Document:

Second Amendment to Employment Agreement

 

Exhibit 10.36

AMENDMENT TO EMPLOYMENT AGREEMENT

     This AGREEMENT is entered into as of December 19, 2005 (the “Effective Date”), by and between
MASTEC, INC. (the “Company”) and AUSTIN J. SHANFELTER (the “Executive”).

     WHEREAS, the Company and Executive entered into that certain Employment Agreement — Extension
(the “Extended Agreement”);

     WHEREAS, the Company and Executive desire to amend the Extended Agreement in order to comply
with the recently promulgated deferred compensation rules and to make certain revisions to the
benefits provided to the Executive under Section 9 of the Extended Agreement in the event of a
Change in Control of the Company.

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

     1. Section 9 of the Extended Agreement is hereby amended to read as follows:

     “9. Change of Control; Certain Consequences: If, prior to the End-of-Term Date, there
occurs a Change in Control (as defined in Annex A), (i) Executive will receive as
compensation an amount equal to three times his Base Salary, and (ii) the Company shall prepay to
the Executive his Consulting Fees under Section 5 hereof, which amounts shall be paid as of the
effective date of the Change of Control. Notwithstanding Section 11, if the aggregate of all
“parachute payments” (as such term is used under IRS Code Section 280G) payable to the Executive
(whether pursuant to this Agreement or otherwise) exceeds 300% of the “base amount” (as such term
is used under IRS Code Section 280G) by 10% or less of 300% of the “base amount”, then the
parachute payment shall be reduced to 2.99 times such base amount. Any amounts payable to the
Executive pursuant to this Section 9 shall be applied against and reduce, but not below zero, any
amounts otherwise payable on account of termination of the Executive’s employment pursuant to
Section 7, 8 or 10 hereof, and any Consulting Fees payable to the Executive pursuant to Section 5
hereof.”

     2. A new Section 20 is hereby added to the Extended Agreement to read as follows:

     “20. Compliance with Section 409A: To the extent the Executive would otherwise be
entitled to any payment (whether pursuant to this Agreement or otherwise) during the six months
beginning on termination of employment, that would be subject to the additional tax imposed under
Section 409A of the Code (“Section 409A”), (i) the payment will not be made and (ii) the payment,
with interest at the rate being paid by the Company on its senior credit facility (the “Senior
Credit Interest Rate”) determined as of

 

 

the date of termination of the Executive’s employment, will be paid to the Executive on the earlier
of the six-month anniversary of the Executive’s date of termination of employment or the
Executive’s death or disability (within the meaning of Section 409A). Similarly, to the extent the
Executive otherwise would be entitled to any benefit (other than a payment) during the six months
beginning on termination of employment that would be subject to the Section 409A additional tax,
the benefit will be delayed and will begin being provided (together, if applicable, with an
adjustment to compensate the Executive for the delay) on the earlier of the six-month anniversary
of the date of termination, death or disability (within the meaning of Section 409A). It is the
Company’s intention that the benefits and rights to which the Executive could become entitled in
connection with termination of employment comply with Section 409A. If the Executive or the
Company believes, at any time, that any of such benefit or right does not comply, it will promptly
advise the other and will negotiate reasonably and in good faith to amend the terms of such
arrangement such that it complies.”

     3. In all other respects, the Extended Agreement shall remain unchanged by this Amendment.

     EXECUTED as of the date first above written.

MASTEC, INC.

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

 

EXECUTIVE

			
	By:	 	
 
Austin J. Shanfelter1997 Annual Incentive Compensation Plan

 

Exhibit 10.36

MASTEC, INC.

1997 ANNUAL INCENTIVE COMPENSATION PLAN

     1. PURPOSE. The MasTec, Inc. 1997 Annual Incentive Compensation Plan (the
“Plan”) is intended to increase the profitability of Mastec, Inc., a Delaware
corporation (the “Company”), and its Subsidiaries (as hereinafter defined) by
providing the opportunity for key executives to earn incentive payment for
outstanding achievement and performance. The Plan has the further purpose of
fulfilling the Company’s objective of offering a fully competitive total
compensation package to its key employees, thus enabling the Company to attract
and retain executives of the highest caliber and ability.

     2. DEFINITIONS. For purposes of the Plan, the following terms shall be
defined as follows:

     “AWARD” means the right of a Participant to receive a payment under the
Plan subject to the terms and conditions hereof, including satisfaction of the
Participant’s Performance Objectives during the applicable Performance Period.

     “BOARD” means the Board of Directors of the Company.

     “CEO” means the Chief Executive Officer of the Company.

     “CODE” means the Internal Revenue Code of 1986, as amended, and the
applicable rulings and regulations thereunder.

     “COMMITTEE” means the Special Committee of the Board, any successor
committee thereto or any other Committee appointed by the Board to administer
the Plan.

     “COMMON STOCK” means the Common Stock, no par value, of the Company.

     “COVERED EMPLOYEE” means, for a given fiscal performance period of the
Company, any Participant designated by the Committee by not later than 90 days
following the start of such period as a Participant (or such other time as may
be required or permitted by Section 162(m) of the Code) whose compensation for
such period may be subject to the limit on deductible compensation imposed by
Section 162(m) of the Code.

 

 

     “DISABILITY” means eligibility for disability benefits under the terms of
any of the Company’s disability plans in effect at the time the Participant
becomes disabled.

     “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended, and
the applicable filings and regulations thereunder.

     “FAIR MARKET VALUE” means, in the event the Common Stock is traded on a
recognized securities exchange or quoted by the National Association of
Securities Dealers Automated Quotations on National Market Issues, an amount
equal to the average of the high and low sales prices of the Common Stock on
such exchange or such quotation on the date set for valuation or, if no sales of
Common Stock were made on said exchange or so quoted on that date, the average
of the high and low prices of the Common Stock on the next preceding day on
which sales were made on such exchange or quotations; or, if the Common Stock is
not so traded or quoted, that value determined, in its sole discretion, by the
Committee.

     “FINAL AWARD” means the amount determined pursuant to Section 10 as payable
to a Participant under the Plan in respect of a Performance Period.

     “MANAGEMENT” means the Chairman of the Board and the CEO, and such other
member of the Company’s management as they may from time to time designate to
take action with respect to the Plan.

     “PARTICIPANT” means a key executive of the Company whose decisions and
actions significantly affect the Company’s growth and profitability and who
receives an Award opportunity under the Plan as determined by the Committee.

     “PERFORMANCE OBJECTIVES” means significant financial objectives to be
achieved by the Participant during the Performance Period and upon which the
payment of the Award shall be based.

     “PERFORMANCE PERIOD” means each calendar year or multi-year cycle as
determined by the Committee, except that the first performance period shall be
the nine month period from April 1, 1997 to December 31, 1997.

     “PERSON” means any person, entity or “group” within the meaning of Section
13(d)(3) or Section 14(d)(2) of the Exchange Act.

     “RETIREMENT” means retirement at normal retirement age.

     “SUBSIDIARY” means (i) any corporation which is a “subsidiary corporation”
within the meaning of Section 424(q of the Code with respect to the Company or
(ii) any other corporation or other entity in which the Company, directly or
indirectly, has an equity or similar interest and which the Committee designates
as a Subsidiary for the purposes of the Plan.

     “TARGET AWARD” means the amount established pursuant to Section 7 with
respect to a Participant.

     3. EFFECTIVE DATE. Subject to stockholder approval at the Company’s 1997

 

 

Annual Meeting of Stockholders, the Plan shall be effective as of April 1, 1997
(the “Effective Date”). No Award shall be made with respect to Performance
Periods ending after December 31, 2006, unless the Plan is extended by the
Board.

     4. ADMINISTRATION.

     (a) POWER AND AUTHORITY OF THE COMMITTEE. The Plan shall be administered
by the Committee, which shall have full power and authority, subject to the
express provisions hereof:

          (i) to select Participants,

          (ii) to make Awards in accordance with the Plan,

          (iii) to determine the amount of each Target Award,

          (iv) to determine the terms and conditions of each Award,
including, without imitation, those related to vesting, forfeiture and payment,
and the effect, if any, of a Participant’s termination of employment with the
Company on the Award made to such Participant, and including the authority to
amend the terms and conditions of an Award after the making thereof to a
Participant in a manner that is not prejudicial to the rights of such
Participant in such Award and not otherwise prohibited by the Plan,

          (v) to determine Performance Objectives applicable to each Award,

          (vi) to determine the degree of the attainment of the Performance
Objectives,

          (vii) to determine the amount of Final Awards and the form of
payments to Participants,

          (viii) to prescribe, amend and rescind rules and procedures
relating to the Plan,

          (ix) to vary the terms of Awards to take account of tax,
securities law and other regulatory requirements of foreign jurisdictions,

          (x) subject to the provisions of the Plan and subject to such
additional limitations and restrictions as the Committee may impose, to delegate
to one or more officers of the Company some or all of its authority under the
Plan, and

          (xi) to make all other determinations and to formulate such
procedures as may be necessary or advisable for the administration of the Plan.
In reaching its decisions, the Committee shall consider recommendations made by
Management. In addition, the Committee is authorized to use the services of
independent auditors to determine the level of achievement of Performance
Objectives, subject to the certification of the Committee with respect to the
achievement of the Performance Objectives for the Covered Employees.

 

 

     (b) PLAN CONSTRUCTION AND INTERPRETATION. The Committee shall have all
power and authority, subject to the express provisions hereof, to construe and
interpret the Plan.

     (c) DETERMINATIONS OF COMMITTEE FINAL AND BINDING. All determinations by
the Committee in carrying out and administering the Plan and in construing and
interpreting the Plan shall be final, binding and conclusive for all purposes
and upon all persons interested herein.

     (d) LIABILITY OF COMMITTEE. No member of the Committee shall be liable
for anything whatsoever in connection with the administration of the Plan except
such person’s own willful misconduct. Under no circumstances shall any member of
the Committee be liable for any act or omission of any other member of the
Committee. In the performance of its functions with respect to the Plan, the
Committee shall be entitled to rely upon information and advice furnished by the
Company’s officers, the Company’s accountants, the Company’s counsel and any
other party the Committee deems necessary, and no member of the Committee shall
be liable for any action taken or not taken in reliance upon any such advice.

     5. ELIGIBILITY. The Committee shall select Participants based on
recommendations of Management. Selection as a Participant shall be limited to
those officers or other key employees or consultants of the Company or a
Subsidiary who, by virtue of their positions, have a demonstrable impact on
either the profitability of a major business unit of the Company, or upon the
overall profitability of the Company. No Committee member shall be eligible to
be a Participant while serving as a Committee member, but a director of the
Company who is also a full-time employee, but not a member of the Committee,
shall be eligible to be a Participant. No Participant or employee of the Company
shall have any right to be awarded an Award or to receive an actual payment
under the Plan.

     6. MAXIMUM AMOUNT OF AWARD PER PARTICIPANT. The maximum Award that may be
earned by any Participant in respect of any Performance Period shall equal
$4,000,000.

     7. TARGET AWARDS. The Target Award for each Participant shall be determined
by the Committee at or near the start of the applicable Performance Period based
upon Management’s recommendation. The Target Award for any Participant shall not
exceed the amount specified in Section 6 as the maximum Award that may be earned
by any Participant. For Covered Employees, the Target Award, the related award
schedule and the Performance Objective(s) shall be established within 90 days of
the beginning of the Performance Period (or such other time as may be required
or permitted by Section 162(m) of the Code). Each individual Target Award shall
be based on a percentage of salary, a percentage of the performance objective
achieved, or a stated dollar amount, but Final Awards may be paid in cash, in
shares of Common Stock (valued at their Fair Market Value as of the date of
payment) or in a combination of cash and shares as the Committee shall
determine.

 

 

     8. PERFORMANCE OBJECTIVES. Performance Objectives for each Participant
shall be established as provided in this section at levels so that their
achievement reflects commendable performance by the Participant. The Performance
Objectives shall be expressed in terms of one or more of the following
performance measures established by the Committee for each Performance Period:
(i) revenue, (ii) net income, (iii) operating income , (iv) pre-tax income, (v)
earnings before interest, taxes depreciation and amortization (“EBITDA”), (vi) return on equity or
assets, (vii) stock price, (viii) earnings per share, or (ix) economic value added to the Company,
each of which may be established on a Company-wide basis or established with
respect to one or more operating units, divisions, acquired businesses, minority
investment, partnerships or joint ventures. At the same time, the Committee may
establish a “range” of achievement of Performance Objectives. The
Committee shall have the authority to alter or adjust Performance Objectives
during the course of a Performance Period, or to alter or adjust the financial
results otherwise reported or achieved by the Company during such Performance
Period, if it is deemed appropriate to do so, except with respect to the Covered
Employees who are subject to the terms of the last sentence of Section 10.

     9. NOTICE OF TARGET AWARD. Except as may otherwise be determined by the
Committee, a Participant shall be notified in writing on or near the start of
the Performance Period of the amount of the Participant’s Target Award and the
Performance Objectives.

     10. FINAL AWARD DETERMINATION. As soon as practicable following the
completion of each Performance Period, the level of achievement of Performance
Objectives for each Participant and the amount of the Final Award payment shall
be determined by Management. With respect to Covered Employees, the Committee
shall review such determination and shall certify in writing as to such level of
achievement. Except as provided below with respect to Covered Employees, the
Committee in its sole discretion has the authority to effect adjustments from
time to time in connection with determining the degree of achievement of the
Performance Objectives for the Company or a business unit of the Company for the
applicable year in question, and to make any other determinations, as it deems
equitable, fair or advisable for the purpose of ascertaining the amount of any
payments under this Plan. With respect to Covered Employees, the Committee shall
have no discretion to increase, but may decrease, the amount of the Final Award
based on the range of achievement of the Performance Objectives established
under Sections 7 and 8 hereof.

     11. PAYMENT OF FINAL AWARDS. Final Award payments shall be made, less
required tax and other applicable withholdings, as soon as practicable after the
determination and final approval of such payments as provided in Section 10.
Final Awards shall be paid in cash, in shares of Common Stock (valued at their
Fair Market Value as of the date of payment) or in a combination of cash and
shares as the Committee shall determine. With respect to Final Awards that are
paid in Common Stock, the Committee may establish at or prior to the time of
payment such restrictions on the transferability and/or vesting requirements, if
any, as the Committee considers appropriate.

     12. SHARES OF STOCK SUBJECT TO THE PLAN. Subject to adjustment as provided

 

 

in Section 17(b) hereof, the number of shares of Common Stock that may be issued
under the Plan in payment of Final Awards shall not exceed, in the aggregate,
1,000,000 shares. Such shares may be either authorized but unissued shares,
treasury shares or any combination thereof.

     13. TERMINATION OF EMPLOYMENT. If a Participant’s employment with the
Company terminates during a Performance Period because of death, Disability or
Retirement or with the approval of the Committee, the Participant (or the
Participant’s designated beneficiary or estate in the absence of a surviving
designated beneficiary) may receive a pro rata payment based on the number of
full months during which the Participant was employed during the Performance
Period and the degree to which during such Performance Period the Performance
Objectives were judged to have been achieved, subject to the requirements of
Section 162(m) of the Code. A Participant whose employment with the Company
terminates during a Performance Period for any reason other than death,
Disability or Retirement (including without limitation by voluntary resignation
or termination by the Company with or without cause) shall not be eligible for
any payment for such Performance Period. A leave of absence, if approved by the
Committee, shall not be deemed to be a termination of employment for purposes of
this Plan, and may warrant the payment of a full or pro rata Award as determined
by the Committee.

     14. TRANSFER. If a Participant is transferred within the Company during a
Performance Period to a position that is not considered as eligible for
participation in the Plan, the Committee may, in its sole and absolute discretion, authorize a pro
rata payment based on the number of
full months during the Performance Period during which the Participant was
employed and the degree to which during such Performance Period the Performance
Objectives were judged to have been achieved.

     15. AMENDMENT, SUSPENSION OR TERMINATION OF PLAN. The Board or Committee
may at any time and from time to time terminate, modify, suspend, or amend the
Plan in whole or in part; PROVIDED, HOWEVER, that without stockholder approval,
the Board or Committee shall not change (i) the performance measures listed in
Section 8 with respect to Covered Employees, (ii) the individuals or class of
individuals eligible to participate in the Plan, or (iii) the maximum amount
payable to a Participant under the Plan. No termination, modification,
suspension or amendment of the Plan shall, without the consent of a Participant
to whom any Awards shall previously have been awarded, adversely affect his or
her rights under such Awards.

     16. NON-TRANSFERABILITY. No Award made under the Plan or any rights or
interests therein shall be sold, transferred, assigned, pledged or otherwise
encumbered or disposed of except by will or by the laws of descent and
distribution or pursuant to a “qualified domestic relations order” (“QDRO”) as
defined in the Code or Title I of the Employee Retirement Income Security Act of
1974, as amended, and the rules and regulations thereunder. In the event of a
Participant’s death, the payment of the Award as provided in the Plan, if any,
shall be made to the Participant’s designated beneficiary, or estate in the
absence of a surviving beneficiary.

 

 

     17. RECAPITALIZATION OR REORGANIZATION.

     (a) AUTHORITY OF THE COMPANY AND STOCKHOLDERS. The existence of the
Plan and the Awards granted hereunder shall not affect or restrict in any way
the right or power of the Company or the stockholders of the Company to make or
authorize any adjustment, recapitalization, reorganization or other change in
the Company’s capital structure or its business, any merger or consolidation of
the Company, any issue of stock or of options, warrants or rights to purchase
stock or of bonds, debentures, preferred or prior preference stocks whose rights
are superior to or affect the Common Stock or the rights thereof or which are
convertible into or exchangeable for Common Stock, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or Proceeding, whether of a
similar character or otherwise.

     (b) CHANGE IN CAPITALIZATION. Notwithstanding any provision of the
Plan, in the event of any change in the outstanding Common Stock by reason of a
stock dividend, recapitalization, reorganization, merger, consolidation, stock
split, combination or exchange of shares or any other significant corporate
event affecting the Common Stock, the Committee, in its discretion, may make (i)
such proportionate adjustments it considers appropriate (in the form determined
by the Committee in its sole discretion) to prevent diminution or enlargement of
the rights of Participants under the Plan with respect to the aggregate number
of shares of Common Stock for which Awards in respect thereof may be granted
under the Plan, the number of shares of Common Stock covered by each outstanding
Award, and the exercise or Award prices in respect thereof and/or (ii) such
other adjustments as it deems appropriate. The Committee’s determination as to
what, if any, adjustment shall be made shall be filial and binding on the
Company and all Participants.

     18. MISCELLANEOUS.

     (a) TAX WITHHOLDING. No later than the date as of which an amount first
becomes includable in the gross income of the Participant for applicable income
tax purposes with respect to any Award under the Plan, the Participant shall pay
to the Company or make arrangements satisfactory to the Committee regarding the
payment of any federal, state or local taxes of any kind required by law to be
withheld with respect to such amount. Unless otherwise determined by the
Committee, in accordance with rules and procedures established by the Committee,
the minimum required withholding obligations may be settled with Common Stock,
including Common Stock that is part of the Award that gives rise to the
withholding requirement. The obligations of the Company under the Plan shall be
conditioned upon such payment or arrangements and the Company shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the Participant.

     (b) NO RIGHT TO AWARDS OR EMPLOYMENT. No Participant shall have any
claim or right to receive Awards under the Plan. Nothing in the Plan shall
confer upon any employee of the Company or any Subsidiary any right to continued
employment with the Company or any Subsidiary, as the case may be, or interfere

 

 

in any way with the right of the Company or a Subsidiary to terminate the
employment of any of its employees at any time, with or without cause.

     (c) UNFUNDED PLAN. The Plan is intended to constitute an unfunded plan
for incentive compensation. With respect to any payments not yet made to a
Participant by the Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general creditor of the
Company. In its sole discretion, the Committee may authorize the creation of
this or other arrangement to meet the obligations created under the Plan to
deliver Common Stock or payments in lieu thereof with respect to Awards
hereunder.

     (d) SECURITIES LAW RESTRICTIONS. The Committee may require each
Participant acquiring shares of Common Stock pursuant to an Award to represent
to and agree with the Company in writing that such Participant is acquiring the
shares for investment and not with a view to the distribution thereof. All
certificates for shares of Common Stock delivered under the Plan shall be
subject to such stock-transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations, and other requirements of the
Securities and Exchange Commission, the New York Stock Exchange or any other
exchange upon which the Common Stock is then listed, and any applicable federal
or state securities law, and the Committee may cause a legend or legends to be
put on any such certificates to make appropriate reference to such restrictions.
No shares of Common Stock shall be issued hereunder unless the Company shall
have determined that such issuance is in compliance with, or pursuant to an
exemption from, all applicable federal and state securities laws.

     (e) EXPENSES. The costs and expenses incurred in administering the
Plan, including any Committee fees, charges by the Company’s independent
auditors, or other costs, shall be borne by the Company.

     (f) APPLICABLE LAW. Except as to matters of federal law, the Plan and
all actions taken thereunder shall be governed by and construed in accordance
with the laws of the State of Delaware without giving effect to conflicts of law
principles.

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