EMPLOYMENT AGREEMENT
Exhibit 10.40
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the
20th day of November, 2007 (the “Effective Date”), between Integrated Service Company
LLC, an Oklahoma limited liability company (the “Employer”), and Xxxxxxx X. Xxxxxx (the
“Executive”).
RECITALS
WHEREAS, the Executive is currently employed by the Employer as a Senior Vice President; and
WHEREAS, the Executive is a shareholder of the Employer; and
WHEREAS, on the Effective Date, Willbros USA, Inc., a Delaware corporation (“Willbros”), is
purchasing all outstanding shares of limited liability company membership interest of the Employer
(“Shares”), which purchase includes all of the business and goodwill of the Employer (the “Purchase
Transaction”); and
WHEREAS, the Executive is selling his Shares to Willbros pursuant to the Purchase Transaction;
and
WHEREAS, a condition of the Purchase Transaction is the Executive’s agreement to remain
employed by the Employer for a specified term and to forego business competition with the Employer
for the term of this Agreement as set forth herein; and
WHEREAS, the Executive has agreed to forego other business opportunities and to continue his
employment with the Employer following the closing of the Purchase Transaction;
NOW, THEREFORE, in consideration of the mutual covenants and representations contained herein,
and the mutual benefits derived herefrom, the parties agree as follows:
ARTICLE I
FULL-TIME EMPLOYMENT OF EXECUTIVE
FULL-TIME EMPLOYMENT OF EXECUTIVE
1.1 DUTIES AND STATUS.
(a) The Employer hereby engages the Executive as a full-time employee for the period specified
in Section 3.1 below (the “Employment Period”), and the Executive accepts such employment, on the
terms and conditions set forth in this Agreement.
(b) The Executive shall serve in a management capacity and shall perform such duties and
responsibilities as may be assigned from time to time by the Employer. He shall report to Xxxx
XxXxxxx, or such other officer of the Employer as the President or board of managers of the
Employer shall designate.
(c) Throughout the Employment Period, the Executive shall devote substantially all his full
time and efforts to the business of the Employer and shall not engage in consulting work or any
trade or business for his own account or for or on behalf of any other person, firm or entity which
competes, conflicts or interferes with the performance of his duties under this Agreement in any
way; provided, however, nothing contained herein will prevent the Executive from serving on the
board of directors of any company that does not compete with the Employer, or from serving on the
board of directors of any charitable or philanthropic organization.
(d) Except for reasonable business travel, the Executive shall be required to perform the
services and duties provided for in this Section 1.1 only at the principal offices of the Employer
in the Tulsa, Oklahoma, metropolitan area.
1.2 COMPENSATION AND GENERAL BENEFITS. The Executive shall be compensated as follows:
(a) Beginning on the Effective Date, and throughout the balance of calendar year 2007, the
Employer shall pay the Executive a base salary in the amount of Two Hundred Thirty-Two Thousand
Four Hundred Dollars ($232,400) per year. Beginning January 1, 2008, and throughout the balance of
the Employment Period, the Employer shall pay the Executive a base salary in the amount of Two
Hundred Fifty-Seven Thousand Two Hundred Dollars ($257,200) per year. The Executive will be
eligible for increases in such base salary during the Employment Period based on merit as
determined by the Employer. Such salary shall be payable in periodic equal installments pursuant
to the Employer’s payroll policy covering management employees.
(b) Throughout the Employment Period, the Executive shall be entitled to participate in such
vacation, retirement, bonus, disability, life, sickness, accident, dental, medical and health
benefits and other employee benefit programs, plans and arrangements of the Employer which are in
effect for senior management employees on the Effective Date, and in any successor or amended
employee benefit programs, plans or arrangements which may be established by the Employer.
1.3 BONUS. The Executive shall be eligible for participation in the Willbros
Management Incentive Plan, as amended from time to time.
1.4 RESTRICTED STOCK AWARD. In consideration of the Executive foregoing other
business opportunities and agreeing to accept employment with the Employer and to perform the
services described in this Agreement, and provided, that, at the 2008 annual meeting of the
stockholders of Willbros Group, Inc. (“WGI”), such stockholders approve an amendment to the WGI
1996 Stock Plan (the “Plan”) to provide for an increase in the number
of shares of common stock available for issuance under the Plan, that the board of directors
of WGI shall recommend, the Executive will be awarded 20,000 shares of common stock, par value $.05
per share (“common stock”) of WGI (such shares of common stock, the “restricted stock shares”)
promptly following such annual meeting, subject to (i) all of the terms and provisions of the Plan
as amended, (ii) the Executive’s execution and delivery of a Restricted Stock Award Agreement
substantially in the form of Exhibit A attached hereto (the “Restricted Stock Award Agreement”),
and (iii) Section 3.3 below. The Executive’s Restricted Stock Award will fully vest, and all
applicable restrictions on such shares will automatically lapse on the date that is three (3) years
from the Effective Date.
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ARTICLE II
COMPETITION AND CONFIDENTIAL INFORMATION
COMPETITION AND CONFIDENTIAL INFORMATION
2.1 COMPETITION AND CONFIDENTIAL INFORMATION. The Executive has had access to and has
acquired, will have access to and will acquire, and has assisted in and may assist in developing,
confidential and proprietary information relating to the business and operations of the Employer
and its affiliates, including but not limited to information with respect to present and
prospective business plans, financing arrangements, marketing plans, customer and supplier lists,
contracts and proposals.
The Executive acknowledges that such information has been and will continue to be of central
importance to the business of the Employer and its affiliates and that disclosure or use by others
could cause substantial loss to the Employer and its affiliates. The Executive and the Employer
also recognize that an important part of the Executive’s duties have been, and will continue to be,
to develop goodwill for the Employer and its affiliates through his personal contact with vendors,
customers, subcontractors, and others sharing business relationships with the Employer and its
affiliates, and that there is a danger that this goodwill, a proprietary asset of the Employer and
its affiliates, may follow the Executive if and when his employment relationship with the Employer
is terminated.
The Executive accordingly agrees that, during the Employment Period and for any period during
which the Executive is receiving payments pursuant to Section 3.3(a), below, the Executive will
not, either individually or as owner, partner, agent, employee, or consultant, engage in any
activity competitive with the Employer or any of its affiliates and will not on his own behalf or
that or any third party directly or indirectly hire, discuss employment with, or recommend to any
third party the employment of any employee of the Employer or any of its affiliates who was
actively employed by the Employer or an affiliate on the Effective Date without regard to whether
that employee has subsequently terminated his or her employment with the Employer.
In the event that the Employment Period terminates pursuant to Sections 3.2(b) (d) or (e),
below prior to the end of the three-year term of this Agreement, Executive agrees that he will not,
for the remaining term of this Agreement individually or as owner, partner, agent, employee, or
consultant of another entity, solicit directly or indirectly business of the nature engaged in by
the Employer from a current customer of the Employer or a former customer of the Employer with
which the Executive has dealt on behalf of the Employer, or on his own
behalf or that of a third party, hire, discuss employment with, or recommend to any third party the
employment of any employee of the Employer, or any of its affiliates, who was actively employed by
the Employer or an affiliate on the Effective Date without regard to whether that employee has
subsequently terminated his or her employment with the Employer.
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Nothing in this Article shall be construed to prevent the Executive from owning, as an
investment, not more than one percent (1%) of a class of equity securities issued by any issuer and
publicly traded and registered under Section 12 of the Securities Exchange Act of 1934.
2.2 NON-DISCLOSURE. At all times after the Effective Date, the Executive will keep
confidential any confidential or proprietary information of the Employer and its affiliates which
is now known to him or which hereafter may become known to him as a result of his employment or
association with the Employer and shall not at any time directly or indirectly disclose any such
information to any person, firm or employer, or use the same in any way other than in connection
with the business of the Employer and its affiliates, or pursuant to any duly issued court order or
subpoena. For purposes of this Agreement, “confidential or proprietary information” means
information unique to the Employer and its affiliates which has a significant business purpose and
is not known or generally available from sources outside the Employer and its affiliates. This
Section 2.2 shall survive the termination of this Agreement for whatever reason.
2.3 REMEDIES FOR BREACH. It is recognized that damages in the event of a breach of
this Article II by the Executive would be difficult, if not impossible, to ascertain, and it is
therefore agreed that, if such breach occurs, the Employer, in addition to and without limiting any
other remedy or right it may have, shall have the right to an injunction or other equitable relief,
in any court of competent jurisdiction, enjoining any such breach, and the Executive hereby waives
any and all defenses he may have on the ground of lack of jurisdiction or competence of the court
to grant such an injunction or other equitable relief. The existence of this right shall not
preclude any other rights and remedies at law or equity which the Employer may have.
2.4 TERMINATION FOR GOOD REASON. If the Executive should terminate his employment
with the Employer for Good Reason (as defined in Section 3.4(c) below), then the non-compete and
non-solicitation restrictions of this Article II shall be canceled; provided, however, in such
event the confidentiality and non-disclosure obligations of this Article II shall continue in full
force and effect in accordance with their terms.
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ARTICLE III
EMPLOYMENT PERIOD
EMPLOYMENT PERIOD
3.1 DURATION. The term of this Agreement shall commence on the Effective Date and
shall terminate on the third annual anniversary thereof. The “Employment Period” shall be
contemporaneous with the term of this Agreement, unless terminated early in conformity with Section
3.2 below.
3.2 EARLY EMPLOYMENT TERMINATION. The Employment Period shall be terminated prior to
the end of this Agreement for any of the following reasons or upon the occurrence of any of the
following events:
(a) Termination of the Executive’s employment by the Employer without cause (as defined in
Section 3.4(a) below); or
(b) Discharge of the Executive for cause; or
(c) Death of the Executive; or
(d) Total disability of the Executive (as defined in Section 3.4(b) below); or
(e) Voluntary resignation of the Executive; or
(f) Voluntary resignation of the Executive for Good Reason.
3.3 COMPENSATION AND/OR BENEFITS FOLLOWING EARLY EMPLOYMENT TERMINATION.
(a) In the event of an early termination of the Employment Period due to the Employer’s
involuntary termination of the Executive’s employment without cause, the Employer shall pay the
Executive an amount equal to his base salary at the rate specified in Section 1.2(a) above or his
base salary in effect immediately before the involuntary termination, whichever is greater, for the
period representing the remainder of the term of this Agreement. Any payment made to Executive
pursuant to this Section 3.3(a) shall be paid in the same manner as Executive’s base salary during
the period of employment; provided, however, the first such payment shall be made to the Executive
within ten (10) days after the date of such termination, and shall equal seven twelfths (7/12’s) of
the Executive’s annual salary specified in Section 1.2(a) above. The second payment shall be made
to the Executive on the date that is eight (8) months after such termination date and shall equal
one twelfth (1/12) of the Executive’s annual salary specified in Section 1.2(a) above. All
remaining post-termination payments shall be made monthly on the day of the month on which the
Executive’s employment was terminated, each such payment in an amount equal to one twelfth (1/12)
of the Executive’s annual salary specified in Section 1.2(a) above, until the expiration of the
term of this Agreement. Each payment under this Section 3.3(a) shall be deemed to be a separate
payment for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and
applicable Treasury guidance thereunder.
(b) In the event of an early termination of the Employment Period because of the voluntary
resignation (whether or not for Good Reason), total disability or death of the Executive, or
termination of the Executive’s employment for cause, the Executive, or his estate in the event of
his death, will receive his base salary at the rate specified in Section 1.2(a) above only through
the date of employment termination.
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(c) In the event of an early termination of this Agreement other than pursuant to Section
3.2(b), 3.2(e) or 3.2(f) above, all restrictions shall lapse on the restricted stock shares awarded
pursuant to Section 1.4 above and the Plan, and such award shall immediately vest. With respect to
such vesting of the restricted stock shares, in the event of any discrepancy between the
definitions in Section 3.4(a) or Section 3.4(b) below and the Plan and the Restricted Stock Award
Agreement, the Plan and the Restricted Stock Award Agreement shall govern.
(d) In the event of an early termination of the Employment Period, the Employer shall pay to
the Executive all accrued but unpaid vacation pay, bonuses or other compensation earned by the
Executive prior to the date of termination.
3.4 DEFINITIONS. The following words shall have the specified meanings when used in
the Sections specified:
(a) As used in Sections 3.2(a), 3.2(b) and 3.3(b) above, the term “cause” means (i) willful
and continued non-performance of his job responsibilities, after the Executive has been provided
written notice of such nonperformance, counseling and a reasonable time period, not less than three
months, has passed without substantial correction of such nonperformance, (ii) the Executive’s
conviction for a felony, (iii) proven or admitted fraud, misappropriation, theft or embezzlement by
the Executive, (iv) the Executive’s inebriation or use of illegal drugs in the course of, related
to or connected with the business of the Employer, (v) the Executive’s willful engaging in
misconduct that is materially injurious to the Employer or its affiliates, monetarily or otherwise,
or (vi) the breach by the Executive of his obligations under Sections 2.1 and 2.2 above.
(b) As used in Sections 3.2(d) and 3.3(b) above, the term “total disability” means a physical
or mental condition which causes the Executive to be unable to perform substantially all of the
duties of his position hereunder for a period of six consecutive months or more as reasonably
determined by the Employer.
(c) As used in Sections 2.4, 3.2(f) and 3.3(b) above, the term “for Good Reason” means any of
the following: (a) the Employer’s material breach of this Agreement; (b) the assignment of the
Executive without his consent to a position, responsibilities or duties of a materially lesser
status or degree of responsibility than his position, responsibilities or duties at the Effective
Date; (c) the requirement by the Employer that the Executive be based anywhere other than as set
forth in Section 1.1(d) above; or (d) a reduction in the Executive’s base salary from that in
effect at the Effective Date.
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ARTICLE IV
NOTICES
NOTICES
Any notices requests, demands and other communications provided for by this Agreement shall be
sufficient if in writing and if sent by registered or certified mail to the Executive at
the last address he has filed in writing with the Employer or, in the case of the Employer, at its
principal offices.
ARTICLE V
MISCELLANEOUS
MISCELLANEOUS
5.1 ENTIRE AGREEMENT. This Agreement, the Share Purchase Agreement executed to
evidence the Purchase Transaction, the Restricted Stock Award Agreement and the Management
Incentive Plan constitute the entire understanding of the Executive and the Employer with respect
to the subject matter hereof, and supersede any and all prior understandings on the subjects
contained herein, written or oral.
5.2 MODIFICATION. This Agreement shall not be varied, altered, modified, canceled,
changed, or in any way amended, nor any provision hereof waived, except by mutual agreement of the
parties in a written instrument executed by the parties hereto or their legal representatives.
Nothing in this Agreement shall affect the Employer’s and its affiliates’ rights to amend or
terminate any of its employee benefit plans, as permitted under applicable law and the respective
terms of such plans.
5.3 SEVERABILITY. In the event that any provision or portion of this Agreement shall
be determined to be invalid or unenforceable for any reason, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and effect, provided, that if
the unenforceability of any provision is because of the breadth of its scope, the duration of such
provision or the geographical area covered thereby, the parties agree that such provision shall be
amended, as determined by the court, so as to reduce the breadth of the scope or the duration
and/or geographical area of such provision such that, in its reduced form, said provision shall
then be enforceable.
5.4 GOVERNING LAW AND VENUE. The provisions of this Agreement shall be construed and
enforced in accordance with the laws of the State of Texas, without regard to any otherwise
applicable principles of conflicts of laws. The parties further agree that any dispute arising
from this Agreement shall be submitted to and determined by a court of general jurisdiction sitting
in Tulsa County, Oklahoma.
[Signatures on next page]
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IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the date first
above written.
| INTEGRATED SERVICE COMPANY LLC |
||||
| By: | /s/ Xxxx X. XxXxxxx | |||
| Name: | Xxxx X. XxXxxxx | |||
| Its: President | ||||
| EXECUTIVE |
||||
| /s/ Xxxxxxx X. Xxxxxx | ||||
| Xxxxxxx X. Xxxxxx | ||||
EXHIBIT “A”
Restricted Stock Award Agreement
Restricted Stock Award Agreement
WILLBROS GROUP, INC.
RESTRICTED STOCK AWARD AGREEMENT
[DATE]
[Name]
[Address]
[Address]
[Address]
[Address]
Dear :
1. Restricted Stock Award. Willbros Group, Inc., a Republic of
Panama corporation (the “Company”), hereby grants to you an aggregate of
_____
shares of Common
Stock, par value $.05 per share, of the Company (the “Restricted Shares”). This award is subject to
your acceptance of and agreement to all of the applicable terms, conditions, and restrictions
described in the Company’s 1996 Stock Plan, as amended (the “Plan”), a copy of which, along with
the Prospectus for the Plan, are attached hereto, and to your acceptance of and agreement to the
further terms, conditions, and restrictions described in this Restricted Stock Award Agreement
(this “Award Agreement”). To the extent that any provision of this Award Agreement conflicts with
the expressly applicable terms of the Plan, it is hereby acknowledged and agreed that those terms
of the Plan shall control and, if necessary, the applicable provisions of this Award Agreement
shall be hereby deemed amended so as to carry out the purpose and intent of the Plan.
2. Possession of Certificates. The Company shall issue a certificate or certificates
for the Restricted Shares in your name and shall retain the certificate(s) for the period during
which the restrictions described in Section 4(b) are in effect. You shall execute and deliver to
the Company a stock power or stock powers in blank for the Restricted Shares. You hereby agree that
the Company shall hold the certificate(s) for the Restricted Shares and the related stock power(s)
pursuant to the terms of this Award Agreement until such time as the restrictions described in
Section 4(b) lapse as described in Section 5 or the Restricted Shares are canceled pursuant to the
terms of Section 4(b).
3. Ownership of Restricted Shares. You shall be entitled to all the rights of
absolute ownership of the Restricted Shares, including the right to vote such shares and to receive
dividends therefrom if, as, and when declared by the Company’s Board of Directors, subject,
however, to the terms, conditions, and restrictions described in the Plan and in this Award
Agreement.
4. Restrictions.
(a) Your ownership of the Restricted Shares shall be subject to the restrictions set forth in
subsection (b) of this Section until such restrictions lapse pursuant to the terms of Section 5, at
which time the Restricted Shares shall no longer be subject to the applicable restrictions.
(b) The restrictions referred to in subsection (a) of this Section are
as follows:
(1) At the time of your “Termination of Employment” (as defined in Section 10(b)), other than
a Termination of Employment that occurs as a result of an event described in Section 5(b)(1) or a
Termination of Employment that is described in Section 5(b)(2), you shall forfeit the Restricted
Shares to the Company and all of your rights thereto shall terminate without any payment of
consideration by the Company. If you forfeit any Restricted Shares and your interest therein
terminates pursuant to this paragraph, such Restricted Shares shall be canceled.
(2) You may not sell, assign, transfer, pledge, hypothecate, or otherwise dispose of the
Restricted Shares.
5. Lapse of Restrictions.
(a) The restrictions described in Section 4(b) shall lapse with respect to all of the
Restricted Shares on the third anniversary of the effective date of the employment agreement
between Integrated Service Company LLC and you. Following the lapse of such restrictions with
respect to any Restricted Shares, such Restricted Shares shall no longer be subject to the
restrictions described in Section 4(b).
(b) Notwithstanding the provisions of subsection (a) of this Section, the restrictions
described in Section 4(b) shall lapse with respect to all the Restricted Shares at the time of the
occurrence of any of the following events:
(1) Your death, “Disability” (as defined in the Plan) or “Retirement” (as defined in Section
10(c));
(2) Your Termination of Employment, but only if such Termination of Employment is the result
of a dismissal or other action by the Company or any of its Subsidiaries and does not constitute a
“Termination for Cause” (as defined in Section 10(a)); or
(3) A “Change of Control” (as defined in the Plan) of the Company.
6. Agreement With Respect to Taxes; Share Withholding.
(a) You agree that (1) you will pay to the Company or a Subsidiary, as the case may be, or
make arrangements satisfactory to the Company or such Subsidiary regarding the payment of any
foreign, federal, state, or local taxes of any kind required by law to be withheld by the Company
or any of its Subsidiaries with respect to the Restricted Shares, and (2) the Company or any of its
Subsidiaries shall, to the extent permitted by law, have the right to deduct from any payments of
any kind otherwise due to you any foreign, federal, state, or local taxes of any kind required by
law to be withheld with respect to the Restricted Shares.
(b) With respect to withholding required upon the lapse of restrictions or upon any other
taxable event arising as a result of the Restricted Shares awarded, you may elect, subject to the
approval of the committee of the Board of Directors of the Company that administers the Plan, to
satisfy the withholding requirement, in whole or in part, by having the Company withhold Restricted
Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum
statutory total tax which could be withheld on the transaction. All such elections shall be
irrevocable, made in writing, signed by you, and shall be subject to any restrictions or
limitations that such committee, in its sole discretion, deems appropriate.
7. Adjustment of Shares. The number of Restricted Shares subject to this Award
Agreement shall be adjusted as provided in Section 13 of the Plan. Any shares or other securities
received by you as a stock dividend on, or as a result of stock splits, combinations, exchanges of
shares, reorganizations, mergers, consolidations or otherwise with respect to the Restricted Shares
shall have the same terms, conditions and restrictions and bear the same legend as the Restricted
Shares.
8. Agreement With Respect to Securities Matters. You agree that you will not sell or
otherwise transfer any Restricted Shares except pursuant to an effective registration statement
under the U.S. Securities Act of 1933, as amended, or pursuant to an applicable exemption from such
registration.
9. Restrictive Legend. You hereby acknowledge that the certificate(s) for the
Restricted Shares will bear a conspicuous legend referring to the terms, conditions, and
restrictions described in the Plan and this Award Agreement. Any attempt to dispose of any
Restricted Shares in contravention of the terms, conditions, and restrictions described in the Plan
or this Award Agreement shall be ineffective.
10. Certain Definitions. As used in this Award Agreement, the following terms shall
have the respective meanings indicated:
(a) “Termination for Cause” shall mean a Termination of Employment as a result of (1) your
willful and continued failure substantially to perform your duties (other than any such failure
resulting from your incapacity due to physical or mental illness), (2) your conviction for a
felony, proven or admitted fraud, misappropriation, theft or embezzlement by you, your inebriation
or use of illegal drugs in the course of, related to or connected with the business of the Company
or any of its Subsidiaries, or your willful
engaging in misconduct that is materially injurious to the Company or any of its Subsidiaries,
monetarily or otherwise, or (3) if you have entered into an employment agreement or contract with
the Company or any of its Subsidiaries, any other action or omission that is identified in such
agreement or contract as giving rise to “Cause” for the termination of your employment with the
Company or any of its Subsidiaries. For this purpose, no act, or failure to act, on your part shall
be considered “willful” unless done, or omitted, by you not in good faith and without reasonable
belief that your action or omission was in the best interest of the Company or any of its
Subsidiaries.
(b) “Termination of Employment” shall mean the termination of your full-time employment with
the Company or any of its Subsidiaries for any reason other than your death, Disability or
Retirement.
(c) “Retirement” shall mean the voluntary termination of your full-time employment with the
Company or any of its Subsidiaries after you are at least 62 years of age and have a minimum of
four consecutive years of continuous service with the Company or any of its Subsidiaries.
Capitalized terms used in this Award Agreement and not otherwise defined herein shall have the
respective meanings provided in the Plan.
If you accept this Restricted Stock Award and agree to the foregoing terms and conditions,
please so confirm by signing and returning the duplicate copy of this Award Agreement enclosed for
that purpose.
| WILLBROS GROUP, INC. | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
The foregoing Restricted Stock Award is accepted by me as of the
_____
day of ,
_____, and I hereby agree to the terms, conditions, and restrictions set forth above and in the
Plan.
| [Name] | ||||
THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this “Amendment Agreement”) is made and entered
into as of the 31st day of December, 2008, by and between Integrated Service Company LLC, an
Oklahoma limited liability company (the “Company”), and Xxxxxxx X. Xxxxxx (the “Executive”).
RECITALS
WHEREAS, on November 20, 2007, the Executive and the Company entered into an Employment
Agreement (the “Employment Agreement”) (terms used herein and not defined herein shall have the
meanings ascribed to them in the Employment Agreement); and
WHEREAS, in connection with the Employment Agreement, while the operational requirements of
Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”), have
been strictly followed, pursuant to Treasury Regulations and notices issued by the Department of
the Treasury, the Company and the Executive have until December 31, 2008, to cause the Employment
Agreement to conform to the documentary requirements of Section 409A and Treasury Regulations
issued thereunder for those benefits that constitute deferred compensation subject to Section 409A;
and
WHEREAS, the Company and the Executive wish to conform the Employment Agreement to the
documentary requirements of Section 409A for those benefits that constitute deferred compensation
subject to Section 409A;
NOW THEREFORE, in consideration of the mutual covenants and representations contained herein,
and the mutual benefits derived herefrom, the parties agree as follows:
1. Amendment: A new Section 3.3(e) is added to the Employment Agreement, to
wit:
“3.3(e) Notwithstanding anything else in this Agreement, any payments to be made or
benefits granted (including the lapse of restrictions on the restricted stock shares
awarded pursuant to Section 1.4) under this Agreement to the Executive upon his termination
of employment with the Company, and the timing of such payments or grant of such benefits,
shall be made or granted only at such time the Executive shall have realized a “separation
from service” (as such term is defined in Treasury Regulations prescribed under Section
409A of the Code) with the Company and all entities which would be included with the
Company as the “service recipient” under the definition of such term in such Treasury
Regulations.”
2. Entire Agreement. This Amendment Agreement constitutes the entire understanding of
the Executive and the Company with respect to the subject matter hereof and supersedes any and all
prior understandings on the subjects contained herein, written or oral, and all amendments.
3. Modification. Except as provided in the following two sentences, this Amendment
Agreement shall not be varied, altered, modified, canceled, changed, or in any way amended, nor any
provision hereof waived, except by mutual agreement of the parties in a written instrument executed
by the parties hereto or their legal representatives.
4. Severability. In the event that any provision or portion of this Amendment
Agreement shall be determined to be invalid or unenforceable for any reason, the remaining
provisions of this Amendment Agreement shall be unaffected thereby and shall remain in full force
and effect.
5. Governing Law. The provisions of this Amendment Agreement shall be construed and
enforced in accordance with the laws of the State of Texas, without regard to any otherwise
applicable principles of conflicts of laws.
IN WITNESS WHEREOF, the parties have executed and delivered this Amendment Agreement on the
date first above written.
| INTEGRATED SERVICE COMPANY LLC |
||||
| By: | /s/ Xxxxxx X. Xxxxxxxxx | |||
| Name: | Xxxxxx X. Xxxxxxxxx | |||
| Its: Authorized Representative | ||||
| EXECUTIVE |
||||
| /s/ Xxxxxxx X. Xxxxxx | ||||
| Xxxxxxx X. Xxxxxx | ||||
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