Exhibit 10.1
EMPLOYMENT
AGREEMENT
BETWEEN
Primoris Services
Corporation
AND
Peter J. Moerbeek
February 6,
2009
EMPLOYMENT
AGREEMENT
THIS EMPLOYMENT AGREEMENT is made
and entered into as of February 6, 2009, by and among
Primoris Services Corporation, a Delaware corporation (the “
Employer ”), and Peter J. Moerbeek (the “
Employee ”).
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.
1.
Definitions
.
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, except as
otherwise approved pursuant to paragraph 8;
(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 Services 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.
“ 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.
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2.
Employment
.
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”.
3.
Position
and Duties
.
During the Employment Period, the
Employee shall serve as the Executive Vice President, Chief
Financial Officer, reporting to Employer’s Chief Executive
Officer, 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.
4.
Compensation
(a)
Salary
. During the Employment Period, the Employer shall pay the
Employee base salary (the “ Base Salary ”) at
the rate of Three Hundred Fifty Thousand Dollars ($350,000) per
annum, payable in equal installments twice monthly on
Employer’s regular payroll dates, less applicable deductions
and withholdings. Within ten (10) days from the effective date
of this Agreement, Employer shall pay Employee a one-time signing
bonus in the sum of Twenty Thousand Dollars ($20,000), 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.
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(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.
5.
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.
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(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.
6.
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.
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(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.
7.
Insurance
.
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.
8.
Exclusive
Services
.
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 Employer’s Chief
Executive Officer.
9.
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.
10.
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
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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.
11.
Confidential
Information
.
(a)
The Employee agrees that all Confidential Information that comes or
has come into his possession by reason of his employment hereunder
is the property of the Employer and shall not be used except in the
course of employment by Employer and for Employer’s exclusive
benefit. Further, the Employee shall not, during his
employment or thereafter, disclose or acknowledge the content of
any Confidential Information to any person who is not an employee
of Employer authorized to possess such Confidential
Information. Upon termination of employment, the Employee
shall deliver to Employer all documents, writings, electronic
storage devices, and other tangible things containing any
Confidential Information and the Employee shall not make or retain
copies, excerpts, or notes of such information.
(b)
Employee is aware that Employer is confident of its ability to
compete on the basis of its own products and commitment to service,
and Employee understands that Employer does not desire to obtain or
make use of any trade secrets or confidential information (if any)
that Employee may have acquired during any former employment with
Ni America Capital Mangement, LLC, a Delaware Limite