Exhibit 10.9
NONCOMPETITION AGREEMENT
THIS NONCOMPETITION AGREEMENT (the Agreement) is made as of December 18, 2009 (the Effective Date) by and between Primoris Services Corporation, a Delaware corporation with offices in several States, including the State of Texas (Buyer), and Mike Killgore, an individual and employee of Company (as defined herein) that has offices in several States, including the State of Texas (Seller).
R E C I T A L S
A. Buyer and Seller are parties to a Membership Interest Purchase Agreement dated as of even date herewith (the Purchase Agreement), pursuant to which Buyer is acquiring all of the membership interests of James Construction Group, L.L.C., a Florida limited liability company (the Company). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Purchase Agreement.
B. Seller beneficially owns a substantial percentage of the equity interests of the Company and, as a result, Seller will derive substantial financial benefit from the transactions contemplated by the Purchase Agreement.
C. Following the consummation of the transactions contemplated by the Purchase Agreement, Buyer will engage in a business that provides site development, heavy civil construction, infrastructure construction projects, including highways and bridges, construction of industrial facilities, equipment installation, storages facilities, process piping, structural steel and maintenance services (the Business).
D. It is a condition of Buyers obligations to consummate the transactions contemplated by the Purchase Agreement that Seller execute and deliver to Buyer a noncompetition agreement incorporating the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the covenants and agreements contained herein and in the Purchase Agreement, and intending to be legally bound hereby, the parties hereto agree as follows:
(i) Seller will not, within the following described Louisiana Parishes, and the States of Texas, Florida, Mississippi, Arkansas, Alabama and Georgia (the Territory), engage in, provide consulting services to, be employed by or have any interest in (whether as a proprietor, partner, director, officer, employee or stockholder) any corporation, general or limited partnership, association, limited liability company, sole proprietorship, trust or other entity or organization, other than Buyer or any of its Affiliates, which is engaged in a business that directly competes with the Business
PARISHES IN THE STATE OF LOUISIANA
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Acadia |
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East Feliciana |
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Ouachita |
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Terrebonne |
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Allen |
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Evangeline |
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Plaquemines |
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Union |
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Ascension |
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Franklin |
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Point Coupee |
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Vermillion |
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Assumption |
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Grant |
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Rapides |
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Vernon |
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Avoyelles |
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Iberia |
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Red River |
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Washington |
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Beauregard |
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Iberville |
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Richland |
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Webster |
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Bienville |
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Jackson |
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Sabine |
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West Baton Rouge |
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Bossier |
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Jefferson |
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St. Bernard |
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West Carroll |
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Caddo |
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Jefferson Davis |
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St. Charles |
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West Feliciana |
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Calcasieu |
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Lafayette |
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St. Helena |
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Winn |
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Caldwell |
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Lafourche |
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St. James |
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Cameron |
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Lasalle |
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St. John the Baptist |
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Catahoula |
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Lincoln |
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St. Landry |
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Claiborne |
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Livingston |
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St. Martin |
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Concordia |
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Madison |
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St. Mary |
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De Soto |
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Morehouse |
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St. Tammany |
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East Baton Rouge |
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Natchitoches |
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Tangipahoa |
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East Carroll |
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Orleans |
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Tensas |
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Mike Killgore
17653 Crossing Boulevard
Baton Rouge, LA 70810
[Signature page follows.]