Hunter Acquisition/ Orion Marine Group

EX-10.15 19 h49102exv10w15.htm SUBSIDIARY INCENTIVE PLAN exv10w15

Exhibit 10.15

Hunter Acquisition/
Orion Marine Group

Subsidiary Incentive Plan (SIP) Document – Tier 2
Fiscal Year 2006

I. Objectives

	1.		To provide incentive to Orion’s Subsidiary Management Teams to grow the overall business of Orion and their respective subsidiaries in a profitable manner.

	2.		To financially reward employees for achievement of corporate, subsidiary, and individual goals.

	3.		To provide competitive cash compensation when plan results are achieved, and exceed market norms when superior results occur.

II. Eligibility

Eligibility for the SIP-Tier 2 includes senior management and business development staff of Orion’s subsidiaries.

III. Incentive Determination

Each Participant will have a target incentive bonus equal to from 30% to 50% of annual base salary. The incentive bonus available to Participants is dependent on the following four standard elements:

	•		30% of Bonus — Overall Orion Marine Group Financial Performance relative to plan;

	•		35%-45% of Bonus — Subsidiary Financial Performance relative to plan;

	•		15%-20% of Bonus — Individual Goals established by the President or CEO of Orion Marine Group; and

	•		10%-20% of Bonus — Subsidiary Safety Performance.

			The percentages for Subsidiary Financial Performance, Individual Goals and Subsidiary Safety Performance may be adjusted for an individual Participant at the discretion of the President or CEO of Orion Marine Group.

	6.		The Individual Goals element for each Participant will be established at the discretion of the Orion Marine Group’s CEO, President and Sr. Management Team. Objectives may include safety record, a business

			unit’s operating, financial, and sales growth results, performance improvement, and other specific items.

	7.		Determination of achievement of goals shall be at the sole and absolute discretion of the SIP Administrator.

VI. Award Allocation

Earned awards are payable only if a SIP Participant is an employee in good standing. Good standing means that, at the time of payout, an employee:

	a)		has not resigned,

	b)		has not indicated an intention to resign,

	c)		has not been notified that their employment has been terminated,

	d)		is not on a performance improvement program.

If an employee terminates prior to the fiscal year’s close because of death or disability, SIP awards will be prorated for the year.

VII. Timing and Payout Form

10.

Incentive awards will be calculated and are payable as soon as practical following the close of the fiscal year. Awards will be paid as ordinary income and will be subject to payroll tax withholding.

IV. Plan Administration

	11.		The SIP Administrator will be a committee appointed by Orion’s Senior Management Team.

	12.		The SIP Administrator will approve annually developed performance measures, performance standards, and award levels.

	13.		The SIP Administrator will approve all finalized award payments before submission to payroll.

	14.		The SIP Administrator will have all authority to approve continuation, modification or elimination of the Plan based upon a review of actual results.