2007 STOCK INCENTIVE PLAN FORM OF EMPLOYEE/CONSULTANT RESTRICTED STOCK AGREEMENT
Published on May 29, 2007
Exhibit 99.2
QUANTA SERVICES, INC. 2007 STOCK INCENTIVE PLAN
RESTRICTED STOCK AGREEMENT
Grantee: |
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Address: |
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Number of Awarded Shares: |
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Date of Award: |
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Vesting of Awarded Shares: | Vesting Date | Vested % | ||||||
331/3 | % | |||||||
331/3 | % | |||||||
331/3 | % | |||||||
Total |
100 | % |
Quanta Services, Inc., a Delaware corporation (the Company), hereby grants to the
individual whose name appears above (Grantee), pursuant to the provisions of the Quanta
Services, Inc. 2007 Stock Incentive Plan, as amended from time to time in accordance with its terms
(the Plan), a restricted stock award (this Award) of shares (the Awarded
Shares) of its common stock, par value $0.00001 per share (the Common Stock),
effective as of the Date of Award as set forth above (the Grant Date), upon and subject
to the terms and conditions set forth in this Restricted Stock Agreement (this Agreement)
and in the Plan, which are incorporated herein by reference. Unless otherwise defined in this
Agreement, capitalized terms used in this Agreement shall have the meanings assigned to them in the
Plan.
1. EFFECT OF THE PLAN. The Awarded Shares granted to Grantee are subject to all of
the provisions of the Plan and of this Agreement, together with all rules and determinations from
time to time issued by the Committee and by the Board pursuant to the Plan. The Company hereby
reserves the right to amend, modify, restate, supplement or terminate the Plan without the consent
of Grantee, so long as such amendment, modification, restatement or supplement shall not materially
reduce the rights and benefits available to Grantee hereunder, and this Award shall be subject,
without further action by the Company or Grantee, to such amendment, modification, restatement or
supplement unless provided otherwise therein.
2. GRANT. This Award shall evidence Grantees ownership of the Awarded Shares, and
Grantee acknowledges that he or she will not receive a stock certificate or stock in book entry
form representing the Awarded Shares unless and until the Awarded Shares vest as provided in this
Award and all Required Withholding (as defined in Section 9(a) below) obligations applicable to the
Vested Awarded Shares (as defined in Section 3 below) have been satisfied. The Awarded Shares will
be held in custody for Grantee, in a book entry account with
Quanta Services, Inc. 2007 Stock Incentive Plan Restricted Stock Agreement
(Employee/Consultant Award) | Page 1 |
the Companys transfer agent, until the Awarded Shares have vested in accordance with Section
3 of this Award. Upon vesting of the Awarded Shares, the Company shall, unless otherwise paid by
Grantee as described in Section 9(a) of this Award, withhold that number of Vested Awarded Shares
necessary to satisfy any Required Withholding obligation of Grantee in accordance with the
provisions of Section 9(a) of this Award, and thereafter instruct its transfer agent to deliver to
Grantee all remaining Vested Awarded Shares in a stock certificate or in book entry form. Grantee
agrees that the Awarded Shares shall be subject to all of the terms and conditions set forth in
this Agreement and the Plan, including, but not limited to, the forfeiture conditions set forth in
Section 4 of this Agreement, the restrictions on transfer set forth in Section 5 of this Agreement
and the satisfaction of the Required Withholding as set forth in Section 9(a) of this Award.
3. VESTING SCHEDULE; SERVICE REQUIREMENT. Except as provided otherwise in Section 4
of this Agreement, a portion of the Awarded Shares shall vest during Grantees Continuous Service
on each Vesting Date set forth above (each, a Vesting Date), in each case, as set forth
on the first page of this Agreement under the heading Vesting of Awarded Shares, as follows:
(a) thirty-three and one-third percent (33 1/3%) of the Awarded Shares will vest on the first
Vesting Date;
(b) an additional thirty-three and one-third percent (33 1/3%) of the Awarded Shares will vest
on the second Vesting Date; and
(c) the remaining thirty-three and one-third percent (33 1/3%) of the Awarded Shares will vest
on the third Vesting Date.
Awarded Shares that have vested pursuant to this Agreement are referred to herein as Vested
Awarded Shares and Awarded Shares that have not yet vested pursuant to this Agreement are
referred to herein as Unvested Awarded Shares. If an installment of the vesting would
result in a fractional Vested Awarded Share, such installment will be rounded to the next higher or
lower Awarded Share, as determined by the Committee, except the final installment, which will be
for the balance of the Awarded Shares.
4. CONDITIONS OF FORFEITURE.
(a) Upon any termination of Grantees Continuous Service (the Termination Date) for
any or no reason (other than due to Grantees death), including but not limited to Grantees
voluntary resignation or termination by the Company with or without cause, before all of the
Awarded Shares become Vested Awarded Shares, all Unvested Awarded Shares as of the Termination Date
shall, without further action of any kind by the Company or Grantee, be forfeited. Unvested
Awarded Shares that are forfeited shall be deemed to be immediately transferred to the Company
without any payment by the Company or action by Grantee, and the Company shall have the full right
to cancel any evidence of Grantees ownership of such forfeited Unvested Awarded Shares and to take
any other action necessary to demonstrate that Grantee no longer owns such forfeited Unvested
Awarded Shares automatically upon such forfeiture. Following such forfeiture, Grantee shall have
no further rights with respect to such
Quanta Services, Inc. 2007 Stock Incentive Plan Restricted Stock Agreement
(Employee/Consultant Award) | Page 2 |
forfeited Unvested Awarded Shares. Grantee, by his acceptance of the Award granted pursuant
to this Agreement, irrevocably grants to the Company a power of attorney to transfer Unvested
Awarded Shares that are forfeited to the Company and agrees to execute any documents requested by
the Company in connection with such forfeiture and transfer. The provisions of this Agreement
regarding transfers of Unvested Awarded Shares that are forfeited shall be specifically performable
by the Company in a court of equity or law.
(b) Notwithstanding anything to the contrary in this Agreement, the Unvested Awarded Shares
shall become vested (i) on the death of Grantee during Grantees Continuous Service or (ii) in
accordance with the provisions of Section 11(c) of the Plan relating to a Change in Control event.
5. NON-TRANSFERABILITY. Grantee may not sell, transfer, pledge, exchange,
hypothecate, or otherwise encumber or dispose of any of the Unvested Awarded Shares, or any right
or interest therein, by operation of law or otherwise, except only with respect to a transfer of
title effected pursuant to Grantees will or the laws of descent and distribution following
Grantees death. References to Grantee, to the extent relevant in the context, shall include
references to authorized transferees. Any transfer in violation of this Section 5 shall be void
and of no force or effect, and shall result in the immediate forfeiture of all Unvested Awarded
Shares.
6. DIVIDEND AND VOTING RIGHTS. Subject to the restrictions contained in this
Agreement, Grantee shall have the rights of a stockholder with respect to the Awarded Shares,
including the right to vote all such Awarded Shares, including Unvested Awarded Shares, and to
receive all dividends, cash or stock, paid or delivered thereon, from and after the date hereof.
In the event of forfeiture of Unvested Awarded Shares, Grantee shall have no further rights with
respect to such Unvested Awarded Shares. However, the forfeiture of the Unvested Awarded Shares
pursuant to Section 4 hereof shall not create any obligation to repay cash dividends received as to
such Unvested Awarded Shares, nor shall such forfeiture invalidate any votes given by Grantee with
respect to such Unvested Awarded Shares prior to forfeiture.
7. CAPITAL ADJUSTMENTS AND CORPORATE EVENTS. If, from time to time during the term of
this Agreement, there is any capital adjustment affecting the outstanding Common Stock as a class
without the Companys receipt of consideration, the Unvested Awarded Shares shall be adjusted in
accordance with the provisions of Section 11(a) of the Plan. Any and all new, substituted or
additional securities to which Grantee may be entitled by reason of Grantees ownership of the
Unvested Awarded Shares hereunder because of a capital adjustment shall be immediately subject to
the forfeiture provisions of this Agreement and included thereafter as Unvested Awarded Shares
for purposes of this Agreement.
8. REFUSAL TO TRANSFER. The Company shall not be required (i) to transfer on its
books any Unvested Awarded Shares that have been sold or otherwise transferred in violation of any
of the provisions of this Agreement or the Plan, or (ii) to treat as owner of such Unvested Awarded
Shares, or accord the right to vote or pay or deliver dividends or other distributions to, any
purchaser or other transferee to whom or which such Unvested Awarded Shares shall have been so
transferred.
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(Employee/Consultant Award) | Page 3 |
9. TAX MATTERS.
(a) The Companys obligation to deliver Awarded Shares to Grantee upon the vesting of such
shares shall be subject to the satisfaction of any and all applicable federal, state and local
income and employment tax withholding requirements (the Required Withholding). If the
Company has not received from Grantee a certified check or money order for the full amount of the
Required Withholding by 5:00 P.M. Central Standard Time on the date Awarded Shares become Vested
Awarded Shares or Grantee has not made a valid 83(b) Election (as defined below), the Company shall
withhold from the Vested Awarded Shares that otherwise would have been delivered to Grantee a whole
number of Vested Awarded Shares necessary to satisfy Grantees Required Withholding, and deliver
the remaining Vested Awarded Shares to Grantee. The amount of the Required Withholding and the
number of Vested Awarded Shares to be withheld by the Company, if applicable, to satisfy Grantees
Required Withholding, as well as the amount reflected on tax reports filed by the Company, shall be
based on the value of the Vested Awarded Shares as of 12:01 A.M. Central Standard Time on the
applicable Vesting Date. The obligations of the Company under this Award will be conditioned on
such satisfaction of the Required Withholding.
(b) Grantee acknowledges that the tax consequences associated with the Award are complex and
that the Company has urged Grantee to review with Grantees own tax advisors the federal, state,
and local tax consequences of this Award. Grantee is relying solely on such advisors and not on
any statements or representations of the Company or any of its agents. Grantee understands that
Grantee (and not the Company) shall be responsible for Grantees own tax liability that may arise
as a result of the Award. Grantee understands further that Section 83 of the Internal Revenue Code
of 1986, as amended (the Code), taxes as ordinary income the fair market value of the
Awarded Shares as of the Vesting Date. Grantee also understands that Grantee may elect to be taxed
at Grant Date rather than at the time the Awarded Shares vest by filing an election under Section
83(b) of the Code with the Internal Revenue Service and by providing a copy of the election to the
Company (an 83(b) Election). GRANTEE ACKNOWLEDGES THAT HE OR SHE HAS BEEN INFORMED OF
THE AVAILABILITY OF MAKING AN 83(b) ELECTION IN ACCORDANCE WITH SECTION 83(b) OF THE CODE; THAT
SUCH 83(b) ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE (AND A COPY OF THE 83(b)
ELECTION GIVEN TO THE COMPANY) WITHIN 30 DAYS OF THE GRANT OF AWARDED SHARES TO GRANTEE; AND THAT
GRANTEE IS SOLELY RESPONSIBLE FOR MAKING SUCH 83(b) ELECTION.
10. ENTIRE AGREEMENT; GOVERNING LAW. The Plan and this Agreement constitute the
entire agreement of the Company and Grantee (collectively, the Parties) with respect to
the subject matter hereof and supersede in their entirety all prior undertakings and agreements of
the Parties with respect to the subject matter hereof. If there is any inconsistency between the
provisions of this Agreement and of the Plan, the provisions of the Plan shall govern. Nothing in
the Plan and this Agreement (except as expressly provided therein or herein) is intended to confer
any rights or remedies on any person other than the Parties. The Plan and this Agreement are to be
construed in accordance with and governed by the internal laws of the State of Texas, without
giving effect to any choice-of-law rule that would cause the application of the laws of any
jurisdiction other than the internal laws of the State of Texas to the rights and
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(Employee/Consultant Award) | Page 4 |
duties of the Parties. Should any provision of the Plan or this Agreement relating to the
subject matter hereof be determined by a court of law to be illegal or unenforceable, such
provision shall be enforced to the fullest extent allowed by law and the other provisions shall
nevertheless remain effective and shall remain enforceable.
11. INTERPRETIVE MATTERS. Whenever required by the context, pronouns and any
variation thereof shall be deemed to refer to the masculine, feminine, or neuter, and the singular
shall include the plural, and vice versa. The term include or including does not denote or
imply any limitation. The captions and headings used in this Agreement are inserted for
convenience and shall not be deemed a part of the Restricted Stock Award or this Agreement for
construction or interpretation.
12. DISPUTE RESOLUTION. The provisions of this Section 12 shall be the exclusive
means of resolving disputes of the Parties (including any other persons claiming any rights or
having any obligations through the Company or Grantee) arising out of or relating to the Plan and
this Agreement. The Parties shall attempt in good faith to resolve any disputes arising out of or
relating to the Plan and this Agreement by negotiation between individuals who have authority to
settle the controversy. Negotiations shall be commenced by either Party by a written statement of
the Partys position and the name and title of the individual who will represent the Party. Within
thirty (30) days of the written notification, the Parties shall meet at a mutually acceptable time
and place, and thereafter as often as they reasonably deem necessary, to resolve the dispute. If
the dispute has not been resolved by negotiation within ninety (90) days of the written
notification of the dispute, either Party may file suit and each Party agrees that any suit,
action, or proceeding arising out of or relating to the Plan or this Agreement shall be brought in
the United States District Court for the Southern District of Texas (or should such court lack
jurisdiction to hear such action, suit or proceeding, in a Texas state court in Harris County,
Texas) and that the Parties shall submit to the jurisdiction of such court. The Parties
irrevocably waive, to the fullest extent permitted by law, any objection a Party may have to the
laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO
EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR
PROCEEDING. If any one or more provisions of this Section 12 shall for any reason be held invalid
or unenforceable, it is the specific intent of the Parties that such provisions shall be modified
to the minimum extent necessary to make it or its application valid and enforceable.
13. NATURE OF PAYMENTS. Any and all grants or deliveries of Awarded Shares hereunder
shall constitute special incentive payments to Grantee and shall not be taken into account in
computing the amount of salary or compensation of Grantee for the purpose of determining any
retirement, death or other benefits under (a) any retirement, bonus, life insurance or other
employee benefit plan of the Company, or (b) any agreement between the Company and Grantee, except
as such plan or agreement shall otherwise expressly provide.
14. NON-SOLICITATION. In consideration for the grant of this Award, Grantee hereby
agrees that during Grantees Continuous Service and for one year thereafter, Grantee shall not
solicit any person who is an employee of the Company or any Affiliate for the purpose or with the
intent of enticing such employee away from or out of the employ of the Company or any Affiliate.
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(Employee/Consultant Award) | Page 5 |
15. CREDITING PAR VALUE. In connection with the issuance of the Awarded Shares
pursuant to this Agreement and as a result of the Parties expectations of Grantees performance of
future services for the Company or an Affiliate, the Company will transfer from surplus to stated
capital the aggregate par value of the Awarded Shares.
16. AMENDMENT; WAIVER. This Agreement may be amended or modified only by means of a
written document or documents signed by the Company and Grantee. Any provision for the benefit of
the Company contained in this Agreement may be waived, either generally or in any particular
instance, by the Board or by the Committee. A waiver on one occasion shall not be deemed to be a
waiver of the same or any other breach on a future occasion.
17. NOTICE. Any notice or other communication required or permitted hereunder shall
be given in writing and shall be deemed given, effective, and received upon prepaid delivery in
person or by courier or upon the earlier of delivery or the third business day after deposit in the
United States mail if sent by certified mail, with postage and fees prepaid, addressed to the other
Party at its address as shown beneath its signature in this Agreement, or to such other address as
such Party may designate in writing from time to time by notice to the other Party in accordance
with this Section 17.
QUANTA SERVICES, INC. | ||||||
By: | ||||||
Title: | ||||||
Address: | ||||||
Quanta Services, Inc. 2007 Stock Incentive Plan Restricted Stock Agreement
(Employee/Consultant Award) | Page 6 |
GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THIS RESTRICTED STOCK AWARD SHALL VEST
AND THE FORFEITURE RESTRICTIONS SHALL LAPSE, IF AT ALL, ONLY DURING THE PERIOD OF GRANTEES
CONTINUOUS SERVICE OR AS OTHERWISE PROVIDED IN THIS AGREEMENT (NOT THROUGH THE ACT OF BEING GRANTED
THE RESTRICTED STOCK AWARD). GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS
AGREEMENT OR THE PLAN SHALL CONFER UPON GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR
CONTINUATION OF GRANTEES CONTINUOUS SERVICE. Grantee acknowledges receipt of a copy of the Plan,
represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the
Restricted Stock Award subject to all of the terms and provisions hereof and thereof. Grantee has
reviewed this Agreement and the Plan in their entirety, has had an opportunity to obtain the advice
of tax and legal counsel prior to executing this Agreement, and fully understands all provisions of
this Agreement and the Plan. Grantee hereby agrees that all disputes arising out of or relating to
this Agreement and the Plan shall be resolved in accordance with Section 12 of this Agreement.
Grantee further agrees to notify the Company upon any change in the address for notice indicated
in this Agreement.
DATED:
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SIGNED: | |||||||
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Address: | ||||||||
Quanta Services, Inc. 2007 Stock Incentive Plan Restricted Stock Agreement
(Employee/Consultant Award) | Page 7 |