RENEWAL — EMPLOYMENT AGREEMENT
Exhibit 10.1
THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of August 3, 2006, by
and between MASTEC, INC., a Florida corporation (the “Company”), and C. XXXXXX XXXXXXXX
(“Employee”).
Recitals
The Company desires to employ Employee and Employee desires to be employed by the Company on
the terms and subject to the conditions set forth in this Agreement.
Accordingly, in consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and adequacy of which are
acknowledged, the Company and Employee agree as follows:
Terms
1. Employment. The Company employs Employee and Employee accepts such employment and
agrees to perform the services specified in this Agreement, upon the terms and subject to the
conditions set forth in this Agreement.
2. Term.
a. General. The term of Employee’s employment under this Agreement will be effective
as of August 3, 2006 (the “Effective Date”) and will be run from the Effective Date to and through
August 15, 2009, unless earlier terminated in accordance with this Agreement (the “Term”).
b. Renewal. The Company shall advise the Employee of the Company’s intention to renew
or extend Employee’s employment by February 15, 2009. If the Company advises the Employee that the
Company intends to renew or extend Employee’s employment, the parties shall execute a renewed,
extended or replacement Employment Agreement within thirty (30) days from the date the Company
advises Employee that the Company intends to renew or extend Employee’s employment. If the Company
advises the Employee that the Company does not intend to renew or extend Employee’s employment,
Employee, on completion of the initial Term set out in Section 2(a), shall be entitled to severance
as set out in Section 11(f) herein.
3. Duties.
a. Position. During the Term, Employee will serve as Executive Vice President and
Chief Financial Officer of the Company. Subject to the direction of the Chief Executive Officer
(CEO), Employee will perform all duties commensurate with his position and as may otherwise be
assigned to him by the CEO or the Board of Directors of the Company. If requested by the Company,
Employee will serve as an officer or director of any subsidiary of the Company, without additional
compensation. If asked to serve as an officer or director of a subsidiary of the Company, Employee
will be provided those officer and director indemnifications provided to other officers and
directors of the Company and any such subsidiary.
b. Full Time and Attention. During the Term, Employee will devote his full business
time and energies to the business and affairs of the Company and will use his best efforts, skills
and abilities solely to promote the interests of the Company and to diligently and competently
perform his duties, all in a manner in compliance with all applicable laws and regulations and in
accordance with applicable policies and procedures adopted or amended from time to time by the
Company, including, without limitation, the Company’s Employee Handbook and the
Company’s
Personal Responsibility Code, copies of which Employee acknowledges having received.
Notwithstanding the foregoing, Employee may serve as a director on two and not more than two boards
of directors of other companies, so long as such service does not interfere with Employee’s
performance of Employee’s duties to the Company. Employee’s primary place of employment shall be
at the Company’s primary place of business in Miami-Dade County, Florida; however, Employee agrees
and acknowledges that a material part of the time devoted to his duties and position hereunder will
require that Employee travel on behalf of the Company.
4. Compensation and Benefits.
a. Base Salary. During the Term, Employee will be paid, as compensation for services
rendered pursuant to this Agreement and Employee’s observance and performance of all of the
provisions of this Agreement, the amount of Three Hundred and Eighty Five Thousand and No/100
Dollars ($385,000.00) per annum (the “Base Salary”). The Base Salary will be payable in
accordance with the normal payroll procedures of the Company as in effect from time to time.
b. Benefits. During the Term, Employee will be entitled to participate in or benefit
from, in accordance with the eligibility and other provisions thereof, such life, health, medical,
accident, dental and disability insurance, use of a Company car, and such other benefit plans as
the Company may make generally available to, or have in effect for, other employees of the Company
at the same general level as Employee. The Company retains the right to terminate or amend any
such plans from time to time in its sole discretion.
c. Performance Bonus. Employee shall be entitled to participate in the Company’s
bonus plan for senior management (the “SMBP”) and shall be eligible to receive an annual
bonus (“Performance Bonus”) in an amount up to one hundred percent (100%) of Employee’s Base
Salary.
d. Stock Options. Employee shall receive options to purchase fifty thousand (50,000)
shares of common stock of the Company priced as of the date of execution of this Agreement and
vesting 33% on the first anniversary, 33% on the second anniversary and 34% on the third
anniversary of the Effective Date and Employee shall receive options to purchase an additional
twenty five thousand (25,000) shares of common stock of the Company priced as of the date of
execution of this Agreement and vesting 20% on the first anniversary, 20% on the second
anniversary, 20% on the third anniversary, 20% on the fourth anniversary and 20% on the fifth
anniversary of the Effective Date (the “Options”). So long as the Employee is not
terminated for Cause, as defined in Section 11c, options shall continue to vest during any
Period of Non-Competition provided the Employee honors his obligations set forth in Section 8
and thereafter as necessary until fully vested. The Options, once vested, shall remain
exercisable by Employee for the full ten (10) year term from date of grant permitted under the
applicable MasTec, Inc. Employee Stock Incentive Plan. The options will be subject to the
terms and conditions of the MasTec, Inc. Employee Stock Incentive Plan, as they may be amended
from time to time in the Company’s sole discretion.
e. Expenses. The Company will reimburse Employee, in accordance with the Company’s
expense reimbursement policies as may be established from time to time by the Company, for all
reasonable travel and other expenses actually incurred or paid by him during the Term in the
performance of his services under this Agreement, upon presentation of expense statements or
vouchers or such other supporting information as the Company may require.
f. Withholding. All payments under this Agreement will be subject to applicable taxes
and required withholdings.
5. Representations of Employee. Employee represents and warrants that he is not (i)
a party to any enforceable employment agreement or other arrangement, whether written or oral, with
any past employer, that would prevent or restrict Employee’s employment with the Company; (ii) a
party to or bound by any agreement, obligation or commitment, or subject to any restriction,
including, but not limited to, confidentiality agreements, restrictive covenants or non-compete and
non-solicitation covenants, except for agreements with the Company or its affiliates; or (iii)
involved with any professional endeavors which in the future may possibly adversely affect or
interfere with the business of the Company, the full performance by Employee of his duties under
this Agreement or the exercise of his best efforts hereunder.
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6. Confidentiality.
a. Confidentiality of this Agreement. Employee acknowledges that the provisions of
this Agreement are highly confidential and that disclosure of this Agreement or its terms would be
extremely prejudicial to the Company. Accordingly, neither the Company nor Employee will disclose
the terms of this Agreement to any other person or entity (other than immediate family and
financial and legal advisors with a need-to-know and who agree to the confidentiality provisions of
this Agreement) without the prior written consent of the other party, except that (i) the Company
may disclose this Agreement or its terms if in the reasonable opinion of counsel for the Company
such disclosure is required by applicable law or regulation; and, (ii) Employee may disclose this
Agreement in court filings or pleadings by Employee to enforce its terms and conditions or as
otherwise may be necessary to comply with the requirements of law, after providing the Company with
not less than five (5) days prior written notice of Employee’s intent to disclose.
b. Confidential Information. Employee acknowledges that as a result of his employment
with the Company, Employee will gain knowledge of, and access to, proprietary and confidential
information and trade secrets of the Company and its subsidiaries and affiliates, including,
without limitation, (1) the identity of customers, suppliers, subcontractors and others with whom
they do business; (2) their marketing methods and strategies; (3) contract terms, pricing, margin,
cost information and other information regarding the relationship between them and the persons and
entities with which they have contracted; (4) their services, products, software, technology,
developments, improvements and methods of operation; (5) their results of operations, financial
condition, projected financial performance, sales and profit performance and financial
requirements; (6) the identity of and compensation paid to their employees, including Employee; (7)
their business plans, models or strategies and the information contained therein; (8) their
sources, leads or methods of obtaining new business; and (9) all other confidential information of,
about or concerning the business of the Company and its subsidiaries and affiliates (collectively,
the “Confidential Information”). Employee further acknowledges that such information, even
though it may be contributed, developed or acquired by Employee, and whether or not the foregoing
information is actually novel or unique or is actually known by others, constitutes valuable assets
of the Company developed at great expense which are the exclusive property of the Company or its
subsidiaries and affiliates. Accordingly, Employee will not, at any time, either during or
subsequent to the Term, in any fashion, form or manner, directly or indirectly, (i) use, divulge,
disclose, communicate, provide or permit access to any person or entity, any Confidential
Information of any kind, nature or description, or (ii) remove from the Company’s or its
subsidiaries’ or affiliates’ premises any notes or records relating thereto, or copies or
facsimiles thereof (whether made by electronic, electrical, magnetic, optical, laser acoustic or
other means) except in the case of both (i) and (ii), (A) as reasonably required in the performance
of his services to the Company under this Agreement, (B) to responsible officers and employees of
the Company who are in a contractual or fiduciary relationship with the Company and who have a need
for such information for purposes in the best interests of the Company, (C) for such information
which is or becomes generally available to the public other than as a result of an unauthorized
disclosure by Employee, and (D) or as otherwise necessary to comply with the requirements of law,
after providing the Company with not less than five (5) days prior written notice of Employee’s
intent to disclose. Employee acknowledges that the Company would not enter into this Agreement
without the assurance that all Confidential Information will be used for the exclusive benefit of
the Company.
c. Return of Confidential Information. Upon request by the Company, Employee will
promptly deliver to the Company all drawings, manuals, letters, notes, notebooks, reports and
copies thereof, including all originals and copies contained in computer hard drives or other
electronic or machine readable format, all Confidential Information and other materials relating to
the Company’s business, including, without limitation, any materials incorporating Confidential
Information, which are in Employee’s possession or control.
7. Intellectual Property. Any and all material eligible for copyright or trademark
protection and any and all ideas and inventions (“Intellectual Property”), whether or not
patentable, in any such case solely or jointly made, developed, conceived or reduced to practice by
Employee (whether at the request or suggestion of any officer or employee of the Company or
otherwise, whether alone or in conjunction with others, and whether during regular hours of work or
otherwise) during the Term which arise from the fulfillment of Employee’s duties hereunder and
which may be directly or indirectly useful in the business of the Company will be promptly and
fully disclosed in writing to the Company. The Company will have the entire right, title and
interest (both domestic and foreign) in and to such Intellectual Property, which is the sole
property of the Company. All papers, drawings, models, data and other materials relating to
any such idea, material or invention will be included in the definition of
Confidential Information, will remain the sole property of the Company, and Employee will return to
the Company all such papers, and all copies thereof, including all originals and copies contained
in computer hard drives or other electronic or machine readable format, upon
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the earlier of the Company’s request therefore, or the expiration or termination of Employee’s employment hereunder.
Employee will execute, acknowledge and deliver to the Company any and all further assignments,
contracts or other instruments the Company deems necessary or expedient, without further
compensation, to carry out and effectuate the intents and purposes of this Agreement and to vest in
the Company each and all of the rights of the Company in the Intellectual Property.
8. Covenants.
a. Non-Competition — and Non-Solicitation. Employee acknowledges and agrees that
the Company’s and its subsidiary and affiliated companies’ (collectively, the “Companies”)
existing or contemplated businesses (the “Business”) are conducted throughout the United
States of America and the Commonwealth of Canada. Until one (1) year following the date of the
termination of Employee’s employment with the Company (the “Period of Non-Competition”) and
within the United States of America and the Commonwealth of Canada (including their possessions,
protectorates and territories, the “Territory”), Employee will not (whether or not then employed by
the Company for any reason), without the Company’s prior written consent:
(i) directly or indirectly own, manage, operate, control, be employed by, act as agent,
consultant or advisor for, or participate in the ownership, management, operation or control of, or
be connected in any manner through the investment of capital, lending of money or property,
rendering of services or otherwise, with, any business of the type and character engaged in and
competitive with the Business. For these purposes, ownership of securities of one percent (1%) or
less of any class of securities of a public company will not be considered to be competition with
the Business;
(ii) solicit, persuade or attempt to solicit or persuade or cause or authorize directly or
indirectly to be solicited or persuaded any existing customer or client, or potential customer or
client to which the Companies have made a presentation or with which the Companies have been having
discussions, to cease doing business with or decrease the amount of business done with or not to
hire the Companies, or to commence doing Business with or increase the amount of Business done with
or hire another company;
(iii) solicit, persuade or attempt to solicit or persuade or cause or authorize directly or
indirectly to be solicited or persuaded the business of any person or entity that is a customer or
client of the Companies, or was their customer or client within two (2) years prior to cessation of
Employee’s employment by any of the Companies or any of their subsidiaries, for the purpose of
competing with the Business; or
(iv) solicit, persuade or attempt to solicit or persuade, or cause or authorize directly or
indirectly to be solicited or persuaded for employment, or employ or cause or authorize directly or
indirectly to be employed, on behalf of Employee or any other person or entity, any individual who
is or was at any time within six (6) months prior to cessation of Employee’s employment by the
Companies, an employee of any of the Companies.
If Employee breaches or violates any of the provisions of this Section 8, the running
of the Period of Non-Competition (but not of any of Employee’s obligations under this Section
8) will be tolled with respect to Employee during the continuance of any actual breach or
violation. In addition to any other rights or remedies the Company may have under this Agreement
or applicable law, the Company will be entitled to receive from Employee reimbursement for all
attorneys’ and paralegal fees and expenses and court costs incurred by the Companies in enforcing
this Agreement and will have the right and remedy to require Employee to account for and pay over
to the Company all compensation, profits, monies, accruals or other benefits derived or received,
directly or indirectly, by Employee from the action constituting a breach or violation of this
Section 8.
b. Exceptions. Telecommunications operators (such as Sprint, MCI, AT&T) cable
companies and other non construction or installation customers of the Company shall not be
considered engaged in and competitive with the Business.
9. Reasonable Restrictions. The parties acknowledge and agree that the restrictions
set forth in Sections 6, 7 and 8 of this Agreement are reasonable
for the purpose of protecting the value of the business and goodwill of the Companies. It is the
desire and intent of the parties that the provisions of Sections 6, 7 and
8 be enforced to the fullest extent permissible under the laws and public policies applied
in each jurisdiction in which enforcement is sought. If any particular provisions or portions of
Sections 6, 7 and 8 are adjudicated to be invalid or unenforceable,
then such section
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will be deemed amended to delete such provision or portion adjudicated to be
invalid or unenforceable; provided, however, that such amendment is to apply only with the respect
to the operation of such section in the particular jurisdiction in which such adjudication is made.
10. Breach or Threatened Breach. The parties acknowledge and agree that the
performance of the obligations under Sections 6, 7 and 8 by Employee are
special, unique and extraordinary in character, and that in the event of the breach or threatened
breach by Employee of the terms and conditions of Sections 6, 7 or 8, the
Companies will suffer irreparable injury and that monetary damages would not provide an adequate
remedy at law and that no remedy at law may exist. Accordingly, in the event of such breach or
threatened breach, the Company will be entitled, if it so elects and without the posting of any
bond or security, to institute and prosecute proceedings in any court of competent jurisdiction, in
law and in equity, to obtain damages for any breach of Sections 6, 7 or 8
or to enforce the specific performance of this Agreement by Employee or to enjoin Employee from
breaching or attempting to breach Sections 6, 7 or 8. In the event the
Company believes that the Employee has breached Employee’s obligations under Sections 6, 7 or
8, or threatens to do so, it shall promptly provide the Employee written notice of such belief
setting forth the basis for its belief and, (unless under exigent circumstances, as determined by
the Company at its sole discretion, it would harm the Company to delay the institution of legal
proceedings) five (5) business days to respond to the notice, prior to the initiation of legal
proceedings.
11. Termination. This Agreement and Employee’s employment under this Agreement may be
terminated upon the occurrence of any of the events described in, and subject to the terms of, this
Section 11:
a. Death. Immediately and automatically upon the death of Employee.
b. Disability. At the Company’s option, immediately upon written notice if Employee
suffers a “permanent disability,” meaning any incapacity, illness or disability of Employee
which renders Employee mentally or physically unable to perform his duties under this Agreement for
a continuous period of sixty (60) days, or one hundred twenty (120) days (whether or not
consecutive), during the Term, as reasonably determined by the Company.
c. Termination for Cause. At the Company’s option, immediately upon notice to
Employee, upon the occurrence of any of the following events (each “Cause”), (i) Employee
being convicted of any felony (whether or not against the Company or its subsidiaries or
affiliates); (ii) a material failure of Employee to perform Employee’s responsibilities after ten
(10) days’ written notice given by an Executive Officer to Employee, which notice shall identify
the Employee’s failure in sufficient detail and grant Employee an opportunity to cure such failure
within such ten (10) day period (“Notice”); (iii) a breach by Employee of any of his obligations
under Sections 6, 7 or 8; (iv) any material act of dishonesty or other misconduct by
Employee against the Company or any of its subsidiaries or affiliates; (v) a material violation by
Employee of any of the policies or procedures of the Company or any of its subsidiaries or
affiliates, including without limitation the Employee Handbook or Personal Responsibility Code,
provided, however, that if such violation is curable, then Employee will be given ten (10) days’
written notice and the opportunity to cure such violation; or (vi) Employee voluntarily terminates
this Agreement or leaves the employ of the Company or its subsidiaries or affiliates for any
reason, other than Good Reason.
d. Termination Without Cause. At the Company’s option for any reason, or no reason,
upon five (5) days’ notice to Employee given by the CEO.
e. Termination with Good Reason. At Employee’s option, upon not less than fifteen
(15) business days’ written notice to the Company, and the Company’s failure to cure within such
fifteen (15) business days, upon the occurrence of any of the following events (each “Good
Reason”) (i) the material diminution of, Employee’s position, duties, titles, offices and
responsibilities with the Company; (ii) a reduction or material delay in payment of Employee’s
compensation and benefits; (iii) a relocation of the Company’s principal executive offices outside
of Miami-Dade or Broward Counties, Florida; or (iv) a breach of any other material provision of
this Agreement by the Company.
f. Payments After Termination. If this Agreement and Employee’s employment hereunder
are terminated for the reasons set forth in Sections 11(a) or 11(b), then Employee
or Employee’s estate will receive the Base Salary and any Performance Bonus earned through the date
of death or disability to which Employee would have been entitled for the year in which the death
or disability occurred in accordance with the terms of this Agreement, and all of Employee’s Stock
Options shall immediately vest. If the Company terminates this Agreement and Employee’s
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employment hereunder for the reasons set forth in Section 11(c)(i-vi), then (i) Employee will receive
his Base Salary through the date of termination and (ii) Employee will forfeit any entitlement that
Employee may have to receive any performance bonus. If this Agreement is terminated for the reason
set forth in Section 11(d) or Section 11(e), then (i) Employee will receive his
Base Salary, and benefits set forth in Section 4(b) hereof (collectively, with the payment of the
Base Salary, the “Severance Benefits”), until the expiration of the Term. If this
Agreement is terminated by reason of the Company’s notice to Employee that the Company does not
intend to renew or extend Employee’s employment, as allowed per Section 2(b), then Employee, on
completion of the initial term of this Agreement, will receive the Severance Benefits for a period
of six (6) months from the last day of the initial term of this Agreement. The Severance Benefits
shall be payable in accordance with the Company’s payroll procedures and subject to applicable
withholdings. Employee will forfeit any entitlement that Employee may have to receive any
performance bonus and, upon payment by the Company of the amounts described in this Section
11(f), Employee will not be entitled to receive any further compensation or benefits from the
Company whatsoever.
g. General. Notwithstanding anything to the contrary set forth in this Agreement, the
provision of payments after termination in accordance with the provisions of Section 11(f)
above, shall not be a bar to the Employee’s continued entitlement from the Company of (i)
reimbursements of proper expenses, (ii) housing, automobile and expense allowances, (iii) vested
benefit and welfare entitlements; (iv) unemployment compensation, (v) workers compensation
benefits, (vi) accrued vacation time (if consistent with Company policy), (vii) Base Salary through
date of termination. Notwithstanding anything in this Agreement to the contrary, if Employee is
employed by the Company for an entire calendar year (e.g., the 2005 calendar year) and is
terminated for any reason prior to the payment of a bonus, if any, the Company hereby agrees to pay
Employee any bonus that he would have otherwise been entitled to hereunder or the SMBP,
simultaneous with the payment of such bonus to the Company’s employees, and (viii) continued
vesting of options as may be provided in accordance with the provisions of this Agreement or any
stock option plan.
Change of Control. If, prior to the completion of the Term, there occurs a Change in
Control, as defined in Exhibit A, then and in that case only, in lieu of any of vesting schedules
previously described in this Agreement, all Employee’s options then outstanding shall immediately
vest. All other provisions of this Agreement shall remain unchanged.
12. Miscellaneous.
a. Survival. The provisions of Sections 6, 7, 8, 10
and 11 will survive the termination or expiration of this Agreement for any reason.
b. Entire Agreement. This Agreement constitutes the entire agreement of the parties
pertaining to its subject matter and supersedes all prior or contemporaneous agreements or
understandings between the parties pertaining to the subject matter of this Agreement, and there
are no promises, agreements, conditions, undertakings, warranties, or representations, whether
written or oral, express or implied, between the parties other than as set forth in this Agreement.
c. Modification. This Agreement may not be amended or modified, or any provision
waived, unless in writing and signed by both parties.
d. Waiver. Failure of a party to enforce one or more of the provisions of this
Agreement or to require at any time performance of any of the obligations of this Agreement will
not be construed to be a waiver of such provisions by such party nor to in any way affect the
validity of this Agreement or such party’s right thereafter to enforce any provision of this
Agreement, nor to preclude such party from taking any other action at any time which it would
legally be entitled to take.
e. Successors and Assigns. This Agreement may not be assigned or the duties delegated
unless in writing and signed by both parties, except for any assignment by the Company occurring by
operation of law. Subject to the foregoing, this Agreement will inure to the benefit of, and be binding upon, the
parties and their heirs, beneficiaries, personal representatives, successors and permitted assigns.
f. Notices. Any notice, demand, consent, agreement, request, or other communication
required or permitted under this Agreement will be in writing and will be, (i) mailed by
first-class mail, registered or certified, return receipt requested, postage prepaid, (ii)
delivered personally by independent courier, or (iii) transmitted by
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facsimile, to the parties at the addresses as follows (or at such other addresses as will be specified by the parties by like
notice):
If to Employee, then to:
C. Xxxxxx Xxxxxxxx
000 Xxxxxxxx Xxx, Xxx. 0000
Xxxxx Xxxxxx, XX 00000
000 Xxxxxxxx Xxx, Xxx. 0000
Xxxxx Xxxxxx, XX 00000
If to the Company, then to:
MasTec, Inc.
000 Xxxxxxx Xxxx, Xxxxx 0000
Xxxxx Xxxxxx, Xxxxxxx 00000
Attn: Legal Department
Facsimile: (000) 000-0000
000 Xxxxxxx Xxxx, Xxxxx 0000
Xxxxx Xxxxxx, Xxxxxxx 00000
Attn: Legal Department
Facsimile: (000) 000-0000
Each party may designate by notice in writing a new address to which any notice, demand, consent,
agreement, request or communication may thereafter be given, served or sent. Each notice, demand,
consent, agreement, request or communication that is mailed, hand delivered or transmitted in the
manner described above will be deemed received for all purposes at such time as it is delivered to
the addressee (with the return receipt, the courier delivery receipt or the telecopier answerback
confirmation being deemed conclusive evidence of such delivery) or at such time as delivery is
refused by the addressee upon presentation.
g. Severability. If any provision of this Agreement is held to be invalid or
unenforceable by a court of competent jurisdiction, then such invalidity or unenforceability will
not affect the validity and enforceability of the other provisions of this Agreement and the
provision held to be invalid or unenforceable will be enforced as nearly as possible according to
its original terms and intent to eliminate such invalidity or unenforceability.
h. Counterparts. This Agreement may be executed in any number of counterparts, and
all counterparts will collectively be deemed to constitute a single binding agreement.
i. Governing Law; Venue. This Agreement will be governed by the laws of the State of
Florida, without regard to its conflicts of law principles. Employee consents to the jurisdiction
of any state or federal court located within Miami-Dade County, State of Florida, and consents that
all service of process may be made by registered or certified mail directed to Employee at the
address stated in Section 13 (f) of this Agreement. Employee waives any objection which
Employee may have based on lack of personal jurisdiction or improper venue or forum non
conveniens to any suit or proceeding instituted by the Company under this Agreement in any
state or federal court located within Miami-Dade County, Florida and consents to the granting of
such legal or equitable relief as is deemed appropriate by the court. This provision is a material
inducement for the Company to enter into this Agreement with Employee.
j. Participation of Parties. The parties acknowledge that this Agreement and all
matters contemplated herein have been negotiated between both of the parties and their respective
legal counsel and that both parties have participated in the drafting and preparation of this
Agreement from the commencement of negotiations at all times through execution. Therefore, the
parties agree that this Agreement will be interpreted and construed without reference to any rule
requiring that this Agreement be interpreted or construed against the party causing it to be
drafted.
k. Injunctive Relief. It is possible that remedies at law may be inadequate and,
therefore, the parties will be entitled to equitable relief including, without limitation,
injunctive relief, specific performance or other equitable remedies in addition to all other
remedies provided hereunder or available to the parties hereto at law or in equity.
l. Waiver of Jury Trial. EACH OF THE COMPANY AND EMPLOYEE IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE
PROVISIONS OF THIS AGREEMENT.
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m. Right of Setoff. The Company will be entitled, in its discretion and in addition
to any other remedies it may have in law or in equity, to set-off against any amounts payable to
Employee under this Agreement or otherwise the amount of any obligations of Employee to the Company
under this Agreement that are not paid by Employee when due. In the event of any such setoff, the
Company will promptly provide the Employee with a written explanation of such setoff, and an
opportunity to register a written protest thereof.
n. Litigation; Prevailing Party. In the event of any litigation, administrative
proceeding, arbitration, mediation or other proceeding with regard to this Agreement, the
prevailing party will be entitled to receive from the non-prevailing party and the non-prevailing
party will pay upon demand all court costs and all reasonable fees and expenses of counsel and
paralegals for the prevailing party.
o. Descriptive Headings. The descriptive headings herein are inserted for convenience
only and are not intended to be part of or to affect the meaning or interpretation of this
Agreement.
p. Compliance with Section 409A: To the extent the Employee would otherwise be
entitled to any payment (whether pursuant to this Agreement or otherwise) during the six months
beginning on termination of employment, that would be subject to the additional tax imposed under
Section 409A of the Code (“Section 409A”), (i) the payment will not be made and (ii) the payment,
with interest at the rate being paid by the Company on its senior credit facility (the “Senior
Credit Interest Rate”) determined as of the date of termination of the Employee’s employment, will
be paid to the Employee on the earlier of the six-month anniversary of the Employee’s date of
termination of employment or the Employee’s death or disability (within the meaning of Section
409A). Similarly, to the extent the Employee otherwise would be entitled to any benefit (other
than a payment) during the six months beginning on termination of employment that would be subject
to the Section 409A additional tax, the benefit will be delayed and will begin being provided
(together, if applicable, with an adjustment to compensate the Employee for the delay) on the
earlier of the six-month anniversary of the date of termination, death or disability (within the
meaning of Section 409A). It is the Company’s intention that the benefits and rights to which the
Employee could become entitled in connection with termination of employment comply with Section
409A. If the Employee or the Company believes, at any time, that any of such benefit or right does
not comply, it will promptly advise the other and will negotiate reasonably and in good faith to
amend the terms of such arrangement such that it complies.
EXECUTED as of the 3rd day of August, 2006.
| EMPLOYEE |
||||
| /s/ C. Xxxxxx Xxxxxxxx | ||||
| C. Xxxxxx Xxxxxxxx | ||||
| MASTEC, INC. |
||||
| By: | /s/Xxxxxx Xxxxxxxxxx | |||
| Xxxxxx Xxxxxxxxxx, Chief Executive Officer | ||||
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EXHIBIT A
“Change in Control” shall mean:
| (a) | Acquisition By Person of Substantial Percentage. The acquisition by a Person (including “affiliates” and “associates” of such Person, but excluding the Company, any “parent” or “subsidiary” of the Company, or any employee benefit plan of the Company) of a sufficient number of shares of the Common Stock, or securities convertible into the Common Stock, and whether through direct acquisition of shares or by merger, consolidation, share exchange, reclassification of securities or recapitalization of or involving the Company or any “parent” or “subsidiary” of the Company, to constitute the Person the actual or beneficial owner of 51% or more of the Common Stock.; | |
| (b) | Disposition of Assets. Any sale, lease, transfer, exchange, mortgage, pledge or other disposition, in one transaction or a series of transactions, of all or substantially all of the assets of the Company or of any “subsidiary” of the Company to a Person described in subsection (a) above, but only if such transaction occurs without approval or ratification by a majority of the members of the Board; or | |
| (c) | Substantial Change of Board Members. During any fiscal year of the Company, individuals who at the beginning of such year constitute the Board cease for any reason to constitute at least a majority thereof, unless the election of each director who was not a director at the beginning of such period has been approved in advance by a majority of the directors in office at the beginning of the fiscal year. |
For purposes of this Section, the terms “affiliate,” “associate,” “parent” and “subsidiary”
shall have the respective meanings ascribed to such terms in Rule 12b-2 under Section 12 of
the 1934 Act.
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