereby agree that the Trust and Disbursing
Agreement is hereby amended such that the Plan Committee hereby authorizes and
directs the Trustee and Disbursing Agent on behalf of the Allowed Class 7
Claimants to enter into all necessary agreements and to perform all necessary
actions as the Trustee and Disbursing Agent deems to be necessary and
appropriate to: (i) assign, transfer and deliver to the Company the
Remaining Warrants free from any restrictions, liens, encumbrances, claims
(including any “adverse claim” as such term is defined in the Uniform
Commercial Code), options, calls, pledges, trusts and other commitments,
agreements or arrangements; (ii) to receive $27,500,000 in cash from the
Company (the “Cash Proceeds”); (iii) to deposit the Cash Proceeds
into the WGI Class 7 Disbursement Account established under the Trust and
Disbursing Agreement as a part of the Disputed Class 7 Claims Reserve and
to invest such cash as provided in Section 3 of the Trust and Disbursing
Agreement; (iv) to pay fees and expenses as contemplated by the Enabling
Order and Section 3 of this Agreement; (v) to make distributions of
the net Cash Proceeds and any Cash Investment Yield earned thereon to Allowed Class 7
Claimants in accordance with Section 5(a) and the other relevant
provisions of the Trust and Disbursing Agreement; and (vi) to perform all
other required actions to effectuate the intent of this Agreement and the
Enabling Order.

 

(b)                                 Subject to the
conditions set forth in the Enabling Order, the Trust and Disbursing Agreement
is hereby further amended to provide that each holder of an Allowed Class 7
Claim will be entitled to receive, in lieu of receipt of future distributions
of Class 7 Warrants, a Pro Rata share of the net Cash Proceeds derived
from the Warrant Transaction and any Cash Investment Yield earned thereon after
payment of any fees, costs and expenses in accordance with this Agreement.  Class 7 Claimants will not be entitled to
any further distributions of Class 7 Warrants.  The Trust and Disbursing Agent will
administer the distribution of such funds in accordance with the Trust and
Disbursing Agreement, as amended by this Agreement.

 

 

(c)                                  In connection with
the cash substitution for the Remaining Warrants, the Plan Committee represents
and warrants to the Company, all of which representations and warranties shall
survive the Closing of the Warrant Transaction, that it has requested,
received, reviewed and considered all information it deems relevant in making
an informed decision to sell and substitute the Remaining Warrants.  The Plan Committee, together with its
financial advisor, has such business and financial experience as is required to
give it the capacity to utilize the information received, to evaluate the
merits and risks involved in selling and substituting the Class 7
Warrants.

 

(d)                                 Consistent with Section 11
of the Trust and Disbursing Agreement and its characterization of the Disputed Class 7
Claims Reserve as a grantor trust with the Company as grantor, the parties
shall treat the actions described in Sections 2(a)(i), (ii) and (iii) as
disregarded events for federal and applicable state income tax purposes.  The Company shall instruct the Trustee and
Disbursing Agent that no taxes shall be payable and no amounts shall be
remitted to the Company with respect to the substitution.

 

3.                                      Payment
of Fees and Expenses

 

(a)                                  For purposes of Section 8
of the Plan Committee Document, the Plan Committee and the Company agree that
the Plan Committee, its Members and any Professionals (as defined in the Plan
Committee Document) retained by the Plan Committee shall be reimbursed by the
Company for fees and expenses incurred in connection with or arising from the
Plan Committee’s efforts to capture the value of the Remaining Warrants
incurred prior to November 9, 2005 in accordance with the procedures for
payment of such fees and expenses as provided in the Plan Committee Document.

 

(b)                                 Fees and expenses of
the Plan Committee, its Members and any Professionals retained by the Plan
Committee incurred in connection with or arising from the Plan Committee’s
efforts to capture the value of the Remaining Warrants incurred on and after November 9,
2005 shall be paid out of the Cash Proceeds deposited into the WGI Class 7
Disbursement Account.  The amounts due to
the Plan Committee, its Members and any Professionals retained by the Plan
Committee shall be paid within thirty (30) days after the end of the month in
which the relevant expense request for reimbursement was presented to the Trust
and Disbursing Agent, provided, however,
that such monthly requests for reimbursement shall be subject to review and
approval by the Company, which approval shall not be unreasonably withheld, to
the extent that doing so does not compromise the Plan Committee attorney-client
privilege, provided, further, that in the event the
Company disputes any portions of such monthly requests for reimbursements, the
Company shall notify the counsel to the Plan Committee and the Trust and
Disbursing Agent shall withhold payment of the disputed amounts until the
Bankruptcy Court, upon application by the Plan Committee, reviews and approves
such disputed requests for reimbursement in whole or part.

 

(c)                                  If and to the extent
that fees and expenses of the Ad Hoc Committee of Washington Group
International Class 7 Claim Holders are allowed and approved by the
Bankruptcy Court, such fees and expenses shall be paid out of the Cash Proceeds
deposited into

 

 

the WGI Class 7 Disbursement
Account in accordance with applicable final orders of the Bankruptcy Court.

 

(d)                                 Fees and expenses of
the Trustee and Disbursing Agent in connection with or arising from the Warrant
Transaction or any other action under the Trust and Disbursing Agreement shall
continue to be paid by the Company in accordance with the Trust and Disbursing
Agreement.

 

4.                                      Conditions.  The obligation of the Company to pay the fees
and expenses of the Plan Committee in accordance with Section 3(a) as
provided hereunder and to deliver cash for the Remaining Warrants is subject
only to the following conditions, which may be waived in writing by the
Company, in its sole and unfettered discretion, at any time:

 

(a)                                  The entry of an order
or judgment of the Bankruptcy Court or other court of competent jurisdiction
approving the Warrant Transaction which has not been stayed, reversed or
amended and as to which the time to appeal or seek review or rehearing has
expired and no petition for review or rehearing or appeal was filed or, if
filed, no longer remains pending.

 

(b)                                 The representations
and warranties of the Plan Committee contained in Section 2(c) shall
be true and correct in all material respects on and as of the date of this
Agreement and the date of the Closing.

 

5.                                      Indemnification.
 The Company acknowledges that it
will continue to indemnify and hold harmless the Trustee and Disbursing Agent
in accordance with the terms and conditions of Section 14 of the Trust and
Disbursing Agreement.  Furthermore, the
Company will indemnify and hold harmless the Trustee and Disbursing Agent in
accordance with the terms and conditions of Section 14 of the Trust and
Disbursing Agreement from and against any and all costs, losses, liabilities,
expenses (including reasonable counsel fees and disbursements) and claims
imposed upon or asserted against the Trustee and Disbursing Agent on account of
any action taken or omitted to be taken by them in connection with the
performance of its duties under this Agreement and the documents related hereto.

 

6.                                      The
Trust and Disbursing Agreement.  The
Trustee and Disbursing Agent hereby confirms that effective December 23,
2005, it withdrew its Notice of Termination, dated August 12, 2005, as
modified, and agrees to continue to be bound by the terms of the Trust and
Disbursing Agreement as amended by this Agreement. The first sentence of Section 15
of the Trust and Disbursing Agreement hereby is amended and restated to read as
follows: “This Agreement shall remain in full force and effect until the earlier
of: (a) 60 days after Notice of Termination has been given by the Company
to Wells Fargo or by Wells Fargo to the Company, or (b) the later of (i) the
disbursement of all of the Plan Consideration, or (ii) the completion of
all tax reporting requirements for distributions made under the Plan.”  The Parties hereby ratify and confirm the
terms and conditions of the Trust and Disbursing Agreement, as amended hereby,
in each and every respect.

 

7.                                      Closing.  If the condition specified in Section 4(a) shall
have been satisfied and provided that this Agreement has not been terminated
pursuant to Section 8, the delivery of cash

 

 

Consideration for the Remaining
Warrants will take place on January 23, 2006 or at such other time as the
Parties shall agree (the “Closing”). 
At the Closing, the Remaining Warrants shall be cancelled by the Warrant
Agent in accordance with Section 16 of the Warrant Agreement against
payment by the Company by wire transfer of $27,500,000 to an account as
specified by the Trustee and Disbursing Agent. 
The Warrant Agent shall provide written notice of the cancellation of
the Remaining Warrants to the Company and the receipt of funds to the Plan
Committee.

 

8.                                      Termination
of Agreement.  If the condition
specified in Section 4(a) shall not have occurred by 5:00 p.m.
Reno, Nevada time on January 20, 2006, this Agreement shall terminate on
the later to occur of 5:00 p.m. Reno, Nevada time on January 21, 2006
or such later date as may be specified by the Company by written notice to the
other parties to this Agreement. 
Sections 2(c) (relating to representations and warranties of the
Plan Committee), 3(d) (relating to payment of fees and expenses of the
Trust and Disbursing Agent), 5 (relating to indemnification of the Trust and
Disbursing Agent), 6 (relating to the Trust and Disbursing Agreement), 9
(relating to Notices) and 10 (relating to governing law) shall survive
termination of this Agreement.

 

9.                                      Notices.  The executed copy of this Agreement and any
written notices should be provided to:

 

 

If to the Trustee and Disbursing Agent, to:

 

Wells Fargo Bank, N.A.

Customized Fiduciary Services

Sixth and Marquette; N9303-120

Minneapolis, Minnesota 55479

Attn: Nicholas D. Tally

 

with a copy to:

 

Wendy Walker

Morgan, Lewis & Bockius LLP

101 Park Avenue

New York, New York 10178-0060

 

If to the Warrant Agent, to:

 

Wells Fargo Bank, N.A.

Customized Fiduciary Services

Sixth and Marquette; N9303-120

Minneapolis, Minnesota 55479

Attn: Nicholas D. Tally

 

with a copy to:

 

Wendy Walker

Morgan, Lewis & Bockius LLP

101 Park Avenue

New York, New York 10178-0060

 

If to the Plan Committee, to:

 

Todd J. Dressel

Winston & Strawn LLP

101 California Street, Suite 3900

San Francisco, CA 94111

 

If to the Company, to:

 

Washington Group International, Inc.

720 Park Boulevard

Boise, Idaho 83712

Attn: Earl Ward, Treasurer, 

and Richard D. Parry, General Counsel

 

 

with a copy to:

 

Robert Dean Avery

Jones Day

77 West Wacker Drive

Chicago, Illinois 60601

 

10.                               Entire
Agreement.  This Agreement
constitutes the entire agreement of the parties, and fully supersedes any and
all prior and contemporaneous agreements or understandings between the parties
relating to the subject matter hereof. 
This Agreement may be amended or modified only by an agreement in
writing and signed by all of the parties hereto.  Each party has had a full and complete
opportunity to review this Agreement. 
Accordingly, the parties agree that the common law principles of
construing ambiguities against the drafter shall have no application
hereto.  This Agreement shall be
construed fairly and not in favor of or against one party as to the drafter
hereof.

 

11.                               Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York, without regard to conflict of laws principles.

 

12.                               Counterparts.  This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original but all of which
together will constitute one and the same agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the day and year first written above.

 

	
   

  	
  WELLS FARGO BANK, N.A., as Trustee and
  Disbursing

  Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Nicholas D. Tally

  	
   

  
	
   

  	
   

  	
       Nicholas D.
  Tally, Vice President

  	
   

  
	
   

  	
  Date:

  	
       1/23/06

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A., as Warrant Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Nicholas D. Tally

  	
   

  
	
   

  	
   

  	
      Nicholas D. Tally,
  Vice President

  	
   

  
	
   

  	
  Date:

  	
      1/23/06

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PLAN COMMITTEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Sharon Manewitz

  	
   

  
	
   

  	
   

  	
  Sharon
  Manewitz, as Chairperson

  	
   

  
	
   

  	
   

  	
  of the Plan
  Committee

  	
   

  
	
   

  	
   

  	
  Managing
  Director

  	
   

  
	
   

  	
   

  	
  Teachers
  Insurance and Annuity

  	
   

  
	
   

  	
   

  	
  Association
  of America

  	
   

  
	
   

  	
  Date:

  	
  Jan. 18,
  2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WASHINGTON GROUP INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Earl Ward

  	
   

  
	
   

  	
  Earl Ward, Vice President – Investor

  	
   

  
	
   

  	
  Relations and Treasurer

  	
   

  
	
   

  	
  Date:

  	
     January 18, 2006EXHIBIT 10.17

 

WASHINGTON
GROUP INTERNATIONAL, INC.

EQUITY AND
PERFORMANCE INCENTIVE PLAN

 

PERFORMANCE UNIT PARTICIPANT
AGREEMENT

 

This Agreement (the “Agreement”), dated as of                              ,
is made by and between Washington Group International, Inc., a Delaware
corporation hereinafter referred to as “Corporation”, and                                                     ,
an employee of the Corporation or Subsidiary of the Corporation, hereinafter
referred to as “Participant.”

 

WHEREAS, the Corporation wishes to afford the
Participant an opportunity to earn incentive compensation under the Corporation’s
Long-Term Incentive Program (“LTIP”) by achieving objectives that are in the
long-term interest of the Corporation and its shareholders; and

 

WHEREAS, the Board may authorize the granting
of Performance Units under the Plan (as hereinafter defined), the terms of
which are hereby incorporated herein by reference and made a part hereof; and

 

WHEREAS, the Board has authorized the grant
of Performance Units to the Participant by a resolution duly adopted on                                                 ,
and incorporated herein by reference;

 

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

 

ARTICLE I

 

DEFINITIONS

 

Wherever the following terms are used in this
Agreement with initial capital letters, they shall have the meanings specified
in the Plan unless the context clearly indicates otherwise.

 

Section 1.1
– Board

Section 1.2 – Change in
Control

Section 1.3 – Code

Section 1.4 - Common
Shares

Section 1.5 -
Corporation

Section 1.6
– Management Objectives

Section 1.7
– Subsidiary

Section 1.8
– Years of Service

 

Wherever the following terms are used in this
Agreement with initial capital letters, they shall have the meanings specified
below unless the context clearly indicates otherwise.  The masculine pronoun shall include the
feminine and neuter, and the singular the plural, where the context so
indicates.

 

 

Section 1.9 - Beneficiary

 

“Beneficiary” means the person or persons
properly designated by the Participant to receive the Participant’s benefits
under this Agreement in the event of the Participant’s death, or if the
Participant has not designated such person or persons, or such person or
persons shall all have pre-deceased the Participant,
the executor, administrator, or personal representative of the Participant’s
estate.  Designation, revocation, and
redesignation of beneficiaries must be made in writing in accordance with rules established
by the Corporation and shall be effective upon delivery to the Corporation.

 

Section 1.10 - Compensation Committee

 

“Compensation Committee” means the compensation
committee of the Board, as constituted from time to time.

 

Section 1.11 – Par Value

 

“Par
Value” means the value assigned to each Performance Unit at the time of grant
and represents the amount that the Corporation will pay for each Performance
Unit if the Corporation achieves 100% of its predetermined Management
Objectives during the applicable Performance Period.

 

Section 1.12 – Performance Period

 

“Performance
Period” means the three-fiscal-year period of the Corporation commencing                                   ,
and ending                                        ;
provided, however, that the Performance Period may be shortened in the event of
a Change in Control as set forth in Section 4.4.

 

Section 1.13 – Performance Unit

 

“Performance Unit” means a bookkeeping entry
that records a right to payment, the value of which is contingent upon
performance as measured against pre-determined Management Objectives over the
Performance Period.

 

Section 1.14 - Plan

 

“Plan” means the Washington Group International, Inc.
Equity and Performance Incentive Plan, as the same may be amended or restated
from time to time.

 

ARTICLE II

AWARD OF
PERFORMANCE UNITS

 

Section 2.1 – Grant of Award

 

In consideration of the Participant’s
execution of this Agreement and for other good and valuable consideration, on
the date hereof, the Corporation irrevocably awards to the Participant          
Performance Units with a Par Value of $10.00 per unit, upon the terms and
subject to the conditions set forth in the Plan and in this Agreement.

 

Section 2.2 – Performance Measures

 

The Management Objectives that will be used
to determine the actual value of the Performance Units awarded under this
Agreement will be the Corporation’s average earnings per share (“EPS”) of

 

 

Common Shares during the
Performance Period and the Corporation’s average return on invested capital (“ROIC”)
during the Performance Period.  A
separate target goal for each Management Objective (EPS and ROIC) has been
established for each year of the Performance Period.  These target goals are set forth on Exhibit A
to this Agreement.  The average EPS and
the average ROIC will be determined by calculating the percentage of the target
goal achieved each year (i.e., dividing each year’s actual results for EPS and
ROIC by the respective target goal for that year) and then calculating the
average of the percentages for all years in the Performance Period (i.e.,
adding the percentages and dividing by the number of years in the Performance
Period).

 

Example:  If Corporate ROIC equaled 100% of the
target goal in [first year], 120% of the target goal in [second year] and 110%
of the target goal in [third year], then the three-year average ROIC would
equal 110%.

 

EPS for any year will be calculated by
dividing net income (as defined for the Short-Term Incentive Plan) by the
weighted average number of Common Shares outstanding during the year, excluding
shares issued upon the exercise of warrants issued under the Company’s plan of
reorganization.

 

ROIC for any year will be calculated by
dividing net income (as defined for the Short-Term Incentive Plan) + tax
effected interest expense by the average equity and debt (excluding cash in
excess of $50 million).

 

All amounts will be determined by the
Corporation’s finance department and certified by the Compensation Committee.

 

Section 2.3 – Performance Unit Values

 

At the end of the Performance Period, the
Compensation Committee shall value each Performance Unit using the Performance Unit Value Matrix set forth in Exhibit A
and the Corporation’s actual results during the Performance Period.  Notwithstanding any other provision of this
Agreement or the Plan, no Performance Unit awarded under this Agreement may
have a value greater than $20.00.  For
levels of actual performance between any two amounts set forth on the
Performance Unit Value Matrix, the value of the Performance Units will be
calculated by prorating between the values assigned to the specified
performance levels, giving equal weighting to each Management Objective.

 

ARTICLE III

 

Section 3.1 – Payment in Ordinary Course

 

If the Participant remains actively employed
with the Corporation or a Subsidiary through the date of payment, the value of
the Performance Units shall be paid to the Participant as soon as
administratively practical after the February Board meeting following the
end of the Performance Period.  Payment
shall be in cash except that the Compensation Committee may determine in its
discretion to permit payment in the form of Common Shares or Deferred Shares or
an election to receive Deferred Shares of the Corporation, subject to
availability under the Plan, to the extent necessary for the Participant to
satisfy any applicable stock ownership guidelines.

 

Section 3.2 – Payment in the Event or
Retirement, Death or Disability

 

Notwithstanding the foregoing, if, solely
because of the Participant’s death, permanent and total disability (within the
meaning of Section 22(c)(3) of the Code) or retirement at or after
the attainment of (a) age 65, (b) age 55 with at least 10 Years of
Service, or (c) 30 Years of Service, the Participant’s

 

 

employment with the Corporation
or a Subsidiary terminates before payment is made but at least 180 days after
the Performance Units were granted, the Participant (or the Beneficiary in the
case of the Participant’s death) shall be entitled to receive a prorated
portion of the value of the Performance Units as soon as administratively
practical after the February Board Meeting following the end of the
Performance Period.  The amount that the
Participant (or Beneficiary) shall be entitled to receive shall be determined
by multiplying the value of the Performance Units by a fraction, the numerator
of which is the number of days during the Performance Period that the
Participant was employed by the Corporation or a Subsidiary and the denominator
of which is the total number of days in the Performance Period.

 

Section 3.3 – Taxes

 

Any taxes required by federal, state or local
laws due on payment of the value of Performance Units will be withheld by the
Corporation.  The Participant hereby
authorizes the necessary withholding by the Corporation to satisfy such tax
withholding obligations prior to payment.

 

ARTICLE IV

OTHER PROVISIONS

 

Section 4.1 – No Guarantee of Employment

 

Nothing in this Agreement or in the Plan
shall confer upon the Participant any right to continue in the employ of the
Corporation or any Subsidiary, or shall interfere with or restrict in any way
the rights of the Corporation or its Subsidiaries, which are expressly
reserved, to discharge the Participant at any time for any reason whatsoever,
with or without cause.

 

Section 4.2 – Administration

 

The Board shall have the power to interpret
the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and
determinations made by the Board in good faith shall be final and binding upon
the Participant, the Corporation and all other interested persons.  No member of the Board shall be personally
liable for any action, determination or interpretation made in good faith with
respect to the Plan or a Performance Unit.

 

Section 4.3 – Performance Units Not
Transferable

 

Performance
Units under the Plan may not be sold, pledged,
assigned or transferred in any manner other than by will or the laws of descent
and distribution; provided, however, the Participant may designate a
Beneficiary to receive payment after his death.  No Performance Unit or any interest or right
therein or part thereof shall be liable for the debts, contracts or engagements
of the Participant or his successors in interest or shall be subject to
disposition by transfer, alienation, anticipation, pledge, encumbrance,
assignment or any other means whether such disposition be voluntary or
involuntary or by operation of law by judgment, levy, attachment, garnishment
or any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect;
provided, however, that this Section 4.3 shall not prevent transfer by
will or by the applicable laws of descent and distribution.  During the Participant’s lifetime, the value
of Performance Units shall be paid only to the Participant or his guardian or
legal representative.

 

 

Section 4.4 – Change in Control

 

The Performance Period shall end immediately
upon the occurrence of a Change in Control and the value of each Performance
Unit shall be equal to the greater of (a) the Par Value set forth in this
Agreement and (b) the value determined under Section 2.3 of this
Agreement based upon the Corporation’s actual results for the shortened
Performance Period.  The value of the
Performance Units shall become payable immediately upon the Change in Control.

 

Section 4.5 – Amendment

 

This Agreement is subject to the Plan. The
Board may amend the Plan and the Compensation Committee may amend this
Agreement at any time and in any way, except that any amendment of the Plan or
this Agreement that would impair the Participant’s rights under this Agreement
may not be made without the Participant’s written consent.

 

Section 4.6 – Notices

 

Any
notice to be given under the terms of this Agreement to the Corporation shall
be addressed to the Corporation in care of its Secretary, and any notice to be
given to the Participant shall be addressed to him or her at the address given
beneath his or her signature hereto.  By
a notice given pursuant to this Section 4.6, either party may hereafter
designate a different address for notices to be given to him or her.  Any notice which is required to be given to
the Participant shall, if the Participant is then deceased, be given to the
Participant’s personal representative if such representative has previously
informed the Corporation of his status and address by written notice under this
Section 4.6.  Any notice shall be
deemed duly given when enclosed in a properly sealed envelope or wrapper
addressed as aforesaid, deposited (with postage prepaid) in a post office or
branch post office regularly maintained by the United States Postal Service.

 

Section 4.7 – Titles

 

Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of this
Agreement.

 

Section 4.8 – Governing Law

 

This Agreement shall be administered,
interpreted and enforced under the internal substantive laws of the State of
Delaware.

 

 

IN WITNESS WHEREOF, the Corporation, by its duly
authorized officer, and the Participant have executed this Agreement.

 

 

	
   

  	
  WASHINGTON
  GROUP INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Larry L. Myers

  
	
   

  	
   

  	
  Senior Vice President – Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Participant’s
  Social Security Number

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Participant’s
  Address

  	
   

  	
   

  	
   

  
						

 

Spousal
Consent

 

The undersigned has read and is familiar with the preceding Agreement
and the Plan and hereby consents and agrees to be bound by all the terms of the
Agreement and the Plan.  Without limiting
the foregoing, the undersigned specifically agrees that the Corporation may
rely on any authorization, instruction or election made under the Agreement by
the Participant alone and that all of his or her right, title or interest, if
any, in the Performance Units, whether arising by operation of community property
law, by property settlement or otherwise, shall be subject to all such terms.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}]]