Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is entered into between Quanta Services,
Inc. (“Quanta”) and John R. Colson (“Employee”) on this 24th day of
March, 2011, but effective as of May 19, 2011 (the “Effective Date”).

I. RECITALS

     As of the date of this Agreement, the Employer Group (as defined below) is engaged primarily
in the business of specialty contracting for customers in the electric power, natural gas, oil,
pipeline, renewable energies and telecommunications industries, as well as for transportation,
commercial and industrial customers. As such, the Employer Group has developed and continues to
develop and use certain trade secrets and other Proprietary and Confidential Information, as
hereinafter defined. The Employer Group has spent a substantial amount of time, effort and money,
and will continue to do so in the future, to develop or acquire such Proprietary and Confidential
Information and promote and increase its good will. Employer (as defined below) and Employee
acknowledge and agree that Proprietary and Confidential Information is an asset of particular and
immeasurable value to the Employer Group.

     Pursuant to this Agreement, Employee shall be employed by Employer in a confidential and
fiduciary relationship and such Proprietary and Confidential Information will necessarily be
provided to, communicated to, or acquired by Employee by virtue of his employment with Employer.

     Based upon the above, Employer desires to retain the services of Employee on its own behalf,
as well as on the behalf of its subsidiaries and affiliated companies and, in so doing, protect its
Proprietary and Confidential Information subject to the terms and conditions set forth herein.

II. DEFINITIONS

     A. For purposes of this Agreement, “Employer” shall mean Quanta or any other
affiliated entity that is deemed to be the employer of Employee, and “Employer Group” shall
mean Quanta and its predecessors, designees, successors, and past, present and future operating
companies, divisions, subsidiaries and/or affiliates.

     B. As used in this Agreement, “Proprietary and Confidential Information” means any and
all non-public information or data in any form or medium, tangible or intangible, which has
commercial value and which the Employer Group possesses or to which the Employer Group has rights.
Proprietary and Confidential Information includes, by way of example and without limitation,
information concerning the Employer Group’s specific manner of doing business, including, but not
limited to, the processes, methods or techniques utilized by the Employer Group, the Employer
Group’s customers, marketing strategies and plans, pricing information, sources of supply and
material specifications, the Employer Group’s computer programs, system documentation, special
hardware, related software development, and the Employer Group’s business models, manuals,
formulations, equipment, compositions, configurations, know-how, ideas, improvements and
inventions.

 

 

     Proprietary and Confidential Information also includes information developed by Employee
during his course of employment with Employer or otherwise relating to Company-Related Inventions
and Developments, as hereinafter defined, as well as other information to which he may be given
access to in connection with his employment.

     C. As used in this Agreement, “Inventions and Developments” means any and all
inventions, developments, creative works and useful ideas of any description whatsoever, whether or
not patentable. Inventions and Developments include, by way of example and without limitation,
discoveries and improvements that consist of or relate to any form of Proprietary and Confidential
Information.

     D. As used in this Agreement, “Company-Related Inventions and Developments” means all
Inventions and Developments that: (a) relate at the time of conception or development to the actual
business of the Employer Group or to its actual research and development or to business or research
and development that is the subject of active planning at the time; (b) result from or relate to
any work performed for Employer, whether or not during normal business hours; (c) are developed on
Employer’s time; or (d) are developed through the use of the Employer Group’s Proprietary and
Confidential Information, equipment, software, or other facilities and resources.

     E. For purposes of this Agreement, “make” or “made,” when used in relation to
Inventions and Developments, includes any one or any combination of: (a) conception; (b) reduction
to practice; or (c) development; and is without regard to whether Employee is a sole or joint
inventor.

     F. For purposes of this Agreement, “Change in Control” shall mean:

          1. Any person or entity, or more than one person or entity acting as a group, other than a
member of the Employer Group or an employee benefit plan of the Employer Group, acquires directly
or indirectly Beneficial Ownership (as defined in Section 13(d) of the Securities Exchange Act of
1934, as amended) of any Voting Security of Quanta and immediately after such acquisition such
person, entity or group is, directly or indirectly, the Beneficial Owner of Voting Securities
representing fifty percent (50%) or more of the total fair market value or total voting power of
all of the then-outstanding Voting Securities of Quanta; or

          2. Any person or entity, or more than one person or entity acting as a group, other than a
member of the Employer Group or an employee benefit plan of the Employer Group, acquires directly
or indirectly, or has acquired during the preceding twelve (12) months, Beneficial Ownership (as
defined in Section 13(d) of the Securities Exchange Act of 1934, as amended) of any Voting Security
of Quanta and immediately after such acquisition such person, entity or group is, directly or
indirectly, the Beneficial Owner of Voting Securities representing thirty percent (30%) or more of
the total voting power of all of the then-outstanding Voting Securities of Quanta; or

          3. Individuals who, as of the date hereof, constitute the Board of Directors of Quanta (the
“Board”), and any new director whose election by the Board or nomination for election by
Quanta’s stockholders was approved by a vote of a majority of the directors then still

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in office who were directors as of the date hereof or whose election or nomination for
election was previously so approved, cease for any reason to constitute at least a majority of the
members of the Board within a 12-month period; or

          4. Any person or entity, or more than one person or entity acting as a group, other than a
member of the Employer Group or an employee benefit plan of the Employer Group, acquires directly
or indirectly, or has acquired during the preceding 12-months, forty percent (40%) or more of the
total gross fair market value of assets of the Employer Group.

     G. For purposes of this Agreement, “Voting Security” means common stock or other
capital stock, including preferred stock, of the applicable entity entitled generally to vote in
the election of directors and preferred stock and other equity securities (not including options,
warrants or similar rights) convertible into securities entitled generally to vote in the election
of directors (whether or not then convertible).

III. TERMS OF EMPLOYMENT

     A. Position and Duties. Employee is hereby employed by Employer as Executive Chairman
of the Board of Directors. Employee shall have the primary responsibilities, duties and authority
described in Exhibit A hereto, as the same may be modified from time to time by the Board
in its discretion in a manner consistent with Employee’s position. Employee shall devote his full
business time, attention and effort to the performance of this Agreement and to his duties as
described herein.

          1. Employee shall faithfully adhere to, execute and fulfill the duties described in
Exhibit A hereto, as in effect from time to time.

          2. Employee agrees to devote reasonable attention and time to the business and affairs of
Employer and, to the extent necessary, to discharge the responsibilities assigned to Employee
hereunder, to use Employee’s reasonable best efforts to perform faithfully and efficiently such
responsibilities.

          3. Employee shall not, during the term of his employment, be engaged in any other business
activity pursued for gain, profit or other pecuniary advantage if such activity interferes with
Employee’s duties and responsibilities to Employer. The foregoing limitations shall not be
construed as prohibiting Employee from serving on corporate, civic or charitable boards or
committees, delivering lectures or fulfilling speaking engagements, teaching at educational
institutions, or making personal investments, so long as such activities do not significantly
interfere with the performance of Employee’s responsibilities to Employer as set forth in this
Agreement.

          4. In the performance of his duties, Employee shall use his best efforts to adhere to the
legal requirements codified in statutes, ordinances and governmental regulations applicable to
Employer.

     B. Term. The initial term of this Agreement shall begin on the Effective Date and
shall continue for two (2) years, unless terminated sooner pursuant to the provisions of this
Agreement (the “Initial Term”). At the expiration of the Initial Term, unless terminated
sooner

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pursuant to the provisions of this Agreement, and each annual anniversary thereafter, this
Agreement will renew automatically for an additional one (1) year period (the “Renewal
Term”) unless either party notifies the other party in writing of its or his intention not to
renew this Agreement (the “Renewal Termination Notice”) not less than six (6) months prior
to the expiration of the Initial Term or of any Renewal Term (the Initial Term and any Renewal Term
are referred to collectively as the “Term”).

          1. Termination upon Death. This Agreement (and all of Employee’s rights and
Employer’s obligations hereunder) shall terminate as of the date of Employee’s death.

          2. Termination upon Disability. If Employee becomes Disabled as defined herein,
Employer may, by written notice to Employee, terminate this Agreement and Employee’s employment
hereunder. For purposes of this Agreement, “Disabled” or “Disability” means, as
determined by the Compensation Committee of the Board (the “Committee”), that (i) Employee
is unable to engage in any substantial gainful activity by reason of a physical or mental
impairment that is expected to result in death or last twelve (12) months or more, or Employee
receives replacement income for three (3) months or more due to such physical or mental impairment
or (ii) such other definition that complies with the definition of disability under Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated
thereunder.

          3. Termination for Cause. Employer may terminate this Agreement and Employee’s
employment hereunder for Cause by providing written notice to Employee of its intention to do so.
For purposes of this Agreement, “Cause” shall mean:

               a. Employee’s gross negligence in the performance of, intentional nonperformance of, or
inattention to his material duties and responsibilities hereunder, any of which continue for five
(5) business days after receipt of written notice of need to cure the same;

               b. Employee’s willful dishonesty, fraud or material misconduct with respect to the business or
affairs of Employer;

               c. the violation by Employee of any of Employer’s policies or procedures, which violation is
not cured by Employee within five (5) business days after Employee has been given written notice
thereof;

               d. a conviction of, a plea of nolo contendere, a guilty plea, or confession by Employee to, an
act of fraud, misappropriation or embezzlement or any crime punishable as a felony or any other
crime that involves moral turpitude;

               e. Employee’s use of illegal substances or habitual drunkenness; or

               f. the breach by Employee of this Agreement if Employee does not cure such breach within five
(5) business days after Employee has been given written notice thereof.

          4. Termination for Good Reason. Employee may terminate this Agreement and his
employment hereunder for Good Reason in the twelve (12) months following a Change

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in Control by providing written notice to Employer of his intention to do so. For purposes of
this Agreement, “Good Reason” shall mean:

               a. the assignment to Employee of any duties inconsistent with Employee’s position (including
offices, titles and reporting requirements), authority, duties or responsibilities as contemplated
by Section III.A of this Agreement and as in effect immediately prior to the Change in Control, or
any other action by Employer that results in a diminution in such position, authority, duties or
responsibilities (excluding for this purpose an isolated, insubstantial and inadvertent action not
taken in bad faith);

               b. any material breach of this Agreement by Employer, including any requirement that Employee
be based at any office or location that results in a violation of Section III.E of this Agreement;

               c. any failure by Employer to comply with any of the provisions of Section IV of this
Agreement (excluding for this purpose an isolated, insubstantial and inadvertent action not taken
in bad faith);

               d. any failure by Employer to continue in effect any cash or stock-based incentive or bonus
plan, retirement plan, welfare benefit plan or other compensation, retirement or benefit plan and
policy, unless the aggregate value (as computed by an independent employee benefits consultant
selected by Employer and reasonably acceptable to Employee or Employee’s legal representative) of
all such compensation, retirement or benefit plans and policies provided to Employee is not
materially less than their aggregate value as in effect at any time during the one hundred twenty
(120) day period immediately preceding a Change in Control or, if more favorable to Employee, those
provided generally at any time after the Change in Control to other peer employees of Employer and
its affiliated companies;

               e. Employee’s receipt from Employer of a Renewal Termination Notice as provided in Section
III.B; and

               f. in the event of a pending Change in Control, Employer and Employee have not received
written notice at least five (5) business days prior to the anticipated closing date of the
transaction giving rise to the Change in Control from the successor to all or a substantial portion
of the Employer Group’s business and/or assets that such successor is willing as of the closing to
assume and agree to perform Employer’s obligations under this Agreement in the same manner and to
the same extent that Employer is hereby required to perform.

Employee must provide written notice to Employer of the existence of the condition(s) described in
Section III.B.4.a through Section III.B.4.d above within 90 days of the initial existence of the
condition(s). Employer shall have 30 days after such notice is given during which to remedy the
condition(s), and such occurrence shall not be deemed to constitute Good Reason if such event or
circumstance has been fully corrected by Employer within the 30 day cure period and Employee has
been reasonably compensated for monetary losses or damages resulting therefrom.

     C. Notice of Termination. Any termination by Employer for Cause or Disability or by
Employee for Good Reason shall be communicated by a Notice of Termination provided to the other
party pursuant to the provisions of Section IX.C of this Agreement. For purposes of

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this Agreement, “Notice of Termination” means a written notice that: (1) indicates the
specific termination provision or provisions as set forth in this Agreement relied upon by either
Employer or Employee; (2) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide the basis for termination under the provision or provisions of
this Agreement relied upon by either Employer or Employee; and (3) if the Date of Termination (as
defined below) is other than the date of receipt of such Notice of Termination, specifies the
termination date. The failure by either Employer or Employee to set forth in the Notice of
Termination any fact or circumstance that contributes to a showing of Cause or Good Reason shall
not waive any right of Employer or Employee or preclude Employer or Employee from asserting such
fact or circumstance in enforcing Employer’s or Employee’s rights or obligations under this
Agreement.

     D. Date of Termination. According to this Agreement, “Date of Termination”
shall mean: (1) if Employee’s employment is terminated for Cause or Disability, or by Employee for
Good Reason, the date of receipt of the Notice of Termination or any later date specified therein
or as required under this Agreement; (2) if Employee’s employment is terminated by Employer other
than for Cause or Disability, the Date of Termination shall be the date on which Employer notifies
Employee of such termination; (3) if Employee’s employment is terminated by reason of death, the
Date of Termination shall be the date of the death of Employee; or (4) if Employee voluntarily
terminates his employment, the Date of Termination shall be the date on which Employee and Employer
shall agree to be the Date of Termination.

     E. Place of Performance. Nothing contained in this Agreement shall be deemed to
require Employee to relocate from Employee’s present residence to another geographic location in
order to carry out Employee’s duties and responsibilities under this Agreement, other than normal
business travel consistent with Employee’s duties, responsibilities and position.

IV. COMPENSATION 

     A. Annual Base Salary. Employer agrees to compensate and pay Employee, or to cause
Employee to be compensated and paid, an annual base salary of $874,100, payable on a regular basis
in accordance with Employer’s standard payroll procedures but not less frequently than monthly.

     On at least an annual basis, the Board or a duly constituted committee thereof will review
Employee’s performance and may make increases to Employee’s annual base salary if, in its sole
discretion, any such increase is warranted.

     B. Bonus. Employee shall participate in Employer’s annual and supplemental incentive
bonus plans at a level commensurate with Employee’s position. Employee may participate in other
current and future incentive bonus plans as determined by the Board or a duly constituted committee
thereof.

     C. Incentive, Savings and Retirement Plans. Employee shall be entitled to participate
in all incentive, savings and retirement plans, practices, policies and programs generally
applicable to other peer employees of Employer.

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     D. Welfare Benefit Plans. Employee and Employee’s dependents shall receive coverage
under the welfare benefit plans, practices, policies and programs provided by Employer including,
but not limited to, medical, prescription, dental, disability, employee life, group life,
accidental death and travel accident insurance plans and programs, generally applicable to other
peer employees of Employer, the terms and conditions of which shall be no less favorable than those
available to other similarly situated officers of Employer.

     E. Reimbursement of Expenses. Employer shall reimburse Employee or cause Employee to
be promptly reimbursed for all reasonable and necessary expenses incurred by Employee in
furtherance of the business and affairs of the Employer Group including, but not limited to, all
travel expenses and living expenses while away from home on business or at the request of Employer
or the Board. Such reimbursement shall be effected as soon as reasonably practicable after such
expenditures are made, against presentation of signed, itemized expense reports in accordance with
the travel and business expense reimbursement policies of Employer.

     F. Severance Benefits upon Termination. As set forth below, the following obligations
are imposed upon Employer upon termination of this Agreement; provided, however, that to be
entitled to such severance benefits, Employee will be required to execute, and not revoke, a
Confidential Severance Agreement and Release provided by Employer as more fully described in
Section IV.I below.

          1. Death. If Employee’s employment is terminated due to his death, Employee shall not
be entitled to any severance benefits under the terms of this Agreement.

          2. Disability. If Employee’s employment is terminated due to his Disability, Employee
shall be entitled to severance benefits equal to one (1) year of Employee’s annual base salary.
Subject to Employee’s compliance with the requirements of Section IV.I below, such severance
benefits shall be paid to Employee in a lump-sum payment within sixty (60) days of the Date of
Termination.

          3. Cause. If Employee’s employment is terminated for Cause as defined under this
Agreement, Employee shall not be entitled to any severance benefits under the terms of this
Agreement.

          4. Without Cause. If Employee’s employment is terminated by Employer without Cause
(other than within the twelve (12) months following a Change in Control), Employee shall be
entitled to severance benefits equal to two (2) years of Employee’s annual base salary. Subject to
Employee’s compliance with the requirements of Section IV.I below, such severance benefits shall be
paid to Employee in a lump-sum payment within sixty (60) days of the Date of Termination. In the
event that Employee is entitled to receive severance benefits under Section IV.G.1, Employee will
not be entitled to receive severance benefits under this Section.

          5. Resignation by Employee. If Employee resigns his employment, Employee shall not be
entitled to any severance benefits under the terms of this Agreement unless Employee resigns his
employment for Good Reason within the twelve (12) months following a Change in Control as described
in Section IV.G.2 below.

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     G. Severance Benefits upon Change in Control.

          1. Termination without Cause. In the event Employee is terminated without Cause by
Employer within twelve (12) months following a Change in Control, Employee shall be entitled to the
following:

               a. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times
Employee’s base salary at the rate then in effect; and

               b. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times the
higher of (i) the highest annual cash bonus paid (or earned if not yet paid) to Employee for the
three (3) fiscal years preceding Employee’s termination under Employer’s annual incentive bonus
plan or a direct predecessor thereto or replacement thereof or (ii) Employee’s target annual cash
bonus payable, including any bonus or portion thereof which has been earned but deferred, under
Employer’s annual incentive bonus plan or a direct predecessor thereto or replacement thereof for
the current fiscal year or, if such target bonus has not yet been determined, for the most recently
completed fiscal year; and

               c. for a period of three (3) years following Employee’s termination continuation of medical,
dental and vision benefit coverage for Employee and Employee’s dependents at least equal to those
that would have been provided to the same in accordance with the plans, programs, practices and
policies described in Section IV.D of this Agreement if Employee’s employment had not been
terminated or, if more favorable to Employee, as in effect generally at any time thereafter with
respect to other peers of Employee; provided, however, that if Employee becomes reemployed with
another employer and is eligible to receive medical, dental or vision benefits under another
employer provided plan, the medical, dental and vision benefits described herein shall be secondary
to those provided under such other plan during such applicable period of eligibility.

In the event that Employee is entitled to receive severance benefits under this Section V.G.1,
Employee will not be entitled to receive severance benefits under Section IV.F.4.

          2. Termination by Employee with Good Reason. In the event Employee terminates his
employment for Good Reason within twelve (12) months following a Change in Control, Employee shall
be entitled to:

               a. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times
Employee’s base salary at the rate then in effect;

               b. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times the
higher of (i) the highest annual cash bonus paid (or earned if not yet paid) to Employee for the
three (3) fiscal years preceding Employee’s termination under Employer’s annual incentive bonus
plan or a direct predecessor thereto or replacement thereof or (ii) Employee’s target annual cash
bonus payable, including any bonus or portion thereof which has been earned but deferred, under
Employer’s annual incentive bonus plan or a direct predecessor thereto or replacement thereof for
the current fiscal year or, if such target bonus has not yet been determined, for the most recently
completed fiscal year; and

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               c. for a period of three (3) years following Employee’s termination continuation of medical,
dental and vision benefit coverage for Employee and Employee’s dependents at least equal to those
that would have been provided to the same in accordance with the plans, programs, practices and
policies described in Section IV.D of this Agreement if Employee’s employment had not been
terminated or, if more favorable to Employee, as in effect generally at any time thereafter with
respect to other peers of Employee; provided, however, that if Employee becomes reemployed with
another employer and is eligible to receive medical, dental or vision benefits under another
employer provided plan, the medical, dental and vision benefits described herein shall be secondary
to those provided under such other plan during such applicable period of eligibility.

          3. Limitation on Severance Benefits. Anything in this Agreement to the contrary
notwithstanding, in the event that it shall be determined (as herein after provided) that any
payment or distribution by Employer or any of its affiliates to or for the benefit of Employee,
whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise pursuant to or by reason of any other agreement, policy, plan, program, or arrangement
including, without limitation, any stock option, restricted stock, stock appreciation right or
similar right, or the lapse or termination of any restriction on, or the vesting or exercisability
of, any of the foregoing (individually and collectively, a “Payment”), would be subject,
but for the application of this Section IV.G.3 to the excise tax imposed by Section 4999 of the
Code, or any successor provision thereto (hereinafter the “Excise Tax”), by reason of being
considered “contingent on a change in ownership or control” of Employer, within the meaning of
Section 280G(b)(2) of the Code, or any successor provision thereto, then:

               a. if the After-Tax Payment Amount would be greater by reducing the amount of the Payment
otherwise payable to Employee to the minimum extent necessary (but in no event less than zero) so
that, after such reduction, no portion of the Payment would be subject to the Excise Tax, then the
Payment shall be so reduced; and

               b. if the After-Tax Payment Amount would be greater without the reduction then there shall be
no reduction in the Payment.

     As used in this Section IV.G.3, “After-Tax Payment Amount” means (i) the amount of the
Payment, less (ii) the amount of federal income taxes payable with respect to the Payment
calculated at the maximum marginal income tax rate for each year in which the Payment shall be paid
to Employee (based upon the rate in effect for such year as set forth in the Code at the time of
the Payment), less (iii) the amount of the Excise Tax, if any, imposed upon the Payment. For
purposes of any reduction made under Section IV.G.3.a, the Payments that shall be reduced shall be
those that provide Employee the best economic benefit, and to the extent any Payments are
economically equivalent, each shall be reduced pro rata.

     H. Compliance with Section 409A of the Code. The payments to be made under this
Agreement are intended to be exempt from or compliant with Section 409A of the Code. Specifically,
the severance payments and benefits under Section IV.F and Section IV.G hereof are intended to be
exempt from Section 409A of the Code by compliance with the short-term deferral exemption as
specified in 26 C.F.R. Section 1.409A-1(b)(4) and/or the separation pay exemption as specified in
26 C.F.R. Section 1.409A-1(b)(9) or are intended to comply with

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Section 409A of the Code including, but not limited to, being paid upon disability pursuant to
26 C.F.R. Section 1.409-3(i)(4), pursuant to change in control event pursuant to 26 C.F.R. Section
1.409A-3(i)(5) or pursuant to a fixed schedule or specified date pursuant to 26 C.F.R. Section
1.409A-3(a), and the provisions of this Agreement will be administered, interpreted and construed
accordingly. Notwithstanding the foregoing, Employer makes no representation or warranty and shall
have no liability to Employee or any other person if any provisions of this Agreement are
determined to constitute deferred compensation subject to Section 409A of the Code and do not
satisfy an exemption from, or the conditions of, Section 409A of the Code.

     For all purposes of this Agreement, Employee shall be considered to have terminated employment
with Employer when Employee incurs a “separation from service” with the Employer Group within the
meaning of Section 409A(a)(2)(A)(i) of the Code.

     If the Committee determines that severance payments due under this Agreement on account of
termination of Employee’s employment constitute “deferred compensation” subject to Section 409A of
the Code, and that Employee is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the
Code and 26 C.F.R. Section 1.409A-1(i), then such severance payments shall commence on the first
payroll date of the seventh month following the month in which Employee’s termination occurs (with
the first such payment being a lump sum equal to the aggregate severance payments Employee would
have received during the prior six-month period if no such delay had been imposed). For purposes
of this Agreement, whether Employee is a “specified employee” will be determined in accordance with
the written procedures adopted by the Committee which are incorporated by reference herein.

     All reimbursements and in-kind benefits provided under this Agreement shall be made or
provided in accordance with the requirements of Section 409A of the Code and the regulations to the
extent that such reimbursements or in-kind benefits are not excepted from Section 409A of the Code,
including where applicable, the requirement that (i) any reimbursement is for expenses incurred
during Employee’s lifetime (or during a shorter period of time specified in the Agreement); (ii)
the amount of expenses eligible for reimbursement during the calendar year may not affect the
expenses eligible for reimbursement in any other calendar year; (iii) the reimbursement of an
eligible expense will be made on or before the last day of the calendar year following the year in
which the expense is incurred; and (iv) the right to reimbursement is not subject to set off or
liquidation or exchange for any other benefit.

     I. Confidential Severance Agreement and Release. Notwithstanding any provision herein
to the contrary, if Employee has not delivered to Employer an executed Confidential Severance
Agreement and Release (the “Release”) on or before the fiftieth (50th) day after the Date
of Termination, or if Employee revokes such executed Release prior to the sixtieth (60th) day after
the Date of Termination, Employee shall forfeit all of the payments and benefits described in
Section IV.F.2 or Section IV.F.4, as applicable; provided, however, that Employee shall not forfeit
such amounts if Employer has not delivered to Employee the required form of Release on or before
the 25th day following the Date of Termination. A form of Release is attached as Exhibit B
hereto. Employee acknowledges that Employer retains the right to modify the required form of the
Release as Employer deems necessary in order to effectuate a full and complete release of claims
against the Employer Group and its affiliates, officers and directors.

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V. COMPANY-RELATED INVENTIONS AND DEVELOPMENTS

     A. Records of Inventions. Employee shall keep complete and current written records of
Inventions and Developments made during the course of his employment with Employer and promptly
disclose all such Inventions and Developments in writing to Employer so that it may adequately
determine its rights in such Inventions and Developments. Employee shall supplement any such
disclosure to the extent Employer may request. If Employee has any doubt as to whether or not to
disclose any Inventions and Developments, Employee shall disclose the same to Employer.

     B. Ownership of Inventions. All Company-Related Inventions and Developments made by
Employee during the term of his employment with Employer shall be the sole and exclusive property
of the applicable member(s) of the Employer Group. Employee shall assign, and does hereby assign,
his entire right, title and interest in such Company-Related Inventions and Developments to the
applicable member(s) of the Employer Group. Employer’s ownership and the foregoing assignment
shall apply, without limitation, to all rights under the patent, copyright, and trade secret laws
of any jurisdiction relating to Company-Related Inventions and Developments. If Employee asserts
any property right in any Inventions and Developments made by Employee during the term of his
employment with Employer, Employee shall promptly notify Employer of the same in writing.

     C. Cooperation with Employer. Employee shall assist and fully cooperate with Employer
in obtaining and maintaining the fullest measure of legal protection which the Employer Group
elects to obtain and maintain for Inventions and Developments in which the Employer Group has a
property right. Employee shall execute any lawful document requested by Employer relating to
obtaining and maintaining legal protection for any said Inventions and Developments including, but
not limited to, executing applications, assignments, oaths, declarations and affidavits. Employee
shall make himself available for interviews, depositions and testimony relating to any said
Inventions and Developments. These obligations shall survive the termination of Employee’s
employment with Employer, provided that Employer shall compensate Employee at a reasonable rate
after such termination for time actually spent by Employee at Employer’s requests on such
assistance. In the event Employer is unable for any reason whatsoever to secure Employee’s
signature to any document reasonably necessary or appropriate for any of the foregoing purposes
including, but not limited to, renewals, extensions, continuations, divisions or continuations in
part, in a timely manner, Employee irrevocably designates and appoints Employer and its duly
authorized officers and agents as his agents and attorneys-in-fact to act for Employee and on his
behalf, but only for purposes of executing and filing any such document and doing all other
lawfully permitted acts to accomplish the foregoing purposes with the same legal force and effect
as if executed by Employee.

     D. Pre-employment Inventions. Employee shall completely identify on Exhibit C
attached hereto, without disclosing any trade secret or other proprietary and confidential
information, all Inventions and Developments made by Employee prior to his employment with Employer
or prior to execution of this Agreement in which Employee has an ownership interest and which is
not the subject matter of an issued patent or a printed publication at the time Employee executes
this Agreement.

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     E. Disclosure of Inventions after Termination. Employee shall promptly and completely
disclose in writing to Employer’s law department all Company-Related Inventions and Developments
made by Employee during the one (1) year immediately following Employee’s termination of
employment, whether voluntarily or involuntarily, for the purposes of determining Employer’s rights
in each such invention. It will be presumed that Company-Related Inventions and Developments
conceived by Employee which are reduced to practice within one (1) year after termination of
Employee’s employment, whether voluntary or involuntary, were conceived during the term of
Employee’s employment with Employer unless Employee is able to establish a later conception date by
clear and convincing evidence.

VI. OBLIGATIONS RELATING TO PROPRIETARY

AND CONFIDENTIAL INFORMATION

     A. Obligations of Employer.

          1. Proprietary and Confidential Information. Employer shall provide Employee, during
his employment, with valuable Proprietary and Confidential Information for the purpose of assisting
Employee in the performance of his job requirements and responsibilities with Employer. In
addition, Employer shall provide to Employee, during his employment, with the equipment, materials
and facilities necessary to assist Employee in the performance of his job requirements and
responsibilities with Employer.

          2. Training. Employer shall provide Employee with any and all specialized training
necessary to assist Employee in the performance of his job requirements and responsibilities with
Employer including, but not limited to, training relating to the Employer Group’s cost structures,
methods of operation, the Employer Group’s products and marketing techniques, the Employer Group’s
business strategies, plans and models.

     B. Obligations of Employee.

          1. Nondisclosure of Proprietary and Confidential Information. Both during and after
the termination of employment, whether such termination is voluntary or involuntary, Employee shall
keep in confidence and trust all Proprietary and Confidential Information. Both during and after
the termination of employment, whether such termination is voluntary or involuntary, Employee shall
not use or disclose Proprietary or Confidential Information without the written consent of
Employer, except as may be necessary in the ordinary course of performing his duties to Employer.

          2. Return of Proprietary and Confidential Information. All documents and tangible
things (whether written or electronic) embodying or containing Proprietary and Confidential
Information are the Employer Group’s exclusive property. Employee shall be provided with or given
access to such Proprietary and Confidential Information solely for performing his duties of
employment with Employer. Employee shall protect the confidentiality of their content and shall
return all such Proprietary and Confidential Information, including all copies, facsimiles and
specimens of them in any tangible or electronic forms in Employee’s possession, custody or control
to Employer before leaving the employment of Employer for any reason, whether voluntary or
involuntary.

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          3. Confidential Information from Previous Employment. Employee shall not disclose or
use during his employment with Employer any proprietary and confidential information which Employee
has acquired as a result of any previous employment or under a contractual obligation of
confidentiality before his employment with Employer and, furthermore, Employee shall not bring to
the premises of Employer any copies or other tangible embodiments of any such proprietary and
confidential information.

          4. Conflict of Interest. Employee shall not engage in outside employment or other
activities in the course of which Employee would use or might be tempted or induced to use
Proprietary and Confidential Information in other than the Employer Group’s own interest.

          5. Agreement Not to Compete/Solicit.

               a. Non-Compete. Employee agrees that during the Covenant Period (as defined below),
he shall not, without Employer’s written consent, directly or indirectly, for himself or on behalf
of or in conjunction with any other person, persons, company, partnership, corporation or business
venture of any nature:

                    (i) engage, as an officer, director, shareholder, owner, partner, joint venturer or in a
managerial capacity, whether as an employee, independent contractor, consultant, advisor or sales
representative, in any business or industry in which the Employer Group is engaged, within the
United States, Canada or any other country in which the Employer Group conducts business, including
any territory serviced by the Employer Group, or in which the Employer Group is actively pursuing
business opportunities (the “Territory”);

                    (ii) call upon any person or entity which is, at that time, or which has been, within one (1)
year prior to that time, a customer of the Employer Group, or a prospective customer that has been
actively solicited by the Employer Group, within the Territory for the purpose of soliciting or
selling products or services in competition with the Employer Group; or

                    (iii) call upon any prospective acquisition candidate, on Employee’s own behalf or on behalf
of any competitor, which candidate was, to Employee’s actual knowledge after due inquiry, either
called upon by the Employer Group or for which the Employer Group made an acquisition analysis for
the purpose of acquiring such entity.

               b. Non-Solicitation. Employee agrees that during the Covenant Period, he shall not,
without Employer’s written consent, employ, hire, solicit, induce or identify for employment or
attempt to employ, hire, solicit, induce or identify for employment, directly or indirectly, any
employee(s) of the Employer Group to leave his or her employment and become an employee, consultant
or representative of any other entity including, but not limited to, Employee’s new employer, if
any.

               c. Publicly Traded Securities. The provisions of Section VI.B.5 of this Agreement
shall not prevent Employee from acquiring or holding publicly traded stock or other public
securities of a competing company, so long as Employee’s ownership does not exceed two percent (2%)
of the outstanding securities of such company.

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               d. Agreement to Inform Subsequent Employers. For a period of two (2) years after the
termination of Employee’s employment with Employer, whether voluntary or involuntary, Employee
agrees to inform each new employer, prior to accepting employment, of the existence of this
Agreement and provide that employer with a copy of this Agreement.

               e. Reasonableness of Restrictions. Employee acknowledges that the restrictions set
forth in Section VI.B.5 of this Agreement are intended to protect the Employer Group’s legitimate
business interests and its Proprietary and Confidential Information and established relationships
and good will. Employee acknowledges that the time, geographic and scope of activity limitations
set forth herein are reasonable and necessary to protect the Employer Group’s legitimate business
interests. However, if in any judicial proceeding, a court shall refuse to enforce this Agreement
as written, whether because the time limitation is too long or because the restrictions contained
herein are more extensive (whether as to geographic area, scope of activity or otherwise) than is
necessary to protect the legitimate business interests of the Employer Group, it is expressly
understood and agreed between the parties hereto that this Agreement is deemed modified to the
extent necessary to permit this Agreement to be enforced in any such proceedings.

               f. Ability to Obtain Other Employment. Employee acknowledges that (1) in the event of
the termination of his employment with Employer (whether voluntary or involuntary), Employee’s
knowledge, experience and capabilities are such that Employee can obtain employment in business
activities which are of a different and non-competing nature than those performed in the course of
his employment with Employer or in the geographic areas outside of the Territory and (2) the
enforcement of a remedy hereunder including, but not limited to, injunctive relief, will not
prevent Employee from earning a reasonable livelihood.

               g. Injunctive Relief. Employee acknowledges that compliance with Section VI.B of this
Agreement is necessary to protect the good will and other legitimate business interests of the
Employer Group and that a breach of any or all of these provisions will give rise to irreparable
and continuing injury to the Employer Group that is not adequately compensable in monetary damages
or at law. Accordingly, Employee agrees that Employer, its successors and assigns, may obtain
injunctive relief against the breach or threatened breach of any or all of these provisions, in
addition to any other legal or equitable remedies which may be available to the Employer Group at
law or in equity or under this Agreement. Because Employee further acknowledges that it would be
difficult to measure any damages caused to the Employer Group that might result from any breach by
Employee of any promises set forth in this Agreement, Employee agrees that Employer shall be
entitled to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual damage to the Employer Group, as well as to be relieved of any
obligation to provide further payment or benefits to Employee or Employee’s dependents.

               h. Other Remedies. If Employee violates and/or breaches this Agreement, Employer
shall be entitled to an accounting and repayment of all lost profits, compensation, commissions,
remuneration or benefits that Employee directly or indirectly has realized or may realize as a
result of any such violation or breach. Employer shall also be entitled to recover for all lost
sales, profits, commissions, good will and customers caused by Employee’s improper acts, in
addition to and not in limitation of any injunctive relief or other

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rights or remedies that Employer is or may be entitled to at law or in equity or under this
Agreement.

               i. Costs. Employee acknowledges that should it become necessary for Employer to file
suit to enforce the provisions contained herein, and any court of competent jurisdiction awards the
Employer Group any damages and/or an injunction due to the acts of Employee, then Employer shall be
entitled to recover its reasonable costs incurred in conducting the suit including, but not limited
to, reasonable attorneys’ fees and expenses.

               j. Covenant Period. For purposes of this Section VI.B.5, the Covenant Period shall
mean the period from and during the Term of this Agreement and ending on the date that is two (2)
years after Employee’s employment with Employer terminates, whether voluntary or involuntary;
provided, however, that if Employer delivers to Employee a Renewal Termination Notice, as provided
in Section III.B, and Employee remains employed with Employer through the expiration of the Term
(and this Agreement), then the Covenant Period shall end on the date that is one (1) year after the
date of such Renewal Termination Notice. For purposes of clarity, in the event that Employee’s
employment with Employer terminates for any reason, whether voluntary or involuntary, after
Employee receives a Renewal Termination Notice and before the end of the Term, the Covenant Period
shall end on the date that is two (2) years after the termination of Employee’s employment.

          6. Nondisparagement. Employee acknowledges and agrees that both during and after his
employment with Employer, whether such termination is voluntary or involuntary, Employee shall not
disparage, denigrate or comment negatively upon, either orally or in writing, the Employer Group or
any of their respective officers, directors, employees or representatives, to or in the presence of
any person or entity unless compelled to act by a valid subpoena or other legal mandate; provided,
however, if Employee receives such a valid subpoena or legal mandate, he shall provide Employer
with written notice of the same at least five (5) business days prior to the date on which Employee
is required to make the disclosure.

VII. WAIVER OF RIGHT TO JURY TRIAL

EMPLOYER AND EMPLOYEE HEREBY VOLUNTARILY, KNOWINGLY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS TO
TRIAL BY JURY TO ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT, AS WELL AS TO ALL CLAIMS
ARISING OUT OF EMPLOYEE’S EMPLOYMENT WITH EMPLOYER OR TERMINATION THEREFROM INCLUDING, BUT NOT
LIMITED TO:

     A. Any and all claims and causes of action arising under contract, tort or other common law
including, without limitation, breach of contract, fraud, estoppel, misrepresentation, express or
implied duties of good faith and fair dealing, wrongful discharge, discrimination, retaliation,
harassment, negligence, gross negligence, false imprisonment, assault and battery, conspiracy,
intentional or negligent infliction of emotional distress, slander, libel, defamation and invasion
of privacy;

     B. Any and all claims and causes of action arising under any federal, state or local law,
regulation or ordinance, including, without limitation, claims arising under Title VII of the

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Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with
Disabilities Act, the Family and Medical Leave Act, the Fair Labor Standards Act and all
corresponding state laws; and

     C. Any and all claims and causes of action for wages, employee benefits, vacation pay,
severance pay, pension or profit sharing benefits, health or welfare benefits, bonus compensation,
commissions, deferred compensation or other remuneration, employment benefits or compensation, past
or future loss of pay or benefits or expenses.

VIII. CLAIMS

     Employer and Employee acknowledge and agree that this Agreement shall be interpreted, governed
by and construed in accordance with the laws of the State of Texas, without regard to the conflict
of laws principles or rules thereof.

     Employer and Employee irrevocably and unconditionally agree that any legal suit, action or
proceeding arising out of or relating to this Agreement, as well as to all claims arising out of
Employee’s employment with Employer or termination therefrom, shall be brought in either the
Federal District Court for the Southern District of Texas—Houston Division or in a judicial
district court of Harris County, Texas (hereinafter referred to as the “Texas Courts”). In
that regard, Employer and Employee waive, to the fullest extent allowed, any objection that
Employer or Employee may have to the venue of any such proceeding being brought in the Texas
Courts, and any claim that any such action or proceeding brought in the Texas Courts has been
brought in an inconvenient forum. In addition, Employer and Employee irrevocably and
unconditionally submit to the exclusive jurisdiction of the Texas Courts in any such suit, action
or proceeding. Employer and Employee acknowledge and agree that a judgment in any suit, action or
proceeding brought in the Texas Courts shall be conclusive and binding on each and may be enforced
in any other courts to whose jurisdiction Employer or Employee is or may be subject to, by suit
upon such judgment.

     In the event Employee obtains a final judgment in his favor by a court of competent
jurisdiction with respect to any dispute regarding Employer’s failure to pay Employee on a timely
basis the amounts to which he is entitled under this Agreement or as a result of any other breach
of this Agreement by Employer, Employer shall pay all amounts and damages to which Employee may be
entitled as a result of such breach, including interest thereon and all reasonable legal fees and
expense and other costs incurred by Employee to enforce Employee’s rights hereunder.

IX. MISCELLANEOUS

     A. Publicity Release. By executing this Agreement, Employee forever gives the
Employer Group, its successors, assigns, licensees and any other designees, the absolute right and
permission, throughout the world: (1) to copyright (and to renew and extend any copyright), use,
reuse, publish and republish photographic portraits and pictures, motion or still, of Employee, or
in which Employee may be included, in whole or in part, or composite or distorted character in any
form, whether heretofore taken or to be taken in the future, in conjunction with Employee’s own or
a fictitious name or title (which Employee now has or may have in the

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future), or reproductions thereof, in color or otherwise, made through any media at any place,
for art, advertising, trade or any other purpose whatsoever; and (2) to record, reproduce, amplify,
simulate, “double” and/or “dub” Employee’s voice and transmit the same by any mechanical or
electronic means, for any purpose whatsoever. Employee further consents to the use of any printed
matter giving Employee, or not giving Employee, a credit, in the sole discretion of any of the
aforementioned parties to whom this authorization and release is given, in conjunction therewith.
Employee waives any right he may have to inspect and/or approve the finished product or the
advertising copy or printed matter that may be used in connection therewith, or the use to which it
may be applied.

     B. Withholding. Employer may withhold from any amounts payable under this Agreement
such federal, state, local, F.I.C.A., foreign or other taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

     C. Notices. All notices, consents, requests, instructions, approvals and other
communications provided for in this Agreement shall be in writing and shall be addressed as
follows:

	 	 	 	 	 

	 

	 	To Employer:
	 	Quanta Services, Inc.
	 

	 	 	 	1360 Post Oak Boulevard, Suite 2100
	 

	 	 	 	Houston, Texas 77056
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	To Employee:
	 	John R. Colson
	 

	 	 	 	1360 Post Oak Boulevard, Suite 2100
	 

	 	 	 	Houston, Texas 77056

Notice shall be deemed given and effective: (1) upon receipt, if delivered personally; (2) three
(3) days after it has been deposited in the U.S. mail, addressed as required above, and sent via
registered or certified mail, return receipt requested, postage prepaid; or (3) the next business
day after it has been sent via a recognized overnight courier. Employer and/or Employee may change
the address for notice purposes by notifying the other of such change in accordance with this
Section IX.C.

     D. Severability. If any provision of this Agreement is held to be invalid,
inoperative or unenforceable for any reason, it shall be modified rather than voided, if possible,
in order to achieve the intent of the parties hereto to the maximum extent possible. In any event,
if any provision this Agreement is held to be invalid, inoperative or unenforceable for any reason,
the other provisions of this Agreement shall be deemed valid and operative and, so far as is
reasonable and possible, effect shall be given to the intent manifested by the provision or
provisions held invalid or inoperative.

     E. Survival of Certain Obligations. The obligations of the parties set forth in this
Agreement that by their terms extend beyond or survive the termination of this Agreement, whether
voluntarily or involuntarily, will not be affected or diminished in any way by the termination of
this Agreement.

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     F. Headings. The headings contained in this Agreement are for purposes of reference
and convenience only and are not intended in any way to describe, interpret, define or limit the
extent or intent of this Agreement.

     G. Entire Agreement. This Agreement supersedes any other agreements, written or oral,
between the Employer Group and Employee, and Employee has no oral representations, understandings
or agreements with the Employer Group or any of their respective officers, directors or
representatives covering the same subject matter as this Agreement, including, but not limited to,
that certain Second Amended and Restated Employment Agreement between Quanta and Employee effective
May 21, 2003, and as thereafter amended. This written Agreement is the final, complete and
exclusive statement and expression of the agreement between Employer and Employee and of all the
terms of this Agreement. This Agreement cannot be modified, varied, contradicted or supplement by
evidence of any prior or contemporaneous oral or written agreements.

     H. Amendment/Waiver. Neither this Agreement nor any term hereof may be modified or
amended except by written instrument signed by a duly authorized officer of Employer and by
Employee. No term of this Agreement may be waived other than by written instrument signed by the
party waiving the benefit of such term. Any such waiver shall constitute a waiver only with
respect to the specific matter described in such written instrument and shall in no way impair the
rights of the party granting such waiver in any other respect or at any other time. Neither the
waiver by Employer or Employee of a breach of or a default under any of the provisions of this
Agreement, nor the failure by either Employer or Employee, on one or more occasions, to enforce any
of the provisions of this Agreement or to exercise any right or privilege hereunder, shall be
construed as a waiver of any other breach or default of a similar nature, or as a waiver of any
such provisions, rights or privileges hereunder.

     I. Assignment. This Agreement is personal to the parties and neither party may assign
any rights or obligations under the same without the prior written consent of the other; provided,
however, that in the event of a sale of the Employer Group’s business to a third party (whether by
sale of all or a majority of the Employer Group’s issued and outstanding equity securities, by a
merger or reorganization, or by a sale of all or substantially of the Employer Group’s assets),
then this Agreement may be assigned by Employer to such third party purchaser without the prior
written consent of Employee, provided that such third party purchaser agrees to assume and abide by
all of Employer’s obligations set forth in this Agreement and provides written notice thereof to
Employee. In the event of any such assignment, all references to “Quanta” hereunder shall mean the
assignee, and to the extent any entity becomes the successor to Quanta, all obligations hereunder
shall be the obligations of the successor and “Quanta” mean the successor entity.

     J. Counterparts. This Agreement may be executed simultaneously in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall constitute
one and the same instrument.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above, but to be effective as of the Effective Date.

	 	 	 	 	 

	QUANTA SERVICES, INC.:	 	 
	 
	 	 	 	 
	By:

	 	/s/ Tana Pool
 

Tana Pool
	 	 
	 

	 	Vice President	 	 

	 	 	 

	EMPLOYEE:
	 	 
	 
	 	 
	/s/ John R. Colson
 

John R. Colson

	 	 

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EXHIBIT A

Executive Chairman of the Board Duties and Responsibilities

BASIC FUNCTION

The Chairman of the Board is responsible for the management, development and effective performance
of the Board of Directors, and provides leadership to the Board for all aspects of the Board’s
work.

The Chairman acts in an advisory capacity to the President and Chief Executive Officer (CEO) and,
in conjunction with the CEO, to other officers in all matters concerning the interests and
management of the Corporation. The Chairman, in collaboration with the CEO, plays a role in the
Corporation’s external relationships.

DUTIES AND RESPONSIBILITIES

The Chairman of the Board:

	 	•	 Collaborates with the CEO and the Lead Independent Director to plan and organize
activities of the Board of Directors including:

	 	–	 	annual calendar for the Board and committees thereof;
	 
	 	–	 	board meeting agendas;
	 
	 	–	 	 preparation for, and the conduct of, Board meetings;
	 
	 	–	 	quality, quantity and timeliness of the information that goes to Board members; and
	 
	 	–	 	 ongoing formal and informal communication with and among Directors.

	 	•	 Collaborates with the Governance & Nominating Committee regarding:

	 	–	 	the formation of Board committees and the integration of their activity
with the work of the Board;
	 
	 	–	 	CEO succession planning; and
	 
	 	–	 	as requested, with the development of the Board, including Director
recruitment, evaluation and compensation.

	 	•	 Chairs full board meetings and the annual and special meetings of the shareholders. In
conjunction with the CEO, the Chairman may meet with various groups (such as major
shareholder groups), governments, the financial press, industry associations, etc.

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	 	•	 Works closely with, and through the CEO, to:

	 	–	 	Assist in the development of the Corporation’s vision, strategic plans,
and business plans to facilitate communication and understanding between management
and the Board
	 
	 	–	 	ensure operations conform with the Board’s view on corporate policy
	 
	 	–	 	ensure, in consultation with the Compensation Committee, Governance &
Nomination Committee and full Board, that management development and succession
plans are in place at senior executive levels
	 
	 	–	 	coordinate labor relations activities including external union relationships
	 
	 	–	 	coordinate expansion of Quanta’s business outside of North America

	 
	 	–	 	significantly participate in Quanta’s ongoing merger and acquisition process
	 
	 	–	 	facilitate the effective transition to the new organizational structure

	 	•	 In conjunction with the CEO, participates in external relationships which fulfill the
Corporation’s obligations as a member of industry and the community.

	 
	 	•	 Together with the Lead Independent Director, provides the key link between the Board
and management, and as a result, has a significant communication, coaching and
team-building responsibility including:

	 	–	 	maintaining a close and ongoing relationship and open communication
with the CEO
	 
	 	–	 	representing the shareholders and Board to management and management to
the shareholders and Board
	 
	 	–	 	monitoring and evaluating the performance of the CEO, in coordination
with the Compensation Committee

	 	•	 At his discretion, may attend all Board committee meetings.
	 
	 	•	 Carries out special assignments (e.g., consultation with and support of leadership of
electric power units and energized services, etc.) in collaboration with the CEO,
management and/or the Board of Directors.

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EXHIBIT B

FORM OF CONFIDENTIAL SEVERANCE AGREEMENT AND RELEASE

SEVERANCE AGREEMENT

AND RELEASE OF ALL CLAIMS

     This Severance Agreement and Release of All Claims (the “Agreement”) is made and
entered into by and between John R. Colson (hereinafter referred to as the “Employee”) and Quanta
Services, Inc., a Delaware corporation, (hereinafter collectively referred to as the “Company”).

     The purpose of this Agreement is to arrange a settlement of the Employee’s employment with the
Company that is satisfactory both to the Company and to the Employee. By signing this Agreement,
the Company and the Employee agree as follows:

	1.	 	Termination of Employment. The Employee and the Company are entering into this
Agreement as a way of amicably concluding the employment relationship between them on [Date]
and of resolving voluntarily any dispute or potential dispute or claim that the Employee has
or might have with the Company, whether known or unknown by the Employee at this time. This
Agreement is not and should not be construed as an allegation by Employee, or as an admission
on the part of the Company, that the Company has acted unlawfully or violated any state or
federal law or regulation. The Company, including its parent companies, affiliates,
associated companies, and subsidiaries, specifically disclaim any liability to the Employee or
any other person for any alleged violation of rights or for any alleged violation of any
order, law, statute, duty, policy or contract.

	2.	 	Severance Benefits. As consideration for the Employee agreeing to release the
Company from all claims that are described in Paragraph 6 herein and subject to the provisions
of Paragraph 10 herein, the Company will pay the Employee $[Severance Amount] (______________
Dollars and __________ Cents), less applicable taxes as severance benefits (the “Severance
Benefits”).

	3.	 	Tax Consequences. The Employee acknowledges and agrees that the Company has made no
representations to him regarding the tax consequences of any Severance Benefits received by
him pursuant to this Agreement.

	4.	 	Entire Consideration. The Employee agrees that the Severance Benefits set forth in
Paragraph 2, herein, constitute the entire amount of consideration provided to him under this
Agreement. The Employee further agrees that he will make no claim for any

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	 	 	additional or other severance benefits or payments and that he will not seek any further
compensation for any other claimed damage, costs, severance, income or attorneys’ fees.

	5.	 	Non-Disclosure Agreement. Without the express written agreement of the Company’s
[Highest Officer] or unless required to do so by law, the Employee agrees never to disclose
the existence, facts, terms, or amount of this Agreement, nor the substance of the
negotiations leading to this Agreement, to any person or entity, other than to his personal
counsel or attorney, personal accountants, or personal tax preparer, any such disclosure to
such persons to be made only if the relevant person must have such information for the
performance of his or her responsibilities. To the extent required by law or applicable
regulation, Employee may also disclose the provisions of this Agreement to the appropriate
taxing authorities.

	6.	 	The Employee’s Release Of All Claims Including Age Discrimination In Employment Act
Claims. In consideration of the Severance Benefits, the Employee, for himself, his heirs,
executors, administrators, successors and assigns, does fully and forever release and
discharge the Company, its parent companies, affiliates, associated companies, and
subsidiaries, their respective associated companies and subsidiaries, all of their respective
present and former officers, directors, supervisors, managers, employees, stockholders,
agents, attorneys and representatives, and the successors and assigns of such persons and
entities (collectively, the “Released Parties”), from all actions, lawsuits, grievances,
complaints, liens, demands, obligations, damages, liabilities and claims of any nature
whatsoever, know or unknown, that the Employee had, now has, or may hereafter claim to have
against the Released Parties from the beginning of time through the date the Employee executes
this Agreement. The release provided herein specifically includes, but is not limited to, all
claims arising under any federal, state or local fair employment practice laws, and any other
employee relations statute, executive order, law and ordinance, including, but not limited to,
Title VII of the Civil Rights Acts of 1964, as amended; the Civil Rights Acts of 1866, 1870,
and 1871, as amended; the Civil Rights Act of 1991, as amended; the Age Discrimination in
Employment Act of 1967, as amended; the Older Workers Benefit Protection Act, as amended; the
Americans With Disabilities Act of 1990, as amended; the Family and Medical Leave Act, as
amended; the Equal Pay Act, as amended; the Fair Labor Standards Act, as amended; the Worker
Adjustment and Retraining Notification Act of 1988, as amended; the Employee Retirement
Income Security Act of 1974, as amended; Section 806 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. §1514A, et seq.); the Rehabilitation Act of 1973 (29 U.S.C. Section 791 et seq.); the
Occupational Safety and Health Act (29 U.S.C. § 651, et seq.); the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (COBRA); the National Labor Relations Act, as amended;
the [Applicable State Laws], as amended; any local human rights law; and any tort or contract
cause of action or theory.
	 
	 	 	The Employee expressly represents and agrees that he has been advised that, by entering into
this Agreement, he is waiving all claims that he may have against the Company arising under
the Age Discrimination in Employment Act of 1967, as amended, which have arisen on or before
the date of execution of this Agreement.

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	7.	 	Covenants Concerning Claims. The Employee agrees that he will not file any
complaints, claims or actions against the Released Parties with any court regarding any
matters or claims that arose prior to the Employee’s execution of this Agreement. If any
court assumes jurisdiction on behalf of the Employee of any complaint, claim or action against
the Company, he will direct that court to withdraw from or dismiss with prejudice the matter.

	 	 	Notwithstanding the preceding provision or any other provision of the Agreement, Employee’s
agreement to the provisions under Section 6, or the paragraph immediately above this
paragraph, is not intended to prohibit Employee from bringing an action to challenge the
validity of the release of claims under the Age Discrimination in Employment Act, as
amended, or the Older Worker’s Benefit Protection Act, as amended. The Employee further
understands and agrees that if he or someone acting on his behalf files, or causes to be
filed, any such claim, charge, complaint, or action against the Released Parties, he
expressly waives any right to recover any damages or other relief, whatsoever, from the
Released Parties including costs and attorneys’ fees.

	 	 	This Agreement is not intended to interfere with Employee’s right to file a charge with an
administrative agency in connection with any claim Employee believes he may have against any
of the Released Parties. However, by executing this Agreement, Employee hereby waives the
right to recover, and agrees not to seek any damages, remedies or other relief for himself
personally in any proceeding he may bring before such agency or in any proceeding brought by
such agency, or any other person, on his behalf. This Agreement is also not intended to
apply to claims for accrued benefits (other than severance-type benefits) under any benefit
plan of the Released Parties pursuant to the terms of any such plan.

	 	 	Employee understands that he is not releasing rights under this Agreement, that any claims
that cannot be lawfully waived are excluded from this Agreement and that by executing this
Agreement he is not waiving any such claims. Likewise, Employee is not releasing any rights
or claims that may arise after the date on which he signs this Agreement. In addition,
while this Agreement requires Employee to waive any and all claims against the Released
Parties arising under workers’ compensation laws (e.g., claims of retaliation for filing a
workers’ compensation claim), it is not intended to prohibit Employee from filing in good
faith for and from receiving any workers’ compensation benefits from Released Parties’
workers’ compensation carrier for compensable injuries incurred during his employment.
Accordingly, pursuit of any such workers’ compensation benefits with Released Parties’
workers’ compensation carrier or third-party administrator will not be considered a
violation of this Agreement.

	8.	 	Employee Acknowledgments. Employee acknowledges and agrees that:

	 	a.	 	In return for and in consideration of his execution, delivery and performance
of this Agreement, the Company is providing to the Employee the Severance Benefits.

-24-

 

	 	b.	 	The Employee is hereby advised in writing by this Agreement to consult with an
attorney before signing this Agreement.
	 
	 	c.	 	The Employee does not waive rights or claims that may arise after the date this
Agreement is signed.
	 
	 	d.	 	In return for signing this Agreement, the Employee will receive payment of
consideration beyond that which he was entitled to receive before entering into this
Agreement.

	9.  	 	Twenty-One (21) Day Review Period. The Employee acknowledges that he was provided
this Agreement more than 21 days before the date when he was required to make an election
concerning the Severance Benefits. If the Employee signs this Agreement prior to the end of
the 21-day period, he certifies and agrees that the decision to accept such shortening of time
is knowing and voluntary and is not induced by the Company through: (i) fraud,
misrepresentation, or a threat to withdraw or alter the offer prior to the end of the 21-day
period; or (ii) an offer to provide different terms in exchange for signing the Release prior
to the expiration of the 21-day period. Should the Employee sign this Agreement before the
expiration of the 21-day period, the Company may at its option and discretion expedite the
processing of some or all of the Severance Benefits, subject to the revocation period set
forth in Paragraph 10.

	10.	 	Seven (7) Day Revocation Period. The Employee understands that he may revoke this
Agreement at any time within seven (7) days after he executes it. To revoke the Agreement,
the Employee must deliver written notification of such revocation to _____________, or in
_____________’s absence to _____________’s office, within seven (7) days after the date of the
Employee’s execution of this Agreement. The Employee further understands that if he does not
revoke the Agreement within seven (7) days following its execution (excluding the date of
execution), it will become effective, binding, and enforceable. The Employee understands that
he will not receive the Severance Benefits until this Agreement becomes effective, binding,
and enforceable, which shall not occur prior to the eighth day following the Employee’s
execution of this Agreement.

	11.	 	Employee Representations. The Employee represents that:

	 	a.	 	he has reviewed all aspects of this Agreement;
	 
	 	b.	 	he has carefully read and fully understands all of the provisions and effects
of this Agreement;
	 
	 	c.	 	he has had the opportunity to consult with an attorney before signing this
Agreement.
	 
	 	d.	 	he understands that in agreeing to the terms of this Agreement he is releasing
the Released Parties from any and all claims he may have against the Company, and

-25-

 

	 	 	 	all persons acting by, through, under or in concert with the Company, including
claims under the federal Age Discrimination in Employment Act of 1967, as amended,
as well as any claims for age discrimination that may exist under Texas law or any
other applicable law, as more particularly described in Paragraph 7 herein;
	 
	 	e.	 	he voluntarily agrees to all the terms set forth in this Agreement;
	 
	 	f.	 	he has not filed, caused to be filed, and presently is not a party to any
claim, complaint, or action against the Released Parties in any forum or form, whether
administrative or otherwise; and
	 
	 	g.	 	as of the time of execution of this Agreement by Employee, Employee is unaware
of any facts or conduct that would give rise to a claim against the Released Parties of
any type or sort, including those types of claims or other violations set forth
generally and specifically above, including but not limited to, any claims under the
Family Medical Leave Act of 1993 or the Fair Labor Standards Act.

	12.	 	Return of Company Property and Confidentiality Obligations. The Employee agrees that
on or before [Date], the Employee shall return or shall have returned all Company Property and
Confidential Information (as defined below). “Company Property” means all property of the
Company, including, but not limited to, Company issued/owned computers, laptops, peripheral
electronic equipment (e.g., printers, cameras, projectors, computer docking stations, etc.),
Blackberry or other personal digital assistants (PDAs), cellular telephones, credit cards,
keys, door cards, tools, equipment on loan, and any other Company books, manuals, and
journals. “Confidential Information” means all confidential, sensitive or proprietary
information belonging to the Company, including, but not be limited to, all business records,
manuals, memoranda, computer records, electronic files, lists and other property delivered to
or compiled by the Employee by or on behalf of Company, or its representatives, vendors or
customers that pertain to the business of Company, as well as all correspondence, reports,
records, charts, and other similar data pertaining to the business, activities or future plans
of Company that was collected by the Employee during his employment with the Company. For
purposes of this Paragraph 12 and Paragraph 13, “Company” shall include all parent companies,
affiliates, associated companies, and subsidiaries.
	 
	 	 	The Employee further acknowledges and agrees that the Employee is obligated to not, at any
time, disclose or otherwise make available to any person, company or other party
Confidential Information or trade secrets of the Company, its parent, associated companies,
affiliates, and subsidiaries This Agreement shall not limit any obligations the Employee has
under any applicable federal or state law.

	13.	 	Non-disparagement. The Employee agrees not to make any disparaging or negative
statements about the Company, its services or its current or former directors, officers,
supervisors, managers, or employees. Statements made in the course of any litigation or legal
proceeding, whether disparaging or negative, are excluded from coverage of this

-26-

 

	 	 	Paragraph.

	14.	 	Voluntary Action. The Employee represents and agrees that he is knowingly and
voluntarily entering into this Agreement, and that he has relied solely and completely upon
his own judgment or the advice of his attorney in entering into this Agreement.

	15.	 	Entire Agreement. This Agreement sets forth the entire agreement between the
Employee and the Company and fully supersedes and replaces any and all prior agreements or
understandings, written or oral, between the Company and the Employee pertaining to the
subject matter of this Agreement. The Employee and the Company represent and acknowledge that
in executing this Agreement they do not rely upon and have not relied upon any representation
or statement made by any of the parties or by any of the parties’ agents, attorneys,
employees, or representatives with regard to the subject matter, basis, or effect of this
Agreement or otherwise, other than those specifically stated in this written Agreement.

	16.	 	Partial Invalidity. Should any provision of this Agreement be declared or be
determined by any court of competent jurisdiction to be illegal, invalid or unenforceable, all
remaining provisions of this Agreement shall otherwise remain in full force and effect and be
construed as if such illegal, invalid or unenforceable provision had not been included herein.

[remainder of page intentionally left blank]

-27-

 

	17.	 	Governing Law. This Agreement will be governed by, and construed and interpreted in
accordance with, the laws of the State of Texas without regard to principles of conflict of
laws.

	 	 	 

	 

	 	QUANTA SERVICES, INC.:
	 
	 	 
	Dated:                                        
	 	 
	 

	 	 
	 
	 	 
	 

	 	By _______________________
	 
	 	 
	 

	 	EMPLOYEE:
	 
	 	 
	Dated:                                        
	 	 
	 

	 	 
	 

	 	John R. Colson

	 	 	 	 	 
	THE STATE OF __________

	 	§
	 	 
	 

	 	§	 	 
	COUNTY OF ______________

	 	§	 	 

     The foregoing instrument was SWORN TO AND SUBSCRIBED BEFORE ME BY JOHN R. COLSON AND GIVEN
UNDER MY HAND AND SEAL OF OFFICE on this the ______ day of _______, A.D., 20_.

	 	 	 	 	 

	 

	 	 

               Notary Public in and for
	 	 
	 

	 	               the State of _________	 	 

My commission expires: _______________

-28-

 

EXHIBIT C

Pre-Employment Inventions

None

-29-exv10w2

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement (the “Agreement”) is entered into between Quanta Services,
Inc. (“Quanta”) and James F. O’Neil III (“Employee”) on this 24th day of
March, 2011, but effective as of May 19, 2011 (the “Effective Date”).

I. RECITALS

     As of the date of this Agreement, the Employer Group (as defined below) is engaged primarily
in the business of specialty contracting for customers in the electric power, natural gas, oil,
pipeline, renewable energies and telecommunications industries, as well as for transportation,
commercial and industrial customers. As such, the Employer Group has developed and continues to
develop and use certain trade secrets and other Proprietary and Confidential Information, as
hereinafter defined. The Employer Group has spent a substantial amount of time, effort and money,
and will continue to do so in the future, to develop or acquire such Proprietary and Confidential
Information and promote and increase its good will. Employer (as defined below) and Employee
acknowledge and agree that Proprietary and Confidential Information is an asset of particular and
immeasurable value to the Employer Group.

     Pursuant to this Agreement, Employee shall be employed by Employer in a confidential and
fiduciary relationship and such Proprietary and Confidential Information will necessarily be
provided to, communicated to, or acquired by Employee by virtue of his employment with Employer.

     Based upon the above, Employer desires to retain the services of Employee on its own behalf,
as well as on the behalf of its subsidiaries and affiliated companies and, in so doing, protect its
Proprietary and Confidential Information subject to the terms and conditions set forth herein.

II. DEFINITIONS

     A. For purposes of this Agreement, “Employer” shall mean Quanta or any other
affiliated entity that is deemed to be the employer of Employee, and “Employer Group” shall
mean Quanta and its predecessors, designees, successors, and past, present and future operating
companies, divisions, subsidiaries and/or affiliates.

     B. As used in this Agreement, “Proprietary and Confidential Information” means any and
all non-public information or data in any form or medium, tangible or intangible, which has
commercial value and which the Employer Group possesses or to which the Employer Group has rights.
Proprietary and Confidential Information includes, by way of example and without limitation,
information concerning the Employer Group’s specific manner of doing business, including, but not
limited to, the processes, methods or techniques utilized by the Employer Group, the Employer
Group’s customers, marketing strategies and plans, pricing information, sources of supply and
material specifications, the Employer Group’s computer programs, system documentation, special
hardware, related software development, and the Employer Group’s business models, manuals,
formulations, equipment, compositions, configurations, know-how, ideas, improvements and
inventions.

 

 

     Proprietary and Confidential Information also includes information developed by Employee
during his course of employment with Employer or otherwise relating to Company-Related Inventions
and Developments, as hereinafter defined, as well as other information to which he may be given
access to in connection with his employment.

     C. As used in this Agreement, “Inventions and Developments” means any and all
inventions, developments, creative works and useful ideas of any description whatsoever, whether or
not patentable. Inventions and Developments include, by way of example and without limitation,
discoveries and improvements that consist of or relate to any form of Proprietary and Confidential
Information.

     D. As used in this Agreement, “Company-Related Inventions and Developments” means all
Inventions and Developments that: (a) relate at the time of conception or development to the actual
business of the Employer Group or to its actual research and development or to business or research
and development that is the subject of active planning at the time; (b) result from or relate to
any work performed for Employer, whether or not during normal business hours; (c) are developed on
Employer’s time; or (d) are developed through the use of the Employer Group’s Proprietary and
Confidential Information, equipment, software, or other facilities and resources.

     E. For purposes of this Agreement, “make” or “made,” when used in relation to
Inventions and Developments, includes any one or any combination of: (a) conception; (b) reduction
to practice; or (c) development; and is without regard to whether Employee is a sole or joint
inventor.

     F. For purposes of this Agreement, “Change in Control” shall mean:

          1. Any person or entity, or more than one person or entity acting as a group, other than a
member of the Employer Group or an employee benefit plan of the Employer Group, acquires directly
or indirectly Beneficial Ownership (as defined in Section 13(d) of the Securities Exchange Act of
1934, as amended) of any Voting Security of Quanta and immediately after such acquisition such
person, entity or group is, directly or indirectly, the Beneficial Owner of Voting Securities
representing fifty percent (50%) or more of the total fair market value or total voting power of
all of the then-outstanding Voting Securities of Quanta; or

          2. Any person or entity, or more than one person or entity acting as a group, other than a
member of the Employer Group or an employee benefit plan of the Employer Group, acquires directly
or indirectly, or has acquired during the preceding twelve (12) months, Beneficial Ownership (as
defined in Section 13(d) of the Securities Exchange Act of 1934, as amended) of any Voting Security
of Quanta and immediately after such acquisition such person, entity or group is, directly or
indirectly, the Beneficial Owner of Voting Securities representing thirty percent (30%) or more of
the total voting power of all of the then-outstanding Voting Securities of Quanta; or

          3. Individuals who, as of the date hereof, constitute the Board of Directors of Quanta (the
“Board”), and any new director whose election by the Board or nomination for election by
Quanta’s stockholders was approved by a vote of a majority of the directors then still

-2-

 

in office who were directors as of the date hereof or whose election or nomination for
election was previously so approved, cease for any reason to constitute at least a majority of the
members of the Board within a 12-month period; or

          4. Any person or entity, or more than one person or entity acting as a group, other than a
member of the Employer Group or an employee benefit plan of the Employer Group, acquires directly
or indirectly, or has acquired during the preceding 12-months, forty percent (40%) or more of the
total gross fair market value of assets of the Employer Group.

     G. For purposes of this Agreement, “Voting Security” means common stock or other
capital stock, including preferred stock, of the applicable entity entitled generally to vote in
the election of directors and preferred stock and other equity securities (not including options,
warrants or similar rights) convertible into securities entitled generally to vote in the election
of directors (whether or not then convertible).

III. TERMS OF EMPLOYMENT

     A. Position and Duties. Employee is hereby employed by Employer as President and
Chief Executive Officer. Employee shall have the primary responsibilities, duties and authority
described in Exhibit A hereto, as the same may be modified from time to time by the Board
in its discretion in a manner consistent with Employee’s position. Employee shall devote his full
business time, attention and effort to the performance of this Agreement and to his duties as
described herein.

          1. Employee shall faithfully adhere to, execute and fulfill the duties described in
Exhibit A hereto, as in effect from time to time.

          2. Employee agrees to devote reasonable attention and time to the business and affairs of
Employer and, to the extent necessary, to discharge the responsibilities assigned to Employee
hereunder, to use Employee’s reasonable best efforts to perform faithfully and efficiently such
responsibilities.

          3. Employee shall not, during the term of his employment, be engaged in any other business
activity pursued for gain, profit or other pecuniary advantage if such activity interferes with
Employee’s duties and responsibilities to Employer. The foregoing limitations shall not be
construed as prohibiting Employee from serving on corporate, civic or charitable boards or
committees, delivering lectures or fulfilling speaking engagements, teaching at educational
institutions, or making personal investments, so long as such activities do not significantly
interfere with the performance of Employee’s responsibilities to Employer as set forth in this
Agreement.

          4. In the performance of his duties, Employee shall use his best efforts to adhere to the
legal requirements codified in statutes, ordinances and governmental regulations applicable to
Employer.

     B. Term. The initial term of this Agreement shall begin on the Effective Date and
shall continue for two (2) years, unless terminated sooner pursuant to the provisions of this
Agreement (the “Initial Term”). At the expiration of the Initial Term, unless terminated
sooner

-3-

 

pursuant to the provisions of this Agreement, and each annual anniversary thereafter, this
Agreement will renew automatically for an additional one (1) year period (the “Renewal
Term”) unless either party notifies the other party in writing of its or his intention not to
renew this Agreement (the “Renewal Termination Notice”) not less than six (6) months prior
to the expiration of the Initial Term or of any Renewal Term (the Initial Term and any Renewal Term
are referred to collectively as the “Term”).

          1. Termination upon Death. This Agreement (and all of Employee’s rights and
Employer’s obligations hereunder) shall terminate as of the date of Employee’s death.

          2. Termination upon Disability. If Employee becomes Disabled as defined herein,
Employer may, by written notice to Employee, terminate this Agreement and Employee’s employment
hereunder. For purposes of this Agreement, “Disabled” or “Disability” means, as
determined by the Compensation Committee of the Board (the “Committee”), that (i) Employee
is unable to engage in any substantial gainful activity by reason of a physical or mental
impairment that is expected to result in death or last twelve (12) months or more, or Employee
receives replacement income for three (3) months or more due to such physical or mental impairment
or (ii) such other definition that complies with the definition of disability under Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated
thereunder.

          3. Termination for Cause. Employer may terminate this Agreement and Employee’s
employment hereunder for Cause by providing written notice to Employee of its intention to do so.
For purposes of this Agreement, “Cause” shall mean:

               a. Employee’s gross negligence in the performance of, intentional nonperformance of, or
inattention to his material duties and responsibilities hereunder, any of which continue for five
(5) business days after receipt of written notice of need to cure the same;

               b. Employee’s willful dishonesty, fraud or material misconduct with respect to the business or
affairs of Employer;

               c. the violation by Employee of any of Employer’s policies or procedures, which violation is
not cured by Employee within five (5) business days after Employee has been given written notice
thereof;

               d. a conviction of, a plea of nolo contendere, a guilty plea, or confession by Employee to, an
act of fraud, misappropriation or embezzlement or any crime punishable as a felony or any other
crime that involves moral turpitude;

               e. Employee’s use of illegal substances or habitual drunkenness; or

               f. the breach by Employee of this Agreement if Employee does not cure such breach within five
(5) business days after Employee has been given written notice thereof.

     4. Termination for Good Reason. Employee may terminate this Agreement and his
employment hereunder for Good Reason in the twelve (12) months following a Change

-4-

 

in Control by providing written notice to Employer of his intention to do so. For purposes of
this Agreement, “Good Reason” shall mean:

               a. the assignment to Employee of any duties inconsistent with Employee’s position (including
offices, titles and reporting requirements), authority, duties or responsibilities as contemplated
by Section III.A of this Agreement and as in effect immediately prior to the Change in Control, or
any other action by Employer that results in a diminution in such position, authority, duties or
responsibilities (excluding for this purpose an isolated, insubstantial and inadvertent action not
taken in bad faith);

               b. any material breach of this Agreement by Employer, including any requirement that Employee
be based at any office or location that results in a violation of Section III.E of this Agreement;

               c. any failure by Employer to comply with any of the provisions of Section IV of this
Agreement (excluding for this purpose an isolated, insubstantial and inadvertent action not taken
in bad faith);

               d. any failure by Employer to continue in effect any cash or stock-based incentive or bonus
plan, retirement plan, welfare benefit plan or other compensation, retirement or benefit plan and
policy, unless the aggregate value (as computed by an independent employee benefits consultant
selected by Employer and reasonably acceptable to Employee or Employee’s legal representative) of
all such compensation, retirement or benefit plans and policies provided to Employee is not
materially less than their aggregate value as in effect at any time during the one hundred twenty
(120) day period immediately preceding a Change in Control or, if more favorable to Employee, those
provided generally at any time after the Change in Control to other peer employees of Employer and
its affiliated companies;

               e. Employee’s receipt from Employer of a Renewal Termination Notice as provided in Section
III.B; and

               f. in the event of a pending Change in Control, Employer and Employee have not received
written notice at least five (5) business days prior to the anticipated closing date of the
transaction giving rise to the Change in Control from the successor to all or a substantial portion
of the Employer Group’s business and/or assets that such successor is willing as of the closing to
assume and agree to perform Employer’s obligations under this Agreement in the same manner and to
the same extent that Employer is hereby required to perform.

Employee must provide written notice to Employer of the existence of the condition(s) described in
Section III.B.4.a through Section III.B.4.d above within 90 days of the initial existence of the
condition(s). Employer shall have 30 days after such notice is given during which to remedy the
condition(s), and such occurrence shall not be deemed to constitute Good Reason if such event or
circumstance has been fully corrected by Employer within the 30 day cure period and Employee has
been reasonably compensated for monetary losses or damages resulting therefrom.

     C. Notice of Termination. Any termination by Employer for Cause or Disability or by
Employee for Good Reason shall be communicated by a Notice of Termination provided to the other
party pursuant to the provisions of Section IX.C of this Agreement. For purposes of

-5-

 

this Agreement, “Notice of Termination” means a written notice that: (1) indicates the
specific termination provision or provisions as set forth in this Agreement relied upon by either
Employer or Employee; (2) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide the basis for termination under the provision or provisions of
this Agreement relied upon by either Employer or Employee; and (3) if the Date of Termination (as
defined below) is other than the date of receipt of such Notice of Termination, specifies the
termination date. The failure by either Employer or Employee to set forth in the Notice of
Termination any fact or circumstance that contributes to a showing of Cause or Good Reason shall
not waive any right of Employer or Employee or preclude Employer or Employee from asserting such
fact or circumstance in enforcing Employer’s or Employee’s rights or obligations under this
Agreement.

     D. Date of Termination. According to this Agreement, “Date of Termination”
shall mean: (1) if Employee’s employment is terminated for Cause or Disability, or by Employee for
Good Reason, the date of receipt of the Notice of Termination or any later date specified therein
or as required under this Agreement; (2) if Employee’s employment is terminated by Employer other
than for Cause or Disability, the Date of Termination shall be the date on which Employer notifies
Employee of such termination; (3) if Employee’s employment is terminated by reason of death, the
Date of Termination shall be the date of the death of Employee; or (4) if Employee voluntarily
terminates his employment, the Date of Termination shall be the date on which Employee and Employer
shall agree to be the Date of Termination.

     E. Place of Performance. Nothing contained in this Agreement shall be deemed to
require Employee to relocate from Employee’s present residence to another geographic location in
order to carry out Employee’s duties and responsibilities under this Agreement, other than normal
business travel consistent with Employee’s duties, responsibilities and position.

IV. COMPENSATION 

     A. Annual Base Salary. Employer agrees to compensate and pay Employee, or to cause
Employee to be compensated and paid, an annual base salary of $750,000, payable on a regular basis
in accordance with Employer’s standard payroll procedures but not less frequently than monthly.

     On at least an annual basis, the Board or a duly constituted committee thereof will review
Employee’s performance and may make increases to Employee’s annual base salary if, in its sole
discretion, any such increase is warranted.

     B. Bonus. Employee shall participate in Employer’s annual and supplemental incentive
bonus plans at a level commensurate with Employee’s position. Employee may participate in other
current and future incentive bonus plans as determined by the Board or a duly constituted committee
thereof.

     C. Incentive, Savings and Retirement Plans. Employee shall be entitled to participate
in all incentive, savings and retirement plans, practices, policies and programs generally
applicable to other peer employees of Employer.

-6-

 

     D. Welfare Benefit Plans. Employee and Employee’s dependents shall receive coverage
under the welfare benefit plans, practices, policies and programs provided by Employer including,
but not limited to, medical, prescription, dental, disability, employee life, group life,
accidental death and travel accident insurance plans and programs, generally applicable to other
peer employees of Employer, the terms and conditions of which shall be no less favorable than those
available to other similarly situated officers of Employer.

     E. Reimbursement of Expenses. Employer shall reimburse Employee or cause Employee to
be promptly reimbursed for all reasonable and necessary expenses incurred by Employee in
furtherance of the business and affairs of the Employer Group including, but not limited to, all
travel expenses and living expenses while away from home on business or at the request of Employer
or the Board. Such reimbursement shall be effected as soon as reasonably practicable after such
expenditures are made, against presentation of signed, itemized expense reports in accordance with
the travel and business expense reimbursement policies of Employer.

     F. Severance Benefits upon Termination. As set forth below, the following obligations
are imposed upon Employer upon termination of this Agreement; provided, however, that to be
entitled to such severance benefits, Employee will be required to execute, and not revoke, a
Confidential Severance Agreement and Release provided by Employer as more fully described in
Section IV.I below.

          1. Death. If Employee’s employment is terminated due to his death, Employee shall not
be entitled to any severance benefits under the terms of this Agreement.

          2. Disability. If Employee’s employment is terminated due to his Disability, Employee
shall be entitled to severance benefits equal to one (1) year of Employee’s annual base salary.
Subject to Employee’s compliance with the requirements of Section IV.I below, such severance
benefits shall be paid to Employee in a lump-sum payment within sixty (60) days of the Date of
Termination.

          3. Cause. If Employee’s employment is terminated for Cause as defined under this
Agreement, Employee shall not be entitled to any severance benefits under the terms of this
Agreement.

          4. Without Cause. If Employee’s employment is terminated by Employer without Cause
(other than within the twelve (12) months following a Change in Control), Employee shall be
entitled to severance benefits equal to two (2) years of Employee’s annual base salary. Subject to
Employee’s compliance with the requirements of Section IV.I below, such severance benefits shall be
paid to Employee in a lump-sum payment within sixty (60) days of the Date of Termination. In the
event that Employee is entitled to receive severance benefits under Section IV.G.1, Employee will
not be entitled to receive severance benefits under this Section.

          5. Resignation by Employee. If Employee resigns his employment, Employee shall not be
entitled to any severance benefits under the terms of this Agreement unless Employee resigns his
employment for Good Reason within the twelve (12) months following a Change in Control as described
in Section IV.G.2 below.

-7-

 

     G. Severance Benefits upon Change in Control.

          1. Termination without Cause. In the event Employee is terminated without Cause by
Employer within twelve (12) months following a Change in Control, Employee shall be entitled to the
following:

               a. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times
Employee’s base salary at the rate then in effect; and

               b. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times the
higher of (i) the highest annual cash bonus paid (or earned if not yet paid) to Employee for the
three (3) fiscal years preceding Employee’s termination under Employer’s annual incentive bonus
plan or a direct predecessor thereto or replacement thereof or (ii) Employee’s target annual cash
bonus payable, including any bonus or portion thereof which has been earned but deferred, under
Employer’s annual incentive bonus plan or a direct predecessor thereto or replacement thereof for
the current fiscal year or, if such target bonus has not yet been determined, for the most recently
completed fiscal year; and

               c. for a period of three (3) years following Employee’s termination continuation of medical,
dental and vision benefit coverage for Employee and Employee’s dependents at least equal to those
that would have been provided to the same in accordance with the plans, programs, practices and
policies described in Section IV.D of this Agreement if Employee’s employment had not been
terminated or, if more favorable to Employee, as in effect generally at any time thereafter with
respect to other peers of Employee; provided, however, that if Employee becomes reemployed with
another employer and is eligible to receive medical, dental or vision benefits under another
employer provided plan, the medical, dental and vision benefits described herein shall be secondary
to those provided under such other plan during such applicable period of eligibility.

In the event that Employee is entitled to receive severance benefits under this Section V.G.1,
Employee will not be entitled to receive severance benefits under Section IV.F.4.

          2. Termination by Employee with Good Reason. In the event Employee terminates his
employment for Good Reason within twelve (12) months following a Change in Control, Employee shall
be entitled to:

               a. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times
Employee’s base salary at the rate then in effect;

               b. a lump-sum payment, due on the Date of Termination, of a sum equal to three (3) times the
higher of (i) the highest annual cash bonus paid (or earned if not yet paid) to Employee for the
three (3) fiscal years preceding Employee’s termination under Employer’s annual incentive bonus
plan or a direct predecessor thereto or replacement thereof or (ii) Employee’s target annual cash
bonus payable, including any bonus or portion thereof which has been earned but deferred, under
Employer’s annual incentive bonus plan or a direct predecessor thereto or replacement thereof for
the current fiscal year or, if such target bonus has not yet been determined, for the most recently
completed fiscal year; and

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               c. for a period of three (3) years following Employee’s termination continuation of medical,
dental and vision benefit coverage for Employee and Employee’s dependents at least equal to those
that would have been provided to the same in accordance with the plans, programs, practices and
policies described in Section IV.D of this Agreement if Employee’s employment had not been
terminated or, if more favorable to Employee, as in effect generally at any time thereafter with
respect to other peers of Employee; provided, however, that if Employee becomes reemployed with
another employer and is eligible to receive medical, dental or vision benefits under another
employer provided plan, the medical, dental and vision benefits described herein shall be secondary
to those provided under such other plan during such applicable period of eligibility.

          3. Limitation on Severance Benefits. Anything in this Agreement to the contrary
notwithstanding, in the event that it shall be determined (as herein after provided) that any
payment or distribution by Employer or any of its affiliates to or for the benefit of Employee,
whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise pursuant to or by reason of any other agreement, policy, plan, program, or arrangement
including, without limitation, any stock option, restricted stock, stock appreciation right or
similar right, or the lapse or termination of any restriction on, or the vesting or exercisability
of, any of the foregoing (individually and collectively, a “Payment”), would be subject,
but for the application of this Section IV.G.3 to the excise tax imposed by Section 4999 of the
Code, or any successor provision thereto (hereinafter the “Excise Tax”), by reason of being
considered “contingent on a change in ownership or control” of Employer, within the meaning of
Section 280G(b)(2) of the Code, or any successor provision thereto, then:

               a. if the After-Tax Payment Amount would be greater by reducing the amount of the Payment
otherwise payable to Employee to the minimum extent necessary (but in no event less than zero) so
that, after such reduction, no portion of the Payment would be subject to the Excise Tax, then the
Payment shall be so reduced; and

               b. if the After-Tax Payment Amount would be greater without the reduction then there shall be
no reduction in the Payment.

     As used in this Section IV.G.3, “After-Tax Payment Amount” means (i) the amount of the
Payment, less (ii) the amount of federal income taxes payable with respect to the Payment
calculated at the maximum marginal income tax rate for each year in which the Payment shall be paid
to Employee (based upon the rate in effect for such year as set forth in the Code at the time of
the Payment), less (iii) the amount of the Excise Tax, if any, imposed upon the Payment. For
purposes of any reduction made under Section IV.G.3.a, the Payments that shall be reduced shall be
those that provide Employee the best economic benefit, and to the extent any Payments are
economically equivalent, each shall be reduced pro rata.

     H. Compliance with Section 409A of the Code. The payments to be made under this
Agreement are intended to be exempt from or compliant with Section 409A of the Code. Specifically,
the severance payments and benefits under Section IV.F and Section IV.G hereof are intended to be
exempt from Section 409A of the Code by compliance with the short-term deferral exemption as
specified in 26 C.F.R. Section 1.409A-1(b)(4) and/or the separation pay exemption as specified in
26 C.F.R. Section 1.409A-1(b)(9) or are intended to comply with

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Section 409A of the Code including, but not limited to, being paid upon disability pursuant to
26 C.F.R. Section 1.409-3(i)(4), pursuant to change in control event pursuant to 26 C.F.R. Section
1.409A-3(i)(5) or pursuant to a fixed schedule or specified date pursuant to 26 C.F.R. Section
1.409A-3(a), and the provisions of this Agreement will be administered, interpreted and construed
accordingly. Notwithstanding the foregoing, Employer makes no representation or warranty and shall
have no liability to Employee or any other person if any provisions of this Agreement are
determined to constitute deferred compensation subject to Section 409A of the Code and do not
satisfy an exemption from, or the conditions of, Section 409A of the Code.

     For all purposes of this Agreement, Employee shall be considered to have terminated employment
with Employer when Employee incurs a “separation from service” with the Employer Group within the
meaning of Section 409A(a)(2)(A)(i) of the Code.

     If the Committee determines that severance payments due under this Agreement on account of
termination of Employee’s employment constitute “deferred compensation” subject to Section 409A of
the Code, and that Employee is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the
Code and 26 C.F.R. Section 1.409A-1(i), then such severance payments shall commence on the first
payroll date of the seventh month following the month in which Employee’s termination occurs (with
the first such payment being a lump sum equal to the aggregate severance payments Employee would
have received during the prior six-month period if no such delay had been imposed). For purposes
of this Agreement, whether Employee is a “specified employee” will be determined in accordance with
the written procedures adopted by the Committee which are incorporated by reference herein.

     All reimbursements and in-kind benefits provided under this Agreement shall be made or
provided in accordance with the requirements of Section 409A of the Code and the regulations to the
extent that such reimbursements or in-kind benefits are not excepted from Section 409A of the Code,
including where applicable, the requirement that (i) any reimbursement is for expenses incurred
during Employee’s lifetime (or during a shorter period of time specified in the Agreement); (ii)
the amount of expenses eligible for reimbursement during the calendar year may not affect the
expenses eligible for reimbursement in any other calendar year; (iii) the reimbursement of an
eligible expense will be made on or before the last day of the calendar year following the year in
which the expense is incurred; and (iv) the right to reimbursement is not subject to set off or
liquidation or exchange for any other benefit.

     I. Confidential Severance Agreement and Release. Notwithstanding any provision herein
to the contrary, if Employee has not delivered to Employer an executed Confidential Severance
Agreement and Release (the “Release”) on or before the fiftieth (50th) day after the Date
of Termination, or if Employee revokes such executed Release prior to the sixtieth (60th) day after
the Date of Termination, Employee shall forfeit all of the payments and benefits described in
Section IV.F.2 or Section IV.F.4, as applicable; provided, however, that Employee shall not forfeit
such amounts if Employer has not delivered to Employee the required form of Release on or before
the 25th day following the Date of Termination. A form of Release is attached as Exhibit B
hereto. Employee acknowledges that Employer retains the right to modify the required form of the
Release as Employer deems necessary in order to effectuate a full and complete release of claims
against the Employer Group and its affiliates, officers and directors.

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V. COMPANY-RELATED INVENTIONS AND DEVELOPMENTS

     A. Records of Inventions. Employee shall keep complete and current written records of
Inventions and Developments made during the course of his employment with Employer and promptly
disclose all such Inventions and Developments in writing to Employer so that it may adequately
determine its rights in such Inventions and Developments. Employee shall supplement any such
disclosure to the extent Employer may request. If Employee has any doubt as to whether or not to
disclose any Inventions and Developments, Employee shall disclose the same to Employer.

     B. Ownership of Inventions. All Company-Related Inventions and Developments made by
Employee during the term of his employment with Employer shall be the sole and exclusive property
of the applicable member(s) of the Employer Group. Employee shall assign, and does hereby assign,
his entire right, title and interest in such Company-Related Inventions and Developments to the
applicable member(s) of the Employer Group. Employer’s ownership and the foregoing assignment
shall apply, without limitation, to all rights under the patent, copyright, and trade secret laws
of any jurisdiction relating to Company-Related Inventions and Developments. If Employee asserts
any property right in any Inventions and Developments made by Employee during the term of his
employment with Employer, Employee shall promptly notify Employer of the same in writing.

     C. Cooperation with Employer. Employee shall assist and fully cooperate with Employer
in obtaining and maintaining the fullest measure of legal protection which the Employer Group
elects to obtain and maintain for Inventions and Developments in which the Employer Group has a
property right. Employee shall execute any lawful document requested by Employer relating to
obtaining and maintaining legal protection for any said Inventions and Developments including, but
not limited to, executing applications, assignments, oaths, declarations and affidavits. Employee
shall make himself available for interviews, depositions and testimony relating to any said
Inventions and Developments. These obligations shall survive the termination of Employee’s
employment with Employer, provided that Employer shall compensate Employee at a reasonable rate
after such termination for time actually spent by Employee at Employer’s requests on such
assistance. In the event Employer is unable for any reason whatsoever to secure Employee’s
signature to any document reasonably necessary or appropriate for any of the foregoing purposes
including, but not limited to, renewals, extensions, continuations, divisions or continuations in
part, in a timely manner, Employee irrevocably designates and appoints Employer and its duly
authorized officers and agents as his agents and attorneys-in-fact to act for Employee and on his
behalf, but only for purposes of executing and filing any such document and doing all other
lawfully permitted acts to accomplish the foregoing purposes with the same legal force and effect
as if executed by Employee.

     D. Pre-employment Inventions. Employee shall completely identify on Exhibit C
attached hereto, without disclosing any trade secret or other proprietary and confidential
information, all Inventions and Developments made by Employee prior to his employment with Employer
or prior to execution of this Agreement in which Employee has an ownership interest and which is
not the subject matter of an issued patent or a printed publication at the time Employee executes
this Agreement.

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     E. Disclosure of Inventions after Termination. Employee shall promptly and completely
disclose in writing to Employer’s law department all Company-Related Inventions and Developments
made by Employee during the one (1) year immediately following Employee’s termination of
employment, whether voluntarily or involuntarily, for the purposes of determining Employer’s rights
in each such invention. It will be presumed that Company-Related Inventions and Developments
conceived by Employee which are reduced to practice within one (1) year after termination of
Employee’s employment, whether voluntary or involuntary, were conceived during the term of
Employee’s employment with Employer unless Employee is able to establish a later conception date by
clear and convincing evidence.

VI. OBLIGATIONS RELATING TO PROPRIETARY

AND CONFIDENTIAL INFORMATION

     A. Obligations of Employer.

          1. Proprietary and Confidential Information. Employer shall provide Employee, during
his employment, with valuable Proprietary and Confidential Information for the purpose of assisting
Employee in the performance of his job requirements and responsibilities with Employer. In
addition, Employer shall provide to Employee, during his employment, with the equipment, materials
and facilities necessary to assist Employee in the performance of his job requirements and
responsibilities with Employer.

          2. Training. Employer shall provide Employee with any and all specialized training
necessary to assist Employee in the performance of his job requirements and responsibilities with
Employer including, but not limited to, training relating to the Employer Group’s cost structures,
methods of operation, the Employer Group’s products and marketing techniques, the Employer Group’s
business strategies, plans and models.

     B. Obligations of Employee.

          1. Nondisclosure of Proprietary and Confidential Information. Both during and after
the termination of employment, whether such termination is voluntary or involuntary, Employee shall
keep in confidence and trust all Proprietary and Confidential Information. Both during and after
the termination of employment, whether such termination is voluntary or involuntary, Employee shall
not use or disclose Proprietary or Confidential Information without the written consent of
Employer, except as may be necessary in the ordinary course of performing his duties to Employer.

          2. Return of Proprietary and Confidential Information. All documents and tangible
things (whether written or electronic) embodying or containing Proprietary and Confidential
Information are the Employer Group’s exclusive property. Employee shall be provided with or given
access to such Proprietary and Confidential Information solely for performing his duties of
employment with Employer. Employee shall protect the confidentiality of their content and shall
return all such Proprietary and Confidential Information, including all copies, facsimiles and
specimens of them in any tangible or electronic forms in Employee’s possession, custody or control
to Employer before leaving the employment of Employer for any reason, whether voluntary or
involuntary.

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          3. Confidential Information from Previous Employment. Employee shall not disclose or
use during his employment with Employer any proprietary and confidential information which Employee
has acquired as a result of any previous employment or under a contractual obligation of
confidentiality before his employment with Employer and, furthermore, Employee shall not bring to
the premises of Employer any copies or other tangible embodiments of any such proprietary and
confidential information.

          4. Conflict of Interest. Employee shall not engage in outside employment or other
activities in the course of which Employee would use or might be tempted or induced to use
Proprietary and Confidential Information in other than the Employer Group’s own interest.

          5. Agreement Not to Compete/Solicit.

               a. Non-Compete. Employee agrees that during the Covenant Period (as defined below),
he shall not, without Employer’s written consent, directly or indirectly, for himself or on behalf
of or in conjunction with any other person, persons, company, partnership, corporation or business
venture of any nature:

                    (i) engage, as an officer, director, shareholder, owner, partner, joint venturer or in a
managerial capacity, whether as an employee, independent contractor, consultant, advisor or sales
representative, in any business or industry in which the Employer Group is engaged, within the
United States, Canada or any other country in which the Employer Group conducts business, including
any territory serviced by the Employer Group, or in which the Employer Group is actively pursuing
business opportunities (the “Territory”);

                    (ii) call upon any person or entity which is, at that time, or which has been, within one (1)
year prior to that time, a customer of the Employer Group, or a prospective customer that has been
actively solicited by the Employer Group, within the Territory for the purpose of soliciting or
selling products or services in competition with the Employer Group; or

                    (iii) call upon any prospective acquisition candidate, on Employee’s own behalf or on behalf
of any competitor, which candidate was, to Employee’s actual knowledge after due inquiry, either
called upon by the Employer Group or for which the Employer Group made an acquisition analysis for
the purpose of acquiring such entity.

               b. Non-Solicitation. Employee agrees that during the Covenant Period, he shall not,
without Employer’s written consent, employ, hire, solicit, induce or identify for employment or
attempt to employ, hire, solicit, induce or identify for employment, directly or indirectly, any
employee(s) of the Employer Group to leave his or her employment and become an employee, consultant
or representative of any other entity including, but not limited to, Employee’s new employer, if
any.

               c. Publicly Traded Securities. The provisions of Section VI.B.5 of this Agreement
shall not prevent Employee from acquiring or holding publicly traded stock or other public
securities of a competing company, so long as Employee’s ownership does not exceed two percent (2%)
of the outstanding securities of such company.

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               d. Agreement to Inform Subsequent Employers. For a period of two (2) years after the
termination of Employee’s employment with Employer, whether voluntary or involuntary, Employee
agrees to inform each new employer, prior to accepting employment, of the existence of this
Agreement and provide that employer with a copy of this Agreement.

               e. Reasonableness of Restrictions. Employee acknowledges that the restrictions set
forth in Section VI.B.5 of this Agreement are intended to protect the Employer Group’s legitimate
business interests and its Proprietary and Confidential Information and established relationships
and good will. Employee acknowledges that the time, geographic and scope of activity limitations
set forth herein are reasonable and necessary to protect the Employer Group’s legitimate business
interests. However, if in any judicial proceeding, a court shall refuse to enforce this Agreement
as written, whether because the time limitation is too long or because the restrictions contained
herein are more extensive (whether as to geographic area, scope of activity or otherwise) than is
necessary to protect the legitimate business interests of the Employer Group, it is expressly
understood and agreed between the parties hereto that this Agreement is deemed modified to the
extent necessary to permit this Agreement to be enforced in any such proceedings.

               f. Ability to Obtain Other Employment. Employee acknowledges that (1) in the event of
the termination of his employment with Employer (whether voluntary or involuntary), Employee’s
knowledge, experience and capabilities are such that Employee can obtain employment in business
activities which are of a different and non-competing nature than those performed in the course of
his employment with Employer or in the geographic areas outside of the Territory and (2) the
enforcement of a remedy hereunder including, but not limited to, injunctive relief, will not
prevent Employee from earning a reasonable livelihood.

               g. Injunctive Relief. Employee acknowledges that compliance with Section VI.B of this
Agreement is necessary to protect the good will and other legitimate business interests of the
Employer Group and that a breach of any or all of these provisions will give rise to irreparable
and continuing injury to the Employer Group that is not adequately compensable in monetary damages
or at law. Accordingly, Employee agrees that Employer, its successors and assigns, may obtain
injunctive relief against the breach or threatened breach of any or all of these provisions, in
addition to any other legal or equitable remedies which may be available to the Employer Group at
law or in equity or under this Agreement. Because Employee further acknowledges that it would be
difficult to measure any damages caused to the Employer Group that might result from any breach by
Employee of any promises set forth in this Agreement, Employee agrees that Employer shall be
entitled to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual damage to the Employer Group, as well as to be relieved of any
obligation to provide further payment or benefits to Employee or Employee’s dependents.

               h. Other Remedies. If Employee violates and/or breaches this Agreement, Employer
shall be entitled to an accounting and repayment of all lost profits, compensation, commissions,
remuneration or benefits that Employee directly or indirectly has realized or may realize as a
result of any such violation or breach. Employer shall also be entitled to recover for all lost
sales, profits, commissions, good will and customers caused by Employee’s improper acts, in
addition to and not in limitation of any injunctive relief or other

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rights or remedies that Employer is or may be entitled to at law or in equity or under this
Agreement.

               i. Costs. Employee acknowledges that should it become necessary for Employer to file
suit to enforce the provisions contained herein, and any court of competent jurisdiction awards the
Employer Group any damages and/or an injunction due to the acts of Employee, then Employer shall be
entitled to recover its reasonable costs incurred in conducting the suit including, but not limited
to, reasonable attorneys’ fees and expenses.

               j. Covenant Period. For purposes of this Section VI.B.5, the Covenant Period shall
mean the period from and during the Term of this Agreement and ending on the date that is two (2)
years after Employee’s employment with Employer terminates, whether voluntary or involuntary;
provided, however, that if Employer delivers to Employee a Renewal Termination Notice, as provided
in Section III.B, and Employee remains employed with Employer through the expiration of the Term
(and this Agreement), then the Covenant Period shall end on the date that is one (1) year after the
date of such Renewal Termination Notice. For purposes of clarity, in the event that Employee’s
employment with Employer terminates for any reason, whether voluntary or involuntary, after
Employee receives a Renewal Termination Notice and before the end of the Term, the Covenant Period
shall end on the date that is two (2) years after the termination of Employee’s employment.

          6. Nondisparagement. Employee acknowledges and agrees that both during and after his
employment with Employer, whether such termination is voluntary or involuntary, Employee shall not
disparage, denigrate or comment negatively upon, either orally or in writing, the Employer Group or
any of their respective officers, directors, employees or representatives, to or in the presence of
any person or entity unless compelled to act by a valid subpoena or other legal mandate; provided,
however, if Employee receives such a valid subpoena or legal mandate, he shall provide Employer
with written notice of the same at least five (5) business days prior to the date on which Employee
is required to make the disclosure.

VII. WAIVER OF RIGHT TO JURY TRIAL

EMPLOYER AND EMPLOYEE HEREBY VOLUNTARILY, KNOWINGLY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS TO
TRIAL BY JURY TO ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT, AS WELL AS TO ALL CLAIMS
ARISING OUT OF EMPLOYEE’S EMPLOYMENT WITH EMPLOYER OR TERMINATION THEREFROM INCLUDING, BUT NOT
LIMITED TO:

     A. Any and all claims and causes of action arising under contract, tort or other common law
including, without limitation, breach of contract, fraud, estoppel, misrepresentation, express or
implied duties of good faith and fair dealing, wrongful discharge, discrimination, retaliation,
harassment, negligence, gross negligence, false imprisonment, assault and battery, conspiracy,
intentional or negligent infliction of emotional distress, slander, libel, defamation and invasion
of privacy;

     B. Any and all claims and causes of action arising under any federal, state or local law,
regulation or ordinance, including, without limitation, claims arising under Title VII of the

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Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with
Disabilities Act, the Family and Medical Leave Act, the Fair Labor Standards Act and all
corresponding state laws; and

     C. Any and all claims and causes of action for wages, employee benefits, vacation pay,
severance pay, pension or profit sharing benefits, health or welfare benefits, bonus compensation,
commissions, deferred compensation or other remuneration, employment benefits or compensation, past
or future loss of pay or benefits or expenses.

VIII. CLAIMS

     Employer and Employee acknowledge and agree that this Agreement shall be interpreted, governed
by and construed in accordance with the laws of the State of Texas, without regard to the conflict
of laws principles or rules thereof.

     Employer and Employee irrevocably and unconditionally agree that any legal suit, action or
proceeding arising out of or relating to this Agreement, as well as to all claims arising out of
Employee’s employment with Employer or termination therefrom, shall be brought in either the
Federal District Court for the Southern District of Texas—Houston Division or in a judicial
district court of Harris County, Texas (hereinafter referred to as the “Texas Courts”). In
that regard, Employer and Employee waive, to the fullest extent allowed, any objection that
Employer or Employee may have to the venue of any such proceeding being brought in the Texas
Courts, and any claim that any such action or proceeding brought in the Texas Courts has been
brought in an inconvenient forum. In addition, Employer and Employee irrevocably and
unconditionally submit to the exclusive jurisdiction of the Texas Courts in any such suit, action
or proceeding. Employer and Employee acknowledge and agree that a judgment in any suit, action or
proceeding brought in the Texas Courts shall be conclusive and binding on each and may be enforced
in any other courts to whose jurisdiction Employer or Employee is or may be subject to, by suit
upon such judgment.

     In the event Employee obtains a final judgment in his favor by a court of competent
jurisdiction with respect to any dispute regarding Employer’s failure to pay Employee on a timely
basis the amounts to which he is entitled under this Agreement or as a result of any other breach
of this Agreement by Employer, Employer shall pay all amounts and damages to which Employee may be
entitled as a result of such breach, including interest thereon and all reasonable legal fees and
expense and other costs incurred by Employee to enforce Employee’s rights hereunder.

IX. MISCELLANEOUS

     A. Publicity Release. By executing this Agreement, Employee forever gives the
Employer Group, its successors, assigns, licensees and any other designees, the absolute right and
permission, throughout the world: (1) to copyright (and to renew and extend any copyright), use,
reuse, publish and republish photographic portraits and pictures, motion or still, of Employee, or
in which Employee may be included, in whole or in part, or composite or distorted character in any
form, whether heretofore taken or to be taken in the future, in conjunction with Employee’s own or
a fictitious name or title (which Employee now has or may have in the

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future), or reproductions thereof, in color or otherwise, made through any media at any place,
for art, advertising, trade or any other purpose whatsoever; and (2) to record, reproduce, amplify,
simulate, “double” and/or “dub” Employee’s voice and transmit the same by any mechanical or
electronic means, for any purpose whatsoever. Employee further consents to the use of any printed
matter giving Employee, or not giving Employee, a credit, in the sole discretion of any of the
aforementioned parties to whom this authorization and release is given, in conjunction therewith.
Employee waives any right he may have to inspect and/or approve the finished product or the
advertising copy or printed matter that may be used in connection therewith, or the use to which it
may be applied.

     B. Withholding. Employer may withhold from any amounts payable under this Agreement
such federal, state, local, F.I.C.A., foreign or other taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

     C. Notices. All notices, consents, requests, instructions, approvals and other
communications provided for in this Agreement shall be in writing and shall be addressed as
follows:

	 	 	 

	To Employer:

	 	Quanta Services, Inc.
	 

	 	1360 Post Oak Boulevard, Suite 2100
	 

	 	Houston, Texas 77056
	 

	 	Attention: General Counsel
	 
	 	 
	To Employee:

	 	James F. O’Neil III
	 

	 	1360 Post Oak Boulevard, Suite 2100
	 

	 	Houston, Texas 77056

Notice shall be deemed given and effective: (1) upon receipt, if delivered personally; (2) three
(3) days after it has been deposited in the U.S. mail, addressed as required above, and sent via
registered or certified mail, return receipt requested, postage prepaid; or (3) the next business
day after it has been sent via a recognized overnight courier. Employer and/or Employee may change
the address for notice purposes by notifying the other of such change in accordance with this
Section IX.C.

     D. Severability. If any provision of this Agreement is held to be invalid,
inoperative or unenforceable for any reason, it shall be modified rather than voided, if possible,
in order to achieve the intent of the parties hereto to the maximum extent possible. In any event,
if any provision this Agreement is held to be invalid, inoperative or unenforceable for any reason,
the other provisions of this Agreement shall be deemed valid and operative and, so far as is
reasonable and possible, effect shall be given to the intent manifested by the provision or
provisions held invalid or inoperative.

     E. Survival of Certain Obligations. The obligations of the parties set forth in this
Agreement that by their terms extend beyond or survive the termination of this Agreement, whether
voluntarily or involuntarily, will not be affected or diminished in any way by the termination of
this Agreement.

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     F. Headings. The headings contained in this Agreement are for purposes of
reference and convenience only and are not intended in any way to describe, interpret, define or
limit the extent or intent of this Agreement.

     G. Entire Agreement. This Agreement supersedes any other agreements, written or oral,
between the Employer Group and Employee, and Employee has no oral representations, understandings
or agreements with the Employer Group or any of their respective officers, directors or
representatives covering the same subject matter as this Agreement, including, but not limited to,
that certain Employment Agreement between Quanta and Employee effective October 27, 2008. This
written Agreement is the final, complete and exclusive statement and expression of the agreement
between Employer and Employee and of all the terms of this Agreement. This Agreement cannot be
modified, varied, contradicted or supplement by evidence of any prior or contemporaneous oral or
written agreements.

     H. Amendment/Waiver. Neither this Agreement nor any term hereof may be modified or
amended except by written instrument signed by a duly authorized officer of Employer and by
Employee. No term of this Agreement may be waived other than by written instrument signed by the
party waiving the benefit of such term. Any such waiver shall constitute a waiver only with
respect to the specific matter described in such written instrument and shall in no way impair the
rights of the party granting such waiver in any other respect or at any other time. Neither the
waiver by Employer or Employee of a breach of or a default under any of the provisions of this
Agreement, nor the failure by either Employer or Employee, on one or more occasions, to enforce any
of the provisions of this Agreement or to exercise any right or privilege hereunder, shall be
construed as a waiver of any other breach or default of a similar nature, or as a waiver of any
such provisions, rights or privileges hereunder.

     I. Assignment. This Agreement is personal to the parties and neither party may assign
any rights or obligations under the same without the prior written consent of the other; provided,
however, that in the event of a sale of the Employer Group’s business to a third party (whether by
sale of all or a majority of the Employer Group’s issued and outstanding equity securities, by a
merger or reorganization, or by a sale of all or substantially of the Employer Group’s assets),
then this Agreement may be assigned by Employer to such third party purchaser without the prior
written consent of Employee, provided that such third party purchaser agrees to assume and abide by
all of Employer’s obligations set forth in this Agreement and provides written notice thereof to
Employee. In the event of any such assignment, all references to “Quanta” hereunder shall mean the
assignee, and to the extent any entity becomes the successor to Quanta, all obligations hereunder
shall be the obligations of the successor and “Quanta” mean the successor entity.

     J. Counterparts. This Agreement may be executed simultaneously in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall constitute
one and the same instrument.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above, but to be effective as of the Effective Date.

	 	 	 	 	 

	QUANTA SERVICES, INC.:	 	 
	 
	 	 	 	 
	By:

	 	/s/ Tana Pool
 

Tana Pool
	 	 
	 

	 	Vice President	 	 

	 	 	 

	EMPLOYEE:
	 	 
	 
	 	 
	/s/ James F. O’Neil III
 

James F. O’Neil III

	 	 

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EXHIBIT A

Chief Executive Officer (CEO) Duties and Responsibilities

BASIC FUNCTION

The CEO is responsible for the management, development and effective performance of the Company
under the supervision of the Board of Directors.

DUTIES AND RESPONSIBILITIES

The CEO’s duties and responsibilities include:

Collaboration and working relationship with the Board of Directors

	 	•	 	Reports directly to the Board
	 
	 	•	 	Develops, in collaboration with the Executive Chairman and the Lead Independent
Director, the Board calendar and meeting agendas
	 
	 	•	 	Leads management’s presentations and discussions during Board meetings
	 
	 	•	 	For clarity, the Executive Chairman shall convene, call for motions and adjourn Board
meetings

Planning

	 	•	 	Develops, in collaboration with the Board, and implements the Company’s vision,
strategic plan, goals and objectives
	 
	 	•	 	Creates annual operating plans that support strategic direction approved by the Board
	 
	 	•	 	Develops, and presents for Board approval, annual operating budgets
	 
	 	•	 	Develops and monitors strategies for creating shareholder value and ensuring the
long-term financial viability of the organization
	 
	 	•	 	Develops future leadership within the organization

Management

	 	•	 	Promotes a working environment that reflects the organization’s values and safety
culture, encourages good performance, and rewards productivity
	 
	 	•	 	Hires, manages, and fires human resources of the organization according to authorized
personnel policies and procedures that fully conform to current laws and regulations
	 
	 	•	 	Oversees the operations of the organization and manages its compliance with legal and
regulatory requirements
	 
	 	•	 	Creates, oversees and maintains procedures for implementing plans approved by the Board
of Directors
	 
	 	•	 	Develops, implements and oversees an Enterprise Risk Management system

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	 	•	 	Ensures that staff and Board have sufficient and up-to-date information
	 
	 	•	 	Evaluates the organization’s performance and the performance of his direct reports on a
regular basis

Financial Management

	 	•	 	Oversees the development of annual budgets that support operating plans and submits
budgets for Board approval
	 
	 	•	 	Prudently manages the organization’s resources within budget guidelines according to
current laws and regulations
	 
	 	•	 	Ensures appropriate accounting procedures are used in compliance with Generally Accepted
Accounting Principles (GAAP)
	 
	 	•	 	Provides prompt, thorough, and accurate information to keep the Board appropriately
informed of the organization’s financial position

HR Management

	 	•	 	Recruitment and contracting of company and project employees
	 
	 	•	 	Employee development and training
	 
	 	•	 	Policy development and documentation
	 
	 	•	 	Employee relations including relationship with external labor unions
	 
	 	•	 	Performance management and improvement systems
	 
	 	•	 	Employment and compliance to regulatory concerns and reporting
	 
	 	•	 	Company-wide committee facilitation including planning, production, and Board of
Directors, including arranging meetings and agendas, attending and minutes of meetings

Marketing and PR

	 	•	 	Manage advertising opportunities and press
	 
	 	•	 	Organize the availability of company representatives for media/PR events as necessary
	 
	 	•	 	Oversee content, production and distribution of all marketing and publicity materials
	 
	 	•	 	Manage press development
	 
	 	•	 	Coordinate the invitation of potential future promoters and supporters of the Company

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External Relationships

	 	•	 	Serves as the primary spokesman and representative for the organization
	 
	 	•	 	Assures that the organization and its mission, programs, and services are consistently
presented in a strong, positive image to relevant stakeholders
	 
	 	•	 	Actively advocates for the organization, its beliefs and its programmatic efforts
	 
	 	•	 	Acts as a liaison between Quanta and the community, building relationships with peer
organizations when appropriate

Organizational Quality, Competiveness and Effectiveness

	 	•	 	Oversees and monitors the Company’s design, delivery, and quality of products and
services
	 
	 	•	 	Stays abreast of external market and competitive trends related to the organization’s
products and services, anticipates future trends likely to have an impact and develops and
implements actions to exploit strengths and opportunities while mitigating weaknesses and
threats
	 
	 	•	 	Collects and analyzes evaluation information that measures the success of the
organization’s sales and execution efforts; refines or changes in response to that
information

Capital Market Activities

	 	•	 	Serves as a primary person in capital market relationships
	 
	 	•	 	Develops capital market strategies with the Board and supports the Board in implementing
those activities
	 
	 	•	 	Oversees the development and implementation of plans that support capital market
activities

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EXHIBIT B

FORM OF CONFIDENTIAL SEVERANCE AGREEMENT AND RELEASE

SEVERANCE AGREEMENT

AND RELEASE OF ALL CLAIMS

     This Severance Agreement and Release of All Claims (the “Agreement”)
is made and entered into by and between James F. O’Neil III (hereinafter referred to as the
“Employee”) and Quanta Services, Inc., a Delaware corporation, (hereinafter collectively referred
to as the “Company”).

     The purpose of this Agreement is to arrange a settlement of the Employee’s employment with the
Company that is satisfactory both to the Company and to the Employee. By signing this Agreement,
the Company and the Employee agree as follows:

	1.	 	Termination of Employment. The Employee and the Company are entering into this
Agreement as a way of amicably concluding the employment relationship between them on [Date]
and of resolving voluntarily any dispute or potential dispute or claim that the Employee has
or might have with the Company, whether known or unknown by the Employee at this time. This
Agreement is not and should not be construed as an allegation by Employee, or as an admission
on the part of the Company, that the Company has acted unlawfully or violated any state or
federal law or regulation. The Company, including its parent companies, affiliates,
associated companies, and subsidiaries, specifically disclaim any liability to the Employee or
any other person for any alleged violation of rights or for any alleged violation of any
order, law, statute, duty, policy or contract.

	2.	 	Severance Benefits. As consideration for the Employee agreeing to release the
Company from all claims that are described in Paragraph 6 herein and subject to the provisions
of Paragraph 10 herein, the Company will pay the Employee $[Severance Amount] (______________
Dollars and __________ Cents), less applicable taxes as severance benefits (the “Severance
Benefits”).

	3.	 	Tax Consequences. The Employee acknowledges and agrees that the Company has made no
representations to him regarding the tax consequences of any Severance Benefits received by
him pursuant to this Agreement.

	4.	 	Entire Consideration. The Employee agrees that the Severance Benefits set forth in
Paragraph 2, herein, constitute the entire amount of consideration provided to him under this
Agreement. The Employee further agrees that he will make no claim for any additional or other
severance benefits or payments and that he will not seek any further compensation for any
other claimed damage, costs, severance, income or attorneys’ fees.

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	5.	 	Non-Disclosure Agreement. Without the express written agreement of the Company’s
[Highest Officer] or unless required to do so by law, the Employee agrees never to disclose
the existence, facts, terms, or amount of this Agreement, nor the substance of the
negotiations leading to this Agreement, to any person or entity, other than to his personal
counsel or attorney, personal accountants, or personal tax preparer, any such disclosure to
such persons to be made only if the relevant person must have such information for the
performance of his or her responsibilities. To the extent required by law or applicable
regulation, Employee may also disclose the provisions of this Agreement to the appropriate
taxing authorities.

	6.	 	The Employee’s Release Of All Claims Including Age Discrimination In Employment Act
Claims. In consideration of the Severance Benefits, the Employee, for himself, his heirs,
executors, administrators, successors and assigns, does fully and forever release and
discharge the Company, its parent companies, affiliates, associated companies, and
subsidiaries, their respective associated companies and subsidiaries, all of their respective
present and former officers, directors, supervisors, managers, employees, stockholders,
agents, attorneys and representatives, and the successors and assigns of such persons and
entities (collectively, the “Released Parties”), from all actions, lawsuits, grievances,
complaints, liens, demands, obligations, damages, liabilities and claims of any nature
whatsoever, know or unknown, that the Employee had, now has, or may hereafter claim to have
against the Released Parties from the beginning of time through the date the Employee executes
this Agreement. The release provided herein specifically includes, but is not limited to, all
claims arising under any federal, state or local fair employment practice laws, and any other
employee relations statute, executive order, law and ordinance, including, but not limited to,
Title VII of the Civil Rights Acts of 1964, as amended; the Civil Rights Acts of 1866, 1870,
and 1871, as amended; the Civil Rights Act of 1991, as amended; the Age Discrimination in
Employment Act of 1967, as amended; the Older Workers Benefit Protection Act, as amended; the
Americans With Disabilities Act of 1990, as amended; the Family and Medical Leave Act, as
amended; the Equal Pay Act, as amended; the Fair Labor Standards Act, as amended; the Worker
Adjustment and Retraining Notification Act of 1988, as amended; the Employee Retirement
Income Security Act of 1974, as amended; Section 806 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. §1514A, et seq.); the Rehabilitation Act of 1973 (29 U.S.C. Section 791 et seq.); the
Occupational Safety and Health Act (29 U.S.C. § 651, et seq.); the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (COBRA); the National Labor Relations Act, as amended;
the [Applicable State Laws], as amended; any local human rights law; and any tort or contract
cause of action or theory.

	 	 	The Employee expressly represents and agrees that he has been advised that, by entering into
this Agreement, he is waiving all claims that he may have against the Company arising under
the Age Discrimination in Employment Act of 1967, as amended, which have arisen on or before
the date of execution of this Agreement.

	7.	 	Covenants Concerning Claims. The Employee agrees that he will not file any
complaints, claims or actions against the Released Parties with any court regarding any

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	 	 	matters or claims that arose prior to the Employee’s execution of this Agreement. If any
court assumes jurisdiction on behalf of the Employee of any complaint, claim or action
against the Company, he will direct that court to withdraw from or dismiss with prejudice
the matter.

	 	 	Notwithstanding the preceding provision or any other provision of the Agreement, Employee’s
agreement to the provisions under Section 6, or the paragraph immediately above this
paragraph, is not intended to prohibit Employee from bringing an action to challenge the
validity of the release of claims under the Age Discrimination in Employment Act, as
amended, or the Older Worker’s Benefit Protection Act, as amended. The Employee further
understands and agrees that if he or someone acting on his behalf files, or causes to be
filed, any such claim, charge, complaint, or action against the Released Parties, he
expressly waives any right to recover any damages or other relief, whatsoever, from the
Released Parties including costs and attorneys’ fees.

	 	 	This Agreement is not intended to interfere with Employee’s right to file a charge with an
administrative agency in connection with any claim Employee believes he may have against any
of the Released Parties. However, by executing this Agreement, Employee hereby waives the
right to recover, and agrees not to seek any damages, remedies or other relief for himself
personally in any proceeding he may bring before such agency or in any proceeding brought by
such agency, or any other person, on his behalf. This Agreement is also not intended to
apply to claims for accrued benefits (other than severance-type benefits) under any benefit
plan of the Released Parties pursuant to the terms of any such plan.

	 	 	Employee understands that he is not releasing rights under this Agreement, that any claims
that cannot be lawfully waived are excluded from this Agreement and that by executing this
Agreement he is not waiving any such claims. Likewise, Employee is not releasing any rights
or claims that may arise after the date on which he signs this Agreement. In addition,
while this Agreement requires Employee to waive any and all claims against the Released
Parties arising under workers’ compensation laws (e.g., claims of retaliation for filing a
workers’ compensation claim), it is not intended to prohibit Employee from filing in good
faith for and from receiving any workers’ compensation benefits from Released Parties’
workers’ compensation carrier for compensable injuries incurred during his employment.
Accordingly, pursuit of any such workers’ compensation benefits with Released Parties’
workers’ compensation carrier or third-party administrator will not be considered a
violation of this Agreement.

	8.	 	Employee Acknowledgments. Employee acknowledges and agrees that:

	 	a.	 	In return for and in consideration of his execution, delivery and performance
of this Agreement, the Company is providing to the Employee the Severance Benefits.
	 
	 	b.	 	The Employee is hereby advised in writing by this Agreement to consult with an
attorney before signing this Agreement.

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	 	c.	 	The Employee does not waive rights or claims that may arise after the date this
Agreement is signed.
	 
	 	d.	 	In return for signing this Agreement, the Employee will receive payment of
consideration beyond that which he was entitled to receive before entering into this
Agreement.

	9.	 	Twenty-One (21) Day Review Period. The Employee acknowledges that he was provided
this Agreement more than 21 days before the date when he was required to make an election
concerning the Severance Benefits. If the Employee signs this Agreement prior to the end of
the 21-day period, he certifies and agrees that the decision to accept such shortening of time
is knowing and voluntary and is not induced by the Company through: (i) fraud,
misrepresentation, or a threat to withdraw or alter the offer prior to the end of the 21-day
period; or (ii) an offer to provide different terms in exchange for signing the Release prior
to the expiration of the 21-day period. Should the Employee sign this Agreement before the
expiration of the 21-day period, the Company may at its option and discretion expedite the
processing of some or all of the Severance Benefits, subject to the revocation period set
forth in Paragraph 10.

	10.	 	Seven (7) Day Revocation Period. The Employee understands that he may revoke this
Agreement at any time within seven (7) days after he executes it. To revoke the Agreement,
the Employee must deliver written notification of such revocation to _____________, or in
_____________’s absence to _____________’s office, within seven (7) days after the date of the
Employee’s execution of this Agreement. The Employee further understands that if he does not
revoke the Agreement within seven (7) days following its execution (excluding the date of
execution), it will become effective, binding, and enforceable. The Employee understands that
he will not receive the Severance Benefits until this Agreement becomes effective, binding,
and enforceable, which shall not occur prior to the eighth day following the Employee’s
execution of this Agreement.

	11.	 	Employee Representations. The Employee represents that:

	 	a.	 	he has reviewed all aspects of this Agreement;
	 
	 	b.	 	he has carefully read and fully understands all of the provisions and effects
of this Agreement;
	 
	 	c.	 	he has had the opportunity to consult with an attorney before signing this
Agreement.
	 
	 	d.	 	he understands that in agreeing to the terms of this Agreement he is releasing
the Released Parties from any and all claims he may have against the Company, and all
persons acting by, through, under or in concert with the Company, including claims
under the federal Age Discrimination in Employment Act of 1967, as

-26-

 

	 	 	 	amended, as well as any claims for age discrimination that may exist under Texas law
or any other applicable law, as more particularly described in Paragraph 7 herein;
	 
	 	e.	 	he voluntarily agrees to all the terms set forth in this Agreement;
	 
	 	f.	 	he has not filed, caused to be filed, and presently is not a party to any
claim, complaint, or action against the Released Parties in any forum or form, whether
administrative or otherwise; and
	 
	 	g.	 	as of the time of execution of this Agreement by Employee, Employee is unaware
of any facts or conduct that would give rise to a claim against the Released Parties of
any type or sort, including those types of claims or other violations set forth
generally and specifically above, including but not limited to, any claims under the
Family Medical Leave Act of 1993 or the Fair Labor Standards Act.

	12.	 	Return of Company Property and Confidentiality Obligations. The Employee agrees that
on or before [Date], the Employee shall return or shall have returned all Company Property and
Confidential Information (as defined below). “Company Property” means all property of the
Company, including, but not limited to, Company issued/owned computers, laptops, peripheral
electronic equipment (e.g., printers, cameras, projectors, computer docking stations, etc.),
Blackberry or other personal digital assistants (PDAs), cellular telephones, credit cards,
keys, door cards, tools, equipment on loan, and any other Company books, manuals, and
journals. “Confidential Information” means all confidential, sensitive or proprietary
information belonging to the Company, including, but not be limited to, all business records,
manuals, memoranda, computer records, electronic files, lists and other property delivered to
or compiled by the Employee by or on behalf of Company, or its representatives, vendors or
customers that pertain to the business of Company, as well as all correspondence, reports,
records, charts, and other similar data pertaining to the business, activities or future plans
of Company that was collected by the Employee during his employment with the Company. For
purposes of this Paragraph 12 and Paragraph 13, “Company” shall include all parent companies,
affiliates, associated companies, and subsidiaries.

	 	 	The Employee further acknowledges and agrees that the Employee is obligated to not, at any
time, disclose or otherwise make available to any person, company or other party
Confidential Information or trade secrets of the Company, its parent, associated companies,
affiliates, and subsidiaries This Agreement shall not limit any obligations the Employee has
under any applicable federal or state law.

	13.	 	Non-disparagement. The Employee agrees not to make any disparaging or negative
statements about the Company, its services or its current or former directors, officers,
supervisors, managers, or employees. Statements made in the course of any litigation or legal
proceeding, whether disparaging or negative, are excluded from coverage of this Paragraph.

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	14.	 	Voluntary Action. The Employee represents and agrees that he is knowingly and
voluntarily entering into this Agreement, and that he has relied solely and completely upon
his own judgment or the advice of his attorney in entering into this Agreement.

	15.	 	Entire Agreement. This Agreement sets forth the entire agreement between the
Employee and the Company and fully supersedes and replaces any and all prior agreements or
understandings, written or oral, between the Company and the Employee pertaining to the
subject matter of this Agreement. The Employee and the Company represent and acknowledge that
in executing this Agreement they do not rely upon and have not relied upon any representation
or statement made by any of the parties or by any of the parties’ agents, attorneys,
employees, or representatives with regard to the subject matter, basis, or effect of this
Agreement or otherwise, other than those specifically stated in this written Agreement.

	16.	 	Partial Invalidity. Should any provision of this Agreement be declared or be
determined by any court of competent jurisdiction to be illegal, invalid or unenforceable, all
remaining provisions of this Agreement shall otherwise remain in full force and effect and be
construed as if such illegal, invalid or unenforceable provision had not been included herein.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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	17.	 	Governing Law. This Agreement will be governed by, and construed and interpreted in
accordance with, the laws of the State of Texas without regard to principles of conflict of
laws.

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	QUANTA SERVICES, INC.:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	  
	 	 	 	 	 	 	James F. O’Neil III

THE STATE OF                          §

                                                      §

COUNTY OF                               §

     The foregoing instrument was SWORN TO AND SUBSCRIBED BEFORE ME BY JAMES F. O’NEIL III AND
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the ______ day of _______, A.D., 20_.

	 	 	 	 	 

	 

	 	 

Notary Public in and for
	 	 
	 

	 	the State of                     	 	 

My commission expires:                     

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EXHIBIT C

Pre-Employment Inventions

None

-30-

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