Document:

executionversionsenemplo

1 RESTRICTED  EMPLOYMENT AGREEMENT  This EMPLOYMENT AGREEMENT (the “Agreement”), dated as of May 21,  2020, is by and between Dycom Industries, Inc., a Florida corporation (the “Company”), and  Steven E. Nielsen (the “Executive”).  WHEREAS, the Company and the Executive previously entered into an  employment agreement, dated as of April 26, 2016 (the “Existing Employment Agreement”);  WHEREAS, the Existing Employment Agreement will expire in accordance with  its terms on May 31, 2020; and  WHEREAS, the Company and the Executive desire to provide for the continued  employment of the Executive and to supersede the Existing Employment Agreement with this  Agreement effective as of the Effective Date (as defined in Section 2);  NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:  1. Employment and Duties.  (a) General.  Subject to the terms and conditions hereof, the Executive  shall continue to serve as President and Chief Executive Officer of the Company, reporting to the  Board of Directors (the “Board”) of the Company.  The Executive shall have such duties and  responsibilities commensurate with those typically provided by a President and Chief Executive  Officer of a company that is required to file reports with the Securities and Exchange  Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended  (a “Public Company”), as may be assigned to the Executive from time to time by the  Board.   The Executive’s principal place of employment shall be the principal offices of the  Company currently located in Palm Beach Gardens, Florida, subject to such reasonable travel as  the performance of his duties and the business of the Company may require.  (b) Exclusive Services.  For so long as the Executive is employed by  the Company, the Executive shall devote his full business working time to his duties hereunder,  shall faithfully serve the Company, shall in all respects conform to and comply with the lawful  and good faith directions and instructions given to him by the Board and shall use his best efforts  to promote and serve the interests of the Company.  Further, the Executive shall not, directly or  indirectly, render material services to any other person or organization without the consent of the  Company pursuant to authority granted by the lead independent director of the Board or  otherwise engage in activities that would interfere significantly with the faithful performance of  his duties hereunder.  Notwithstanding the foregoing, the Executive may (i) serve on corporate,  civic or charitable boards provided that, on and after the Effective Date hereof, the Executive  provides the lead independent director of the Board, in writing, with a list of such boards and  receives the consent of the lead independent director of the Board to serve on such boards and  (ii) manage personal investments or engage in charitable activities, provided that such activity  does not contravene the first sentence of this Section 1(b).  Exhibit 10.14* 

 

2 RESTRICTED  2. Term.  (a) The Executive’s employment under this Agreement shall  commence as of May 31, 2020 (the “Effective Date”) and shall, subject to earlier termination of  the Executive’s employment under this Agreement), continue until May 31, 2025 (the “Initial  Term”).  Unless a Final Non-Renewal Notice (as defined below) is given or the Executive’s  employment is earlier terminated in accordance with the terms of this Agreement, the period of  the Executive’s employment shall, as of and following the expiration of the Initial Term, be  automatically extended for additional 12 month periods (individually, and collectively, the  “Renewal Term”).  The period from the Effective Date until the termination of the Executive’s  employment under this Agreement, including the Initial Term, and, if applicable, the CIC Term  (as defined below), any Renewal Term or Post-CIC Renewal Term (as defined below), is  referred to as the “Term.”  (b) Notwithstanding the foregoing, if a Change in Control (as defined  in Section 5 below) occurs prior to the termination of the Executive’s employment under this  Agreement (including after providing a Final Non-Renewal Notice, which shall be deemed  revoked and superseded by reason of the occurrence of the Change in Control), the Term shall  end not earlier than the second anniversary of the consummation of the Change in Control unless  the Executive experiences a termination of employment under this Agreement (the “CIC Term”).   Unless a Final Non-Renewal Notice is given as herein provided or Executive’s employment is  earlier terminated in accordance with the terms of this Agreement, the period of Executive’s  employment shall, as of and following the expiration of the CIC Term, be automatically  extended for additional 12 month periods (individually, and collectively, the “Post-CIC Renewal  Term”).  The Company or the Executive may elect to terminate the automatic extension of the  Term by giving written notice of such election not less than (i) one-year prior to the end of the  Initial Term or any Renewal Term, as applicable or (ii) 90 days prior to the end of the CIC Term  or any Post-CIC Renewal Term, as applicable (the “Final Non-Renewal Notice”).   3. Compensation and Other Benefits.  Subject to the provisions of this  Agreement, the Company shall pay and provide the following compensation and other benefits to  the Executive during the Term as compensation for services rendered hereunder:  (a) Base Salary.  The Company shall pay to the Executive an annual  salary at the rate of $1,050,000 (the “Base Salary”), payable in substantially equal installments at  such intervals as may be determined by the Company in accordance with its ordinary payroll  practices as established from time to time; provided that the Executive shall receive a reduced  annual salary at the rate of $750,000 (the “Reduced Base Salary”) in accordance with and until  such time provided for in that certain letter agreement regarding salary reduction dated March  27, 2020 (the “Salary Reduction Letter”).  For the avoidance of doubt, any references to “Base  Salary” in this Agreement (including in Section 3(b) with respect to the Executive’s bonus  entitlements and in Section 4 relating to post-termination severance and other payments and  benefits) shall refer to the highest annual rate of Base Salary approved by the Compensation  Committee of the Board for the Executive as of and following the date of this Agreement and  shall not refer to the Reduced Base Salary or any other reduced annual salary rate unless  specifically agreed to by the Executive.  During the Term, the Compensation Committee of the  

 

3 RESTRICTED  Board shall review the Executive’s Base Salary, not less often than annually, and may increase  (but not decrease) the Executive’s Base Salary in its sole discretion.   (b) Bonus.  The Executive shall be entitled to participate in the  Company’s annual incentive bonus plan in accordance with its terms as may be in effect from  time to time and subject to such other terms as the Board may approve.  For each fiscal year  during the Term, the Executive shall be eligible to receive no less than (i) a target annual bonus  opportunity of 105% of his Base Salary and (ii) an annual maximum bonus opportunity of 210%  of his Base Salary.  (c) Long-Term Incentive Plan.  The Executive shall be entitled to  participate in the Company’s long-term incentive plan in accordance with its terms that may be  in effect from time to time and subject to such other terms as the Board, in its sole discretion,  may approve.  (d) Benefit Plans.  The Executive shall be entitled to participate in all  employee benefit plans or programs of the Company as are available to other senior executives  of the Company, in accordance with the terms of the plans, as may be amended from time to  time.  (e) Expenses.  The Company shall reimburse the Executive for  reasonable travel and other business-related expenses incurred by the Executive in the fulfillment  of his duties hereunder upon presentation of written documentation thereof, in accordance with  the business expense reimbursement policies and procedures of the Company as in effect from  time to time.  In addition, the Company shall reimburse the Executive for the cost of an annual  physical exam by a physician of the Executive’s choice upon presentation of written  documentation thereof, in accordance with the applicable business expense reimbursement  policies and procedures of the Company as in effect from time to time.  Payments with respect to  reimbursements of expenses shall be made consistent with the Company’s reimbursement  policies and procedures and in no event later than the last day of the calendar year following the  calendar year in which the relevant expense is incurred.  (f) Vacation.  The Executive shall be entitled to vacation time  consistent with the applicable policies of the Company for other senior executives of the  Company as in effect from time to time.  4. Termination of Employment.  Subject to this Section 4, the Company shall  have the right to terminate the Executive’s employment at any time, with or without Cause (as  defined in Section 5 below), and the Executive shall have the right to terminate his employment  at any time, with or without Good Reason (as defined in Section 5 below).  (a) Termination due to Death or Disability.  The Executive’s  employment under this Agreement will terminate upon the Executive’s death and upon the  Executive’s Disability (as defined in Section 5 below) may be terminated by the Company upon  giving not less than 30 days’ written notice to the Executive.  In the event of the Executive’s  death or Disability, the Company shall pay to the Executive (or his estate, as applicable) the  Executive’s accrued salary through and including the date of termination and any bonus earned,  

 

4 RESTRICTED  but unpaid, for the year prior to the year in which the Separation from Service (as defined in  Section 4(b) below) occurs and any other amounts or benefits required to be paid or provided by  law or under any plan, program, policy or practice of the Company (“Other Accrued  Compensation and Benefits”), payable within 30 days of the Executive’s Separation from  Service by reason of death or Disability.  In addition, solely in the event the Executive’s  employment under this Agreement terminates as a result of death or Disability after the  Executive or the Company delivers a Final Non-Renewal Notice, the Executive shall be entitled  to the following:  (i) a pro rata bonus equal to (x) the annual bonus the Executive would have  earned for the fiscal year in which the Separation from Service occurs based on performance as  determined by the Board, multiplied by (y) a fraction, the numerator of which is the number of  days worked during the fiscal year in which the Separation from Service occurs and the  denominator of which is 365, payable in a single lump sum upon certification to the Board of  performance for such fiscal year; (ii) full acceleration of all outstanding stock options granted by  the Company to the Executive pursuant to any of the Company’s long-term incentive plans, to  the extent not already vested, which shall remain exercisable for the three-year period following  the date of termination; (iii) with respect to all outstanding time and performance vesting  restricted stock or restricted stock unit awards granted by the Company to the Executive pursuant  to any of the Company’s long-term incentive plans, (1) in the case of death, full acceleration of  such awards with any performance awards vesting at their respective target performance levels;  or (2) in the case of Disability, continued vesting in accordance with the terms of such awards,  with any performance vesting awards subject to the applicable performance conditions; and (iv)  with respect to any other outstanding equity awards, such awards will continue to vest in  accordance with their terms, with any performance vesting awards subject to the applicable  performance conditions.  (b) Termination for Cause; Resignation without Good Reason.  If,  prior to the expiration of the Term, the Executive incurs a “Separation from Service” within the  meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the  “Code”), by reason of the Company’s termination of the Executive’s employment for Cause or if  the Executive resigns from his employment hereunder other than for Good Reason, the Executive  shall only be entitled to payment of his Other Accrued Compensation and Benefits, payable in  accordance with Company policies and practices and in no event later than 30 days after the  Executive’s Separation from Service.  The Executive shall have no further right to receive any  other compensation or benefits after such termination or resignation of employment.  (c) Termination without Cause; Resignation for Good Reason Prior to  a Change in Control.  If, prior to the expiration of the Term, the Executive incurs a Separation  from Service by reason of the Company’s termination of the Executive’s employment without  Cause, or if the Executive resigns from his employment for Good Reason prior to a Change in  Control the Executive shall receive the Other Accrued Compensation and Benefits and, subject  to Section 4(f), shall be entitled to the following:  (i) an amount equal to three times the sum of (1) his Base Salary (at the rate in effect  on the date the Executive’s employment is terminated) plus (2) the greater of (x)  the average amount of the annual bonus paid to him for each of the three fiscal  years immediately prior to the fiscal year in which the Separation from Service  occurs or (y) target annual bonus for the fiscal year in which the Separation from  

 

5 RESTRICTED  Service occurs, payable in substantially equal monthly installments over a period  of 18 months beginning 60 days following the Executive’s Separation from  Service and shall be in the amount of one-ninth of the severance amount due to  the Executive under this clause (i), and each of the remaining sixteen installments  shall be in the amount of one-eighteenth of such severance amount due to the  Executive; provided, however, that if a “change in the effective control of a  corporation,” as such term is defined in Treasury Regulation §1.409A-3(i)(5),  occurs with respect to the Company following the Executive’s Separation from  Service, any unpaid amounts hereunder shall be paid in a single lump sum within  five days following the consummation of such change in the effective control; and  (ii) continued participation in the employee benefit plans of the Company (other than  equity-based plans, 401(k) plans, bonus plans, or disability plans) applicable to  other senior executives for a period of three years following the Executive’s  Separation from Service or, in the event such participation is not permitted, a cash  payment equal to the value of the benefit excluded, payable in three annual  installments beginning 60 days following the Executive’s Separation from  Service; provided, however, that in the event the Executive obtains other  employment and is eligible to participate in the welfare benefit plans of his new  employer, any benefits provided under the Company’s welfare benefit plans shall  be secondary to the benefits provided under the welfare benefit plans of the  Executive’s new employer.  (d) Termination without Cause; Resignation for Good Reason on or  Following a Change in Control.  If, prior to the expiration of the CIC Term, the Executive incurs  a Separation from Service on or following the consummation of a Change in Control by reason  of the Company’s termination of the Executive’s employment without Cause, or if the Executive  resigns from his employment for Good Reason, the Executive shall receive the Other Accrued  Compensation and Benefits and, subject to Section 4(f), shall be entitled to the following:  (i) an amount equal to three times the sum of (i) his Base Salary (at the rate in effect  on the date the Executive’s employment is terminated) plus (ii) the greater of (x)  the average amount of the annual bonus paid to him for each of the three fiscal  years immediately prior to the fiscal year in which the Separation from Service  occurs or (y) target annual bonus for the fiscal year in which the Separation from  Service occurs, payable in a single lump sum within five days;  (ii) a pro rata bonus equal to (x) the greater of (i) the average amount of the annual  bonus paid to the Executive for each of the three fiscal years immediately prior to  the fiscal year in which the Separation from Service occurs or (ii) the annual  bonus the Executive would have earned for the fiscal year in which the Separation  from Service occurs based on performance as determined through the date of the  Separation from Service, multiplied by (y) a fraction, the numerator of which is  the number of days worked during the fiscal year in which the Separation from  Service occurs and the denominator of which is 365 , payable in a single lump  sum within five days; provided, however, that if such Separation from Service  occurs in the same fiscal year as the Change in Control and the Executive is paid  

 

6 RESTRICTED  an annual bonus for such year in connection with the Change in Control, the  fraction shall be adjusted so that the numerator reflects the number of days  worked during the fiscal year following the Change in Control and the  denominator reflects the number of days in the fiscal year following the Change  in Control;  (iii) continued participation in the employee benefit plans of the Company (other than  equity-based plans, 401(k) plans, bonus plans, or disability plans) applicable to  other senior executives for a period of three years following the Executive’s  Separation from Service or, in the event such participation is not permitted, a cash  payment equal to the value of the benefit excluded, payable in three annual  installments beginning 60 days following the Executive’s Separation from  Service; provided, however, that in the event the Executive obtains other  employment and is eligible to participate in the welfare benefit plans of his new  employer, any benefits provided under the Company’s welfare benefit plans shall  be secondary to the benefits provided under the welfare benefit plans of the  Executive’s new employer; and  (iv) all outstanding equity-based awards, including but not limited to stock options,  restricted stock, and restricted stock unit awards, granted by the Company to the  Executive pursuant to any of the Company’s long-term incentive plans shall fully  and immediately vest to the extent not already vested.  In addition, all outstanding  performance share, performance share unit, and other equivalent awards granted  by the Company to the Executive pursuant to any of the Company’s long-term  incentive plans shall immediately vest at their respective target performance  levels to the extent not already vested.  Notwithstanding anything to the contrary in this Agreement, any termination without Cause that  occurs prior to a Change in Control but which the Executive reasonably demonstrates (x) was at  the request of a third party, or (y) arose in connection with or in anticipation of a Change in  Control which actually occurs, shall constitute a termination without Cause occurring on such  Change in Control for purposes of this Agreement.   (e) Failure to Renew Agreement; Termination Due to Retirement.  If  the Executive or the Company delivers a Final Non-Renewal Notice, the Executive’s  employment under this Agreement will terminate due to retirement at the end of the one-year  notice period (or on such earlier date as may be mutually agreed by Mr. Nielsen and the  Company).  Upon a termination of employment due to the Executive’s retirement, the Executive  shall receive the Other Accrued Compensation and Benefits and, subject to Section 4(f), he shall  be entitled to the following:  (i) a pro rata bonus equal to (x) the annual bonus the Executive would have earned  for the fiscal year in which the Separation from Service occurs based on  performance as determined by the Board, multiplied by (y) a fraction, the  numerator of which is the number of days worked during the fiscal year in which  the Separation from Service occurs and the denominator of which is 365, payable  

 

7 RESTRICTED  in a single lump sum upon certification to the Board of performance for such  fiscal year; and  (ii) all outstanding equity awards granted to the Executive pursuant to any of the  Company’s long-term incentive plans, shall be treated as follows:  (i) all  outstanding stock options shall continue to vest on their terms as if the Executive  did not have a Separation from Service and remain exercisable until the original  expiration date; (ii) all outstanding time vesting restricted stock or restricted stock  unit awards shall continue vesting for the three-year period following the  Executive’s Separation from Service; and (iii) all outstanding performance  vesting restricted stock or restricted stock unit awards shall continue to vest for  the two-year period following the Executive’s Separation from Service, with the  number of shares earned based on actual performance determined by the Board at  the end of the original performance period for each such performance vesting  restricted stock or restricted stock unit award.  Any other outstanding equity  awards will continue to vest in accordance with their terms, with any performance  vesting awards subject to the applicable performance conditions.   Notwithstanding the foregoing, upon the Executive’s death following the  Executive’s Separation from Service, any time vesting awards will vest and any  performance vesting awards will vest at their target performance levels.  (iii) continued participation in the Company’s health plans for him and his spouse, on  the same terms as immediately prior to the Separation from Service until such  time that the Executive is eligible for Medicare.  If the Company determines (in  its sole discretion) at any time following the Executive’s Separation from Service  that the Executive’s participation in the Company’s health plans is not or no  longer permitted (whether through COBRA or otherwise) or that continued  participation has a substantial risk of violating applicable law, then the Company  instead shall pay to the Executive, on a monthly basis, a cash payment equal to  the cost of the Executive obtaining the same or substantially similar healthcare  benefits until such time that both the Executive and his spouse are eligible for  Medicare.  (f) Execution and Delivery of Release.  The Company shall not be  required to make the payments and provide the benefits provided for under Section 4(c), 4(d), or  4(e), unless the Executive executes and delivers to the Company, within 60 days following the  Executive’s Separation from Service, a general waiver and release of claims in a form  substantially similar to the form attached hereto as Exhibit A and the release has become  effective and irrevocable in its entirety.  The Executive’s failure or refusal to sign the release (or  his revocation of such release in accordance with applicable laws) shall result in the forfeiture of  the payments and benefits under Sections 4(c), 4(d), and 4(e).  (g) Notice of Termination.  Any termination of employment by the  Company or the Executive shall be communicated by a written “Notice of Termination” to the  other party hereto given in accordance with Section 25 of this Agreement, except that the  Company may waive the requirement for such Notice of Termination by the Executive.  In the  event of a resignation by the Executive without Good Reason, the Notice of Termination shall  

 

8 RESTRICTED  specify the date of termination, which date shall not be less than 30 days after the giving of such  notice, unless the Company agrees to waive any notice period by the Executive.  (h) Resignation from Directorships and Officerships.  The termination  of the Executive’s employment for any reason shall constitute the Executive’s resignation from  (i) any director, officer or employee position the Executive has with the Company and (ii) all  fiduciary positions (including as a trustee) the Executive may hold with respect to any employee  benefit plans or trusts established by the Company.  The Executive agrees that this Agreement  shall serve as written notice of resignation in this circumstance.  5. Definitions.  (a) Cause.  For purposes of this Agreement, “Cause” shall mean the  termination of the Executive’s employment because of:  (i) the Executive’s indictment for any crime, whether such crime is a felony or  misdemeanor, that materially impairs the Executive’s ability to function as  President and Chief Executive Officer of the Company and such crime involves  the purchase or sale of any security, mail or wire fraud, theft, embezzlement,  moral turpitude, or Company property; provided, however, that if the Executive is  found not guilty of the crime and does not enter a plea of guilty or nolo  contendere to such crime or a lesser offense (based on the same operative facts),  either before or after the date of the Executive’s Separation from Service, such  indictment shall not be the basis for a termination for Cause, but will be a  termination without Cause as of the date of the Executive’s Separation from  Service;  (ii) the Executive’s repeated willful neglect of his duties; or  (iii) the Executive’s willful material misconduct in connection with the performance  of his duties (including a willful material breach of Company policies regarding  legal compliance, ethics or workplace conduct) or other willful material breach of  this Agreement.  provided, however, that no act or omission on the Executive’s part shall be considered “willful”  if it is done by him in good faith and with a reasonable belief that Executive’s conduct was in the  best interest of the Company and provided further that no event or condition described in clause  (ii) or (iii) shall constitute Cause unless (w) the Company gives the Executive written notice of  termination of his employment for Cause and the grounds for such termination within 180 days  of the Board first becoming aware of the event giving rise to such Cause, (x) such grounds for  termination are not corrected by the Executive within 30 days of his receipt of such notice, (y) if  the Executive fails to correct such event or condition, the Company gives the Executive at least  15 days’ prior written notice of a special Board meeting called to make a determination that the  Executive should be terminated for Cause and the Executive and his legal counsel are given the  opportunity to address such meeting prior to a vote of the Board, and (z) a determination that  Cause exists is made and approved by 75% of the Board.  

 

9 RESTRICTED  (b) Change in Control.  For purposes of this Agreement, “Change in  Control” shall be deemed to occur upon the occurrence of any of the following events:  (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of  the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the  rules and regulations promulgated thereunder) is or becomes the “beneficial  owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or  indirectly, of more than 20% of the total outstanding voting stock of the  Company, excluding, however, (1) any acquisition directly from the Company,  other than an acquisition by virtue of the exercise of a conversion privilege unless  the security being so converted was itself acquired directly from the Company; (2)  any acquisition by the Company; or (3) any acquisition by any employee benefit  plan (or related trust) sponsored or maintained by the Company or any entity  controlled by the Company;  (ii) the individuals who constitute the Board as of the Effective Date (the “Incumbent  Board”) cease to constitute a majority of the Board; provided, however, (1) that if  the nomination or election of any new director of the Company was approved by a  majority of the Incumbent Board, such new director shall be deemed a member of  the Incumbent Board and (2) that no individual shall be considered a member of  the Incumbent Board if such individual initially assumed office as a result of  either an actual or threatened “Election Contest” (as described in Rule 14a-11  promulgated under the Exchange Act) or as a result of a solicitation of proxies or  consents by or on behalf of any “person” or “group” identified in clause (i) above;  (iii) a reorganization of the Company or the Company consolidates with, or merges  with or into another person or entity or conveys, transfers, leases or otherwise  disposes of all or substantially all of its assets to any person or entity, or any  person or entity consolidates with or merges with or into the Company; provided,  however, that any such transaction shall not constitute a Change in Control if (1)  the shareholders of the Company immediately before such transaction own,  directly or indirectly, immediately following such transaction in excess of 50% of  the combined voting power of the outstanding voting securities of the corporation  or other person or entity resulting from such transaction, (2) no “person” or  “group” owns 20% or more of the outstanding voting securities of the corporation  or other person or entity resulting from such transaction, and (3) a majority of the  Incumbent Board remains; or  (iv) the approval by the shareholders of the Company of a complete liquidation or  dissolution of the Company.  (c) Disability.  For purposes of this Agreement, “Disability” shall be  defined in the same manner as such term or a similar term is defined in the Company long-term  disability plan applicable to the Executive.  

 

10 RESTRICTED  (d) Good Reason.  For purposes of this Agreement, “Good Reason”  shall mean termination of employment by the Executive because of the occurrence of any of the  following events:  (i) a failure by the Company to pay compensation or benefits due and payable to the  Executive in accordance with the terms of this Agreement;  (ii) a material change in the duties or responsibilities performed by the Executive as  Chief Executive Officer of a Public Company;  (iii) a relocation of the Company’s principal office by more than 25 miles from Palm  Beach Gardens, Florida without the Executive’s consent; or  (iv) failure by the Company to obtain agreement by a successor to assume this  Agreement in accordance with Section 17(b);  provided, however, that no event or condition described in clause (i) or (ii) shall constitute Good  Reason unless (x) the Executive gives the Company written notice of his intention to terminate  his employment for Good Reason and the grounds for such termination within 180 days of the  Executive first becoming aware of the event giving rise to such Good Reason and (y) such  grounds for termination are not corrected by the Company within 30 days of its receipt of such  notice.  6. Limitations on Severance Payment and Other Payments or Benefits.  (a) Payments.  Notwithstanding any provision of this Agreement, if  any portion of the severance payments or any other payment under this Agreement, or under any  other agreement with the Executive or plan or arrangement of the Company or its affiliates (in  the aggregate, “Total Payments”), would constitute an “excess parachute payment” and would,  but for this Section 6, result in the imposition on the Executive of an excise tax under Code  Section 4999, then the Total Payments to be made to the Executive shall either be (i) delivered in  full, or (ii) delivered in the greatest amount such that no portion of such Total Payment would be  subject to the Excise Tax, whichever of the foregoing results in the receipt by the Executive of  the greatest benefit on an after-tax basis (taking into account the Executive’s actual marginal rate  of federal, state and local income taxation and the Excise Tax).  (b) Determinations.  Within 30 days following the Executive’s  termination of employment or notice by one party to the other of its belief that there is a payment  or benefit due the Executive that will result in an excess parachute payment, the Company, at the  Company’s expense, shall select a nationally recognized certified public accounting firm (which  may be the Company’s independent auditors) (“Accounting Firm”) reasonably acceptable to the  Executive, to determine (i) the Base Amount (as defined below), (ii) the amount and present  value of the Total Payments, (iii) the amount and present value of any excess parachute  payments determined without regard to any reduction of Total Payments pursuant to Section  6(a), and (iv) the net after-tax proceeds to the Executive, taking into account the tax imposed  under Code Section 4999 if (x) the Total Payments were reduced in accordance with Section  6(a), or (y) the Total Payments were not so reduced.  If the Accounting Firm determines that  Section 6(a)(ii) above applies, then the Termination Payment hereunder or any other payment or  

 

11 RESTRICTED  benefit determined by such Accounting Firm to be includable in Total Payments shall be reduced  or eliminated so that there will be no excess parachute payment.  In such event, payments or  benefits included in the Total Payments shall be reduced or eliminated by applying the following  principles, in order:  (1) the payment or benefit with the later possible payment date shall be  reduced or eliminated before a payment or benefit with an earlier payment date; and (2) cash  payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of  reduction or elimination would violate Code Section 409A, then the reduction shall be made pro  rata among the payments or benefits included in the Total Payments (on the basis of the relative  present value of the parachute payments).  (c) Definitions and Assumptions.  For purposes of this Agreement:  (i)  the terms “excess parachute payment” and “parachute payments” shall have the meanings  assigned to them in Code Section 280G and such “parachute payments” shall be valued as  provided therein; (ii) present value shall be calculated in accordance with Code Section  280G(d)(4); (iii) the term “Base Amount” means an amount equal to the Executive’s “annualized  includible compensation for the base period” as defined in Code Section 280G(d)(1); (iv) for  purposes of the determination by the Accounting Firm, the value of any non-cash benefits or any  deferred payment or benefit shall be determined in accordance with the principles of Code  Sections 280G(d)(3) and (4) and (v) the Executive shall be deemed to pay federal income tax and  employment taxes at his actual marginal rate of federal income and employment taxation, and  state and local income taxes at his actual marginal rate of taxation in the state or locality of the  Executive’s domicile (determined in both cases in the calendar year in which the termination of  employment or notice described in Section 6(b) above is given, whichever is earlier), net of the  maximum reduction in federal income taxes that may be obtained from the deduction of such  state and local taxes.  The covenants set forth in Sections 7, 8 and 9 of this Agreement have  substantial value to the Company and a portion of any Total Payments made to the Executive are  in consideration of such covenants.  For purposes of calculating the “excess parachute payment”  and the “parachute payments”, the parties intend that an amount equal to not less than the  Executive's highest annual base salary during the 12-month period immediately prior to his  termination of employment shall be in consideration of the covenants in Sections 7, 8 and 9  below.  The Accounting Firm shall consider all relevant factors in appraising the fair value of  such covenants and in determining the amount of the Total Payments that shall not be considered  to be a “parachute payment” or “excess parachute payment”.  The determination of the  Accounting Firm shall be addressed to the Company and the Executive and such determination  shall be binding upon the Company and the Executive.  (d) Amendment.  This Section 6 shall be amended to comply with any  amendment or successor provision to Sections 280G or 4999 of the Code.  7. Confidentiality.  (a) Confidential Information.  (i) The Executive agrees that during his employment with the Company for any  reason and for a period of five years following his Separation from Service, he  will not at any time, except with the prior written consent of the Company or any  of its subsidiaries or affiliates (collectively, the “Company Group”) or as required  

 

12 RESTRICTED  by law, directly or indirectly, reveal to any person, entity or other organization  (other than any member of the Company Group or its respective employees,  officers, directors, shareholders or agents) or use for the Executive’s own benefit  any information deemed to be confidential by any member of the Company Group  (“Confidential Information”) relating to the assets, liabilities, employees,  goodwill, business or affairs of any member of the Company Group, including,  without limitation, any information concerning customers, business plans,  marketing data, or other confidential information known to the Executive by  reason of the Executive’s employment by, shareholdings in or other association  with any member of the Company Group; provided that such Confidential  Information does not include any information which (x) is available to the general  public or is generally available within the relevant business or industry other than  as a result of the Executive’s action or (y) is or becomes available to the  Executive after his Separation from Service on a non-confidential basis from a  third-party source provided that such third-party source is not bound by a  confidentiality agreement or any other obligation of confidentiality.  Confidential  Information may be in any medium or form, including, without limitation,  physical documents, computer files or disks, videotapes, audiotapes, and oral  communications.  (ii) In the event that the Executive becomes legally compelled to disclose any  Confidential Information, the Executive shall provide the Company with prompt  written notice so that the Company may seek a protective order or other  appropriate remedy.  In the event that such protective order or other remedy is not  obtained, the Executive shall furnish only that portion of such Confidential  Information or take only such action as is legally required by binding order and  shall exercise his reasonable efforts to obtain reliable assurance that confidential  treatment shall be accorded any such Confidential Information.  The Company  shall promptly pay (upon receipt of invoices and any other documentation as may  be requested by the Company) all reasonable expenses and fees incurred by the  Executive, including attorneys’ fees, in connection with his compliance with the  immediately preceding sentence.  (iii) The Executive understands and acknowledges that the Executive has the right  under U.S. federal law to certain protections for cooperating with or reporting  legal violations to the Securities and Exchange Commission and/or its Office of  the Whistleblower, as well as certain other governmental entities.  No provisions  in this Agreement are intended to prohibit the Executive from disclosing this  Agreement to, or from cooperating with or reporting violations to, the SEC or any  other such governmental entity, and the Executive may do so without disclosure  to the Company.  The Company may not retaliate against the Executive for any of  these activities.  Further, nothing in this Agreement precludes the Executive from  filing a charge of discrimination with the Equal Employment Opportunity  Commission or a like charge or complaint with a state or local fair employment  practice agency.  

 

13 RESTRICTED  (iv) The Executive acknowledges that, pursuant to the Defend Trade Secrets Act of  2016, an individual may not be held liable under any criminal or civil federal or  state trade secret law for disclosure of a trade secret (i) made in confidence to a  government official, either directly or indirectly, or to an attorney, solely for the  purpose of reporting or investigating a suspected violation of law, (ii) in a  complaint or other document filed in a lawsuit or other proceeding, if such filing  is made under seal or (iii) made to his or her attorney or used in a court  proceeding in an anti-retaliation lawsuit based on the reporting of a suspected  violation of law, so long as any document containing the trade secret is filed  under seal and the individual does not disclose the trade secret except pursuant to  court order.  (b) Exclusive Property.  The Executive confirms that all Confidential  Information is and shall remain the exclusive property of the Company Group.  All business  records, papers and documents kept or made by the Executive relating to the business of the  Company Group shall be and remain the property of the Company Group.  Upon the request and  at the expense of the Company Group, the Executive shall promptly make all disclosures,  execute all instruments and papers and perform all acts reasonably necessary to vest and confirm  in the Company Group, fully and completely, all rights created or contemplated by this  Section 7.  8. Noncompetition.  The Executive agrees that during his employment with  the Company and for a period commencing on the Executive’s Separation from Service and  ending on the later of (i) the first anniversary of the Executive’s Separation from Service and, to  the extent the Executive is entitled to any continued vesting under Section 4(a) or 4(e)(ii) of this  Agreement, (ii) the duration of any such continued vesting period but only for so long as the  applicable equity award remains unvested (the “Restricted Period”), the Executive shall not,  without the prior written consent of the Company, directly or indirectly, and whether as principal  or investor or as an employee, officer, director, manager, partner, consultant, agent or otherwise,  alone or in association with any other person, firm, corporation or other business organization,  carry on a business competitive with the Company in any geographic area in which the Company  Group has engaged in business, or is reasonably expected to engage in business during such  Restricted Period (including, without limitation, any area in which any customer of the Company  Group may be located); provided, however, that nothing herein shall limit the Executive’s right  to own not more than 1% of any of the debt or equity securities of any business organization.  9. Non-Solicitation.  The Executive agrees that, during his employment and  for the Restricted Period, the Executive shall not, directly or indirectly, other than in connection  with the proper performance of his duties in his capacity as an executive of the Company,  (a) interfere with or attempt to interfere with any relationship between the Company Group and  any of its employees, consultants, independent contractors, agents or representatives, (b) employ,  hire or otherwise engage, or attempt to employ, hire or otherwise engage, any current or former  employee, consultant, independent contractor, agent or representative of the Company Group in  a business competitive with the Company Group, (c) solicit the business or accounts of the  Company Group or (d) divert or attempt to direct from the Company Group any business or  interfere with any relationship between the Company Group and any of its clients, suppliers,  customers or other business relations.  As used herein, the term “indirectly” shall include,  

 

14 RESTRICTED  without limitation, the Executive’s permitting the use of the Executive’s name by any competitor  of any member of the Company Group to induce or interfere with any employee or business  relationship of any member of the Company Group.  10. Assignment of Developments.  The Executive previously entered into an  Employee Invention, Proprietary Information and Copyright Agreement, dated September 19,  2007 (“Assignment of Developments Agreement”).  The Executive agrees that the terms of such  Assignment of Developments Agreement shall continue in full force and effect.  11. Full Settlement.  Prior to the effective date of a Change in Control, in the  event the Company believes that the Executive is in material breach or has materially breached a  provision of this Agreement, the Company may withhold any further payment of amounts due  and payable under this Agreement, provided that (x) the Company gives the Executive at least 15  days’ prior written notice of a special Board meeting called to make a determination that the  Executive is in material breach or has materially breached a provision of this Agreement and the  Executive and his legal counsel are given the opportunity to address such meeting prior to a vote  of the Board and (y) a determination that the Executive is in material breach or has materially  breached a provision of this Agreement is made and approved by 75% of the Board.  Any such  determination by the Board shall not be binding on an arbitrator or other trier of fact as to  whether the Executive has breached this Agreement, and shall not limit or otherwise affect the  rights or remedies available to the Executive or the Company in the event of a dispute under this  Agreement.  Except as provided above in this Section 11, the Company’s obligation to pay the  Executive the amounts required by this Agreement shall be absolute and unconditional and shall  not be affected by any circumstances, including, without limitation, any offset, counterclaim,  recoupment, defense or other right which the Company may have against the Executive or  anyone else.  All payments and benefits to which the Executive is entitled under this Agreement  shall be made and provided without offset, deduction, or mitigation on account of income that  the Executive may receive from employment from the Company or otherwise.  This Section  11 shall not be interpreted to otherwise limit the remedies available to the Company, whether at  law or in equity, in the event the Executive breaches any provision of this Agreement.  12. Certain Remedies.  (a) Injunctive Relief.  Without intending to limit the remedies  available to the Company Group, the Executive agrees that a breach of any of the covenants  contained in Sections 7 through 10 of this Agreement may result in material and irreparable  injury to the Company Group for which there is no adequate remedy at law, that it will not be  possible to measure damages for such injuries precisely and that, in the event of such a breach or  threat thereof, any member of the Company Group shall be entitled to seek a temporary  restraining order or a preliminary or permanent injunction, or both, without bond or other  security, restraining the Executive from engaging in activities prohibited by the covenants  contained in Sections 7 through 10 of this Agreement or such other relief as may be required  specifically to enforce any of the covenants contained in this Agreement.  Such injunctive relief  in any court shall be available to the Company Group in lieu of, or prior to or pending  determination in, any arbitration proceeding.  

 

15 RESTRICTED  (b) Extension of Restricted Period.  In addition to the remedies the  Company may seek and obtain pursuant to this Section 12, the Restricted Period shall be  extended by any and all periods during which the Executive shall be found by a court or  arbitrator possessing personal jurisdiction over him to have been in violation of the covenants  contained in Sections 8 and 9 of this Agreement.  13. Section 409A of the Code.  (a) General.  This Agreement is intended to meet the requirements of  Section 409A of the Code, and shall be interpreted and construed consistent with that intent.  (b) Deferred Compensation.  Notwithstanding any other provision of  this Agreement, to the extent that the right to any payment (including the provision of benefits)  hereunder provides for the “deferral of compensation” within the meaning of Section 409A(d)(1)  of the Code, the payment shall be paid (or provided) in accordance with the following:  (i) If the Executive is a “Specified Employee” within the meaning of  Section 409A(a)(2)(B)(i) of the Code on the date of the Executive’s “Separation  from Service” within the meaning of Section 409A(a)(2)(A)(i) of the Code, then  no such payment shall be made or commence during the period beginning on the  date of the Executive’s Separation from Service and ending on the date that is  six months following the Executive’s Separation from Service or, if earlier, on the  date of the Executive’s death.  The amount of any payment that would otherwise  be paid to the Executive during this period shall instead be paid to the Executive  on the fifteenth day of the first calendar month following the end of the period  (“Delayed Payment Date”).  If payment of an amount is delayed as a result of this  Section 13(b)(i), such amount shall be increased with interest from the date on  which such amount would otherwise have been paid to the Executive but for this  Section 13(b)(i) to the day prior to the Delayed Payment Date.  The rate of  interest shall be compounded monthly, at the prime rate as published by Citibank  NA for the month in which occurs the date of the Executive’s Separation from  Service.  Such interest shall be paid on the Delayed Payment Date.  (ii) Payments with respect to reimbursements of expenses shall be made in  accordance with Company policy and in no event later than the last day of the  calendar year following the calendar year in which the relevant expense is  incurred.  The amount of expenses eligible for reimbursement during a calendar  year may not affect the expenses eligible for reimbursement in any other calendar  year.  14. Source of Payments.  All payments provided under this Agreement, other  than payments made pursuant to a plan which provides otherwise, shall be paid in cash from the  general funds of the Company, and no special or separate fund shall be established, and no other  segregation of assets shall be made, to assure payment.  The Executive shall have no right, title  or interest whatsoever in or to any investments which the Company may make to aid the  Company in meeting its obligations hereunder.  To the extent that any person acquires a right to  

 

16 RESTRICTED  receive payments from the Company hereunder, such right shall be no greater than the right of an  unsecured creditor of the Company.  15. Arbitration.  Any dispute or controversy arising under or in connection  with this Agreement or otherwise in connection with the Executive’s employment by the  Company that cannot be mutually resolved by the parties to this Agreement and their respective  advisors and representatives shall be settled exclusively by arbitration in Palm Beach County,  Florida in accordance with the commercial rules of the American Arbitration Association before  one arbitrator of exemplary qualifications and stature, who shall be selected jointly by an  individual to be designated by the Company and an individual to be selected by the Executive, or  if such two individuals cannot agree on the selection of the arbitrator, who shall be selected by  the American Arbitration Association, and judgment upon the award rendered may be entered in  any court having jurisdiction thereon.  16. Attorney’s Fees.  The Company shall, from time to time, pay or reimburse  the Executive, on an after-tax basis, for all reasonable legal fees and expenses (including court  costs) incurred by him as a result of any claim by him (or on his behalf) to enforce the terms of  this Agreement or collect any payments or benefits due to the Executive hereunder.  Payments  with respect to such legal fees and expenses shall be made in advance of any final disposition  and within ten business days after the Executive submits documentation of such fees to the  Company in accordance with the Company’s business expense reimbursement policies and  procedures.  17. Non-assignability; Binding Agreement.  (a) By the Executive.  This Agreement and any and all rights, duties,  obligations or interests hereunder shall not be assignable or delegable by the Executive.  (b) By the Company.  This Agreement and all of the Company’s rights  and obligations hereunder shall not be assignable by the Company except as incident to a  reorganization, merger or consolidation, or transfer of all or substantially all of the Company’s  assets.  If the Company shall be merged or consolidated with another entity, the provisions of  this Agreement shall be binding upon and inure to the benefit of the entity surviving such merger  or resulting from such consolidation.  The Company will require any successor (whether direct  or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the  business and/or assets of the Company, by agreement in form and substance satisfactory to the  Executive, to expressly assume and agree to perform this Agreement in the same manner that the  Company would be required to perform it if no such succession had taken plan.  The provisions  of this paragraph shall continue to apply to each subsequent employer of the Executive hereunder  in the event of any subsequent merger, consolidation, transfer of assets of such subsequent  employer or otherwise.  (c) Binding Effect.  This Agreement shall be binding upon, and inure  to the benefit of, the parties hereto, any successors to or assigns of the Company and the  Executive’s heirs and the personal representatives of the Executive’s estate.  

 

17 RESTRICTED  18. Withholding.  Any payments made or benefits provided to the Executive  under this Agreement shall be reduced by any applicable withholding taxes or other amounts  required to be withheld by law or contract.  19. Amendment; Waiver.  This Agreement may not be modified, amended or  waived in any manner, except by an instrument in writing signed by both parties hereto.  The  waiver by either party of compliance with any provision of this Agreement by the other party  shall not operate or be construed as a waiver of any other provision of this Agreement, or of any  subsequent breach by such party of a provision of this Agreement.  20. Governing Law.  All matters affecting this Agreement, including the  validity thereof, are to be subject to, and interpreted and construed in accordance with, the laws  of the State of Florida applicable to contracts executed in and to be performed in that State.  21. Survival of Certain Provisions.  The rights and obligations set forth in this  Agreement that, by their terms, extend beyond the Term shall survive the Term.  22. Entire Agreement; Supersedes Previous Agreements.  This Agreement, the  Assignment of Developments Agreement, the Salary Reduction Letter, and any outstanding  equity award agreements entered into prior to the Effective Date contain the entire agreement  and understanding of the parties hereto with respect to the matters covered herein including,  without limitation, the Existing Employment Agreement, and supersede all prior or  contemporaneous negotiations, commitments, agreements and writings with respect to the  subject matter hereof (including the Existing Employment Agreement), all such other  negotiations, commitments, agreements and writings shall have no further force or effect, and the  parties to any such other negotiation, commitment, agreement or writing shall have no further  rights or obligations thereunder.  23. Counterparts.  This Agreement may be executed by either of the parties  hereto in counterparts, each of which shall be deemed to be an original, but all such counterparts  shall together constitute one and the same instrument.  24. Headings.  The headings of sections herein are included solely for  convenience of reference and shall not control the meaning or interpretation of any of the  provisions of this Agreement.  25. Notices.  All notices or communications hereunder shall be in writing,  addressed as follows:  To the Company:  11780 US Highway 1, Suite 600  Palm Beach Gardens, Florida 33408  Attention:  General Counsel  Email: ryan.urness@dycominc.com 

 

18 RESTRICTED  With a copy to:    John J. Cannon III  Shearman & Sterling LLP  599 Lexington Avenue  New York, NY 10022  Email:  jcannon@shearman.com To the Executive:  Steven E. Nielsen  c/o Dycom Industries, Inc.  11780 US Highway 1, Suite 600  Palm Beach Gardens, Florida 33408  Email: steve.nielsen@dycominc.com With a copy to the Executive’s counsel:  Harvey Koning, Esq.  Varnum LLP  333 Bridge Street NW  Grand Rapids, Michigan 49504  Email: hkoning@varnumlaw.com All such notices shall be conclusively deemed to be received and shall be  effective (i) if sent by hand delivery, upon receipt or (ii) if sent by electronic mail or facsimile,  upon receipt by the sender of confirmation of such transmission; provided, however, that any  electronic mail or facsimile will be deemed received and effective only if followed, within 48  hours, by a hard copy sent by certified United States mail.  [SIGNATURE PAGE FOLLOWS]  

 

19 RESTRICTED  IN WITNESS WHEREOF, the Company has caused this Agreement to be signed  by its officer pursuant to the authority of its Board, and the Executive has executed this  Agreement, as of the day and year first written above.  DYCOM INDUSTRIES, INC.  By: Name: Ryan F. Urness   Title: Vice President, General  Counsel and Secretary  EXECUTIVE  Name:  Steven E. Nielsen  

 

A-1 RESTRICTED  EXHIBIT A  FORM OF WAIVER AND MUTUAL RELEASE  This Waiver and Mutual Release, dated as of _____________, (this “Release”) by  and between Steven E. Nielsen (the “Executive”) and Dycom Industries, Inc., a Florida  corporation (the “Company”).  WHEREAS, the Executive and the Company are parties to an Employment  Agreement, dated May 21, 2020 (the “Employment Agreement”), which provided for the  Executive’s employment on the terms and conditions specified therein; and  WHEREAS, pursuant to Section 4(f) of the Employment Agreement, the  Executive has agreed to execute and deliver a release and wavier of claims of the type and nature  set forth herein as a condition to his entitlement to certain payments and benefits upon his  termination of employment with the Company effective as of _____________ (the “Effective  Date”).  NOW, THEREFORE, in consideration of the premises and mutual promises  herein contained and for other good and valuable consideration received or to be received in  accordance with the terms of the Employment Agreement, the Executive and the Company agree  as follows:  1. Return of Property.  On or prior to the Effective Date, the Executive  represents and warrants that he will return all property made available to him in connection with  his service to the Company, including, without limitation, credit cards, any and all records,  manuals, reports, papers and documents kept or made by the Executive in connection with his  employment as an officer or employee of the Company and its subsidiaries and affiliates, all  computer hardware or software, cellular phones, files, memoranda, correspondence, vendor and  customer lists, financial data, keys and security access cards.  2. Executive Release.  (a) In consideration of the payments and benefits provided to the  Executive under the Employment Agreement and after consultation with counsel, the Executive  and each of the Executive’s respective heirs, executors, administrators, representatives, agents,  successors and assigns (collectively, the “Executive Parties”) hereby irrevocably and  unconditionally release and forever discharge the Company and its subsidiaries and affiliates and  each of their respective officers, employees, directors, shareholders and agents (“Company  Parties”) from any and all claims, actions, causes of action, rights, judgments, obligations,  damages, demands, accountings or liabilities of whatever kind or character (collectively,  “Claims”), including, without limitation, any Claims under any federal, state, local or foreign  law, that the Executive Parties may have, or in the future may possess, arising out of (i) the  Executive’s employment relationship with and service as an employee, officer or director of the  Company, and the termination of such relationship or service, and (ii) any event, condition,  circumstance or obligation that occurred, existed or arose on or prior to the date hereof;  provided, however, that the Executive does not release, discharge or waive (i) any rights to  payments and benefits provided under the Employment Agreement that are contingent upon the  

 

A-2 RESTRICTED  execution by the Executive of this Release, (ii) any right the Executive may have to enforce this  Release or the Employment Agreement, (iii) the Executive’s eligibility for indemnification in  accordance with the Company’s certificate of incorporation, bylaws or other corporate  governance document, or any applicable insurance policy, with respect to any liability he  incurred or might incur as an employee, officer or director of the Company, or (iv) any claims  for accrued, vested benefits under any long-term incentive, employee benefit or retirement plan  of the Company subject to the terms and conditions of such plan and applicable law including,  without limitation, any such claims under the Employee Retirement Income Security Act of  1974.  (b) Whistleblower Rights.  The Executive understands and  acknowledges that the Executive has the right under U.S. federal law to certain protections for  cooperating with or reporting legal violations to the Securities and Exchange Commission and/or  its Office of the Whistleblower, as well as certain other governmental entities.  No provisions in  this Release are intended to prohibit the Executive from disclosing this Release to, or from  cooperating with or reporting violations to, the SEC or any other such governmental entity, and  the Executive may do so without disclosure to the Company.  The Company may not retaliate  against Executive for any of these activities.  Further, nothing in this Release precludes the  Executive from filing a charge of discrimination with the Equal Employment Opportunity  Commission or a like charge or complaint with a state or local fair employment practice agency.   The Company may not retaliate against Executive for any of these activities, and nothing in this  Release would require Executive to waive any monetary award or other payment that Executive  might become entitled to from any such governmental entity.  (c) DTSA.  The Executive acknowledges that, pursuant to the Defend  Trade Secrets Act of 2016, an individual may not be held liable under any criminal or civil  federal or state trade secret law for disclosure of a trade secret (i) made in confidence to a  government official, either directly or indirectly, or to an attorney, solely for the purpose of  reporting or investigating a suspected violation of law, (ii) in a complaint or other document filed  in a lawsuit or other proceeding, if such filing is made under seal or (iii) made to his or her  attorney or used in a court proceeding in an anti-retaliation lawsuit based on the reporting of a  suspected violation of law, so long as any document containing the trade secret is filed under seal  and the individual does not disclose the trade secret except pursuant to court order.  (d) Executive’s Specific Release of ADEA Claims.  In further  consideration of the payments and benefits provided to the Executive under the Employment  Agreement, the Executive Parties hereby unconditionally release and forever discharge the  Company Parties from any and all Claims that the Executive Parties may have as of the date the  Executive signs this Release arising under the Federal Age Discrimination in Employment Act of  1967, as amended, and the applicable rules and regulations promulgated thereunder  (“ADEA”).  By signing this Release, the Executive hereby acknowledges and confirms the  following:  (i) the Executive was advised by the Company in connection with his termination to  consult with an attorney of his choice prior to signing this Release and to have such attorney  explain to the Executive the terms of this Release, including, without limitation, the terms  relating to the Executive’s release of claims arising under ADEA, and the Executive has in fact  consulted with an attorney; (ii) the Executive was given a period of not fewer than 21 days to  consider the terms of this Release and to consult with an attorney of his choosing with respect  

 

A-3 RESTRICTED  thereto; and (iii) the Executive knowingly and voluntarily accepts the terms of this Release.  The  Executive also understands that he has seven days following the date on which he signs this  Release (the “Revocation Period”) within which to revoke the release contained in this  paragraph, by providing the Company a written notice of his revocation of the release and waiver  contained in this paragraph.  No such revocation by the Executive shall be effective unless it is in  writing and signed by the Executive and received by the Company prior to the expiration of the  Revocation Period.  3. Company Release.  The Company for itself and on behalf of the Company  Parties hereby irrevocably and unconditionally release and forever discharge the Executive  Parties from any and all Claims, including, without limitation, any Claims under any federal,  state, local or foreign law, that the Company Parties may have, or in the future may possess,  arising out of (i) the Executive’s employment relationship with and service as an employee,  officer or director of the Company, and the termination of such relationship or service, and  (ii) any event, condition, circumstance or obligation that occurred, existed or arose on or prior to  the date hereof, excepting any Claim which would constitute or result from conduct by the  Executive that would constitute a crime under applicable state or federal law; provided, however,  notwithstanding the generality of the foregoing, nothing herein shall be deemed to release the  Executive Parties from (A) any rights or claims of the Company arising out of or attributable to  (i) the Executive’s actions or omissions involving or arising from fraud, deceit, theft or  intentional or grossly negligent violations of law, rule or statute while employed by the Company  and (ii) the Executive’s actions or omissions taken or not taken in bad faith with respect to the  Company; and (B) the Executive or any other Executive Party’s obligations under this Release or  the Employment Agreement.  4. No Assignment.  The parties represent and warrant that they have not  assigned any of the Claims being released under this Release.  5. Proceedings.  The parties represent and warrant that they have not filed,  and they agree not to initiate or cause to be initiated on their behalf, any complaint, charge, claim  or proceeding against the other party before any local, state or federal agency, court or other  body relating to the Executive’s employment or the termination thereof, other than with respect  to any claim that is not released hereunder including with respect to the obligations of the  Company to the Executive and the Executive to the Company under the Employment Agreement  (each, individually, a “Proceeding”), and each party agrees not to participate voluntarily in any  Proceeding.  The parties waive any right they may have to benefit in any manner from any relief  (whether monetary or otherwise) arising out of any Proceeding.  6. Remedies.  (a) Each of the parties understand that by entering into this Release  such party will be limiting the availability of certain remedies that such party may have against  the other party and also limiting such party’s ability to pursue certain claims against the other  party.  (b) Each of the parties acknowledge and agree that the remedy at law  available to such party for breach of any of the obligations under this Release would be  

 

A-4 RESTRICTED  inadequate and that damages flowing from such a breach may not readily be susceptible to being  measured in monetary terms.  Accordingly, each of the parties acknowledge, consent and agree  that, in addition to any other rights or remedies that such party may have at law or in equity, such  party shall be entitled to seek a temporary restraining order or a preliminary or permanent  injunction, or both, restraining the other party from breaching its obligations under this  Release.  Such injunctive relief in any court shall be available to the relevant party, in lieu of, or  prior to or pending determination in, any arbitration proceeding.  7. Cooperation.  From and after the Effective Date, the Executive shall  cooperate in all reasonable respects with the Company and their respective directors, officers,  attorneys and experts in connection with the conduct of any action, proceeding, investigation or  litigation involving the Company, including any such action, proceeding, investigation or  litigation in which the Executive is called to testify.  8. Unfavorable Comments.  (a) Public Comments by the Executive.  The Executive agrees to  refrain from making, directly or indirectly, now or at any time in the future, whether in writing,  orally or electronically:  (i) any derogatory comment concerning the Company or any of their  current or former directors, officers, employees or shareholders, or (ii) any other comment that  could reasonably be expected to be detrimental to the business or financial prospects or  reputation of the Company.  (b) Public Comments by the Company.  The Company agrees to  instruct its directors and employees to refrain from making, directly or indirectly, now or at any  time in the future, whether in writing, orally or electronically:  (i) any derogatory comment  concerning the Executive, or (ii) any other comment that could reasonably be expected to be  detrimental to the Executive’s business or financial prospects or reputation.  9. Severability Clause.  In the event any provision or part of this Release is  found to be invalid or unenforceable, only that particular provision or part so found, and not the  entire Release, will be inoperative.  10. Nonadmission.  Nothing contained in this Release will be deemed or  construed as an admission of wrongdoing or liability on the part of the Company or the  Executive.  11. Governing Law.  All matters affecting this Release, including the validity  thereof, are to be governed by, and interpreted and construed in accordance with, the laws of the  State of Florida applicable to contracts executed in and to be performed in that State.  12. Arbitration.  Any dispute or controversy arising under or in connection  with this Release shall be resolved in accordance with Section 15 of the Employment  Agreement.  13. Notices.  All notices or communications hereunder shall be made in  accordance with Section 25 of the Employment Agreement:  

 

A-5 RESTRICTED  THE EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS  RELEASE AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES ITS  CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS  RELEASE AND THE RELEASES PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS  OWN FREE WILL.  [SIGNATURE PAGE FOLLOWS]  

 

A-6 RESTRICTED  IN WITNESS WHEREOF, the parties have executed this Release as of the date  first set forth above.  DYCOM INDUSTRIES, INC.  By: Name: Title:  EXECUTIVE  By: Name:  Steven E. Nielsenfinalpeyovichemploymenta

EMPLOYMENT AGREEMENT  This employment agreement (this “Employment Agreement”) is made and  entered into as of the 6th day of January, 2021, by and between Daniel S. Peyovich (the  “Employee”) and Dycom Industries, Inc., a Florida Corporation (“Dycom” or the “Company”).  WHEREAS, the Company and the Employee desire to provide for the  employment of the Employee, effective as of the Effective Date;  NOW, THEREFORE, in consideration of the mutual covenants and promises  contained herein and other good and valuable consideration, the receipt and sufficiency of which  are hereby expressly acknowledged, the parties agree as follows:  1. Employment.  Subject to the terms and conditions hereof, effective on or  about January 6, 2021 (the “Effective Date”), the Company hereby agrees to employ the  Employee as the Executive Vice President of Operations of the Company. The Employee agrees  to perform such specific duties and accept such responsibilities as the Company’s board of  directors (the “Board”) and the Chief Executive Officer may from time to time establish that are  reasonably related and consistent with the Employee’s position as the Executive Vice President  of Operations of the Company.  The Employee shall report directly to the Chief Executive  Officer.  The Employee hereby accepts employment by the Company as the Executive Vice  President of Operations, subject to the terms and conditions hereof, and agrees to devote his full  business time and attention to his duties hereunder, to the best of his abilities. On or about the  date on which Timothy R. Estes no longer serves as the Chief Operating Officer of the Company  (which shall occur no later than the Company’s 2021 Annual Meeting of Shareholders), the  Company agrees, subject to the Employee’s continued employment with the Company as of such  date, to appoint the Employee as Chief Operating Officer (the “Transition Date”). Both parties  agree that as of the Transition Date, the Employee will no longer be the Executive Vice President  of Operations and that all references to Executive Vice President of Operations herein shall refer  to Chief Operating Officer.  2. Term of Employment.  The Employee’s employment pursuant to this  Employment Agreement shall commence on the Effective Date and shall terminate upon the  earlier to occur of (i) termination pursuant to Section 4 hereof or (ii) the third anniversary of the  Effective Date; provided, however, that the term of the Employee’s employment hereunder shall  be automatically extended without further action of either party for additional one year periods,  unless written notice of either party’s intention not to extend has been given to the other party  hereto at least 60 days prior to the expiration of the then effective term.  Notwithstanding  anything in this Employment Agreement to the contrary, if a Change of Control (as defined in  Section 4(f) hereof) occurs during term of the Employee’s employment hereunder, the  Employee’s employment under this Employment Agreement shall be extended for 24 months  following the consummation of the Change of Control and this Employment Agreement shall  terminate upon the earlier of (x) the second anniversary of the consummation of the Change of  Control and (y) the termination of the Employee’s employment under this Employment  Agreement (the “Extended Term”).  The period from the Effective Date until the termination of  the Employee’s employment hereunder, including, if applicable, the Extended Term, is referred  to as the “Employment Term.”  Exhibit 10.16* 

 

2  3. Compensation, Benefits and Expenses.  Subject to the provisions of this  Employment Agreement, the Company shall pay and provide the following compensation and  other benefits to the Employee during the Term as compensation for services rendered  hereunder:  (a) Base Salary.  For services rendered under this Employment Agreement,  the Company will pay the Employee a base annual salary of $625,000 (such applicable annual  rate referred to herein as the “Base Salary”), which shall be subject to review in May 2021.   Payment will be made on the regularly scheduled pay dates of the Company, subject to all  appropriate withholdings or other deductions required by applicable law or by the Company’s  established policies applicable to employees of the Company.  The Company may increase the  Base Salary in its sole discretion but shall not reduce the Base Salary below the rate established  by this Employment Agreement without the Employee’s written consent.  (b) Annual Incentive Bonus.  During the Employment Term, beginning with  the fiscal year ending on January 29, 2022, the Employee shall be entitled to participate in the  Company’s annual incentive plan, under which the Employee shall be eligible to receive an  annual target bonus equal to eighty percent (80%) of Base Salary if certain performance criteria  and measures are satisfied, as determined by and within the sole discretion of the Company.    (c) Cash Sign-on Bonus.  The Company shall pay the Employee a cash sign- on bonus in the amount of $900,000, less applicable withholdings, payable (i) with respect to  fifty percent (50%) on the next regularly scheduled Company payroll date after the Effective  Date and (ii) with respect to the other fifty percent (50%) on next regularly scheduled Company  payroll date following the six (6)-month anniversary of the Effective Date, subject to the  Employee’s continued employment on such date except as provided in Section 4 hereof.  (d) Equity Sign-on Grant. On or about the Effective Date (the “Grant Date”),  the Employee shall receive a grant of a number of time-based restricted stock units with (i) an  aggregate grant date fair value equal to $1,200,000 based on the closing price of the Company’s  stock on the trading day immediately preceding the Grant Date and (ii) a vesting schedule of  25% annually on each of the first four anniversaries of the Grant Date, subject to Employee’s  continued employment on the applicable vesting date (the “Initial RSUs”). The Initial RSUs shall  be subject to the terms of the Dycom 2012 Long Term Incentive Plan, as amended (the “LTIP”)  and the applicable award agreement, which shall be on a form substantially similar to the form  the Company uses to make annual grants to other senior executives of the Company.  Notwithstanding anything contained in the annual grant form of award agreement, any unvested  portion of the Initial RSUs shall vest in full, and be promptly settled following vesting, in the  event of either (i) a resignation by the Employee following the Company’s assignment to the  Employee of duties or responsibilities that are fundamentally, manifestly and indisputably  inconsistent with and inferior to those customarily assigned to a chief operating officer (provided  that the Employee gives prompt written notice to the Company specifying in particular the  circumstances he believes make this clause (i) applicable and the Company fails to remedy such  circumstances within thirty (30) days of receipt of such notice), or (ii) a termination of the  Employee’s employment by the Company without Cause.   

 

3  (e) Benefit Plans.  During the Employment Term, in addition to the  compensation payable to the Employee as described above, the Employee shall be entitled to  participate in all the employee benefit plans or programs of the Company that are available to  employees of the Company generally (“Employee Benefits”).  (f) Long-Term Incentive Plan.  The Employee shall be entitled to participate  in the LTIP or a successor plan which may be in effect from time to time, with a potential target  award opportunity of one hundred forty percent (140%) of Base Salary, as determined by the  Company in its sole discretion.  The target award opportunity for the Employee and other  executives may be modified by the Company in its sole discretion from time to time, based on  market checks and other factors it deems relevant.  The Board reserves the right to determine  eligibility and set or modify the terms of such a plan at any time within its sole discretion.  (g) Expenses.  During the Employment Term, the Company shall reimburse  the Employee for such reasonable out-of-pocket expenses as he may incur from time to time for  and on behalf of the furtherance of the Company’s business, provided that the Employee submits  to the Company satisfactory documentation or other support for such expenses in accordance  with the Company’s expense reimbursement policy.    (h) Moving Expenses.  The Company shall reimburse Employee’s actual  expenses (upon submission of appropriate supporting documentation) incurred in connection  with relocating from Seattle, WA to the Palm Beach Gardens, Florida area as follows: (i) the  costs associated with two (2) house hunting trips for Employee and his spouse (including  reasonable and customary travel and lodging costs), (ii) the following expenses incurred in  connection with the sale of Employee’s primary residence in Seattle, WA: prevailing real estate  commission, not to exceed 6%; legal fees, if required in the state or city; title insurance if required  by law to be paid by seller; state and local transfer taxes and fees; building inspection if required  by law; and recording release and escrow closing fees; (iii) the reasonable costs associated with  temporary lodging expenses, such as hotels and temporary rental units, for up to six (6) months;  (iv) costs associated with transporting Employee and his immediate family and their household and  personal property (including packing, unpacking and vehicles transportation); and (v) other  reasonable and customary out-of-pocket expenses, directly related to relocation, which have been  approved by the Chief Executive Officer, in writing, prior to being incurred (collectively, the  “Moving Expenses”). To the extent that any of the reimbursements described in Section 3(h) are  taxable as ordinary income, the Company shall also cover the taxes on such reimbursements.   Notwithstanding anything in this Employment Agreement to the contrary, if the Employee’s  employment is terminated by the Company for Cause (as defined below) or if the Employee  resigns for any reason, in each case prior to the first anniversary of the Effective Date, the  Employee shall promptly repay the Company the full amount of the Moving Expenses, including  any payment to cover the taxes on the Moving Expenses.    (i) Vacation.  The Employee shall be entitled to vacation time consistent with  the applicable policies of the Company for other senior executives of the Company as in effect  from time to time.  

 

4  4. Termination.  (a) Termination for Cause.  The Company shall have the right to terminate the  Employee’s employment at any time and for any reason.  If the Employee is terminated for  Cause (as defined in this Section 4(a)), the Company shall not have any obligation to pay the  Employee any Base Salary or other compensation or to provide any employee benefits  subsequent to the date of such Employee’s termination of employment (unless required by  applicable law), including, without limitation, Severance Benefits and Continued Health Benefits  (each as defined in Section 4(b) hereof).  Termination for “Cause” shall mean termination of  employment for any of the following reasons:  (i) the Employee entering a plea of no-contest with respect to, or being  convicted by a court of competent and final jurisdiction of, any crime, whether or not involving  the Company, that constitutes a felony in the jurisdiction involved;  (ii) any willful misconduct by the Employee that is materially injurious to the  financial condition or business reputation of the Company;  (iii) Employee materially breaches a duty of loyalty owed to the Company or,  as a result of his gross negligence, materially breaches a duty of care owed to the Company;  (iv) Employee’s willful misconduct in connection with the performance of his  duties (including a willful material breach of Company policies regarding legal compliance,  ethics, or workplace conduct); or  (v) Employee materially breaches this Employment Agreement or fails or  refuses to perform any of his material duties as required by this Employment Agreement in any  respect, other than as already provided in Section 4(a)(i)-(iv), after Employee being given  written notice of such breach, failure or refusal, and Employee’s failure to cure the same within  30 calendar days of receipt of such notice.  (b) Termination without Cause.  Subject to the provisions of Section 4(c), if,  prior to the expiration of the Employment Term, the Company terminates the Employee’s  employment without Cause, the Company shall, subject to the Employee’s execution and non- revocation of a general release of claims against the Company in a form substantially similar to  the form attached hereto as Exhibit A, provide the Employee with Severance Benefits and  Continued Health Benefits.  “Severance Benefits” means an amount equal to two (2) times the  sum of (i) Base Salary (at the rate in effect on the date the Employee’s employment is  terminated) plus (ii) Bonus (defined as the greater of (1) the average bonus amount paid to the  Employee over the three fiscal years immediately preceding the year of termination and (2) 80%  of Base Salary at the rate in effect on the date the Employee’s employment is terminated), paid  over the twenty-four (24)-month period immediately following Employee’s termination of  employment without Cause (such period being referred to hereunder as the “Severance Period”),  at such intervals as the Employee would have received payments of Base Salary if he had  remained in the active service of the Company; provided, however, that, in accordance with  Section 409A of the Internal Revenue Code (the “Code”), and as described more fully in Section  25(b), payment of a portion of the Severance Benefits may be delayed until the six-month  

 

5  anniversary of the Employee’s termination of employment.  The Company shall also provide the  Employee and his eligible dependents with group medical and life insurance after termination of  the Employee’s employment without Cause (to the extent such eligible dependents were  participating in the Company’s group medical and life insurance programs prior to the  Employee’s termination of employment) or, in the event such participation is not permitted, a  cash payment equal to the value of the benefit excluded, payable in equal monthly installments  beginning 60 days following the Employee’s Separation from Service (as defined in  Section 4(f) hereof) (the “Continued Health Benefits”) until the earlier of (x) the end of the  Severance Period or (y) the Employee obtaining other employment and becoming eligible to  participate in the medical and life insurance plans of his new employer.  In addition, if the  Company terminates the Employee’s employment without Cause prior to payment to the  Employee of the second installment of the Cash Sign-on Bonus amount described in Section  3(c), the Company shall pay the Employee that installment on the next regularly scheduled  Company payroll date following the execution and non-revocation of the general release of  claims. Further, in accordance with Section 3(d), the vesting and settlement of any unvested  Initial RSUs shall be accelerated. Any general release of claims against the Company required  pursuant to this Section 4(b) shall be executed and (unless revoked) become irrevocable within  sixty (60) days following the date of the Employee’s termination of employment.  (c) Conditions Applicable to Severance Period.  If, during the Severance  Period, the Employee breaches any of his then applicable obligations under this Employment  Agreement (including, but not limited to, Sections 6 through 8) or such other agreement between  the Company and the Employee, the Company may, upon written notice to the Employee  terminate the Severance Period and cease to make any payments or provide any benefits,  including, without limitation, Severance Benefits and Continued Health Benefits.  (d) Resignation by the Employee.  In the event the Employee resigns his  employment with the Company, the Employee:  (i) shall provide the Company with  sixty (60) days prior written notice; (ii) shall not make any public announcements concerning his  resignation prior to the resignation date without the written consent of the Company and  (iii) shall continue to perform faithfully the duties assigned to him under this Employment  Agreement (or such other duties as the Company or Board may assign to him) from the date of  such notice until the termination date.  In addition, in the event the Employee resigns his  employment with the Company for any reason, the Company shall not have any obligation to pay  the Employee any Base Salary or other compensation or to provide any employee benefits  subsequent to the date of such Employee’s termination of employment (unless required by  applicable law or as provided in Section 3(d)), including, without limitation, Severance Benefits  or Continued Health Benefits.  Notwithstanding the foregoing, this Section 4(d) shall not apply  in the event the Employee resigns his employment for Good Reason on or following a Change of  Control pursuant to Section 4(f) hereof.  (e) Termination Upon Death or Disability.  Unless otherwise terminated  earlier pursuant to the terms of this Employment Agreement, the Employee’s employment under  this Employment Agreement shall terminate upon his death and may be terminated by the  Company upon giving not less than thirty (30) days written notice to the Employee in the event  that the Employee, because of physical or mental disability or incapacity, is unable  (notwithstanding reasonable accommodations) to perform (or, in the opinion of a physician, is  

 

6  reasonably expected to be unable to perform) his duties hereunder for an aggregate of  one hundred eighty (180) days during any twelve-month period (“Disabled”).  All questions  arising with respect to whether the Employee is Disabled shall be determined by a reputable  physician mutually selected by the Company and the Employee at the time such question arises.   If the Company and the Employee cannot agree upon the selection of a physician within a period  of seven (7) days after such question arises, then the Chief of Staff of Good Samaritan Hospital  in Palm Beach County, Florida shall be asked to select a physician to make such determination.   The determination of the physician selected pursuant to the above provisions of this  Section 4(e) as to such matters shall be conclusively binding upon the parties hereto.  (f) Termination without Cause or resignation for Good Reason on or  following a Change of Control.  (i)  Subject to the execution, delivery and non-revocation of a  general release of claims against the Company as provided under Section 4(b) hereof, if, prior to  the expiration of the Employment Term, the Company terminates the Employee’s employment  without Cause or the Employee resigns his employment for Good Reason on or prior to the  second anniversary following the consummation of a Change of Control, the Employee shall  receive:  (1) the Severance Benefits (provided that the Severance Benefits shall be payable in a  single lump sum within five days following such termination of employment); (2) the Continued  Health Benefits; (3) full and immediate vesting, to the extent not already vested, of all  outstanding equity-based awards, including but not limited to stock options, restricted stock, and  restricted stock unit awards, granted by the Company to the Employee pursuant to any of the  Company’s long-term incentive plans; in addition, all outstanding performance share,  performance share unit, and other equivalent awards granted by the Company to the Employee  pursuant to any of the Company’s long-term incentive plans shall immediately vest at their  respective target performance levels to the extent not already vested; and (4) a pro-rata bonus  equal to (x) the greater of (i) the average amount of the annual bonus paid to the Employee for  each of the three fiscal years immediately prior to the fiscal year in which the “Separation from  Service” (as defined under Section 409A of the Code, “Section 409A”) occurs or (ii) the annual  bonus the Employee would have earned for the fiscal year in which the Separation from Service  occurs based on performance as determined through the date of the Separation from Service,  multiplied by (y) a fraction, the numerator of which is the number of days worked during the  fiscal year in which the Separation from Service occurs and the denominator of which is 365 (the  “Pro-Rata Annual Bonus”), payable in a single lump sum within five days; provided, however,  that if such Separation from Service occurs in the same fiscal year as the Change in Control and  the Employee is paid an annual bonus for such year in connection with the Change in Control,  the fraction shall be adjusted so that the numerator reflects the number of days worked during the  fiscal year following the Change in Control and the denominator reflects the number of days in  the fiscal year following the Change in Control. In addition, if the Company terminates the  Employee’s employment without Cause or the Employee resigns from his employment for Good  Reason on or following the consummation of a Change of Control prior to payment to the  Employee of the second installment of the Cash Sign-on Bonus amount described in Section  3(c), the Company shall pay the Employee that installment on the next regularly scheduled  Company payroll date following the execution and non-revocation of the general release of  claims.    (ii) A “Change of Control” shall be deemed to have occurred with respect to  the Company upon the occurrence of any of the following events:  

 

7  (A)  any “person” or “group” (as such terms are used in Sections 13(d) and  14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules  and regulations promulgated thereunder) is or becomes the “beneficial owner” (as defined in  Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 20% of the  total outstanding voting stock of the Company, excluding, however, (1) any acquisition directly  from the Company, other than an acquisition by virtue of the exercise of a conversion privilege  unless the security being so converted was itself acquired directly from the Company; (2) any  acquisition by the Company; or (3) any acquisition by any employee benefit plan (or related  trust) sponsored or maintained by the Company or any entity controlled by the Company;  (B)  the individuals who constitute the Board as of the Effective Date (the  “Incumbent Board”) cease to constitute a majority of the Board; provided, however, (1) that if  the nomination or election of any new director of the Company was approved by a majority of  the Incumbent Board, such new director shall be deemed a member of the Incumbent Board and  (2) that no individual shall be considered a member of the Incumbent Board if such individual  initially assumed office as a result of either an actual or threatened “Election Contest” (as  described in Rule 14a-11 promulgated under the Exchange Act) or as a result of a solicitation of  proxies or consents by or on behalf of any “person” or “group” identified in clause (A) above;  (C)  a reorganization of the Company or the Company consolidates with,  or merges with or into another person or entity or conveys, transfers, leases or otherwise disposes  of all or substantially all of its assets to any person or entity, or any person or entity consolidates  with or merges with or into the Company; provided, however, that any such transaction shall not  constitute a Change of Control if (1) the shareholders of the Company immediately before such  transaction own, directly or indirectly, immediately following such transaction in excess of 50%  of the combined voting power of the outstanding voting securities of the corporation or other  person or entity resulting from such transaction, (2) no “person” or “group” owns 20% or more  of the outstanding voting securities of the corporation or other person or entity resulting from  such transaction, and (3) a majority of the Incumbent Board remains; or  (D)  the approval by the shareholders of the Company of a complete  liquidation or dissolution of the Company.  (iii) Resignation for “Good Reason” shall mean termination of employment by  the Employee because of the occurrence of any of the following events:  (A)  a failure by the Company to pay compensation or benefits due and  payable to the Employee in accordance with the terms of this Employment Agreement;  (B)  a material adverse change in the assignment of duties or  responsibilities inconsistent with those duties and responsibilities as set forth in Section 1 of this  Employment Agreement;  (C)  a relocation of the Company’s principal office by more than 25 miles  from Palm Beach Gardens, Florida without the Employee’s consent;  (D)  a failure by the Company to obtain agreement by a successor to  assume this Employment Agreement in accordance with Section 10(b); or  

 

8  (E)  the Company’s material breach of this Agreement, after written notice  by the Employee to the Company and the Company’s failure to cure such breach within thirty  (30) days of receipt of such notice.  5. Limitations on Severance Payment and Other Payments or Benefits.  (a) Notwithstanding any provision of this Employment Agreement, if any  portion of the severance payments or any other payment under this Employment Agreement, or  under any other agreement with the Employee or plan or arrangement of the Company or its  affiliates (in the aggregate, “Total Payments”), would constitute an “Excess Parachute Payment”  (as defined in Section 5(c) hereof) and would, but for this Section 5, result in the imposition on  the Employee of an excise tax under Code Section 4999 (the “Excise Tax”), then the Total  Payments to be made to the Employee shall either be (i) delivered in full, or (ii) delivered in the  greatest amount such that no portion of such Total Payment would be subject to the Excise Tax,  whichever of the foregoing results in the receipt by the Employee of the greatest benefit on an  after-tax basis (taking into account the Employee’s actual marginal rate of federal, state and local  income taxation and the Excise Tax).  (b) Within thirty (30) days following the Employee’s termination of  employment or notice by one party to the other of its belief that there is a payment or benefit due  the Employee that will result in an Excess Parachute Payment, the Company, at the Company’s  expense, shall select a nationally recognized certified public accounting firm (which will not be  the Company’s independent auditors) (“Accounting Firm”) reasonably acceptable to the  Employee, to determine (i) the Base Amount (as defined in Section 5(c) hereof), (ii) the amount  and present value of the Total Payments, (iii) the amount and present value of any Excess  Parachute Payments determined without regard to any reduction of Total Payments pursuant to  Section 5(a), and (iv) the after-tax proceeds to the Employee, taking into account the tax imposed  under Code Section 4999 if (x) the Total Payments were reduced in accordance with  Section 5(a) or (y) the Total Payments were not so reduced.  If the Accounting Firm determines  that Section 5(a)(ii) above applies, then the payments hereunder or any other payment or benefit  determined by such Accounting Firm to be includable in Total Payments shall be reduced or  eliminated so that there will be no Excess Parachute Payment.  In such event, payments or  benefits included in the Total Payments shall be reduced or eliminated by applying the following  principles, in order:  (1) the payment or benefit with the later possible payment date shall be  reduced or eliminated before a payment or benefit with an earlier payment date; and (2) cash  payments shall be reduced prior to non-cash benefits, provided that if the foregoing order of  reduction or elimination would violate Section 409A, then the reduction shall be made pro-rata  among the payments or benefits included in the Total Payments (on the basis of the relative  present value of the “Parachute Payments”, as defined in Section 5(c) hereof).  (c) For purposes of this Employment Agreement:  (i) the terms “Excess  Parachute Payment” and “Parachute Payments” shall have the meanings assigned to them in  Code Section 280G and such Parachute Payments shall be valued as provided therein; (ii) present  value shall be calculated in accordance with Code Section 280G(d)(4); (iii) the term “Base  Amount” means an amount equal to the Employee’s “annualized includible compensation for the  base period” as defined in Code Section 280G(d)(1); (iv) for purposes of the determination by  the Accounting Firm, the value of any noncash benefits or any deferred payment or benefit shall  

 

9  be determined in accordance with the principles of Code Sections 280G(d)(3) and (4) and (v) the  Employee shall be deemed to pay federal income tax and employment taxes at his actual  marginal rate of federal income and employment taxation, and state and local income taxes at his  actual marginal rate of taxation in the state or locality of the Employee’s domicile (determined in  both cases in the calendar year in which the termination of employment or notice described in  Section 5(b) above is given, whichever is earlier), net of the maximum reduction in federal  income taxes that may be obtained from the deduction of such state and local taxes.  The  covenants set forth in Sections 6, 7, and 8 of this Employment Agreement have substantial value  to the Company and a portion of any Total Payments made to the Employee are in consideration  of such covenants.  For purposes of calculating the Excess Parachute Payment and the Parachute  Payments, the parties intend that an amount equal to not less than the Employee’s highest annual  base salary during the twelve (12) month period immediately prior to his termination of  employment shall be in consideration of the covenants in Sections 6, 7, and 8 below.  The  Accounting Firm shall consider all relevant factors in appraising the fair value of such covenants  and in determining the amount of the Total Payments that shall not be considered to be a  Parachute Payment or Excess Parachute Payment.  The determination of the Accounting Firm  shall be addressed to the Company and the Employee and such determination shall be binding  upon the Company and the Employee.  (d) This Section 5 shall be amended to comply with any amendment or  successor provision to Sections 280G or 4999 of the Code.  6. Confidentiality.  (a) Confidential Information.  (i) The Employee agrees that during his employment with the Company for  any reason and for a period of five years following his Separation from Service, he will not at  any time, except with the prior written consent of the Company or any of its subsidiaries or  affiliates (collectively, the “Company Group”) or as required by law, directly or indirectly, reveal  to any person, entity or other organization (other than any member of the Company Group or its  respective employees, officers, directors, shareholders or agents) or use for the Employee’s own  benefit any information deemed to be confidential by any member of the Company Group  (“Confidential Information”) relating to the assets, liabilities, employees, goodwill, business or  affairs of any member of the Company Group, including, without limitation, any information  concerning customers, business plans, marketing data, or other confidential information known  to the Employee by reason of the Employee’s employment by, shareholdings in or other  association with any member of the Company Group; provided that such Confidential  Information does not include any information which (x) is available to the general public or is  generally available within the relevant business or industry other than as a result of the  Employee’s action or (y) is or becomes available to the Employee after his Separation from  Service on a non-confidential basis from a third-party source provided that such third-party  source is not bound by a confidentiality agreement or any other obligation of confidentiality.   Confidential Information may be in any medium or form, including, without limitation, physical  documents, computer files or disks, videotapes, audiotapes, and oral communications.  

 

10  (ii) In the event that the Employee becomes legally compelled to disclose any  Confidential Information, the Employee shall provide the Company with prompt written notice  so that the Company may seek a protective order or other appropriate remedy.  In the event that  such protective order or other remedy is not obtained, the Employee shall furnish only that  portion of such Confidential Information or take only such action as is legally required by  binding order and shall exercise his reasonable efforts to obtain reliable assurance that  confidential treatment shall be accorded any such Confidential Information.  The Company shall  promptly pay (upon receipt of invoices and any other documentation as may be requested by the  Company) all reasonable expenses and fees incurred by the Employee, including attorneys’ fees,  in connection with his compliance with the immediately preceding sentence.  (b) Exclusive Property.  The Employee confirms that all Confidential  Information is and shall remain the exclusive property of the Company Group.  All business  records, papers and documents kept or made by the Employee relating to the business of the  Company Group shall be and remain the property of the Company Group.  Upon the request and  at the expense of the Company Group, the Employee shall promptly make all disclosures,  execute all instruments and papers and perform all acts reasonably necessary to vest and confirm  in the Company Group, fully and completely, all rights created or contemplated by this  Section 6.  (c) Protected Conduct. Nothing contained in this Employment Agreement or  any other agreement between the Employee and the Company, shall limit the Employee’s ability  to file a charge or complaint with the Equal Employment Opportunity Commission, the National  Labor Relations Board, the Occupational Safety and Health Administration, the Securities and  Exchange Commission, or any other federal, state, or local governmental agency or commission  (each, a “Government Agency”).  Neither this Employment Agreement nor any other agreement  between the Employee and the Company, shall limit the Employee’s ability to communicate with  any Government Agency or otherwise participate in any investigation or proceeding that may be  conducted by any Government Agency, including providing documents or other information to a  Government Agency that is Confidential Information or a trade secret, without advance approval  from or notice to the Company; provided, however, that any disclosure must be limited to only  the information reasonably necessary to make reports and respond to any Government Agency.   In addition, nothing in this Employment Agreement or any other agreement between the  Employee and the Company shall be construed to prohibit the Employee from using Confidential  Information to the extent necessary to exercise any legally protected whistleblower rights  (including pursuant to Rule 21F under the Securities Exchange Act of 1934, as amended) or to  limit or eliminate the Employee’s right to receive an award from a Government Agency for  information provided to a Government Agency, and the Company may not, and will not, retaliate  against the Employee if the Employee chooses in good faith to notify, report to, or file a charge  or complaint with, any Government Agency or otherwise participate in any investigation or  proceeding.    (d) DTSA. The Employee acknowledges that, pursuant to the Defend Trade  Secrets Act of 2016, an individual may not be held liable under any criminal or civil federal or  state trade secret law for disclosure of a trade secret (i) made in confidence to a government  official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or  investigating a suspected violation of law, (ii) in a complaint or other document filed in a lawsuit  

 

11  or other proceeding, if such filing is made under seal or (iii) made to his or her attorney or used  in a court proceeding in an anti-retaliation lawsuit based on the reporting of a suspected violation  of law, so long as any document containing the trade secret is filed under seal and the individual  does not disclose the trade secret except pursuant to court order.  7. Noncompetition.  The Employee agrees that during his employment with  the Company and for a period commencing on the Employee’s Separation from Service and  ending on the first anniversary of the Employee’s Separation from Service (the “Restricted  Period”), the Employee shall not, without the prior written consent of the Company, directly or  indirectly, and whether as principal or investor or as an employee, officer, director, manager,  partner, consultant, agent or otherwise, alone or in association with any other person, firm,  corporation or other business organization, carry on a business competitive with the Company in  any geographic area in which the Company Group has engaged in business, or is reasonably  expected to engage in business during such Restricted Period (including, without limitation, any  area in which any customer of the Company Group may be located); provided, however, that  nothing herein shall limit the Employee’s right to own not more than 1% of any of the debt or  equity securities of any business organization.  8. Non-Solicitation.  The Employee agrees that, during his employment and  for the Restricted Period, the Employee shall not, directly or indirectly, other than in connection  with the proper performance of his duties in his capacity as an executive of the Company,  (a) interfere with or attempt to interfere with any relationship between the Company Group and  any of its employees and, if they devote a substantial portion of their services to the Company  Group, consultants and independent contractors, (b) employ, hire or otherwise engage, or attempt  to employ, hire or otherwise engage, any current or former employee and, if they devote a  substantial portion of their services to the Company Group, consultant or independent contractor,  of the Company Group in a business competitive with the Company Group, (c) solicit the  business or accounts of the Company Group or (d) divert or attempt to direct from the  Company Group any business or interfere with any relationship between the Company Group  and any of its clients, suppliers, customers or other business relations.  As used herein, the term  “indirectly” shall include, without limitation, the Employee’s permitting the use of the  Employee’s name by any competitor of any member of the Company Group to induce or  interfere with any employee or business relationship of any member of the Company Group.  9. Reservation of Invention Rights.  The Employee acknowledges  notification that this Employment Agreement does not require the Employee to assign or offer to  assign to the Company any of the Employee’s rights in any invention developed by the  Employee entirely on the Employee’s own time without using the Company’s equipment,  supplies, facilities, or trade secret information, except for those inventions that either (i) relate, at  the time of conception or reduction to practice of the invention, to the Company’s business, or  the Company’s actual or demonstrably anticipated research or development; or (ii) result from  any work performed by Employee for the Company.  To the extent the Employee developed  inventions prior to the Employee’s employment with the Company, the Employee has listed any  such inventions on the attached Exhibit B, and expressly reserves the Employee’s rights in those  such inventions.    

 

12  10. Assignment and Succession.  (a) The services to be rendered and obligations to be performed by the  Employee under this Employment Agreement shall not be assignable or transferable.  (b) This Employment Agreement shall inure to the benefit of and be binding  upon and enforceable by the Company and the Employee and their respective successors,  permitted assigns, heirs, legal representatives, executors, and administrators.  If the  Company shall be merged into or consolidated with another entity, the provisions of this  Employment Agreement shall be binding upon and inure to the benefit of the entity surviving  such merger or resulting from such consolidation.  The Company will require any successor  (whether direct or indirect, by purchase, merger, consolidation or otherwise) to expressly assume  and agree to perform this Employment Agreement in the same manner that the Company would  be required to perform it if no such succession had taken place.  The provisions of this  Section 10(b) shall continue to apply to each subsequent Company of the Employee hereunder in  the event of any subsequent merger, consolidation, or transfer of assets of such subsequent  Company.  11. Notices.  All notices, requests, claims, demands and other communications hereunder shall  be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by  delivery in person or by registered or certified mail (postage prepaid, return receipt requested) to  the respective parties at the following addresses (or at such other address for a party as shall be  specified in a notice given in accordance with this Section 11):  if to the Company:  Dycom Industries, Inc.  11780 US Highway 1, Suite 600  Palm Beach Gardens, Florida 33408  Attention:  President    if to the Employee:  To Employee’s home address most recently communicated to the Company.  12. Waiver of Breach.  (a) The waiver by the Company or the Employee of a breach of any provision  of this Employment Agreement shall not operate or be construed as a waiver by such party of  any subsequent breach.  (b) The parties hereto recognize that the laws and public policies of various  jurisdictions may differ as to the validity and enforceability of covenants similar to those set  forth herein.  It is the intention of the parties that the provisions hereof be enforced to the fullest  extent permissible under the laws and policies of each jurisdiction in which enforcement may be  

 

13  sought, and that the unenforceability (or the modification to conform to such laws or policies) of  any provisions hereof shall not render unenforceable, or impair, the remainder of the provisions  hereof.  Accordingly, if, at the time of enforcement of any provision hereof, an arbitrator or court  of competent jurisdiction holds that the restrictions stated herein are unreasonable under  circumstances then existing, the parties hereto agree that the maximum period, scope or  geographic area reasonable under such circumstances will be substituted for the stated period,  scope or geographical area and that such arbitrator or court shall be allowed to revise the  restrictions contained herein to cover the maximum period, scope and geographical area  permitted by law.  13. Amendment.  This Employment Agreement may be amended only by a  written instrument signed by the parties hereto.  14. Full Settlement.  The Company’s obligation to pay the Employee the  amounts required by this Employment Agreement shall be absolute and unconditional and shall  not be affected by any circumstances, including, without limitation, any setoff, counterclaim,  recoupment, defense or other right which the Company may have against the Employee or  anyone else.  All payments and benefits to which the Employee is entitled under this  Employment Agreement shall be made and provided without offset, deduction, or mitigation on  account of income that the Employee may receive from employment from the Company or  otherwise.  15. Certain Remedies.  (a) Injunctive Relief.  Without intending to limit the remedies available to the  Company Group, the Employee agrees that a breach of any of the covenants contained in  Sections 6 through 9 of this Employment Agreement may result in material and irreparable  injury to the Company Group for which there is no adequate remedy at law, that it will not be  possible to measure damages for such injuries precisely and that, in the event of such a breach or  threat thereof, any member of the Company Group shall be entitled to seek a temporary  restraining order or a preliminary or permanent injunction, or both, without bond or other  security, restraining the Employee from engaging in activities prohibited by the covenants  contained in Sections 6 through 9 of this Employment Agreement or such other relief as may be  required specifically to enforce any of the covenants contained in this Employment Agreement.   Such injunctive relief in any court shall be available to the Company Group in lieu of, or prior to  or pending determination in, any arbitration proceeding.  (b) Extension of Restriction Period.  In addition to the remedies the  Company may seek and obtain pursuant to this Section 15(b) the Restricted Period shall be  extended by any and all periods during which the Employee shall be found by a court or  arbitrator possessing personal jurisdiction over him to have been in violation of the covenants  contained in Sections 7 and 8 of this Employment Agreement.  16. Other Severance.  In consideration for the payments and benefits to be  made to the Employee under this Employment Agreement, the Employee agrees to waive any  and all rights to any payments or benefits under any other severance plan, program or  arrangement of the Company.  

 

14  17. Governing Law; Jurisdiction and Service of Process.  This Employment  Agreement shall be governed by the laws of the State of Florida applicable to contracts executed  in and to be performed in that State.  18. Partial Invalidity.  The invalidity or unenforceability of any provision  hereof shall in no way affect the validity or enforceability of any other provision.  19. Withholding.  The payment of any amount pursuant to this Employment  Agreement shall be subject to applicable withholding and payroll taxes, and such other  deductions as may be required under the Company’s employee benefit plans, if any.  20. Counterparts.  This Employment Agreement may be executed in two or  more counterparts, each of which shall be deemed an original but all of which together shall  constitute one and the same instruments.  21. Entire Agreement.  All prior negotiations and agreements between the  parties hereto with respect to the matters contained herein are superseded by this Employment  Agreement, and there are no representations, warranties, understandings or agreements other  than those expressly set forth herein. The Company and the Employee acknowledge that the  parties will enter into other agreements in connection with this Employment Agreement,  including, without limitation, an indemnification agreement, a confidentiality and inventions  agreement, and an equity award agreement.   22. Headings.  The headings of sections herein are included solely for  convenience of reference and shall not control the meaning or interpretation of any of the  provisions of this Employment Agreement.  23. Arbitration.  Subject to Section 15(a) hereof, any dispute or controversy  arising under or in connection with this Employment Agreement or otherwise in connection with  the Employee’s employment by the Company that cannot be mutually resolved by the parties to  this Employment Agreement and their respective advisors and representatives shall be settled  exclusively by arbitration in Palm Beach County, Florida in accordance with the commercial  rules of the American Arbitration Association before one arbitrator of exemplary qualifications  and stature, who shall be selected jointly by an individual to be designated by the Company and  an individual to be selected by the Employee, or if such two individuals cannot agree on the  selection of the arbitrator, who shall be selected by the American Arbitration Association, and  judgment upon the award rendered may be entered in any court having jurisdiction thereon.  24. Survival of Certain Provisions.  The rights and obligations set forth in this  Employment Agreement that, by their terms, extend beyond the Term shall survive the Term.  25. Section 409A.  (a) General.  This Employment Agreement is intended to meet the  requirements of Section 409A and shall be interpreted and construed consistent with that intent.  (b) Deferred Compensation.  Notwithstanding any other provision of this  Employment Agreement, to the extent that the right to any payment (including the provision of  

 

15  benefits) hereunder provides for the “deferral of compensation” within the meaning of  Section 409A(d)(1), the payment shall be paid (or provided) in accordance with the following:  (i) Notwithstanding anything in this Employment Agreement to the contrary,  if at the time of the Employee’s termination of employment, he is a “specified employee” within  the meaning of Section 409(A)(a)(2)(B)(i), as determined under the Company’s established  methodology for determining “specified employees”, then no payments or amounts under this  Employment Agreement shall be made or commence during the period beginning on the date of  the Employee’s termination of employment and ending on the date that is six months following  the Employee’s termination of employment or, if earlier, on the date of the Employee’s death,  unless such payments or amounts are payable earlier under an applicable exemption to the six- month delay rule of Section 409A.  The amount of any payment that would otherwise be paid to  the Employee during this period and was not paid shall instead be paid to Employee on the  fifteenth day of the first calendar month following the end of the period (“Delayed Payment  Date”).  If payment of an amount is delayed as a result of this Section 25(b)(i), such amount shall  be increased with interest from the date on which such amount would otherwise have been paid  to the Employee but for this Section 25(b)(i) to the day prior to the Delayed Payment Date.  The  rate of interest shall be compounded monthly, at the prime rate as published by Citibank NA for  the month in which occurs the date of the Employee’s Separation from Service.  Such interest  shall be paid on the Delayed Payment Date.  (ii) If any amount owed to the Employee under this Employment Agreement  is considered for purposes of Section 409A to be owed to the Employee by virtue of his  termination of employment, such amount shall be paid if and only if such termination constitutes  a Separation from Service with the Company, determined using the default provisions set forth in  Treasury Regulation §1.409A-1(h) or any successor regulation thereto.  (iii) Notwithstanding anything in this Employment Agreement to the contrary,  payments with respect to reimbursements of expenses shall be made in accordance with  Company policy and in no event later than the last day of the calendar year following the  calendar year in which the relevant expense is incurred.  The amount of expenses eligible for  reimbursement during a calendar year may not affect the expenses eligible for reimbursement in  any other calendar year.  (iv) For purposes of Section 409A, the Employee’s right to receive any  installment payments pursuant to this Employment Agreement shall be treated as a right to  receive a series of separate and distinct payments.  26. Source of Payments.  All payments provided under this Employment  Agreement, other than payments made pursuant to a plan which provides otherwise, shall be paid  in cash from the general funds of the Company, and no special or separate fund shall be  established, and no other segregation of assets shall be made, to assure payment.  The Employee  shall have no right, title or interest whatsoever in or to any investments which the Company may  make to aid the Company in meeting its obligations hereunder.  To the extent that any person  acquires a right to receive payments from the Company hereunder, such right shall be no greater  than the right of an unsecured creditor of the Company.  

 

16  IN WITNESS WHEREOF, the parties have entered into this Employment  Agreement as of the date set forth above.  EMPLOYEE  Name:  Daniel S. Peyovich  DYCOM INDUSTRIES, INC.  a Florida corporation  By:   Name:  Steven E. Nielsen  Title:    President and CEO  

 

EXHIBIT A  FORM OF WAIVER AND MUTUAL RELEASE  This Waiver and Mutual Release, dated as of _______________, (this “Release”)  by and between Daniel S. Peyovich (the “Executive”) and Dycom Industries, Inc., a Florida  corporation (the “Company”).  WHEREAS, the Executive and the Company are parties to an Employment  Agreement, dated January 6, 2021 (the “Employment Agreement”), which provided for the  Executive’s employment on the terms and conditions specified therein; and   WHEREAS, pursuant to Sections 4(b) and 4(f) of the Employment Agreement,  the Executive has agreed to execute and deliver a release and waiver of claims of the type and  nature set forth herein as a condition to his entitlement to certain payments and benefits upon his  termination of employment with the Company effective as of _____________ (the “Effective  Date”).    NOW, THEREFORE, in consideration of the premises and mutual promises  herein contained and for other good and valuable consideration received or to be received in  accordance with the terms of the Employment Agreement, the Executive and the Company agree  as follows:  1. Return of Property.  On or prior to the Effective Date, the Executive  represents and warrants that he will return all property made available to him in connection with  his service to the Company, including, without limitation, credit cards, any and all records,  manuals, reports, papers and documents kept or made by the Executive in connection with his  employment as an officer or employee of the Company and its subsidiaries and affiliates, all  computer hardware or software, cellular phones, files, memoranda, correspondence, vendor and  customer lists, financial data, keys and security access cards.    2. Executive Release.  (a) In consideration of the payments and benefits provided to the Executive  under the Employment Agreement and after consultation with counsel, the Executive and each of  the Executive’s respective heirs, executors, administrators, representatives, agents, successors  and assigns (collectively, the “Executive Parties”) hereby irrevocably and unconditionally  release and forever discharge the Company and its subsidiaries and affiliates and each of their  respective officers, employees, directors, shareholders and agents (“Company Parties”) from any  and all claims, actions, causes of action, rights, judgments, obligations, damages, demands,  accountings or liabilities of whatever kind or character (collectively, “Claims”), including,  without limitation, any Claims under any federal, state, local or foreign law, that the Executive  Parties may have, or in the future may possess, arising out of (i) the Executive’s employment  relationship with and service as an employee, officer or director of the Company, and the  termination of such relationship or service, and (ii) any event, condition, circumstance or  obligation that occurred, existed or arose on or prior to the date hereof; provided, however, that  the Executive does not release, discharge or waive (i) any rights to payments and benefits  

 

provided under the Employment Agreement that are contingent upon the execution by the  Executive of this Release, (ii) any right the Executive may have to enforce this Release or the  Employment Agreement, (iii) the Executive’s eligibility for indemnification in accordance with  the Company’s certificate of incorporation, bylaws or other corporate governance document, or  any applicable insurance policy, with respect to any liability he incurred or might incur as an  employee, officer or director of the Company, or (iv) any claims for accrued, vested benefits  under any long-term incentive, employee benefit or retirement plan of the Company subject to  the terms and conditions of such plan and applicable law including, without limitation, any such  claims under the Employee Retirement Income Security Act of 1974.  (b) Whistleblower Rights.  The Executive understands and acknowledges that  the Executive has the right under U.S. federal law to certain protections for cooperating with or  reporting legal violations to the Securities and Exchange Commission and/or its Office of the  Whistleblower, as well as certain other governmental entities.  No provisions in this Release are  intended to prohibit the Executive from disclosing this Release to, or from cooperating with or  reporting violations to, the SEC or any other such governmental entity, and the Executive may  do so without disclosure to the Company.  The Company may not retaliate against Executive for  any of these activities.  Further, nothing in this Release precludes the Executive from filing a  charge of discrimination with the Equal Employment Opportunity Commission or a like charge  or complaint with a state or local fair employment practice agency.  The Company may not  retaliate against Executive for any of these activities, and nothing in this Release would require  Executive to waive any monetary award or other payment that Executive might become entitled  to from any such governmental entity.  (c) DTSA.  The Executive acknowledges that, pursuant to the Defend Trade  Secrets Act of 2016, an individual may not be held liable under any criminal or civil federal or  state trade secret law for disclosure of a trade secret (i) made in confidence to a government  official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or  investigating a suspected violation of law, (ii) in a complaint or other document filed in a lawsuit  or other proceeding, if such filing is made under seal or (iii) made to his or her attorney or used  in a court proceeding in an anti-retaliation lawsuit based on the reporting of a suspected violation  of law, so long as any document containing the trade secret is filed under seal and the individual  does not disclose the trade secret except pursuant to court order.  (d) Executive’s Specific Release of ADEA Claims.  In further consideration  of the payments and benefits provided to the Executive under the Employment Agreement, the  Executive Parties hereby unconditionally release and forever discharge the Company Parties  from any and all Claims that the Executive Parties may have as of the date the Executive signs  this Release arising under the Federal Age Discrimination in Employment Act of 1967, as  amended, and the applicable rules and regulations promulgated thereunder (“ADEA”).  By  signing this Release, the Executive hereby acknowledges and confirms the following:  (i) the  Executive was advised by the Company in connection with his termination to consult with an  attorney of his choice prior to signing this Release and to have such attorney explain to the  Executive the terms of this Release, including, without limitation, the terms relating to the  Executive’s release of claims arising under ADEA, and the Executive has in fact consulted with  an attorney; (ii) the Executive was given a period of not fewer than 21 days to consider the terms  of this Release and to consult with an attorney of his choosing with respect thereto; and (iii) the  

 

Executive knowingly and voluntarily accepts the terms of this Release.  The Executive also  understands that he has seven (7) days following the date on which he signs this Release  (the “Revocation Period”) within which to revoke the release contained in this paragraph, by  providing the Company a written notice of his revocation of the release and waiver contained in  this paragraph.  No such revocation by the Executive shall be effective unless it is in writing and  signed by the Executive and received by the Company prior to the expiration of the Revocation  Period.  3. Company Release.  The Company for itself and on behalf of the  Company Parties hereby irrevocably and unconditionally release and forever discharge the  Executive Parties from any and all Claims , including, without limitation, any Claims under any  federal, state, local or foreign law, that the Company Parties may have, or in the future may  possess, arising out of (i) the Executive’s employment relationship with and service as an  employee, officer or director of the Company, and the termination of such relationship or  service, and (ii) any event, condition, circumstance or obligation that occurred, existed or arose  on or prior to the date hereof, excepting any Claim which would constitute or result from  conduct by the Executive that would constitute a crime under applicable state or federal law;  provided, however, notwithstanding the generality of the foregoing, nothing herein shall be  deemed to release the Executive Parties from (A) any rights or claims of the Company arising  out of or attributable to (i) the Executive’s actions or omissions involving or arising from fraud,  deceit, theft or intentional or grossly negligent violations of law, rule or statute while employed  by the Company and (ii) the Executive’s actions or omissions taken or not taken in bad faith with  respect to the Company; and (B) the Executive or any other Executive Party’s obligations under  this Release or the Employment Agreement.  4. No Assignment.  The parties represent and warrant that they have not  assigned any of the Claims being released under this Release.  5. Proceedings.  The parties represent and warrant that they have not filed,  and they agree not to initiate or cause to be initiated on their behalf, any complaint, charge, claim  or proceeding against the other party before any local, state or federal agency, court or other  body relating to the Executive’s employment or the termination thereof, other than with respect  to any claim that is not released hereunder including with respect to the obligations of the  Company to the Executive and the Executive to the Company under the Employment Agreement  (each, individually, a “Proceeding”), and each party agrees not to participate voluntarily in any  Proceeding.  The parties waive any right they may have to benefit in any manner from any relief  (whether monetary or otherwise) arising out of any Proceeding.  6. Remedies.  (a) Each of the parties understand that by entering into this Release such party  will be limiting the availability of certain remedies that such party may have against the other  party and limiting also such party’s ability to pursue certain claims against the other party.  (b) Each of the parties acknowledge and agree that the remedy at law  available to such party for breach of any of the obligations under this Release would be  inadequate and that damages flowing from such a breach may not readily be susceptible to being  

 

measured in monetary terms.  Accordingly, each of the parties acknowledge, consent and agree  that, in addition to any other rights or remedies that such party may have at law or in equity, such  party shall be entitled to seek a temporary restraining order or a preliminary or permanent  injunction, or both, restraining the other party from breaching its obligations under this Release.   Such injunctive relief in any court shall be available to the relevant party, in lieu of, or prior to or  pending determination in, any arbitration proceeding.  7. Cooperation.  From and after the Effective Date, the Executive shall  cooperate in all reasonable respects with the Company and their respective directors, officers,  attorneys and experts in connection with the conduct of any action, proceeding, investigation or  litigation involving the Company, including any such action, proceeding, investigation or  litigation in which the Executive is called to testify.  8. Unfavorable Comments.  (a) Public Comments by the Executive.  The Executive agrees to refrain from  making, directly or indirectly, now or at any time in the future, whether in writing, orally or  electronically:  (i) any derogatory comment concerning the Company or any of their current or  former directors, officers, employees or shareholders, or (ii) any other comment that could  reasonably be expected to be detrimental to the business or financial prospects or reputation of  the Company.  (b) Public Comments by the Company.  The Company agrees to use  reasonable efforts to cause its directors and employees to refrain from making, directly or  indirectly, now or at any time in the future, whether in writing, orally or electronically:  (i) any  derogatory comment concerning the Executive, or (ii) any other comment that could reasonably  be expected to be detrimental to the Executive’s business or financial prospects or reputation.  9. Severability Clause.  In the event any provision or part of this Release is  found to be invalid or unenforceable, only that particular provision or part so found, and not the  entire Release, will be inoperative.  10. Nonadmission.  Nothing contained in this Release will be deemed or  construed as an admission of wrongdoing or liability on the part of the Company or the  Executive.  11. Governing Law.  All matters affecting this Release, including the validity  thereof, are to be governed by, and interpreted and construed in accordance with, the laws of the  Florida applicable to contracts executed in and to be performed in that State.  12. Arbitration.  Any dispute or controversy arising under or in connection  with this Release shall be resolved in accordance with Section 23 of the Employment  Agreement.  13. Notices.  All notices or communications hereunder shall be made in  accordance with Section 11 of the Employment Agreement:  

 

THE EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS  RELEASE AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES ITS  CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS  RELEASE AND THE RELEASE AND RELEASES PROVIDED FOR HEREIN  VOLUNTARILY AND OF HIS OWN FREE WILL.  [remainder of page intentionally left blank]  

 

IN WITNESS WHEREOF, the parties have executed this Release as of the date  first set forth above.  DYCOM INDUSTRIES, INC.  By:    Name:    Title:      EXECUTIVE  Daniel S. Peyovich  

 

EXHIBIT B  Prior Inventions Disclosure. The following is a complete list of all inventions referenced in  Section 9 of the Employment Agreement.   None.   See immediately below:

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