Document:

Exhibit 10.23

IPSCO Inc.

2005 Form 10-K

 

SHARE OPTION AGREEMENT

 

THIS AGREEMENT made the 24th day of April, 2002.

 

BETWEEN:

 

IPSCO
INC., a body corporate with an office at the
City of Regina, in the Province of Saskatchewan,

 

(hereinafter called the “Company”),

 

OF THE FIRST PART,

 

- and -

 

RICHARD
G. SIM, of the City of London, in the United
Kingdom

 

(hereinafter called the “Participant”),

 

OF THE SECOND PART.

 

WHEREAS the Company has established an Incentive Share Option Plan (which,
as amended from time to time by the Board of Directors of the Company, shall
hereinafter be called the “Plan”) whereby certain officers, employees and
directors of the Company and its subsidiaries, designated from time to time by
the Board of Directors, are provided with the opportunity through options to
purchase common shares in the capital of the Company;

 

AND WHEREAS the Participant, as a director of the Company, has been so
designated and now wishes to acquire an option to purchase shares subject to
and in accordance with the provisions of this Agreement and of the Plan;

 

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

 

1.01                        Option

 

Subject to and
conditional upon compliance with the applicable requirements of each stock
exchange on which the shares of the Company are listed and of any governmental
authority or regulatory body to which the Company is subject, the Company
hereby grants to the Participant the right to purchase (hereinafter called the “Option”)
an aggregate of 1,500 common shares (hereinafter called the “Shares”) of the
Company on the terms set out in this Agreement.

 

 

1.02                        Exercise Price

 

The exercise
price for each of the Shares shall, subject to s. 1.09, be the sum of Twenty
Six Dollars and Forty Cents (Canadian) (Cdn.$26.40), being 100% of the last
sale price of a board lot of the common shares of the Company on The Toronto
Stock Exchange on the last business day on which there was a trade of a board
lot prior to the date of this Agreement.

 

1.03                        Term of Option

 

Subject to the
expiry of the Option on April 24, 2012 and the terms hereinafter
contained, the Participant (or, as the case may be, the Participant’s legal
representative) shall be entitled to exercise the Option:

 

(a)                                  to the extent of 500 common shares on and after April 24, 2003;

 

(b)                                 to the extent of an additional 500 common shares on and after April 24,
2004;

 

(c)                                  to the extent of the remaining 500 common shares on and after April 24,
2005;

 

(d)                                 to the extent of any or all of the Shares in the event of and on the
date upon which any person or group of persons acting jointly or in concert,
and any persons associated or affiliated, within the meaning of the Canada
Business Corporations Act, with such person or group of persons (collectively,
the “Acquirors”), in aggregate beneficially own shares of the Company, or
securities convertible into, exchangeable for or representing the right to
acquire shares of the Company (collectively, the “Convertible Securities”),
that would entitle the holders thereof to cast more than 51% of the votes
attaching to all shares in the capital of the Company that may be cast to elect
directors of the Company , assuming only the conversion, exchange or exercise
of Convertible Securities beneficially owned by the Acquirors; and

 

(e)                                  to the extent of any and all of the Shares in the event of the death
of the Participant.

 

1.04                        Non-Assignability of Option

 

The Option
granted hereunder shall not be transferable or assignable (whether absolutely
or by way of mortgage, pledge or other charge) by the Participant other than by
will or other testamentary instrument, the laws of succession or other laws of
general application and may be exercisable during the lifetime of the
Participant only by the Participant.

 

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1.05                        Right to Postpone Exercise

 

The
Participant shall, subject to the provisions of s. 1.10, l.11 hereof, be
entitled to exercise the Option to purchase any or all of the Shares to the
extent and as provided for in s. 1.03 on which the Participant is first
entitled to exercise the Option and prior to the expiration or other
termination of this Agreement or of the Option granted hereunder.

 

1.06                        Exercise and Payment

 

Subject to paragraph
1.03 and the approval of the amendments to the Plan to permit the issuance of
options to the directors of the Company by an ordinary resolution of the
shareholders at the next annual meeting of the Company, the Option may be
exercised by the Participant or the legal representative of the Participant
giving notice to the Company specifying the number of Shares in respect of
which the Option is being exercised, accompanied by payment (by certified
cheque, bank draft or other instrument acceptable to the Company, to be payable
to the Company) of the entire exercise price (stipulated in s.1.02 hereof) for
the number of Shares specified in the notice. Upon any such exercise of the
Option by the Participant the Company shall cause the transfer agent of the
common shares of the Company to promptly deliver to the Participant or the
legal representative of the Participant, as the case may be, a share
certificate in the name of the Participant or the legal representative of the
Participant, as the case may be, representing the number of Shares specified in
the notice.

 

1.07                        Rights of Participant

 

The
Participant shall have no rights whatsoever as a shareholder in respect of any
of the Shares (including, without limitation, any right to receive dividends or
other distributions therefrom, voting rights, warrants or rights under any
rights offering) other than Shares in respect of which the Participant has
exercised the Option and which have been issued by the Company.

 

1.08                        Third Party Offer

 

If at any time
when the Option remains unexercised with respect to any of the Shares, a
general offer to purchase all of the issued shares of the Company is made by a
third party, the Company shall use its best efforts to bring such offer to the
attention of the Participant as soon as practicable and the Company may, at its
option, require the acceleration of the time for the exercise of the Option and
of the time for the fulfilment of any conditions or restrictions on such
exercise.

 

1.09                        Alterations in Shares

 

In the event
of a share dividend, share split, issuance of shares or instruments convertible
into shares (other than pursuant to the Plan) for less than market value, share
consolidation, share reclassification, exchange of shares, recapitalization,
amalgamation, merger, consolidation, corporate arrangement, reorganization,
liquidation or the like of or by the Company the Board of Directors may make
such adjustment, if

 

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any, of
the number of Shares, or the exercise price, or both, as it shall deem
appropriate to give proper effect to such event, including to prevent, to the
extent possible, substantial dilution or enlargement of rights granted to the
Participant.  If because of a proposed
merger, amalgamation or other corporate arrangement or reorganization, the
exchange or replacement of shares in the Company for those in another company
is imminent, the Board of Directors may, in a fair and equitable manner,
determine the manner in which the Option granted to the Participant shall be
treated including, for example, requiring the acceleration of the time for the
exercise of such Option by the Participant and of the time for the fulfilment
of any conditions or restrictions on such exercise.  All determinations of the Board of Directors
under this s. 1.09 shall be full and final.

 

1.10                        Death of Participant

 

In the event
of the death of the Participant the legal representative of such Participant
shall have the right for a period of one (1) year (or until the normal
expiry date of the Option if earlier) from the date of the death of the
deceased Participant to exercise such deceased Participant’s Option with
respect to such of the Shares of the deceased Participant that were, in
accordance with s. 1.03 hereof, exercisable on the date of death.  Upon the expiration of such one (1) year
period, the Option and all unexercised option rights thereunder of the deceased
Participant shall immediately become terminated and shall lapse notwithstanding
the original term of the Option.

 

1.11                        Ceasing to be a Director

 

If the
Participant ceases to be a Director (and, if the Participant is a director of
any of the subsidiaries of the Company, the Participant also ceases to be a
director of any such subsidiary) of the Company for any reason other than those
specified in s. 1.10 hereof, the Participant shall have the right for a period
of one (1) year (or until the normal expiry date of the Option if earlier)
from the date of ceasing to be a director to exercise the Option with respect
to such of the Shares that were, in accordance with s. 1.03 hereof, exercisable
on the date of ceasing to be a director of the Company and its
subsidiaries.  Upon the expiration of
such one (1) year period all unexercised option rights of the Participant
shall immediately become terminated and shall lapse notwithstanding the
original term of the Option. This s. 1.11 shall not apply to any director of
the Company or any of its subsidiaries that is an officer or employee after the
time such person ceases to be a director of the Company and of its
subsidiaries.

 

1.12                        No Further Rights

 

Nothing
contained in this Agreement shall give the Participant or any other person, any
interest or title in or to the Shares or any rights as a shareholder of the
Company or any other legal or equitable right against the Company whatsoever
other than as set forth in this Agreement and pursuant to the exercise of the
Option, nor shall it confer upon the Participant any right to continue as a
director of the Company or of its subsidiaries.

 

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1.13                        Leave of Absence

 

If the
Participant is an employee of the Company and is granted a temporary leave of
absence by the Company, such leave of absence shall be deemed a continuation of
the employment of the Participant but only if and so long as the Company
consents to such leave of absence.

 

1.01                        Notice

 

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

 

(a)                                  to the Company:

 

IPSCO Inc.

P.O. Box 1670

Regina, Saskatchewan 

S4P 3C7

 

Attention: 
President and Chief Executive Officer

 

to the Participant

 

Richard G. Sim

 

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

 

2.01                        Plan to Apply

 

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

 

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3.01                        Dispute

 

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

 

4.01                        Further Assurances

 

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

 

5.01                        Inurement

 

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

 

6.01                        Governing Law

 

This Agreement
shall be governed by the laws of the Province of Saskatchewan.

 

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

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ George H. Valentine

  	
   

  
	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Richard
  G. Sim

  	
   

  
	
  Witness

  	
  Name:

  	
  Richard G. Sim

  
						

 

6Exhibit 10.23a

IPSCO Inc.

2005 Form 10-K

 

2002 Share
Option Agreements for Directors

 

In accordance with the Instructions of Item 601 of Regulation S-K, the
registrant has omitted filing the 2002 Share Option Agreements by and between
IPSCO Inc. and the following Directors as exhibits to this Form 10-K
because, except as noted, they are identical, to the form of Share Option
Agreement filed as Exhibit 10.23 with this Form 10-K.

 

1.  Burton Joyce

2.  Jack Michaels

3.  Roger Tetrault

4.  Gordon Theissen

5.  Allan Olson

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