Document:

EX-10.1

 

Translation

Exhibit 10.1

LABOR AGREEMENT

THIS INDIVIDUAL LABOR AGREEMENT FOR AN UNDETERMINED TIME IS EXECUTED ON THE ONE HAND BY TFM, S.A.
DE C.V. (HEREINAFTER REFERRED TO AS THE “COMPANY”), HEREIN REPRESENTED BY PAUL J. WEYANDT, AS
LEGAL ATTORNEY, AND ON THE OTHER BY FRANCISCO JAVIER RION DEL OLMO, (HEREINAFTER REFERRED TO AS THE
“EMPLOYEE”), ON ITS OWN RIGHT, IN ACCORDANCE WITH THE FOLLOWING RECITALS AND CLAUSES:

RECITALS

I. The “COMPANY” declares:

	 	a)	 	     That it is a sociedad anónima de capital variable, duly incorporated in accordance with
the Mexican laws.
	 
	 	b)	 	     That in accordance with its corporate purpose, it has the capacity to execute this
agreement.
	 
	 	c)	 	     That it is domiciled in Avenida Periferico Sur 4829, 4o Piso, Colonia Parques del
Pedregal, Delegación Tlalpan, C.P. 14010, Mexico City, Federal District.
	 
	 	d)	 	     That it requires the services of a qualified “EMPLOYEE” who has the knowledge to act as
General Executive Director.

II. The “EMPLOYEE” declares:

	 	a)	 	     That he is named as stated in this agreement.
	 
	 	b)	 	     That he is a Mexican citizen
	 
	 	c)	 	     That he is 50 (fifty) years old.
	 
	 	d)	 	     That he is married
	 
	 	e)	 	     That he is of the male gender
	 
	 	f)	 	     That he is domiciled at Hacienda de Tepeapulco No. 7. Colonia Hacienda de Vallescondido,
Atizapán de Zaragoza, C.P. 52937, State of Mexico and states that in the event he changes the
domicile stated in this agreement, he shall be bound to notify so in writing the “COMPANY”
within a maximum term of five days as from the date when performing such change of domicile,
provided that otherwise, last domicile provided as that authorized for any legal purpose
resulting from this labor agreement and specially in accordance with Articles 47 and 991 of
the Federal Labor Law shall be acknowledged.

 

 

Translation

	 	g)	 	     That he is aware of the work to be performed in the “COMPANY” and that eventually he may
render his services for other affiliate companies and/or subsidiaries of TFM, S.A. de C.V.
(from which the “COMPANY” is also a subsidiary) and that he agrees that he will be in touch
with such companies and shall perform works therefor, but agreeing that his sole employer
shall be the “COMPANY”.
	 
	 	h)	 	     That he has the capacity and experience necessary to render his personal services to the
“COMPANY”, with respect to the title for which he is been engaged and that as up to date, it
has no criminal record, and has the legal capacity to render his services upon execution
hereof.
	 
	 	i)	 	     That he has read, understood and agreed with all the internal rulings applicable to the
officers engaged by the “COMPANY”.

Based on the foregoing recitals, the parties agree to regulate the contractual labor relation in
accordance with the following:

CLAUSES

ONE.- TERM OF THIS AGREEMENT. This labor agreement is executed for an undetermined time and
may not be amended, suspended, terminated or completed but by the agreement of the parties and
under the terms set forth by the Federal Labor Law and its applicable rulings. The “EMPLOYEE” shall
start acting as General Executive Director of the “COMPANY” as from July 5, 2005. If the “COMPANY”
terminates this labor agreement without any justified reason, the “COMPANY” and the “EMPLOYEE”
agree that the sole obligation of the “COMPANY” shall be that of paying the “EMPLOYEE” an
indemnification equal to the amount of a year of his daily salary, and any payment to the
“EMPLOYEE” as indemnification set forth under the terms of the Federal Labor Law, its applicable
rulings and this agreement shall be included within such indemnification of a year, provided
payment of a year of salaries referred to in this clause is less to the amount of the legal
benefits, shall be in favor of the employee, payment of the corresponding indemnification
difference shall be in benefit of the “EMPLOYEE” without in any form, considering it the payment of
accrued salaries, since such payment shall be made on the termination date.

TWO.- WORKING PLACE. The “EMPLOYEE” shall render his services for the “COMPANY” in any of
the establishments of the “COMPANY” or where his services are needed, in accordance with the orders
that for such purpose are instructed by the “COMPANY’S” representatives and therefore the
“EMPLOYEE” shall be bound to render his services at the domicile of the establishments required or
where the “COMPANY” has any establishment, including Mexico City and Monterrey. The “COMPANY” shall
be empowered to transfer him to another location at any time prior notification and agreement
between the parties if so.

THREE.- DURATION OF THE WORK SHIFT. Due to the nature of the title functions to be
performed by the Employee, which are considered as non-unionized labors, the “EMPLOYEE” shall
distribute his working shift in accordance with the Company’s operation needs.

 

 

Translation

FOUR. SERVICES RENDERED. The “EMPLOYEE” shall render his subordinated and personal services
to the “COMPANY” with the category and occupying the General Executive Director Title, and the
“EMPLOYEE” agrees to render such services on a subordinated basis, subject, at any time, to the
Company’s Board of Directors’ instructions, the Executive Committee of the Board of Directors, or
any other person or body appointed by the Board of Directors of the Company, and within his
obligations, shall include those below:

	a)	 	     To be responsible to survey and supervise performance of all activities and operations of the
Company, as required from time to time, in the understanding that the “EMPLOYEE” shall also
have the obligation to perform all similar and related activities, all activities resulting
from the business and industrial practices and all other activities necessary or convenient to
comply with the purposes and goals of the Company.
	 
	b)	 	     Devote all his labor time to perform the activities required by his employment, and shall not
perform any other business or profitable activity while been employed by the “COMPANY” without
prior consent in writing from the Company’s Board of Directors.
	 
	c)	 	     The “EMPLOYEE” shall, during the term of his position, act on a responsible manner, complying
with all policies applicable to the “COMPANY” and the instructions from the Company’s Board of
Directors, as well as to observe the applicable legislation and foster his coworkers to act in
the same manner.
	 
	d)	 	     Services shall be mainly rendered at the Company’s facilities located at Avenida Periferico
Sur 4829, 4o Piso, Colonia Parques del Pedregal, Delegación Tlalpan. C.P. 14010, Mexico City,
Federal District or at any other place where the “COMPANY” has its main offices or at any of
the domiciles of its affiliates or the companies with which the “COMPANY” has any sharing
interest or business relations, but at any time the beneficiary and the person responsible for
the relation regulated herein, shall be the company; and the “EMPLOYEE” as from that time
acknowledges the “COMPANY” as its sole employer, and therefore an essential portion of the
employee’s functions shall be to keep informed the “COMPANY” with respect to the development
of his activities.

Regardless the foregoing, the “EMPLOYEE” shall perform all those activities including, without
limitation, those derived and related to the main obligations of his position and all labor
inherent or related with the main obligation, even when such activities are to be performed outside
the working place, and without prejudice to the amount of his salary.

In the event that due to the services requirements to be rendered by the “EMPLOYEE” to the Company,
the “EMPLOYEE” should be granted with powers of attorney as officer or legal attorney of any of the
Company’s affiliated companies, this shall not imply existence of a labor relation between the
“EMPLOYEE” and the “COMPANY” or companies that would grant him powers of attorney, since it is
expressly acknowledged by the “EMPLOYEE” that the sole labor relation he will have will be that
with the company, which is acknowledged from time to time, by the “EMPLOYEE” as his sole employer.

The “EMPLOYEE” shall render his services to the “COMPANY” under the direction thereof or the
direction of its representatives, the authority of which shall be subordinated with anything
referred to the title; and the “EMPLOYEE” shall perform this job with the appropriate intensity

 

 

Translation

and care, in the manner, time and place agreed upon, being the “COMPANY” fully empowered to modify
the obligations of the “EMPLOYEE” without affecting his labor conditions, specially with respect to
his salary.

FIVE. VACATIONS, VACATION BONUS, CHRISTMAS BONUS. The “EMPLOYEE” shall be entitled to an
annual period of 25 days of vacations. The vacation period shall be on an annual basis and in no
event shall be accrued.

In order to enjoy of the annual vacation period, the Company, at any time, and jointly with the
“EMPLOYEE” shall determine the schedule, in order for the “EMPLOYEE” to enjoy the corresponding
days of vacations.

The “EMPLOYEE” shall be entitled to the payment of the 50% vacation bonus on the number of days of
vacations, which correspond thereto per year and such vacations shall be automatically and
proportionally paid as from the time when the “EMPLOYEE” charges the salary corresponding to the
appropriate month.

The “EMPLOYEE” shall be entitled to an annual Christmas bonus, as set forth in Article 87 of the
Federal Labor Law in the amount of 30 (thirty) days of salary per daily rate, which shall also be
paid on a proportional basis when his monthly salary is paid; the “EMPLOYEE” shall also be entitled
to those mandatory holidays as set forth in Article 74 of such law, as well as to weekly holidays
which shall be preferentially Saturdays and Sundays of each week.

SIX. TRAINING. The “EMPLOYEE” agrees to receive the training in accordance with the courses
set forth within the plans and programs duly authorized by the Ministry of Labor and Social
Prevision, under the terms of Title Four, Chapter III bis of the Federal Labor Law. The “EMPLOYEE”
agrees to punctually attend the courses, group meetings and other activities forming part of the
training process, and likewise to comply with the indications with respect thereto and take the
evaluation and aptitude exam required in accordance with the terms of Article 153-H of the Federal
Labor Law.

SEVEN. “SALARY”. The “EMPLOYEE” shall earn a gross monthly salary of $37,500.00
(thirty-seven thousand five hundred US dollars, 00/100 cents, lawful currency of the United States
of America) before taxes corresponding to such amount which shall be paid in two installments, one
the 15th day and the other on the last days of each month, at the “COMPANY’S” domicile
or at the place stated therefor. The “COMPANY”, through its Board or Executive Committee, shall
consider and set forth the salary of the General Executive Director on an annual basis, and with
the market study (by Towers Perrin or any other consultant) and preparation of the budget for the
following year. The prior salary shall include payment of the seventh day and the amount
corresponding to the mandatory holidays, as well as the proportional part of the weekly holidays,
in accordance with the provisions set forth in the Federal Labor Law, as well as any other benefit
that in accordance with the Federal Labor Law corresponds thereto or by the specific standards
applicable to the “COMPANY” due to its corporate activity.

Due to the nature of the “EMPLOYEE’S” functions, and upon request thereof, the “COMPANY” shall pay
the salary corresponding thereto, by means of banking deposits, to the “EMPLOYEE’S” account stated
for such purpose; And the “EMPLOYEE” shall be bound to subscribe all receipts and administrative
controls being submitted by the “COMPANY”,

 

 

Translation

therefore, as from now it is set forth that the receipts or the banking deposit proofs shall be
equivalent to the payment receipts, regardless they are signed or not by the “EMPLOYEE”.

EIGHT. The parties agree that the “EMPLOYEE” is bound to send “THE “COMPANY” in writing the
bi-monthly receipt corresponding to the earnings to which he is entitled to, which shall include
the earnings and deductions expressly accepted thereby, by signing in agreement for each of the
periods such receipts cover, and making evident that in the event no concept per extra time appears
is because the ”EMPLOYEE” did not work such extra time and therefore the broadest settlement
through all benefits to which he was entitled to shall be extended, and any clarification or claim
shall be made before subscribing the corresponding receipt.

NINE. “MEDICAL EXAMS”. The “EMPLOYEE” agrees, under the terms of the provisions set forth
in fraction X of article 134 of the Federal Labor Law, to make all acknowledgements and medical
examinations, the “COMPANY” indicates, as well as those corresponding in accordance with the
Sanitary Rulings.

TEN. “CONFIDENTIALITY”. The “EMPLOYEE” acknowledges that he will have, due to the services
agreed in this agreement, access to confidential information, manufacturing secrets, operation and
business aspects of the “COMPANY”, which are considered as an industrial secret, and agrees not to
disclose to third parties such information, except there is an express authorization in writing by
the “COMPANY’S” representatives, and accepting the corresponding fines in the event of breaching
this Clause.

ELEVEN. “INVENTIONS”. The “EMPLOYEE” expressly agrees that any finding, invention or
improvement, or any other technological knowledge he discovers or contributes by the activities
perform, whether individually or in team, during the performance of his duties in favor of the
“COMPANY”, shall be the exclusive property of the “COMPANY”. By virtue thereto, the “EMPLOYEE” does
not reserve any right nor action with respect to the use and/or exploitation of the finding,
invention or technological knowledge mentioned above, since such activities are paid within the
salary he receives per the job he was engaged for and therefore, the “EMPLOYEE” agrees to perform
with the “COMPANY” all the corresponding management and proceedings in accordance with the law to
perform the corresponding registration which shall be in the name of the “COMPANY” and that the
“COMPANY” may perform the protection and/or exploitations of the industrial property rights
mentioned above, and therefore, the “EMPLOYEE” agrees to sign any document and make any legal act
required with such respect.

TWELVE. “JURISDICTION AND INTERPRETATION”. Provisions not set forth in this agreement shall
be subject to the provisions of the Federal Labor Law and the Applicable Provisions; therefore, for
the construction of this agreement, the parties expressly state their agreement and shall submit
their differences, in the event of any dispute, to the competence of the Conciliation and
Arbitration Federal Board corresponding thereto due to the domicile or place where the rendering of
services is being performed.

 

 

Translation

Once this agreement was read, the parties aware of their contents and the obligations included
therein, execute it as their free will in Mexico City, Federal District, on June 23, 2005.

The “COMPANY”

TFM, S.A. de C.V.

(ILLEGIBLE SIGNATURE)     

By PAUL J. WEYANDT

Title: Interim Chief Financial Officer

The “EMPLOYEE”

(ILLEGIBLE SIGNATURE)     

FRANCISCO JAVIER RION DEL OLMO

 

 

Translation

Mexico City, Federal District, June 23, 2005

FRANCISCO JAVIER RION DEL OLMO:

Regardless the benefits appearing in your Individual Labor Agreement dated June 23, 2005, you will
be entitled to:

1. BONUS. In addition to your salary, you may receive a performance bonus, which, if
applicable, shall be determined in accordance with the compliance of the goals of the particular
are in the “COMPANY” where you render your services, and according to the assessment made by the
Board of Directors, in accordance with the policy in force each year. The Board of Directors shall
determine yearly goals such as the “minimum, objective, and maximum” goals. If the company has an
objective goal, the performance bonus for the General Executive Director level may not exceed 45%
of the annual base salary amount to be accrued. To receive the performance bonus, the COMPANY must
achieve the Objective Goal. The Board of Directors shall determine the performance bonus for the
results between the minimum and the objective goals, and for the maximum goal and a better one. The
performance bonus shall be annually paid provided the terms and conditions for its execution are
complied with.

The Company shall pay the aforementioned bonus, by means of the banking deposit systems, to the
account you state for such purpose; and you shall be bound to subscribe the corresponding receipt,
therefore as from now it is set forth that the slips or banking deposit proofs shall be equivalent
to the payment receipts, regardless they are signed by you or not.

2. AUTOMOBILE. In order to perform your duties, an automobile and a driver shall be
provided to you as a work tool and this car shall be owned by the Company, therefore, the Company
shall pay the corresponding insurance, as well as the holding tax. On the other hand, you are bound
to keep the automobile in the same conditions as received, except for the normal wear and tear.
Likewise, you agree to pay the gasoline consumption as well as the verification expenses, services
and repairs when so required.

3. RESTRICTED SHARES. The Company shall grant, in order to align its interests with the
parent company shareholders’ interests, 40,000 shares of Kansas City Southern, which are restricted
for five years and subject to all the terms and conditions set forth in the shares plan attached
hereto, plan which was read and its content and legal scope were disclosed. These shares may not be
due nor conveyed within the following five years as from the execution of the Individual Labor
Agreement, except for that specifically set forth in such plan.

4. INSURANCE. During the term the labor relationship lasts, the Company is bound to engage
the accident insurance and the major medical insurance as well as the life insurance under the
terms of the existing policy in the Company for its executives.

5. GENERAL CONDITIONS. You expressly agree to be subject to the general labor conditions
set forth by the Company, as well as to the technical and administrative order regulations directly
prepared by the Company for the execution, work coordination and other internal

 

 

Translation

policies. Therefore, you agree to observe, respect and comply with all and any of the policies,
standards and conditions which have been delivered to you, and upon execution hereof, you state
your agreement and express compliance with the terms thereof.

TFM, S.A. de C.V.

(ILLEGIBLE SIGNATURE)

By PAUL J. WEYANDT

Title: Interim Chief Financial Officer

In agreement:

(ILLEGIBLE SIGNATURE)

FRANCISCO JAVIER RION DEL OLMOexv10w1

 

Exhibit 10.1

ASSET PURCHASE AGREEMENT

     This ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of June 30, 2005
by and among INTEGRATED ELECTRICAL SERVICES, INC., a Delaware corporation (the “Parent”), ERNEST P.
BREAUX ELECTRICAL, INC., a Delaware corporation (the “Company”), BREAUX CONSTRUCTORS, INC., a
Louisiana corporation (the “Buyer”), and Ernest P. Breaux, Jr., an individual and resident of the
State of Louisiana (“Guarantor”).

WITNESSETH:

     WHEREAS, the Parent owns, either directly or indirectly, all of the issued and outstanding
capital stock of the Company, which is engaged in the electrical construction and services business
(the “Business”);

     WHEREAS, the Parent and the Company desire to sell to the Buyer substantially all of the
Company’s assets, which are more fully described in Section 1.1 hereof, and the Buyer
desires to acquire such assets in consideration of the payment by the Buyer of the purchase price
and the assumption by the Buyer of the liabilities provided for herein, all upon the terms and
subject to the conditions hereinafter set forth;

     WHEREAS, Guarantor is the chairman of the Board of the Buyer, and one of the owners of Buyer’s
parent, Iberia Investment Group, L.L.C., and has agreed to personally guarantee to the Parent and
the Company the Buyer’s performance of all representations, warranties, covenants, agreements and
conditions set forth herein;

     NOW, THEREFORE, for and in consideration of the premises and of the respective
representations, warranties, covenants, agreements and conditions of the parties contained herein,
it is hereby agreed as follows:

1. PURCHASE AND SALE OF ASSETS.

     1.1 Transfer of Assets. On the terms and subject to the conditions set forth in this
Agreement, on the Closing Date (as defined in Section 2.1 hereof), the Company shall sell,
convey, assign, transfer and deliver to the Buyer, and the Buyer shall purchase and acquire from
the Company (except as provided in Section 1.2 hereof) all of the assets, rights and properties of
the Parent or the Company set forth on Schedule 1.1. The assets described in this
Section 1.1 as being sold, conveyed, assigned, transferred and delivered to the Buyer
hereunder are sometimes hereinafter referred to collectively as the “Assets”.

     1.2 Excluded Assets. It is expressly understood and agreed that the Assets shall not
include the following (such assets are hereinafter referred to collectively as the “Excluded
Assets”):

     (a) Cash and cash equivalents or similar type investments, such as certificates of
deposit, Treasury bills and other marketable securities;

 

 

     (b) Claims for refunds of taxes and other governmental charges to the extent such
refunds relate to periods ending on or prior to the Closing Date;

     (c) Any asset, tangible or intangible, which is not freely transferable without the
consent of a third party, upon the failure to obtain such consent;

     (d) The original corporate minute books, stock books, financial records, tax returns,
personnel and payroll records and corporate policies and procedures manuals of the Company
and other records required by applicable laws to be retained;

     (e) Any contract or agreement, whether written or oral, between the Company and IES
Contractors, Inc. or Federal Contracts Group, L.P.

     (f) Any amounts owed to the Company (other than any receivables listed on Schedule
1.1(g)) by Parent, Integrated Electrical Finance, Inc., IES Management LP, IES
Management ROO LP, IES Properties, Inc., or IES Reinsurance, Ltd.;

     (g) The accounts receivable associated with bonded jobs identified on Schedule
1.2 in the total net amount of $2,501,935 (the “Excluded Accounts”);

     (h) Any asset of Cypress Electrical Contractors, Inc. (“Cypress”) or Wright Electrical
Contracting, Inc. (“Wright”); and

     (i) Any asset not set forth on Schedule 1.1.

     1.3 Instruments of Conveyance and Transfer.

     (a) At the Closing, the Buyer, the Company and the Parent shall enter into a Bill of
Sale, Assignment and Assumption Agreement in the form attached hereto as Exhibit A,
transferring to the Buyer good and indefeasible title to all of the tangible personal
property included in the Assets, subject only to Permitted Encumbrances.

     (b) At the Closing, the Buyer, Company and the Parent shall deliver such other
instruments of transfer and assignment in respect of the Assets as the Buyer or Parent shall
reasonably require and as shall be consistent with the terms and provisions of this
Agreement.

     (c) At the Closing, the Buyer shall cause the Transferred Employees (as hereinafter
defined) to, resign as officers and directors of the Company and any other affiliates of the
Parent.

     1.4 Further Assurances. From time to time after the Closing, the Parent and the
Company will execute and deliver, or cause to be executed and delivered, without further
consideration, such other instruments of conveyance, assignment, transfer and delivery and will
take such other actions as the Buyer may reasonably request in order to more effectively transfer,
convey, assign and deliver to the Buyer, and to place the Buyer in possession and control of any of
the Assets or to enable the Buyer to exercise and enjoy all rights and benefits of the Company with
respect thereto.

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     1.5 Liabilities. On the Closing Date, the Buyer will assume and agree to pay and
discharge all liabilities of the Company, known or unknown, absolute or contingent (the “Assumed
Liabilities”) other than the liabilities set forth on Schedule 1.5 (the “Retained
Liabilities”), which shall be retained by the Parent or the Company, respectively.

     1.6 Expenses: Consents and Taxes. The Buyer shall pay, or cause to be paid (i) all
costs and expenses of obtaining all consents of third parties for the assignment of any of the
Assets, and (ii) all transfer, stamp, sales, use or other similar taxes or duties payable in
connection with the sale and transfer of the Assets to the Buyer.

2. CLOSING; PURCHASE PRICE.

     2.1 Closing Date. The consummation of the transactions contemplated in this Agreement
(the “Closing”) shall take place at the offices of Gardere Wynne Sewell LLP, 1000 Louisiana, Suite
3400, Houston, Texas at 10:00 a.m., Central time, June 30, 2005 (the “Closing Date”)
contemporaneously with the execution of this Agreement or at such other place and time as the
parties hereto may mutually agree.

     2.2 Purchase Price. The aggregate purchase price for the Assets shall be
$5,567,267.74 (the “Purchase Price”), subject to adjustment pursuant to Section 2.3 below,
plus the Buyer’s assumption of the Assumed Liabilities pursuant to Section 1.5 above. The
Purchase Price shall be payable by the Buyer at the Closing to the Company in immediately available
funds by confirmed wire transfer to a bank account to be designated by the Company.

     2.3 Cash Reconciliation. Within 60 days following the Closing Date, the Company shall
prepare and deliver to the Buyer a schedule setting forth, for the period commencing on May 1,
2005, and ending as of the Closing, (a) the cash disbursements funded by the Company, the Parent or
any of their affiliates for the benefit of the Company, to include those made in the ordinary
course to trade vendors and those made in the ordinary course for Company employee benefit plans
(the “Disbursements”), and (b) the cash deposits made by the Company (the “Deposits”). Within
three business days following the Buyer’s receipt of such schedule, (i) the Buyer shall remit to
the Company in immediately available funds, the amount by which the Disbursements exceed the
Deposits, if any; or (ii) the Company shall remit to the Buyer, in like manner and within such
period, the amount by which Deposits exceed the Disbursements, if any. Disbursements shall include,
but not be limited to, actual cash amounts paid by the Company or the Parent on behalf of the
Company with respect to pre-Closing periods, including (i) amounts paid after April 30, 2005 for
checks issued by the Company or Parent on behalf of the Company on or before April 30, 2005 that
had not cleared the banks on April 30, 2005, which amounts were reflected on the April 30, 2005
balance sheet as negative cash amounts, (ii) checks issued by the Buyer or Parent on behalf of the
Company subsequent to April 30, 2005, but before the Closing that have not cleared the banks as of
the Closing, (iii) workers compensation, general liability, auto insurance, health and similar
insurance premiums paid by the Parent on behalf of the Company with respect to periods prior to the
Closing, whether accrued prior to or after the Closing, and (iv) other amounts paid by the Company
or by the Parent on behalf of the Company with respect to periods prior to the Closing, but for
which invoices are received or accruals are made after the Closing Date. Deposits shall include,
but not be limited to, actual cash amounts received by the Company or the Parent on behalf of the
Company subsequent to April 30, 2005, but before the Closing that have not been reflected in

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the Company’s accounts as of the Closing. Disbursements and Deposits will be accounted for in
accordance with Parent’s accounting practices consistent with past periods. At the same time as
Buyer or the Company, as appropriate, pay the amount of Deposits less Disbursements, the Parent and
the company shall remit to the Buyer the amount of any account receivables owed by Parent or its
affiliates to the Company on the Closing Date, to the extent not previously paid.

3. REPRESENTATIONS AND WARRANTIES.

     3.1 Representations and Warranties of the Company and the Parent. The Company and the
Parent represent and warrant to the Buyer as follows:

     (a) Organization, Authority and Qualification of the Company. The Company is a
corporation duly organized and validly existing under the laws of the State of Delaware and
the Company has full corporate power and authority to own or lease its properties and to
carry on its business in such state. The Company has the full corporate power and authority
to execute, deliver and perform this Agreement, and this Agreement has been duly and validly
executed and delivered by the Company and constitutes the valid and legally binding
obligation of the Company, subject to general equity principles, enforceable in accordance
with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization
or similar laws affecting the rights of creditors generally.

     (b) No Violation. The Company is not in default under or in violation of its Articles
of Incorporation or Bylaws.

     (c) Title to Properties; Absence of Liens and Encumbrances. The Company owns good and
indefeasible title to the Assets, free and clear of all claims, liens, security interests,
charges, leases, encumbrances, licenses or sublicenses and other restrictions of any kind
and nature, other than the claims, liens, security interests, charges, leases, encumbrances,
licenses or sublicenses either included among the Assumed Liabilities or specifically set
forth on Schedule 3.1(c) hereto (“Permitted Encumbrances”).

     3.2 Representations and Warranties of the Buyer. The Buyer and Guarantor, jointly and
severally, represent and warrant to the Parent and the Company as follows:

     (a) Organization, Authority and Qualification of the Buyer. The Buyer is a corporation
duly organized and validly existing under the laws of the State of Louisiana and the Buyer
has full corporate power and authority to own or lease its properties and to carry on its
business in such state. The Buyer has the full corporate power and authority to execute,
deliver and perform this Agreement, and this Agreement has been duly and validly executed
and delivered by the Buyer and constitutes the valid and legally binding obligation of the
Buyer, subject to general equity principles, enforceable in accordance with its terms,
except as the same may be limited by bankruptcy, insolvency, reorganization or similar laws
affecting the rights of creditors generally.

     (b) No Violation. The Buyer is not in default under or in violation of its Articles of
Incorporation or Bylaws.

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     (c) Certain Fees. The Buyer has not employed any broker or finder or incurred any
other liability for any brokerage fees, commissions or finders’ fees in connection with the
transactions contemplated hereby.

     (d) Financial Information. Except as set forth on Schedule 3.2(d), the
financial and management reports (including, without limitation, WIP schedules) heretofore
delivered or made by Guarantor or the Company to the Parent are true and correct in all
material respects and do not omit to state any fact necessary to make any of them, in light
of the circumstances in which made, not misleading. All executed change orders have been
recorded, all agreed change orders have been executed or are listed on Schedule
3.2(d), and all checks and cash received by the Company and its affiliates have been
deposited. No assets or liabilities of Wright are on the financial statements of the
Company and to the knowledge of Buyer and Guarantor, Wright has no liabilities.

     3.3 No Warranty. The Buyer and the Guarantor acknowledge that the Guarantor, through
previous ownership and/or management of the Company, is familiar with the Assets and the operations
of the Company, and has access to any information pertaining thereto and has made such information
available to Buyer. Neither the Company nor the Parent, nor any of their respective directors,
officers, employees, agents or representatives has made, or shall be deemed to have made, and no
such person shall be liable for, or bound in any manner by, and Buyer and the Guarantor have not
relied upon and will not rely upon, any express or implied representations, warranties, guaranties,
promises or statements pertaining to the Business or Assets except as specifically provided in this
Section 3. The Buyer and the Guarantor acknowledge that in making the decision to enter
into this Agreement and to consummate the transactions contemplated hereby, they have relied solely
on the basis of their own independent investigation of the Business and the Assets and upon the
express written representations, warranties and covenants in this Agreement. Without diminishing
the scope of the express written representations, warranties and covenants of the Company and the
Parent in this Agreement and without affecting or impairing their right to rely thereon, the Buyer
and the Guarantor acknowledge that (a) they have not relied, in whole or in part, on any
information contained in documents, materials or other information provided to them by, or on
behalf of, Company or the Parent, and (b) neither Company nor the Parent is making any
representations or warranties with respect to (i) any such documents, materials or other
information, other than, in each case, as set forth in this Agreement or (ii) the value, condition,
merchantability, marketability, profitability, suitability or fitness for a particular use or
purpose of the Assets. ACCORDINGLY, THE ASSETS ARE BEING TRANSFERRED “AS IS, WHERE IS.” EXCEPT
FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 3.1 OF THIS AGREEMENT, THE
COMPANY AND PARENT MAKE ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED,
REGARDING THE ASSETS, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, OR THE ABILITY OF THE COMPANY TO ASSIGN THE ASSETS, OR OBTAIN
CONSENTS TO ANY ASSIGNMENT.

4. COVENANTS; ACTION SUBSEQUENT TO CLOSING.

     4.1 Access to Books and Records. Until the fifth anniversary of the Closing Date (and
thereafter to the extent of any matter initiated prior to the fifth anniversary until the
conclusion of

5

 

such matter), the Parent and the Company shall afford, and will cause its affiliates to afford
(subject to the provisions of applicable laws), to the Buyer, its counsel, accountants and other
authorized representatives, during normal business hours, reasonable access to the books, records
and other data of the Company and the Business with respect to periods ending on or prior to the
Closing Date to the extent that such access may be reasonably required by the Buyer to facilitate
(i) the investigation, litigation and final disposition of any claims which may have been or may be
made against the Buyer in connection with the Business or (ii) for any other reasonable business
purpose. Following the Closing, the Buyer shall prepare, on behalf of the Company, all regularly
prepared financial reports and statements for periods up to and including the Closing Date, shall
deliver such reports to the Parent on or before July 12, 2005, and shall sign a “Representation
Compliance Letter” with respect to all such financial reports and statements, and shall cooperate
with and provide assistance to the Parent and the Company in their financial and tax reporting
obligations for the periods up to and including the Closing Date.

     4.2 Mail. The Parent and the Company authorize and empower the Buyer on and after the
Closing Date to receive and open all mail received by the Buyer relating to the Business or the
Assets and to deal with the contents of such communications in any proper manner. The Parent and
the Company shall promptly deliver to the Buyer any mail or other communication received by them
after the Closing Date pertaining to the Business or the Assets. The Buyer shall promptly deliver
to the Parent any mail or other communication received by it after the Closing Date pertaining to
the Excluded Assets or Retained Liabilities, and any cash, checks or other instruments of payment
in respect of the Excluded Assets. As soon as is practicable after the Closing Date, and in no
event more than ten days thereafter, the Buyer shall mail to its customers and vendors a notice of
the sale in the form provided by the Parent, with such changes thereto as Buyer and Parent shall
agree.

     4.3 No Consent Contracts. To the extent that any contract of the Company included in
the Assets may not be assigned without the consent of any third party, and such consent is not
obtained prior to Closing (such contracts referred to as “No Consent Contracts”), this Agreement
and any assignment executed at Closing pursuant hereto shall not constitute an assignment thereof,
but to the extent permitted by law shall constitute an equitable assignment by the Company and
assumption by the Buyer of the Company’s rights and obligations under the applicable No Consent
Contract, with the Company making available to the Buyer the benefits thereof and the Buyer
performing the obligations thereunder on the Company’s behalf.

     4.4 Preparation and Filing of Certain Tax Forms. The Buyer shall prepare and timely
submit to Parent for signature and timely filing all Forms W-2, 940, 941 and 1099 with all
appropriate Governmental Entities, including without limitation any summary schedules and
transmittal forms, as well as any similar filings required by any state or local Governmental
Entity, with respect to all wages and other reportable payments or any sales tax liability for the
calendar year 2004 and for the partial year in 2005 ending on the Closing Date. As used herein,
“Governmental Entity” means any court or tribunal in any jurisdiction (domestic or foreign) or any
public, governmental or regulatory body, agency, department, commission, board, bureau or other
authority or instrumentality, domestic or foreign. The Buyer shall pay all administrative amounts
owed as a result of or otherwise related to such filings with the exception of any tax, interest,
or penalties associated with periods prior to the Closing. The Company will pay, on or before they
become due, any employment taxes withheld by it which have not been previously paid. The

6

 

Buyer, Parent and the Company shall cooperate in making all such filings and shall make
available to the others such information (subject to the provisions of applicable law) as any of
them requires to assure such filings are made on a timely and accurate basis.

     4.5 The Parent Name and Logos. As soon as practicable (but in any event within 90
days) after the Closing Date, the Buyer, at its expense, shall remove all of the Parent and its
affiliates’ names and logos from all of the Assets. Except as specifically provided in Section
1, nothing in this Agreement shall constitute a license or authorization for the Buyer to use
in any manner any name, logo or mark owned by or licensed to the Company, the Parent or their
respective affiliates which bears any reference to IES or any subsidiary of IES other than the
Company. The name “Ernest P. Breaux” and “Ernest P. Breaux Electrical” shall become the exclusive
property of the Buyer following the Closing and shall not be used by the Company, Parent or their
respective affiliates; provided that Parent will be given a reasonable period of time (not to
exceed 90 days) to change the Company’s name after the Closing Date.

     4.6 Leased Assets. At the Closing, the Buyer, at its expense, shall pay off or
refinance the leases on the vehicles listed on Schedule 4.6 attached hereto, and in
connection therewith shall obtain the release of Parent and the Company for all liability under
such vehicle leases. The Parent and Company shall cooperate with Buyer and sign all such documents
as may be necessary to assure that title to all leased vehicles is transferred to Buyer or its
designee. As soon as practicable (but in any event within 90 days) after the Closing Date, the
Buyer, at its expense, shall pay off or refinance the leases on the other assets listed on
Schedule 4.6 attached hereto, and in connection therewith shall obtain the release of
Parent and the Company for all liability under such leases.

     4.7 Chubb Bonds. Buyer agrees that at the Closing it shall execute and deliver to the
Federal Insurance Company and its subsidiary or affiliated insurers and any applicable co-sureties
(collectively, “Federal”), a General Agreement of Indemnity in the form attached as Exhibit
B, pursuant to which Buyer and Guarantor agree to (i) indemnify Federal with respect to the
performance and completion of the bonded obligations as set forth therein; and (ii) replace within
ninety (90) days the bonds identified as Cancelable Bonds therein. If, after the Closing, the
amount of Bonded Obligations is increased due to the issuance of a rider, supplement or amendment
to an existing bond, then Buyer will pay Parent $12.50 per $1,000 of increase to reimburse Parent
for the additional premium it will incur, less any refunds that may be due on account of the final
settlement of the amount of the bond. Buyer further agrees to continue to provide to Federal
monthly written reports (with a copy to the Parent) as to the progress of the completion of the
bonded jobs. Buyer and Guarantor further agree to provide, from time to time and at the request of
the Parent, a certificate or certificates certifying that the Cancelable Bonds have been replaced,
and as to such other matters concerning the performance by the Buyer of its post-closing
obligations under this Agreement as Parent shall request.

     4.8 Retained Claims. The Company shall retain liability for certain insured claims as
set forth in Schedule 1.5, (the “Retained Claims”). The Buyer and the Guarantor agree to
cooperate with the Company and the Parent in the defense of the Retained Claims and to make
available the Buyer’s personnel and facilities for that purpose. The Company shall retain as
Excluded Assets and not transfer to the Buyer all books and records associated with the Retained
Claims, as well as any reserves established on the books of the Company for the Retained Claims,
which reserves shall be paid in cash by the Buyer to the Company at Closing.

7

 

     4.9 Excluded Accounts. The Buyer and the Guarantor agree to cooperate with the
Company and the Parent in the collection of the Excluded Accounts and to make available the Buyer’s
personnel and facilities for that purpose, and to turn over to the Company or Parent all funds
received on account thereof within five days of receipt. Past due amounts under this Section 4.9
shall bear interest at the Prime Rate of Interest then in effect plus 5%. The Company shall retain
as Excluded Assets and not transfer to the Buyer all books and records associated with the Excluded
Accounts, as well as any reserves established on the books of the Company for the Excluded
Accounts. If the Parent and the Company have not collected the entire amount of $2,500,000 of the
Excluded Accounts on or before 180 days from closing, then the Buyer and Guarantor, jointly and
severally, shall be obligated to remit to the Parent within five days the amount of any shortfall
(after which the Company shall assign to the Buyer, without warranty of any kind, any uncollected
Excluded Accounts).

5. INDEMNIFICATION.

     5.1 Survival. The representations and warranties of the Company, the Parent, the
Buyer and the Guarantor contained in this Agreement, any schedules delivered by or on behalf of the
Company and the Buyer pursuant to this Agreement, or in any certificate, instrument, agreement or
other writing delivered by or on behalf of the Company, the Parent, the Buyer or the Guarantor
pursuant to this Agreement shall survive the consummation of the transactions contemplated herein;
provided that all such representations and warranties of the Company and the Parent shall be of no
further force and effect, and no claim for indemnification by the Buyer pursuant to this
Section 5 may be brought for any reason, after the expiration of eighteen (18) months from
the Closing Date (the “Survival Period”), except for the representations and warranties contained
in Section 3.1(c), which shall survive indefinitely. Anything to the contrary
notwithstanding, a claim for indemnification which is made but not resolved prior to the expiration
of the Survival Period may be pursued and resolved after such expiration.

     5.2 Indemnification by the Company.

     (a) In accordance with and subject to the provisions of this Section 5, the
Company and the Parent shall indemnify and hold harmless the Buyer from and against and in
respect of any and all loss, damage, diminution in value, liability, cost and expense,
including reasonable attorneys’ fees and amounts paid in settlement (collectively, the
“Buyer Indemnified Losses”), suffered or incurred by the Buyer by reason of, or arising out
of (i) any misrepresentation or breach of representation or warranty of the Company or the
Parent contained in this Agreement, or in any schedules delivered to the Buyer by or on
behalf of the Company or the Parent pursuant to this Agreement; (ii) the breach of any
covenant or agreement of the Company or the Parent contained in this Agreement; or (iii) the
Retained Liabilities.

     (b) The Company and the Parent shall reimburse the Buyer on demand for any Buyer
Indemnified Losses suffered by the Buyer with respect to matters other than claims, actions
or demands brought, made or instituted by a third party (“Third Party Claims”). With
respect to Third Party Claims, the Company and the Parent shall reimburse the Buyer on
demand for any Buyer Indemnified Losses suffered by the Buyer, based on the judgment of any
court of competent jurisdiction or pursuant to a bona fide compromise or settlement

8

 

in respect of any Buyer Indemnified Losses. The Company and the Parent shall have the
opportunity to defend at their expense any claim, action or demand for which the Buyer
claims indemnity against the Company or the Parent; provided that: (i) the defense is
conducted by reputable counsel; (ii) the defense is expressly assumed in writing within
twenty (20) days after written notice of the claim, action or demand is delivered to the
Company and the Parent; and (iii) counsel for the Buyer may participate at all times and in
all proceedings (formal and informal) relating to the defense, compromise and settlement of
the claim, action or demand at the expense of the Buyer.

     5.3 Indemnification by the Buyer.

     (a) In accordance with and subject to the provisions of this Section 5, the
Buyer and Guarantor shall, jointly and severally, indemnify and hold harmless the Company,
the Parent and their respective affiliates (for purposes of this Section 5, the
“Company Indemnitees”) from and against and in respect of any and all loss, damage,
diminution in value, liability, cost and expense, including reasonable attorneys’ fees and
amounts paid in settlement (collectively, the “Company Indemnified Losses”), suffered or
incurred by the Company Indemnitees by reason of, or arising out of (i) any
misrepresentation or breach of representation or warranty of the Buyer or Guarantor
contained in this Agreement, or in any schedules delivered to the Company or the Parent by
or on behalf of the Buyer or Guarantor pursuant to this Agreement; (ii) or the breach of any
covenant or agreement of the Buyer or Guarantor contained in this Agreement; (iii) the
Assumed Liabilities, including, without limitation, any liability to sureties with respect
to bonded jobs; or (iv) the operation of the Business following the Closing, including, but
not limited to, any claims made by Transferred Employees concerning COBRA, the WARN Act,
unemployment claim liability, or any similar matters as a result of the termination by Buyer
of the Transferred Employees.

     (b) The Buyer and the Guarantor, jointly and severally (the “Buyer Indemnifying
Parties”), shall reimburse the Company Indemnitees on demand for any Company Indemnified
Losses suffered by the Company Indemnitees with respect to matters other than Third Party
Claims. With respect to Third Party Claims, the Buyer Indemnifying Parties shall reimburse
the Company Indemnitees on demand for any Company Indemnified Losses suffered by the Company
Indemnitees, based on the judgment of any court of competent jurisdiction or pursuant to a
bona fide compromise or settlement in respect of any Company Indemnified Losses. The Buyer
Indemnifying Parties shall have the opportunity to defend at their expense any claim, action
or demand for which the Company Indemnitees claim indemnity against the Buyer Indemnifying
Parties; provided that: (i) the defense is conducted by reputable counsel; (ii) the defense
is expressly assumed in writing within twenty (20) days after written notice of the claim,
action or demand is delivered to the Buyer Indemnifying Parties; and (iii) counsel for the
Company and the Parent may participate at all times and in all proceedings (formal and
informal) relating to the defense, compromise and settlement of the claim, action or demand
at the expense of the Company and the Parent.

     5.4 Limitation and Payment on Claims. No claim shall be brought under this
Section 5 for breach of any representation or warranty, and no party hereto shall be
entitled to receive any payment with respect thereto, until such time as, and only to the extent
that, the aggregate amount of

9

 

such claim(s) that such party has equals or exceeds $100,000 (the “Deductible”); provided,
however, that the Deductible shall not apply to any obligations under Section 2.3.
Anything to the contrary notwithstanding, the Company and the Parent shall not be liable under this
Section 5 for Buyer Indemnified Losses in excess of the Purchase Price.

     5.5 Sole Remedy. The sole remedy of the Company, the Parent and the Buyer
Indemnifying Parties for breach of the representations and warranties set forth in Section
3 shall be pursuant to this Section 5.

6. DISPUTE RESOLUTION.

     6.1 Arbitration.

     (a) Any controversy, dispute or claim arising out of or relating in any way to this
Agreement or the other agreements contemplated by this Agreement or the transactions arising
hereunder (including the validity, interpretation or applicability of this Section
6.1) shall be settled exclusively by final and binding arbitration in Houston, Texas.
Such arbitration will apply the laws of the State of Texas and the commercial arbitration
rules of AAA to resolve the dispute, and will be administered by the AAA.

     (b) Written notice of arbitration must be given within one year after the notifying
party has knowledge of accrual of the claim on which the notice is based. If the claiming
party fails to give notice of arbitration within that time, the claim shall be deemed to be
waived and shall be barred from either arbitration or litigation.

     (c) Such arbitration shall be conducted by one independent and impartial arbitrator to
be selected by mutual agreement of the parties, if possible. If the parties fail to reach
agreement regarding appointment of an arbitrator within thirty (30) days following receipt
by one party of the other party’s notice of arbitration, the arbitrator shall be selected
from a list or lists of proposed arbitrators submitted by AAA. Unless the parties agree
otherwise, the arbitrator shall be a licensed attorney with at least ten years of experience
in the practice of law. The selection process shall be that which is set forth in the AAA
commercial arbitration rules then prevailing, except that (A) the number of preemptory
strikes shall not be limited and (B), if the parties fail to select an arbitrator from one
or more lists, AAA shall not initially have the power to make an appointment but shall
continue to submit additional lists until an arbitrator has been selected, but if no such
arbitrator is selected within sixty (60) days after the receipt of the first notice of
arbitration, the AAA shall have the power to make an appointment and shall promptly do so.
Initially, however, promptly following its receipt of a request to submit a list of proposed
arbitrators, AAA shall convene the parties in person or by telephone and attempt to
facilitate their selection of an arbitrator by agreement. If the arbitrator should die,
withdraw or otherwise become incapable of serving, a replacement shall be selected and
appointed in a like manner.

     (d) The arbitrator shall render an opinion setting forth findings of fact and
conclusions of law with the reasons therefor stated. A transcript of the evidence adduced
at the hearing shall be made and shall, upon request, be made available to either party.
The fees and expenses of the arbitrator shall be shared equally by the parties and advanced
by

10

 

them from time to time as required; provided that at the conclusion of the arbitration,
the arbitrator may award costs and expenses (including the costs of the arbitration
previously advanced and the fees and expenses of attorneys, accountants and other experts).
No pre-arbitration discovery shall be permitted, except that the arbitrator shall have the
power in his or her sole discretion, on application by either party, to order
pre-arbitration examination of the witnesses and documents that the other party intends to
introduce in its case-in-chief at the arbitration hearing. The arbitrator shall render his
or her opinion and/or award within ninety (90) days of the conclusion of the arbitration
hearing. The arbitrator shall not be empowered to award to either party any punitive
damages in connection with any dispute between them arising out of or relating in any way to
this Agreement or the other agreements contemplated hereby or the transactions arising
hereunder or thereunder, and each party hereby irrevocably waives any right to recover such
damages. The arbitration hearings and award shall be maintained in confidence.

Notwithstanding anything to the contrary provided in this Section 6.1 and without prejudice
to the above procedures, either party may apply to any court of competent jurisdiction for
temporary injunctive or other provisional judicial relief if such action is necessary to avoid
irreparable damage or to preserve the status quo until such time as the arbitrator is selected and
available to hear such party’s request for temporary relief. The award rendered by the arbitrator
shall be final and not subject to judicial review and judgment thereon may be entered in any court
of competent jurisdiction.

7. EMPLOYEE MATTERS.

     7.1 Hiring.

     (a) The Buyer shall hire (subject to each employee’s agreement), effective as of the
Closing Date, all of the employees of the Company on the day immediately prior to the
Closing Date, active or inactive (such employees being hereafter referred to as the
“Transferred Employees”) at a comparable job and at a rate of pay not less than each such
Transferred Employee’s pay as of the Closing Date (subject, in the case of certain senior
officers of the Company, to reduction of such rate of pay, as agreed by such executives).
Upon request of the Buyer, the Company shall provide the Buyer reasonable access (subject to
the provisions of applicable law) to data (including computer data) regarding the ages,
dates of hire, compensation and job description of the Transferred Employees. In the event
Buyer obtains authorizations and releases from the Transferred Employees expressly
authorizing the release of employment records and the communication and provision of
personnel information and data, then and in that event the Buyer will be given copies of all
such records.

     (b) The Buyer shall assume and be responsible for any severance costs associated with
the termination of the Transferred Employees’ employment with the Company. The Buyer shall

discharge all liabilities and claims based on occurrences or conditions first occurring or
commencing on or after the Closing Date with respect to Transferred Employees arising out of
their employment with the Buyer after the Closing Date, including, but not limited to, any
claims arising out of any employee benefit plan, policy, program or arrangement maintained
at any time by the Buyer (a “Buyer Plan” or

11

 

collectively, the “Buyer Plans”), except Buyer shall not assume any liabilities with
respect to the WARN Act or COBRA benefits for any terminations occurring prior to the
Closing Date (unless provided otherwise by law or pursuant to applicable regulations) nor
shall the Company or the Parent be liable under the WARN Act, COBRA, or state unemployment
claims law for any Transferred Employee terminated by Buyer after the Closing.

     (c) At Closing, the Buyer shall establish and make available a group medical plan for
the Transferred Employees and their dependents that is substantially similar to the group
medical plan available to the Transferred Employees immediately prior to Closing. The Buyer
shall credit the Transferred Employees with all service of the Transferred Employees
recognized under the employee benefit plans, policies, programs, or arrangements maintained
by the Parent or the Company (the “Parent Plans”) as service with the Buyer for purposes of
eligibility to participate, vesting and levels of benefits available, under all Buyer Plans.
The Buyer shall waive any coverage waiting period, pre-existing condition and
actively-at-work requirements under the Buyer Plans for the Transferred Employees and shall
provide that any expenses incurred before the Closing Date by a Transferred Employee (and
his or her dependents) during the calendar year of the Closing shall be taken into account
for purposes of satisfying the applicable deductible, coinsurance and maximum out-of-pocket
provisions, and applicable annual and/or lifetime maximum benefit limitations of the Buyer
Plans. The Buyer Plans shall not require contributions by Transferred Employees at a rate
that exceeds the rate in effect for other similarly situated employees of the Buyer. Any
reports or other information provided to Buyer by the Company or the Parent in connection
with Buyer performing his obligations under this Section 7.1(c) shall be at the sole
expense of the Buyer.

     7.2 Benefits. Except as provided in Section 7.1(b), the Buyer shall be
responsible for the payment of all amounts of wages, bonuses and other remuneration (including
discretionary benefits and bonuses) payable to the Transferred Employees of the Company accrued
with respect to periods on or prior to the Closing (except for any employment taxes actually
withheld by the Company) together with amounts payable to such employees in connection with events
occurring on or prior to the Closing. In addition, the Buyer shall be responsible for:

     (a) all vacation pay and pay for other compensated absences earned or accrued by the
Transferred Employees as of the close of business on the Closing Date to the appropriate
employee, including any related payroll burden (FICA and other pension or other employee
benefit plan contributions and employment taxes) with respect thereto to the appropriate
Governmental Entity or other person, to the extent such pay has been accrued on the books of
the Company at such close of business, based upon the remuneration of such employees
normally used in computing such pay for other compensated absences; and

     (b) amounts accrued under the Integrated Electrical Services, Inc. 401(k) Retirement
Savings Plan (the “Parent 401(k) Plan”) for the Transferred Employees as of the Closing Date
but not yet transferred to the trustee of the Parent 401(k) Plan, including without
limitation, the accrued match, accrued payroll deductions representing elective deferrals,
loan repayments and accrued profit sharing contribution, if any.

12

 

     7.3 Parent 401(k) Plan. The Company, the Parent and the Buyer agree that, as soon as
practicable after Closing, but in any event within 60 days of the Closing Date, the Buyer shall
establish a qualified 401(k) retirement savings plan (the “Buyer’s 401(k) Plan”) in accordance with
Section 414(l) of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations
promulgated thereunder. Within 60 days after the Buyer’s 401(k) Plan is established and ready to
accept transfers, the Parent shall cause the transfer to the Buyer’s 401(k) Plan of the account
balances in the Parent 401(k) Plan of the Transferred Employees. In connection with such transfer,
the following provisions shall apply:

     (a) The account balances of the Transferred Employees transferred to the Buyer’s 401(k)
Plan shall be subject to the provisions of the Buyer’s 401(k) Plan effective as of the date
of transfer; provided, however that the Buyer’s 401(k) Plan shall continue any benefits
under the Parent 401(k) Plan as required under Section 411(d)(6) of the Code; and

     (b) The outstanding loan of any Transferred Employee shall not be in default as a
result of the Transferred Employee’s termination of employment with the Parent or the
Company, but such loan shall be transferred to the Buyer’s 401(k) Plan in accordance with
(a) above.

The Buyer shall provide acceptable evidence to the Parent that the Buyer’s 401(k) Plan meets the
requirements of Section 401(a) of the Code prior to the date of such transfer. The Buyer, the
Parent and the Company agree to take whatever action, including but not limited to plan amendments
and resolutions, to effectuate the transfer of the Transferred Employee’s account balances
according to this section from the Parent 401(k) Plan to the Buyer’s 401(k) Plan.

Notwithstanding the foregoing, nothing in this Section 7 shall be deemed or construed to
give rise to any rights, claims, benefits, or causes of action to any Transferred Employee or third
party whatsoever (including any Governmental Entity).

8. MISCELLANEOUS.

     8.1 Notices. All notices and communications required or permitted hereunder shall be
in writing and may be given by (a) depositing the same in the United States mail, addressed to the
party to be notified, postage prepaid and registered or certified with return receipt requested,
(b) by delivering the same in person to an officer or agent of such party, or (c) overnight
delivery service. Such notice shall be deemed received on the date (i) on which it is actually
received if sent by overnight delivery service or hand delivery, or (ii) on the third business day
following the date on which it is mailed. For purposes of notice, the addresses of the parties
hereto shall be:

If to the Parent or the Company:

Integrated Electrical Services, Inc.

1800 West Loop South, Suite 500

Houston, Texas 77027

Attention: Chief Financial Officer

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With a copy to:

Integrated Electrical Services, Inc.

1800 West Loop South, Suite 500

Houston, Texas 77027

Attention: Chief Legal Officer

If to the Buyer or Guarantor:

Breaux Constructors, Inc.

2807 Teal Drive

New Iberia, LA 70560

Attention: Ernest P. Breaux, Jr.

With a copy to:

Dennis Doise

Perret Doise (A Prof. Law Corp.)

P. O. Box 3408

600 Jefferson Street, Suite 1200

Lafayette, Louisiana 70501

or such other address as any party hereto shall specify pursuant to this Section 8.1 from time to time.

     8.2 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, and all of which together shall constitute one and the same
instrument.

     8.3 Governing Law. The validity and effect of this Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Texas, without regard to its
conflicts of laws rules.

     8.4 Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective permitted heirs, successors and assigns.
Neither the Company, the Parent, the Buyer nor the Guarantor may assign, delegate or otherwise
transfer any of their rights or obligations under this Agreement without the written consent by
each other party hereto.

     8.5 Partial Invalidity and Severability. All rights and restrictions contained herein
may be exercised and shall be applicable and binding only to the extent that they do not violate
any applicable laws and are intended to be limited to the extent necessary to render this Agreement
legal, valid and enforceable. If any term of this Agreement, or part thereof, not essential to the
commercial purpose of this Agreement shall be held to be illegal, invalid or unenforceable by a
forum of competent jurisdiction, it is the intention of the parties that the remaining terms
hereof, or part thereof, shall constitute their agreement with respect to the subject matter
hereof, and all such remaining terms, or parts thereof, shall remain in full force and effect. To
the extent legally permissible, any illegal, invalid or unenforceable provision of this Agreement
shall be replaced by a

14

 

valid provision which will implement the commercial purpose of the illegal, invalid or
unenforceable provision.

     8.6 Waiver. Any term or condition of this Agreement may be waived at any time by the
party which is entitled to the benefit thereof, but only if such waiver is evidenced by a writing
signed by such party. No failure on the part of any party hereto to exercise, and no delay in
exercising, any right, power or remedy created hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power or remedy by either party preclude any
other or further exercise thereof or the exercise of any other right, power or remedy. No waiver
by either party hereto of any breach of or default in any term or condition of this Agreement shall
constitute a waiver of or assent to any succeeding breach of or default in the same or any other
term or condition hereof.

     8.7 Headings. The headings of particular provisions of this Agreement are inserted
for convenience only and shall not be construed as a part of this Agreement or serve as a
limitation or expansion on the scope of any term or provision of this Agreement.

     8.8 Entire Agreement; Amendments. This Agreement supersedes all prior discussions and
agreements between the parties with respect to the subject matter hereof (including without
limitation any letters of intent executed by the parties), and this Agreement contains the sole and
entire agreement between the parties with respect to the matters covered hereby. This Agreement
shall not be altered or amended except by an instrument in writing signed by or on behalf of the
party against whom enforcement is sought.

     8.9 Disclosure of Agreement Terms. Neither Buyer nor the Guarantor shall disclose the
terms and conditions of this Agreement to any person or entity without the prior written consent of
an executive officer of the Parent or as required by applicable law or an order from a court or
administrative body of competent jurisdiction (but only to the extent so required and only after
giving reasonable prior notice to the Company and the Parent and cooperating with the Company and
the Parent in any efforts to legally oppose such disclosure). The foregoing notwithstanding, the
Buyer and the Guarantor shall be permitted to make such disclosures to their accountants, lawyers,
financial institutions, lending sources, senior employees and related parties as may be
appropriate, provided that such parties are bound by the foregoing nondisclosure provisions.

     8.10 Number and Gender. Where the context requires, the use of the singular form
herein shall include the plural, the use of the plural shall include the singular, and the use of
any gender shall include any and all genders.

     8.11 Third Parties. Nothing expressed or referred to in this Agreement or any other
agreement, document or certificate entered into in connection with this Agreement will or will be
construed to give any person other than the parties to the Agreement any legal or equitable right,
remedy or claim under or with respect to this Agreement, any provision of this Agreement, or under
such other agreements, documents or certificates, except such rights as shall arise in favor of a
permitted assignee or successor under Section 8.4 or Federal under Section 4.7 and
the General Agreement of Indemnity referred to therein.

15

 

     IN WITNESS WHEREOF, this Agreement has been executed effective as of the date set forth above.

	 	 	 	 	 
	 	PARENT:

INTEGRATED ELECTRICAL SERVICES, INC.

 	 
	 	By:  	/s/ Curt L. Warnock
 	 
	 	Name:   Curt L. Warnock 	 
	 	Title:   Senior Vice President/General Counsel 	 

	 	 	 	 	 
	 	COMPANY:

ERNEST P. BREAUX ELECTRICAL, INC.

 	 
	 	By:  	/s/ Curt L. Warnock
 	 
	 	Name:   Curt L. Warnock 	 
	 	Title:   Senior Vice President/General Counsel 	 
	 

	 	 	 	 	 
	 	BUYER:

BREAUX CONSTRUCTORS, INC.

 	 
	 	By:  	/s/
Ernest P. Breaux, Jr.
 	 
	 	 	Ernest P. Breaux, Jr., Authorized Representative	 

	 	 	 	 	 
	 	GUARANTOR:

	 
	 
	 	/s/
Ernest P. Breaux, Jr.

	 
	 	

Ernest P. Breaux, Jr.
	 
	 	 	 
	 	 	 
	 	 	 
	 

16

 

EXHIBIT A

BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT

     This BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT (“Bill of Sale”) is entered into as of
the ___ day of ___ 2005, by and among INTEGRATED ELECTRICAL SERVICES, INC., a Delaware
corporation (the “Parent”), ERNEST P. BREAUX ELECTRICAL, INC., a Delaware corporation (the
“Company”) and BREAUX CONSTRUCTORS, INC., a Louisiana corporation (the “Buyer”).

RECITALS

     WHEREAS, pursuant to the terms of that certain Asset Purchase Agreement (the “Purchase
Agreement”) dated as of even date herewith by and among the Buyer, the Parent, the Company, and
Ernest P. Breaux, Jr., individual, the Company and the Parent agreed to convey the Assets to the
Buyer and the Buyer agreed to assume the Assumed Liabilities. In order to evidence such conveyance
and assumption, the parties desire to enter into this Bill of Sale.

     WHEREAS, all capitalized terms used herein but not defined herein shall have the meanings
ascribed to them in the Purchase Agreement.

ASSIGNMENT

     NOW, THEREFORE, for and in consideration of the mutual covenants, agreements, and benefits
contained herein, the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the Parent do hereby
BARGAIN, GRANT, SELL, CONVEY, TRANSFER, DELIVER and ASSIGN unto Buyer all the Assets.

     The Assets are hereby conveyed free and clear of all encumbrances other than the Permitted
Encumbrances.

     TO HAVE AND TO HOLD the Assets unto the Buyer and its successors and assigns forever; and the
Company and the Parent do hereby bind themselves and their successors and assigns to WARRANT AND
FOREVER DEFEND title to the Assets in accordance with the terms and provisions of the Purchase
Agreement.

     The Buyer, upon execution below, accepts this Bill of Sale, and to the extent provided for in
the Purchase Agreement, hereby assumes the Assumed Liabilities, but no others.

     This assignment shall be binding upon and shall inure to the benefit of the parties hereto and
their respective permitted successors and assigns.

 

 

     This Bill of Sale may be executed in any number of counterparts, and each counterpart shall
for all purposes be deemed to be an original.

     This Bill of Sale is subject to all terms and conditions contained in the Purchase Agreement
and nothing herein shall be deemed to alter, amend, or supersede the Purchase Agreement, the terms
of which shall in all respects be controlling.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Bill of Sale effective as of the
date set forth above.

	 	 	 	 	 
	 	 	PARENT:
	 
	 	 	 	 
	 	 	INTEGRATED ELECTRICAL SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 
	 

	 	 	 	 
	 

	 	Title:	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	ERNEST P. BREAUX
ELECTRICAL, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 
	 

	 	 	 	 
	 

	 	Title:	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	BUYER:
	 
	 	 	 	 
	 	 	BREAUX CONSTRUCTORS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Ernest P. Breaux, Jr., Authorized
Representative

 

 

EXHIBIT B

FORM OF GENERAL AGREEMENT OF INDEMNITY

CHUBB GROUP OF INSURANCE
COMPANIES

	 	 	 
	

	 	15 Mountain View Road, P.O. Box 1615, Warren, New Jersey 07061-1615

 

GENERAL AGREEMENT OF INDEMNITY

     WHEREAS, the undersigned (hereinafter individually and collectively called “Indemnitor”)
desires FEDERAL INSURANCE COMPANY or any of its subsidiary or affiliated insurers (hereinafter
called “Company”) to execute bonds including undertakings and other like obligations (hereinafter
referred to as bond or bonds) on its behalf and also desires the execution of bonds on behalf of
individuals, partnerships, corporations, limited liability companies or any other similarly
unincorporated associations of members (hereinafter called “Affiliates”).

     WHEREAS, from time to time the Indemnitor may be a participant in joint ventures with others,
and bonds will be required on behalf of the Indemnitor along with the other participants in such
joint ventures.

     WHEREAS, Indemnitor is the successor-in-interest to ERNEST P. BREAUX ELECTRICAL, INC., a
Delaware corporation (along with any other affiliate or related entity whose assets have been or
will be assigned to Indemnitor hereinafter individually and collectively called “Seller”) as the
assignee of all bonded contract obligations, which Indemnitor has expressly assumed without
reservation.

     NOW, THEREFORE, in consideration of the Company executing said bond or bonds, and the
undersigned Indemnitor hereby requests the execution thereof, and in consideration of the consent
of Company to the assignment and assumption of the bonded obligations formerly undertaken by the
Seller, as well as the sum of One Dollar paid to the Indemnitor by said Company, the receipt
whereof is hereby acknowledged, the Indemnitor, being benefited by the execution and delivery of
said bond or bonds, including, without limitation all Bonds previously issued prior to the date of
this Agreement for the Seller, the bonded obligations of which have been expressly assumed without
reservation by Indemnitor(s) and as to which Indemnitor(s) have agreed, and do hereby agree, to
assume full responsibility for work in place as well as the prompt and proper performance and
completion of all such bonded obligations, including, without limitation those bonded obligations
listed on Exhibit A attached hereto, hereby agrees that it will at all times jointly and severally
indemnify and save harmless said Company from and against any and all loss, cost, damage or
expense, including court costs and attorneys’ fees, which it shall at any time incur by reason of
its execution and/or delivery of said bond or bonds or its payment

 

 

of any claim or liability thereunder and will place the said Company in funds to meet all its
liability under said bond or bonds promptly on request and before it may be required to make any
payment thereunder and that the voucher or other evidence of payment by said Company of any such
loss, cost, damage, expense, claim, or liability shall be prima facie evidence of the fact and
amount of the Indemnitor’s liability to said Company under this Agreement.

     IT IS UNDERSTOOD AND AGREED that with respect to any bonds on behalf of the Indemnitor
participating in a joint venture that if specific application is filed with the Company for such
bonds the liability of the Indemnitor to the Company with respect to such joint venture bonds shall
be limited to the amount expressly set forth in said application.

     IT IS UNDERSTOOD AND AGREED that all of the terms, provisions, and conditions of this
Agreement shall be extended to and for the benefit not only of the Company either as a direct
writing company or as a co-surety or reinsurer but also for the benefit of any surety or insurance
company or companies with which the Company may participate as a co-surety or reinsurer and also
for the benefit of any other company which may execute any bond or bonds at the request of the
Company on behalf of the Indemnitor.

     IT IS UNDERSTOOD AND AGREED that this Agreement is in addition to all other rights and
agreements which Company may have or be a party to in connection with Bonds previously issued for
the benefit of Seller and that the assumption of responsibility therefor by Indemnitors as herein
provided shall not constitute a waiver or release by Company of any rights Company may have to seek
and recover indemnity from third parties having liability in connection with the issuance of such
Bonds including, but not limited to, the obligations and liabilities of Integrated Electrical
Services, Inc., Ernest P. Breaux Electrical, Inc., or their affiliates.

     IT IS UNDERSTOOD AND AGREED that, notwithstanding anything herein to the contrary,
Indemnitor’s agreements, covenants, and all obligations under this General Agreement of Indemnity
is limited to (1) the obligations assumed by Indemnitor (the “Assumed Obligations”) under the Asset
Purchase Agreement (“APA”) by and among Integrated Electrical Services, Inc. (“IES”), Ernest P.
Breaux Electrical, Inc., Breaux Constructors, Inc., and Ernest P. Breaux, Jr., and (2) Company’s
obligations under the bonds listed on Exhibit A attached hereto. Furthermore, Indemnitor has
acknowledged and agreed that Indemnitor’s obligation to perform or otherwise discharge the Assumed
Obligations is secured by certain assets acquired by Indemnitor under the APA (the “Collateral”),
said Collateral acquired subject to that certain Underwriting, Continuing Indemnity, and Security
Agreement dated as of January 14, 2005, executed by and among Company, IES, and certain IES
affiliates, including Ernest P. Breaux Electrical, Inc.

     IT IS UNDERSTOOD AND AGREED, that Indemnitor will replace Bond No. 81889394, Bond No.
81878204, Bond No. 81620392, Bond No. 81878231, and Bond No. 81620644, each identified on Exhibit A
(the “Cancelable Bonds”) no later than ninety (90) days from the execution of this Agreement, and
hereby acknowledges and consents that the Cancelable Bonds will be canceled upon the earlier of (i)
the date of issuance of replacement bonds or (ii) the date upon which Federal issues notice of
cancellation in compliance with the terms the Cancelable Bond(s) to be canceled thereby.
Indemnitor’s obligation under this Agreement with respect to

 

 

any bond or bonds canceled or replaced as contemplated herein will remain with respect to such
liability accruing under said bond or bonds.

     IT IS FURTHER UNDERSTOOD AND AGREED that the Indemnitor, its heirs, successors and assigns are
jointly and severally bound by the foregoing conditions of this Agreement.

     IN
WITNESS WHEREOF the Indemnitor has signed this instrument this, the ___ day of
_____, 2005.

	 	 	 	 	 	 	 
	WITNESS:	 	BREAUX CONSTRUCTORS, INC., a
Louisiana corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	WITNESS:	 	ERNEST P. BREAUX, JR.
	 
	 	 	 	 	 	 
	 	 	 	 	 

CORPORATE ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF
	 	 	 	 
	 

	 	 	 	 
	COUNTY OF
	 	 	 	 
	 

	 	 	 	 

     On this _____day of ___, 2005, before me personally came
_____to me known, who, being by me duly sworn, did depose and say that he resides
in the State of _____; and that he is the _____of BREAUX CONSTRUCTORS,
INC., a Louisiana corporation, the corporation described in and which executed the foregoing
instrument; that he knows the corporate seal of said Corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by order and authority of the Board of
Directors of said Corporation; and that he signed his name thereto by like order and authority.

	 	 	 	 	 
	(SEAL)
	 	 	 	 
	 
	 	 	 	 
	 

	 	NOTARY PUBLIC	 	 
	 
	 	 	 	 
	My commission expires:	 	 
	 
	 	 	 	 
	 	 	 

 

 

INDIVIDUAL ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF
	 	 	 	 
	 

	 	 
	 	 
	COUNTY OF
	 	 	 	 
	 

	 	 	 	 

     On this _____day of _____, 2005, before me personally came ERNEST P.
BREAUX, JR., to me known, who, being by me duly sworn, did depose and say that he resides in the
State of Idaho; and that he executed the foregoing instrument for the purposes therein contained.

	 	 	 	 	 
	(SEAL)
	 	 	 	 
	 

	 	 
	 	 
	 

	 	NOTARY PUBLIC	 	 
	 
	 	 	 	 
	My commission expires:

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