AMENDED & RESTATED EMPLOYMENT
AGREEMENT
This Amended &
Restated Employment Agreement (“ Agreement ”) is
entered into as of December 31, 2008, but is effective as of
November 1, 2008 (the “ Effective Date ”),
by and between The Shaw Group Inc., a Louisiana corporation
(collectively with its affiliates and subsidiaries hereinafter
referred to as, the “ Company ”), and George P.
Bevan (“ Employee ”). The Company and Employee
may hereinafter be referred to, individually, as a “
Party ” and, collectively, as the “
Parties ”.
WHEREAS ,
the Company and Employee are parties to that certain Employment
Agreement dated as of December 5, 2007 (the “
Original Agreement ”); and
WHEREAS ,
the Company and Employee desire to amend certain provisions of the
Original Agreement and to restate the Original Agreement in its
entirety.
NOW,
THEREFORE , in consideration of the mutual covenants,
representations, warranties and agreements set forth herein, and
for other valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Parties hereby agree as
follows:
1.
Employment . The Company hereby continues to employ
Employee, and Employee hereby agrees to continued employment by the
Company, on the terms and conditions set forth in this
Agreement.
2. Term
of Employment . Subject to the provisions for earlier
termination set forth in this Agreement, the term of this Agreement
(the “ Term ”) shall be two years commencing on
the Effective Date and shall be automatically renewed on each day
following the Effective Date so that on any given day
the
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unexpired
portion of the Term of this Agreement shall be two years.
Notwithstanding the foregoing provision, at any time after the
Effective Date, the Company or Employee may give written notice to
the other Party that the Term shall not be further renewed from and
after a subsequent date specified in such notice (the “
fixed term date ”), in which event the Term shall
become fixed, and this Agreement shall terminate on the second
anniversary of such fixed term date.
(a) During
the Term, Employee shall serve as President of the Environmental
& Infrastructure Group of the Company, or such other similar
position(s) as the Chief Executive Officer of the Company may
direct from time to time, with such duties and responsibilities as
may from time to time be assigned to him by the Board of Directors
of the Company (the “ Board ”) or the Chief
Executive Officer of the Company, provided that such duties are
comparable to the customary duties and responsibilities of such
position(s).
(b) Employee
agrees to devote Employee’s full attention and time during
normal business hours to the business and affairs of the Company
and to use reasonable best efforts to perform faithfully and
efficiently Employee’s duties and responsibilities. Employee
shall not, either directly or indirectly, enter into any business
or employment with or for any Person (defined below) other than the
Company during the Term; provided , however , that
Employee shall not be prohibited from making financial investments
in any other company or business or from serving on the board of
directors of any other company, subject in each case to the
provisions set forth in the Nonsolicitation and Noncompete
Agreement (defined below) and the Company’s Code of Conduct
or similar guidelines of which
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Employee is
notified in writing. For the purposes of this Agreement, the term
“Person” shall mean any individual, corporation,
limited or general partnership, limited liability company, joint
venture, association, trust or other entity or organization,
whether or not a legal entity. Employee shall at all times observe
and comply with all lawful directions and instructions of the Board
of which Employee is notified in writing.
(a)
Base Compensation . For services rendered by Employee under
this Agreement, the Company shall pay to Employee a base salary
(“ Base Compensation ”) of $500,000 per year,
payable in accordance with the Company’s customary pay
periods and subject to tax and other customary withholdings.
Employee’s Base Compensation will be subject to review by the
Board on an annual basis as of the close of each fiscal year of the
Company and may be increased as the Board may deem appropriate. In
the event that the Board deems it appropriate to increase
Employee’s Base Compensation, that increased amount shall
thereafter be the Base Compensation for the purposes of this
Agreement. Employee’s Base Compensation, as increased from
time to time, may not be decreased unless agreed to by Employee.
Nothing contained herein shall prevent the Board from paying
additional compensation to Employee in the form of bonuses or
otherwise during the Term.
(b)
Annual Bonus . During the Term, Employee shall participate
in the Company’s discretionary management incentive program
as established by the Board (as the same may be amended from time
to time) with an annual performance bonus range of 0-200% of
Employee’s bonus target (the “ Bonus
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Target ”), which Bonus Target shall initially be
an amount equal to 80% of Employee’s Base Compensation. The
Bonus Target may be adjusted annually. Annual bonus payments will
be subject to tax and other customary withholdings.
(c)
Long Term Incentive Awards .
(i)
Employee will be eligible to participate in the Company’s
discretionary Long Term Incentive (defined below) plan(s) as
established by the Board (as the same may be amended from time to
time), subject to the terms and conditions of the applicable
plan(s). All Long Term Incentives that are to be settled by the
delivery of shares are subject to shareholder approval of shares to
be allocated to of the Company’s Long Term Incentive plan(s)
and are granted under the strict purview of the Compensation
Committee of the Board.
(ii)
Notwithstanding any provision to the contrary in the plan(s)
governing such Long Term Incentives, in the event that this
Agreement is terminated by Employee pursuant to
Section 7(a)(ii), (iv) or (v) or by the Company
pursuant to Section 7(a)(iii)(A) (other than for Misconduct)
or (iii)(D), Employee shall have not less than one year from the
Date of Termination in which to exercise all Long Term Incentives
granted to Employee by the Company on or before the Date of
Termination (including any Long Term Incentives that become vested
pursuant to Section 7 of this Agreement); provided that
in no event shall such one year period extend the vesting period
for any Long Term Incentives beyond the date that is 10 years
from the date of grant of such Long Term Incentives.
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5.
Additional Benefits . In addition to the compensation
provided for in Section 4, Employee shall be entitled to the
following:
(a) Business
Expenses . The Company shall, in accordance with any rules and
policies that it may establish from time to time for its executive
officers, reimburse Employee for business expenses reasonably
incurred in the performance of Employee’s duties. It is
understood that Employee is authorized to incur reasonable business
expenses for promoting the business of the Company, including
reasonable expenditures for travel, lodging, meals and client or
business associate entertainment. Requests for reimbursement for
such expenses must be accompanied by appropriate
documentation.
(b)
Vacation . During the Term, Employee shall be entitled to
four weeks of vacation per year, without any loss of compensation
or benefits. Employee shall be entitled to carry forward any unused
vacation time. At the end of the Term, Employee shall be paid for
any unused vacation time based on his Base Compensation in effect
for the last contract year of the Term.
(c) General
Benefits . Employee shall be entitled to participate in
(i) the various employee benefit plans or programs provided to
the employees of the Company in general, including, but not limited
to, health (including ExecuCare), dental, disability, 401k,
accident and life insurance plans, and (ii) the Flexible
Perquisites Plan, which is reserved for selected executives and
provides reimbursement for a choice of certain benefits of 4% of
Employee’s Base Compensation in each calendar year. (A menu
of available
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benefits will
be provided.) Benefits are subject to the eligibility requirements
with respect to each of such benefit plans or programs and such
other benefits or perquisites as may be approved by the Board
during the Term. Nothing in this Section 5(c) shall be deemed to
prohibit the Company from making any changes in, or elimination of,
any of the benefit plans or programs described in this
Section 5(c), provided the change similarly affects all
executive officers of the Company that are similarly
situated.
6.
Confidentiality; Nonsolicitation and Noncompete .
(a) Employee
hereby acknowledges that the Company possesses certain Confidential
Information (defined below) that is peculiar to the businesses in
which the Company is or may be engaged. Employee hereby affirms
that such Confidential Information is the exclusive property of the
Company and that the Company has proprietary interests in such
Confidential information. For the purposes of this Agreement, the
term “ Confidential Information ” shall mean any
and all information of any nature and in any form that at the time
or times concerned is not generally known to Persons (other than
the Company) that are engaged in businesses similar to that
conducted or contemplated by the Company (other than by the act or
acts of an employee not authorized by the Company to disclose such
information) which may include, without limitation, the
Company’s existing and contemplated products and services;
the Company’s purchasing, accounting, marketing and
merchandising methods or practices; the Company’s development
data, theories of application and/or methodologies; the
Company’s customer/client contact and/or supplier information
files; the Company’s existing and contemplated policies
and/or business strategy; any and all samples and/or
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materials
submitted to Employee by the Company; and any and all directly and
indirectly related records, documents, specifications, data and
other information with respect thereto. For the purposes of this
Agreement, “Confidential Information” shall not include
(i) information, knowledge or data that, through no fault of
Employee, becomes publicly available or (ii) information,
knowledge or data acquired from, or published by, third parties
that have no direct or indirect confidentiality obligation to the
Company. Employee further acknowledges by signing this Agreement
that the Company has expended much time, cost and difficulty in
developing and maintaining the Company’s
customers.
(b) Employee
shall (i) use the Confidential Information solely for the
purpose of performing Employee’s duties on behalf of the
Company and for no other purpose whatsoever, (ii) not,
directly or indirectly, at any time during or after
Employee’s employment by the Company, disclose Confidential
Information to any other Person (except to the Company’s
officers in connection with Employee’s duties on behalf of
the Company) or use or otherwise exploit Confidential Information
to the detriment of the Company, and (iii) not lecture on or
publish articles with respect to Confidential Information without
the prior written consent of the General Counsel of the Company. In
the event of a breach or threatened breach of the provisions of
this Section 6(b), the Company shall be entitled, in addition
to any other remedies available to the Company, to an injunction
restraining Employee from disclosing such Confidential
Information.
(c) Upon
termination of employment of Employee for whatever reason, Employee
shall surrender to the Company any and all documents, manuals,
correspondence, reports, records and similar items that have
or
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thereafter come
into the possession of Employee that contain any Confidential
Information; provided , however , that the Company
will provide Employee reasonable access to such Confidential
Information to the extent required by Employee in connection with
the defense of any cause of action, dispute, proceeding or
investigation made or initiated against Employee by any Person
other than the Company related to the employment of Employee by the
Company or the performance by Employee of its duties and
responsibilities in the course of such employment.
(d) Employee
agrees that, as part of the consideration for this Agreement and as
an integral part hereof, Employee has executed, delivered and
agreed to be bound by the Nonsolicitation and Noncompete Agreement
attached hereto as Exhibit A , as well as any
subsequent addenda thereto executed by the Company and
Employee.
(a) This
Agreement may be terminated prior to expiration of the Term only
under the terms and conditions set forth below:
(i)
Resignation (other than for Good Reason) . Employee may
resign Employee’s position at any time, including by reason
of retirement, by providing written notice of resignation to the
Company. In the event of such resignation (except in the case of
resignation for Good Reason (defined in Section 7(a)(iv)
below)), this Agreement shall terminate on the Date of Termination
(defined Section 7(c) below), and Employee shall not be entitled to
further compensation pursuant to this Agreement other than the
payment of any Base Compensation and General Benefits (e.g.,
unused
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vacation,
unreimbursed business expenses, etc.) accrued and unpaid as of the
Date of Termination and the retention of any and all option shares,
restricted shares or units or other similar awards granted to
Employee by the Company under any long term incentive plan(s) duly
adopted by the Board (“ Long Term Incentives ”)
that have vested or become exercisable on or before the Date of
Termination in accordance with the plans governing such Long Term
Incentives (which Long Term Incentives remain subject to, and must
thereafter be exercised in accordance with, the plan(s) governing
such Long Term Incentives).
(ii)
Death . If Employee’s employment is terminated due to
Employee’s death, not later than 30 days after
Employee’s death, the Company shall pay to Employee’s
surviving spouse or estate, subject to tax and other customary
withholdings, (A) any Base Compensation and General Benefits
accrued and unpaid as of the date of Employee’s death, and
(B) a lump sum amount, in cash, equal to to the cost for
Employee to obtain one year of paid group health and dental
insurance benefits Employee’s spouse and dependents that are
substantially similar to those that Employee’s surviving
spouse and dependents were receiving immediately prior to
Employee’s death. Notwithstanding any provision to the
contrary in the plan(s) governing such Long Term Incentives,
Employee, as of the date of his death, shall also become
immediately and totally vested in any and all Long Term Incentives
granted to Employee by the Company prior to the Date of Termination
that have not previously vested in full. After all payments,
benefits and vesting of Long Term Incentives specified under this
Section
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7(a)(ii) have
been paid or performed, this Agreement shall terminate, and the
Company shall have no obligations to Employee, Employee’s
spouse and dependents or Employee’s legal representatives
with respect to this Agreement.
(A)
The Company may terminate Employee’s employment for any
reason at any time upon written notice delivered to Employee in
accordance with Section 7(b).
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