Document:

Ex-10.3

 

Exhibit
10.3

ESCROW AGREEMENT

     This Escrow Agreement (this “Agreement”) is made and entered into effective as of the
31st day of July 2006 by and among TAS Holding, Inc. a Delaware corporation (“TAS”), TIMCO
Aviation Services, Inc., a Delaware corporation (“TIMCO”), and American Bank of Texas, as
escrow agent (the “Escrow Agent”). TAS and TIMCO are collectively referred to herein as
the “Parties.” Any references to TAS or TIMCO shall include their successors and assigns.

     WHEREAS, pursuant to the terms of the Agreement and Plan of Merger (the “Merger
Agreement”) between TIMCO and TAS dated as of July 31, 2006, TAS is to merge with and into
TIMCO, with TIMCO being the surviving entity, and the public shareholders of TIMCO will receive
cash consideration of $4.00 per share, and the holders of Company Stock Options, Stock Purchase
Rights, Company Convertible Debt and the LJH Warrant (as such terms are defined in the Merger
Agreement) will receive cash consideration equivalent to $4.00 per share of Company Common Stock
into which such rights are exercisable or convertible (all such persons having rights to receive
cash consideration as a result of the Merger being referred to herein as “Holders”), or $10,006,524
in the aggregate, subject to the terms and conditions described in the Merger Agreement (the
“Merger”); and

     WHEREAS, TAS is delivering to the Escrow Agent $10,006,524 in cash as a deposit (the
“Deposit Amount”) to be applied to pay the cash consideration to the Holders pursuant to
Section 1.10(a) of the Merger Agreement; and

     WHEREAS, the Deposit Amount represents funds contributed to the capital of TAS by its
stockholders, LJH, Ltd. (“LJH”) and certain affiliated investment partnerships of Owl Creek Asset
Management, L.P. (“Owl Creek”); and

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Definitions. “Business Day” means any day other than a Saturday, Sunday or
other day on which commercial banks in Denison, Texas or Greensboro, North Carolina are authorized
or required by law to close.

     2. Instructions to Escrow Agent. All instructions received by the Escrow Agent from
TAS must be signed by an officer of TAS and of LJH. All instructions received by the Escrow Agent
from TIMCO must be signed by an officer of TIMCO.

     3. Appointment of the Escrow Agent. The Escrow Agent is hereby appointed as escrow
agent with respect to the Escrow (as defined below).

     4. The Escrow. In accordance with the terms of the Merger Agreement, TAS has
deposited with the Escrow Agent the Deposit Amount, consisting of funds contributed to its capital
by LJH and Owl Creek. The Deposit Amount, plus all interest thereon, shall be held and disposed of
in accordance with the terms of this Agreement (the “Escrow”).

     5. The Escrow Agent’s Duties. The Escrow Agent shall hold the Escrow in safekeeping
and shall deliver the same or any part thereof, only as set forth in this Agreement.

 

 

     6. Terms of Escrow. The terms of the Escrow shall extend until all of the Escrow has
been distributed by the Escrow Agent in accordance with Section 8 of this Agreement.

     7. Investment of Escrow. The Escrow Agent shall invest and reinvest cash balances in
the Escrow each day in such money market or other short-term investment funds as shall be specified
in writing jointly by TAS and by TIMCO, as evidenced by a resolution of the Special Committee of
the Board of Directors of TIMCO certified to the Escrow Agent by the secretary or assistant
secretary of TIMCO; provided, however, that no investment or reinvestment may be
made except in the following:

     (a) direct obligations of the United States of America or obligations the principal of and the
interest on which are unconditionally guaranteed by the United States of America;

     (b) certificates of deposit issued by any bank, bank and trust company, or national banking
association (including the Escrow Agent and its affiliates), which certificates of deposit are
fully insured by the Federal Deposit Insurance Corporation or a similar governmental agency;

     (c) repurchase agreements with any state bank or national banking association (including the
Escrow Agent and its affiliates); or

     (d) money market funds maintained by the Escrow Agent that are composed solely of United
States of America Treasury Securities.

Interest or other amounts paid on, or with respect to, invested cash balances in the Escrow shall
be deemed a part of the Escrow, and shall be held and invested by the Escrow Agent in accordance
with the terms of this Agreement.

     If the Escrow Agent has not received written instructions from the Parties at any time that an
investment decision must be made, the Escrow Agent shall invest such cash balances, or any portion
thereof as to which no such written instruction has been received, in investments described in
clause (d) above. Each of the foregoing investments shall be made in the name of the Escrow Agent.
No investment shall be made in any instrument or security that has a maturity of greater than 30
days. Notwithstanding anything to the contrary contained herein, the Escrow Agent may, without
notice to the Parties, sell or liquidate any of the foregoing investments at any time if the
proceeds thereof are required for any release of funds permitted or required under this Agreement,
and the Escrow Agent shall not be liable or responsible for any loss, cost or penalty resulting
from any such sale or liquidation. With respect to any funds received by the Escrow Agent for
deposit into the Escrow, or any written instruction from the Parties received by the Escrow Agent
with respect to investment of any funds in the Escrow after ten o’clock a.m., Central Time, the
Escrow Agent shall not be required to invest such funds or to effect such investment instruction
until the next Business Day.

     The Parties recognize and agree that the Escrow Agent will not provide supervision,
recommendations or advice relating to either the investment of moneys held in the Escrow Account or
the purchase, sale, retention or other disposition of any permitted investment. Interest and other
earnings on permitted investments shall be added to the Escrow Account. Any loss or expense
incurred as a result of an investment will be borne by the Escrow Account. Although TAS and TIMCO
each recognizes that it may obtain a broker confirmation or written statement containing comparable
information at no additional cost, TAS and TIMCO hereby

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agree that confirmations of permitted investments are not required to be issued by the Escrow
Agent for each month in which a monthly statement is rendered. No statement need be rendered for
the Escrow Account if no activity occurred for such month.

     8. Distribution of the Escrow. The Escrow Agent is directed to hold and distribute
the Escrow, as follows:

     (a) The Escrow Agent is hereby authorized and directed to release and deliver the Escrow, as
TAS and TIMCO, as evidenced by a resolution of the Special Committee of the Board of Directors of
TIMCO certified to the Escrow Agent by the secretary or assistant secretary of TIMCO, may jointly
direct the Escrow Agent in writing at any time or from time to time, and, without limiting the
foregoing, TAS and TIMCO agree:

     (i) upon the consummation of the Merger, the Escrow Agent shall release and deliver the
Escrow, minus any excess of the Escrow over the Deposit Amount (the “Escrow Excess Amount”), to the
Paying Agent under the Merger Agreement, who shall be identified to Escrow Agent in a written
notice by TAS and TIMCO, as evidenced by a resolution of the Special Committee of the Board of
Directors of TIMCO certified to the Escrow Agent by the secretary or assistant secretary of TIMCO,
prior to the consummation of the Merger, and thereupon to release and deliver the Escrow Excess
Amount to TIMCO as the surviving corporation of the Merger. Delivery to the Escrow Agent of a
Certificate of Merger evidencing the merger of TAS, with and into TIMCO, and bearing the seal of
the Secretary of State of the State of Delaware and certified to be in effect by the Secretary of
TIMCO is agreed by TIMCO and TAS to be sufficient evidence of the consummation of the Merger, and
upon receipt thereof, the Escrow Agent is hereby authorized and directed to release and deliver the
Escrow in accordance with this Section 8(a)(i); and

     (ii) if the Merger Agreement is terminated, the Escrow Agent shall release and deliver to LJH
80.52% of the Escrow and to Owl Creek 19.48% of the Escrow, solely upon receipt of joint
instructions to such effect by TAS and the Special Committee of the Board of Directors of TIMCO; or

     (b) The Escrow Agent is hereby authorized and directed to release and deliver the Escrow in
accordance with, and upon the Escrow Agent’s receipt of, a certified copy of a final judgment or
order, unappealed or unappealable, of a court of competent jurisdiction ordering such release and
delivery.

     (c) Upon and after the consummation of the Merger, because TAS and TIMCO will have merged into
a single corporation which will continue under the name of TIMCO, all subsequent instructions and
actions required under this Agreement by either of TAS or TIMCO shall be performed by TIMCO.

     9. The Escrow Agent’s Authority to Act.

     (a) Subject to the requirements set forth in Section 2, the Escrow Agent may act in
accordance with the terms of this Agreement upon any written notice, request, waiver, consent,
certificate, receipt, authorization, power of attorney or other written or electronic document
which the Escrow Agent in good faith, after reasonable inquiry, believes to be genuine.

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     (b) The Escrow Agent shall be deemed to have properly delivered any item of the Escrow upon
(i) delivery by wire transfer to such accounts as the Escrow Agent may be instructed in writing by
the person to whom delivery is to be made; (ii) delivery in person at the Escrow Agent’s offices;
or (iii) delivery in any other manner pursuant to written instructions of the person to whom
delivery is to be made.

     (c) In performing its duties under this Agreement, or upon the claimed failure to perform any
of its duties hereunder, the Escrow Agent shall not be liable to anyone for damages, losses or
expenses which may be incurred as a result of the Escrow Agent so acting or failing to so act;
provided, however, the Escrow Agent shall not be relieved from liability for
damages arising out of its gross negligence or willful misconduct under this Agreement or breach of
this Agreement.

     (d) The Escrow Agent is expressly authorized and directed to deliver to LJH and to Owl Creek
copies of all written notices and reports delivered by Escrow Agent to TAS or TIMCO pursuant to
this Agreement, and to respond to reasonable requests by either of LJH or Owl Creek for information
relating to this Agreement and the Escrow. In the event of any dispute arising under this
Agreement, LJH and Owl Creek are agreed by the Parties to be express third party beneficiaries of
this Agreement and to have the right to appear and participate in any such litigation as their
rights may appear.

     10. Other Agreements. The Escrow Agent is not a party to, nor is it bound by, any
other agreement or undertaking among the Parties, it being the intention of the Parties hereto that
the Escrow Agent assents to and shall be obligated to give attention only to the terms and
provisions hereof. Unless otherwise provided in Section 9(a), Section 13(a) or
Section 14, the Escrow Agent shall have no duty to determine or inquire into the happening
or occurrence of any event or contingency or the performance or failure of performance of TAS or
TIMCO with respect to arrangements or contracts with each other or with others, the Escrow Agent’s
sole duty hereunder being to hold the Escrow and to dispose of and deliver the same in accordance
with the terms of this Agreement.

     11. Standard of Care.

     (a) The Escrow Agent undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement and no implied covenants or obligations shall be read into
this Agreement against the Escrow Agent.

     (b) If the Escrow Agent is required by the terms hereof to determine the occurrence of any
event or contingency, the Escrow Agent shall, in making such determination, be liable only for its
willful misconduct or gross negligence, as determined in light of all the circumstances, including
the time and facilities available to it in the ordinary conduct of its business. In determining
the occurrence of any such event or contingency the Escrow Agent may request from TAS, TIMCO or any
other person such reasonable additional evidence as the Escrow Agent in its sole discretion may
deem necessary to determine any fact relating to the occurrence of such event or contingency, and
may at any time inquire of and consult with others, including without limitation, TAS and TIMCO,
and the Escrow Agent shall not be liable for any damages resulting from its delay in acting
hereunder pending its receipt and examination of additional evidence requested by it.

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     (c) Unless otherwise expressly provided in this Agreement, whenever the Escrow Agent is
required by the terms hereof to take action upon the occurrence of any event or contingency, the
time prescribed for such action shall in all cases be a reasonable time after written notice
received by the Escrow Agent for the happening of such event or contingency.

     12. Resignation and Removal of the Escrow Agent. The Escrow Agent may resign from the
performance of its duties hereunder at any time by giving 10 days’ prior written notice to the
Parties. The Escrow Agent may be removed as Escrow Agent hereunder, with or without cause, by the
Parties, acting collectively, by furnishing collective written instructions to the Escrow Agent, at
any time by the giving of 10 days’ prior written notice to the Escrow Agent. Such resignation or
removal shall take effect upon the appointment of a successor Escrow Agent or upon payment of the
Escrow to the registry of court of competent jurisdiction, as provided herein below. Upon any such
notice of resignation or removal, the Parties shall collectively appoint a successor Escrow Agent
hereunder, which shall be a commercial bank, trust company or other financial institution with a
combined capital and surplus in excess of $100,000,000. If TAS and TIMCO have not collectively
appointed a successor Escrow Agent within twenty (20) days after the date of notice of the Escrow
Agent’s resignation or removal, the Escrow Agent shall deliver the Escrow to the registry of a
court of competent jurisdiction. Upon the acceptance in writing of any appointment as the Escrow
Agent hereunder by a successor Escrow Agent, such successor Escrow Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties previously vested in the
Escrow Agent who has resigned or has been removed (the “Retiring Escrow Agent”), including delivery
of such funds to the registry of a court of competent jurisdiction. Upon the effectiveness of the
Retiring Escrow Agent’s resignation or removal, the Retiring Escrow Agent shall be discharged from
its duties and obligations under this Agreement, but shall not be discharged from any liability for
actions taken as the Escrow Agent hereunder prior to the effectiveness of such resignation or
removal. After the effectiveness of the Retiring Escrow Agent’s resignation or removal, the
provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was the Escrow Agent under this Agreement.

     13. Liability of the Escrow Agent.

     (a) The Escrow Agent shall have no liability or obligation with respect to the Escrow, except
for the Escrow Agent’s willful misconduct or gross negligence or breach of this Agreement. The
Escrow Agent’s sole responsibility shall be for the safekeeping, investment, and disbursement of
the Escrow in accordance with the terms of this Agreement. The Escrow Agent shall have no implied
duties or obligations and shall not be charged with knowledge or notice of any fact or circumstance
not specifically set forth herein. The Escrow Agent may rely upon any instrument, not only as to
its due execution, validity and effectiveness, but also as to the truth and accuracy of any
information contained therein, which the Escrow Agent shall in good faith, after reasonable
inquiry, believe to be genuine, to have been signed or presented by the person or parties
purporting to sign the same and to conform to the provisions of this Agreement. In no event shall
the Escrow Agent be liable for incidental, indirect, special, consequential or punitive damages.
The Escrow Agent shall not be obligated to take any legal action or commence any proceeding in
connection with the Escrow, any account in which the Escrow is deposited, this Agreement or the
Merger Agreement, or to appear in, prosecute or defend any such legal action or proceeding. The
Escrow Agent may consult legal counsel selected by it in the event of any dispute or question as to
the construction of any of the

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provisions hereof or of any other agreement or of its duties hereunder, and shall incur no
liability and shall be fully indemnified from any liability whatsoever in acting in good faith in
accordance with the written opinion or instruction of such counsel provided to each of TAS and
TIMCO. The Parties, jointly and severally, shall promptly pay, upon demand, the reasonable fees and
expenses of any such counsel.

     (b) The Escrow Agent is authorized, in its sole discretion, to comply with orders issued or
process entered by a court of competent jurisdiction with respect to the Escrow without
determination by the Escrow Agent of such court’s jurisdiction in the matter. If any portion of
the Escrow is at any time attached, garnished or levied upon under any court order, or in case the
payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or
enjoined by any court order, or in case any order, judgment or decree shall be made or entered by
any court affecting such property or any part thereof, then and in any such event, the Escrow Agent
is authorized, in its sole discretion, but in good faith, to rely upon and comply with any such
order, writ, judgment or decree which it is advised by legal counsel selected by it is binding upon
it without the need for appeal or other action; and if the Escrow Agent complies in good faith with
any such order, writ, judgment or decree, it shall not be liable to any of the parties hereto or to
any other person or entity by reason of such compliance even though such order, writ, judgment or
decree may be subsequently reversed, modified, annulled, set aside or vacated.

     (c) The Escrow Agent shall have the right to perform any of its duties hereunder through
agents, attorneys, custodians or nominees.

     (d) Any banking association or corporation into which the Escrow Agent may be merged,
converted or with which the Escrow Agent may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Escrow Agent shall be a party, or any banking
association or corporation to which all or substantially all of the corporate trust business of the
Escrow Agent shall be transferred, shall succeed to all the Escrow Agent’s rights, obligations and
immunities hereunder without the execution or filing of any paper or any further act on the part of
any parties hereto, anything herein to the contrary notwithstanding.

     14. Indemnification of the Escrow Agent. From and at all times after the date of this
Agreement, the Parties, jointly and severally, shall, to the fullest extent permitted by law and to
the extent provided herein, indemnify and hold harmless the Escrow Agent and each director,
officer, employee, attorney, agent and affiliate of the Escrow Agent (but excluding Lacy Harber,
John Cawthron, LJH, Ltd. and TAS) (collectively, the “Indemnified Parties”) against any and
all actions, claims (whether or not valid), losses, damages, liabilities, costs and expenses of any
kind or nature whatsoever (including without limitation reasonable attorneys’ fees, costs and
expenses) incurred by or asserted against any of the Indemnified Parties from and after the date
hereof, whether direct, indirect or consequential, as a result of or arising from or in any way
relating to any claim, demand, suit, action or proceeding (including any inquiry or investigation)
by any person, including without limitation TAS or TIMCO, whether threatened or initiated,
asserting a claim for any legal or equitable remedy against any Indemnified Parties under any
statute or regulation, including, but not limited to, any federal or state securities laws, or
under any common law or equitable cause or otherwise, arising from or in connection with the
negotiation, preparation, execution, performance or failure of performance of this Agreement or any
transactions contemplated herein, whether or not any such Indemnified Party is a party to any such
action, proceeding, suit or the target of any such inquiry or investigation; provided,

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however, that no Indemnified Party shall have the right to be indemnified hereunder
for any liability finally determined by a court of competent jurisdiction, subject to no further
appeal, to have resulted solely from the gross negligence or willful misconduct of such Indemnified
Party or from the breach of this Agreement by such Indemnified Party. If any such action or claim
shall be brought or asserted against any Indemnified Party, such Indemnified Party shall promptly
notify the Parties in writing, and the Parties shall assume the defense thereof, including the
employment of counsel and the payment of all expenses. Such Indemnified Party shall, in its sole
discretion, have the right to employ separate counsel (who may be selected by such Indemnified
Party in its sole discretion) in any such action and to participate in the defense thereof, and the
reasonable fees and expenses of such counsel shall be paid by such Indemnified Party, except that
TAS and/or TIMCO shall be required to pay such reasonable fees and expenses if (a) TAS and/or TIMCO
agree to pay such fees and expenses, (b) TAS and/or TIMCO shall fail to assume the defense of such
action or proceeding or shall fail to employ counsel reasonably satisfactory to the Indemnified
Party in any such action or proceeding, (c) TAS and TIMCO are plaintiffs in any such action or
proceeding or (d) the named parties to any such action or proceeding (including any impeded
parties) include both the Indemnified Party and TAS and/or TIMCO, and the Indemnified Party shall
have been advised by counsel that principles of legal ethics prevent one counsel from representing
all of the named parties. The Parties shall be jointly and severally liable to pay fees and
expenses of counsel pursuant to the preceding sentence, except that any obligation to pay under
clause (a) shall apply only to the party so agreeing. All such fees and expenses payable by TAS
and/or TIMCO pursuant to the foregoing sentence shall be paid from time to time as incurred, both
in advance of and after the final disposition of such action or claim. All of the foregoing
losses, damages, costs and expenses of the Indemnified Parties shall be payable by the Parties,
jointly and severally, upon demand by such Indemnified Party. Notwithstanding the joint and
several liability of the Parties, each of TAS and TIMCO hereby agree to pay one-half of the
foregoing losses, damages, costs and expenses of the Indemnified Parties unless otherwise ordered
by a court of competent jurisdiction. The obligations of the Parties under this Section 14
shall survive any termination of this Agreement and the resignation or removal of Escrow Agent.

     The Parties agree that neither the payment by TAS or TIMCO of any claim by the Escrow Agent or
any Indemnified Party for indemnification hereunder nor the disbursement of any amounts to the
Escrow Agent or any Indemnified Party from the Escrow in respect of a claim by the Escrow Agent or
any Indemnified Party for indemnification shall impair, limit, modify or affect, as among the
Parties the respective rights and obligations of TAS or TIMCO under the Merger Agreement.

     No expenses or indemnification pursuant to this Agreement may be paid from the Deposit Amount.

     15. Time of Performance. Under the terms hereof, if the time for performance of any
provision shall fall on a date which is not a Business Day, the performance thereof on the next
succeeding Business Day shall be deemed to be in full compliance. Whenever time is referred to in
this Agreement, it shall be the time recognized by the Escrow Agent in the ordinary conduct of its
normal business transactions.

     16. Bankruptcy, etc. The bankruptcy, insolvency, reorganization or absence of TAS or
TIMCO shall not affect or prevent performance by the Escrow Agent of its obligations or its right
to rely upon instructions received hereunder.

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     17. Remedies of the Escrow Agent. As additional consideration for and as an
inducement for the Escrow Agent to act hereunder, it is understood and agreed that in the event of
any disagreement between the parties to this Agreement or in the event any other person or entity
claims an interest in the Escrow or any part thereof, and such disagreement or claim results in
adverse claims and demands being made by them or any of them in connection with or for any part of
the Escrow, the Escrow Agent shall pay the Escrow to the registry of a court of competent
jurisdiction for determination of the rights of TAS and TIMCO thereto, whereupon the Escrow Agent
shall have no further obligation with respect to the Escrow to either TAS or TIMCO. Anything
herein to the contrary notwithstanding, the Escrow Agent shall not be or become liable to TAS or
TIMCO for the failure of the Escrow Agent to comply with the conflicting or adverse demands of TAS
or TIMCO or of any other persons or entities claiming an interest in the Escrow or any part
thereof.

     18. Fees and Expenses.

     (a) Each of TAS and TIMCO hereby agree to pay one-half of the fees of the Escrow Agent for its
ordinary services hereunder, as determined in accordance with, and payable as specified in, the
Schedule of Fees set forth in Schedule 1 attached hereto unless otherwise ordered by a
court of competent jurisdiction. In addition, each of TAS and TIMCO hereby agrees to pay one-half
of the Escrow Agent’s reasonable expenses incurred in connection with this Agreement, including,
but not limited to, reasonable legal fees and expenses, in the event the Escrow Agent deems it
necessary to retain counsel after the date of this Agreement. Such expenses shall be paid to the
Escrow Agent within 10 days following receipt by TAS and TIMCO of a written statement setting forth
such expenses.

     (b) Each of TAS and TIMCO agrees that in the event any controversy arises under or in
connection with this Agreement or the Escrow, or the Escrow Agent is made a party to or intervenes
in any litigation pertaining to this Agreement or the Escrow, it will pay to the Escrow Agent
one-half of the reasonable compensation for its extraordinary services and reimburse the Escrow
Agent for one-half of all reasonable costs and expenses associated with such controversy or
litigation, including, but not limited to reasonable legal fees and expenses unless otherwise
ordered by a court of competent jurisdiction. The Escrow Agent shall give written notice to the
Parties prior to incurring any such fees, costs or expenses, and an estimate of the amount of such
fees, costs and expenses.

     (c) Each of TAS and TIMCO warrants and agrees with the Escrow Agent that, unless otherwise
expressly set forth in this Agreement, there is no security interest in the Escrow or any part
thereof; no financing statement under the Uniform Commercial Code of any jurisdiction is on file in
any jurisdiction claiming a security interest in or describing, whether specifically or generally,
the Escrow or any part thereof; and the Escrow Agent shall have no responsibility at any time to
ascertain whether or not any security interest exists in the Escrow or any part thereof or to file
any financing statement under the Uniform Commercial Code of any jurisdiction with respect to the
Escrow or any part thereof.

     (d) The Escrow Agent waives any right of set off or any other legal right or claim that it or
any assignee may have or assert against the Escrow, excluding only exceptions that may arise
pursuant to this Agreement. No expenses payable pursuant to Section 18 of this Agreement may be
paid from the Deposit Amount.

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     (e) In the event fees and expenses of the Escrow Agent are to be paid pursuant to Section
14 hereof, it is understood and agreed by both TAS and TIMCO that such fees and expenses are in
addition to those described above.

     19. Effective Date. The effective date of this Agreement shall be the date hereof.

     20. Termination and Resignation. Unless sooner terminated as hereinafter provided,
this Agreement shall terminate without action of any party when all of the terms hereof shall have
been fully performed.

     21. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, and such counterparts shall constitute and be one and the same instrument.

     22. Amendments. This Agreement cannot be amended or modified except by another
agreement in writing signed by all the parties hereto or by their respective successors in
interest.

     23. Headings. The paragraph headings contained herein are for convenience of
reference only and are not intended to define, limit or describe the scope or intent of any
provision of this agreement.

     24. Governing Law. This Agreement shall be deemed to have been made and shall be
construed and interpreted in accordance with the laws of the State of Texas without giving effect
to the conflict of laws principles thereof.

     25. Withholding. The Escrow Agent shall not be responsible or liable for
determination or payment of any taxes assessed against the Escrow or the income therefrom nor for
the preparation or filing of any tax returns other than withholding required by statute or treaty.
The Parties agree to provide the Escrow Agent any information necessary to perform any such
required withholding, including IRS Form W-8 or W-9, as applicable, and the Escrow Agent shall be
entitled to rely on such information. The Escrow Agent will establish the account holding the
Escrow under the EIN of TAS; if Escrow Agent is responsible for tax reporting as set forth in this
Section 25, it will be rendered under the aforementioned TIN.

     26. Notices. All notices and other communications given or made pursuant hereto shall
be in writing and shall be deemed to have been duly given or made as of the date delivered, mailed
or transmitted, and shall be effective upon receipt, if delivered personally, mailed by registered
or certified mail (postage prepaid, return receipt requested) to the parties at the following
addresses (or at such other address for a party as shall be specified by like changes of address)
or sent by electronic transmission to the facsimile numbers specified below:

	 	 	 	 	 
	 

	 	if to TAS:
	 	TAS Holding, Inc
	 

	 	 	 	c/o Cawthron, Womack & Coker, P.C.
	 

	 	 	 	First Waco Center
	 

	 	 	 	1700 N. Valley Mills Drive
	 

	 	 	 	P. O. Box 8256
	 

	 	 	 	Waco, TX 76714
	 

	 	 	 	Telephone No.: (817) 776-3871
	 

	 	 	 	Facsimile No.: (254) 776-4346
	 

	 	 	 	Attention: John Cawthron
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Bracewell & Giuliani LLP

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	 	 	 	500 N. Akard Street, Suite 4000
	 

	 	 	 	Dallas, TX 75201
	 

	 	 	 	Telephone No.: (214) 758-1000
	 

	 	 	 	Facsimile No.: (214) 758-1010
	 

	 	 	 	Attention: Michael W. Tankersley
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Beard, Kultgen, Brophy, Bostwick &
	 

	 	 	 	Dickson, LLP
	 

	 	 	 	Central Tower
	 

	 	 	 	5400 Bosque Boulevard, Suite 301
	 

	 	 	 	Waco, TX 76710
	 

	 	 	 	Telephone No.: (254) 776-5500
	 

	 	 	 	Facsimile No.: (254) 776-3591
	 

	 	 	 	Attention: Richard E. Brophy, Jr.
	 
	 	 	 	 
	 

	 	if to TIMCO:
	 	TIMCO Aviation Services, Inc.
	 

	 	 	 	623 Radar Road
	 

	 	 	 	Greensboro, NC 27410
	 

	 	 	 	Telephone No.: (336) 668-4410
	 

	 	 	 	Facsimile No: (336) 337-1867
	 

	 	 	 	Attention: CEO and CFO
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Akerman Senterfitt
	 

	 	 	 	One Southeast Third Avenue, 28th Floor
	 

	 	 	 	Miami, FL 33131
	 

	 	 	 	Telephone No.: (305) 982-5604
	 

	 	 	 	Facsimile No: (305) 374-5095
	 

	 	 	 	Attention: Philip B. Schwartz
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Richards, Layton & Finger, P.A.
	 

	 	 	 	One Rodney Square
	 

	 	 	 	P. O. Box 551
	 

	 	 	 	Wilmington, DE 19899
	 

	 	 	 	Telephone No.: (302) 658-6500
	 

	 	 	 	Facsimile No.: (302) 658-6548
	 

	 	 	 	Attention: Mark Gentile
	 
	 	 	 	 
	 

	 	If to Escrow Agent:
	 	American Bank of Texas
	 

	 	 	 	931 West Main
	 

	 	 	 	Dennison TX 75020
	 

	 	 	 	Telephone No.: (903) 463-3510
	 

	 	 	 	Facsimile No.: (903)
	 

	 	 	 	Attention: James Parker

     27. Reports. At least monthly, within ten days of the end of each calendar month, the
Escrow Agent shall provide each of the Parties, LJH and Owl Creek with a full accounting of the

10

 

Escrow, and a report of all transactions regarding the Escrow (including receipts, investments
and disbursements) not previously reported.

     28. Dealings. The Escrow Agent and any stockholder, director, officer or employee of
the Escrow Agent may buy, sell and deal in any of the securities of the Parties and become
pecuniarily interested in any transaction in which the Parties may be interested, and contract and
lend money to the Parties and otherwise act as fully and freely as though it were not Escrow Agent
under this Agreement. Nothing herein shall preclude the Escrow Agent from acting in any other
capacity for TAS or TIMCO or for any other entity. The Parties acknowledge that they are aware
that Escrow Agent is owned by LJH or an affiliate.

     29. Parties in Interest. This Agreement shall be binding upon and inure solely to the
benefit of each party hereto, and nothing in this Agreement, express or implied, is intended to or
shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or
by reason of this Agreement, provided that (i) Owl Creek is an express third party beneficiary of
this Agreement and (ii) after the effectiveness of the Merger and until such time as the Deposit
Amount is delivered to the Paying Agent, the Holders shall be express third party beneficiaries of
this Agreement. The provisions of this Agreement for their benefit may be enforced by such express
third party beneficiaries.

11

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first stated above.

	 	 	 	 	 	 	 
	TAX IDENTIFICATION NUMBER:

	 	PARTIES:
	 	 
	 
	 	 	 	 	 	 
	 	 	TAS Holding, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John R. Cawthron	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	John R. Cawthron	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TIMCO Aviation Services, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ronald Utecht	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Ronald Utecht	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ESCROW AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	American Bank of Texas, as Escrow Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James Parker	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	James Parker	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	CFO	 	 
	 

	 	 	 	 	 	 

 

 

SCHEDULE 1

FEE SCHEDULE

An administrative fee of $100 will be payable upon distribution of the Escrow.EX-10.1 (Material contracts)

 

Exhibit 10.1

RENEWAL — EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of August 3, 2006, by
and between MASTEC, INC., a Florida corporation (the “Company”), and C. ROBERT CAMPBELL
(“Employee”).

Recitals

     The Company desires to employ Employee and Employee desires to be employed by the Company on
the terms and subject to the conditions set forth in this Agreement.

     Accordingly, in consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and adequacy of which are
acknowledged, the Company and Employee agree as follows:

Terms

     1. Employment. The Company employs Employee and Employee accepts such employment and
agrees to perform the services specified in this Agreement, upon the terms and subject to the
conditions set forth in this Agreement.

     2. Term.

          a. General. The term of Employee’s employment under this Agreement will be effective
as of August 3, 2006 (the “Effective Date”) and will be run from the Effective Date to and through
August 15, 2009, unless earlier terminated in accordance with this Agreement (the “Term”).

          b. Renewal. The Company shall advise the Employee of the Company’s intention to renew
or extend Employee’s employment by February 15, 2009. If the Company advises the Employee that the
Company intends to renew or extend Employee’s employment, the parties shall execute a renewed,
extended or replacement Employment Agreement within thirty (30) days from the date the Company
advises Employee that the Company intends to renew or extend Employee’s employment. If the Company
advises the Employee that the Company does not intend to renew or extend Employee’s employment,
Employee, on completion of the initial Term set out in Section 2(a), shall be entitled to severance
as set out in Section 11(f) herein.

     3. Duties.

          a. Position. During the Term, Employee will serve as Executive Vice President and
Chief Financial Officer of the Company. Subject to the direction of the Chief Executive Officer
(CEO), Employee will perform all duties commensurate with his position and as may otherwise be
assigned to him by the CEO or the Board of Directors of the Company. If requested by the Company,
Employee will serve as an officer or director of any subsidiary of the Company, without additional
compensation. If asked to serve as an officer or director of a subsidiary of the Company, Employee
will be provided those officer and director indemnifications provided to other officers and
directors of the Company and any such subsidiary.

          b. Full Time and Attention. During the Term, Employee will devote his full business
time and energies to the business and affairs of the Company and will use his best efforts, skills
and abilities solely to promote the interests of the Company and to diligently and competently
perform his duties, all in a manner in compliance with all applicable laws and regulations and in
accordance with applicable policies and procedures adopted or amended from time to time by the
Company, including, without limitation, the Company’s Employee Handbook and the
Company’s

 

 

Personal Responsibility Code, copies of which Employee acknowledges having received.
Notwithstanding the foregoing, Employee may serve as a director on two and not more than two boards
of directors of other companies, so long as such service does not interfere with Employee’s
performance of Employee’s duties to the Company. Employee’s primary place of employment shall be
at the Company’s primary place of business in Miami-Dade County, Florida; however, Employee agrees
and acknowledges that a material part of the time devoted to his duties and position hereunder will
require that Employee travel on behalf of the Company.

     4. Compensation and Benefits.

          a. Base Salary. During the Term, Employee will be paid, as compensation for services
rendered pursuant to this Agreement and Employee’s observance and performance of all of the
provisions of this Agreement, the amount of Three Hundred and Eighty Five Thousand and No/100
Dollars ($385,000.00) per annum (the “Base Salary”). The Base Salary will be payable in
accordance with the normal payroll procedures of the Company as in effect from time to time.

          b. Benefits. During the Term, Employee will be entitled to participate in or benefit
from, in accordance with the eligibility and other provisions thereof, such life, health, medical,
accident, dental and disability insurance, use of a Company car, and such other benefit plans as
the Company may make generally available to, or have in effect for, other employees of the Company
at the same general level as Employee. The Company retains the right to terminate or amend any
such plans from time to time in its sole discretion.

          c. Performance Bonus. Employee shall be entitled to participate in the Company’s
bonus plan for senior management (the “SMBP”) and shall be eligible to receive an annual
bonus (“Performance Bonus”) in an amount up to one hundred percent (100%) of Employee’s Base
Salary.

          d. Stock Options. Employee shall receive options to purchase fifty thousand (50,000)
shares of common stock of the Company priced as of the date of execution of this Agreement and
vesting 33% on the first anniversary, 33% on the second anniversary and 34% on the third
anniversary of the Effective Date and Employee shall receive options to purchase an additional
twenty five thousand (25,000) shares of common stock of the Company priced as of the date of
execution of this Agreement and vesting 20% on the first anniversary, 20% on the second
anniversary, 20% on the third anniversary, 20% on the fourth anniversary and 20% on the fifth
anniversary of the Effective Date (the “Options”). So long as the Employee is not
terminated for Cause, as defined in Section 11c, options shall continue to vest during any
Period of Non-Competition provided the Employee honors his obligations set forth in Section 8
and thereafter as necessary until fully vested. The Options, once vested, shall remain
exercisable by Employee for the full ten (10) year term from date of grant permitted under the
applicable MasTec, Inc. Employee Stock Incentive Plan. The options will be subject to the
terms and conditions of the MasTec, Inc. Employee Stock Incentive Plan, as they may be amended
from time to time in the Company’s sole discretion.

          e. Expenses. The Company will reimburse Employee, in accordance with the Company’s
expense reimbursement policies as may be established from time to time by the Company, for all
reasonable travel and other expenses actually incurred or paid by him during the Term in the
performance of his services under this Agreement, upon presentation of expense statements or
vouchers or such other supporting information as the Company may require.

          f. Withholding. All payments under this Agreement will be subject to applicable taxes
and required withholdings.

     5. Representations of Employee. Employee represents and warrants that he is not (i)
a party to any enforceable employment agreement or other arrangement, whether written or oral, with
any past employer, that would prevent or restrict Employee’s employment with the Company; (ii) a
party to or bound by any agreement, obligation or commitment, or subject to any restriction,
including, but not limited to, confidentiality agreements, restrictive covenants or non-compete and
non-solicitation covenants, except for agreements with the Company or its affiliates; or (iii)
involved with any professional endeavors which in the future may possibly adversely affect or
interfere with the business of the Company, the full performance by Employee of his duties under
this Agreement or the exercise of his best efforts hereunder.

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     6. Confidentiality.

          a. Confidentiality of this Agreement. Employee acknowledges that the provisions of
this Agreement are highly confidential and that disclosure of this Agreement or its terms would be
extremely prejudicial to the Company. Accordingly, neither the Company nor Employee will disclose
the terms of this Agreement to any other person or entity (other than immediate family and
financial and legal advisors with a need-to-know and who agree to the confidentiality provisions of
this Agreement) without the prior written consent of the other party, except that (i) the Company
may disclose this Agreement or its terms if in the reasonable opinion of counsel for the Company
such disclosure is required by applicable law or regulation; and, (ii) Employee may disclose this
Agreement in court filings or pleadings by Employee to enforce its terms and conditions or as
otherwise may be necessary to comply with the requirements of law, after providing the Company with
not less than five (5) days prior written notice of Employee’s intent to disclose.

          b. Confidential Information. Employee acknowledges that as a result of his employment
with the Company, Employee will gain knowledge of, and access to, proprietary and confidential
information and trade secrets of the Company and its subsidiaries and affiliates, including,
without limitation, (1) the identity of customers, suppliers, subcontractors and others with whom
they do business; (2) their marketing methods and strategies; (3) contract terms, pricing, margin,
cost information and other information regarding the relationship between them and the persons and
entities with which they have contracted; (4) their services, products, software, technology,
developments, improvements and methods of operation; (5) their results of operations, financial
condition, projected financial performance, sales and profit performance and financial
requirements; (6) the identity of and compensation paid to their employees, including Employee; (7)
their business plans, models or strategies and the information contained therein; (8) their
sources, leads or methods of obtaining new business; and (9) all other confidential information of,
about or concerning the business of the Company and its subsidiaries and affiliates (collectively,
the “Confidential Information”). Employee further acknowledges that such information, even
though it may be contributed, developed or acquired by Employee, and whether or not the foregoing
information is actually novel or unique or is actually known by others, constitutes valuable assets
of the Company developed at great expense which are the exclusive property of the Company or its
subsidiaries and affiliates. Accordingly, Employee will not, at any time, either during or
subsequent to the Term, in any fashion, form or manner, directly or indirectly, (i) use, divulge,
disclose, communicate, provide or permit access to any person or entity, any Confidential
Information of any kind, nature or description, or (ii) remove from the Company’s or its
subsidiaries’ or affiliates’ premises any notes or records relating thereto, or copies or
facsimiles thereof (whether made by electronic, electrical, magnetic, optical, laser acoustic or
other means) except in the case of both (i) and (ii), (A) as reasonably required in the performance
of his services to the Company under this Agreement, (B) to responsible officers and employees of
the Company who are in a contractual or fiduciary relationship with the Company and who have a need
for such information for purposes in the best interests of the Company, (C) for such information
which is or becomes generally available to the public other than as a result of an unauthorized
disclosure by Employee, and (D) or as otherwise necessary to comply with the requirements of law,
after providing the Company with not less than five (5) days prior written notice of Employee’s
intent to disclose. Employee acknowledges that the Company would not enter into this Agreement
without the assurance that all Confidential Information will be used for the exclusive benefit of
the Company.

          c. Return of Confidential Information. Upon request by the Company, Employee will
promptly deliver to the Company all drawings, manuals, letters, notes, notebooks, reports and
copies thereof, including all originals and copies contained in computer hard drives or other
electronic or machine readable format, all Confidential Information and other materials relating to
the Company’s business, including, without limitation, any materials incorporating Confidential
Information, which are in Employee’s possession or control.

     7. Intellectual Property. Any and all material eligible for copyright or trademark
protection and any and all ideas and inventions (“Intellectual Property”), whether or not
patentable, in any such case solely or jointly made, developed, conceived or reduced to practice by
Employee (whether at the request or suggestion of any officer or employee of the Company or
otherwise, whether alone or in conjunction with others, and whether during regular hours of work or
otherwise) during the Term which arise from the fulfillment of Employee’s duties hereunder and
which may be directly or indirectly useful in the business of the Company will be promptly and
fully disclosed in writing to the Company. The Company will have the entire right, title and
interest (both domestic and foreign) in and to such Intellectual Property, which is the sole
property of the Company. All papers, drawings, models, data and other materials relating to
any such idea, material or invention will be included in the definition of
Confidential Information, will remain the sole property of the Company, and Employee will return to
the Company all such papers, and all copies thereof, including all originals and copies contained
in computer hard drives or other electronic or machine readable format, upon

3

 

the earlier of the Company’s request therefore, or the expiration or termination of Employee’s employment hereunder.
Employee will execute, acknowledge and deliver to the Company any and all further assignments,
contracts or other instruments the Company deems necessary or expedient, without further
compensation, to carry out and effectuate the intents and purposes of this Agreement and to vest in
the Company each and all of the rights of the Company in the Intellectual Property.

     8. Covenants.

          a. Non-Competition  —  and Non-Solicitation. Employee acknowledges and agrees that
the Company’s and its subsidiary and affiliated companies’ (collectively, the “Companies”)
existing or contemplated businesses (the “Business”) are conducted throughout the United
States of America and the Commonwealth of Canada. Until one (1) year following the date of the
termination of Employee’s employment with the Company (the “Period of Non-Competition”) and
within the United States of America and the Commonwealth of Canada (including their possessions,
protectorates and territories, the “Territory”), Employee will not (whether or not then employed by
the Company for any reason), without the Company’s prior written consent:

               (i) directly or indirectly own, manage, operate, control, be employed by, act as agent,
consultant or advisor for, or participate in the ownership, management, operation or control of, or
be connected in any manner through the investment of capital, lending of money or property,
rendering of services or otherwise, with, any business of the type and character engaged in and
competitive with the Business. For these purposes, ownership of securities of one percent (1%) or
less of any class of securities of a public company will not be considered to be competition with
the Business;

               (ii) solicit, persuade or attempt to solicit or persuade or cause or authorize directly or
indirectly to be solicited or persuaded any existing customer or client, or potential customer or
client to which the Companies have made a presentation or with which the Companies have been having
discussions, to cease doing business with or decrease the amount of business done with or not to
hire the Companies, or to commence doing Business with or increase the amount of Business done with
or hire another company;

               (iii) solicit, persuade or attempt to solicit or persuade or cause or authorize directly or
indirectly to be solicited or persuaded the business of any person or entity that is a customer or
client of the Companies, or was their customer or client within two (2) years prior to cessation of
Employee’s employment by any of the Companies or any of their subsidiaries, for the purpose of
competing with the Business; or

               (iv) solicit, persuade or attempt to solicit or persuade, or cause or authorize directly or
indirectly to be solicited or persuaded for employment, or employ or cause or authorize directly or
indirectly to be employed, on behalf of Employee or any other person or entity, any individual who
is or was at any time within six (6) months prior to cessation of Employee’s employment by the
Companies, an employee of any of the Companies.

     If Employee breaches or violates any of the provisions of this Section 8, the running
of the Period of Non-Competition (but not of any of Employee’s obligations under this Section
8) will be tolled with respect to Employee during the continuance of any actual breach or
violation. In addition to any other rights or remedies the Company may have under this Agreement
or applicable law, the Company will be entitled to receive from Employee reimbursement for all
attorneys’ and paralegal fees and expenses and court costs incurred by the Companies in enforcing
this Agreement and will have the right and remedy to require Employee to account for and pay over
to the Company all compensation, profits, monies, accruals or other benefits derived or received,
directly or indirectly, by Employee from the action constituting a breach or violation of this
Section 8.

          b. Exceptions. Telecommunications operators (such as Sprint, MCI, AT&T) cable
companies and other non construction or installation customers of the Company shall not be
considered engaged in and competitive with the Business.

     9. Reasonable Restrictions. The parties acknowledge and agree that the restrictions
set forth in Sections 6, 7 and 8 of this Agreement are reasonable
for the purpose of protecting the value of the business and goodwill of the Companies. It is the
desire and intent of the parties that the provisions of Sections 6, 7 and
8 be enforced to the fullest extent permissible under the laws and public policies applied
in each jurisdiction in which enforcement is sought. If any particular provisions or portions of
Sections 6, 7 and 8 are adjudicated to be invalid or unenforceable,
then such section

4

 

will be deemed amended to delete such provision or portion adjudicated to be
invalid or unenforceable; provided, however, that such amendment is to apply only with the respect
to the operation of such section in the particular jurisdiction in which such adjudication is made.

     10. Breach or Threatened Breach. The parties acknowledge and agree that the
performance of the obligations under Sections 6, 7 and 8 by Employee are
special, unique and extraordinary in character, and that in the event of the breach or threatened
breach by Employee of the terms and conditions of Sections 6, 7 or 8, the
Companies will suffer irreparable injury and that monetary damages would not provide an adequate
remedy at law and that no remedy at law may exist. Accordingly, in the event of such breach or
threatened breach, the Company will be entitled, if it so elects and without the posting of any
bond or security, to institute and prosecute proceedings in any court of competent jurisdiction, in
law and in equity, to obtain damages for any breach of Sections 6, 7 or 8
or to enforce the specific performance of this Agreement by Employee or to enjoin Employee from
breaching or attempting to breach Sections 6, 7 or 8. In the event the
Company believes that the Employee has breached Employee’s obligations under Sections 6, 7 or
8, or threatens to do so, it shall promptly provide the Employee written notice of such belief
setting forth the basis for its belief and, (unless under exigent circumstances, as determined by
the Company at its sole discretion, it would harm the Company to delay the institution of legal
proceedings) five (5) business days to respond to the notice, prior to the initiation of legal
proceedings.

     11. Termination. This Agreement and Employee’s employment under this Agreement may be
terminated upon the occurrence of any of the events described in, and subject to the terms of, this
Section 11:

          a. Death. Immediately and automatically upon the death of Employee.

          b. Disability. At the Company’s option, immediately upon written notice if Employee
suffers a “permanent disability,” meaning any incapacity, illness or disability of Employee
which renders Employee mentally or physically unable to perform his duties under this Agreement for
a continuous period of sixty (60) days, or one hundred twenty (120) days (whether or not
consecutive), during the Term, as reasonably determined by the Company.

          c. Termination for Cause. At the Company’s option, immediately upon notice to
Employee, upon the occurrence of any of the following events (each “Cause”), (i) Employee
being convicted of any felony (whether or not against the Company or its subsidiaries or
affiliates); (ii) a material failure of Employee to perform Employee’s responsibilities after ten
(10) days’ written notice given by an Executive Officer to Employee, which notice shall identify
the Employee’s failure in sufficient detail and grant Employee an opportunity to cure such failure
within such ten (10) day period (“Notice”); (iii) a breach by Employee of any of his obligations
under Sections 6, 7 or 8; (iv) any material act of dishonesty or other misconduct by
Employee against the Company or any of its subsidiaries or affiliates; (v) a material violation by
Employee of any of the policies or procedures of the Company or any of its subsidiaries or
affiliates, including without limitation the Employee Handbook or Personal Responsibility Code,
provided, however, that if such violation is curable, then Employee will be given ten (10) days’
written notice and the opportunity to cure such violation; or (vi) Employee voluntarily terminates
this Agreement or leaves the employ of the Company or its subsidiaries or affiliates for any
reason, other than Good Reason.

          d. Termination Without Cause. At the Company’s option for any reason, or no reason,
upon five (5) days’ notice to Employee given by the CEO.

          e. Termination with Good Reason. At Employee’s option, upon not less than fifteen
(15) business days’ written notice to the Company, and the Company’s failure to cure within such
fifteen (15) business days, upon the occurrence of any of the following events (each “Good
Reason”) (i) the material diminution of, Employee’s position, duties, titles, offices and
responsibilities with the Company; (ii) a reduction or material delay in payment of Employee’s
compensation and benefits; (iii) a relocation of the Company’s principal executive offices outside
of Miami-Dade or Broward Counties, Florida; or (iv) a breach of any other material provision of
this Agreement by the Company.

          f. Payments After Termination. If this Agreement and Employee’s employment hereunder
are terminated for the reasons set forth in Sections 11(a) or 11(b), then Employee
or Employee’s estate will receive the Base Salary and any Performance Bonus earned through the date
of death or disability to which Employee would have been entitled for the year in which the death
or disability occurred in accordance with the terms of this Agreement, and all of Employee’s Stock
Options shall immediately vest. If the Company terminates this Agreement and Employee’s

5

 

employment hereunder for the reasons set forth in Section 11(c)(i-vi), then (i) Employee will receive
his Base Salary through the date of termination and (ii) Employee will forfeit any entitlement that
Employee may have to receive any performance bonus. If this Agreement is terminated for the reason
set forth in Section 11(d) or Section 11(e), then (i) Employee will receive his
Base Salary, and benefits set forth in Section 4(b) hereof (collectively, with the payment of the
Base Salary, the “Severance Benefits”), until the expiration of the Term. If this
Agreement is terminated by reason of the Company’s notice to Employee that the Company does not
intend to renew or extend Employee’s employment, as allowed per Section 2(b), then Employee, on
completion of the initial term of this Agreement, will receive the Severance Benefits for a period
of six (6) months from the last day of the initial term of this Agreement. The Severance Benefits
shall be payable in accordance with the Company’s payroll procedures and subject to applicable
withholdings. Employee will forfeit any entitlement that Employee may have to receive any
performance bonus and, upon payment by the Company of the amounts described in this Section
11(f), Employee will not be entitled to receive any further compensation or benefits from the
Company whatsoever.

          g. General. Notwithstanding anything to the contrary set forth in this Agreement, the
provision of payments after termination in accordance with the provisions of Section 11(f)
above, shall not be a bar to the Employee’s continued entitlement from the Company of (i)
reimbursements of proper expenses, (ii) housing, automobile and expense allowances, (iii) vested
benefit and welfare entitlements; (iv) unemployment compensation, (v) workers compensation
benefits, (vi) accrued vacation time (if consistent with Company policy), (vii) Base Salary through
date of termination. Notwithstanding anything in this Agreement to the contrary, if Employee is
employed by the Company for an entire calendar year (e.g., the 2005 calendar year) and is
terminated for any reason prior to the payment of a bonus, if any, the Company hereby agrees to pay
Employee any bonus that he would have otherwise been entitled to hereunder or the SMBP,
simultaneous with the payment of such bonus to the Company’s employees, and (viii) continued
vesting of options as may be provided in accordance with the provisions of this Agreement or any
stock option plan.

Change of Control. If, prior to the completion of the Term, there occurs a Change in
Control, as defined in Exhibit A, then and in that case only, in lieu of any of vesting schedules
previously described in this Agreement, all Employee’s options then outstanding shall immediately
vest. All other provisions of this Agreement shall remain unchanged.

     12. Miscellaneous.

          a. Survival. The provisions of Sections 6, 7, 8, 10
and 11 will survive the termination or expiration of this Agreement for any reason.

          b. Entire Agreement. This Agreement constitutes the entire agreement of the parties
pertaining to its subject matter and supersedes all prior or contemporaneous agreements or
understandings between the parties pertaining to the subject matter of this Agreement, and there
are no promises, agreements, conditions, undertakings, warranties, or representations, whether
written or oral, express or implied, between the parties other than as set forth in this Agreement.

          c. Modification. This Agreement may not be amended or modified, or any provision
waived, unless in writing and signed by both parties.

          d. Waiver. Failure of a party to enforce one or more of the provisions of this
Agreement or to require at any time performance of any of the obligations of this Agreement will
not be construed to be a waiver of such provisions by such party nor to in any way affect the
validity of this Agreement or such party’s right thereafter to enforce any provision of this
Agreement, nor to preclude such party from taking any other action at any time which it would
legally be entitled to take.

          e. Successors and Assigns. This Agreement may not be assigned or the duties delegated
unless in writing and signed by both parties, except for any assignment by the Company occurring by
operation of law. Subject to the foregoing, this Agreement will inure to the benefit of, and be binding upon, the
parties and their heirs, beneficiaries, personal representatives, successors and permitted assigns.

          f. Notices. Any notice, demand, consent, agreement, request, or other communication
required or permitted under this Agreement will be in writing and will be, (i) mailed by
first-class mail, registered or certified, return receipt requested, postage prepaid, (ii)
delivered personally by independent courier, or (iii) transmitted by

6

 

facsimile, to the parties at the addresses as follows (or at such other addresses as will be specified by the parties by like
notice):

If to Employee, then to:

C. Robert Campbell

700 Biltmore Way, Apt. 1110

Coral Gables, FL 33134

If to the Company, then to:

MasTec, Inc.

800 Douglas Road, Suite 1200

Coral Gables, Florida 33134

Attn: Legal Department

Facsimile: (305) 406-1907

Each party may designate by notice in writing a new address to which any notice, demand, consent,
agreement, request or communication may thereafter be given, served or sent. Each notice, demand,
consent, agreement, request or communication that is mailed, hand delivered or transmitted in the
manner described above will be deemed received for all purposes at such time as it is delivered to
the addressee (with the return receipt, the courier delivery receipt or the telecopier answerback
confirmation being deemed conclusive evidence of such delivery) or at such time as delivery is
refused by the addressee upon presentation.

          g. Severability. If any provision of this Agreement is held to be invalid or
unenforceable by a court of competent jurisdiction, then such invalidity or unenforceability will
not affect the validity and enforceability of the other provisions of this Agreement and the
provision held to be invalid or unenforceable will be enforced as nearly as possible according to
its original terms and intent to eliminate such invalidity or unenforceability.

          h. Counterparts. This Agreement may be executed in any number of counterparts, and
all counterparts will collectively be deemed to constitute a single binding agreement.

          i. Governing Law; Venue. This Agreement will be governed by the laws of the State of
Florida, without regard to its conflicts of law principles. Employee consents to the jurisdiction
of any state or federal court located within Miami-Dade County, State of Florida, and consents that
all service of process may be made by registered or certified mail directed to Employee at the
address stated in Section 13 (f) of this Agreement. Employee waives any objection which
Employee may have based on lack of personal jurisdiction or improper venue or forum non
conveniens to any suit or proceeding instituted by the Company under this Agreement in any
state or federal court located within Miami-Dade County, Florida and consents to the granting of
such legal or equitable relief as is deemed appropriate by the court. This provision is a material
inducement for the Company to enter into this Agreement with Employee.

          j. Participation of Parties. The parties acknowledge that this Agreement and all
matters contemplated herein have been negotiated between both of the parties and their respective
legal counsel and that both parties have participated in the drafting and preparation of this
Agreement from the commencement of negotiations at all times through execution. Therefore, the
parties agree that this Agreement will be interpreted and construed without reference to any rule
requiring that this Agreement be interpreted or construed against the party causing it to be
drafted.

          k. Injunctive Relief. It is possible that remedies at law may be inadequate and,
therefore, the parties will be entitled to equitable relief including, without limitation,
injunctive relief, specific performance or other equitable remedies in addition to all other
remedies provided hereunder or available to the parties hereto at law or in equity.

          l. Waiver of Jury Trial. EACH OF THE COMPANY AND EMPLOYEE IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE
PROVISIONS OF THIS AGREEMENT.

7

 

          m. Right of Setoff. The Company will be entitled, in its discretion and in addition
to any other remedies it may have in law or in equity, to set-off against any amounts payable to
Employee under this Agreement or otherwise the amount of any obligations of Employee to the Company
under this Agreement that are not paid by Employee when due. In the event of any such setoff, the
Company will promptly provide the Employee with a written explanation of such setoff, and an
opportunity to register a written protest thereof.

          n. Litigation; Prevailing Party. In the event of any litigation, administrative
proceeding, arbitration, mediation or other proceeding with regard to this Agreement, the
prevailing party will be entitled to receive from the non-prevailing party and the non-prevailing
party will pay upon demand all court costs and all reasonable fees and expenses of counsel and
paralegals for the prevailing party.

          o. Descriptive Headings. The descriptive headings herein are inserted for convenience
only and are not intended to be part of or to affect the meaning or interpretation of this
Agreement.

          p. Compliance with Section 409A: To the extent the Employee would otherwise be
entitled to any payment (whether pursuant to this Agreement or otherwise) during the six months
beginning on termination of employment, that would be subject to the additional tax imposed under
Section 409A of the Code (“Section 409A”), (i) the payment will not be made and (ii) the payment,
with interest at the rate being paid by the Company on its senior credit facility (the “Senior
Credit Interest Rate”) determined as of the date of termination of the Employee’s employment, will
be paid to the Employee on the earlier of the six-month anniversary of the Employee’s date of
termination of employment or the Employee’s death or disability (within the meaning of Section
409A). Similarly, to the extent the Employee otherwise would be entitled to any benefit (other
than a payment) during the six months beginning on termination of employment that would be subject
to the Section 409A additional tax, the benefit will be delayed and will begin being provided
(together, if applicable, with an adjustment to compensate the Employee for the delay) on the
earlier of the six-month anniversary of the date of termination, death or disability (within the
meaning of Section 409A). It is the Company’s intention that the benefits and rights to which the
Employee could become entitled in connection with termination of employment comply with Section
409A. If the Employee or the Company believes, at any time, that any of such benefit or right does
not comply, it will promptly advise the other and will negotiate reasonably and in good faith to
amend the terms of such arrangement such that it complies.

EXECUTED as of the 3rd day of August, 2006.

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	/s/ C. Robert Campbell
 	 
	 	C. Robert Campbell 	 
	 	 	 
	 
	 	MASTEC, INC.

 	 
	 	By:  	/s/Austin Shanfelter
 	 
	 	 	Austin Shanfelter, Chief Executive Officer 	 
	 	 	 	 

8

 

	 	 	 	 	 

EXHIBIT A

“Change in Control” shall mean:

	(a)	 	Acquisition By Person of Substantial Percentage. The acquisition by a
Person (including “affiliates” and “associates” of such Person, but excluding the
Company, any “parent” or “subsidiary” of the Company, or any employee benefit plan of
the Company) of a sufficient number of shares of the Common Stock, or securities
convertible into the Common Stock, and whether through direct acquisition of shares or
by merger, consolidation, share exchange, reclassification of securities or
recapitalization of or involving the Company or any “parent” or “subsidiary” of the
Company, to constitute the Person the actual or beneficial owner of 51% or more of the
Common Stock.;
	 
	(b)	 	Disposition of Assets. Any sale, lease, transfer, exchange, mortgage,
pledge or other disposition, in one transaction or a series of transactions, of all or
substantially all of the assets of the Company or of any “subsidiary” of the Company to
a Person described in subsection (a) above, but only if such transaction occurs without
approval or ratification by a majority of the members of the Board; or
	 
	(c)	 	Substantial Change of Board Members. During any fiscal year of the
Company, individuals who at the beginning of such year constitute the Board cease for
any reason to constitute at least a majority thereof, unless the election of each
director who was not a director at the beginning of such period has been approved in
advance by a majority of the directors in office at the beginning of the fiscal year.

For purposes of this Section, the terms “affiliate,” “associate,” “parent” and “subsidiary”
shall have the respective meanings ascribed to such terms in Rule 12b-2 under Section 12 of
the 1934 Act.

9

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