Document:

exv10w18

	 	 	 	 	 

Exhibit 10.18

NONQUALIFIED STOCK OPTION AGREEMENT

The Shaw Group Inc.

2008 Omnibus Incentive Plan

     This Nonqualified Stock Option Agreement (“Agreement”) dated as of _________, 2009 (the
date on which the option evidenced hereby was granted) is entered into between The Shaw Group Inc.
(the “Company”) and Name of Recipient (the “Optionee”), pursuant to The Shaw Group Inc. 2008
Omnibus Incentive Plan (the “Plan”).

     THE PARTIES HERETO AGREE AS FOLLOWS:

     1. Grant of Option. In consideration of the services performed and to be performed by
the Optionee, the Company hereby grants to the Optionee an option (the “Option”) under the Plan to
purchase a total of # of Shares of the Company’s no par value common stock (the “Common Stock”),
upon the following terms and conditions:

          (a) The Option is granted under and pursuant to the Plan, a copy of which is attached hereto
as Exhibit A and incorporated herein by reference, and the Option is subject to all of the
provisions thereof. In case of conflict between one or more provisions of this Agreement and one
or more provisions of the Plan, the provision(s) of the Plan shall govern. Capitalized terms used
herein without definition shall have the same meanings given such terms in the Plan. The Optionee
represents and warrants that he or she has read the Plan and is fully familiar with all the terms
and conditions of the Plan and agrees to be bound thereby.

          (b) The Option is a nonqualified stock option or NQSO as defined in the Plan.

          (c) The Exercise Price of the Option is $price per share (the fair market value per share on
the date of grant of the Option).

     2. Exercise of Option.

          (a) With the exception of the Optionee’s death, disability or retirement, the ramifications of
which are expressly provided for in the Plan, and subject to earlier expiration of this Option as
set forth below and in the Plan, the Option shall not be exercisable for more than a percentage of
the aggregate number of shares subject to the Option determined by the number of full years from
the date of this Agreement to the date of exercise in accordance with the following schedule:

	 	 	 	 	 
	 	 	Number of Shares that may be
	On or after each of the following dates:	 	Purchased
	1st Vesting Date
	 	 	25	%
	2nd Vesting Date
	 	 	50	%
	3rd Vesting Date
	 	 	75	%
	4th Vesting Date
	 	 	100	%

     Notwithstanding the above, the Options shall become fully vested upon the death of the
Optionee. In addition and as provided in the Employment Agreement, the Options shall become fully
vested upon the disability of the Optionee, involuntary termination of the Optionee, or upon a
corporate change.

 

 

          (b) Notwithstanding any other provision of this Agreement or the Plan, the Option shall not be
exercised prior to the date on which the shareholders of the Company approve the adoption of the
Plan. The Option may not be exercised unless, at the date of exercise (i) a registration statement
under the Securities Act of 1933, as amended, relating to the Shares covered by the Option shall be
in effect, or (ii) an exemption from registration is applicable to the shares in the opinion of
counsel for the Company.

     3. Termination of Option. Except as otherwise provided herein, the Option shall
terminate:

          (a) upon the expiration of ten (10) years from the date of this Agreement, or if sooner,

          (b) three (3) months after termination of employment of the Optionee, unless employment is
terminated (i) as a result of death, disability or retirement, in which case the Option and the
right of the Optionee or his or her representative to purchase shares of Common Stock shall
terminate on the one (1) year anniversary following such termination of employment, or (ii) for
“Cause” (as defined in the Plan) in which case the Option shall immediately terminate and no longer
be exercisable.

In no case shall the Option continue to vest during the limited period of exercisability following
the Optionee’s termination of employment provided for in (b)(i) above. During such period, the
Option may only be exercised with respect to the number of shares for which it was exercisable at
the time of such termination of employment.

     4. Acceleration in the Event of Death of Optionee. Notwithstanding anything to the
contrary in this Agreement or in the Plan, and pursuant to the express authority granted to the
Committee under the Plan, the Committee and the Optionee hereby agree that the vesting period for
any unexpired Option under this Agreement shall immediately accelerate upon Optionee’s death, and
in the event of death, any such Option shall be immediately exercisable in full by Optionee’s
appropriate representative(s).

     5. Rights Prior to Exercise of Option. The Optionee shall have no rights as a
stockholder with respect to the shares of Common Stock subject to the Option until the exercise of
his or her rights hereunder and the issuance and delivery to Optionee of a certificate or
certificates evidencing such shares.

     6. Miscellaneous.

          (a) No Representations or Warranties. Neither the Company nor the Committee nor any
of their representatives or agents has made any representations or warranties to the Optionee with
respect to the income tax or other consequences of the transactions contemplated by this Agreement,
and the Optionee is in no manner relying on the Company, the Committee or any of their
representatives or agents for an assessment of such tax or other consequences.

          (b) Employment. Nothing in this Agreement nor in the Plan nor in the granting of the
Option shall confer on the Optionee any right to or guarantee of continued employment with the
Company or any of its Affiliates or in any way limit the right of the Company or any of its
Affiliates to terminate the employment of the Optionee at any time.

          (c) Investment. The Optionee hereby agrees and represents that the Option and any
purchase of the shares of Common Stock under the Option is for the Optionee’s own account for
investment purposes only and not with a view of resale or distribution unless such shares acquired
pursuant to the Option are registered under the Securities Act of 1933, as amended.

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          (d) Stock Issuance. The exercise by the Optionee of the Option granted herein will
not become final nor will shares of Common Stock be issued pursuant thereto unless such exercise
fully complies with the requirements of the Plan and all applicable federal, state and local laws.

          (e) Necessary Acts. The Optionee and the Company hereby agree to perform any further
acts and to execute and deliver any documents which may be reasonably necessary to carry out the
provisions of this Agreement.

          (f) No Transfer. Except as the Committee may otherwise determine in accordance with
Section 5.5 of the Plan, the Option may not be assigned, encumbered or transferred, except by will
or the laws of descent and distribution in the event of death of the Optionee or pursuant to a
qualified domestic relations order pursuant to the Code or the Employee Retirement Security Act of
1974, as amended.

          (g) Severability. The provisions of this Agreement are severable and if any one or
more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions, and any partially enforceable provision to the extent enforceable in any
jurisdiction, shall nevertheless be binding and enforceable.

          (h) Waiver. The waiver by the Company of a breach of any provision of this Agreement
by the Optionee shall not operate or be construed as a waiver of any subsequent breach by the
Optionee.

          (i) Binding Effect; Applicable Law. This Agreement shall bind and inure to the
benefit of the Company and its successors and assigns, and the Optionee and any heir, legatee,
legal representative or assignee as specified in Section 6(f) above of the Optionee. This
Agreement shall be interpreted under and governed by and constructed in accordance with the laws of
the State of Louisiana.

          (j) Administration. The authority to manage and control the operation and
administration of this Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of
the Agreement by the Committee and any decision made by it with respect to the Agreement is final
and binding.

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     IN WITNESS WHEREOF, the parties to this Agreement have executed this Agreement effective as of
the date first above written.

	 	 	 	 	 
	 	THE COMPANY:

THE SHAW GROUP INC.

 	 
	 	 	/s/ Clifton S. Rankin
 	 
	 	 	By: Clifton S. Rankin 	 
	 	 	Title: 	General Counsel and Corporate Secretary 	 
	 
	 	THE OPTIONEE:

 	 
	 	 	 
	 	Name of Optionee	 
	 	 	 

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Exhibit 10.19

RESTRICTED STOCK UNIT AWARD AGREEMENT

The Shaw Group Inc.

2008 Omnibus Incentive Plan

     This Restricted Stock Unit Award Agreement (the “Agreement”) dated as of Grant Date (the date
as of which the Restricted Stock Units evidenced hereby were awarded) is entered into between The
Shaw Group Inc. (the “Company”) and Recipient Name (the “Awardee”), pursuant to The Shaw Group Inc.
2008 Omnibus Incentive Plan (as amended and restated from time to time, the “Plan”).

     THE PARTIES HERETO AGREE AS FOLLOWS:

1. Incorporation of Plan Provisions. The Award evidenced hereby is made under and pursuant
to the Plan, a copy of which is available from the Company’s Secretary and incorporated herein by
reference, and the Award is subject to all of the provisions thereof. Capitalized terms used
herein without definition shall have the same meanings given such terms in the Plan. The Awardee
represents and warrants that he or she has read the Plan and is fully familiar with all the terms
and conditions of the Plan and agrees to be bound thereby.

2. Award of Restricted Stock Units. In consideration of the services performed and to be
performed by the Awardee, the Company hereby awards (the “Award”) to the Awardee under the Plan a
total of # shares Restricted Stock Units subject to the following terms and restrictions.

3. Vesting of Restricted Stock Units. The Restricted Stock Units shall vest according to
the following schedule (each date vesting occurs shall be referenced herein as a “Vesting Date”):

	 	 	 	 	 
	 	 	Cumulative percentage of units
	On or after each of the following dates:	 	 vested:
	1st Vesting Date
	 	 	25	%
	2nd Vesting Date
	 	 	50	%
	3rd Vesting Date
	 	 	75	%
	4th Vesting Date
	 	 	100	%

Notwithstanding the above, occurrence of any of the following events shall cause the immediate
vesting of Restricted Stock Units:

	 	(i)	 	the death of the Awardee
	 
	 	(ii)	 	the retirement of the Awardee on or after the Awardee’s normal retirement date; and
	 
	 	(iii)	 	the disability of the Awardee.

For purposes of this Agreement, a “disability” shall exist when the Awardee is unable to engage in
any substantial, gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than 12 months, as determined by the Committee
in its sole discretion.

 

 

Restricted Stock Unit Awards shall be entirely forfeited by the Awardee in the event that prior to
vesting the Awardee breaches any terms or conditions of the Plan, the Awardee resigns from or is
terminated by the Company, or any condition(s) imposed upon the vesting are not met.

4. Restricted Stock Units are Non-Transferable. The Restricted Stock Units awarded hereby
may not be sold, assigned, transferred, pledged or otherwise disposed of, either voluntarily or
involuntarily, prior to payment.

5. Payment upon Vesting of Restricted Stock Units. Subject to the terms and conditions of
the Plan, the Company shall, as soon as practicable following each Vesting Date, either:

     (a) deliver to you a number of Shares equal to the aggregate number of Restricted Stock Units
which became vested on the Vesting Date;

     (b) make a cash payment to you equal to the Fair Market Value of a Share on the Vesting Date
multiplied by the number of Restricted Stock Units which became vested on the Vesting Date; or

     (c) use any combination of (a) or (b), in the sole discretion of the Company.

Upon payment by the Company, the respective Restricted Stock Units shall therewith be canceled.

6. No Dividend or Voting Rights. The Awardee acknowledges that he or she shall be entitled
to no dividend or voting rights with respect to the Restricted Stock Units.

7. Withholding Taxes; Section 83(b) Election.

     (a) No Shares or cash will be payable upon the vesting of a Restricted Stock Unit unless and
until the Awardee satisfies any federal, state or local withholding tax obligation required by law
to be withheld in respect of this Award. The Awardee acknowledges and agrees that to satisfy any
such tax obligation the Company may deduct and retain from the cash and/or Shares payable upon
vesting of Restricted Stock Units such cash and/or such number of Shares as is equal in value to
the Company’s minimum statutory withholding obligations with respect to the income recognized by
the Awardee upon such vesting (based on minimum statutory withholding rates for federal and state
tax purposes, including payroll taxes, that are applicable to such income). The number of such
Shares to be deducted and retained shall be based on the closing price of the Common Stock on the
applicable Vesting Date.

     (b) The Awardee acknowledges that no election under Section 83(b) of the Internal Revenue Code
of 1986 may be filed with respect to this Award.

8. Miscellaneous.

     (a) No Representations or Warranties. Neither the Company nor the Committee or any of their
representatives or agents has made any representations or warranties to the Awardee with respect to
the income tax or other consequences of the transactions contemplated by this Agreement, and the
Awardee is in no manner relying on the Company, the Committee or any of their representatives or
agents for an assessment of such tax or other consequences.

     (b) Employment. Nothing in this Agreement or in the Plan or in the making of the Award shall
confer on the Awardee any right to or guarantee of continued employment with the Company or any of
its Subsidiaries or in any way limit the right of the Company or any of its Subsidiaries to
terminate the employment of the Awardee at any time.

2

 

     (c) Investment. The Awardee hereby agrees and represents that any Shares payable upon Vesting
of the Restricted Stock Units shall be held for the Awardee’s own account for investment purposes
only and not with a view of resale or distribution unless the Shares are registered under the
Securities Act of 1933, as amended.

     (d) Necessary Acts. The Awardee and the Company hereby agree to perform any further acts and
to execute and deliver any documents which may be reasonably necessary to carry out the provisions
of this Agreement.

     (e) Binding Effect; Applicable Law. This Agreement shall bind and inure to the benefit of the
Company and its successors and assigns, and the Awardee and any heir, legatee, or legal
representative of the Awardee. This Agreement shall be interpreted under and governed by and
constructed in accordance with the laws of the State of Louisiana.

     (f) Administration. The authority to manage and control the operation and administration of
this Agreement shall be vested in the Committee, and the Committee shall have all powers with
respect to this Agreement as it has with respect to the Plan. Any interpretation of the Agreement
by the Committee and any decision made by it with respect to the Agreement is final and binding.

     (g) Amendment. This Agreement may be amended by written agreement of the Awardee and the
Company, without the consent of any other person.

     Executed in duplicate as of the day and year first above written.

	 	 	 	 	 
	THE SHAW GROUP INC.

 	 	 
	By:  	/s/ Clifton S. Rankin
 	 	 
	 	Name:  	Clifton S. Rankin 	 	 
	 	Title:  	General Counsel and Corporate Secretary 	 	 
	 
	AWARDEE:

 	 	 
	 	 	 
	Name: Name of Award Recipient	 	 
	 	 	 
	 

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