Document:

Severance Agreement

 

EXHIBIT 10.6

April 5, 2006

SENT VIA HAND DELIVERY 

PERSONAL & CONFIDENTIAL

Mr. Gregory Floerke

7000 Southwest 112th Terrace

Pinecrest, Florida 33156

Dear Greg:

This letter agreement (“Agreement”) sets forth the terms of your separation from MasTec, Inc.
(“Company”). You and the Company agree that this Agreement represents the full and complete
agreement between you and the Company and replaces any previously written or verbal agreement.

	1.	 	Termination: Your termination is effective as of March 31, 2006 (such date being the
“Termination Date”). In consideration of the releases and other undertakings contained
herein, the Company shall make the payment set forth in Section 2 below.
	 
	2.	 	Payments: The Company shall pay you your regular salary, less all applicable
withholding taxes, through March 31, 2006. Within ten (10) business days thereafter, the
Company shall pay you the gross sum of $95,000.00, less all applicable withholding taxes
(along with the accelerated stock options described in Section 3, the “Severance Benefits”).
Without limiting the rights of the Company under this Agreement or otherwise, you agree that
any breach of any provision of this Agreement will entitle the Company to recover the payment
specified herein from you, as well as any attorneys’ fees and costs associated with recovering
that payment. You acknowledge that the Severance Benefits under this Agreement are
compensation and will be included in a W-2 earnings statement, and are subject to applicable
payroll withholding taxes. You further acknowledge that all life and disability coverage and
participation in the 401(k) Retirement Plan will end on the Termination Date. You further
agree that the Severance Benefits constitute sufficient consideration for this Agreement. You
acknowledge and agree that no consideration other than the Severance Benefits as provided for
by this Agreement have been or will be paid or furnished by the Company. You acknowledge that
the Severance Benefits include compensation for any right the Employee may have or have had to
(a) holiday, vacation, sick or personal days or pay in lieu thereof, and (b) bonus, profit
sharing or other incentive compensation.

 

 

	3.	 	Stock Options: Subject to the approval of the Compensation Committee of the Board of
Directors of the Company (the “Compensation Committee”), the portion of the stock options
granted to you in September 2004 (the “September 2004 Options”) which were to vest on
September 16, 2006 and September 16, 2007 shall vest as of the Termination Date. Subject to
the approval of the Compensation Committee, the September 2004 Options and the other options
you currently own will remain exercisable until January 22, 2014 pursuant to the MasTec, Inc.
2003 Employee Stock Incentive Plan (the “Plan”). The Company shall submit such requests to
the Compensation Committee for approval at the next meeting. Not withstanding the above
provisions, your eligibility (i) to purchase stock under the Company’s Non-Qualified Employee
Stock Purchase Plan, (ii) to participate in the Company’s incentive compensation or other
compensation plans and (iii) to participate in any other benefit plan of the Company or its
subsidiaries or affiliates is terminated as of the Termination Date. This Agreement will be
null and void in the event that the Compensation Committee shall not approve the accelerated
vesting of the September 2004 Options and extension of the exercise period for the remaining
options you own.
	 
	4.	 	Health Insurance. The Company will continue to pay health insurance benefits for you
through March 31, 2006. Such insurance coverage will be offered pursuant to the Company’s
health insurance plan.
	 
	5.	 	COBRA: Thereafter, you may be entitled to continue your medical benefits under a
federal law known as COBRA. Enclosed please find information on COBRA.
	 
	6.	 	Acknowledgment: You understand and agree that, absent this Agreement, you would not
otherwise be entitled to the benefits specified herein. Further, by signing this Agreement,
you agree that you shall only receive the benefits described in this Agreement and that you
shall not receive any benefits that are not specifically listed in this Agreement.
	 
	7.	 	General Release of All Claims: In exchange for the Company’s payments herein, you
release the Company and all of its divisions, parents, subsidiaries or affiliates, or
any of the officers, directors, employees, agents, shareholders, members or managers of any of
the foregoing (all of the foregoing entities and individuals being referred to herein as
“Affiliates”) from any and all claims you may have, known or unknown, related to your
employment or your separation from employment, from the beginning of time through the
date that this Agreement becomes effective.
	 
	 	 	You understand and agree that you are releasing the Company and its Affiliates from any
and all claims for breach of contract, personal injury, wages, benefits, defamation, slander and
wrongful discharge, and any and all claims based on any oral or written agreements or promises,
including, but not limited to, any state statutory or common law claims, from the beginning of
time through the date that this Agreement becomes effective, which is eight (8) days after you
sign it.
	 
	 	 	You understand and agree that you are also releasing the Company and all of its
Affiliates from any and all claims for discrimination or harassment in employment on the basis
of race,

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	 	 	color, creed, religion, age, national origin, alienage or citizenship, gender, sexual
orientation, disability, marital status and veteran’s status, including, but not limited to, any
and all claims you may have arising under Title VII of the Civil Rights Act of 1964, as amended,
the Americans with Disabilities Act, the Age Discrimination in Employment Act of 1967, as
amended, and any other federal, state or local laws or regulations that permit a release by
private agreement, from the beginning of time through the date that this Agreement becomes
effective, which is eight (8) days after you sign it.

	8.	 	No Claims Filed: As a condition of the Company entering into this Agreement, you
represent that you have not filed any claim against the Company, or any of its Affiliates,
relating to your employment or separation from employment or otherwise.
	 
	9.	 	Confidential Information: You agree that you shall not, directly or indirectly,
disclose any confidential information you learned or acquired while employed by the Company
including, but not limited to, disclosure to any person or any state or federal agency having
jurisdiction over the Company. Such confidential information shall include, but not be
limited to, financial information and data, personnel and compensation information, marketing
data or information, accounting practices, trade practices, trade secrets and all other
business information whatsoever. You also promise that you will not use any such confidential
information to damage the Company or its Affiliates, suppliers or customers. You further
agree to promptly return to the Company any property of the Company which you may have, no
matter where located, and not to keep any copies or portions thereof. This provision shall
not apply to confidential information that is in the public domain. If you are legally
requested or required to disclose any confidential information you shall promptly notify the
Company of such request or requirement prior to disclosure so that the Company may seek an
appropriate protective order and/or waive compliance with the terms of this Agreement. If,
however, in the opinion of your counsel you are nonetheless, in the absence of such order or
waiver, compelled to disclose such confidential information or otherwise stand liable for
contempt or suffer possible censure or other penalty or liability, then you may disclose such
confidential information without liability to the Company hereunder.
	 
	10.	 	Confidentiality and Nondisclosure: You agree that the terms of this Agreement are
confidential. You also agree not to tell anyone about this Agreement and not to disclose any
information contained in this Agreement to anyone, other than your lawyer, financial advisor
and immediate family members, or except as required by law or legal process. If you do tell
your lawyer, financial advisor, immediate family members or any legal forum about this
Agreement or its contents, you must immediately tell them that they must keep it confidential
as well.
	 
	11.	 	Intentionally Ommitted:
	 
	12.	 	Co-operation: You agree that from the Termination Date until December 31, 2006 and
for a period not to exceed 20 hours per month:

	 	a.	 	You will cooperate with the Company in any litigation matters in which you are a
witness or a potential witness for the Company, including, but not limited to, making
yourself available at reasonable times for reviewing documents, meeting with Company
representatives, being interviewed by counsel for the Company, preparing
for testimony, and giving testimony in any legal proceeding that involves the Company;
and

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	 	b.	 	You shall make yourself available to perform such consulting or advisory services as
may be reasonably necessary or appropriate in order to effect an orderly transition of
your responsibilities to one or more other employees of the Company, and to ensure that
the Company is aware of all matters that were handled by you during your employment by the
Company, and as may be requested the Company in connection with general matters relating
to the Company’s department of transportation business, or other services; and
	 
	 	c.	 	You shall receive reasonable advance notice from the Company of the time requested
for such services, which time shall not unreasonably interfere with your other activities.
You may perform the services by telephone and may be required to travel in connection
with the performance of advisory or consulting services.

	13.	 	No Negative Statements: The parties agree not to make any negative or disparaging
statements about, or otherwise take any action whatsoever which could damage the other party,
or any of their services, reputations, officers, employees or financial status, or could which
damage any of them in any of their business relationships.
	 
	14.	 	Non-Competition and Non-Solicitation.

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

	 	i.	 	directly or indirectly own, manage, operate, control, be employed
by, act as agent, consultant or advisor for, or participate in the ownership,
management, operation or control of, or be connected in any manner through the
investment of capital, lending of money or property, rendering of services or
otherwise, with, any business of the type and character engaged in and
competitive with the Business. For these purposes, ownership of securities of
one percent (1%) or less of any class of securities of a public company will not
be considered to be competition with the Business;
	 
	 	ii.	 	solicit, persuade or attempt to solicit or persuade or cause or
authorize, directly or indirectly, to be solicited or persuaded any existing
customer or client, or potential customer or client to which the Companies have
made a presentation or with which the Companies have been having discussions, to
cease doing business with or decrease the amount of business done with or not to
hire the

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	 	 	 	Companies, or to commence doing Business with or increase the amount of Business
done with or hire another company;

	 	iii.	 	solicit, persuade or attempt to solicit or persuade or cause or
authorize, directly or indirectly, to be solicited or persuaded the business of
any person or entity that is a customer or client of the Companies, or was their
customer or client within two (2) years prior to cessation of your employment by
any of the Companies or any of their subsidiaries, for the purpose of competing
with the Business; or
	 
	 	iv.	 	solicit, persuade or attempt to solicit or persuade, or cause or
authorize, directly or indirectly, to be solicited or persuaded for employment,
or employ or cause or authorize, directly or indirectly, to be employed, on
behalf of you or any other person or entity, any individual who is or was at any
time within six (6) months prior to cessation of your employment by the
Companies, an employee of any of the Companies.

	 	 	 	If you breach or violate any of the provisions of this Section 14, the running of
the Period of Non-Competition (but not of any of your obligations under this Section
14) will be tolled with respect to you during the continuance of any actual breach or
violation. In addition to any other rights or remedies the Company may have under this
Agreement or applicable law, the Company will be entitled to receive from you reimbursement
for all attorneys’ and paralegal fees and expenses and court costs incurred by the Companies
in enforcing this Agreement and will have the right and remedy to require you to account for
and pay over to the Company all compensation, profits, monies, accruals or other benefits
derived or received, directly or indirectly, by you from the action constituting a breach or
violation of this Section 14.

	 	b.	 	Exceptions. Entities that provide construction or installation services to
wireless communications entities or tower site entities shall not be considered engaged in and
competitive with the Business.

	15.	 	Waiver: By signing this Agreement, you acknowledge that:

	 	a.	 	You have carefully read, and understand, all of the provisions of
this Agreement;
	 
	 	b.	 	You have been given twenty-one (21) days to consider your rights
and obligations under this Agreement and to consult with an attorney and, should
you sign this Agreement without waiting the full 21 days, your decision in this
regard is knowing and voluntary and not induced through fraud, misrepresentation
or a threat to withdraw or alter the offer contained herein;
	 
	 	c.	 	The Company advised you to consult with an attorney and/or any
other advisors of your choice before signing this Agreement;

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	 	d.	 	You understand that this Agreement is legally binding and
by signing it you give up certain rights;
	 
	 	e.	 	You have knowingly and voluntarily chosen to enter into this
Agreement and have not been forced or pressured in any way to sign it;
	 
	 	f.	 	You knowingly and voluntarily release the Company and its
Affiliates, from any and all claims you may have, known or unknown, in exchange
for the payments and other consideration you have obtained by signing this
Agreement, and that these payments are in addition to any payments you would have
otherwise received if you did not sign this Agreement;
	 
	 	g.	 	The General Release in this Agreement includes a waiver of all
rights and claims you may have under the Age Discrimination in
Employment Act of 1967 (29 U.S.C. §621 et seq.); and
	 
	 	h.	 	This Agreement does not waive any rights or claims that may arise
after this Agreement is signed and becomes effective, which is eight (8) days
after you sign it.

	16.	 	Non-admission of Wrongdoing: By entering into this Agreement, neither the Company
nor any of its Affiliates, nor you, admit any wrongdoing or violation of law.
	 
	17.	 	Changes to the Agreement: This Agreement may not be changed unless the changes are
in writing and signed by you and a proper representative of the Company.
	 
	18.	 	Entire Agreement: This Agreement contains the entire agreement between you and the
Company and replaces any prior agreements or understandings between you and the Company.
	 
	19.	 	Effective Date: The effective date of this Agreement (the “Effective Date”) shall be
eight days from the date on which you sign it. If you choose to sign the Agreement, please
send the signed Agreement to Alberto de Cardenas at MasTec, Inc., 800 Douglas Road,
12th Floor, Coral Gables, Florida 33134. You then have seven (7) days from the
date you sign this Agreement to revoke this Agreement. If you choose to revoke this
Agreement, you must send written notice of your decision to Alberto de Cardenas so that such
revocation is received no later than the seventh day after you originally signed the
Agreement. You understand that the Company will not be required to make any payments or
provide any benefits described in this Agreement unless this Agreement becomes effective.

[Signatures on the following page.]

6

 

	 	 	 	 	 
	 	Very truly yours,

MasTec, Inc.

 	 
	 	By /s/ Austin Shanfelter
 	 
	 	Austin Shanfelter  	 
	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	Read, Accepted and Agreed:

 	 
	 	/s/ Gregory Floerke
 	 
	 	Gregory Floerke 	 
	 	Date: March 31, 2006
 	 
	 

7Restricted Stock Agreement/Employees

 

Exhibit 10.7

MASTEC, INC.

RESTRICTED STOCK AGREEMENT

     1. Award of Shares. MasTec, Inc. (the “Company”) has awarded to the “Recipient”
designated below, the “Award” generally described in the Notice of Restricted Stock Award (the
“Notice”), which is hereby incorporated by reference, subject to the terms and conditions of the
Company’s 2003 Employee Stock Incentive Plan (“Plan”). The Company and the Recipient agree that
these Awards are governed by the terms and conditions of the Plan, as amended from time to time,
which are incorporated herein in their entirety. Unless otherwise provided herein, terms used
herein that are defined in the Plan (or the Notice) and not defined herein shall have the meanings
attributable thereto in the Plan (or the Notice).

     2. Award Restrictions.

          (a) The shares of restricted stock (the “Restricted Stock”) covered by the Award shall vest on
the vesting dates (each a “Vesting Date”) set forth below, provided that the Recipient continues to
be employed by, or provide services to, the Company or a Related Company through and until the
applicable Vesting Date:

	 	 	 	 	 	 
	 	Vesting Date
	 	 	Number of Shares that

Become Vested	 
	 	[          ]
	 	 	[          ]	 
	 	[          ]
	 	 	[          ]	 
	 	[          ]
	 	 	[          ]	 
	 

          (b) Upon each Vesting Date, or upon the vesting of Restricted Stock pursuant to Section 4 of
this Agreement, the Company shall cause a stock certificate covering the number of shares that have
become vested to be issued in the name of the Recipient or the Recipient’s Beneficiary(ies) and to
be distributed to the Recipient or Beneficiary(ies) as soon as administratively practicable. After
receipt of such stock certificate(s), the Recipient or Beneficiary(ies) are free to hold or dispose
of the shares of Common Stock evidenced by the certificate(s).

          (c) Any shares of Common Stock covered by the Award shall not be transferable by the Recipient
by means of sale, assignment, exchange, pledge, or otherwise, unless and until they become vested
pursuant to the terms of this Agreement. The naming of a Beneficiary under the Plan does not
constitute a transfer.

     3. Stock Certificates.

          (a) The stock certificate(s) evidencing the Restricted Stock shall be registered in the name
of the Recipient as of the Date of Grant designated in the Notice. Physical possession or custody
of such stock certificate(s) shall be retained by the Company until such

 

 

time as the shares of Common Stock become vested. The Company reserves the right to place a
legend on the stock certificate(s) restricting the transferability of such certificate(s).

          (b) During the period prior to vesting, the Recipient shall be entitled to all rights of a
shareholder of the Company with respect to the Restricted Stock, including the right to vote the
shares and receive cash dividends. Stock dividends declared by the Company will be characterized
as Restricted Stock and will be subject to vesting and be distributed at the same times as the
Restricted Stock with respect to which they were declared as dividends.

     4. Termination of Employment. If the Recipient terminates employment with and is not
providing any other services for the Company or any Related Company due to the Recipient’s death or
Disability, or if a Change in Control of the Company or any Related Company occurs while the
Recipient is employed by, or providing other services to, the Company or any Related Company
(“Triggering Event”), the Restricted Stock, to the extent not already vested, shall vest in full as
of the Triggering Event. The Recipient may designate a Beneficiary(ies) to receive the stock
certificate representing that portion of the Restricted Stock that is or becomes vested at the time
of the Recipient’s death. The Recipient has the right to change such Beneficiary designation at
will. In addition, the Committee retains the right to accelerate vesting of any Restricted Stock
awarded under the Plan. Upon termination of the Recipient’s employment with and other services for
the Company and the Related Companies, for any reason, any Restricted Stock that has not previously
become vested (and that does not then become vested as a result of a Triggering Event) shall be
immediately forfeited and revert back to the Company without any payment to the Recipient.

     5. Recapitalization, Mergers, Etc. As provided in the Plan, in the event of corporate
transactions affecting the Company’s outstanding common stock, such as recapitalizations or
mergers, the Committee may equitably adjust the number and kinds of shares subject to this Award,
may accelerate the vesting of awards hereunder, may provide for the termination of such awards
after at least giving thirty (30) days’ notice to the Recipient, and may take such other action as
the Committee may determine to be appropriate pursuant to the Plan.

     6. Compliance with Securities Laws. It shall be a condition to the Recipient’s right
to receive shares of Restricted Stock hereunder that the Committee may, in its discretion, require
(a) that the shares of Restricted Stock reserved for issue upon the grant of this award shall have
been duly listed, upon official notice of issuance, upon any national securities exchange or
automated quotation system on which the Company’s common stock may then be listed or quoted, (b)
that either (i) a registration statement under the Securities Act of 1933 with respect to the
shares shall be in effect, or (ii) in the opinion of counsel for the Company, the proposed purchase
shall be exempt from registration under that Act and the Recipient shall have made such
undertakings and agreements with the Company as the Company may reasonably require, and (c) that
such other steps, if any, as counsel for the Company shall consider necessary to comply with any
law applicable to the issue of such shares by the Company shall have been taken by the Company or
the Recipient, or both. The certificates representing the shares granted under this Award may
contain such legends as counsel for the Company shall consider necessary to comply with any
applicable law.

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     7. Administration.

          (a) The Committee shall have full authority and discretion to decide all matters relating to
the administration and interpretation of this Agreement. The Committee shall have full power and
authority to pass and decide upon cases in conformity with the objectives of this Agreement under
such rules as the Board of Directors of the Company may establish.

          (b) Any decision made or action taken by the Company, the Board of Directors, or the Committee
arising out of, or in connection with, the administration, interpretation, and effect of this
Agreement shall be at their absolute discretion and will be conclusive and binding on all parties.
No member of the Board of Directors, Committee, or employee of the Company shall be liable for any
act or action hereunder, whether of omission or commission, by the Recipient or by any agent to
whom duties in connection with the administration of this Agreement have been delegated in
accordance with the provision of this Agreement.

     8. Tax Matters; Section 83(b) Election.

          (a) If the Recipient does not properly make the election described in Section 8(b) below, the
Recipient shall, no later than the date or dates as of which the restrictions referred to in this
Agreement hereof shall lapse, pay to the Company, or make arrangements satisfactory to the
Committee for payment of, any federal, state or local taxes of any kind required by law to be
withheld with respect to the Restricted Stock (including without limitation the vesting thereof),
and the Company shall, to the extent permitted by law, have the right to deduct from any payment of
any kind (including without limitation, the withholding of any Shares that otherwise would be
distributed to the Recipient under this Agreement) otherwise due to Recipient any federal, state,
or local taxes of any kind required by law to be withheld with respect to the Restricted Stock.

          (b) If the Recipient properly elects, within thirty (30) days of the Date of Grant, to include
in gross income for federal income tax purposes an amount equal to the fair market value (as of the
Date of Grant) of the Restricted Stock pursuant to Section 83(b) of the Internal Revenue Code of
1986, as amended (the “Code”), the Recipient shall make arrangements satisfactory to the Committee
to pay to the Company any federal, state or local income taxes required to be withheld with respect
to the Restricted Stock. If the Recipient shall fail to make such tax payments as are required,
the Company shall, to the extent permitted by law, have the right to deduct from any payment of any
kind (including without limitation, the withholding of any Shares that otherwise would be issued to
the Recipient under this Agreement) otherwise due to the Recipient any federal, state or local
taxes of any kind required by law to be withheld with respect to the Restricted Stock.

          (c) The Recipient may satisfy the withholding requirements pursuant to any one or combination
of the following methods:

               (i) payment in cash; or

               (ii) if and to the extent permitted by the Committee, payment by surrendering unrestricted
previously held shares of Common Stock which have a value equal to

3

 

the required withholding amount or the withholding of shares of Common Stock that otherwise
would be deliverable to the Recipient pursuant to this Award. The Recipient may surrender shares
of Common Stock either by attestation or by delivery of a certificate or certificates for shares
duly endorsed for transfer to the Company, and if required with medallion level signature guarantee
by a member firm of a national stock exchange, by a national or state bank (or guaranteed or
notarized in such other manner as the Committee may require).

          (d) Tax consequences on the Recipient (including without limitation federal, state, local and
foreign income tax consequences) with respect to the Restricted Stock (including without limitation
the grant, vesting and/or forfeiture thereof) are the sole responsibility of the Recipient. The
Recipient shall consult with his or her own personal accountant(s) and/or tax advisor(s) regarding
these matters, the making of a Section 83(b) election, and the Recipient’s filing, withholding and
payment (or tax liability) obligations.

     9. Company Relation with Recipients. Nothing in this Agreement shall confer on the
Recipient any right to continue employment or service with the Company or any Related Company.

     10. Force and Effect. The various provisions of this Agreement are severable in their
entirety. Any determination of invalidity or unenforceability of any one provision shall have no
effect on the continuing force and effect of the remaining provisions.

     11. Entire Agreement. This Agreement contains the entire understanding of the parties
and shall not be modified or amended except in writing and duly signed by the parties after
appropriate action by the Committee. No waiver by either party of any default under this Agreement
shall be deemed a waiver of any later default.

     12. Miscellaneous. This Agreement is subject to and shall be administered and
governed in all respects under the laws of the State of Florida without regard to its conflict of
law rules. This Agreement is binding upon the Company, its successors and assigns, and the
Recipient, and his/her heirs, legal representatives and permitted assigns. Captions are provided
for reference, do not form a part of this Agreement and are not admissible to determine the intent
of the parties.

     IN WITNESS WHEREOF, the parties have executed this Agreement on this ___day of ___,
___.

	 	 	 	 	 
	 	MASTEC, INC.

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	Its:
___________________________

[NAME OF RECIPIENT]

________________________________

Signature 	 
	 

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