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Exhibit 10.6  

 
 

INFRASOURCE SERVICES, INC.    
    
    2004 OMNIBUS STOCK INCENTIVE PLAN    
    

Section 1.    General Purpose of Plan; Definitions.    

        The
name of this plan is the InfraSource Services, Inc. 2004 Omnibus Stock Incentive Plan (the "Plan"). The Plan was adopted by the Board (defined below) on
[date], subject to the approval of the stockholders of the Company (defined below). The purpose of the Plan is to enable the Company to attract and retain highly qualified
personnel who will contribute to the Company's success and to provide incentives to Participants (defined below) that are linked directly to increases in stockholder value and will therefore inure to
the benefit of all stockholders of the Company. 

        For
purposes of the Plan, the following terms shall be defined as set forth below: 

        (a)   "Administrator" means the Board, or if and to the extent the Board does not administer the Plan, the Committee in
accordance with Section 2 below. 

        (b)   "Board" means the Board of Directors of the Company. 

        (c)   "Code" means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 

        (d)   "Committee" means any committee the Board may appoint to administer the Plan. To the extent necessary and desirable, the
Committee shall be composed entirely of individuals who meet the qualifications referred to in Section 162(m) of the Code and Rule 16b-3 under the Exchange Act. If at any
time or to any extent the Board shall not administer the Plan, then the functions of the Board specified in the Plan shall be exercised by the Committee. 

        (e)   "Company" means InfraSource Services, Inc., a Delaware corporation (or any successor corporation). 

        (f)    "Deferred Stock" means the right to receive Stock at the end of a specified deferral period granted pursuant to
Section 7 below. 

        (g)   "Disability" means with respect to any Participant, Disability as defined in the Management Agreement between the Company
(or its Subsidiary) and such Participant, or in the absence of any such Management Agreement defining Disability, the inability of a Participant to perform substantially his or her duties and
responsibilities to the Company or to any Parent or Subsidiary by reason of a physical or mental disability or infirmity (i) for a continuous period of six months, or (ii) at such
earlier time as the Participant submits medical evidence satisfactory to the Administrator that the Participant has a physical or mental disability or infirmity that will likely prevent the
Participant from returning to the performance of the Participant's work duties for six months or longer. The date of such Disability shall be the last day of such six-month period or the
day on which the Participant submits such satisfactory medical evidence, as the case may be. 

        (h)   "Eligible Recipient" means an officer, director, employee, consultant or advisor of the Company or of any Parent or
Subsidiary. 

        (i)    "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time. 

        (j)    "Fair Market Value" means, as of any given date, with respect to any awards granted hereunder, (A) the closing
sale price of a share of Stock on such date on the principal securities exchange on which the Company's equity securities are listed or traded, (B) the fair market value of a share of Stock as
determined in accordance with a method prescribed in the agreement evidencing any award hereunder, or (C) the fair market value of a share of Stock as otherwise determined by the Administrator
in the good faith exercise of its discretion. 

 

        (k)   "Incentive Stock Option" means any Stock Option intended to be designated as an "incentive stock option" within the
meaning of Section 422 of the Code. 

        (l)    "Non-Qualified Stock Option" means any Stock Option that is not an Incentive Stock Option, including any
Stock Option that provides (as of the time such Stock Option is granted) that it will not be treated as an Incentive Stock Option. 

        (m)  "Parent" means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if
each of the corporations in the chain (other than the Company) owns stock possessing 50% or more of the combined voting power of all classes of stock in one of the other corporations in the chain. 

        (n)   "Participant" means any Eligible Recipient selected by the Administrator, pursuant to the Administrator's authority in
Section 2 below, to receive grants of Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock, or Performance Shares or any combination of the foregoing. 

        (o)   "Performance Shares" means shares of Stock that are subject to restrictions based upon the attainment of specified
performance objectives granted pursuant to Section 7 below. 

        (p)   "Registration Statement" means the registration statement on Form S-1 filed with the Securities and
Exchange Commission for the initial underwritten public offering of the Company's Stock. 

        (q)   "Restricted Stock" means shares of Stock subject to certain restrictions granted pursuant to Section 7 below. 

        (r)   "Stock" means the common stock, par value $0.001 per share, of the Company. 

        (s)   "Stock Appreciation Right" means the right pursuant to an award granted under Section 6 below to receive an amount
equal to the excess, if any, of (A) the Fair Market Value, as of the date such Stock Appreciation Right or portion thereof is surrendered, of the shares of Stock covered by such right or such
portion thereof, over (B) the aggregate exercise price of such right or such portion thereof. 

        (t)    "Stock Option" means an option to purchase shares of Stock granted pursuant to Section 5 below. 

        (u)   "Subsidiary" means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company, if each of the corporations (other than the last corporation) in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in the chain. 

Section 2.    Administration.    

        The
Plan shall be administered in accordance with the requirements of Section 162(m) of the Code (but only to the extent necessary and desirable to maintain qualification of
awards under the Plan under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act ("Rule 16b-3"), by the Board or,
at the Board's sole discretion, by the Committee, which shall be appointed by the Board, and which shall serve at the pleasure of the Board. 

        Pursuant
to the terms of the Plan, the Administrator shall have the power and authority to grant to Eligible Recipients pursuant to the terms of the Plan: (a) Stock Options,
(b) Stock Appreciation Rights, (c) awards of Restricted Stock, Deferred Stock or Performance Shares or (d) any combination of the foregoing. The Administrator shall have the
authority: 

        (a)   to
select those Eligible Recipients who shall be Participants; 

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        (b)   to
determine whether and to what extent Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or a combination of
any of the foregoing, are to be granted hereunder to Participants; 

        (c)   to
determine the number of shares of Stock to be covered by each award granted hereunder; 

        (d)   to
determine the terms and conditions, not inconsistent with the terms of the Plan, of each award granted hereunder (including, but not limited to, (x) the
restrictions applicable to awards of Restricted Stock or Deferred Stock and the conditions under which restrictions applicable to such awards of
Restricted Stock or Deferred Stock shall lapse, and (y) the performance goals and periods applicable to awards of Performance Shares); 

        (e)   to
determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all written instruments evidencing Stock Options, Stock
Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or any combination of the foregoing granted hereunder; and 

        (f)    to
reduce the option price of any Stock Option to the then current Fair Market Value if the Fair Market Value of the Stock covered by such Stock Option has declined
since the date such Stock Option was granted. 

        The
Administrator shall have the authority, in its sole discretion, to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from
time to time deem advisable; to interpret the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration
of the Plan. 

        All
decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants. 

Section 3.    Stock Subject to Plan.    

        The
total number of shares of Stock reserved and available for issuance under the Plan shall be 800,000 shares provided however, that commencing on the first day of the Company's fiscal
year beginning in calendar year 2005, the number of shares reserved and available for issuance shall be increased by an amount equal to the lesser of (i) 1,000,000 shares or (ii) two
percent (2%) of the number of outstanding shares of Common Stock on the last day of the immediately preceding fiscal year. Such shares may consist, in whole or in part, of authorized and unissued
shares or treasury shares. The aggregate number of shares of Stock as to which Stock Options, Stock Appreciation Rights, and awards of Restricted Stock, Deferred Stock and Performance Shares may be
granted to any Participant during any calendar year may not, subject to adjustment as provided in this Section 3, exceed 800,000 shares of Stock reserved for the purposes of the Plan. 

        To
the extent that (i) a Stock Option expires or is otherwise terminated without being exercised, or (ii) any shares of Stock subject to any award of Restricted Stock,
Deferred Stock or Performance Shares granted hereunder are forfeited, such shares of Stock shall again be available for issuance in connection with future awards granted under the Plan. If any shares
of Stock have been pledged as collateral for indebtedness incurred by a Participant in connection with the exercise of a Stock Option and such shares of Stock are returned to the Company in
satisfaction of such indebtedness, such shares of Stock shall again be available for issuance in connection with future awards granted under the Plan. 

        In
the event of any merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate structure affecting the Stock, an equitable substitution or
proportionate adjustment shall be made in (i) the aggregate number of shares of Stock reserved for issuance under the Plan and the maximum number of shares of Stock that may be granted to any
Participant in any calendar year, (ii) the kind, number and option price of shares of Stock subject to outstanding Stock Options and 

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Stock
Appreciation Rights granted under the Plan, and (iii) the kind, number and purchase price of shares of Stock subject to outstanding awards of Restricted Stock, Deferred Stock and
Performance Shares granted under the Plan, in each case as may be determined by the Administrator, in its sole discretion. Such other substitutions or adjustments shall be made as may be determined by
the Administrator, in its sole discretion. An adjusted option price shall also be used to determine the amount payable by the Company upon the exercise of any Stock Appreciation Right related to any
Stock Option. In connection with any event described in this paragraph, the Administrator may provide, in its sole discretion, for the cancellation of any outstanding awards and payment in cash or
other property therefor. 

Section 4.    Eligibility.    

        Eligible
Recipients shall be eligible to be granted Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or any combination of the
foregoing hereunder. The Participants under the Plan shall be selected from time to time by the Administrator, in its sole discretion, from among the Eligible Recipients, and the Administrator shall
determine, in its sole discretion, the number of shares of Stock covered by each such award. 

Section 5.    Stock Options.    

        Stock
Options may be granted alone or in addition to other awards granted under the Plan. Any Stock Option granted under the Plan shall be in such form as the Administrator may from time
to time approve, and the provisions of Stock Option awards need not be the same with respect to each Participant. Participants who are granted Stock Options shall enter into a subscription and/or
award agreement with the Company, in such form as the Administrator shall determine, which agreement shall set forth, among other things, the option price of the Stock Option, the term of the Stock
Option and provisions regarding exercisability of the Stock Option granted thereunder. 

        The
Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options. 

        The
Administrator shall have the authority to grant to any officer or employee of the Company or of any Parent or Subsidiary (including directors who are also officers of the Company)
Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options (in each case with or without Stock Appreciation Rights). Directors who are not also officers of the
Company or of any Parent or Subsidiary, consultants or advisors to the Company or to any Parent or Subsidiary may only be granted Non-Qualified Stock Options (with or without Stock
Appreciation Rights). To the extent that any Stock Option does not qualify as an Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option. More than one Stock
Option may be granted to the same Participant and be outstanding concurrently hereunder. 

        Stock
Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the
Plan, as the Administrator shall deem desirable: 

        (a)    Option Price.    The option price per share of Stock purchasable under a Stock Option shall be determined by
the Administrator in its sole discretion at the time of grant but shall not, (i) in the case of Incentive Stock Options, be less than 100% of the Fair Market Value of the Stock on such date,
(ii) in the case of Non-Qualified Stock Options intended to qualify as "performance-based compensation" within the meaning of Section 162(m) of the Code, be less than 100% of
the Fair Market Value of the Stock on such date and (iii) in any event, be less than the par value (if any) of the Stock. If a Participant owns or is deemed to own (by reason of the attribution
rules applicable under Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company or of any Parent or Subsidiary and an Incentive Stock Option
is granted to such Participant, the option price of such Incentive Stock 

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Option
(to the extent required at the time of grant by the Code shall be no less than 110% of the Fair Market Value of the Stock on the date such Incentive Stock Option is granted. 

        (b)    Option Term.    The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be
exercisable more than ten years after the date such Stock Option is granted; provided, however, that if
an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company or of
any Parent or Subsidiary and an Incentive Stock Option is granted to such employee, the term of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no more
than five years from the date of grant. 

        (c)    Exercisability.    Stock Options shall be exercisable at such time or times and subject to such terms and
conditions as shall be determined by the Administrator at or after the time of grant. The Administrator may provide at the time of grant, in its sole discretion, that any Stock Option shall be
exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may determine, in
its sole discretion,
including but not limited to in connection with any "change in control" of the Company (as defined in the agreement evidencing such Stock Option). 

        (d)    Method of Exercise.    Subject to paragraph (c) of this Section 5, Stock Options may be exercised
in whole or in part at any time during the option period, by giving written notice of exercise to the Company specifying the number of shares of Stock to be purchased, accompanied by payment in full
of the purchase price in cash or its equivalent, as determined by the Administrator. As determined by the Administrator, in its sole discretion, payment in whole or in part may also be made
(i) by means of any cashless exercise procedure approved by the Administrator, (ii) in the form of unrestricted Stock already owned by the Participant which, (x) in the case of
unrestricted Stock acquired upon exercise of an option, have been owned by the Participant for more than six months on the date of surrender, and (y) has a Fair Market Value on the date of
surrender equal to the aggregate option price of the Stock as to which such Stock Option shall be exercised and the minimum statutory withholding taxes with respect thereto, (iii) any other
form of consideration approved by the Administrator and permitted by applicable law or (iv) any combination of the foregoing. A Participant shall generally have the rights to dividends and any
other rights of a stockholder with respect to the Stock subject to the Stock Option only after the Participant has given written notice of exercise, has paid in full for such shares, and, if
requested, has given the representation described in paragraph (b) of Section 10 below. 

        Notwithstanding
anything to the contrary contained herein, a Stock Option may not be exercised for a fraction of a share of Stock. 

        The
Administrator may require the surrender of all or a portion of any Stock Option granted under the Plan as a condition precedent to the grant of a new Stock Option. Subject to the
provisions of the Plan, such new Stock Option shall be exercisable at the price, during such period and on such other terms and conditions as are specified by the Administrator at the time the new
Stock Option is granted. Consistent with the provisions of Section 162(m), to the extent applicable, upon their surrender, Stock Options shall be canceled and the shares of Stock previously
subject to such canceled Stock Options shall again be available for future grants of Stock Options and other awards hereunder. 

        (e)    Non-Transferability of Options.    Except under the laws of descent and distribution or as
otherwise permitted by the Administrator, the Participant shall not be permitted to sell, transfer, pledge or assign any Option, and all Options shall be exercisable, during the Participant's
lifetime, only by the Participant; provided, however, that the Participant shall be permitted to transfer one or more Non-Qualified Stock Options to a trust, partnership, limited liability
company or corporation (or other entity approved by the Administrator in its sole discretion) controlled by the Participant during the Participant's lifetime for estate planning purposes. 

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        (f)    Termination of Employment or Service.    If a Participant's employment with or service as a director,
consultant or advisor to the Company or to any Parent or Subsidiary terminates by reason of his or her death, Disability or for any other reason, the Stock Option may thereafter be exercised to the
extent provided in the agreement evidencing such Stock Option, or as otherwise determined by the Administrator. 

        (g)    Annual Limit on Incentive Stock Options.    To the extent that the aggregate Fair Market Value (determined as
of the date the Incentive Stock Option is granted) of shares of Stock with respect to which Incentive Stock Options granted to a Participant under this Plan and all other option plans of the Company
or of any Parent or Subsidiary become exercisable for the first time by the Participant during any calendar year exceeds $100,000 (as determined in accordance with Section 422(d) of the Code),
the portion of such Incentive Stock Options in excess of $100,000 shall be treated as Non-Qualified Stock Options. 

Section 6.    Stock Appreciation Rights.    

        Stock
Appreciation Rights may be granted either alone ("Free Standing Rights") or in conjunction with all or part of any Stock Option granted under the Plan ("Related Rights"). In the
case of a Non-Qualified Stock Option, Related Rights may be granted either at or after the time of the grant of such Stock Option. In the case of an Incentive Stock Option, Related Rights
may be granted only at the time of the grant of the Incentive Stock Option. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, grants of Stock
Appreciation Rights shall be made; the number of shares of Stock to be awarded, the exercise price, and all other conditions of Stock Appreciation Rights. The provisions of Stock Appreciation Rights
need not be the same with respect to each Participant. 

        Stock
Appreciation Rights granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the
terms of the Plan, as the Administrator shall deem desirable: 

        (a)    Awards.    The prospective recipient of a Stock Appreciation Right shall not have any rights with respect to
such award, unless and until such recipient has executed an agreement evidencing the award (a "Stock Appreciation Right Agreement") and delivered a fully executed copy thereof to the Company, within a
period of sixty days (or such other period as the Administrator may specify) after the award date. Participants who are granted Stock Appreciation Rights shall have no rights as stockholders of the
Company with respect to the grant or exercise of such rights. 

        (b)    Exercisability.    

          (i)  Stock
Appreciation Rights that are Free Standing Rights ("Free Standing Stock Appreciation Rights") shall be exercisable at such time or times and subject to such terms
and conditions as shall be determined by the Administrator at or after grant; provided, however, that no
Free Standing Stock Appreciation Right shall be exercisable during the first six months of its term, except that this additional limitation shall not apply in the event of a Participant's death or
Disability prior to the expiration of such six-month period. 

         (ii)  Stock
Appreciation Rights that are Related Rights ("Related Stock Appreciation Rights") shall be exercisable only at such time or times and to the extent that the Stock
Options to which they relate shall be exercisable in accordance with the provisions of Section 5 above and this Section 6 of the Plan;  provided, however, that a Related Stock Appreciation Right granted in connection with an Incentive Stock
Option shall be exercisable only if and when the Fair Market Value of the Stock subject to the Incentive Stock Option exceeds the option price of such Stock Option;  provided, further, that no Related Stock Appreciation Right shall be exercisable during the first six
months of its term, except that this 

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additional
limitation shall not apply in the event of a Participant's death or Disability prior to the expiration of such six-month period. 

        (c)    Payment Upon Exercise.    

          (i)  Upon
the exercise of a Free Standing Stock Appreciation Right, the Participant shall be entitled to receive up to, but not more than, an amount in cash or that number
of shares of Stock (or any combination of cash and shares of Stock) equal in value to the excess of the Fair Market Value of one share of Stock as of the date of exercise over the price per share
specified in the Free Standing Stock Appreciation Right (which price shall be no less than 100% of the Fair Market Value of the Stock on the date of grant) multiplied by the number of shares of Stock
in respect of which the Free Standing Stock Appreciation Right is being exercised, with the Administrator having the right to determine the form of payment. 

         (ii)  A
Related Right may be exercised by a Participant by surrendering the applicable portion of the related Stock Option. Upon such exercise and surrender, the Participant
shall be entitled to receive up to, but not more than, an amount in cash or that number of shares of Stock (or any combination of cash and shares of Stock) equal in value to the excess of the Fair
Market Value of one share of Stock as of the date of exercise over the option price per share specified in the related Stock Option multiplied by the number of shares of Stock in respect of which the
Related Stock Appreciation Right
is being exercised, with the Administrator having the right to determine the form of payment. Stock Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the
extent the Related Rights have been so exercised. 

        (d)    Non-Transferability.    

          (i)  Free
Standing Stock Appreciation Rights shall be transferable only when and to the extent that a Stock Option would be transferable under Section 5 of the Plan. 

         (ii)  Related
Stock Appreciation Rights shall be transferable only when and to the extent that the underlying Stock Option would be transferable under Section 5 of the
Plan. 

        (e)    Termination of Employment or Service.    

          (i)  In
the event of the termination of employment or service of a Participant who has been granted one or more Free Standing Stock Appreciation Rights, such rights shall be
exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant. 

         (ii)  In
the event of the termination of employment or service of a Participant who has been granted one or more Related Stock Appreciation Rights, such rights shall be
exercisable at such time or times and subject to such terms and conditions as set forth in the related Stock Options. 

        (f)    Term.    

          (i)  The
term of each Free Standing Stock Appreciation Right shall be fixed by the Administrator, but no Free Standing Stock Appreciation Right shall be exercisable more
than ten years after the date such right is granted. 

         (ii)  The
term of each Related Stock Appreciation Right shall be the term of the Stock Option to which it relates, but no Related Stock Appreciation Right shall be
exercisable more than ten years after the date such right is granted. 

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Section 7.    Restricted Stock, Deferred Stock and Performance Shares.    

        Awards
of Restricted Stock, Deferred Stock or Performance Shares may be issued either alone or in addition to other awards granted under the Plan. The Administrator shall determine the
Eligible Recipients to whom, and the time or times at which, awards of Restricted Stock, Deferred Stock or Performance Shares shall be made; the number of shares to be awarded; the price, if any, to
be paid by the Participant for the acquisition of Restricted Stock, Deferred Stock or Performance Shares; the Restricted Period (as defined in paragraph (b) of this Section 7) applicable
to awards of Restricted Stock or Deferred Stock; the performance objectives applicable to awards of Deferred Stock or Performance Shares; and all other conditions of the awards of Restricted Stock,
Deferred Stock and Performance Shares. Subject to the requirements of Section 162(m) of the Code, as applicable, the Administrator may also condition the grant of the award of Restricted Stock,
Deferred Stock or Performance Shares upon the exercise of Stock Options, or upon such other criteria as the Administrator may determine, in its sole discretion. The provisions of the awards of
Restricted Stock, Deferred Stock or Performance Shares need not be the same with respect to each Participant. 

        (a)    Awards and Certificates.    The prospective recipient of awards of Restricted Stock, Deferred Stock or
Performance Shares shall not have any rights with respect to any such award, unless and until such recipient has executed an agreement evidencing the award (a "Restricted Stock Award Agreement,"
"Deferred Stock Award Agreement" or "Performance Shares Award Agreement," as appropriate) and delivered a fully executed copy thereof to the Company, within a period of sixty days (or such other
period as the Administrator may specify) after the award date. Except as otherwise provided below in this Section 7(b), (i) each Participant who is granted an award of Restricted Stock
or Performance Shares shall be issued a stock certificate in respect of such shares of Restricted Stock or Performance Shares; and (ii) such certificate shall be registered in the name of the
Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to any such award. 

        The
Company may require that the stock certificates evidencing Restricted Stock or Performance Shares granted hereunder be held in the custody of the Company until the restrictions
thereon shall have lapsed, and that, as a condition of any award of Restricted Stock or Performance Shares, the Participant shall have delivered a stock power, endorsed in blank, relating to the Stock
covered by such award. 

        With
respect to awards of Deferred Stock, at the expiration of the Restricted Period, stock certificates in respect of such shares of Deferred Stock shall be delivered to the
Participant, or his legal representative, in a number equal to the number of shares of Stock covered by the Deferred Stock award. 

        (b)    Restrictions and Conditions.    The awards of Restricted Stock, Deferred Stock and Performance Shares granted
pursuant to this Section 7 shall be subject to the following restrictions and conditions: 

          (i)  Subject
to the provisions of the Plan and the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement, as appropriate,
governing any such award, during such period as may be set by the Administrator commencing on the date of grant (the "Restricted Period"), the Participant shall not be permitted to sell, transfer,
pledge or assign shares of Restricted Stock, Deferred Stock or Performance Shares awarded under the Plan; provided,  however, that the Administrator may, in
its sole discretion, provide for the lapse of such restrictions in installments and may accelerate or waive such
restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain
performance related goals, the Participant's termination of employment or service as a director, consultant or advisor to the Company or any Parent or Subsidiary, the 

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Participant's
death or Disability or the occurrence of a "change in control" as defined in the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement,
as appropriate, evidencing such award. 

         (ii)  Except
as provided in paragraph (b)(i) of this Section 7, the Participant shall generally have the rights of a stockholder of the Company with
respect to Restricted Stock or Performance Shares during the Restricted Period. The Participant shall generally not have the rights of a stockholder with respect to Stock subject to awards of Deferred
Stock during the Restricted Period; provided, however, that dividends declared during the Restricted
Period with respect to the number of shares of Stock covered by Deferred Stock shall be paid to the Participant. Certificates for shares of unrestricted Stock shall be delivered to the Participant
promptly after, and only after, the Restricted Period shall expire without forfeiture in respect of such awards of Restricted Stock, Deferred Stock or Performance Shares except as the Administrator,
in its sole discretion, shall otherwise determine. 

        (iii)  The
rights of Participants granted awards of Restricted Stock, Deferred Stock or Performance Shares upon termination of employment or service as a director, consultant
or advisor to the Company or to any Parent or Subsidiary terminates for any reason during the Restricted Period shall be set forth in the Restricted Stock Award Agreement, Deferred Stock Award
Agreement or Performance Shares Award Agreement, as appropriate, governing such awards. 

Section 8.    Amendment and Termination.    

        The
Board may amend, alter or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made that would impair the rights of a Participant under any award
theretofore granted without such Participant's consent, or that, without the approval of the stockholders (as described below), would: 

        (a)   except
as provided in Section 3 of the Plan, increase the total number of shares of Stock reserved for issuance under the Plan; 

        (b)   change
the class of officers, directors, employees, consultants and advisors eligible to participate in the Plan; or 

        (c)   extend
the maximum option period under paragraph (b) of Section 5 of the Plan. 

        Notwithstanding
the foregoing, stockholder approval under this Section 8 shall only be required at such time and under such circumstances as stockholder approval would be required
under Sections 162(m) and 422 of the Code, stock exchange rules or other applicable law or regulation with respect to any material amendment to an employee benefit plan of the Company. 

        The
Administrator may amend the terms of any award theretofore granted, prospectively or retroactively, but, subject to Section 3 of Plan, no such amendment shall impair the
rights of any Participant without his or her consent. 

Section 9.    Unfunded Status of Plan.    

        The
Plan is intended to constitute an "unfunded" plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a general creditor of the Company. 

Section 10.    General Provisions.    

        (a)   Shares
of Stock shall not be issued pursuant to the exercise of any award granted hereunder unless the exercise of such award and the issuance and delivery of such
shares of Stock pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the requirements of any
stock exchange 

9

 

upon
which the Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        (b)   The
Administrator may require each person acquiring shares of Stock hereunder to represent to and agree with the Company in writing that such person is acquiring the
shares of Stock without a view to distribution thereof. The certificates for such shares of Stock may include any legend which the Administrator deems appropriate to reflect any restrictions on
transfer. 

         All
certificates for shares of Stock delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the
Administrator may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any
applicable Federal or state securities law, and the Administrator may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. 

        (c)   Nothing
contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval, if such approval is
required; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall not confer upon any Eligible Recipient any right to continued
employment or service with the Company or any Parent or Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company or any Parent or Subsidiary to terminate the
employment or service of any of its Eligible Recipients at any time. 

        (d)   Each
Participant shall, no later than the date as of which the value of an award first becomes includible in the gross income of the Participant for Federal income tax
purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld with respect to
such award. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to the Participant. 

        (e)   No
member of the Board or the Administrator, nor any officer or employee of the Company acting on behalf of the Board or the Administrator, shall be personally liable
for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Administrator and each and any officer or employee of the
Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation. 

Section 11.    Stockholder Approval; Effective Date of Plan.    

        (a)   The
grant of any award hereunder shall be contingent upon stockholder approval of the Plan being obtained within 12 months before or after the date the Board
adopts the Plan. 

        (b)   Subject
to the approval of the Plan by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board, the
Plan shall be effective as of the first trading day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective (the "Effective Date"). 

Section 12.    Term of Plan.    

        No
Stock Option, Stock Appreciation Right, or awards of Restricted Stock, Deferred Stock or Performance Shares shall be granted pursuant to the Plan on or after the tenth anniversary of
the Effective Date, but awards theretofore granted may extend beyond that date. 

10

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Exhibit 10.7  

 
 

INFRASOURCE SERVICES, INC.
  2004 EMPLOYEE STOCK PURCHASE PLAN    
    

Section 1.    General Purpose of Plan; Definitions.    

        The
name of this plan is the InfraSource Services, Inc. 2004 Employee Stock Purchase Plan (the "Plan"). The Plan was adopted by the Board (defined below) on  [    •    ]
, subject to the approval of the stockholders of the Company (defined below), which
approval was obtained on [    •    ]. The purpose of the Plan is to provide Employees (defined
below) of the Company (defined below), its Parent (defined below) and any Designated Subsidiary (defined below) with the opportunity to purchase Common Stock (defined below) through accumulated
payroll deductions. It is the intention of the Company that the Plan qualify as an "employee stock purchase plan" within the meaning of Section 423 of the Code (defined below), and that the
provisions of the Plan be construed in a manner consistent with the requirements of such Section of the Code. 

        For
purposes of the Plan, the following terms shall be defined as set forth below: 

        (a)   "Administrator" means the Board, or if and to the extent the Board does not administer the Plan, the Committee in
accordance with Section 11 below. 

        (b)   "Board" shall mean the Board of Directors of the Company. 

        (c)   "Change in Capitalization" shall mean any increase, reduction, change or exchange of Shares for a different number of
shares and/or kind of shares or other securities of the Company by reason of a reclassification, recapitalization, merger, consolidation, reorganization, issuance of warrants or rights, stock
dividend, stock split or reverse stock split, combination or exchange of Shares, repurchase of Shares, change in corporate structure or otherwise. 

        (d)   "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 

        (e)   "Committee" shall mean a committee appointed by the Board to administer the Plan and to perform the functions set forth
herein. 

        (f)    "Common Stock" shall mean the common stock, $0.001 par value, of the Company. 

        (g)   "Company" shall mean InfraSource Services, Inc., a Delaware corporation. 

        (h)   "Compensation" shall mean the fixed salary or wage paid by the Company to an Employee as reported by the Company to the
United States government for Federal income tax purposes, including an Employee's portion of salary deferral contributions pursuant to Section 401(k) of the Code and any amount excludable
pursuant to Section 125 of the Code, and any payments for overtime, shift premium, incentive compensation, bonuses, or commissions, but excluding any payments for severance pay, expense
reimbursements or any credit or benefit under any employee plan maintained by the Company. 

        (i)    "Continuous Status as an Employee" shall mean the absence of any interruption or termination of service as an Employee.
Continuous Status as an Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company, its Parent or a Designated Subsidiary, as appropriate,
provided that (x) such leave is for a period of not more than 90 days or (y) reemployment with the Company, its Parent or a Designated Subsidiary, as appropriate, is guaranteed by
contract or statute upon expiration of such leave. 

        (j)    "Corporate Transaction" shall mean a sale of all or substantially all of the Company's assets, or a merger, consolidation
or other capital reorganization of the Company with or into 

1

 

another
corporation, or any other transaction or series of related transactions in which the Company's stockholders immediately prior thereto own less than 50% of the voting stock of the Company (or
its successor or parent) immediately thereafter. 

        (k)   "Designated Subsidiary" shall mean a Subsidiary that has been designated by the Administrator from time to time in its
sole discretion as eligible to participate in the Plan. Schedule A attached hereto sets forth the Designated Subsidiaries as of the Effective Date. 

        (l)    "Employee" shall mean any person who is customarily employed for at least twenty (20) hours per week by the
Company, its Parent or a Designated Subsidiary and is not a member of a collective bargaining unit that has refused to participate in the Plan. 

        (m)  "Enrollment Date" shall mean the first Trading Day of each Offering Period. 

        (n)   "Fair Market Value" as of a particular date shall mean the fair market value of the Shares as determined by the
Administrator in its sole discretion; provided, however, that (i) if the Shares are admitted to
trading on a national securities exchange, fair market value of the Shares on any date shall be the closing sale price reported for the Shares on such exchange on such date or, if no sale was reported
on such date, on the last date preceding such date on which a sale was reported, (ii) if the Shares are admitted to quotation on the National Association of Securities Dealers Automated
Quotation ("Nasdaq") System or other comparable quotation system and have been designated as a National Market System ("NMS") security, fair market value of the Shares on any date shall be the closing
sale price reported for the Shares on such system on such date or, if no sale was reported on such date, on the last date preceding such date on which a sale was reported, or (iii) if the
Shares are admitted to quotation on the Nasdaq System but have not been designated as an NMS security, fair market value of the Shares on any date shall be the average of the highest bid and lowest
asked prices of the Shares on such system on such date or, if no bid and ask prices were reported on such date, on the last date preceding such date on which both bid and ask prices were reported.
Notwithstanding anything to the contrary contained herein, for purposes of the Enrollment Date of the first Offering Period under the Plan, fair market value of the Shares shall be the initial price
to the public as set forth in the final prospectus included within the registration statement in Form S-1 filed with the Securities and Exchange Commission for the initial
underwritten public offering of the Stock (the "Registration Statement"). 

        (o)   "Offering Period" shall mean a period as described in Section 3 hereof. 

        (p)   "Parent" shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company
if, at the time of the granting of an option, each of the corporations other than the Company owns Shares possessing fifty percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain, whether or not such corporation now exists or hereafter acquires the Company. 

        (q)   "Participant" shall mean an Employee who elects to participate in the Plan pursuant to Section 4 hereof. 

        (r)   "Purchase Date" shall mean the last Trading Day of each Offering Period. 

        (s)   "Purchase Price" shall mean an amount equal to the lesser of (i) 85% of the Fair Market Value of a Share on the
Enrollment Date or (ii) 85% of the Fair Market Value of Share on the Purchase Date. 

        (t)    "Share" shall mean a share of Common Stock. 

        (u)   "Subsidiary" shall mean any corporation (other than the Company) in an unbroken chain of corporations, beginning with the
Company, if, at the time of the granting of an option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% 

2

 

or
more of the total combined voting power of all classes of stock in one of the other corporations in such chain, whether or not such corporation now exists or is hereafter organized or acquired by
the Company or a Subsidiary. 

        (v)   "Trading Day" shall mean a day on which national stock exchanges and the Nasdaq System are open for trading. 

Section 2.    Eligibility.    

        (a)   Subject
to the limitations set forth in Section 2(b) hereof, any person who has been continuously employed as an Employee since the date that is six months prior
to an Enrollment Date shall be eligible to participate in the Plan in accordance with Section 4 hereof and shall be granted an option for the Offering Period commencing on such Enrollment Date. 

        (b)   Notwithstanding
any provision of the Plan to the contrary, no Employee shall be granted an option under the Plan (i) if such Employee (or any other person whose
stock would be attributed to such Employee pursuant to Section 424(d) of the Code), immediately after the option is granted, would own stock and/or hold outstanding options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company, its Parent or of any Subsidiary, or (ii) if such grant would permit such
Employee's right to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company, its Parent and of any Subsidiary to accrue at a rate that
exceeds twenty-five thousand dollars ($25,000) of Fair Market Value of such stock (determined at the time such option is granted) for any calendar year in which such option would be
outstanding (applied in accordance with Section 423(b)(8) of the Code and the Treasury Regulations thereunder). Any amounts received from an Employee that cannot be used to purchase Shares as a
result of this limitation shall be returned as soon as reasonably practicable to the Employee without interest. 

Section 3.    Offering Periods.    

        The
Plan shall be implemented by a series of consecutive six-month Offering Periods, with a new Offering Period commencing on the first Trading Day on or after  May 15 (beginning in the year 2005) and
November 15 (beginning in the year 2004) of each
year, or at such other time or times as may be determined by the Administrator, and ending on the last Trading Day on or before the following November 14 and May 14, respectively, or at
such other time or times as may be determined by the Administrator; provided, however, that the first
Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective
and ending on the last Trading Day on or before November 14, 2004. The Plan shall continue until terminated in accordance with Section 17 hereof. Subject to Section 17 hereof, the
Administrator shall have the power to change the duration and/or the frequency of Offering Periods with respect to future offerings and shall use its best efforts to notify Employees of any such
change at least fifteen (15) days prior to the scheduled beginning of the first Offering Period to be affected. In no event shall any option granted hereunder be exercisable more than
twenty-seven (27) months from its date of grant. 

Section 4.    Enrollment; Participation.    

        (a)   First
Offering Period. 

          (i)  Each
Eligible Employee who is employed by the Company or a Designated Subsidiary on the calendar day immediately preceding the Effective Date (as defined in
Section 21) shall automatically be enrolled and become a Participant in the Plan effective as of the Enrollment Date with respect to the first Offering Period to the extent of up to fifteen
percent (15%)] of his or her Compensation for each payday occurring during the first Offering Period. 

3

 

         (ii)  On
the Enrollment Date of the first Offering Period the Company shall commence an offering by granting each Participant an option to purchase shares of Common Stock.
The number of shares to be purchased on the Purchase Date of such Offering Period shall be determined by dividing the sum of each Participant's aggregate payroll deductions accumulated prior to such
Purchase Date and timely lump sum cash payments retained in the Participant's Account as of such Purchase Date by the applicable Purchase Price; provided that in no event shall a Participant be
permitted to purchase during each Offering Period more than 2,000 Shares (subject to any adjustment pursuant to Section 16 hereof), provided,  further,
that such purchase shall be subject to the limitations set forth in Sections 2(b) and 10 hereof. Exercise of the option shall occur as provided
in Section 6 hereof, unless the Participant has withdrawn pursuant to Section 8 hereof. The option with respect to an Offering Period shall expire on the Purchase Date with respect to
such Offering Period or the withdrawal date if earlier. 

        (iii)  Following
the Effective Date, each such Participant shall, no later than a date designated by the Administrator for such purpose (the "Election Date"), elect to make
contributions for the first Offering Period to his or her account up to the amount set forth in Section 5 by payroll deductions. To make contributions by payroll deductions, such Participant
must complete the form of subscription agreement provided by the Company prior to the Election Date. Payroll deductions shall commence on the first payday following the Election Date, and shall end on
the last payday prior to the Purchase Date of the Offering Period to which the subscription agreement is applicable, unless sooner terminated by the Participant's withdrawal from the Plan or
termination of the Participant's Continuous Status as an Employee as provided in Section 8 hereof. Unless a Participant, by giving written notice (or such other notice as may from time to time
be prescribed by the Administrator), elects not to participate with respect to any subsequent Offering Period, the Participant shall be deemed to have accepted each new offer and to have authorized
payroll deductions in respect thereof during each subsequent Offering Period. 

        (iv)  With
respect to any payday(s) that occur following the Enrollment Date of the first Offering Period and on or prior to the Election Date, each Participant shall be
permitted to make a one-time lump sum cash payment equal to the amount of such Participant's Compensation that would have been deducted from such Participant's Compensation had the
subscription agreement in subsection (iii) above been in place during any such payday(s). Participants wishing to make the lump sum cash payment shall do so by making such payment to the
Company not later than ten (10) calendar days before the Purchase Date of such Offering Period. 

         (v)  If
a Participant fails to submit a complete form of subscription agreement by the Election Date, such Participant shall be deemed to have withdrawn from the Offering
Period without the need to provide written notice to the Company. 

        (b)   Subsequent
Offering Periods. 

          (i)  On
each subsequent Enrollment Date the Company shall commence an offering by granting each eligible Employee who has elected to participate in such Offering Period
pursuant to Section 4(a)(iii) or 4(b)(ii) hereof an option to purchase on the Purchase Date of such Offering Period up to a number of Shares determined by dividing each Employee's
payroll deductions accumulated prior to such Purchase Date and retained in the Participant's account as of such Purchase Date by the applicable Purchase Price; provided that in no event shall a
Participant be permitted to purchase during each Offering Period more than 2,000 Shares (subject to any adjustment pursuant to Section 16 hereof),  provided, further, that such purchase shall be subject to the limitations set forth in Sections 2(b) and
10 hereof. Exercise of the option shall occur as provided in Section 6 hereof, unless the Participant has withdrawn pursuant to Section 8 hereof. The option with respect to an Offering
Period shall expire on the Purchase Date with respect to such Offering Period or the withdrawal date if earlier. 

4

  

         (ii)  An
Employee may (subject to the limitations set forth in Section 2(b) hereof) elect to become a Participant in the Plan by completing and filing a subscription
agreement authorizing the Company to make payroll deductions (as set forth in Section 5 hereof) at least five (5) business days prior to the applicable Enrollment Date unless a later
time for filing the subscription agreement is set by the Administrator for all Employees. Unless a Participant, by giving written notice (or such other notice as may from time to time be prescribed by
the Administrator), elects not to participate with respect to any subsequent Offering Period, the Participant shall be deemed to have accepted each new offer and to have authorized payroll deductions
in respect thereof during each subsequent Offering Period. 

Section 5.    Payroll Deductions.    

        (a)   An
Employee may, in accordance with rules and procedures adopted by the Administrator and subject to the limitation set forth in Section 2(b) hereof, authorize
payroll deductions in amounts which are not less than one percent (1%) and not more than fifteen percent (15%) of such Employee's Compensation on each payday occurring during an Offering Period.
Payroll deductions shall commence on the first payroll paid following the Enrollment Date, and shall end on the last payroll paid prior to the Purchase Date of the Offering Period to which the
subscription agreement is applicable, unless sooner terminated by the Participant's withdrawal from the Plan or termination of the Participant's Continuous Status as an Employee as provided in
Section 8 hereof. A Participant may decrease (but not increase) his or her rate of payroll deductions at any time during an Offering Period, but not more frequently than once during each
Offering Period, or as may be determined by the Administrator prior to the commencement of an Offering Period, by giving written notice (or such other notice as may from time to time be prescribed by
the Administrator). The change in rate shall be effective the first full payroll period following five (5) business days after the Company's receipt of the new subscription agreement unless the
Company elects to process a given change in rate of payroll deductions more quickly. 

        (b)   All
payroll deductions made by a Participant shall be credited to such Participant's account under the Plan and shall be withheld in whole percentages only. A
Participant may not make any additional payments into such account. 

        (c)   Notwithstanding
the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 2(b) hereof, a Participant's rate of
payroll deductions may be decreased by the Company to zero percent (0%) at any time during an Offering Period. Payroll deductions shall recommence at the rate provided for in such Participant's
subscription agreement at the beginning of the first Offering Period which is scheduled to end the following calendar year, unless a Participant increases or decreases the rate of his or her payroll
deductions as provided in Section 5(a) hereof, or terminates his or her participation in the Plan as provided in Section 8 hereof. 

Section 6.    Purchase of Shares.    

        (a)   Unless
a Participant withdraws from the Plan as provided in Section 8 hereof, such Participant's election to purchase Shares shall be exercised automatically on
each Purchase Date, and the maximum number of whole Shares subject to option shall be purchased for each Participant at the applicable Purchase Price with the accumulated payroll deductions in each
Participant's account as of the Purchase Date. No fractional Shares may be purchased hereunder. Any payroll deductions accumulated in a Participant's account following the purchase of Shares on any
Purchase Date that are not sufficient to purchase a full Share shall be retained in the Participant's account for the subsequent Offering Period, subject to earlier withdrawal by the Participant as
provided in Section 8 hereof. Any additional amounts remaining in a Participant's account following the purchase of Shares on any Purchase Date that are equal to, or in excess of, the amount
required under this Section 6 to purchase at least one full Share shall be returned to 

5

 

the
Participant as soon as reasonably practicable following the Purchase Date. During a Participant's lifetime, a Participant's option to purchase Shares hereunder is exercisable only by the
Participant. 

Section 7.    Delivery of Shares; Withdrawal or Sale of Shares.    

        As
promptly as reasonably practicable after each Purchase Date, the Company shall either arrange the delivery of the whole Shares purchased on such date by each Participant to the
Participant's brokerage account or arrange the delivery to the Participant of a share certificate representing such Shares. 

Section 8.    Withdrawal; Termination of Employment.    

        (a)   A
Participant may withdraw all, but not less than all, of the payroll deductions credited to such Participant's account (that have not been used to purchase Shares)
under the Plan by giving written notice to the Company at least five (5) business days prior to the Purchase Date of the Offering Period in which the withdrawal occurs. Withdrawal of payroll
deductions shall be deemed to be a withdrawal from the Plan. All of the payroll deductions credited to such Participant's account (that have not been used to purchase Shares) shall be paid to such
Participant promptly after receipt of such Participant's notice of withdrawal, and such Participant's eligibility to participate in the Plan for the Offering Period in which the withdrawal occurs
shall be automatically terminated. No further payroll deductions for the purchase of Shares shall be made for such Participant during such Offering Period. If a Participant withdraws from an Offering
Period, payroll deductions for such Participant shall not resume at the beginning of the succeeding Offering Period unless the Participant timely delivers to the Company a new subscription agreement
in accordance with the provisions of Section 4 hereof. A Participant's withdrawal from an Offering Period shall not have any effect upon a Participant's eligibility to
participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after termination of the Offering Period from which the Participant
withdraws. 

        (b)   Upon
termination of a Participant's Continuous Status as an Employee during the Offering Period for any reason, including Participant's voluntary termination, retirement
or death, all the payroll deductions credited to such Participant's account (that have not been used to purchase Shares) shall be returned to such Participant or, in the case of such Participant's
death, to the person or persons entitled thereto under Section 12 hereof, and such Participant's option shall be automatically terminated. Such termination shall be deemed a withdrawal from the
Plan. 

Section 9.    Interest.    

        No
interest shall accrue on or be payable by the Company with respect to the payroll deductions of a Participant in the Plan. 

Section 10.    Stock Subject to Plan.    

        (a)   Subject
to adjustment upon Changes in Capitalization of the Company as provided in Section 16 hereof, the maximum aggregate number of Shares which shall be
reserved for sale under the Plan for all Offering Periods that commence during each fiscal year of the Company occurring during the term of the Plan shall be 2,000,000 Shares, plus an annual increase
to be added on the first day of the Company's fiscal year (beginning 2005) equal to the lesser of (i) 600,000 Shares or (ii) one percent (1%) of the number of outstanding shares of the
Company on the last day of the immediately preceding fiscal year. Such Shares shall be available as of the first day of the first Offering Period that commences in each such fiscal year. The Shares
may consist, in whole or in part, of authorized and unissued Shares or treasury Shares. If the total number of Shares which would otherwise be subject to options granted pursuant to
Section 2(a) hereof on an Enrollment Date exceeds the number of Shares then available under the Plan (after 

6

 

deduction
of all Shares for which options have been exercised or are then outstanding), the Administrator shall make a pro rata allocation of the Shares remaining available for option grant in as
uniform a manner as shall be practicable and as it shall determine to be equitable. In such event, the Administrator shall give written notice to each Participant of such reduction of the number of
option Shares affected thereby and shall similarly reduce the rate of payroll deductions, if necessary. 

        (b)   No
Participant shall have rights as a stockholder with respect to any option granted hereunder until the date on which such Shares shall be deemed to have been purchased
by the Participant in accordance with Section 6 hereof. 

        (c)   Shares
purchased on behalf of a Participant under the Plan shall be registered in the name of the Participant or, if requested in writing by the Participant, in the
names of the Participant and the Participant's spouse. 

Section 11.    Administration.    

        The
Plan shall be administered by the Board or a Committee. The Board or the Committee shall have full power and authority, subject to the provisions of the Plan, to promulgate such
rules and regulations as it deems necessary for the proper administration of the Plan, to interpret the provisions and supervise the administration of the Plan, and to take all action in connection
therewith or in relation thereto as it deems necessary or advisable. Any decision reduced to writing and signed by a majority of the members of the Committee shall be fully effective as if it had been
made at a meeting duly held. The Company shall pay all expenses incurred in the administration of the Plan. No member of the Board or Committee shall be personally liable for any action,
determination, or interpretation made in good faith with respect to the Plan, and all members of the Board or Committee shall be fully indemnified by the Company with respect to any such action,
determination or interpretation. 

        The
Plan shall be administered such that all Eligible Employees of the Company (or of any Designated Subsidiary) shall have equal rights and privileges under this Plan so that this Plan
qualifies as an "employee stock purchase plan" within the meaning of Section 423 of the Code or applicable Treasury regulations thereunder. Any provision of this Plan that is inconsistent with
Section 423 or applicable Treasury regulations shall, without further act or amendment by the Company, the Board or the Administrator, be reformed to comply with the equal rights and privileges
requirement of Section 423 or applicable Treasury regulations. 

        All
decisions, determinations and interpretations of the Board or Committee shall be final and binding on all persons, including the Company, its Parent, any Subsidiary, the Employee (or
any person claiming any rights under the Plan through any Employee) and any stockholder of the Company, its Parent or any Subsidiary. 

Section 12.    Designation of Beneficiary.    

        (a)   A
Participant may file, on forms supplied by and delivered to the Company, a written designation of a beneficiary who is to receive Shares and/or cash, if any, remaining
in such Participant's account under the Plan in the event of the Participant's death. 

        (b)   Such
designation of beneficiary may be changed by the Participant at any time by written notice. In the event of the death of a Participant and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such Participant's death, the Company shall deliver the balance of the Shares and/or cash credited to Participant's account
to the executor or administrator of the estate of the Participant or, if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may
deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant, 

7

 

or
if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

Section 13.    Transferability.    

        Neither
payroll deductions credited to a Participant's account nor any rights with regard to the exercise of an option or any rights to receive Shares under the Plan may be assigned,
transferred, pledged or otherwise disposed of in any way (other than by the laws of descent and distribution or as provided in Section 12 hereof) by the Participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect. 

Section 14.    Use of Funds.    

        All
payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions. 

Section 15.    Reports.    

        Individual
accounts shall be maintained by the Company for each Participant in the Plan. Statements of account shall be given to each Participant at least annually which statements shall
set forth the amounts of payroll deductions, the Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 

Section 16.    Effect of Certain Changes.    

        In
the event of a Change in Capitalization or the distribution of an extraordinary dividend, the Administrator shall conclusively determine the appropriate equitable adjustments, if any,
to be made under the Plan, including without limitation adjustments to the number of Shares which have been authorized for issuance under the Plan, but have not yet been placed under option, as well
as the Purchase Price of each option under the Plan which has not yet been exercised. 

        In
the event of a dissolution or liquidation of the Company, any Offering Period then in progress will terminate immediately prior to the consummation of such action, unless otherwise
provided by the Board. In the event of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a
parent or subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute for outstanding options, the Offering Period then in progress shall be
shortened and a new Purchase Date shall be set (the "New Purchase Date"), as of which date any Offering Period then in progress will terminate. The New
Purchase Date shall be on or before the date of consummation of the transaction and the Board shall notify each Participant in writing that the Purchase Date for his or her option has been changed to
the New Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in
Section 8. For purposes of this Section 16, an option granted under the Plan shall be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other
consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same number and kind of shares of stock or the same
amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the
holder of the number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this
Section 16); provided however that if the consideration received in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of
the Code), the Board may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of 

8

 

the
option to be solely common stock of the successor corporation or its parent equal in fair market value to the per Share consideration received by holders of Common Stock in the transaction. 

Section 17.    Amendment or Termination.    

        The
Board may at any time terminate or amend the Plan. Except as provided in Section 16 hereof, no such termination may adversely affect options previously granted and no
amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant. To the extent necessary to comply with Section 423 of the Code (or any
successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval in such a manner and to such a degree as required. 

Section 18.    Notices.    

        All
notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when they are received in a timely manner
in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

Section 19.    Regulations and Other Approvals; Governing Law.    

        (a)   This
Plan and the rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect
to the choice of law principles thereof, except to the extent that such law is preempted by federal law. 

        (b)   The
obligation of the Company to sell or deliver Shares with respect to options granted under the Plan shall be subject to all applicable laws, rules and regulations,
including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Administrator. 

Section 20.    Withholding of Taxes.    

        If
the Participant makes a disposition, within the meaning of Section 424(c) of the Code of any Share or Shares issued to Participant pursuant to Participant's exercise of an
option, and such disposition occurs within the two-year period commencing on the day after the Enrollment Date or within the one-year period commencing on the day after the
Purchase Date, Participant shall, within ten (10) days of such disposition, notify the Company thereof and thereafter immediately deliver to the Company any amount of Federal, state or local
income taxes and other amounts which the Company informs the Participant the Company may be required to withhold. 

Section 21.    Effective Date.    

        Subject
to the approval of the Plan by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board, the Plan shall be
effective as of the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective (the "Effective Date"). 

Section 22.    Term of Plan.    

        No
option shall be granted pursuant to the Plan and no Offering Period shall commence on or after the tenth anniversary of the Effective Date, but options theretofore granted may extend
beyond that date. 

9

   SCHEDULE A—DESIGNATED SUBSIDIARIES  

1

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INFRASOURCE SERVICES, INC. 2004 EMPLOYEE STOCK PURCHASE PLAN

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