Exhibit 10.18
EMPLOYMENT
AGREEMENT
BETWEEN
Primoris
Corporation
AND
Alfons
Theeuwes
February 18,
2008
EMPLOYMENT
AGREEMENT
THIS EMPLOYMENT AGREEMENT is made and entered
into as of February 18, 2006, and effective as of the Closing Date
(as hereinafter defined), by and among Primoris Corporation, a
Nevada corporation (the “ Employer ”), and
Alfons Theeuwes (the “ Employee ”).
WHEREAS, pursuant to that certain Agreement And
Plan of Merger By And Among Rhapsody Acquisition Corp., Primoris
Corporation and the Shareholders of Primoris Corporation dated on
or about February 19, 2008 (“the Merger Agreement”), a
closing date for the consummation of a prospective merger is
defined therein (“the Closing Date”);
WHEREAS, the Employer desires to employ the
Employee, and the Employee desires to accept such employment, on
the terms and subject to the conditions hereinafter set
forth;
NOW, THEREFORE, in consideration of the
covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows.
Generally, defined terms used in this Agreement
are defined in the first instance in which they appear herein. In
addition, the following terms and phrases shall have the following
meanings:
“ Board ” shall mean the
board of directors of Employer.
“ Business Day ” shall mean
any day that is not a Saturday, Sunday, or a day on which banking
institutions in California are not required to be open.
“ Cause ” shall mean the
Employee’s:
(i) failure to devote
substantially all his working time to the business of Employer and
its Affiliates and Subsidiaries;
(ii) willful disregard of
his duties, or his intentional failure to act where the taking of
such action would be in the ordinary course of the Employee’s
duties hereunder;
(iii) gross negligence or willful
misconduct in the performance of his duties hereunder;
(iv) commission of any act of fraud,
theft or financial dishonesty, or any felony or criminal act
involving moral turpitude; or
(v) unlawful use (including
being under the influence) of alcohol or drugs or possession of
illegal drugs while on the premises of the Employer or any of its
Affiliates or while performing duties and responsibilities to the
Employer and its Affiliates.
“ Confidential Information ”
shall mean all proprietary and other information relating to the
business and operations of Employer, which has not been
specifically designated for release to the public by an authorized
representative of Employer, including, but not limited to the
following: (i) information, observations, procedures and data
concerning the business or affairs of Employer; (ii) products or
services; (iii) costs and pricing structures; (iv) analyses; (v)
drawings, photographs and reports; (vi) computer software,
including operating systems, applications and program listings;
(vii) flow charts, manuals and documentation; (viii) data bases;
(ix) accounting and business methods; (x) inventions, devices, new
developments, methods and processes, whether patentable or
unpatentable and whether or not reduced to practice; (xi)
customers, vendors, suppliers and customer, vendor and supplier
lists; (xii) other copyrightable works; (xiii) all production
methods, processes, technology and trade secrets and (xiv) all
similar and related information in whatever form. Confidential
Information will not include any information that has been
published in a form generally available to the public prior to the
date the Employee proposes to disclose or use such information.
Confidential Information will not be deemed to have been published
merely because individual portions of the information have been
separately published, but only if all material features comprising
such information have been published in combination.
“ Disability ” shall mean the
Employee’s inability, due to physical or mental illness or
disability, to perform the essential functions of his employment
with the Employer, even with reasonable accommodation that does not
impose an undue hardship on the Employer, for more than sixty (60)
consecutive days, or for any ninety (90) days within any one year
period, unless a longer period is required by federal or state law,
in which case such longer period will be applicable. The Employer
reserves the right, in good faith, to make the determination of
Disability under this Agreement based on information supplied by
the Employee and/or his medical personnel, as well as information
from medical personnel selected by the Employer or its
insurers.
“ Employer ” shall mean
Primoris Corporation and any of its Subsidiaries.
“ Person ” shall be construed
broadly and shall include, without limitation, an individual, a
partnership, an investment fund, a limited liability company, a
corporation, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization and a governmental
entity or any department, agency or political subdivision
thereof.
“ Subsidiary ” or “
Subsidiaries ” shall have the meaning as defined in
the Merger Agreement.
“ Termination Date ” shall
mean the effective date of the termination of the Employee’s
employment hereunder, which (i) in the case of termination by
resignation, shall mean the date that is ninety (90) days following
the date of the Employee’s written notice to the Employer of
his resignation; provided, however, that the Employer may
accelerate the Termination Date; (ii) in the case of termination by
reason of death shall mean the date of death; (iii) in the case of
termination by reason of Disability, shall mean the date specified
in the notice of such termination delivered to the Employee by the
Employer; (iv) in the case of a Termination for Cause or a
Termination without Cause, shall mean the date specified in the
written notice of such termination delivered to the Employee by the
Employer; (iv) in the case of termination by mutual agreement shall
mean the date mutually agreed to by the parties hereto and (v) in
the case of nonrenewal, shall mean the expiration of the Employment
Period.
a. Initial
Term. The Employer shall employ the Employee, and the Employee
accepts employment with the Employer, upon the terms and conditions
set forth in this Agreement. The initial term of this Agreement
(the “ Initial Term ”) shall be for a period of
five (5) years commencing on the date hereof, unless terminated
earlier pursuant to Article 5 hereof; provided, however, that
Employee’s obligations in Article 11 and Article 12 hereof
shall continue in effect after such termination.
b. Additional
Terms. This Agreement may be extended beyond the Initial Term
upon the mutual consent and agreement of Employee and Employer. The
Initial Term and additional terms, if any, shall collectively be
referred to herein as the “Employment
Period”.
During the Employment Period, the Employee shall
serve as the Vice President of Accounting and Finance, reporting to
the Board, and shall have the usual and customary duties,
responsibilities and authority of such position. In addition,
during the Employment Period, if elected or appointed thereto,
shall serve as an officer and/or member of the board of any
Subsidiary of Employer as reasonably requested by the Employer and
its Subsidiaries, in each case, without additional compensation
hereunder. The Employee hereby accepts such employment and
positions and agrees to diligently and conscientiously devote his
full and exclusive business time, attention, and best efforts in
discharging and fulfilling his duties and responsibilities
hereunder. The Employee shall comply with the Employer’s
policies and procedures and the direction and instruction of the
Board and the Employee shall not engage in any business activity
which, in the reasonable judgment of the Board, conflicts with the
duties of the Employee hereunder, whether or not such activity is
pursued for gain, profit or other pecuniary advantage.
(a)
Salary . During the Employment Period, the
Employer shall pay the Employee base salary (the “ Base
Salary ”) at the rate of Two Hundred Seventy Five
Thousand Dollars ($275,000) per annum, payable in equal
installments twice monthly on Employer’s regular payroll
dates, less applicable deductions and withholdings.
(b) Performance
Bonus . In addition to the Base Salary, during the
Employment Period the Employee shall be eligible to receive a cash
bonus (the “ Bonus ”) with respect to each
calendar year as of the last day of which the Employee is employed
by the Employer. The amount of the Bonus, if any, payable in
respect of any calendar year will be determined at the sole
discretion of Employer by the Board or compensation committee of
the Board (the “ Compensation Committee ”). The
Bonus, if any, payable with respect to a calendar year shall be
paid within thirty (30) days following the rendering of
Employer’s audited financial statements for the relevant
calendar year.
(c) Benefits and
Perquisites . In addition to the Base Salary, Employee
shall be entitled to all other benefits of employment provided to
other employees of Employer; provided, however, that during the
term of this Agreement Employee shall be entitled to three (3)
weeks of vacation per annum. Additional benefits and perquisites
will be provided subject to Employer’s policies and practices
in effect and then in place at the Closing Date, and the terms of
applicable benefit plans and arrangements as in effect from time to
time.
(d)
Reimbursements . The Employer shall
reimburse the Employee for all reasonable and necessary
business-related expenses incurred by him in the course of
performing his duties under this Agreement which are consistent
with Employer’s policies and practices in effect and then in
place at the Closing Date, including travel, entertainment and
other business expenses, subject to the Employer’s
requirements with respect to reporting and documentation of such
expenses.
(e) Deductions and
Withholding . The Employer shall deduct from any
payments to be made by it to or on behalf of the Employee under
this Agreement any amounts required to be withheld in respect of
any federal, state or local income or other taxes.
(f) Annual Review
of Base Salary . The Board (or the Compensation
Committee) shall undertake a review of the Base Salary not less
frequently than annually during the Employment Period and may
increase, but not decrease, the rate of Base Salary from the rate
then in effect.
(g) Use of Employer
Aircraft . In addition to all business related uses of
any aircraft owned or leased by Employer during the Employment
Period, Employee shall be entitled to use of said aircraft up to
twenty (20) hours during each calendar year hereunder.
|
|
Termination of Employment
.
|
The Employee’s employment under this
Agreement shall be terminated upon the earliest to occur of the
following events:
(a)
Termination for Cause . The Employer may in
its sole discretion terminate this Agreement and the
Employee’s employment hereunder for Cause at any time and
with or without advance notice to the Employee.
(b) Termination
without Cause . The Employer may terminate this
Agreement and the Employee’s employment hereunder without
Cause at any time, with or without notice, for any reason or no
reason (and no reason need be given).
(c) Mutual
Agreement . This Agreement and the Employee’s
employment hereunder may be terminated by the mutual written
agreement of the Employer and the Employee.
(d)
Termination by Death or Disability . This
Agreement and the Employee’s employment hereunder shall
automatically terminate upon the Employee’s death or
Disability.
(e)
Resignation . The Employee may terminate
this Agreement and his employment hereunder upon ninety (90) days
advance written notice to the Employer.
(f)
Nonrenewal . In the event either party does
not elect to renew the term of this Agreement, this Agreement and
the Employee’s employment hereunder shall automatically
terminate as of the expiration of the current term in
effect.
|
|
Compensation upon
Termination
|
(a)
General . In the event of the
Employee’s termination of employment for any reason, the
Employee or his estate or beneficiaries shall have the right to
receive the following:
(i) the unpaid portion
of the Base Salary and paid time off accrued and payable through
the Termination Date;
(ii) reimbursement for any
expenses for which the Employee shall not have been previously
reimbursed, as provided in Section 4(d); and
(iii) continuation of health
insurance coverage rights, if any, as required under applicable
law.
(b) Termination for
Cause, Resignation, Mutual Agreement or Nonrenewal .
In the event of the Employee’s termination of employment by
reason of (i) Termination for Cause, (ii) Resignation, (iii) Mutual
Agreement or (iv) Nonrenewal, the Employer shall have no current or
further obligations (including Base Salary) to the Employee under
this Agreement other than as set forth in Section 6(a).
(c) Termination
without Cause or by Death or Disability . Subject to
Section 6(d), in the event of the Employee’s termination of
employment hereunder by reason of (i) Termination without Cause or
(ii) death or Disability, the Employee shall be entitled to the
following (the “ Severance Benefits
”):
(i) a lump sum equal to
one-half of the annual Base Salary in effect upon the Termination
Date, payable within fifteen (15) days following the Termination
Date;
(ii) a pro rata amount of a
Bonus, if any, which would have been payable to the Employee for
the calendar year in which the Termination Date occurs, determined
after the end of the calendar year in which such Termination Date
occurs and equal to the amount which would have been payable to the
Employee if his employment had not been terminated during such
calendar year multiplied by the fraction, the numerator of which is
the number of whole months the Employee was employed by the
Employer during such calendar year and the denominator of which is
12. Any pro rata bonus payable under this Section 6(c)(ii) shall be
paid in a lump sum at the time bonuses for such calendar year are
otherwise payable to senior executives of the Employer;
and
(iii) in the event that the
Employee elects COBRA benefits, the Employer shall pay the
Employee’s share of the premium for such COBRA benefits until
the earlier of (i) one year after the Termination Date; or (ii) the
date that Employee obtains comparable health benefits through new
employment.
(d) General
Release . Notwithstanding any provision to the
contrary in this Agreement, the foregoing Severance Benefits under
Section 6(c) shall not apply and the Employer shall have no
obligations to pay or provide any Severance Benefits (other than
upon the Employee’s termination of employment by reason of
death), unless the Employee signs, delivers and does not rescind or
revoke a general release, substantially in the form attached hereto
as Exhibit A, of all known and unknown claims of the Employee (and
his affiliates, successors, heirs and assigns and the like) against
Employer and the Board.
(e) The rights of the
Employee set forth in this Section 6 are intended to be the
Employee’s exclusive remedy for termination and, to the
greatest extent permitted by applicable law, the Employee waives
all other remedies.
Employer may, for its own benefit, maintain
“key man” life and disability insurance policies
covering the Employee. The Employee will cooperate with Employer
and provide such information or other assistance as they may
reasonably request in connection with obtaining and maintaining
such policies.
During the term of this Agreement, the Employee
will not accept or perform any work, consulting, or other services
for any other business entity or for remuneration of any kind,
without written approval by the Board.
|
|
The
Employee’s Termination Obligations
.
|
The Employee hereby acknowledges and agrees that
all personal property and equipment furnished to or prepared by the
Employee in the course of or incident to his employment hereunder
belongs to Employer and shall be promptly returned to Employer upon
termination of the Employee’s employment. The term “
personal property ” includes, without limitation, all
office equipment, laptop computers, cell phones, books, manuals,
records, reports, notes, contracts, requests for proposals, bids,
lists, blueprints, and other documents, or materials, or copies
thereof (including computer files), and all other proprietary and
non-proprietary information relating to the business of Employer.
Following termination of his employment hereunder, the Employee
will not retain any written or other tangible material containing
any proprietary or non-proprietary information of
Employer.
|
|
Acknowledgment of Protectable
Interests .
|
The Employee acknowledges and agrees that his
employment with Employer involves building and maintaining business
relationships and good will on behalf of the Employer with
customers, and other professional contractors, subcontractors,
employees and staff, and various providers and users of services
related to Employer’s business; that he is entrusted with
proprietary, strategic and other confidential information which is
of special value to Employer; and that the foregoing matters are
significant interests which the Employer is entitled to
protect.