Document:

Exhibit 10.13(e)

 

FOURTH AMENDMENT

TO THE

ATLANTIC SOUTHEAST AIRLINES, INC.

INVESTMENT SAVINGS PLAN

 

This Fourth Amendment to the Atlantic Southeast
Airlines, Inc. Investment Savings Plan, which plan was amended and
restated in its entirety effective January 1, 1997 and subsequently
amended by the First, Second, and Third Amendments, is made and entered on this
30th day of December, 2005, by Atlantic Southeast Airlines, Inc., a corporation
duly organized and existing under the laws of the State of Georgia (the “Corporation”).

 

INTRODUCTION

 

The Corporation
maintains the Atlantic Southeast Airlines, Inc. Investment Savings Plan (the
“Plan”).  The Corporation now desires to
amend the Plan to reflect, in good faith, provisions related to the lowering of
the automatic distribution maximum to $1,000 to avoid the need for automatic
rollovers.

 

AMENDMENT

 

NOW,
THEREFORE, the Corporation hereby amends the Plan as follows:

 

1.             Effective
as of March 28, 2005, Section 11.1 of the Plan shall be amended to
delete the phrase “$5,000” where it appears and to substitute “$1,000” in its
stead.

 

2.             Except
as specifically amended hereby, the Plan shall remain in full force and effect
as prior to this Amendment.

 

IN
WITNESS WHEREOF, the Corporation has caused this Fourth Amendment to the Plan
to be executed by its duly authorized officer on the day and year first above
written.

 

	
   

  	
  ATLANTIC
  SOUTHEAST AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President—PeopleExhibit 10.32

 

	
  

  	
   

  	
  AAI Corporation

  
	
   

  	
  124 Industry Lane

  
	
   

  	
  Hunt Valley, Maryland
  21030-0126

  
	
   

  	
  410-628-6600

  
	
   

  	
  Fax: 410-628-3644

  
	
   

  	
  aaicorp.com

  

 

March
14, 2005

 

Mr.
Stuart Gray

5221
Springlake Way

Baltimore,
MD 21212

 

Dear
Stuart:

 

AAI
is pleased to extend you an offer to join the Company as Treasurer, United
Industrial Corporation, at a bi-weekly salary of $5,769.23 (annualized
$150,000). In addition to your salary, you will be provided with a sign-on
bonus of $10,000.00 which you will receive in your first full paycheck. If you
voluntarily terminate employment within twelve months of the date of hire, you
will be required to reimburse the bonus payment, less applicable mandatory
taxes. You will accrue vacation as a rate of 13.4 hours per month for an annual
total of four weeks.

 

You
will be recommended to become a participant in the UIC Management Incentive
Plan (MIP) for the year 2005 for a target incentive award of twenty percent
(20%) of base salary, with a maximum award equal to two hundred (200%) of target.
Your share of the 2005 MIP will be awarded in 2006 if you are in active
full-time status at the time of payout. Participation in the MIP program and
the amount of incentive compensation has to be approved by the UIC Compensation
Committee.

 

In
addition to the foregoing, you will be awarded 5,000 options to purchase UIC
stock, with an exercise price equal to the closing price of UIC shares on the
day you commence employment with the Company. One-third (1/3) of these options
vest on the 1st three anniversaries of your start date. This grant
shall be made as of the day you commence employment and shall be subject to and
governed by the terms of the United Industrial Corporation 2004 Stock Option
Plan, the stock option agreement and all applicable Board resolutions.

 

In
the event of Change of Control within the first two years of employment and/or
you are not offered a position at your equivalent level or you are asked to
move more than 50 miles from Hunt Valley, either of those conditions will
invoke severance of 26 weeks. In the event of a Change of Control after two
years of employment, you will be eligible for severance according to AAI
policy.

 

This
offer is contingent upon your successful completion of our post-offer physical
examination and meeting our security requirements.

 

We
look forward to your positive reply and your immediate contributions to a
mutually successful future.

 

	
  Sincerely,

  
	
   

  
	
   

  
	
  /s/
  Patrick H. Shockley

  	
   

  
	
  Patrick
  H. Shockley

  	
  ISO 9001:2000/AS9100

  
	
  Director,
  Human Resources

  	
  SEI-CMM Level 4Exhibit 10.33

 

United Industrial Corporation

 

Management Incentive Plan

 

January 2005

 

 

 

UIC
MANAGEMENT INCENTIVE PLAN

 

TABLE OF CONTENTS

 

	
  Definitions

  	
  3

  
	
   

  	
   

  
	
  Plan
  Amendment and Termination

  	
  3

  
	
   

  	
   

  
	
  Effective
  Date of the Plan

  	
  3

  
	
   

  	
   

  
	
  MANAGEMENT INCENTIVE PLAN (MIP)

  	
  4

  
	
   

  	
   

  
	
  Philosophy

  	
  4

  
	
   

  	
   

  
	
  General
  Features

  	
  4

  
	
   

  	
   

  
	
  Payments

  	
  5

  
	
   

  	
   

  
	
  Entitlements

  	
  5

  
	
   

  	
   

  
	
  Administration

  	
  5

  
	
   

  	
   

  
	
  Miscellaneous

  	
  5

  
	
   

  	
   

  
	
  SETTING TARGETS AND OBJECTIVES

  	
  6

  
	
   

  	
   

  
	
  Financial Factor

  	
  6

  
	
   

  	
   

  
	
  Financial
  Factor Measurement

  	
  6

  
	
   

  	
   

  
	
  Guidelines
  for Objective Setting and Evaluation

  	
  7

  
	
   

  	
   

  
	
  Performance Factor

  	
  7

  
	
   

  	
   

  
	
  Guidelines
  for Objective Setting and Evaluation

  	
  7

  
	
   

  	
   

  
	
  Guidelines
  for Reviewing Overall Performance

  	
  8

  
	
   

  	
   

  
	
  Incentive Calculation

  	
  9

  
	
   

  	
   

  
	
  TARGET INCENTIVE COMPENSATION AWARD (TICA) CALCULATION –
  EXAMPLE

  	
  9

  
	
   

  	
   

  
	
  EARNED INCENTIVE COMPENSATION AWARD (EICA) CALCULATION:

  	
  10

  
	
   

  	
   

  
	
  Summary

  	
  10

  

 

2

 

Definitions

 

Except as otherwise specified or as the context may otherwise
require, the following terms have the meanings indicated below for the purposes
of this Plan:

 

Company means UIC
and all Subsidiaries of UIC.

 

Compensation Year or
Year means the fiscal year of
UIC.

 

Disability means
disability according to the terms of the United Industrial Corporation
Long-Term Disability Plan as may from time to time be applicable with
respect to the particular Participant.

 

Layoff means a
termination which is not for cause but rather is due to a permanent or
indefinite reduction in the work force, including, but not limited to, the
elimination of a Participant’s position as a result of a facility closure,
discontinuance or relocation of operations, acquisition, reorganization or sale
(including the sale by the Company of a business unit, division, product line
or functionally related group of assets.)

 

Participant means an
eligible Company employee selected for Plan participation in accordance with
the procedures set forth herein.

 

Plan means the 2005
Management Incentive Plan (MIP) as set forth herein.

 

Plan Compensation
means the amounts earned for the year as a consequence of the Plan.

 

Retirement means
retirement according to the terms of the Subsidiary retirement plan.

 

Subsidiary means any
corporation in which the Company owns total equity interest. However, if AAI or
UIC owns majority interest, then any compensation plan must be approved by UIC.

 

Plan
Amendment and Termination

 

UIC may, in its sole and absolute discretion, amend, suspend or
terminate the Plan at any time, with or without advance notice to Participants.

 

Effective
Date of the Plan

 

This Plan shall be effective as of January 1, 2005.

 

3

 

MANAGEMENT INCENTIVE PLAN (MIP)

 

Philosophy

 

The UIC
Management Incentive Plan (often called the Bonus Plan or Plan) is a variable
cash based incentive plan designed to focus management attention on performance
factors important to the continued success of their business unit and the
Company overall. Achievement of high standards of business and individual
performance should be rewarded financially and conversely; significant
compensation should be at risk for failing to achieve those high standards.  The opportunity to earn compensation in
addition to base salary is an integral part of our total compensation
approach. The Management Incentive Plan serves as a direct link between a
Participant’s compensation and the performance of a business unit or the
Company overall.

 

General
Features

 

Participants
are senior managers in a position to significantly affect the performance of
their business unit. These are generally managers with responsibility across an
entire business unit, i.e. headquarter executives; product line and other
general or program managers; and selected functional managers.

 

To be eligible
to be selected to participate, a new hire to the Company or a newly eligible
employee must be employed as of 1 September. Part-year Participants (i.e.,
employed after 1 January but prior to 1 September) shall be eligible for
awards calculated pro rata to the number of days employed during the Compensation
Year.

 

Target
incentive compensation is over and above the base salary. It is a function of
the annual results, both by the individual and the relevant business unit. Base
salary levels are established using competitive comparisons. The target incentive
compensation, a percent of base salary, is similarly determined, thus ensuring
the competitiveness of UIC’s total target compensation. Base salary and target
annual incentives are considered competitive total compensation. Actual
incentive awards may range from zero to two hundred percent of target. The
target incentive percent varies from 10 to 50 percent of base salary, depending
on the Participant’s salary grade. Incentive awards are not guaranteed. The
Plan requires reasonable risk on the part of the Participant, commensurate
with potential reward-an opportunity to raise total compensation significantly
above the target opportunity.

 

Participants
in the MIP also receive:

 

•                  A maximum life
insurance benefit of $400,000

•                  Long Term
Disability coverage equal in value to their salary in the plan year plus their
target cash bonus value (salary x bonus %) to a maximum benefit of $200,000.

 

4

 

•                  Accidental Death
and Dismemberment benefit equal to three times their annual compensation
rounded to the next higher $1,000 subject to a maximum of $280,000.

 

Payments

 

The
distribution of Plan Compensation shall be made by March 15 following the
Compensation Year.

 

Entitlements

 

General Rule: To
receive Plan Compensation from this Plan, the Participant must be an employee
of the Company at the time of payment of Plan Compensation. Exceptions to this rule shall
be made in the cases of death, retirement, layoff, and disability as described
in this Section. UIC may also, in its sole discretion, permit other
exceptions to this rule.

 

Death, Retirement, Layoff and Disability:  If a Participant dies, retires, is laid off,
or becomes disabled during the Compensation Year, the individual Target
Incentive Compensation Award (TICA) shall be prorated and payment made by March 15th  following the Compensation Year. If death,
retirement, layoff or disability occurs after the close of a Compensation Year,
but before payment is made, such event shall not affect calculations.

 

Administration

 

The
Compensation Committee of the Board of Directors, is authorized and empowered
to administer the Plan; interpret the Plan, prescribe, amend and rescind rules relating
to the Plan; and determine the rights and obligations of Participants under the
Plan. The Compensation Committee may delegate certain of these activities
and all other matters as it solely determines. Any determinations by the
Compensation Committee or the Board of Directors are final and binding upon the
Participants of the MIP.

 

Miscellaneous

 

No Contract or Guarantee of Continued
Employment. Eligibility to participate and
participation in the Plan is not a guarantee of continued employment. The Plan
does not constitute a contract of employment and the Company specifically
reserves the right to terminate a Participant’s employment at any time with or
without cause and with or without notice or assigning a reason.

 

No Guarantee of Plan Compensation. Eligibility
to participate and participation in this Plan does not guarantee the payment of
Plan Compensation.

 

The UIC Board
determines plan participation for each Compensation Year and participation of
one year does not guarantee participation in future years.

 

5

 

Assignment and Transfers. With
the exception of transfer by will or by the laws of descent and distribution,
rights under the Plan may not be transferred or assigned.

 

Withholding Tax. The
Company will deduct taxes required by law to be withheld with respect to such
payments from all cash payment due a Participant.

 

SETTING TARGETS AND OBJECTIVES

 

Key to an
effective and equitable management incentive plan are the quality, realism and
stretch of the targets and objectives. In setting these targets and objectives
we focus on high standards, continuous improvement and Participant involvement.
TICA and performance measurements are built around two basic factors: a
financial factor and performance factor. The weighting of those factors can
vary from one business unit to another, reflecting the relative importance of
business to individual performance for that unit during any Compensation Year. Between
them, the financial and performance factors total 100 percent. The factors are
intended to be significant results that need to be achieved if the business
unit’s strategic and overall performance objectives are to be realized.

 

The financial
factor measures metrics important to the business unit. Budgets as well as past
and expected future performance results are the criteria used in setting financial
targets. These factors are reviewed and approved by the CEO. Achievement of the
financial targets results in a 1.0 rating.

 

Performance
objectives are important personal objectives directly related to a Participant’s
major responsibilities. For example, these objectives could include such areas
as market and/or customer share improvement; cost improvements; product
development; pricing; inventory levels; introduction or improvement of
products, processes or systems; health, safety and environmental performance;
or management development. Performance objectives are set annually for each
Participant through the Key Accountability Document (KAD). The Compensation
Committee sets the performance objectives for the Chief Executive Officer.

 

UIC
recognizes circumstances change throughout the year. Significant achievements
during the Compensation Year, not contemplated at the inception of the
Compensation Year, will be reviewed and incorporated in the final determination
of Plan Compensation.

 

Financial Factor

 

Financial
Factor Measurement

 

Actual
Financial Factors are adjusted to level the effect of accounting changes,
acquisition costs, land sales, strategic restructuring costs, capital
expenditures,

 

6

 

etc. Adjusted
performance results are compared with the previously set targets and the zero
(0) and two (2.0) performance levels. This comparison results in a Financial
Factor rating for each business unit that is somewhere on a scale of zero to
two.

 

Guidelines
for Objective Setting and Evaluation

 

The 1.0
targets are the levels at which the unit is expected to perform for the
Compensation Year. Each unit’s budget is the primary starting point for 1.0
target levels. No incentive is paid for results at or below the zero level, and
twice the target incentive is paid for results at or above the 2.0 level.

 

• The 1.0 targets are generally
established at levels judged to have a reasonable chance of attainment and
match the commitments made to the UIC Board; the zero and 2.0 extremes are
normally established in terms of reasonable stretch and relative risk.

 

• Targets are first developed by
unit/division management. The CEO and appropriate staff discuss the targets and
agree upon zero, one and two levels.

 

• In determining the business
performance ratings, actual performance is adjusted to level the effect of
accounting changes, acquisition costs, land sales, strategic restructuring
costs, capital expenditures, etc.

 

• Adjusted performance results are
compared with targets, which results in a Financial Factor rating for each
business unit that is somewhere on the scale of zero to two.

 

• Business
performance targets are finalized early in the Compensation Year but can be
adjusted by the Board in cases of substandard change in the business.

 

Performance Factor

 

Guidelines
for Objective Setting and Evaluation

 

Each Participant submits
strategic performance objectives in KAD format to his/her manager. Performance
objectives are based on the major job responsibilities assigned to the
individual and are related to the business unit’s strategic and/or UIC’s
overall performance objectives.

 

• To develop individual performance objectives,
each Participant must understand and commit to the operating unit’s business
and human resources strategies.

 

• The two to five most important individual
objectives should be submitted to the next higher-level manager for review and
approval. Objectives should state results required ensuring that the
performance can be measured. In many cases, measurement of results cannot be
quantified. When this quantification is not

 

7

 

possible, there should be a
clear statement of the criteria that will be used to judge the accomplishment
of the objectives. For example, if the objective is to develop a strategic
plan, success is not determined primarily by a plan being developed on time but
rather the quality of thinking that the plan portrays. The KAD should lay out
the criteria to determine the quality. Measurements enable the Participant and manager
to determine whether the objective or a portion of the objective has been
successfully achieved.

 

•                  Objectives should be stated in measurable
terms and should include timing.

 

•                  Objectives should identify specific achievements
expected and not merely restate major responsibilities or plans to accomplish
them.

 

•                  Objectives should be realistic with some
stretch and be based on actual conditions.

 

The degree of difficulty may vary
among the objectives. A priority ranking or assessment of relative difficulty,
included in the objectives statement, will be of value during the review to
determine the strategic performance factor rating. In determining the strategic
performance rating, the following will be considered:

 

•                  The accomplishment of annual objectives and
the significance of those objectives to overall business unit results.

 

•                  Demonstration of leadership

 

•                  Degree of difficulty of the objectives.

 

•                  Overall performance of major responsibilities
including self-development.

 

•                  Performance in response to unanticipated
circumstances or opportunities.

 

•                  Contributions to the management team and
important corporate initiatives.

 

In summary, in rating
Performance, achievement of objectives, leadership, overall job performance,
response to unplanned major events and contributions to the overall management
team are all to be considered. Performance is rated using the entire zero to
two spectrum.

 

Guidelines
for Reviewing Overall  Performance

 

Creates five general levels
of performance with definitions of possible performance and a suggested range
of ratings for each.

 

8

 

	
  0 to .5

  	
   

  	
  Overall
  performance considerably less than standard. Did not meet objectives
  primarily because of own performance. Performance in unplanned circumstances
  was below expectations. Individual did not demonstrate satisfactory
  improvement during the year.

  
	
   

  	
   

  	
   

  
	
  .5 to .9

  	
   

  	
  Overall
  performance of major position responsibilities did not meet all expectations.
  Some objectives achieved but not in a totally satisfactory manner. Measurable
  progress made during the year and current progress is satisfactory.

  
	
   

  	
   

  	
   

  
	
  .9 to 1.1

  	
   

  	
  Overall
  performance of major responsibilities meets current standards. Objectives
  substantially met, especially those of greater significance to business
  objectives. Performance in unplanned circumstances met or exceeded
  expectations.

  
	
   

  	
   

  	
   

  
	
  1.1 to 1.5

  	
   

  	
  Overall
  performance consistently met or exceeded standards for all responsibilities.
  Objectives were generally exceeded during the year. Function for which
  responsible has shown significant progress. Significant unplanned
  circumstances occurred during the year and related performance exceeded
  expectations

  
	
   

  	
   

  	
   

  
	
  1.5 to 2.0

  	
   

  	
  Outstanding
  performance in all aspects of current job. All objectives exceeded with
  recognition of these accomplishments. Has demonstrated success of at least
  one major breakthrough or significant project. Professional performer on all
  job functions and recognized as such by peers and superiors.

  

 

Achievement of
tougher objectives receives a higher strategic performance factor rating, which
translates into a higher incentive award. For example, a Participant who sets
unusually demanding objectives and then misses one might receive a 1.4 Performance
rating. A Participant who set more easily achieved objectives and then hits
them all might receive a 1.0 Performance rating.

 

Incentive Calculation

 

To determine a
Participant’s incentive, both factors, Financial and Performance are rated and
weighted according to the predetermined split. The two results are totaled and
multiplied by the Participant’s Compensation Year base salary earnings
(prorated for partial-year participation) to determine the Plan Compensation.

 

TARGET INCENTIVE COMPENSATION AWARD (TICA) CALCULATION –
EXAMPLE

 

(The
actual percentages of Financial and Performance and the metrics used for
Financial are only examples and may vary by organization or specific
business needs year to year.)

 

Your
Performance Factor is weighted at 20% and Financial Factor weighted at 80%.
Within the Financial Factor, Cash Flow (CF) and Earnings Before Interest,
Taxes,

 

9

 

Depreciation
and Amortization (EBITDA) are weighted 70% and 30%, respectively.

 

This year, the Cash Flow
rating was 1.2 and the EBITDA was 1.0. Your Performance rating was  .8

Your Target
Incentive Compensation Award Eligible Earnings were: $100,000

Your Target
Incentive Compensation Award Percentage is: 10%

Your Target
Incentive Compensation Award Amount was: $10,000 

 

EARNED INCENTIVE COMPENSATION AWARD (EICA) CALCULATION:

 

1.
WEIGHTED PERFORMANCE FACTOR DETERMINATION

 

Your
Performance Rating X Performance Weight = Weighted Performance Rating, or .8 X .20 = .16

 

2.
WEIGHTED CF/EBITDA DETERMINATIONS

CF
Contribution

 

The weight used to
calculate CF Contribution below is the cash portion (70%) of the Financial
weight (80%)

 

EBITDA Contribution

CF Rating X Weight = CF Weighted Rating

1.2 X .56 = .672

 

The weight used to calculate EBITDA Contribution
below is the EBITDA portion (30%) of the Financial weight (80%)

 

EBITDA Rating X Weight = EBITDA Weighted Rating

1.00 X .24 = .24

 

3. YOUR TOTAL RATING DETERMINATION

 

Weighted Performance Rating + Weighted CF Rating + Weighted EBITDA
Rating =Total Rating, or .16 + .672 + .24 =
1.072

 

4.
YOUR EICA DETERMINATION (ROUNDED TO NEAREST DOLLAR)

 

Target Amount
X Total Rating = Actual Incentive Award, or 
$10,000 x 1.072 = $10,720

 

Summary

 

UIC’s
Management Incentive Plan is an integral part of our competitive total
compensation program, offering incentives and rewards offset by commensurate
risk. Participants are individually selected from among those managers whose
decisions significantly affect UIC’s performance.

 

10

 

Business and
strategic performance targets and objectives are set in areas that require
focus and emphasis in the Compensation Year including actions intended to
execute longer term strategies. Performance is rigorously measured against the
targets, objectives and on an overall basis. 

 

Both business
unit and individual performance affect incentive awards.

 

11

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