Document:

exv10w15

EXHIBIT 10.15

ASTRONICS CORPORATION

FORM OF INDEMNIFICATION AGREEMENT AS EXECUTED BY EACH OF ASTRONICS CORPORATION’S

DIRECTORS AND EXECUTIVE OFFICERS

INDEMNIFICATION AGREEMENT

          This Indemnification Agreement (this “Agreement”) is made as of the ___ day of __________ by
and between Astronics Corporation, a New York corporation (the “Corporation”) and __________
(“Indemnitee”), a director, officer or key employee of the Corporation.

WITNESSETH:

          WHEREAS, it is essential to the Corporation to retain and attract directors, officers and key
employees who are the most capable persons available;

          WHEREAS, the Indemnitee is serving or has agreed to serve as a director, officer or key
employee of the Corporation and in such capacity will render valuable services to the Corporation;

          WHEREAS, the substantial increase in corporate litigation subjects directors, officers and key
employees to expensive litigation risks at the same time that the availability of directors’ and
officers’ liability insurance and fiduciary insurance has been severely limited;

          WHEREAS, it is now, and has always been, the express policy of the Corporation to indemnify
its directors, officers and key employees so as to provide them with the maximum possible
protection permitted by law; and

          WHEREAS, Indemnitee may not be willing to serve or to continue to serve as a director, officer
or key employee without adequate protection, and the Corporation desires Indemnitee to continue to
serve in such capacity.

          NOW, THEREFORE, in consideration of the Indemnitee’s continued service as a director, officer
or key employee of the Corporation, the Corporation and Indemnitee do hereby agree as follows:

          Agreement to Serve. Indemnitee agrees to continue to serve as a director, officer or key
employee of the Corporation for so long as he or she is duly elected or appointed or until such
time as he or she tenders his or her resignation in writing. This provision is not a guarantee of
employment.

          Definitions. As used in this Agreement: The term “Proceeding” shall include any threatened,
pending, or completed action, suit, or proceeding, whether brought by or in the right of the
Corporation or one of its subsidiaries or otherwise, and whether of a civil, criminal,
administrative, or investigative nature, in which Indemnitee is or was a party or is threatened to
be made a party by reason of the fact that Indemnitee is or was a director, officer or employee of
the Corporation (or any subsidiary of the Corporation), or is or was serving at the request of the
Corporation as a director, officer, employee, member, manager, trustee, agent, or fiduciary of
another corporation, limited liability company, partnership, joint venture, trust, or other
enterprise.

          The term “Expenses” shall include, without limitation, expenses of investigation, judicial or
administrative proceedings or appeals, amounts paid in settlement by or on behalf of Indemnitee,
attorneys’ fees and disbursements, experts’ fees and disbursements and any expenses of establishing
a right to indemnification under Paragraph 7 of this Agreement.

          References to “other enterprises” shall include employee benefit plans; references to “fines”
shall include any excise taxes assessed on Indemnitee with respect to any employee benefit plan;
references to “serving at the request of the Corporation” shall include any service as a director,
officer, employee or agent of the Corporation which imposes duties on, or involves services by,
such director, officer, employee, agent, or fiduciary with respect to an employee benefit plan, its
participants, or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably
believed to be in the interest of the

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participants and beneficiaries of an employee benefit plan
shall be deemed to have acted in a manner “not opposed to the best interest of the Corporation” as
referred to in this Agreement.

          Indemnity in Third-Party Proceedings. The Corporation shall indemnify Indemnitee in accordance
with the provisions of this Paragraph 3, against all Expenses, judgments, fines, and penalties
actually and reasonably incurred by Indemnitee in connection with the defense or settlement of any
Proceeding (other than a Proceeding by or in the right of the Corporation to procure a judgment in
its favor) if Indemnitee acted in good faith and in a manner which he or she reasonably believed to
be in or not opposed to the best interests of the Corporation, and, in the case of a criminal
proceeding, had no reasonable cause to believe that his or her conduct was unlawful. The
termination of any such Proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith in a manner which he or she reasonably believed to be in or not opposed to
the best interests of the Corporation, and, with respect to any criminal proceeding, that
Indemnitee did not have reasonable cause to believe that his or her conduct was unlawful.

          Indemnity in Proceedings By or In the Right of the Corporation. The Corporation shall
indemnify Indemnitee, in accordance with the provisions of this Paragraph 4, against all Expenses
actually and reasonably incurred by Indemnitee in connection with the defense or settlement of any
Proceeding by or in the right of the Corporation to procure a judgment in its favor, including the
amount of the judgment or settlement, if Indemnitee acted in good faith and in a manner which he or
she reasonably believed to be in or not opposed to the best interests of the Corporation; provided,
however, that no indemnification for Expenses shall be made under this Paragraph 4 in respect of
any claim, issue, or matter as to which Indemnitee shall have been adjudged to be liable to the
Corporation unless and only to the extent that the court in which such Proceeding was brought, or,
if no action was brought, any court of competent jurisdiction, determines upon application that,
despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee
is fairly and reasonably entitled to indemnity for the Expenses and the amount of the judgment or
settlement which the court shall deem proper.

          Indemnification of Expenses of Successful Party. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or otherwise, in defense
of any Proceeding, or in defense of any claim, issue, or matter therein, Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by Indemnitee in connection
therewith to the fullest extent permitted by New York Law.

          Advances of Expenses. At the written request of Indemnitee, the Expenses actually and
reasonably incurred by Indemnitee in any Proceeding shall be paid by the Corporation in advance of
the final disposition of such Proceeding and within 30 days after request therefor. Indemnitee
will repay any such Expenses that are advanced under this Paragraph 6 if it is ultimately
determined, in a final, non-appealable judgment rendered by the court of last resort (or by a lower
court if not timely appealed), that Indemnitee is not entitled to be indemnified against such
Expenses. This undertaking by Indemnitee is an unlimited general undertaking but no security for
such undertaking will be required. If the Corporation makes an advance of expenses pursuant to this
Paragraph 6, the Corporation shall be subrogated to every right of recovery Indemnitee may have
against any insurance carrier from whom the Corporation has purchased insurance for such purpose.

          Right of Indemnitee to Indemnification Upon Application; Procedure Upon Application.

          Subject to Paragraph 8 of this Agreement, Indemnitee will be presumed to be entitled to
indemnification under this Agreement. The burden of proving that indemnification or advances of
Expenses are not appropriate shall be on the Corporation.

          Any indemnification under Paragraphs 3 and 4 (other than the advancement of Expenses) shall be
paid by the Corporation no later than 30 days after receipt of the written request of Indemnitee,
unless a determination is made within the 30-day period by (i) the Board of Directors by a majority
vote of directors who are not and were not parties to the Proceeding in respect of which
indemnification is being sought (“Disinterested Directors”), (ii) a committee of the Board of
Directors comprised of Disinterested Directors or (iii) independent legal counsel in a written
opinion (which counsel shall be appointed by a vote of the Disinterested Directors), that
Indemnitee has not met the relevant standards for indemnification set forth in Paragraphs 3 and 4.
If requested by the Indemnitee in writing, any such determination shall be made by independent
legal counsel not previously employed by the Corporation or any Affiliate thereof (“Affiliate”
having the meaning defined in Rule 144 promulgated by the Securities and Exchange Commission under
the Securities Act of 1933, as amended).

          Indemnitee will be entitled to a hearing before the Board of Directors of Corporation or the
Disinterested Directors and/or any other person or persons making a determination and evaluation
under Paragraph 7(b). Indemnitee will be entitled to be
represented by counsel at such hearing. The cost of any determination and evaluation under
Paragraph 7(b) (including attorneys’ fees

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and other expenses incurred by Indemnitee in preparing
for and attending the hearing contemplated by Paragraph 7 and otherwise in connection with the
determination and evaluation under Paragraph 7) will be borne by the Corporation.

          The right to indemnification or advancement of Expenses as provided by this Agreement shall be
enforceable by Indemnitee in any court of competent jurisdiction. Neither the failure of the
Corporation (including its Board of Directors or independent legal counsel) to have made a
determination prior to the commencement of such action that Indemnitee has met the applicable
standard of conduct nor an actual determination by the Corporation (including its Board of
Directors or independent legal counsel) that Indemnitee has not met such standard shall be a
defense to the action or create a presumption that Indemnitee has not met the applicable standard
of conduct. Indemnitee’s Expenses actually and reasonably incurred in connection with successfully
establishing his or her right to indemnification or advances, in whole or in part, shall also be
indemnified by the Corporation.

          With respect to any Proceeding for which indemnification is requested, the Corporation will be
entitled to participate therein at its own expense and, except as otherwise provided below, the
Corporation may assume the defense thereof, with counsel satisfactory to Indemnitee. After notice
from the Corporation to Indemnitee of its election to assume the defense of a Proceeding, the
Corporation will not be liable to Indemnitee under this Agreement for any Expenses subsequently
incurred by Indemnitee in connection with the defense thereof, other than as provided below. The
Corporation shall not settle any Proceeding in any manner which would impose any penalty or
limitation on Indemnitee without Indemnitee’s written consent. Indemnitee shall have the right to
employ counsel in any Proceeding but the fees and expenses of such counsel incurred after notice
from the Corporation of its assumption of the defense of the Proceeding shall be at the expense of
Indemnitee, unless (i) the employment of counsel by Indemnitee has been authorized by the
Corporation, (ii) Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Corporation and Indemnitee in the conduct of the defense of a Proceeding, or
(iii) the Corporation shall not in fact have employed counsel to assume the defense of a
Proceeding, in each of which cases the fees and expenses of Indemnitee ‘s counsel shall be advanced
by the Corporation. Notwithstanding the foregoing, the Corporation shall not be entitled to assume
the defense of any Proceeding brought by or in the right of the Corporation.

          The Corporation shall pay to Indemnitee, at the time payments are made to Indemnitee for
Expenses, judgments, fines or penalties pursuant to this Agreement, an additional payment (the
“Gross Up Amount”) such that after payment of all taxes, if any, on payments so made, including the
amount of the Gross Up Amount, Indemnitee retains an amount equal to the amount to be received.

          Limitation on Indemnification. No payment pursuant to this Agreement shall be made by the
Corporation:

          to indemnify or advance funds to Indemnitee for Expenses with respect to Proceedings initiated
or brought or joined in voluntarily by Indemnitee and not by way of defense, except with respect to
Proceedings brought to establish or enforce a right to indemnification or advancement of Expenses
under this Agreement or as otherwise required by New York law, but such indemnification or
advancement of Expenses may be provided by the Corporation in specific cases if the Board of
Directors finds it to be appropriate;

          to indemnify Indemnitee for any Expenses, judgments, fines or penalties sustained in any
Proceeding for which payment is actually made to Indemnitee under a valid and collectible insurance
policy, except in respect of any excess beyond the amount of payment under such insurance;

          to indemnify Indemnitee for any Expenses, judgments, fines or penalties sustained in any
Proceeding for an accounting of profits made from the purchase or sale by Indemnitee of securities
of the Corporation pursuant to the provisions of § 16(b) of the Securities Exchange Act of 1934,
the rules and regulations promulgated thereunder and amendments thereto or similar provisions of
any federal, state, or local statutory law; or

          if a court of competent jurisdiction finally determines that such payment hereunder is
unlawful.

          Indemnification Hereunder Not Exclusive. The indemnification and advancement of Expenses
provided by this Agreement shall not be deemed exclusive of any other rights to which indemnitee
may be entitled under the Certificate of Incorporation or the By-Laws of the Corporation, any
agreement, any vote of stockholders or disinterested Directors, the Business Corporation Law of the
State of New York, or otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office. To the extent the provisions of this Agreement conflict
with the provisions regarding indemnification and
advancement of Expenses in the By-Laws of the Corporation, this Agreement will control. The
indemnification provided by this

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Agreement shall continue as to Indemnitee even though he or she
may have ceased to be a director, officer or key employee and shall inure to the benefit of the
heirs and personal representatives of Indemnitee.

          Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Corporation for a portion of the Expenses, judgments, fines or penalties
actually and reasonably incurred by him or her in any Proceeding but not, however, for the total
amount thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such
Expenses, judgments, fines or penalties to which Indemnitee is entitled.

          Indemnification of Indemnitee’s Estate. Notwithstanding any other provision of this
Agreement, and regardless whether indemnification of the Indemnitee would be permitted and/or
required under this Agreement, if the Indemnitee is deceased, the Corporation shall indemnify and
hold harmless the Indemnitee’s estate, spouse, heirs, administrators, personal representatives and
executors (collectively the “Indemnitee’s Estate”) against, and the Corporation shall assume, any
and all claims, damages, Expenses, penalties, judgments and fines actually incurred by the
Indemnitee or the Indemnitee’s Estate in connection with the investigation, defense, settlement or
appeal of any Proceeding. Indemnification of the Indemnitee’s Estate pursuant to this Section 11
shall be mandatory and not require any determination or finding that the Indemnitee’s conduct
satisfied a particular standard of conduct.

          Spousal Indemnification. The indemnifications, benefits and obligations of this Agreement
shall extend to the spouse of an Indemnitee in the event that the spouse is made a party to a
Proceeding or collection, execution or enforcement efforts arising from a Proceeding.

          Limitation of Actions and Release of Claims. No proceeding shall be brought and no cause of
action shall be asserted by or on behalf of the Corporation or any subsidiary against the
Indemnitee, his or her spouse, heirs, estate, executors or administrators after the expiration of
one year from the act or omission of the Indemnitee upon which such proceeding is based; however,
in a case where the Indemnitee fraudulently conceals the facts underlying such cause of action, no
proceeding shall be brought and no cause of action shall be asserted after the expiration of one
year from the earlier of (i) the date the Corporation or any subsidiary of the Corporation
discovers such facts, or (ii) the date the Corporation or any subsidiary of the Corporation could
have discovered such facts by the exercise of reasonable diligence. Any claim or cause of action
of the Corporation or any subsidiary of the Corporation, including claims predicated upon the act
or omission of the Indemnitee, shall be extinguished and deemed released unless asserted by filing
of a legal action within such period. This section shall not apply to any cause of action which
has accrued on the date hereof and of which the indemnitee is aware on the date hereof, but as to
which the Corporation has no actual knowledge apart from the Indemnitee’s knowledge.

          Maintenance of Liability Insurance.

          The Corporation hereby covenants and agrees that, as long as Indemnitee continues to serve as
a director, officer or key employee of the Corporation and thereafter as long as Indemnitee may be
subject to any Proceeding, the Corporation, subject to subsection (c) below, shall maintain in full
force and effect directors’ and officers’ liability insurance (“D&O Insurance”) in reasonable
amounts from established and reputable insurers.

          In all D&O Insurance policies, Indemnitee shall be named as an insured in such a manner as to
provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured
of the Corporation’s directors and officers.

          Notwithstanding the foregoing, the Corporation shall have no obligation to obtain or maintain
D&O Insurance if the Corporation determines in good faith that such insurance is not reasonably
available, the premium costs for such insurance are disproportionate to the amount of coverage
provided, the coverage provided by such insurance is so limited by exclusions that it provides an
insufficient benefit, or Indemnitee is covered by similar insurance maintained by a subsidiary of
the Corporation.

          Savings Clause. If this Agreement or any portion hereof is invalidated on any ground by any
court of competent jurisdiction, the Corporation shall nevertheless indemnify Indemnitee to the
extent permitted by any applicable portion of this Agreement that has not been invalidated or by
any other applicable law.

          Notice. Indemnitee shall, as a condition precedent to his or her right to be indemnified under
this Agreement, give to the Corporation notice in writing as soon as practicable of any Proceeding
for which indemnity will or could be sought under this Agreement. Notice to the Corporation shall
be directed to Astronics Corporation, 130 Commerce Way, East Aurora, New York
14052, Attention: Corporate Secretary (or such other address as the Corporation shall
designate in writing to Indemnitee). Notice

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shall be deemed received three days after the date
postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the
Corporation such information and cooperation as it may reasonably require and as shall be within
Indemnitee’s power.

          Counterparts. This Agreement may be executed in any number of counterparts, all of which shall
be deemed to constitute one and the same instrument.

          Applicable Law. This Agreement shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York

          Successors and Assigns. This Agreement shall be binding upon the Corporation and its
successors and assigns.

          Amendments. No amendment, waiver, modification, termination, or cancellation of this Agreement
shall be effective unless in writing signed by both parties hereto. The indemnification rights
afforded to Indemnitee hereby are contract rights and may not be diminished, eliminated, or
otherwise affected by amendments to the Certificate of Incorporation or Bylaws of the Corporation
or by other agreements.

          Cessation of Employment. The benefits of this Agreement shall extend to and include officers,
directors and key employees of the Corporation who retire or cease their employment with the
Corporation.

          Prior Agreements. This Agreement replaces and supersedes all prior agreements dealing with
the same subject matter as this Agreement.

          Cooperation and Interest. The Corporation shall cooperate in good faith with the Indemnitee
and use its best efforts to ensure that the Indemnitee is indemnified and/or reimbursed for
liabilities described in this Agreement to the fullest extent permitted by law.

          Effective Date. The provisions of this Agreement shall cover claims, actions, suits and
proceedings, whether now pending or hereafter commenced, and shall be retroactive to cover acts or
omissions or alleged acts or omissions which heretofore have taken place.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
signed as of the day and year first above written.

	 	 	 	 	 	 	 	 	 

	Attest:	 	 	 	ASTRONICS CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

Secretary

	 	 
	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Indemnitee
	 	 

5exv10w1

Exhibit 10.1

MICHAEL BAKER CORPORATION

INCENTIVE COMPENSATION PLAN 

     Section 1. Purpose. The purpose of the Michael Baker Corporation 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 financial performance goals. By providing a payment
based upon profitability, the Company will establish rewards based on 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,
2010. 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 Targets and 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 who is designated to
participate shall receive notice informing the employee of the Plan, which notice may also specify
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 may be assigned as a member of one of the following
Groups:

	 	 	 	 	 

	 

	 	Group 1.
	 	Participants in Group 1 may include the Company’s executive officers, including Divisional, Department or Office Managers.
	 
	 

	 	Group 2.
	 	Participants in Group 2 may include Project Managers.
	 
	 

	 	Group 3.
	 	Participants in Group 3 may include any employee who is designated
as a Participant in the Plan and who is not otherwise assigned as a member of
Group 1 or 2.

          Section 4.03. Incentive Programs. The following Incentive Programs may be
administered under the Plan:

	 	•	 	The Corporate Incentive Program;
	 
	 	•	 	The Engineering Incentive Program;
	 
	 	•	 	The Project Manager Incentive Program; and
	 
	 	•	 	The Discretionary Incentive Program.

All Group 1 Participants are eligible to participate in the Corporate Incentive Program or the
Engineering Incentive Program, if offered; provided that if such program(s) are not offered Group 1
Participants shall be eligible to participate in the Discretionary Incentive Program, if offered.
All Group 2 Participants are eligible to participate in the Project Manager Incentive Plan, if
offered; provided that if such program is not offered Group 2 Participants shall be eligible to
participate in the Discretionary Incentive Program, if offered. All Group 3 Participants are
eligible to participate in the Discretionary Incentive Program, if offered. 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,

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subject to the other terms and conditions of the Plan and the achievement of the applicable
Performance Goals.

               (c) All incentive awards that are forfeited as provided in Section 4.04 (a) and (b) above may
be allocated to or among remaining plan participants within the discretion of the Committee.

          Section 4.05. Death, Disability or Retirement. If, during a Plan Year, a
Participant dies or becomes disabled, within the meaning of Section 409A(a)(2)(C) 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 Group 3 Participants 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.
Incentive payment targets and performance goals may be established, as provided in this Section 5,
for any program other than the Discretionary Incentive Program or discretionary bonus program and,
may, to the extent determined by the Committee, be applicable to such discretionary programs.

          Section 5.01. Incentive Targets. Each Participant under the Plan may be
assigned an incentive payment 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 other basis, 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 a 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

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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 may establish specific performance goals for the Company’s divisions or
business units (“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) Participants’ Performance Goals. Within 90 days after the commencement of the
Plan Year, the Committee may 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)	 	Engineering Incentive Program. The
Participant Performance Goals for all Participants in the Engineering
Incentive Program shall be the Engineering Performance Goals and, in
the case of Group 1 Participants who are Engineering Managers,
Engineering Performance Goals, weighted per Attachment F.
	 
	 	(iii)	 	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.
	 
	 	(iv)	 	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

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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 its discretion, after considering the level of achievement of the Company Performance
Goals, and the extent to which that achievement results in funding of incentive awards, the
applicable Participant Performance Goals, the Participant’s Incentive Target for such level of
achievement, and the other terms of the Plan.

          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 21/2
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

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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

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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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