Document:

Exhibit
10.16

 

IPSCO
Inc.

2005 Form
10-K

 

RESTRICTED SHARE AWARD
AGREEMENT

 

THIS AGREEMENT made as of the 24th day of July, 2003

 

B E T W E E N:

 

	
  IPSCO INC., a corporation incorporated under the laws
  of Canada,

  
	
   

  
	
  (hereinafter called the
  “Company”)

  
	
   

  
	
   

  	
  OF THE FIRST PART

  

 

- and -

 

	
  DAVID S.
  SUTHERLAND, of the
  City of Naperville, in the State of Illinois,

  
	
   

  
	
  (hereinafter called the
  “Participant”)

  
	
   

  
	
   

  	
  OF THE SECOND PART

  

 

WHEREAS the Company has established an Incentive Share
Option Plan (which, as amended from time to time by the Board of Directors of
the Company, shall hereinafter be called the “Plan”) whereby certain designated
officers, employees and directors of the Company and its subsidiaries, may from
time to time be granted options, restricted shares and performance units;

 

AND WHEREAS the Participant, as an officer of the Company,
has been so designated to receive a grant of restricted shares of the Company,
being common shares (the “Common Shares”), which are to be issued subject to
the restrictions set forth herein (the “Restricted Shares) and of the Plan;

 

NOW, THEREFORE, THIS
AGREEMENT WITNESSETH
that in consideration of the mutual covenants herein contained the parties do
hereby agree as follows:

 

1.                                                                                      Grant

 

Subject to and conditional
upon compliance with the applicable requirements of each stock exchange on
which the Common Shares of the Company are listed and of any governmental
authority or regulatory body to which the Company is subject, the Company
hereby awards, and issues to and in the name of the Participant an

 

 

aggregate of Thirty-Five
Thousand (35,000) Restricted Shares of the Company on the terms set out in this
Agreement.

 

2.                                                                                      Restriction Period

 

From the date hereof until the
restrictions on the Restricted Shares set forth herein terminate (the “Restriction
Period”), the Restricted Shares shall not be sold, exchanged, transferred,
pledged, hypothecated or otherwise disposed of; provided, however, that any of
the Restricted Shares may be exchanged for any other Common Shares of the
Company that are similarly restricted.

 

Subject to any earlier
termination of the Restriction Period as provided in this Agreement and the
provisions of Section 4 hereof, the Restriction Period shall terminate with
respect to one hundred per cent (100%) of the Restricted Shares upon the
earlier of

 

(a)                                  the date of a Change of Control, and

 

(b)                                 July 23, 2006, provided that the Company has,
for the period beginning July 1, 2003 and ending on June 30, 2006, achieved
positive cumulative net income (as calculated on a consolidated basis in
accordance with Canadian generally accepted accounting principles) attributable
to the Common Shares,

 

and
thereupon the Restricted Shares shall be free of the restrictions contained in
this Agreement (and thereafter shall be referred to as the “Shares”).

 

For
the purposes of this Section 2, the date of a Change of Control means the date
on which any one of the following occurs: 
(i) any person or group of persons acting in concert acquires beneficial
ownership (within the meaning of The Securities Act (Saskatchewan)) of 20% or
more of the outstanding Common Shares of the Company, or securities convertible
into 20% or more of the outstanding Common Shares on a post-conversion basis;
(ii) during a period of not more than 24 months, a majority of the Board of
Directors ceases to consist of the existing membership or successors nominated
by the existing membership or their similar successors; (iii) all or
substantially all of the individuals and entities who were the beneficial
owners of the Company’s outstanding securities entitled to vote do not own more
than 50% of such securities in substantially the same proportions following a
shareholder approved reorganization, merger, or consolidation; or (iv)
shareholder approval of either (A) a complete liquidation or dissolution of the
Company or (B) a sale or other disposition of all or substantially all of the
assets of the Company, or a transaction having a similar effect.

 

3.                                                                                      Restricted Share Certificates

 

The Participant agrees that at
any time prior to the termination of the Restricted Period, the Company may
request that a certificate representing the Restricted Shares be issued with
such legend thereon as the Company may require. Any such certificate shall be
issued at the cost of the Company. The Company shall retain possession of any
certificates issued representing the Restricted Shares until the later to

 

2

 

occur of the termination of
the Restricted Period and the termination of the security interest described in
Section 6.

 

4.                                                                                      Termination of Employment

 

(a)           If the Participant ceases to be an employee of the
Corporation and all Subsidiaries before the expiration of the Restriction
Period as a result of:

 

(i)                                     disability or illness preventing the
Participant from performing the duties routinely performed by the Participant;

 

(ii)                                  retirement at the normal retirement age
prescribed by the Company retirement benefit or pension plan of which the
Participant is a member;

 

(iii)                               death of the Participant; or

 

(iv)                              such other circumstances as may be approved by
the Board of Directors;

 

the
Participant shall be deemed, for the purposes of this Agreement, to be employed
by the Company or Subsidiary, on the last day of the Restriction Period (or, if
earlier, the date of a Change of Control).

 

(b)           If
the Participant ceases to be an employee of the Corporation and all
Subsidiaries in any circumstances other than as described in paragraph (a) of
this Section 4 and Section 9 hereof (including termination by the Company with
or without cause and termination by the Participant), all Restricted Shares
still subject to restriction shall be forfeited by the Participant and shall be
reacquired by the Corporation.

 

5.                                                                                      Rights of Restricted Shareholder

 

Except as set forth in this
Agreement, upon the issuance of the Restricted Shares a Participant shall have
all of the rights of a shareholder, including the right to vote the Restricted
Shares and the right to receive dividends thereon. The Company shall issue the
Participant’s Restricted Shares upon execution of this Agreement, the listing
(or authorization of listing upon official notice of issuance) of the
Restricted Shares upon each stock exchange upon which the Common Shares are
listed and there has been compliance with such laws and regulations as the
Company may deem applicable. The Company agrees to use reasonable commercial
efforts to effect such listing and compliance.

 

6.                                                                                      Withholding Taxes

 

The Participant agrees to pay
the Company, or otherwise make arrangements satisfactory to the Company
regarding the payment of any federal, state or local taxes required or
authorized by law to be withheld with respect to the award of Restricted Shares
or the termination of the Restriction Period (the “Withholding Taxes”). The
Company shall have, to the extent permitted by law, the right to deduct from
any

 

3

 

payment of any kind otherwise
due the Participant, any Withholding Taxes and to condition the delivery of the
Common Shares after the termination of the Restriction Period on the payment to
the Company of the Withholding Taxes. The Participant hereby grants to the
Company a security interest in the Restricted Shares to secure reconveyance of
the Restricted Shares to the Company upon any deemed donation to the Company
and to ensure adequate provision for the Withholding Taxes. The Company shall
release its security interest in respect of any Restricted Shares as to which
(i) the Restriction Period has terminated and (ii) all Withholding Taxes have
been paid. In lieu of payment of such amounts in cash, the Participant may pay
all or a portion of the Withholding Taxes by (a) delivery of Common Shares not
subject to any Restriction Period or (b) having the Company withhold a portion
of the Common Shares otherwise to be delivered upon expiration of the
Restriction Period.

 

7.                                                                                      Other Distributions

 

If any distribution is made to
the holders of Common Shares other than a cash dividend, or if new, different
or additional shares or other securities of the Company or of another company
are received by holders of Common Shares, or if any recapitalization or
reclassification, split-up or consolidation of the Common Shares shall be
effected, or, if in connection with a merger or consolidation of the Company or
a sale by the Company of all or a part of its assets, the Common Shares are
exchanged for a different number or class of shares of stock or other
securities of the Company or for shares of stock or securities of any other
company, then any such other securities shall be subject to similar
restrictions as the Restricted Shares, shall be subject to the security
interest provided for in Section 6 and the number and class of Restricted
Shares, and the restrictions, terms and other conditions applicable to any such
other securities shall be equitably determined by the Management Resources and
Compensation Committee.

 

8.                                                                                      No Further Rights

 

Nothing contained in this
Agreement shall confer upon the Participant any right to continued employment with
the Company, or affect the right of the Company to terminate the employment of
the Participant, with or without cause.

 

9.                                                                                      Leave of Absence

 

If the Participant is an
employee of the Company and is granted a temporary leave of absence from the
Company, such leave of absence shall be deemed a continuation of the employment
of the Participant provided if and so long as:

 

(a)                                  the Company consents in writing to such leave
of absence, and

 

(b)                                 the Participant thereafter returns to full-time
employment with the Company for a period of six months, notwithstanding the
possible expiration of the Restriction Period.

 

For
greater certainty, the provisions of subsection (b) of Section 9 shall be
subject to (i) immediate vesting on the occurrence of a Change of Control as
described in Section 2 and (ii) the deemed continuous employment provisions of
Section 4.

 

4

 

10.                                                                               Notice

 

All notices, demands, payments
or other communications which may or are required to be given under this
Agreement shall be given in writing by personal delivery or ordinary prepaid
mail:

 

	
  (a)

  	
   

  	
  to
  the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IPSCO
  Inc.

  
	
   

  	
   

  	
  650
  Warrenville Road

  
	
   

  	
   

  	
  Suite
  500

  
	
   

  	
   

  	
  Lisle,
  IL  60532

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Vice
  President, General Counsel and Corporate Secretary

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  to
  the Participant:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  David
  Sutherland

  
	
   

  	
   

  	
  Naperville,
  IL

  

 

or
such other address as any party may give in writing from time to time. Such
notices if given by mail shall be deemed to have been received by the party to
whom they are addressed as described herein seventy-two (72) hours after they
have been put in the post, postage prepaid, provided that if postal services
are disrupted by labour disputes, such mailed notices shall be deemed to have
given and received on the date of actual receipt by the addressee.

 

11.                                                                               Plan to Apply

 

The parties agree that the
provisions of the Plan shall be complementary to and read in conjunction with
the terms of this Agreement and in the event of any contradiction or
inconsistency between any provisions of the Plan and those of this Agreement,
the Plan shall prevail.

 

12.                                                                               Dispute

 

Any dispute or disagreement
which shall arise under, or as a result of, or in any way relate to, the
interpretation, construction or application of this Agreement shall be determined
by the Board of Directors of the Company and any such determination shall be
final, binding and conclusive for all purposes.

 

13.                                                                               Further Assurances

 

The Participant shall
forthwith and from time to time do all such acts and things and execute and deliver
all such instruments, writings and assurances as may be necessary to carry out
this Agreement in accordance with its true intent.

 

5

 

14.                                                                               Enurement

 

This Agreement shall be
binding and shall enure to the benefit of the parties hereto and their
successors, executors and administrators.

 

15.                                                                               Governing Law

 

This Agreement shall be
governed by the laws of the State of Illinois.

 

IN WITNESS WHEREOF the parties hereto have executed this
Agreement as of the day and year first above written.

 

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ George H. Valentine

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ David S. Sutherland

  	
   

  
	
   

  	
   

  	
  David S. Sutherland

  
					

 

6Exhibit 10.16a

IPSCO Inc.

2005 Form 10-K

 

2003
Restricted Share Award Agreements with Executives

 

In accordance with the Instructions of Item 601 of Regulation S-K, the
registrant has omitted filing the 2003 Restricted Share and Performance Unit
Award Agreements by and between IPSCO Inc. and the following Executive as
exhibits to this Form 10-K because, except as noted, they are identical,
to the form of Restricted Share and Performance Unit Agreement filed as Exhibit 10.16
with this Form 10-K.

 

1.               John Tulloch, dated
as of July 24, 2003, award of 8,800 restricted shares.

 

2.               Joseph Russo, dated
as of July 24, 2003, award of 6,000 restricted shares.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]