Exhibit 10.7


 










EMPLOYMENT AGREEMENT


THIS EMPLOYMENT AGREEMENT, dated as of
December [●], 2015, by and between SHIMMICK CONSTRUCTION COMPANY, INC., a California corporation (together with its
successors and assigns, the “Company”), and JEFFREY LESSMAN (the “Executive”).


 


W I T
N E S S E T H





 


WHEREAS, the Executive has served as
Executive Vice President of the Company since August 2004; and


 


WHEREAS, the Company has filed a registration
statement with the United States Securities and Exchange Commission for the initial public offering of the Company’s common
stock (the “Offering”); and


 


WHEREAS the Executive and the Company
desire to enter into this Employment Agreement (this “Agreement”), to take effect upon, and only upon, the consummation
of the Offering (the date thereof referred to herein as the “Effective Date”), to provide for the continued
employment of the Executive by the Company upon the terms and conditions set forth herein.


 


NOW, THEREFORE, in consideration of the
mutual covenants and conditions contained herein, the Company and the Executive hereby agree as follows:


 


1.                 
Employment and Term.


 


(a)               
Effective on the Effective Date, the Company shall employ the Executive, and the Executive accepts employment by
the Company, as Executive Vice President upon the terms and conditions set forth herein.


 


(b)              
Subject to Sections 1(c) and (d) and the provisions for termination hereinafter provided in Section 6, the term of
the Executive's employment hereunder shall be from the Effective Date through and including the day immediately preceding the third
anniversary of the Effective Date (the “Initial Period”).


 


(c)               
On the third anniversary of the Effective Date and on each subsequent anniversary of such date (each a “Renewal
Date”), the term of this Agreement shall automatically be extended by one additional calendar year (the “Extension
Period”) unless either party shall have provided notice to the other within the 120 day period prior to a Renewal Date
that such party does not desire to extend the term of this Agreement, in which case no further extension of the term of this Agreement
shall occur pursuant hereto but all previous extensions of the term shall continue to be given full force and effect.






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(d)              
For purposes of this Agreement, subject to the provisions for termination hereinafter provided in Section 6, the
term “Employment Period” means the Initial Period, if the term of this Agreement has not been extended pursuant
to Section 1(c); otherwise, the period beginning on the Effective Date and ending with the last day of the most recently arising
Extension Period. Notwithstanding the foregoing, the Employment Period shall terminate on the applicable date set forth in Section
6 and shall not include any Severance Period (as hereinafter defined).


 


(e)               
Notwithstanding any other provision in this Agreement to the contrary, this Agreement shall terminate in its entirety
and be of no force or effect if the Offering is not consummated on or prior to February 15, 2016 or if the Company should abandon
the Offering before such date.


 


2.                 
Duties.


 


(a)               
Throughout the Employment Period, the Executive shall be the Executive Vice President of the Company reporting directly
to the Chief Executive Officer of the Company and shall have all duties and authorities as customarily exercised by an individual
serving in such position in a company the nature and size of the Company. The Executive shall at all times comply with all written
Company policies applicable to him. During the Employment Period, the Company shall also nominate the Executive for re-election
as a member of the Company’s board of directors Board (the “Board”). The Executive’s primary office
location shall be at the Company’s executive offices in the Oakland, California metropolitan area, but the Executive shall
undertake such travel as is reasonably required for his duties hereunder.


 


(b)              
Throughout the Employment Period, the Executive shall use his best efforts to perform his duties under this Agreement
fully, diligently and faithfully, and shall use his best efforts to promote the interests of the Company and its subsidiaries and
affiliates.


 


(c)               
Executive shall devote substantially all of his business time to the affairs of the Company; provided, however,
that anything herein to the contrary notwithstanding, nothing shall preclude the Executive from (i) with the prior written
consent of the Chief Executive Officer of the Company, which consent will not be unreasonably withheld or delayed, serving on the
boards of directors of other business entities, trade associations and/or charitable organizations, including, without limitation,
the entities where the Executive was serving as a director on the date of this Agreement, (ii) engaging in charitable activities
and community affairs, (iii) managing his personal and/or family investments and affairs, and (iv) engaging in any other activities
approved by the Chief Executive Officer of the Company; provided that the activities described above do not interfere with the
performance of the Executive’s duties and responsibilities to the Company as provided hereunder.


 



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3.                 
Compensation.


 


As compensation for his services to be
performed hereunder and for his acceptance of the responsibilities described herein, the Company agrees to pay the Executive, and
the Executive agrees to accept, the following compensation and other benefits:


 


(a)               
Base Salary. During the Employment Period, the Company shall pay the Executive a salary (the “Base
Salary”) at the rate of $390,000 per annum, payable in equal weekly installments. The Compensation Committee of the Board
shall periodically review such Base Salary and may increase (but not decrease) such Base Salary from time to time, in its sole
discretion. After any increase, “Base Salary” as used in this Agreement shall mean the increased amount.


 


(b)              
Annual Incentive Compensation. During the Employment Period, the Executive shall be eligible to receive annual
cash bonuses under the Company’s Short Term Incentive Plan for the 2015 fiscal year and cash and stock bonuses for the 2016
fiscal year and each fiscal year thereafter in accordance with Schedule A attached hereto (each being, “Annual
Incentive Bonuses”). The fiscal year Target EBITDA amounts set forth on Schedule A year shall be determined by
the Board for fiscal year 2016 on or prior to the date of this Agreement and by the Company’s Compensation Committee for
each fiscal year thereafter taking into account such factors as the Company’s Compensation Committee may deem relevant not
later than 90 days after commencement of such calendar year. Annual Incentive Bonuses shall be paid in accordance with Company
policy, but no later than the date the Company’s Annual Report on Form 10-K is filed for the calendar year to which the Annual
Incentive Bonuses relate.


 


(c)               
Other Incentives. During the Employment Period the Executive shall be entitled to long-term and other incentives
under the Shimmick Incentive Plan, as determined by the Company’s Compensation Committee on a basis consistent with the Executive's
position as Executive Vice President of the Company.


 



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(d)              
Benefit Plans. During the Employment Period and as otherwise provided in Section 6, the Executive shall be
entitled to participate in any and all employee welfare and health benefit plans (including, but not limited to, life insurance,
health and medical, dental and disability plans and the Company’s Shareholder Medical and Dependent Care Reimbursement Plan)
and other employee benefit plans, including but not limited to qualified pension plans and those benefit plans established by the
Company from time to time for the general and overall benefit of the senior executives of the Company on a basis no less favorable
than the basis on which any other senior executive participates; provided that nothing herein contained shall be construed as requiring
the Company to establish or continue any particular benefit plan in discharge of its obligations hereunder.


 


(e)               
Clawback Provisions.  Notwithstanding any other provisions in this Agreement to the contrary, any
incentive-based compensation, or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement
or arrangement with the Company which is subject to recovery under any law, government regulation or stock exchange listing requirement,
will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock
exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange
listing requirement).


 


4.                 
Vacation and Other Benefits.


 


During the Employment Period, the Executive
shall be entitled to not less than six weeks of paid vacation during each calendar year of his employment hereunder, as well as
to such other employment benefits extended or provided to executives of comparable status, including, but not limited to, payment
or reimbursement of all reasonable expenses incurred by the Executive in the performance of his duties and responsibilities. The
Executive shall submit to the Company periodic statements of all expenses so incurred. Subject to such audits as the Company may
deem necessary, the Company shall reimburse the Executive the full amount of any such expenses advanced by him promptly in the
ordinary course. The Executive shall also be entitled to the use of an automobile in accordance with the Company’s fleet
vehicle policy.


 



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5.                 
Executive Covenants.


 


In consideration for the severance provisions
in Section 6 hereof, except as set forth in Section 6(h), and provided that the Company is not in default to the Executive on any
of its material obligations under this Agreement, the Executive agrees as follows:


 


(a)               
Except with the consent of or as directed by the Board or the Chief Executive Officer or otherwise in the ordinary
course of the business of the Company or its subsidiaries or affiliates, the Executive shall keep confidential and not divulge
to any other person, during the Employment Period or thereafter, any business secrets and other confidential information regarding
the Company or its subsidiaries and its affiliates, except for information which is or becomes publicly available or known within
the relevant trade or industry other than as a result of disclosure by the Executive in violation of this Section 5(a) (“Confidential
Information”). Anything herein to the contrary notwithstanding, the provisions of this Section 5(a) shall not apply (i)
when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee
thereof) with apparent jurisdiction to order the Executive to disclose or make accessible any information, (ii) when disclosure
is necessary to resolve an issue raised in good faith in any litigation, arbitration or mediation involving this Agreement or any
other agreement between the Executive and the Company or its subsidiaries and affiliates, including, but not limited to, the enforcement
of such agreements or (iii) when disclosure is required in connection with the Executive’s cooperation pursuant to Section
5(d). If Executive shall be required to make disclosure pursuant to the provisions of clause (i) of the preceding sentence, Executive
promptly, but in no event more than 48 hours after learning of such subpoena, court order, or other government process, shall notify,
confirmed by mail, Company and, at Company’s expense, Executive shall: (a) take all reasonably necessary and lawful steps
required by Company to defend against the enforcement of such subpoena, court order or other government process and (b) permit
Company to intervene and participate with counsel of its choice in any proceeding relating to the enforcement thereof at Company’s
expense.


 


(b)              
All papers, books and records of every kind and description relating to the business and affairs of the Company,
its subsidiaries or its affiliates, whether or not prepared by the Executive are the exclusive property of the Company, and the
Executive shall surrender them to the Company, at any time upon written request of the Board or the Chief Executive Officer, during
or after the Employment Period. Anything to the contrary notwithstanding, the Executive shall be entitled to retain (i) papers
and other materials (including electronic records) of a personal nature, including, but not limited to, photographs, correspondence,
personal diaries, calendars, contact lists and personal files, (ii) information showing his compensation or relating to reimbursement
of expenses, (iii) information that he reasonably believes may be needed for tax purposes and (iv) copies of plans, programs and
agreements relating to his employment, or if applicable, his termination of employment, with the Company or any of its subsidiaries
or affiliates.



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(c)                During
the (i) Employment Period and (ii) during any Severance Period in which the Executive is eligible to receive severance
pursuant to Section 6, and (iii) for a period of 24 months following (a) the voluntary termination of employment by
the Executive (other than for “Good Reason”) or (b) the termination of Executive’s employment by the
Company for “Cause,” the Executive shall not, without the prior written consent of the Board, directly or
indirectly hire, recruit, attempt to hire, solicit or assist others in recruiting or hiring any person who is an executive,
employee, contractor or consultant of the Company or subsidiary or affiliate of the Company (each, a “Restricted
Person”) or induce or attempt to induce any such Restricted Person to terminate, cancel or withdraw his or her
employment or business relationship with, or the provision of his or her services to, the Company or subsidiary or affiliate
of the Company or to take employment with, or utilize the services of, another party other than the Company or a subsidiary
or affiliate of the Company, except as is required in connection with his duties and responsibilities to the Company.


 


(d)              
The Executive hereby agrees to provide reasonable cooperation to the Company, its subsidiaries and affiliates during
the Employment Period and, subject to his other personal and business commitments, any Severance Period, in any litigation, regulatory
action or similar proceeding between the Company, its subsidiaries or affiliates, and third parties.


 


(e)               
The parties agree that the Company shall, in addition to other remedies provided by law, have the right and remedy
to seek to have the provisions of this Section 5 specifically enforced by any court having equity jurisdiction, it being acknowledged
and agreed that any breach or threatened breach by the Executive of the provisions of this Section 5 will cause irreparable injury
to the Company and that money damages will not provide an adequate remedy to the Company. Nothing contained herein shall be construed
as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the
recovery of damages from the Executive.



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(f)               
The Executive agrees and covenants that he will not at any time make, publish or communicate to any person or entity
or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company or its businesses,
or any of its employees, officers, and existing and prospective customers, suppliers, investors and other associated third parties.
This Section 5(g) does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such
rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent
jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation
or order. The Executive shall promptly provide written notice of any such order to the Board and the Chief Executive Officer. The
Company agrees and covenants that it shall cause its executive officers and directors to refrain from making any defamatory or
disparaging remarks, comments or statements concerning the Executive to any third parties.


 


(g)              
The Executive agrees and acknowledges that (i) the scope and period of restrictions set forth herein are fair and
reasonable and are reasonably required for the protection of the Company and its subsidiaries and affiliates, (ii) these covenants
accurately describe the business to which restrictions are intended to apply and (iii) the obligations and restrictions contained
herein are an integral part of the consideration motivating the Company to enter into this Agreement. It is the intent of the parties
that the covenants contained herein will be enforced to the fullest extent permissible under applicable law. If any particular
covenant or portion of these covenants is adjudicated to be invalid or unenforceable, these covenants will be deemed amended to
revise that provision or portion hereof to the minimum extent necessary to render it enforceable. Such amendment will apply only
with respect to the operation of these covenants in the particular jurisdiction in which such adjudication was made.



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6.                 
Termination of Employment Period and Severance.


 


(a)               
Termination by the Company without Cause. Except as provided in Section 6(d) or 6(h), if for any reason the
Company wishes to terminate the Employment Period and the Executive's employment hereunder (including by not extending the term
of this Agreement pursuant to Section 1(c)), (i) the Company shall give the Executive written notice (the “Termination
Notice”) at least 120 days prior to the date of termination set forth in the Termination Notice (the “Termination
Date”) stating such intention, (ii) the Employment Period shall terminate on the Termination Date, and (iii) a severance
period shall commence upon such Termination Date for a period of 12 months (such period, the “Severance Period”).
During the Severance Period, the Executive shall (1) continue to receive the Base Salary under Section 3(a) and to be reimbursed
for any reasonable expenses incurred by the Executive in the performance of any of his continuing obligations hereunder, (2) be
entitled to Annual Incentive Bonuses pursuant to Section 3(b) (which Annual Incentive Bonuses shall be the Annual Incentive Bonuses
paid the Executive for the performance period immediately prior to the year in which the Termination Notice is given and paid on
the last day of the calendar year during the Severance Period) and (3) the Executive and his eligible dependents shall continue
to receive the welfare and health benefits under Section 3(d) (including any benefits under the Company's long-term disability
and life insurance plans) of this Agreement as if the Employment Period continued throughout the Severance Period; provided that
if such plans or programs do not permit the Executive and/or his eligible dependents continued participation, the Company shall
pay the Executive, quarterly, an amount which after-tax will keep him in the same economic position as if he and/or his eligible
dependents had continued in such plans and/or programs. In addition, the Executive shall be entitled to (x) accelerated vesting
upon the Termination Date of all outstanding equity awards, with all outstanding stock options or stock appreciation rights granted
to the Executive remaining exercisable for no less than two years or the remainder of the original term, if shorter, (y) payment
of any earned but unpaid amounts, including bonuses for performance periods that ended prior to the Termination Date and any unreimbursed
business expenses, with such payment made in accordance with Company practices in effect on the date of his termination of employment
and (z) any other rights, benefits or entitlements in accordance with this Agreement or any applicable plan, policy, program, arrangement
of, or other agreement with, the Company or any of its subsidiaries or affiliates.



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(b)              
Death. If the Executive dies during the Employment Period, the Employment Period shall automatically terminate
and the Severance Period described in Section 6(a) hereof shall immediately commence. The Executive's designated beneficiary(ies)
(or his estate in the absence of any surviving designated beneficiary) shall be entitled to the rights, benefits and other entitlements
as set forth in Section 6(a) as if the Executive's employment had been terminated by the Company without Cause, including, without
limitation, the payments and benefit continuation during the Severance Period as set forth in Section 6(a), provided that if any
benefit plan or program does not permit the Executive's eligible dependents to continue to participate in such plan or program,
the Company shall pay the Executive's eligible dependents, quarterly, an amount which after-tax will keep them in the same economic
position as if they had continued in such plans and/or programs. If the Executive dies during any Severance Period during which
he is entitled to benefits pursuant to Section 6, his designated beneficiary(ies) (or his estate in the absence of any surviving
designated beneficiary) shall continue to receive the compensation that the Executive would have otherwise received during the
remainder of the Severance Period and his designated beneficiary(ies) shall be entitled to continue to participate in the Company's
medical plans during the remainder of the Severance Period provided that if any medical plan or program does not permit the Executive's
eligible dependents to continue to participate in such plan or program, the Company shall pay the Executive's eligible dependents,
quarterly, an amount which after-tax will keep them in the same economic position as if they had continued in such plans and/or
programs.


 


(c)               
Disability. If the Executive is deemed to have a Disability (as hereinafter defined) during the Employment
Period, the Company shall be entitled to terminate the Executive's employment upon 30 days written notice to the Executive. In
the event of such termination, the Executive shall be released from his duties under Section 2, and the Employment Period shall
end and the Severance Period described in Section 6(a) hereof shall immediately commence upon the expiration of such 30-day notice
period. The Executive’s rights, benefits and other entitlements during such Severance Period shall be as set forth in Section
6(a) as if his employment had been terminated by the Company without Cause, and the Executive shall be entitled to all such compensation
and benefits during the Severance Period without any offset or reduction except by such amounts, if any, as are paid to the Executive
in lieu of compensation for services under any applicable disability or other similar insurance policies of the Company (or by
the Company under any self-insurance plan). For purposes of this Agreement, “Disability” shall mean mental or
physical impairment or incapacity rendering the Executive substantially unable to perform his duties under this Agreement for more
than 180 days out of any 360-day period during the Employment Period. A determination of Disability shall be made by the Compensation
Committee of the Board in its reasonable discretion after obtaining the advice of a medical doctor mutually selected by the Company
and the Executive (or, if the Executive is unable to so select, the Executive’s representative). If the parties cannot agree
upon a medical doctor, each party shall select (or, if the Executive is unable to so select, the Executive’s representative
shall select) a medical doctor and the two doctors shall select a third who shall be the approved medical doctor for this purpose.
For avoidance of doubt it is understood that neither death nor Disability shall result in termination for Cause and any termination
in connection with death or Disability shall be governed by Sections 6(b) and (c), respectively.


 



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(d)              
Termination by the Company for Cause. The Company, by notice to the Executive, shall have the right to terminate
the Employment Period and the Executive's employment hereunder in the event of any of the following (any of which shall constitute
“Cause” for purposes of this Agreement):


 


(i)                
the Executive having been convicted of or entered a plea of nolo contendere with respect to a criminal offense constituting
a felony (or state law equivalent);


 


(ii)              
the Executive having committed in the performance of his duties under this Agreement one or more acts or omissions
constituting fraud, dishonesty, or willful injury to the Company which results in a material adverse effect on the business, financial
condition or results of operations of the Company;


 


(iii)            
the Executive having committed one or more acts constituting gross neglect or willful misconduct which results in
a material adverse effect on the business, financial condition or results of operations of the Company;


 


(iv)            
the Executive having willfully or knowingly exposed the Company to criminal liability substantially caused by the
Executive which results in a material adverse effect on the business, financial condition or results of operations of the Company;


 


(v)              
the Executive having failed, after written warning from the Board specifying in reasonable detail the breach(es)
complained of, to substantially perform his duties under this Agreement (excluding, however, any failure to meet any performance
targets or to raise capital or any failure as a result of an approved absence or any mental or physical impairment that could reasonably
be expected to result in a Disability); or


 


(vi)            
the Executive’s willful unauthorized disclosure of Confidential Information.



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For purposes of the foregoing, no act or
failure to act on the part of the Executive shall be considered “willful” or “knowingly” unless it is done,
or omitted to be done, by the Executive with the reasonable belief that the Executive's action or omission was not in the best
interests of the Company. Any act or failure to act that is expressly authorized by the Chief Executive Officer of the Company
or by the Board pursuant to a resolution duly adopted by the Board, or pursuant to the written advice of counsel for the Company,
shall be conclusively presumed to be done, or omitted to be done, by the Executive in the best interests of the Company. Notwithstanding
the foregoing, termination by the Company for Cause under clauses (ii) through (v) shall not be effective until and unless each
of the following provisions shall have been complied with: (a) notice of intention to terminate for Cause (a “Preliminary
Cause Notice”), the giving of which shall have been authorized by a vote of a majority of the independent members of the
Board then in office, which shall include a written statement of the particular acts or circumstances which are the basis for the
termination for Cause and shall set forth a reasonable period (not less than 30 days) to cure (the “Cure Period”),
shall have been given to the Executive by the Board within ninety days after the Company first learns of the act, failure or event
constituting Cause; (b) the Executive shall not have cured the acts or circumstances complained of within the Cure Period; (c)
the Board shall have called an in person meeting of the Board, at which termination of the Executive is an agenda item, and shall
have provided the Executive with not less than 20 days notice thereof (which meeting shall be held after the end of the Cure Period);
(d) the Executive shall have been afforded the opportunity, accompanied by counsel, to provide written materials to the members
of the Board in advance of such meeting and, if he so desires, to personally address the members of the Board at such meeting;
and (e) the Board shall have provided within three business days after such meeting, a written notice of termination for cause,
stating that, based upon the evidence it has received and reviewed, and specifying in reasonable detail the acts and circumstances
complained of, it has voted by a vote of at least a majority of all of the independent members of the Board then in office to terminate
the Executive for Cause (such a notice, a “Cause Termination Notice”), which such notice shall be effective on the
day of receipt thereof by the Executive.


 


Any termination of employment under this
Section 6(d) shall not be followed by a Severance Period and shall be without damages or liability to the Company for compensation
and other benefits which otherwise would have accrued to the Executive hereunder after the date of termination, but any unpaid
compensation, benefits and reimbursements accrued through the date of such termination, including Base Salary and Annual Incentive
Bonuses, shall be paid to the Executive at the times normally paid by the Company and the Executive shall be entitled to any other
rights, benefits or entitlements in accordance with this Agreement or any applicable plan, policy, program, arrangement of, or
other agreement with, the Company or any of its subsidiaries or affiliates.






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(e)               
Voluntary Termination by the Executive. Except as provided in Section 6(f), in the event of the voluntary
termination of employment by the Executive, the terms of the last paragraph of Section 6(d) shall apply.


 


(f)               
Termination by the Executive for Good Reason. In the event the Executive terminates his employment for Good
Reason, the Executive’s rights, benefits and other entitlements shall be as set forth in Section 6(a) as if Executive's employment
had been terminated by the Company without Cause. For purposes of this Agreement, Good Reason shall occur upon: (i) a material
diminution of the Executive's duties and responsibilities provided in Section 2, including, without limitation, the failure to
appoint the Executive as Executive Vice President of the Company or to elect the Executive as a member of the Board or the removal
(other than for Cause or by reason of death or Disability) of the Executive from any such position, (ii) a material reduction of
the Executive's Base Salary or bonus opportunity as set forth in Section 3(b), (iii) any material breach of any material provision
of this Agreement by the Company, (iv) relocation of the primary Executive's office location by more than 20 miles from the Oakland,
California metropolitan area, (v) the change in the Executive's reporting relationship from direct reporting to the Company’s
Chief Executive Officer; (vi) the failure of a successor to all or substantially all of the Company's business and/or assets to
promptly assume and continue the Company's obligations under this Agreement, whether contractually or as a matter of law, within
15 days of such transaction; provided, however, Good Reason shall only occur if the Executive gives the Company 60
days prior notice of his intent to voluntarily terminate his employment for any (or all) of the reasons set forth in Section 6(f)(i)-(vi),
and the Company does not cure the event constituting Good Reason within 30 days following such notice.


 


(g)              
Change in Control. For purposes of this Agreement, a “Change in Control” shall occur if
or upon the occurrence of:



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(i)                
Any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the
“Exchange Act”) and as used in Section 13(d)(3) and 14(d)(2) of the Exchange Act), is or becomes, after the
Effective Date, a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities representing 50% or more of the combined voting power of the Company’s outstanding securities eligible to vote
for election of the Board of the Company; or


 


(ii)              
The individuals who, as of the Effective Date of this Agreement, are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least two-thirds of the Incumbent Board; provided, however,
that if either the election of any new director or the nomination for election of any new director was approved by a vote of more
than two-thirds of the Incumbent Board, such new director shall be considered as a member of the Incumbent Board; provided
further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially
assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated
under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than
the Board (a “Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election
Contest or Proxy Contest; or


 


(iii)            
consummation of a reorganization, merger or consolidation, sale, disposition of all or substantially all of the assets
or stock or any other similar corporate event of the Company (a “Business Combination”), in each case, unless
following such Business Combination, (a) all or substantially all of the individuals or entities who were the beneficial owners,
respectively, of the Company voting stock entitled to vote generally in the election of directors immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding voting securities entitled
to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns the Company’s stock or all or substantially
all of its assets either directly or through one or more subsidiaries) (the “Surviving Corporation”) and (b)
the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for the Business
Combination constitute at least a majority of the members of the Board of Directors of the relevant Surviving Corporation. Upon
a Change in Control, the Executive's outstanding equity awards shall immediately vest in full, with all outstanding stock options
and stock appreciation rights granted to the Executive remaining exercisable for the remainder of their terms.






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(h)              
Termination Following a Change in Control. If within two years following a Change in Control, the Executive's
employment is terminated by the Company for any reason (other than for reason of death or Disability) or by the Executive for Good
Reason, the Company shall pay the Executive in cash in a lump sum to be paid as soon as practicable following termination (but
in no event later than 30 days following such termination), an amount equal to the sum of (a) the annual Base Salary of the Executive,
and (b) the amount of all bonuses earned by him (including any amounts deferred) for the performance period that ended immediately
prior to the performance period in which the date of termination occurs. The Executive and his eligible dependents shall also be
entitled, at the Company’s expense, to continue to participate in all welfare and health benefit plans in which they were
participating on the date of termination of the Executive's employment until the earlier of (x) the end of the Employment Period,
or (z) the date he receives equivalent coverage and benefits under the plans and programs of a subsequent employer, and any such
coverage and benefits actually received by the Executive and his dependents shall be reported to the Company. In addition, the
Executive shall be entitled to (x) accelerated vesting upon the termination date of all outstanding equity awards not already accelerated
upon the happening of the Change in Control, with all outstanding stock options or stock appreciation rights remaining exercisable
for no less than one year or the remainder of the original term, if shorter, (y) payment of any earned but unpaid amounts, including
bonuses for performance periods that ended prior to the termination date and any unreimbursed business expenses, with such payment
made in accordance with Company practices in effect on the date of his termination of employment, and (z) any other rights, benefits
or entitlements in accordance with this Agreement or any applicable plan, policy, program, arrangement of, or other agreement with,
the Company or any of its subsidiaries or affiliates. There shall be no Severance Period following a termination under this Section
6(h) or after a Change in Control following any termination pursuant Section 6(i).


 


(i)                
Termination Prior to a Change in Control. In the event that Executive's employment is terminated by the Company
without Cause or by the Executive for Good Reason and a Change in Control occurs within 12 months following such termination, then
the Executive’s rights, benefits and other entitlements set forth in Section 6(a) shall cease and in lieu of such rights,
benefits and entitlement the Executive shall be entitled to the rights benefits and entitlement as provided for in Sections 6(g)
and 6(h); provided, however, that the lump sum payment provided for in the first sentence of Section 6(h) shall be
reduced by any severance paid pursuant to clauses 6(a)(1) and 6(a)(2).






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(j)                
Timing of Payments and Section 409A of the Code. Notwithstanding anything to the contrary in this Agreement
or elsewhere, if the Executive is a “specified employee” as determined pursuant to Section 409A (“Section
409A”) of the Code as of the date of his “separation from service” (within the meaning of Final Treasury
Regulation 1.409A-1(h)) and if any payment or benefit provided for in this Agreement or otherwise both (x) constitutes a “deferral
of compensation” within the meaning of Section 409A and (y) cannot be paid or provided in the manner otherwise provided without
subjecting the Executive to “additional tax”, interest or penalties under Section 409A, then any such payment or benefit
that is payable during the first six months following his “separation from service” shall be paid or provided to the
Executive in a cash lump-sum, with interest at LIBOR, on the first business day of the seventh calendar month following the month
in which his “separation from service” occurs. In addition, any payment or benefit due upon a termination of his employment
that represents a “deferral of compensation” within the meaning of Section 409A shall only be paid or provided to the
Executive upon a “separation from service”. Notwithstanding anything to the contrary in this Agreement or elsewhere,
any payment or benefit under this Agreement that is exempt from Section 409A pursuant to Final Treasury Regulation 1.409A-1(b)(9)(v)(A)
or (C) shall be paid or provided to the Executive only to the extent that the expenses are not incurred, or the benefits are not
provided, beyond the last day of his second taxable year following his taxable year in which the “separation from service”
occurs. Finally, for the purposes of this Agreement, amounts payable under this Agreement shall be deemed not to be a “deferral
of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation Sections 1.409A-1(b)(4)
(“short-term deferrals”) and (b)(9) (“separation pay plans”), including the exception under subparagraph
(iii)) and other applicable provisions of Treasury Regulation Section 1.409A-1 through A-6. Each payment under this Agreement shall
be treated as a separate identified payment for purposes of Section 409A. With respect to any reimbursement of expenses of, or
any provision of in-kind benefits to, the Executive, as specified under this Agreement, that constitute “deferral of compensation”
subject to Section 409A, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions:
(a) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the
expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical
reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (b) the reimbursement
of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (c)
the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.


 


This Agreement and the amounts payable
and other benefits provided hereunder are intended to comply with, or otherwise be exempt from, Section 409A and it shall be administered,
interpreted and construed accordingly.


 



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7.                 
No Mitigation of Damages; No Offset.


 


In the event the employment of the Executive
under this Agreement is terminated for any reason, the Executive shall not be required to seek other employment so as to minimize
any obligation of the Company to compensate him for any damages he may suffer by reason of such termination. In addition, the Company
or any of its subsidiaries or affiliates shall not have a right of offset against any payments, benefits or entitlements due to
the Executive under this Agreement (except to the extent expressly set forth in Section 6(c) hereof) or otherwise on account of
any remuneration the Executive receives from subsequent employment or on account of any claims the Company or any of its subsidiaries
or affiliates may have against the Executive.


 


8.                 
Indemnification.


 


(a)               
The Company agrees that if the Executive is made a party to, is threatened to be made a party to, receives any legal
process in, or receives any discovery request or request for information in connection with, any action, suit or proceeding, whether
civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a
director, officer, employee, consultant or agent of the Company or was serving at the request of, or on behalf of, the Company
as a director, officer, member, employee, consultant or agent of another corporation, limited liability corporation, partnership,
joint venture, trust or other entity, including service with respect to employee benefit plans, whether or not the basis of such
Proceeding is the Executive's alleged action in an official capacity while serving as a director, officer, member, employee, consultant
or agent of the Company or other entity, the Executive shall be indemnified and held harmless by the Company to the fullest extent
permitted or authorized by the Company's articles of incorporation and/or bylaws, or, if greater, by applicable law, against any
and all costs, expenses, liabilities and losses (including, without limitation, attorneys' fees reasonably incurred, judgments,
fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement and any reasonable costs and fees incurred
in enforcing his rights to indemnification or contribution) incurred or suffered by the Executive in connection therewith, and
such indemnification shall continue as to the Executive even though he has ceased to be a director, officer, member, employee,
consultant or agent of the Company or other entity. The Company shall advance to the Executive his legal fees and other expenses
to be paid by him in connection with a Proceeding within 20 business days after receipt by the Company of a written request for
such reimbursement and appropriate documentation associated with such expenses. Such request shall include an undertaking by the
Executive to repay such amounts if, and to the extent, required to do so by applicable law if it shall ultimately be determined
by a final court adjudication from which there is no right of appeal that the Executive is not entitled to be indemnified against
such costs and expenses; provided that, to the extent permitted by law, the amount of such obligation to repay shall be limited
to the after-tax amount of any such advance except to the extent the Executive is able to offset such taxes incurred on the advance
by the tax benefit, if any, attributable to a deduction for repayment.



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(b)              
The Company agrees to maintain for the Executive a directors' and officers' liability insurance policy not less favorable
than any policy that the Company or any subsidiary or affiliate thereof maintains for its directors and executive officers in general
for a period of at least six years following the termination of the Executive's employment.


 


(c)               
This Section 8 establishes contract rights which shall be binding upon, and shall inure to the benefit of the heirs,
executors, personal and legal representatives, successors and assigns of the Executive. The obligations set forth in this Section
8 shall survive any termination of this Agreement (whether such termination is by the Company, the Executive, upon the expiration
of this Agreement, or otherwise). Nothing in this Section 8 shall be construed as reducing or waiving any right to indemnification,
advancement of expenses or coverage under directors' and officers' liability insurance policies, the Executive has or would otherwise
have under the Company's articles of incorporation, by laws, other agreement (“Indemnification Agreement”) or
under applicable law.


 


9.                 
Section 280G of the Code. If any payment or benefit under this Agreement or otherwise (the “Payments”)
constitutes an “excess parachute payment” within the meaning of Section 280G of the Code, the Payments shall be reduced
so that no part of such Payments constitutes an excess parachute payment; provided, however, that such reduction
shall occur if and only if the net after-tax payment to the Executive after the reduction is greater than the net after-tax payment
without such reduction. For purposes of this Section 9, the Executive shall be deemed subject to the highest rate with respect
to any applicable taxes. In their determinations with respect to this Section 9, the Company and the Executive may rely on the
calculations and analysis by a recognized national accounting firm that the Executive shall have the right to appoint from the
three choices amongst such accounting firms provided by the Company. The Company shall name the three national accounting firms
for the Executive to select promptly and without delay. Any fees and expenses charged by such accounting firm with respect to calculations
and analysis hereunder shall be the obligation of and paid by the Company as they come due, promptly and without delay. All other
reasonable costs, fees and expenses with respect to the subject matter described in this Section 9, including those incurred to
retain legal counsel for the Executive shall be borne by the Company.


 



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10.             
No Conflicting Agreements.


 


As of the date of this Agreement, the Executive
hereby represents and warrants to the Company that his entering into this Agreement, and the obligations and duties undertaken
by him hereunder, will not conflict with, constitute a breach of, or otherwise violate the terms of any other employment or other
written agreement to which he is a party. The Company represents and warrants that it is a corporation duly organized and existing
under the laws of the State of California and that execution and delivery of this Agreement has been duly authorized by all necessary
corporate action.


 


11.             
Assignment.


 


(a)               
By the Executive. This Agreement and any obligations hereunder shall not be assigned, pledged, alienated,
sold, attached, encumbered or transferred in any way by the Executive and any attempt to do so shall be void. Notwithstanding the
foregoing, the Executive may transfer his rights and entitlements to compensation and benefits under this Agreement or otherwise
pursuant to will, operation of law or in accordance with any applicable plan, policy, program, arrangement of, or other agreement
with, the Company or any of its subsidiaries or affiliates.


 


(b)              
By the Company. Provided the substance of the Executive's duties set forth in Section 2 shall not change,
and provided that the Executive's compensation as set forth in Section 3 shall not be adversely affected, the Company may assign
or transfer its rights and obligations under this Agreement, provided that the assignee or transferee is the successor to all or
substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties
of the Company, as contained in this Agreement, either contractually or as a matter of law.


 


(c)               
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, heirs
(in the case of the Executive) and assigns.


 


12.             
Arbitration.


 


(a)               
Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by
arbitration in Los Angeles, California before a panel of three arbitrators in accordance with the Commercial Arbitration Rules
of the American Arbitration Association then pertaining. In any such arbitration, one arbitrator shall be selected by each of the
parties, and the third arbitrator shall be selected by the first two arbitrators. The arbitration award shall be final and binding
upon the parties and judgment thereon may be entered in any court having jurisdiction thereof. The arbitrators shall be deemed
to possess the powers to issue mandatory orders and restraining orders in connection with such arbitration; provided, however,
that nothing in this Section 12 shall be construed so as to deny the Company the right and power to seek injunctive relief in a
court of equity for any breach or threatened breach of the Executive of any of his covenants contained in Section 5 hereof.



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13.             
Notices.


 


All notices, requests, demands and other
communications hereunder must be in writing and shall be deemed to have been duly given if delivered by hand or overnight delivery
service or mailed within the continental United States by first class, certified mail, return receipt requested, to the applicable
party and addressed as follows:


 


(a)            if to the Company:


Shimmick Construction Co., Inc.


8201 Edgewater Dr. Ste 202


Oakland, CA 94621


Attn: Board of Directors


 


(b)           if to the Executive:


Most recent home address as indicated in
the Company's records. Addresses may be changed by notice in writing signed by the addressee in accordance with this Section 13.


 


(c)            with a copy to:


Graubard Miller


405 Lexington Avenue, 11th
Floor


New York, NY 10174


Attn: Paul Lucido, Esq.


 


14.             
Miscellaneous.


 


(a)               
If any provision of this Agreement shall, for any reason, be adjudicated by any court of competent jurisdiction to
be invalid or unenforceable, such judgment shall not effect, impair or invalidate the remainder of this Agreement but shall be
confined in its operation to the jurisdiction in which made and to the provisions of this Agreement directly involved in the controversy
in which such judgment shall have been rendered.


 


(b)              
No course of dealing and no delay on the part of any party hereto in exercising any right, power or remedy under
or relating to this Agreement shall operate as a waiver thereof or otherwise prejudice such party's rights, power and remedies.
No single or partial exercise of any rights, powers or remedies under or relating to this Agreement shall preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.


 


(c)               
This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original,
but all such counterparts shall together constitute one and the same instrument, and all signatures need not appear on any one
counterpart.


 


(d)              
All payments required to be made to the Executive by the Company hereunder shall be subject to any applicable withholding
under any applicable Federal, state, or local tax laws. Any such withholding shall be based upon the most recent form W-4 filed
by the Executive with the Company, and the Executive may from time to time revise such filing.


 



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(e)               
This Agreement embodies the entire understanding, and supersedes all other oral or written agreements or understandings,
between the parties regarding the subject matter hereof, but excluding, to the extent not expressly modified by the provisions
of this Agreement, any outstanding equity award agreements and any Indemnification Agreement. No change, alteration or modification
hereof may be made except in writing signed by both parties hereto. Any waiver to be effective must be in writing, specifically
referencing the provision of this Agreement being waived and signed by the party against whom enforcement is being sought. Except
as otherwise expressly provided herein, there are no other restrictions or limitations on the Executive's activities following
termination of employment. The headings in this Agreement are for convenience of reference only and shall not be considered part
of this Agreement or limit or otherwise affect the meaning hereof.


 


(f)               
This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and
governed by the laws of the state of California (disregarding any choice of law rules which might look to the laws of any other
jurisdiction).


 


(g)              
Except as otherwise expressly set forth in this Agreement, upon the termination or expiration of the Employment Period,
the respective rights and obligations of the parties shall survive such termination or expiration to the extent necessary to carry
out the intentions of the parties as embodied under this Agreement. This Agreement shall continue in effect until there are no
further rights or obligations of the parties outstanding hereunder and shall not be terminated by either party without the express
prior written consent of the both parties.


 


[Remainder of page
intentionally left blank]


 



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IN WITNESS WHEREOF, the parties hereto
have executed and delivered this Agreement as of the day and year first written above.


 





	 	 	SHIMMICK CONSTRUCTION COMPANY, INC.
	 	 	 
	 	 	By:	
	JEFFREY LESSMAN	 	Name:
	 	 	Title:









 






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SCHEDULE A


 


Annual Bonuses


 


Executive shall be entitled to receive a Performance Bonus, a Profitability
Bonus and a Stock Option Award (each as defined below) for fiscal years 2016 and each fiscal year thereafter, subject to and in
accordance with the terms and conditions set forth below. References herein to the “Compensation Committee”
are to the Compensation Committee of the Company’s Board of Directors or, if there is no such committee, to the Company’s
full Board of Directors.


 


Performance Bonus


 


Executive shall be entitled to receive a cash bonus award (the “Performance
Bonus”), which may be granted under the Company’s Incentive Plan at the discretion of the Compensation Committee,
based on the Company’s performance for fiscal year 2016 and each fiscal year thereafter. The Performance Bonus shall be composed
of the components set forth below (the “Components”). The amount of each Component of the Performance Bonus
shall equal the Raw Bonus (as defined below) for such Component multiplied by the Weighting Percentage for such Component. The
“Raw Bonus” for a Component shall equal:


 


		(1)	zero, if the Component Measure is less than the Component Threshold,



 


		(2)	the Threshold Bonus, if the Component Measure equals the Component Threshold,



 


		(3)	the Threshold Bonus plus a pro rata portion of the difference between the Target Bonus and the Threshold Bonus, if the Component
Measure is greater than the Component Threshold but less than the Component Target,



 


		(4)	the Target Bonus, if the Component Measure equals the Component Target,



 


		(5)	the Target Bonus plus a pro rata portion of the difference between the Maximum Bonus and the Target Bonus, if the Component
Measure is greater than the Component Target but less than the Component Maximum, or



 


		(6)	the Maximum Bonus, if the Component Measure is equal to or greater than the Component Maximum.



 


The total Performance Bonus shall equal the sum of the Components.
Executive’s Performance Bonus shall consist of the following Components:


 


	Component	Corporate
	Component Measure	Company EBITDA
	Weighting Percentage	30%
	Component Target	As determined by the Compensation Committee for each fiscal year
	Target Bonus	45% of Base Salary
	Component Threshold	80% of Component Target
	Threshold Bonus	25% of Target Bonus
	Component Maximum	120% of Component Target
	Maximum Bonus	150% of Target Bonus


 






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	Component	Quarry/New Markets Division
	Component Measure	Quarry/New Markets EBITDA
	Weighting Percentage	70%
	Component Target	As determined by the Compensation Committee for each fiscal year
	Target Bonus	45% of Base Salary
	Component Threshold	75% of Component Target
	Threshold Bonus	25% of Target Bonus
	Component Maximum	125% of Component Target
	Maximum Bonus	200% of Target Bonus


 


Profitability Bonus


 


Executive shall be entitled to receive a cash bonus award (the “Profitability
Bonus”) based on the Profitability Measure (as defined below) for fiscal year 2016 and each fiscal year thereafter. The
Profitability Bonus shall equal: (1) zero, if the Profitability Measure is less than the Profitability Threshold, or (2) the Bonus
Percentage multiplied by the Profitability Measure, if the Profitability Measure is equal to or greater than the Profitability
Threshold.


 


	Profitability Measure	Quarry/New Markets EBITDA
	Profitability Threshold	As determined by the Compensation Committee for each fiscal year
	Profitability Percentage	2.0%


 


Stock Awards


 


Executive shall be entitled to receive a restricted stock award
(the “Stock Award”), granted by the Compensation Committee under the Company’s Incentive Plan, based on
the Company’s performance for fiscal year 2016 and each fiscal year thereafter. The Stock Award shall be composed of the
Components set forth below. Each Component of the Stock Award shall be a number of shares of common stock equal to (a) the Raw
Stock Award (as defined below) for such Component, divided by (b) the Fair Market Value of the Company’s common stock on
the date of grant of the Stock Award, which shall be no later than the date the Company files its annual report on Form 10-K for
the applicable fiscal year (the “Grant Date”), multiplied by (c) the Weighting Percentage for such Component,
rounded up to the nearest whole number of shares. The “Raw Stock Award” for a Component shall equal:


 


		(1)	zero, if the Component Measure is less than the Component Target,



 


		(2)	the Target Award, if the Component Measure equals the Component Target,



 


		(3)	the Target Award plus a pro rata portion of the difference between the Maximum Award and the Target Award, if the Component
Measure is greater than the Component Target but less than the Component Maximum, or



 


		(4)	the Maximum Award, if the Component Measure is equal to or greater than the Component Maximum.



 



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The total Stock Award shall equal the sum of the Components, but
in any event not more than 500,000 shares of common stock. Executive’s Stock Award shall consist of the following Components:


 


	Component	Corporate
	Component Measure	Company EBITDA
	Weighting Percentage	50%
	Component Target	As determined by the Compensation Committee for each fiscal year
	Target Award	75% of Base Salary
	Component Maximum	150% of Component Target
	Maximum Award	150% of Base Salary


 


	Component	Quarry/New Markets Division
	Component Measure	Quarry/New Markets EBITDA
	Weighting Percentage	50%
	Component Target	As determined by the Compensation Committee for each fiscal year
	Target Award	75% of Base Salary
	Component Maximum	150% of Component Target
	Maximum Award	150% of Base Salary


 


The Stock Award will vest in three equal installments on the first,
second and third anniversary of the Grant Date.


 


Definitions


 


“Company EBITDA” shall mean Company EBITDA as
presented in the Company’s annual report on Form 10-K for the applicable fiscal year.


 


“NW EBITDA,” “SW EBITDA” and
“Quarry/New Markets EBITDA” shall mean Division EBITDA for the Northwest Division, Southwest Division and Quarry/New
Markets Division, respectively, calculated as follows: “Division Net Income” shall mean gross profit attributable
to Shimmick Construction Company, Inc. from projects managed under the applicable division (net of non-controlling interests),
minus overhead expenses incurred by the Company that are directly attributable to the division (with respect any division, “Direct
Overhead”), minus a Pro Rata portion of the overhead expenses incurred by the Company that are not directly attributable
to any division (with respect to any division, “Allocable Overhead”). To calculate “Division EBITDA,”
Division Net Income will then be increased by all Direct and Allocable EBITDA adjustments that were made to the Company net income
to attain the applicable fiscal year’s Company EBITDA reported in the Form 10-K. The Division EBITDA for all three divisions
by definition sum up to the Company EBITDA reported in the Form 10-K. “Pro Rata” shall mean, with respect to
any division, pro rata based on the ratio of the revenue from projects managed under the division to the revenue of the Company.


 


“Fair Market Value” shall mean, as of any given
date: (i) if the Company’s common stock is listed on a national securities exchange or is traded over-the-counter and last
sale information is available, the last sale price of the Common Stock in the principal trading market for the Company’s
common stock on such date, as reported by the exchange or by such source that the Compensation Committee of the Board of Directors
deems reliable, as the case may be; or (ii) if the fair market value of the Common Stock cannot be determined pursuant to clause
(i), such price as the Compensation Committee shall determine, in good faith.


 


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