Document:

Exhibit 10.6

 

Execution Copy

 

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT effective as
of the 1st day of January 2005 (the “Effective
Date”), by and between DAVID L. LAXTON, III,
an individual whose address is 7944 Wrenwood Blvd, Unit A, Baton Rouge,
Louisiana 70809 (the “Executive”), EDGEN LOUISIANA
CORPORATION, a Louisiana corporation (“EDGEN” or the “Company”),
and EDGEN CORPORATION, a Nevada corporation
(“Parent”). 

 

W I
T N E S S E T H

 

WHEREAS, the Executive served as
the Executive Vice President and Chief Financial Officer of Parent and EDGEN pursuant
to an Employment Agreement dated January [1], 2004 (the “Prior
Agreement”), by and between EDGEN and the Executive;

 

WHEREAS, Parent and EDGEN seek to utilize the
Executive’s knowledge, experience, talents and abilities; EDGEN desires to
continue to employ the Executive as the Executive Vice President and Chief Financial
Officer of Parent and of EDGEN, and the Executive desires to be so employed,
subject to the terms and conditions set forth herein; 

 

WHEREAS, EDGEN is a wholly-owned subsidiary of Parent;
and

 

WHEREAS, the Executive and EDGEN
wish to amend and restate the Prior Agreement in its entirety in accordance
with the terms and conditions set forth herein. 

 

NOW, THEREFORE, in consideration of the foregoing and
of the respective covenants and agreements herein contained, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby amend and restate the Prior Agreement
as follows:

 

1.                                       Employment.  

 

1.1                                 General
Provision.  Subject to the terms
and conditions hereinafter set forth, EDGEN hereby agrees to employ the
Executive, and the Executive hereby agrees to serve as the Chief Financial Officer
and Executive Vice President of EDGEN and of Parent, effective on the Effective
Date.  The Executive agrees to perform
such services customary to such office as shall from time to time be assigned
to him by the Board of Directors of Parent and/or EDGEN and/or by Parent’s
Chief Executive Officer.  The Executive
further agrees to use his best efforts to promote the interests of EDGEN and
Parent, and to devote his full business time, business energies, and skill to
the business and affairs of EDGEN and of Parent in accordance with the
directions and orders of the Board of Directors of EDGEN and/or Parent and/or
the Parent’s Chief Executive Officer (the “Chief Executive Officer”).  The Executive may participate in reasonable
outside charitable or unrelated business activities as long as such activities
do not take up a significant amount of the Executive’s time and energies or
interfere in any way with the performance of the Executive’s duties hereunder,
and to the extent that any such activities do require the Executive to devote a
significant amount of his time and energies, such activities must be approved
in advance by the Board of Directors of EDGEN.

 

 

1.2                                 Location
of Employment.  Unless otherwise
agreed by Executive, Executive’s principal place of employment shall be within
50 miles of the Company’s principal executive offices located in Baton Rouge,
Louisiana.  If executive should agree to
any other location, the Company shall (a) pay all out of pocket expenses
incurred by Executive in connection with the relocation; and (b) if
requested by Executive, shall purchase his residence at fair market value as
determined by a real estate appraiser, mutually selected by the Company and
Executive.  If agreement cannot be
reached, each party may select one appraiser and they shall agree on a third
appraiser.  The average of the three
appraisals shall become the fair market value. 
All expenses incurred in connection with the appraisers shall be paid by
the Company.

 

2.                                       Term
of Employment. The Executive’s “Employment
Term” pursuant to this Agreement shall commence on the Effective Date and,
unless terminated earlier pursuant to Section 4 hereof, shall terminate
upon the third anniversary of the Effective Date; provided, however,
that after the third anniversary, the Employment Term shall automatically be
extended for additional periods of one (1) year each unless either EDGEN
or the Executive elects not to extend such term by giving written notice
thereof at least thirty (30) days prior to the end of the then current term; provided,
further, however, that if the Executive is terminated pursuant to
Section 4 below, there shall be no automatic renewal of the Employment
Term.  For purposes hereof, the
last day of the Employment Term shall be deemed the “Expiration Date.”

 

3.                                       Compensation
and Other Related Matters.

 

3.1.                              Base
Salary.  As compensation for the
services rendered by the Executive hereunder, EDGEN shall pay, or shall cause
to be paid, to the Executive during the Employment Term, and the Executive
shall accept, compensation at the rate of Two Hundred Twenty-Five Thousand
Dollars ($225,000) per annum (the “Annual Base Salary”).  EDGEN’s obligation to pay the Annual Base
Salary shall begin to accrue on the Effective Date and shall be paid in
accordance with EDGEN’s customary payroll practices which are in effect from
time to time during the Employment Term. 
The Annual Base Salary may be increased at any time during the
Employment Term by action of the Board of Directors.  The Executive’s Annual Base Salary shall be
subject to all applicable withholding and other taxes.

 

3.2.                              Annual
Bonus.  In addition to the Annual
Base Salary set forth above, during the Employment Term, with respect to each
fiscal year of EDGEN, subject to Section 5.1, the Executive shall be entitled
to receive an annual bonus (the “Annual Bonus”) calculated in accordance
with Schedule A attached hereto. 
The Annual Bonus shall be payable by EDGEN to the Executive with respect
to each year ending on December 31 by April 1 of the following year.  

 

3.3.                              Other
Employment Benefits.  During the
Employment Term, the Executive shall be entitled to the following employment
benefits: 

 

(a)                                  four
(4) weeks of paid vacation in each fiscal year of EDGEN while the
Executive is employed hereunder (one (1) week of which, if not used by the
Executive in any given fiscal year, may be carried over to the next fiscal
year; provided, that the Executive shall not have more than five (5) weeks
of paid vacation in any given fiscal year as a result of such carry over), and
sick leave in accordance with EDGEN’s policies from time to time in effect for
executive officers of EDGEN; provided, that, except as provided herein,
vacation and/or sick

 

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leave time not used in any year may not be carried
over or transferred from one year to another or converted to cash, except in a year in which there is a Change of
Control (as hereinafter defined) where the Executive is no longer employed;

 

(b)                                 participation,
subject to qualification requirements, in medical, life or other insurance or
hospitalization plans and long-term disability policies which are presently in
effect or hereinafter instituted by EDGEN and applicable to its executive
officers generally; 

 

(c)                                  participation,
subject to classification requirements and continued maintenance thereof by
EDGEN in other Executive benefit plans, such as pension and profit sharing
plans, which are from time to time applicable to EDGEN’s executive officers
generally; 

 

(d)                                 an
automobile allowance of $1,200 per month, which shall be used by the Executive
to cover all lease and insurance payments with respect to one automobile of the
Executive’s choice for business purposes, which automobile’s retail value shall
not exceed $75,000.  The Executive shall
provide proof of insurance in limits and with a company approved by EDGEN.  EDGEN shall also be listed as a “named
insured” under the policy.  EDGEN shall
reimburse the Executive, upon the presentation of appropriate receipts, for all
reasonable and necessary maintenance, repair and gasoline costs incurred by the
Executive in connection with the use of such automobile; provided, that
such costs are directly related to the performance by the Executive of his
obligations to EDGEN and/or to Parent hereunder; 

 

(e)                                  EDGEN
shall purchase (subject to the insurability of the Executive at standard rates)
a life insurance policy in the amount of $1,000,000 on the life of the
Executive to provide benefits under Section 5.2 (b) hereof; and

 

(f)                                    a
supplemental payment of $7500 per annum (the “Supplemental Payment”), which
shall be paid in accordance with EDGEN’s customary payroll practices which are
in effect from time to time during the Employment Term.

 

3.4.                              Expenses.  During the Employment Term, the Executive
shall be entitled to receive prompt reimbursement from EDGEN or all travel,
entertainment and out-of-pocket expenses which are reasonably and necessarily
incurred by the Executive in the performance of his duties hereunder (including up to $400 monthly for club dues in
connection with membership in one country club or similar organization);
provided, that, the Executive properly accounts therefor in accordance
with EDGEN’s policies as in effect from time to time and such expenses are
approved by the Chief Executive Officer.

 

3.5                                 Tax
Preparation.  The Company will
reimburse Executive for the cost of tax and financial preparation and planning,
including services that may be requested by Executive from time to time
pertaining to this Agreement, which shall be limited to $1,500 per year,
increased by the greater of (i) six (6%) percent per year or (ii) the
annual percentage increase in the Consumer Price Index for All Urban Consumers
(CPI-U) as published by the Bureau of Labor Statistics, U.S. Department of Labor.

 

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4.                                       Termination.

 

4.1.                              Disability.  In the event that at any time during the
Employment Term, the Executive, due to physical or mental injury, illness,
disability or incapacity, including “disability” within the meaning of the
disability plan(s) that EDGEN then has in effect entitling the Executive to
benefits thereunder (a “Disability”), shall fail to perform
satisfactorily and continuously the duties assigned to him and the services to
be performed by him hereunder for a period of three (3) consecutive months
or for a non-consecutive period of five (5) months within any twelve (12)
month period, EDGEN may terminate his employment for Disability upon not less
than thirty (30) days prior written notice by delivery of a Termination Notice
(as defined below) to the Executive specifying
that the Executive is being terminated for Disability.

 

4.2.                              Death.  The Executive’s employment shall terminate
immediately upon the death of the Executive.

 

4.3.                              Cause.  EDGEN may, at any time and in its sole
discretion, terminate the Executive’s employment for Cause (as herein defined)
by delivery to the Executive of a Termination Notice specifying the nature of
such Cause, effective as of the date (such effective date referred to herein as
a “Termination Date”) of such Termination Notice.  For purposes hereof, termination for “Cause”
shall mean (i) a conviction of, a plea of nolo  contendere, a
guilty plea or confession by the Executive to an act of fraud, misappropriation
or embezzlement or to a felony; (ii) the commission of a fraudulent act or
practice by the Executive affecting EDGEN and/or Parent; (iii) the willful
failure by the Executive to follow the directions of the Board of Directors of
EDGEN; (iv) the Executive’s habitual drunkenness or use of illegal
substances, each as determined in the reasonable discretion of the Board of
Directors of EDGEN; (v) the material breach by the Executive of this
Agreement; or (vi) an act of gross neglect or gross or willful misconduct that
relates to the affairs of Parent and/or EDGEN which Board of Directors of
EDGEN, in its reasonable discretion, deems to be good and sufficient cause; provided,
that if the Executive shall receive a Termination Notice with respect to a
termination for Cause pursuant to subsections (iii), (v) and/or (vi) hereof,
then the Executive shall have the thirty (30) days following his receipt of the
Termination Notice to cure the breach specified therein, if capable of being
cured, to the reasonable satisfaction of Board of Directors of EDGEN prior to
his employment being terminated for Cause pursuant thereto; provided, however,
the Executive shall have the right to cure any such breach only one (1) time
in any twelve (12) month period.

 

4.4.                              Voluntary
Termination by EDGEN.  EDGEN may, at
any time, and in its sole discretion, terminate the employment of the Executive
hereunder for any reason other than for Cause by the delivery to the Executive
of a Termination Notice, effective as of the date of such Termination Notice.

 

4.5.                              Termination
by EDGEN in Conjunction with a Change of Control.  For purposes of this Agreement, a “Change
of Control” means the sale of Parent whether by, merger, consolidation,
recapitalization, reorganization, sale of securities, sale of assets or
otherwise in one transaction or a series of related transactions to a person or
persons (other than to funds managed
by Jefferies Capital Partners or to any person, persons or entities affiliated
therewith), pursuant to which such person or persons (together with its
affiliates) acquires (i) securities representing at least a majority of
the voting power of all securities including all securities

 

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convertible, exchangeable or exercisable for or into voting securities
of Parent, assuming the conversion, exchange or exercise of all securities
convertible, exchangeable or exercisable for or into voting securities (other
than in connection with a successfully completed firm commitment underwritten
public offering pursuant to an effective registration statement under the
Securities Act), or (ii) all or substantially all of the consolidated
assets of Parent.  EDGEN may terminate
the employment of the Executive hereunder in conjunction with any Change of
Control by delivery to the Executive of a Termination Notice, effective as of
the date stated in the Termination Notice.

 

4.6                                 Resignation
by Executive in Conjunction with a Change of Control.   In the event of a “Change of Control” as
defined above, the Executive may elect to resign his position and upon such
resignation shall be entitled to a Severance Package and benefits as set forth
in Section  5.5 below.

 

4.7                                 Termination Notice.  For the
purposes hereof “Termination Notice” shall mean a written notice delivered
by EDGEN and/or Parent to the Executive specifying that EDGEN and/or Parent has
terminated the Executive’s employment hereunder. 

 

5.                                       Compensation
and Benefits During Disability and Upon Termination.  During a Disability Period (as herein
defined) or upon the termination of the Executive’s employment hereunder, the
Executive shall be entitled to the following benefits:

 

5.1.                              Disability.
 During
any period (the “Disability Period”) that the Executive, due to
Disability fails to perform satisfactorily and continuously the duties assigned
to him and the services to be performed by him hereunder, EDGEN shall continue
to pay to the Executive the Annual Base Salary (as in effect at such time) in
accordance with the provisions of Section 3.1 hereof, less any compensation
payable to the Executive under the applicable disability insurance plan(s) of
EDGEN during such Disability Period. 
Thereafter, if the Executive’s employment hereunder is terminated
pursuant to Section 4.1 hereof, EDGEN shall have no further obligations
hereunder after the Termination Date other than the payment of (a) any Annual
Base Salary accrued and unpaid on the Termination Date; (b) the Annual
Base Salary (as in effect during the year of such termination) payable in
accordance with EDGEN’s customary payroll practices (less any compensation
payable to the Executive under the applicable disability insurance plan(s) of
EDGEN), for the twelve (12) month period immediately following the Termination
Date; and (c) any Annual Bonus accrued and unpaid on the Termination Date
for the year prior to the year in which the Executive’s termination occurs and
the Executive’s pro rata portion of the Annual
Bonus due pursuant to Section 3.2 hereof for the year in which such
termination occurs (based upon the number of days during such year that the
Executive was employed (excluding any Disability Period) over 365 days),
payable on the same date as such Annual Bonus would have been payable for such
year pursuant to Section 3.2 hereof had the Employment Term not been so
terminated.

 

5.2.                              Death.  If the Executive’s employment is terminated
pursuant to Section 4.2 hereof as a result of the Executive’s death, EDGEN
shall have no further obligations hereunder after the date of the Executive’s
death other than the payment to the Executive’s spouse, or in default thereof,
to the Executive’s estate, legal representative, or heirs (“Appropriate
Beneficiary”) of:

 

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(a)                                  any
Annual Base Salary or Annual Bonus accrued and unpaid at the date of the
Executive’s death; and

 

(b)                                 the
proceeds of a life insurance policy on the life of the Executive in the amount
of $1,000,000, obtained by EDGEN.  In the
event that payment of the proceeds of the policy are refused by the insurer,
for whatever reason, and suit is filed against the insurer to force payment of
the proceeds, commencing the first EDGEN payroll after suit is filed, EDGEN
shall begin paying the Appropriate Beneficiary, in accordance with its
customary payroll practices, one twelfth (1/12) of the Annual Base Salary (as
in effect during the year of such death) each month, up to a maximum equal to
the Annual Base Salary (as in effect during the year of such death).  In the event the suit against the insurer is
successful, and insurance proceeds are obtained, EDGEN shall first be
reimbursed for all death benefits paid under Section 5.2(b) and all
expenses of the suit, and the remainder, or balance of the proceeds, if any,
shall be paid to the Appropriate Beneficiary within thirty (30) days of receipt
of proceeds from the insurer by EDGEN. 
EDGEN shall have sole discretion in deciding if any suit will be filed
against the insurer and whether or not, and in what amount, any such suit
should be settled or compromised.  In the
event that such policy is not procured, for whatever reason, EDGEN shall pay to
the Appropriate Beneficiary the Annual Base Salary (as in effect during the
year of such death), payable in accordance with EDGEN’s customary payroll
practices, for the 12-month period immediately following the date of the
Executive’s death. 

 

5.3.                              Cause.  If the Executive’s employment is terminated
by EDGEN for Cause pursuant to Section 4.3 hereof, EDGEN shall have no
further obligations hereunder after the Termination Date other than the payment
to the Executive of the Annual Base Salary accrued and unpaid through the
Termination Date.  EDGEN shall not be
obligated to make any bonus payments to the Executive pursuant to Section 3.2
hereof for the year in which such termination occurs or to provide any of the benefits set forth in Section 3.3 of this
Agreement after the Termination Date, except as may be required by applicable
law. Upon termination of employment
for Cause, the Executive shall be responsible for the payment of any COBRA premiums.

 

5.4.                              Voluntary
Termination by EDGEN.  If EDGEN
voluntarily terminates the Executive’s employment hereunder pursuant to Section 4.4
hereof, EDGEN shall have no further obligations hereunder after the Termination
Date, except (a) the payment for the greater of either the 12-month
period immediately following the Termination Date or the remainder of the
Employment Term of the Annual Base Salary (as in effect during the year of such
termination) payable in accordance with EDGEN’s customary payroll practices; (b) the
payment of the premiums, co-payments and deductible expenses due by the
Executive for EDGEN-sponsored medical and health benefits (or the reimbursement
of COBRA premiums), but only to the extent permitted by such policies or plans,
or as otherwise required by law; provided, however, if the
Executive becomes eligible for coverage under any other medical and health
policy after termination of employment, or is, or becomes covered by any other
medical and health policy, EDGEN’s obligation to pay the premiums, co-payments
and deductible expenses due by the Executive for EDGEN-sponsored medical and
health benefits shall cease immediately; and (c) the payment of any Annual Bonus accrued and unpaid on the
Termination Date for the year prior to the year in which the Executive’s
termination occurs and the payment of the Annual Bonus due pursuant to Section 3.2
hereof for the year in which such termination occurs, payable on the

 

6

 

same date as such Annual Bonus would have been payable for such year
pursuant to Section 3.2 hereof had the Employment Term not been so
terminated, provided, however, the Annual Bonus for the year in
which such termination occurs, shall be pro rated,
based on the number of days the Executive was employed (less any Disability
Period) over 365 days.  

 

5.5                                 Termination
in Conjunction with a Change of Control; Severance Package.  If (a) EDGEN terminates the employment
of the Executive hereunder in conjunction with any Change of Control, pursuant
to Section 4.5 hereof; or if the Executive resigns his position in
conjunction with a Change in Control, pursuant to Section 1.3 or 4.6, the
Executive shall be entitled to a severance package consisting of: (i) the
payment of twelve (12) months of Annual Base Salary (as in effect during the
year of such termination) payable in a lump sum, (ii) any Annual Bonus accrued and unpaid on the
Termination Date or resignation date for the year prior to the year in which
the Executive’s termination occurs and the payment of the Annual Bonus
due pursuant to Section 3.2 hereof for the year in which such termination
occurs, payable on the same date as such Annual Bonus would have been payable
for such year pursuant to Section 3.2 hereof had the Employment Term not
been so terminated; provided, however, the Annual Bonus for the
year in which such termination or resignation occurs, shall be pro rated, based on the number of days the Executive was
employed (less any Disability Period) over 365 days, and (iii) the payment
of the premiums, co-payments and deductible expenses due by the Executive for
EDGEN-sponsored medical and health benefits (or the reimbursement of COBRA
premiums), but only to the extent permitted by such policies or plans, or as
otherwise required by law for the period of one year from the date of
termination or resignation; provided, however, if the Executive
becomes eligible for coverage under any other medical and health policy after
termination of employment, or is, or becomes covered by any other medical and
health policy EDGEN’s obligation to pay the premiums, co-payments and
deductible expenses due by the Executive for EDGEN-sponsored medical and health
benefits shall cease immediately.  Notwithstanding
the foregoing, in the event that the Executive, or any of his Affiliates,
participates in any Change of Control transaction as an equity participant
and/or as a purchaser of securities or assets and, immediately after the
consummation of the Change of Control transaction remains, or within six (6) months
of such transaction, becomes actively involved in the operation of the Company,
Parent or any successor entity thereto as an officer, director or employee, the
provisions of this Section 5.5 shall terminate and be of no further force
and effect provided, however, that if the Executive is first terminated in
connection with a Change of Control and then subsequently becomes actively
involved in EDGEN within six (6) months of a Change of Control transaction
the Executive shall pay to the stockholders of the Company immediately prior to
the Change of Control (the “Stockholders”), by delivery to Jefferies
Capital Partners, as representative for the Stockholders pursuant to that
certain Stockholders Agreement, by and among the Stockholders, of cash, bank
check or wire transfer of immediately available funds, an amount equal to the
aggregate amount paid to the Executive under Sections 5.5(i), (ii) and (iii) above
minus an amount equal to the pro rated Annual Bonus for the year in which the
Executive was terminated (based on the number of days the Executive was
employed (less any Disability Period) over 365 days).

 

5.6                                 Resignation
by Executive.  If at any time during
the Employment Term, the Executive resigns from the employ of EDGEN and/or
Parent for any reason whatsoever (other than in conjunction with a Change of
Control), EDGEN shall have no further obligations hereunder after the date of
resignation other than the payment to the Executive of the Annual

 

7

 

Base Salary accrued and
unpaid through the date of resignation. 
EDGEN shall not be obligated and shall be released from all obligations
to make any bonus payments to the Executive pursuant to Section 3.2
hereof.

 

5.7                                 Executive
Benefit Plans and Premiums.  During
any Disability Period, and upon termination of employment for any cause, the
right of the Executive (and that of his dependents) to participate in any
Executive benefit plan(s) of EDGEN, including any health benefit plan(s), shall
be controlled by applicable law, including COBRA, and the terms and conditions
of the Executive benefit plan.  Upon
termination of employment for Cause, the Executive shall be responsible for the
payment of any COBRA premiums.

 

6.                                       Confidentiality.  The Executive acknowledges that it is the
policy of EDGEN and Parent to maintain as secret and confidential all
Confidential Information (as defined herein). 
The parties hereto recognize that the services to be performed by the
Executive pursuant to this Agreement are special and unique, and that by reason
of his employment by EDGEN, Parent, or any Affiliates thereof both before and
after the Effective Date, the Executive will acquire, or may have acquired,
Confidential Information.  The Executive
recognizes that all such Confidential Information is and shall remain the sole
property of EDGEN and Parent, as applicable, free of any rights of the
Executive, and acknowledges that EDGEN and Parent have a vested interest in
assuring that all such Confidential Information remains secret and
confidential.  Therefore, in
consideration of the Executive’s employment with EDGEN and Parent pursuant to
this Agreement, the Executive agrees that at all times from and after the
Effective Date, he will not, directly or indirectly, disclose to any person,
firm, company or other entity, other than Parent, or any of its Affiliates (for
the purposes of this Employment Agreement, the term “Affiliate(s)” means
Parent, its successor(s), any direct or indirect subsidiary of Parent, or its
successor(s), or any division of a subsidiary), any Confidential Information,
except as required in the performance of his duties hereunder, without the
prior written consent of Parent or EDGEN, as applicable, except to the extent
that (i) any such Confidential Information becomes generally available to
the public, other than as a result of a breach by the Executive of this Section 6,
or (ii) any such Confidential Information becomes available to the
Executive on a non-confidential basis from a source other than Parent, or any
of its Affiliates or advisors; provided, that such source is not known
by the Executive to be bound by a confidentiality agreement with, or other
obligation of secrecy to Parent, any of its Affiliates or another party.  In addition, it shall not be a breach of the
confidentiality obligations hereof if the Executive is required by law to
disclose any Confidential Information; provided, that in such case, the
Executive shall (a) give Parent and/or EDGEN, as applicable, the earliest
notice possible that such disclosure is or may be required and (b) cooperate
with Parent and/or EDGEN, as applicable, at Parent’s and/or EDGEN’s expense, as
applicable, in protecting, to the maximum extent legally permitted, the
confidential or proprietary nature of the Confidential Information which must
be so disclosed.  The obligations of the
Executive under this Section 6 shall survive any termination of this
Agreement.  During the Employment Term,
the Executive shall exercise all due and diligent precautions to protect the integrity
of the business plans, customer lists, statistical data and compilation,
agreements, contracts, manuals or other documents of Parent and/or EDGEN, as
applicable which embody the Confidential Information, and upon the expiration
or the termination of the Employment Term, the Executive agrees that all
Confidential Information in his possession, directly or indirectly, that is in
writing, computer generated, or other tangible form (together with all
duplicates thereof) will forthwith be returned to Parent and/or EDGEN, as

 

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applicable, and will not be retained by the Executive or furnished to
any person, either by sample, facsimile, film, audio or video cassette,
electronic data, verbal communication or any other means of communication.  The Executive agrees that the provisions of
this Section 6 are reasonably necessary to protect the proprietary rights
of Parent and EDGEN in the Confidential Information and their trade secrets,
goodwill and reputation.

 

For purposes hereof, the term “Confidential
Information” means all information heretofore or hereafter developed or
used by Parent, or any of its Affiliates relating to the Business (as herein
defined), and the operations, employees, customers, suppliers and distributors
of Parent and/or any of its Affiliates, including, but not limited to, customer
lists, customer orders, purchase orders, financial data, pricing information
and price lists, business plans and market strategies and arrangements, all
books, records, manuals, advertising materials, catalogues, correspondence,
mailing lists, production data, sales materials and records, purchasing
materials and records, personnel records, quality control records and
procedures included in or relating to the Business or any of the assets of
Parent and/or its Affiliates, and all trademarks, trade names, copyrights and
patents, and applications therefor, all trade secrets, inventions, processes,
procedures, research records, market surveys and marketing know-how and other
technical papers of Parent and/or any of
its Affiliates, except that notwithstanding anything to the contrary contained
herein, the term Confidential Information shall not include any such
information that is publicly known or that becomes publicly known (other than
as a result of any action on the part of, or a breach of the provisions of this
Section 6, by the Executive).  

 

For purposes hereof, the term “Business” shall
mean the business of (a) distributing and selling industrial steel pipe,
including large OD pipe, heavy wall and X-grade pipe, DSAW, seamless,
continuous weld, ERW pipe and abrasive resistant pipe (mine pipe), and valves,
alloy pipe, flanges and fittings, welded fittings and flanges (high yield,
stainless, exotic carbon, chrome and low temp) per ANSI B16.9 and B16.5
(commodity lines and specials, i.e. anchor flanges and swivel ring flanges)
forged steel fittings, outlets, pipe nipples, swage nipples, hot induction
bends and Pikotek gaskets/insulation kits, stainless steel and other nickel
alloy and hastelloy pipe, valves, fittings and flanges, including all chrome
grades, (collectively, the “Products”); (b) providing added value
services to such pipe and steel Products, including, flame cutting, sawing,
welding, sandblasting, priming, top coat painting, epoxy applications and end
finishing, and conversion of pipe to other components or products; (c) entering
into joint venture, partnership or agency arrangements relating to the sale or
distribution of surplus stainless steel pipe, fittings and flanges, but
excluding value-added services if not sold as part of the Products; and (d) any
endeavor entered into by Parent or any Affiliates after the signing of this
agreement, but before termination of the employment of the Executive.  Notwithstanding anything herein to the
contrary, the definition of the Business shall not include the manufacturing of
steel pipe. 

 

7.                                       Noncompetition;
Nonsolicitation.

 

7.1.                              If
the Executive’s employment is terminated for Disability or for Cause, pursuant
to Section 4.1 or 4.3 hereof, respectively, or if the Executive resigns,
pursuant to Section 5.6 hereof, during the Employment Term and for a
period of twelve (12) months following the date of the termination of the
Executive’s employment with EDGEN, or for a period of twelve (12) months
following the date of receipt of the last payment by the Executive

 

9

 

of any payment made pursuant to any part of Section 5, whichever
is longer, the Executive agrees he will not, directly or indirectly, engage in,
own, manage, operate, provide financing to, control or participate in the
ownership, management or control of, or be connected as an officer, employee,
partner, director, or otherwise with, or have any financial interest in, or aid
or assist anyone else in the conduct of, any business, that competes, directly
or indirectly, with the Business or is otherwise engaged in activities
competitive with the Business, in each and every area (as designated in Schedule B
attached hereto) [Need to confirm Schedule B remains accurate] where
Parent and/or EDGEN is engaged in the sale and/or distribution of the Products
on the date the Executive’s employment is terminated pursuant to Section 4.1
or 4.3 hereof, or resigns, pursuant to Section 5.6 hereof, and he will
not, either personally or by his agent or by letters, circulars or
advertisements, whether for himself or on behalf of any other person, company,
firm or other entity, canvass or solicit, or enter into or effect (or cause or
authorize to be solicited, entered into or effected) directly or indirectly,
for or on behalf of himself or any other person, any business relating to the
sale and/or distribution of any Products from any person, company, firm or
other entity, who is, or has at any time within two (2) years prior to the
date of such action been a customer or supplier of Parent or any of its
Affiliates.

 

7.2.                              If
the Executive’s employment is terminated without Cause pursuant to Section 4.4
of this Agreement, and provided that EDGEN (pursuant to Section 5.4 of
this Agreement) pays Executive the Annual Base Salary as set forth in Section 3.1
and the employment benefits set forth in Section 3.3(b) hereof in
effect at the time of termination of employment (but only to the extent permitted
by such policies or plans, or as otherwise required by law) in accordance with
EDGEN’s customary payroll practices which are in effect at the time payments
are due (the “Post-termination Benefits”), the Executive agrees he will
not, directly or indirectly, engage in, own, manage, operate, provide financing
to, control or participate in the ownership, management or control of, or be
connected as an officer, employee, partner, director, or otherwise with, or
have any financial interest in, or aid or assist anyone else in the conduct of,
any business, that competes, directly or indirectly, with the Business or is
otherwise engaged in activities competitive with the Business, in each and
every area (as designated in Schedule B attached hereto), where EDGEN
is engaged in the sale and/or distribution of the Products on the date the
Executive’s employment is terminated hereunder for a period of twelve (12)
months from the date of the termination (the “Initial Period of
Noncompetition”).  EDGEN will have
the option of extending the Period of Noncompetition for an additional
consecutive twelve (12) months (the “Extended Period of Noncompetition”)
upon giving written notice to the Executive at least one hundred and twenty
(120) days before expiration of the Initial Period of Noncompetition.  During the Extended Period of Noncompetition,
EDGEN shall pay the Executive the Annual Base Salary and the Post-termination
Benefits, in accordance with EDGEN’s customary payroll practices which are in
effect at the time payments are due, for the entire Extended Period of
Noncompetition.  In the event that EDGEN
fails to pay the Annual Base Salary and the Post-termination Benefits called
for herein, the Executive shall be automatically released from all restrictions
on the right to compete, but shall still be entitled to all rights called for
under any other section of this Agreement, including but not limited to
payments and benefits due under Section 5.4 of this Agreement. If the
Executives employment is terminated pursuant to Section 4.4 (voluntary
termination by EDGEN) hereof, and upon condition that the Annual Base Salary
and Post-termination Benefits are paid for the period designated, the Executive
further agrees he will not during the Period of Noncompetition or the Extended
Period of Noncompetition, either personally or by his agent or by letters,
circulars, or

 

10

 

advertisements, and whether for himself or on behalf of any other
person, company, firm or other entity, canvass or solicit, or enter into or
effect (or cause or authorize to be solicited, entered into or effected),
directly or indirectly, for or on behalf of himself or any other person, any
business relating to the sale and/or distribution of any Products from any
person, company, firm or other entity, who is, or has at any time within two (2) years
prior to the date of such action been a customer or supplier of Parent or any
of its Affiliates.

 

7.3.                              If
the Executive’s employment is terminated due to the Change of Control of Parent
pursuant to Section 4.5 of this Agreement or if the Executive resigns his
position due to the Change in Control pursuant to Section 4.6, and
provided that EDGEN (pursuant to Section 5.5 of this Agreement) pays
Executive the Annual Base Salary and Post-termination Benefits to the extent
applicable, the Executive agrees he will not, directly or indirectly, engage
in, own, manage, operate, provide financing to, control or participate in the
ownership, management or control of, or be connected as an officer, employee,
partner, director, or otherwise with, or have any financial interest in, or aid
or assist anyone else in the conduct of, any business, that competes, directly
or indirectly, with the Business or is otherwise engaged in activities
competitive with the Business, in each and every area (as designated in Schedule B
annexed hereto), where EDGEN is engaged in the sale and/or distribution of the
Products on the date the Executive’s employment is terminated hereunder for a
period of twelve (12) months from the date of the termination (the “Change
of Control Period of Noncompetition”). 
EDGEN shall pay the Executive the Annual Base Salary and
Post-termination Benefits for the entire Change of Control Period of
Noncompetition.  In the event that EDGEN
fails to pay the Annual Base Salary and Post-termination Benefits, the
Executive shall be automatically released from all restrictions on the right to
compete, but shall still be entitled to all rights called for under any other section of
this Agreement, including but not limited to payments and benefits due under Section 5.5
of this Agreement. 

 

7.4.                              If
the Executive’s employment is terminated pursuant to Section 4.5 hereof or
if the Executive resigns his position due to the Change in Control pursuant to Section 4.6,
and provided that EDGEN (pursuant to Section 5.5 of this Agreement) pays
Executive the Annual Base Salary and Post-termination Benefits to the extent
applicable, the Executive further agrees he will not during the Change of
Control Period of Noncompetition, either personally or by his agent or by
letters, circulars, or advertisements, and whether for himself or on behalf of
any other person, company, firm or other entity, canvass or solicit, or enter
into or effect (or cause or authorize to be solicited, entered into or
effected), directly or indirectly, for or on behalf of himself or any other
person, any business relating to the sale and/or distribution of any Products
from any person, company, firm or other entity, who is, or has at any time
within twenty-four (24) months prior to the date of such action been a customer
or supplier of Parent or any of its Affiliates.

 

7.5.                              The
Executive agrees that, at all times from after the Effective Date hereof and
for a period of two (2) years following the date of the termination of his
employment with Parent or EDGEN for any reason whatsoever, the Executive will
not, either personally or by his agent or by letters, circulars or
advertisements, and whether for himself or on behalf of any other person,
company, firm or other entity, (i) seek to persuade any Executive of
Parent or any of its Affiliates, subsidiaries or divisions to discontinue his
or her status or employment therewith or to become employed or to provide
consulting or contract services in a business or activities likely

 

11

 

to be competitive with the Business; or (ii) solicit, employ or
engage any such person at any time following the date of cessation of
employment of such person with the Parent or any of its Affiliates.

 

8.                                       Inventions.  Any and all inventions made, developed or
created by the Executive (whether at the request or suggestion of Parent and/or
EDGEN or otherwise, whether alone or in conjunction with others, and whether
during regular working hours or otherwise) during the period of his employment
with Parent and EDGEN, which may be directly or indirectly useful in, or relate
to, the Business of the business of any of Parent’s Affiliates, shall be
promptly and fully disclosed by the Executive to the Board of Directors of
Edgen, and shall be Parent’s and/or EDGEN’s, as applicable, exclusive property
as against the Executive.  The Executive
shall promptly deliver to the Board of Directors of EDGEN all papers, drawings,
models, data and other material relating to any invention made, developed or
created by him as aforesaid.  The
Executive hereby assigns any and all such inventions to EDGEN and hereby agrees
to execute and deliver such agreements, certificates, assignments or other
documents as may be necessary to effect the assignment to EDGEN of any and all
such inventions as contemplated by this Section 8.  The Executive shall, upon EDGEN’s or Parent’s
request, as applicable, and without any payment therefor, execute any documents
necessary or advisable in the opinion of EDGEN’s counsel to direct issuance of
patents or copyrights to EDGEN or Parent, as applicable, with respect to such
inventions as are to be in EDGEN’s or Parent’s exclusive property, as
applicable as against the Executive under this Section 8 or to vest in
EDGEN or Parent, as applicable, title to such inventions as against the
Executive, the expense of securing any such patent or copyright, to be borne by
EDGEN or Parent, as applicable.

 

9.                                       Breach.  

 

9.1.                              Both parties recognize that the services to be
rendered under this Agreement by the Executive are special, unique and
extraordinary in character, and that in the event of a breach by Executive of
the material terms and conditions of the obligations to be performed by him
hereunder, EDGEN shall be entitled, if it so elects, to institute and prosecute
proceedings in any court of competent jurisdiction, either in law or in equity,
to obtain damages for any breach of this Agreement, or to enforce the specific
performance thereof by the Executive. 
Without limiting the generality of the foregoing, the parties
acknowledge that a breach by the Executive of his material obligations under
Sections 6, 7 or 8 could cause EDGEN irreparable harm for which no adequate
remedy at law would be available in respect thereof and that therefore upon
proof of the same EDGEN would be entitled to seek and obtain injunctive relief
with respect thereto.

 

9.2.                              In
the event of a breach by EDGEN of the material terms and conditions of the obligations
to be performed by it hereunder, the Executive shall provide EDGEN with written
notice thereof, specifying the nature of the breach, within seven (7) days
of such breach and EDGEN shall have thirty (30) days followings its receipt of
such notice to cure the breach specified therein to the reasonable satisfaction
of Executive.  To the extent EDGEN fails
to cure such breach as provided herein, the Executive shall then be entitled,
if he so elects, to institute and prosecute proceedings in any court of
competent jurisdiction, either in law or in equity, to obtain damages for such
breach.  To the extent EDGEN fails to
cure such breach as provided herein, the non-competition restrictions set forth
in Section 7 shall terminate.

 

12

 

10.                                 Parent’s
Guaranty. Parent hereby guarantees all of EDGEN’s obligations under this
Agreement, including, but not limited to, prompt and full payment of any and
all amounts due the Executive under this Agreement.

 

11.                                 Insurance.   The Executive acknowledges and agrees that
EDGEN may obtain a life insurance policy on the life of the Executive with
EDGEN named as the beneficiary.  If EDGEN
so elects, the Executive covenants and agrees to cooperate fully with EDGEN’s
efforts to obtain such insurance policy.

 

12.                                 Conflicting
Agreements.  The Executive hereby
represents and warrants to EDGEN that (a) neither the execution of this
Agreement by the Executive nor the performance by the Executive of any of his
obligations or duties hereunder will conflict with or violate or constitute a
breach of the terms of any employment or other agreement to which the Executive
is a party or by which the Executive is bound; and (b) the Executive is
not required to obtain the consent of any person, firm, corporation or other
entity in order to enter into this Agreement or to perform any of his
obligations or duties hereunder.

 

13.                                 Further
Assurances.  The Executive hereby
agrees to execute and deliver such agreements, certificates or other documents
as may be reasonably requested by EDGEN, which may be necessary or are required
hereunder.

 

14.                                 Miscellaneous.

 

14.1.                        Successors; Binding
Agreement.  This Agreement and all
rights of the Executive hereunder shall inure to the benefit of the parties
hereto and their respective heirs, personal representatives, successors and
assigns; provided, that the duties of the Executive hereunder are
personal to the Executive and may not be delegated or assigned by him.  

 

14.2                           Notice.  All notices and other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly
given when delivered personally, by registered or certified mail, postage
prepaid, or by a nationally recognized overnight courier service as follows:

 

(a)                                  If
to the Executive:

 

at his
then current address

included
in the employment records of EDGEN;

 

With a copy to:

 

John C. Miller

Kantrow, Spaht, Weaver, and Blitzer

PO Box  2997

Baton Rouge, LA    70821-2997

 

13

 

(b)                                 If
to EDGEN:

 

c/o
EDGEN LOUISIANA CORPORATION

18444 Highland Road

Baton
Rouge, LA  70809

Attention:  Chief Executive Officer

 

with a simultaneous copy to:

 

Jefferies
Capital Partners 

520 Madison Avenue, 8th Floor

New York, New York 10022

Attention:  James Luikart
and Nicholas Daraviras

 

and
to:

 

Dechert LLP

4000 Bell Atlantic Tower

1717 Arch Street

Philadelphia, Pennsylvania 19103

Attention:  Carmen J. Romano, Esq.

 

Or to such other address as any party may have
furnished to the other parties in writing in accordance herewith.

 

14.3                           Governing
Law.  This Agreement shall be
governed by and in accordance with the laws of the State of Louisiana without
regard to conflict of law rules thereof. 

 

14.4                           Waivers.  The waiver of either party hereto of any
right hereunder or of any failure to perform or breach by the other party
hereto shall not be deemed a waiver of any other right hereunder or of any
other failure or breach by the other party hereto, whether of the same or a
similar nature or otherwise.  No waiver
shall be deemed to have occurred unless set forth in a writing executed by or
on behalf of the waiving party.  No such
written waiver shall be deemed a continuing waiver unless specifically stated
therein, and each such waiver shall operate only as to the specific term or
condition waived and shall not constitute a waiver of such term or condition
for the future or as to any act other than that specifically waived.

 

14.5                           Most
Favored Status.  The Company and
Executive intend that Executive receive the benefit of any new or additional
compensation programs developed by the Company hereafter.  Accordingly, at such times as the Board of
Directors approves any new or additional compensation concepts or programs for
any officer of the Company (other than compensation based on sales or other
commissions), then such new or additional concept or program shall also apply
to Executive and the Agreement shall be amended by the Company and Executive
upon request by Executive to incorporate such new or additional concept or program.

 

14.6                           Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which

 

14

 

shall otherwise remain in full force and effect.  Moreover, if any one or more of the
provisions contained in this Agreement is held to be excessively broad as to
duration or scope, such provisions shall be construed by limiting and reducing
them so as to be enforceable to the maximum extent compatible with applicable
law.  Specifically, the Executive
acknowledges that substantial funds, goodwill and assets will have been
expended by EDGEN and/or Parent to fully utilize the knowledge, talent and
skills of the Executive, accordingly, if any portion of Section 7 shall be
held to be unenforceable, the obligations of the Executive stated in Section 7
shall nonetheless be held to be enforceable for the longest period of time, for
the largest geographical area, and to the fullest extent allowed by law.

 

14.7                           Entire
Agreement.  This Agreement sets forth
the entire agreement and understanding of the parties in respect of the subject
matter contained herein, and supersedes all prior agreements, promises,
covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, Executive or representative of either party in
respect of said subject matter.

 

14.8                           Headings
Descriptive.  The headings of the
several paragraphs of this Agreement are inserted for convenience only and
shall not in any way affect the meaning or construction of any provision of
this Agreement.

 

14.9                           Obligations
Absolute.  The obligations of EDGEN
and the Executive shall be absolute and unconditional and shall not be affected
by any circumstances, including without limitation the Executive’s receipt of
compensation and benefits from another employer in the event that the Executive
accepts new employment following the termination of his employment under this
Agreement.

 

14.10                     Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

 

14.11                     Survival.  The rights and obligations set forth in Section 5.5
shall survive the termination of this Agreement.

 

15

 

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

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/  DAVID L.
  LAXTON, III

  	
   

  
	
   

  	
  David L. Laxton, III

  
	
   

  	
   

  
	
   

  	
  EDGEN LOUISIANA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  DANIEL J.
  O’LEARY

  	
   

  
	
   

  	
   

  	
  Name: Daniel J. O’Leary

  	
   

  
	
   

  	
   

  	
  Title:  
  President

  	
   

  
	
   

  	
   

  
	
   

  	
  Only
  with respect to Section 10 hereof:

  
	
   

  	
   

  
	
   

  	
  EDGEN
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  DANIEL J.
  O’LEARY

  	
   

  
	
   

  	
   

  	
  Name: Daniel J. O’Leary

  	
   

  
	
   

  	
   

  	
  Title:  
  President

  	
   

  
						

 

16Exhibit 10.7

 

EMPLOYMENT
AGREEMENT

 

This AGREEMENT made as of
the 1st day of January, 2004 by and between ROBERT L. GILLELAND, an individual residing at 61 James
Towne Court, Baton Rouge, LA 70809 (the “Executive”), EDGEN ALLOY PRODUCTS GROUP, L.L.C.,
a Louisiana limited liability company (the “Company”), and EDGEN CORPORATION, a Nevada corporation (“Parent”).

 

W I T N E S S E T H

 

WHEREAS, the Executive serves as the President of the
Company, which is a wholly-owned subsidiary of Parent; and

 

WHEREAS, Parent and the Company seek to utilize the
Executive’s knowledge, experience, talents and abilities and desire to employ
the Executive as the President of the Company, and the Executive desires to be
so employed, subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and
of the respective covenants and agreements herein contained, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto intending to be legally bound hereby agree as
follows:

 

1.                                       Employment.  Subject to the terms and conditions
hereinafter set forth, the Company and Parent hereby agree to employ the
Executive, and the Executive hereby agrees to serve as the President of the
Company, effective on January 1, 2004.  The
Executive agrees to perform such services customary to such office as shall
from time to time be assigned to him by the Board of Directors of Parent (the “Board
of Directors”) and/or by Parent’s Chief Executive Officer, or his designee
(collectively the “Chief Executive Officer”).  The Executive further agrees to use his best
efforts to promote the interests of the Company and of Parent, and to devote
his full business time and entire energies and skill to the business and
affairs of the Company and of Parent in accordance with the directions and
orders of the Board of Directors and/or the Chief Executive Officer; provided,
however, that it shall not be a violation of this Agreement for the
Executive to serve on corporate, civic, or charitable boards or committees or
manage personal investments, as long as such activities do not interfere in any
substantial respect with the Executive’s responsibilities hereunder.

 

2.                                       Term
of Employment.  The Executive’s “Employment
Term” pursuant to this Agreement shall commence on the date hereof (the “Effective
Date”) and, unless terminated earlier pursuant to Section 4 hereof, shall
terminate upon the first anniversary of the Effective Date; provided, however,
that the Employment Term shall automatically be extended on a day-by-day basis
(so that the remaining term shall always be one (1) year) unless either the
Company or the Executive elects not to renew such term by giving written notice
(an “Employment  Expiration Notice”) thereof; provided, further,
however, that if the Executive is terminated pursuant to Section 4
below, there shall be no automatic daily renewal of the Employment Term.

 

 

The Employment
Term shall terminate on the one (1) year anniversary of the date of receipt of the
Employment Expiration Notice by the Employee or the Employer, as applicable.

 

3.                                       Compensation
and Other Related Matters.

 

3.1.                              Base
Salary.  As compensation for the
services rendered by the Executive hereunder, the Company shall pay, or shall
cause to be paid, to the Executive during the Employment Term, and the
Executive shall accept, compensation at the rate of Two Hundred Ten Thousand,
Seventeen Dollars ($210,017) per annum (the “Annual Base Salary”).  The Company’s obligation to pay the Annual
Base Salary shall begin to accrue on the Effective Date and shall be paid in
accordance with the Company’s customary payroll practices which are in effect
from time to time during the Employment Term. 
The Annual Base Salary may be increased at any time during the
Employment Term by recommendation of the Chief Executive Officer to the Board
of Directors.  The Executive’s Annual
Base Salary shall be subject to all applicable withholding and other taxes.

 

3.2.                              Annual
Bonus.  In addition to the Annual
Base Salary set forth above, during the Employment Term; the Executive shall be
entitled to receive an annual bonus (the “Annual Bonus”) in the amount
and calculated in the manner set forth on Schedule A annexed hereto.  The Annual Bonus shall be payable by the
Company to the Executive with respect to each year ending on December 31 by
March 15 of the following year.

 

3.3.                              Other
Employment Benefits.  During the
Employment Term, the Executive shall be entitled to the following employment
benefits:

 

(a)                                  Four
(4) weeks of paid vacation in each fiscal year of the Company while the
Executive is employed hereunder one (1) week of which, if not used by the
Executive in any given fiscal year, may be carried over to the next fiscal
year; provided, that the Executive shall not have more than five (5)
weeks of paid vacation in any given fiscal year as a result of such carry over
and sick leave in accordance with the Company’s policies from time to time in
effect for executive officers of the Company; provided, that, as
provided herein, vacation and/or sick leave time not used in any year may not
be carried over or transferred from one year to another or converted to cash,
except in a year in which there is a Change of Control (as hereinafter defined)
where the Executive is no longer employed;

 

(b)                                 participation,
subject to qualification requirements, in medical, life or other insurance or
hospitalization plans and long-term disability policies which are presently in
effect or hereafter instituted by the Company and applicable to its executive
officers generally;

 

(c)                                  participation,
subject to classification requirements and continued maintenance thereof by the
Company in other employee benefit plans, such as pension and profit sharing
plans, which are from time to time applicable to the Company’s executive
officers generally; and

 

(d)                                 an
automobile allowance of One Thousand Two Hundred Dollars ($1,200) per month,
which shall be used by the Executive to cover all lease and insurance payments
with respect to one automobile of the Executive’s choice for business purposes.  The

 

2

 

Company shall
reimburse the Executive, upon the presentation of appropriate receipts, for all
maintenance, repair and gasoline costs incurred by the Executive in connection
with the use of such automobile; provided, that such costs are directly
related to the performance by the Executive of his obligations to the Company
hereunder.

 

3.4.                              Expenses.  During the Employment Term, the Executive
shall be entitled to receive prompt reimbursement from the Company of all
travel, entertainment and out-of-pocket expenses which are reasonably and
necessarily incurred by the Executive in the performance of his duties
hereunder; provided that the Executive properly accounts therefor in
accordance with the Company’s policies as in effect from time to time and such
expenses are approved by the Chief Executive Officer.

 

4.                                       Termination.

 

4.1.                              Disability.  In the event that at any time during the
Employment Term, the Executive, due to physical or mental injury, illness,
disability or incapacity, including “disability” within the meaning of the
disability plan(s) which the Company then has in effect entitling the Executive
to benefits thereunder (“Disability”), shall fail to perform satisfactorily
and continuously the duties assigned to him and the services to be performed by
him hereunder for a period of three (3) consecutive months or for a
non-consecutive period of five (5) months within any twelve (12) month period,
the Company may terminate his employment for Disability upon not less than
thirty (30) days prior written notice by delivery of a Termination Notice (as
defined below) to the Executive.

 

4.2.                              Death.  The Executive’s employment shall terminate
immediately upon the death of the Executive.

 

4.3.                              Cause.  The Company may, at any time and in its sole
discretion, terminate the Executive’s employment for Cause (as herein defined)
by delivery to the Executive of a Termination Notice specifying the nature of
such Cause, effective as of the date (such effective date referred to herein as
a “Termination Date”) of such Termination Notice.  For purposes hereof, termination for “Cause”
shall mean (i) a conviction of, a plea of nolo  contendere, a
guilty plea or confession by the Executive to an act of fraud, misappropriation
or embezzlement or to a felony; (ii) the commission of a fraudulent act or
practice by the Executive affecting the Company and/or Parent; (iii) the
willful failure by the Executive to follow the directions of the Board of
Directors or the Chief Executive Officer; (iv) the Executive’s habitual
drunkenness as determined in the reasonable discretion of the Board of
Directors or use of illegal substances; (v) the material breach by the
Executive of this Agreement or (vi) an act of gross neglect or gross or willful
misconduct that relates to the affairs of the Company and/or Parent which the
Board of Directors of the Company in its reasonable discretion deems to be good
and sufficient cause; provided, that the Executive shall receive a
Termination Notice with respect to a termination for Cause pursuant to
subsections (iii), (v) and/or (vi) hereof and the Executive shall have the
thirty (30) days following his receipt of the Termination Notice to cure the
breach specified therein prior to his employment being terminated for Cause
pursuant thereto.

 

3

 

4.4.                              Voluntary
Termination by Company.  The Company
may, at any time, and in its sole discretion, terminate the employment of the
Executive hereunder for any reason other than for Cause by the delivery to the
Executive of a Termination Notice, effective as of the date of such Termination
Notice.

 

4.5.                              Termination
by Company in Conjunction with a Change of Control.  For purposes of this Agreement, a “Change
of Control” means the sale of Parent whether by, merger, consolidation,
recapitalization, reorganization, sale of securities, sale of assets or
otherwise in one transaction or a series of related transactions to a person or
persons (other than to Harvest Partners III, L.P. or to any person, persons or
entities affiliated therewith), pursuant to which such person or persons
(together with its affiliates) acquires (i) securities representing at least a
majority of the voting power of all securities of Parent, including securities
convertible, exchangeable or exercisable for or into voting securities of
Parent, assuming the conversion, exchange or exercise of all securities
convertible, exchangeable or exercisable for or into voting securities or (ii)
all or substantially all of the consolidated assets of Parent.  The Company may terminate the employment of
the Executive hereunder in conjunction with any Change of Control in accordance
with Section 5.6 hereof by delivery to the Executive of a Termination Notice
(as defined above), effective as of the date stated in the Termination Notice.

 

4.6.                              Executive’s
Resignation for Good Reason.  After a
Change of Control, the Executive may terminate his employment for Good Reason
in accordance with Section 5.6.  For
purposes hereof, “Good Reason” shall mean, without the Executive’s
consent: (i) the assignment to the Executive of any duties inconsistent in any
material respect with the Executive’s position (including status, offices,
duties and reporting relationships), authority, duties or responsibilities as
contemplated by Section 1 hereof, or any other action by the Company which
results in a significant diminution in such position, authority, duties, or
responsibilities, excluding any isolated and inadvertent action not taken in
bad faith and which is remedied by the Company within ten (10) days after
receipt of notice thereof from the Executive; (ii) any failure by the Company
to comply with any of the provisions of Section 3 hereof other than an isolated
and inadvertent failure not committed in bad faith and which is remedied by the
Company within ten (10) days after receipt of notice thereof from the
Executive; (iii) the Executive’s being required to relocate to a principal
place of employment more than fifty (50) miles from his principal place of
employment with the Company as of the Effective Date or (iv) delivery by the
Company of a notice discontinuing the automatic extension provision of Section
2 hereof.

 

5.                                       Compensation
During Disability and Upon Termination. 
During a Disability Period (as herein defined) or upon the termination
of the Executive’s employment hereunder, the Executive shall be entitled to the
following benefits:

 

5.1.                              Disability.  During any period (the “Disability Period”)
that the Executive, due to Disability fails to perform satisfactorily and
continuously the duties assigned to him and the services to be performed by him
hereunder, the Company shall continue to pay to the Executive the Annual Base
Salary (as in effect at such time) in accordance with the provisions of Section
3.1 hereof, less any compensation payable to the Executive under the applicable
disability insurance plan(s) of the Company during such Disability Period.  Thereafter, if the Executive’s employment
hereunder is terminated pursuant to Section 4.1 hereof, the Company

 

4

 

shall have no
further obligations hereunder after the Termination Date other than the payment
of (a) the Annual Base Salary (as in effect during the year of such
termination) payable in accordance with the Company’s customary payroll
practices (less any compensation payable to the Executive under the applicable
disability insurance plan(s) of the Company), for the twelve (12) month period
immediately following the Termination Date and (b) the Executive’s pro rata portion of the Annual Bonus due
pursuant to Section 3.2 hereof for the calendar year in which such termination
occurs (based upon the number of days during such year that the Executive was
employed over 365 days prior to termination), payable on the same date as such
Annual Bonus would have been payable for such year pursuant to Section 3.2
hereof had the Employment Term not been so terminated.

 

5.2.                              Death.  If the Executive’s employment is terminated
pursuant to Section 4.2 hereof as a result of the Executive’s death, the
Company shall have no further obligations hereunder after the date of the
Executive’s death other than the payment to the Executive’s estate, legal
representative, heirs or other beneficiaries of (a) the Annual Base Salary (as
in effect during the calendar year of such death) payable in accordance with
the Company’s customary payroll practices, for the twelve (12) month period
immediately following the date of the Executive’s death, and (b) the Executive’s
pro rata portion of the Annual Bonus due pursuant to Section 3.2 hereof
for the calendar year in which such death occurred (based upon the number of
days during such year that the Executive was employed over 365 days prior to
death), payable on the same date as such Annual Bonus would have been payable
for such year pursuant to Section 3.2 hereof had the Employment Term not been
so terminated.

 

5.3.                              Cause.  If the Executive’s employment is terminated
by the Company for Cause pursuant to Section 4.3 hereof, the Company shall have
no further obligations hereunder after the Termination Date other than the
payment to the Executive of the Annual Base Salary accrued and unpaid through
the Termination Date.  The Company shall
not be obligated to make any bonus payments to the Executive pursuant to
Section 3.2 hereof for the calendar year in which such termination occurs or to
provide any of the benefits set forth in Section 3.3 of this Agreement after
the Termination Date, except as may be required by applicable law.

 

5.4.                              Voluntary
Termination by Company.  If the
Company voluntarily terminates the Executive’s employment hereunder pursuant to
Section 4.4 hereof, the Company shall have no further obligations hereunder
after the Termination Date other than the payment of (a) (i) one (1) year of
the Annual Base Salary (as in effect during the year of such termination)
payable in accordance with the Company’s customary payroll practices, and (ii)
at no greater out-of-pocket expense to the Company than incurred prior to
termination, the Company-sponsored medical and health benefits (or the
reimbursement of COBRA premiums) previously made available to the Executive,
but only to the extent permitted by such policies or plans, or as otherwise required
by law, and (b) the Annual Bonus due pursuant to Section 3.2 hereof for the
calendar year in which such termination occurs, payable on the same date as
such Annual Bonus would have been payable for such calendar year pursuant to
Section 3.2 hereof had the Employment Term not been so terminated.

 

5.5.                              Termination
by Executive.  If at any time during
the Employment Term, the Executive terminates his employment with the Company
and Parent for any reason

 

5

 

whatsoever other
than Good Reason pursuant to Section 4.6 hereof, the Company shall have no
further obligations hereunder after the Termination Date other than the payment
to the Executive of the Annual Base Salary accrued and unpaid through the
Termination Date.  The Company shall not
be obligated and shall be released from all obligations to make any bonus
payments to the Executive pursuant to Section 3.2 hereof, if any, for the
calendar year in which such termination occurs, or to provide any of the benefits
set forth in Section 3.3 of this Agreement after the Termination Date, except
as may be required by applicable law.

 

5.6.                              Termination
in Conjunction with a Change of Control. 
If (a) the Company terminates the employment of the Executive hereunder
in conjunction with any Change of Control, pursuant to Section 4.5 hereof; (b)
the Company or any successor entity thereto terminates the employment of the
Executive without Cause within six (6) months of any Change of Control; or (c)
the Executive terminates his employment for Good Reason within six (6) months
of any Change of Control, the Company, or any successor entity thereto, shall
have no further obligations hereunder after the Termination Date other than (i)
the payment of one (1) year of the Annual Base Salary (as in effect during the
year of such termination) payable in accordance with the Company’s customary
payroll practices; (ii) the payment of the Annual Bonus due pursuant to Section
3.2 hereof for the calendar year in which such termination occurs, payable on
the same date as such Annual Bonus would have been payable for such calendar
year pursuant to Section 3.2 hereof had the Employment Term not been so
terminated; provided, however, the Annual Bonus for the calendar
year in which such termination occurs, shall be pro rated, based on the number
of days the Executive was employed (less any Disability Period) over 365 days;
and (iii) at no greater out-of-pocket expense to the Company than incurred
prior to termination, the Company shall pay for twelve (12) months the premiums
for Company-sponsored medical and health benefits (or the reimbursement of
COBRA premiums) previously made available to the Executive, but only to the
extent permitted by such policies or plans, or as otherwise required by law; however,
if the Executive becomes eligible for coverage under any other medical and
health policy after termination of employment, or is, or becomes covered by any
other medical and health policy the Company’s obligation to pay the premiums
due by the Executive for Company-sponsored medical and health benefits shall
cease immediately.  Notwithstanding the
foregoing, in the event that the Executive, or any of his Affiliates (as
defined below), participates in any Change of Control transaction as an equity
participant and/or as a purchaser of securities or assets and, immediately
after the consummation of the Change of Control transaction remains, or within
six (6) months of such transaction, becomes actively involved in the operation
of the Company, Parent or any successor entity thereto as an officer, director
or employee, the provisions of this Section 5.6 shall terminate and be of no
force or effect.  An “Affiliate”
shall mean an individual, a corporation, an association, a joint venture, a
partnership, a limited liability company, an estate, a trust, an unincorporated
organization and any other entity or organization, governmental or otherwise
that, directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with the Executive.

 

6.                                       Confidentiality.  The Executive acknowledges that it is the
policy of the Company and Parent to maintain as secret and confidential all
Confidential Information (as defined herein). 
The parties hereto recognize that the services to be performed by the
Executive pursuant to this Agreement are special and unique, and that by reason
of his employment by the Company both

 

6

 

before and after
the Effective Date, the Executive will acquire, or may have acquired,
Confidential Information.  The Executive
recognizes that all such Confidential Information is and shall remain the sole
property of the Company and Parent, as applicable, free of any rights of the
Executive, and acknowledges that the Company and Parent have a vested interest
in assuring that all such Confidential Information remains secret and
confidential.  Therefore, in
consideration of the Executive’s employment with the Employer pursuant to this
Agreement, the Executive agrees that at all times from after the Effective
Date, he will not, directly or indirectly, disclose to any person,
firm, company or other entity (other than Parent or any of its Affiliates (for
the purposes of this Employment Agreement, the term “Affiliate(s)” means
Parent, its successor(s), any direct or indirect subsidiary of Parent or its
successor(s), or any division of a subsidiary)) any Confidential Information,
except as required in the performance of his duties hereunder, without the
prior written consent of the Company or Parent, as applicable, except to the
extent that (i) any such Confidential Information becomes generally available
to the public, other than as a result of a breach by the Executive of this
Section 6, or (ii) any such Confidential Information becomes available to the
Executive on a non-confidential basis from a source other than Parent or any of
its Affiliates or advisors; provided that such source is not known by
the Executive to be bound by a confidentiality agreement with, or other
obligation of secrecy to, the Parent, any of its Affiliates or another party.  In addition, it shall not be a breach of the
confidentiality obligations hereof if the Executive is required by law to
disclose any Confidential Information; provided that in such case, the
Executive shall (a) give the Company and/or Parent, as applicable, the earliest
notice possible that such disclosure is or may be required and (b) cooperate
with the Company and/or Parent, as applicable, at the Company’s and/or Parent’s
expense, as applicable, in protecting, to the maximum extent legally permitted,
the confidential or proprietary nature of the Confidential Information which
must be so disclosed.  The obligations of
the Executive under this Section 6 shall survive any termination of this
Agreement.  During the Employment Term,
the Executive shall exercise all due and diligent precautions to protect the
integrity of the business plans, customer lists, statistical data and
compilation, agreements, contracts, manuals or other documents of the Company
and/or Parent which embody the Confidential Information, and upon the
expiration or the termination of the Employment Term, the Executive agrees that
all Confidential Information in his possession, directly or indirectly, that is
in writing or other tangible form (together with all duplicates thereof) will
forthwith be returned to the Company and/or Parent, as applicable, and will not
be retained by the Executive or furnished to any person, either by sample,
facsimile, film, audio or video cassette, electronic data, verbal communication
or any other means of communication.  The
Executive agrees that the provisions of this Section 6 are reasonably necessary
to protect the proprietary rights of the Company and/or Parent in the
Confidential Information and their trade secrets, goodwill and reputation.

 

For purposes hereof, the term “Confidential
Information” means all information heretofore or hereafter developed or
used by Parent or any of its Affiliates relating to the Business (as defined
below), and the operations, employees, customers, suppliers and distributors of
Parent or any of its Affiliates, including, but not limited to, customer lists,
customer orders, purchase orders, financial data, pricing information and price
lists, business plans and market strategies and arrangements, all books,
records, manuals, advertising materials, catalogues, correspondence, mailing
lists, production data, sales materials and records, purchasing materials and
records, personnel records, quality control records and procedures

 

7

 

included in or relating
to the Business or any of the assets of Parent and/or its Affiliates, and all
trademarks, tradenames, copyrights and patents, and applications therefor, all
trade secrets, inventions, processes, procedures, research records, market
surveys and marketing know-how and other technical papers of Parent and/or any
of its Affiliates, except that notwithstanding anything to the contrary
contained herein, the term Confidential Information shall not include any such
information that is publicly known or that becomes publicly known (other than
as a result of any action on the part of, or a breach of the provisions of this
Section 6, by the Executive).

 

For purposes hereof, the term “Business” shall
mean the business of (a) distributing and selling industrial steel pipe,
including large OD pipe, heavy wall and X-grade pipe, DSAW, seamless,
continuous weld, ERW pipe and abrasive resistant pipe (mine pipe), and valves,
alloy pipe, flanges and fittings, welded fittings and flanges (high yield,
stainless, exotic carbon, chrome and low temp) per ANSI B16.9 and B16.5
(commodity lines and specials, i.e. anchor flanges and swivel ring flanges)
forged steel fittings, outlets, pipe nipples, swage nipples, hot induction
bends and Pikotek gaskets/insulation kits, stainless steel and other nickel
alloy and hastelloy pipe, valves, fittings and flanges, including all chrome
grades, (collectively, the “Products”); (b) providing added value
services to such pipe and steel Products, including, flame cutting, sawing,
welding, sandblasting, priming, top coat painting, epoxy applications and end
finishing, and conversion of pipe to other components or products; (c) entering
into joint venture, partnership or agency arrangements relating to the sale or
distribution of surplus stainless steel pipe, fittings and flanges, but
excluding value-added services if not sold as part of the Products; and (d) any
endeavor entered into by Parent or any Affiliates after the signing of this
agreement, but before termination of the employment of the Executive.

 

7.                                       Noncompetition;
Nonsolicitation.  (a) The Executive
agrees that, during the Employment Term and for the period during which the
Executive receives compensation pursuant to Section 5.4 hereof, (to the extent
applicable), whichever is greater (such period being referred to herein as the “Initial
Noncompete Period”) (A) the Executive will not own or control any business
that competes, directly or indirectly, with the Business or is otherwise
engaged in activities competitive with the Business, in each and every area
where the Company is engaged in the sale and/or distribution of the Products (a
“Competing Business”) on the date the Executive’s employment is
terminated hereunder, including, without limitation, the State of Texas and
each and every parish throughout the State of Louisiana specified on Schedule
B hereto, (B) the Executive will not, directly or indirectly, whether for
himself or on behalf of any other person (or affiliate), engage in, own,
manage, operate, provide financing to, control or participate in the ownership,
management or control of, or be connected as an officer, employee, partner,
director, or otherwise with, or have any financial interest (whether as a
stockholder, director, officer, partner, consultant, proprietor, agent or
otherwise) in, or aid or assist anyone else in the conduct of, any business,
that competes, directly or indirectly, with the Business or is otherwise
engaged in activities competitive with the Business, in each and every area
where the Company is engaged in the sale and/or distribution of the Products on
the date the Executive’s employment is terminated hereunder, including, without
limitation, the State of Texas and each and every parish throughout the State
of Louisiana specified on Schedule B hereto, or (C) the Executive will
not, either personally or by his agent or by letters, circulars or
advertisements, and whether for himself or on behalf of any other person,
company, firm or other entity, canvass or

 

8

 

solicit, or enter
into or effect (or cause or authorize to be solicited, entered into or
effected), directly or indirectly, for or on behalf of himself or any other
person, any business relating to the sale and/or distribution of any Products
from any person, company, firm or other entity, who is, or has at any time
within two (2) years prior to the date of such action been a customer or
supplier of the Parent or any of its Affiliates, subsidiaries or divisions.  It is agreed that for purposes of this
Section 7(a), a Competing Enterprise is only a business entity in which the
sale and/or distribution of the Products constitutes more than 5% of that
business and/or entity’s overall business revenues, and only such a Competing
Enterprise shall be considered to “in any significant manner compete with”
Parent or its Affiliates.  Notwithstanding
the foregoing, the Executive’s ownership of securities of a public company engaged
in competition with the Company not in excess of 5% of any class of such
securities shall not be considered a breach of the covenants set forth in this
Section 7(a) above.

 

(b)                                 The
Executive agrees that, at all times from after the Effective Date and for (i) a
period of twelve (12) months following the date of termination of the Executive’s
employment with Parent and the Company, or (ii) the period during which the
Executive receives compensation pursuant to Section 5.4 hereof (to the extent
applicable), whichever is greater, the Executive will not, either personally or
by his agent or by letters, circulars or advertisements, and whether for
himself or on behalf of any other person, company, firm or other entity, (A)
seek to persuade any employee of Parent or any of its Affiliates, subsidiaries
or divisions to discontinue his or her status or employment therewith or seek
to persuade any employee or former employee to become employed or to provide
consulting or contract services in a business or activities competitive with
the Business; or (B) solicit, employ or directly or indirectly cause to be
solicited or employed, or engage, directly or indirectly, the services of any
employee or former employee of Parent or any of its Affiliates.

 

(c)                                  Notwithstanding
anything to the contrary contained herein, the Initial Non-Compete Period
referred to in Sections 7(a) and (b) above may be extended for two (2)
successive periods of one (1) year each following the expiration of the Initial
Non-Compete Period and the restrictions set forth in Section 7(a) and (b) above
shall remain in full force and effect until the expiration of such additional
one-year period(s), at the Company’s option. 
Should the Company elect to extend the Initial Non-Compete Period (or
any subsequent one-year period) pursuant hereto, the Company shall provide the
Executive with written notice of such extension at least ninety (90) days prior
to the expiration of each of the Initial Non-Compete Period, the first and the
second one-year periods following such Initial Non-Compete Period, as the case
may be; provided that it is understood and agreed that the Company’s
right to extend for the second one-year period is dependent on the Company
having extended for the first one-year period as provided herein.  In the event the Company elects to extend the
Initial Non-Compete Period (or any subsequent one-year period) pursuant hereto,
the Company shall pay the Executive, in consideration of the agreements of the
Executive not to compete with the Parent and any of its respective Affiliates
until the expiration of such extended one-year period(s), the Annual Base
Salary (as in effect during the year of termination of the Executive’s
employment) in respect of each such additional one-year period, payable in accordance
with the Company’s customary payroll practices.

 

9

 

8.                                       Inventions.  Any and all inventions made, developed or
created by the Executive (whether at the request or suggestion of the Company
and/or Parent or otherwise, whether alone or in conjunction with others, and
whether during regular working hours or otherwise) during the period of his
employment with the Company and/or Parent, which may be directly or indirectly
useful in, or relate to, the Business or the business of Parent or any of its
Affiliates, shall be promptly and fully disclosed by the Executive to the Board
of Directors, and shall be the Company’s exclusive property as against the
Executive.  The Executive shall promptly
deliver to the Board of Directors all papers, drawings, models, data and other
material relating to any invention made, developed or created by him as
aforesaid.  The Executive hereby assigns
any and all such inventions to the Company and hereby agrees to execute and
deliver such agreements, certificates, assignments or other documents as may be
necessary to effect the assignment to the Company of any and all such
inventions as contemplated by this Section 8. 
The Executive shall, upon the Company’s and/or Parent’s request, as
applicable, and without any payment therefor, execute any documents necessary
or advisable in the opinion of the Company’s and/or Parent’s counsel, as
applicable, to direct issuance of patents or copyrights of the Company and/or
Parent, as applicable, with respect to such inventions as are to be in the
Company’s and/or Parent’s exclusive property, as applicable, as against the
Executive under this Section 8 or to vest in the Company and/or Parent, as
applicable, title to such inventions as against the Executive, the expense of
securing any such patent or copyright, to be borne by the Company and/or
Parent, as applicable.

 

9.                                       Breach.

 

9.1.                              Both
parties recognize that the services to be rendered under this Agreement by the
Executive are special, unique and extraordinary in character, and that in the
event of a breach by Executive of the material terms and conditions of the
obligations to be performed by him hereunder, the Company shall be entitled, if
it so elects, to institute and prosecute proceedings in any court of competent
jurisdiction, either in law or in equity, to obtain damages for any breach of
this Agreement, or to enforce the specific performance thereof by the Executive.  Without limiting the generality of the
foregoing, the parties acknowledge that a breach by the Executive of his
material obligations under Sections 6, 7 or 8 could cause the Company
irreparable harm for which no adequate remedy at law would be available in
respect thereof and that therefore upon proof of the same the Company would be
entitled to seek and obtain injunctive relief with respect thereto.

 

9.2.                              In
the event of a breach by the Company of the material terms and conditions of
the obligations to be performed by it hereunder, the Executive shall provide
the Company with written notice thereof, specifying the nature of the breach,
within fourteen (14) days of such breach and the Company shall have thirty (30)
days followings its receipt of such notice to cure the breach specified therein
to the reasonable satisfaction of Executive. 
To the extent the Company fails to cure such breach as provided herein,
the Executive shall then be entitled, if he so elects, to institute and
prosecute proceedings in any court of competent jurisdiction, either in law or
in equity, to obtain damages for such breach. 
To the extent the Company fails to cure such breach as provided herein,
the non-competition restrictions set forth in Section 7 shall terminate.

 

10

 

10.                                 Parent’s
Guaranty.  Parent hereby guarantees
all of Company’s obligations under this Agreement, including, but not limited
to, prompt and full payment of any and all amounts due the Executive under this
Agreement.

 

11.                                 Insurance.  The Executive acknowledges and agrees that
the Company may obtain a life insurance policy on the life of the Executive
with the Company named as the beneficiary. 
If the Company so elects, the Executive covenants and agrees to
cooperate fully with the Company’s efforts to obtain such insurance policy.

 

12.                                 Conflicting
Agreements.  The Executive hereby
represents and warrants to the Company that (a) neither the execution of this
Agreement by the Executive nor the performance by the Executive of any of his
obligations or duties hereunder will conflict with or violate or constitute a
breach of the terms of any employment or other agreement to which the Executive
is a party or by which the Executive is bound, and (b) the Executive is not
required to obtain the consent of any person, firm, corporation or other entity
in order to enter into this Agreement or to perform any of his obligations or
duties hereunder.

 

13.                                 Further
Assurances.  The Executive hereby
agrees to execute and deliver such agreements, certificates or other documents
as may be reasonably requested by the Company which may be necessary or are
required hereunder.

 

14.                                 Miscellaneous.

 

14.1.                        Successors;
Binding Agreement.  This Agreement
and all rights of the Executive hereunder shall inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors
and assigns; provided, that the duties of the Executive hereunder are personal
to the Executive and may not be delegated or assigned by him.

 

14.2.                        Notice.  All notices and other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly
given when delivered personally, by registered or certified mail, postage
prepaid, or by a nationally recognized overnight courier service as follows:

 

(a)                                  If
to the Executive:

 

at his
then current address

included in the employment records of the Company;

 

(b)                                 If
to the Company or Parent:

 

c/o
Edgen Louisiana Corporation 

18444 Highland Road

Baton Rouge, LA 70809

Attention:  President

 

11

 

with a
copy to:

 

Piper
Rudnick LLP

1251 Avenue of the Americas

New York, New York 10020-1104 

Attention: Leonard Gubar, Esq.

 

or to such other address as any party may have
furnished to the other parties in writing in accordance herewith.

 

14.3.                        Governing
Law.  This Agreement shall be
governed by and in accordance with the laws of the State of Louisiana without
regard to conflict of law rules thereof.

 

14.4.                        Waivers.  The waiver of any party hereto of any right
hereunder or of any failure to perform or breach by any other party hereto
shall not be deemed a waiver of any other right hereunder or of any other
failure or breach by any other party hereto, whether of the same or a similar
nature or otherwise.  No waiver shall be
deemed to have occurred unless set forth in writing executed by or on behalf of
the waiving party.  No such written
waiver shall be deemed a continuing waiver unless specifically stated therein,
and each such waiver shall operate only as to the specific term or condition
waived and shall not constitute a waiver of such term or condition for the
future or as to any act other than that specifically waived.

 

14.5.                        Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall otherwise remain in full
force and effect.  Moreover, if any one
or more of the provisions contained in this Agreement is held to be excessively
broad as to duration or scope, such provisions shall be construed by limiting
and reducing them so as to be enforceable to the maximum extent compatible with
applicable law.

 

14.6.                        Entire
Agreement.  This Agreement sets forth
the entire agreement and understanding of the parties in respect of the subject
matter contained herein, and supersedes all prior agreements, promises,
covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, employee or representative of either party in
respect of said subject matter.

 

14.7.                        Headings
Descriptive.  The headings of the
several paragraphs of this Agreement are inserted for convenience only and
shall not in any way affect the meaning or construction of any provision of
this Agreement.

 

14.8.                        Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

 

12

 

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

 

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert L. Gilleland

  	
   

  
	
   

  	
  Robert L. Gilleland

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN ALLOY PRODUCTS GROUP, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
  Name:  David L. Laxton, III

  
	
   

  	
  Title:  Secretary/Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  With respect to Section 10 only

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dan J. O’Leary

  	
   

  
	
   

  	
  Name:  Dan J.
  O’Leary

  
	
   

  	
  Title:  President/CEO

  

 

13

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