Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective October 10, 2022, Dycom Industries, Inc. (the "Company") appointed
Jason T. Lawson as the Company's Vice President and Chief Human Resources
Officer. Prior to joining the Company, Mr. Lawson, 51, was employed as Vice
President of Human Resources for Installed Building Projects, Inc., a leading
national installation contractor for insulation for residential and commercial
builders. Mr. Lawson holds a Bachelor's degree in Human Resources from Franklin
University.
On October 10, 2022, the Company entered into an employment agreement with Mr.
Lawson (the "Employment Agreement") whereby Mr. Lawson will serve as Vice
President and Chief Human Resources Officer of the Company. The Employment
Agreement has an initial term of three years, with automatic one-year extensions
thereafter, unless notice of non-renewal is given by either party; provided that
if there is a "change in control" of the Company at any time, including after a
non-renewal notice, the term of the Employment Agreement will automatically
continue for two years from the date of the change in control.
The Employment Agreement provides for make-whole awards to Mr. Lawson to replace
existing cash and equity awards resulting from his former employment. The cash
make-whole award is $100,000, payable on the next regularly scheduled payroll
date after October 10, 2022. The equity make-whole award provides for Mr. Lawson
to receive a grant of time-based restricted stock units with an aggregate grant
date fair value equal to $350,000, 25% of which will vest annually on each of
the first four anniversaries of the grant date, subject to Mr. Lawson's
continued employment on the applicable vesting dates. Pursuant to the terms of
the Employment Agreement, Mr. Lawson may be reimbursed by the Company for
certain relocation expenses if he chooses to relocate to the Palm Beach Gardens,
Florida area prior to the third anniversary of his employment start date (the
"Moving Expenses"). To the extent that reimbursement of the Moving Expenses is
taxable as ordinary income to Mr. Lawson, the Company will also reimburse his
tax obligations arising out of such reimbursements. Mr. Lawson will be required
to repay the Moving Expenses, together with any amount reimbursed by the Company
for his tax obligations in connection with the Moving Expenses, if his
employment is terminated by the Company for cause, or if he resigns for any
reason, prior to the one year from the reimbursement of any Moving Expenses,
including any payment to cover the taxes on the Moving Expenses.
During the term of the Employment Agreement, the Company will provide Mr. Lawson
with the following compensation and benefits: (i) an annual base salary of
$375,000; (ii) an annual bonus in an amount determined in the sole discretion of
the Company, with a target bonus opportunity of 60% of his base salary; (iii)
eligibility to participate in long-term incentive plans of the Company, with a
potential target award opportunity of 110% of his base salary; (iv) eligibility
to participate in all employee benefit plans or programs of the Company and (v)
expense reimbursement for out of pocket expenses as he may incur from time to
time for and on behalf of the furtherance of the Company's business.
In the event that the Company terminates Mr. Lawson's employment without cause
and prior to a change in control of the Company, Mr. Lawson will be entitled to
a cash severance payment equal to one and one half (1.5) times the sum of: (x)
his then annual base salary, plus (y) the greater of (i) the average amount of
the annual bonus paid to him during the three fiscal years immediately preceding
such termination or resignation and (ii) 50% of his base salary at the rate in
effect on the date of his termination (the "Without Cause Severance Benefits").
The Without Cause Severance Benefits will be paid over the eighteen-month period
immediately following Mr. Lawson's termination of employment without cause and
in such intervals as he would have received payment of his base salary if he had
remained employed with the Company. Mr. Lawson will continue to be eligible to
participate in the Company's health and welfare plans for a period of up to 18
months following his termination of employment by the Company without cause (or
a cash payment in lieu of if participation is not permitted), with such
participation becoming secondary if Mr. Lawson is eligible to participate in the
employee benefit plans of a new employer. If the Company terminates Mr. Lawson's
employment for cause, he will not be entitled to any severance payments other
than accrued and vested benefits as required by law.
If a change in control of the Company should occur and the Company terminates
Mr. Lawson's employment without cause or Mr. Lawson resigns his employment for
good reason, Mr. Lawson will be entitled to the (1) Without Cause Severance
Benefits, and (2) a pro rata annual bonus for the year in which such termination
or resignation occurs equal to the greater of (i) the average amount of the
annual bonus paid to him during the three fiscal years immediately preceding
such termination or resignation or (ii) the target annual bonus for the fiscal
year of his separation from service, multiplied by a fraction equal to the
number of days employed during the year divided by 365. These amounts will be
payable in a single lump sum within five days following such termination or
resignation. Mr. Lawson also will continue to participate in the Company's
health and welfare plans for a period of up to 18 months following his
termination or resignation (or receive a cash payment in lieu of participation
if participation is not permitted), with such participation becoming secondary
if Mr. Lawson is eligible to participate in the employee benefit plans of a new
employer. In addition, all outstanding equity awards held by Mr. Lawson at the
time of his resignation of employment with the Company for good reason or his
termination of employment by the Company without cause on or following a change
in control will fully and immediately vest with performance-based awards vesting
at target.
Payment of severance under the Employment Agreement is contingent upon Mr.
Lawson's execution and delivery of a general waiver and release of claims
against the Company. Mr. Lawson is subject to a five-year confidentiality
covenant and non-competition and non-solicitation covenants that apply for
one-year following his separation from service. Mr. Lawson is also subject to an
assignment of inventions and developments agreement. The Employment Agreement
also provides for arbitration
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in the event of any dispute or controversy arising out of the Employment
Agreement or Mr. Lawson's employment with the Company.
The above summary of the Employment Agreement does not purport to be complete
and is qualified in its entirety by reference to the Employment Agreement, a
copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and
incorporated into this Item 5.02 by reference.
Mr. Lawson does not have any family relationship with any of the Company's
executive officers or directors and is not a party to any transaction with the
Company that would be required to be disclosed pursuant to Item 404(a) of
Regulation S-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Employment Agreement by and between Dycom Industries, Inc. and Jason T. Lawson,
10.1 dated as of October 10, 2022.
99.1 Press Release dated October 10, 2022 by Dycom Industries, Inc. Appointing Jason
T. Lawson as Vice president and Chief Human Resources Officer.
Cover Page Interactive Data File - the cover page XBRL tags are embedded within
104 the Inline XBRL document.
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