Document:

EX-10.18.1

Exhibit 10.18.1

MCJUNKIN RED MAN HOLDING CORPORATION

RESTRICTED STOCK AWARD AGREEMENT

     THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”), made as of [
                    , 200___] (the “Grant Date”), between McJunkin Red Man Holding Corporation,
a Delaware corporation (the “Company”), PVF Holdings LLC, a Delaware limited
liability company (solely for purposes of Section 20 hereof) (“PVF LLC”), and
[                    ] (the “Grantee”).

     WHEREAS, the Company has adopted the McJ Holding Corporation 2007 Restricted Stock Plan
(the “Plan”), which Plan is incorporated herein by reference and made a part of this
Agreement. Capitalized terms not otherwise defined herein shall have the meanings given
thereto in the Plan; and

     WHEREAS, the Committee has determined to grant to the Grantee such award of restricted
common stock of the Company as provided herein (the “Restricted Stock”).

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Grant of Restricted Stock.

          The Company hereby grants to the Grantee an award of [                    ] shares of Restricted
Stock (the “Award”). The shares of Restricted Stock granted pursuant to the Award
shall be issued in the form of book-entry shares in the name of the Grantee as soon as
reasonably practicable after the Grant Date and shall be subject to the execution and return
of this Agreement by the Grantee (or the Grantee’s estate, if applicable) to the Company as
provided in Section 8 hereof.

     2. Restrictions on Transfer.

          The shares of Restricted Stock issued under this Agreement may not be sold, transferred,
assigned or otherwise disposed of, may not be pledged or otherwise hypothecated, and shall be
subject to the terms of the Stockholders Agreement.

     3. Lapse of Restrictions Generally.

          Except as provided in Sections 4 and 5 hereof, 25% of the number of shares of Restricted
Stock issued hereunder shall vest, and the restrictions with respect to such Restricted Stock
shall lapse, on each of the second (2nd), third (3rd), fourth
(4th) and fifth (5th) anniversaries of the date of grant, subject to
the Grantee’s continued employment.

     4. Accelerated Vesting.

          In the event of a Transaction, or upon the termination of the Grantee’s employment due
to the Grantee’s death or Disability, at any time on or after the Grant

 

 

Date, all shares of
Restricted Stock which have not become vested in accordance with Section 3 hereof shall vest,
and the restrictions and conditions applicable to such Restricted Stock shall be deemed to
have lapsed immediately prior to the occurrence such event.

     5. Forfeiture of Restricted Stock.

          Any and all shares of Restricted Stock (whether or not vested) shall be forfeited and
shall revert to the Company upon the termination by the Company or any of its subsidiaries of
the Grantee’s employment for Cause. Any and all shares of restricted stock which have not
vested pursuant to Sections 3 or 4 hereof shall be forfeited and shall revert to the Company
upon the termination of the Grantee’s employment with the Company for any reason other than
by the Company or any of its subsidiaries for Cause.

     6. Delivery of Restricted Stock.

          Evidence of book-entry shares with respect to shares of Restricted Stock in respect of
which the restrictions have lapsed pursuant to Section 3 or 4 hereof shall be delivered to
the Grantee as soon as practicable following the date on which the restrictions on such
Restricted Stock have lapsed, free of all restrictions hereunder. Any certificates for
shares of Restricted Stock shall be held by the Company on behalf of the Grantee until such
time as the shares represented by such certificates are transferred as permitted by the
Stockholders Agreement.

     7. Stockholders Agreement.

          In consideration of the Award, the Grantee agrees that the Grantee shall become a party
to the Stockholders Agreement.

     8. Execution of Agreements.

          The shares of Restricted Stock granted to the Grantee pursuant to the Award shall be
subject to the Grantee’s execution and return of (i) this Agreement and (ii) the Stockholders
Agreement.

     9. No Right to Continued Employment.

          Nothing in this Agreement shall interfere with or limit in any way the right of the
Company or its subsidiaries to terminate the Grantee’s employment, nor confer upon the
Grantee any right to continuance of employment by the Company or any of its subsidiaries or
continuance of service as a Board member.

     10. Withholding of Taxes.

          Prior to the delivery to the Grantee (or the Grantee’s estate, if applicable) of evidence of
book-entry shares with respect to shares of Restricted Stock in respect of which all

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restrictions
have lapsed, the Grantee (or the Grantee’s estate) shall be required to pay to the Company or any
Affiliate, and the Company shall have the right and is hereby authorized to withhold, any
applicable withholding taxes in respect of such Restricted Stock, or any payment or transfer under,
or with respect to, such Restricted Stock, and to take such other action as may be necessary in the
opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. The
Grantee shall be solely responsible for the payment of all taxes relating to the payment or
provision of any amounts or benefits hereunder.

     11. Modification of Agreement.

          This Agreement may be modified, amended, suspended or terminated, and any terms or
conditions may be waived, but only by a written instrument executed by the parties hereto.

     12. Severability.

          Should any provision of this Agreement be held by a court of competent jurisdiction to
be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall
not be affected by such holding and shall continue in full force in accordance with their
terms.

     13. Governing Law.

          The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of New York, without giving effect to the conflicts of laws
principles thereof.

     14. Successors in Interest.

          This Agreement shall inure to the benefit of and be binding upon any successor to the
Company. This Agreement shall inure to the benefit of the Grantee’s legal representatives.
All obligations imposed upon the Grantee and all rights granted to the Company under this
Agreement shall be binding upon the Grantee’s heirs, executors, administrators and
successors.

     15. No Liability.

          No member of the Board shall be liable for any action or determination made in good
faith with respect to this Award or this Agreement.

     16. Resolution of Disputes.

          Any dispute or disagreement which may 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. Any determination made hereunder shall be final, binding and

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conclusive on the Grantee, the Grantee’s heirs, executors, administrators and successors, and
the Company and its subsidiaries for all purposes.

     17. Entire Agreement.

          This Agreement and the terms and conditions of the Stockholders Agreement constitute the
entire understanding between the Grantee and the Company and its subsidiaries with respect to
the Award, and supersede all other agreements, whether written or oral, with respect to the
Award.

     18. Headings.

          The headings of this Agreement are inserted for convenience only and do not constitute a
part of this Agreement.

     19. Accredited Investor Status Representation of Grantee.

          Please check the box next to any of the following statements that apply:

	 	 	 
	o

	 	Your individual net worth, or joint net worth with your spouse, as
of the date hereof, exceeds $1,000,000;
	 
	 	 
	o

	 	You had individual income in excess of $200,000 in each of the two
most recent years, or joint income with your spouse in excess of
$300,000 in each of those years, and have a reasonable expectation
of reaching the same income level in the current year; or
	 
	 	 
	o

	 	None of the statements above apply.

     20. Adoption of Stockholders Agreement.

          The parties hereto agree that, upon the grant of the Restricted Stock hereunder, the
Grantee shall be made a party to the Management Stockholders Agreement among PVF LLC
(formerly known as McJ Holding LLC), the Company, and the other parties thereto (the
“Stockholders Agreement”), as an “Executive” (as defined in the Stockholders
Agreement) with the rights and obligations of holders of “Stock” (as defined in the
Stockholders Agreement) and the Grantee hereby agrees to become a party to the Stockholders
Agreement and to be bound by, and subject to, all of the representations, covenants, terms
and conditions of the Stockholders Agreement that are applicable to an Executive with such
rights and obligations. Execution and delivery of this Agreement by the Grantee shall also
constitute execution and delivery by the Grantee of the Stockholders Agreement, without
further action of any party. A copy of the Stockholders Agreement is attached hereto as
Exhibit A. In addition to the representations and warranties in the
Stockholders Agreement that Grantee makes as an Executive, the Grantee represents and
warrants to the Company that (a) the Grantee has carefully reviewed the Stockholders
Agreement and has also reviewed all other documents the Grantee deems necessary or

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desirable
in order for the Grantee to become a party to the Stockholders Agreement (by executing this
Agreement); (b) the Grantee has been granted the opportunity to ask questions of, and receive
answers from, representatives of the Company concerning the Stockholders Agreement and the
terms and conditions thereof that the Grantee deems necessary; and (c) this Agreement (and by
executing this Agreement, the Stockholders Agreement) has been duly executed and delivered by
Grantee and constitutes a valid and binding agreement of Grantee enforceable against the
Grantee in accordance with its terms and the terms of the Stockholders Agreement.

     21. Counterparts.

          This Agreement may be executed simultaneously in two or more counterparts, each of which
shall constitute an original, but all of which taken together shall constitute one and the
same agreement.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, effective as of the
Grant Date.

	 	 	 	 	 
	 	MCJUNKIN RED MAN HOLDING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PVF HOLDINGS LLC (for purposes of Section 20 only)

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GRANTEE

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

Stockholders Agreement

-7-EX-10.19

Exhibit 10.19

MCJUNKIN RED MAN HOLDING CORPORATION

2007 STOCK OPTION PLAN

(CANADA)

1. Purpose of the Plan

          The purpose of the Plan is to aid the Company and its Affiliates in recruiting and retaining
key employees, directors and consultants, resident in Canada, of outstanding ability and to
motivate such key employees, directors and consultants to exert their best efforts on behalf of the
Company and its Affiliates by providing incentives through the granting of Options. The Company
expects that it will benefit from the added interest which such key employees, directors or
consultants will have in the welfare of the Company as a result of their proprietary interest in
the Company’s success. This Plan is a sub-plan of the U.S. Option Plan.

2. Definitions

          The following capitalized terms used in the Plan or in an Option agreement have the respective
meanings set forth in this Section:

	 	(a)	 	Affiliate: With respect to any Person, any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person.
	 
	 	(b)	 	Board: The Board of Directors of the Company.
	 
	 	(c)	 	Cause: With respect to a Participant’s termination of
Employment, (a) if the Participant is at the time of termination a party to an
employment or retention agreement that defines such term, the meaning given
therein, and (b) in all other cases, the Participant’s (i) continuing failure,
for more than 10 days after the Company’s written notice to the Participant
thereof, to perform such duties as are reasonably requested by the Company;
(ii) failure to observe material policies generally applicable to officers or
employees of the Company unless such failure is capable of being cured and is
cured within 10 days of the Participant receiving written notice of such
failure; (iii) failure to cooperate with any internal investigation of the
Company; (iv) commission of any act of fraud, theft or financial dishonesty
with respect to the Company or indictment or conviction of any felony; (v)
chronic absenteeism; or (vi) abuse of alcohol or another controlled substance.
For the purpose of the definition of “Cause,” a reference to “Company” shall
mean the Company or its applicable Affiliate that is the employer of the
applicable Participant.
	 
	 	(d)	 	Code: The Internal Revenue Code of 1986, as amended,
or any successor thereto.

 

 

	 	(e)	 	Committee: The Board or such committee of the Board as
may be designated from time to time to administer the Plan.
	 
	 	(f)	 	Company: McJunkin Red Man Holding Corporation
(formerly known as McJ Holding Corporation), a Delaware corporation, and any
successor thereto by merger, consolidation or otherwise.
	 
	 	(g)	 	Company Group: Collectively, the Company, its
subsidiaries and its or their respective successors and assigns.
	 
	 	(h)	 	Disability: (a) if the Participant is at the time of
termination a party to an employment or retention agreement that defines such
term, the meaning given therein, and (b) in all other cases, the Participant is
unable to perform his duties or obligations to the Company by reason of
physical or mental incapacity for a period of one hundred twenty (120)
consecutive calendar days or a total period of two hundred ten (210) calendar
days in any three hundred sixty (360) calendar day period.
	 
	 	(i)	 	Effective Date: December 21, 2007.
	 
	 	(j)	 	Employment: The term “Employment” as used herein shall
be deemed to refer to (i) a Participant’s employment if the Participant is an
employee of the Company Group, (ii) a Participant’s services as a consultant,
if the Participant is a consultant to the Company Group and (iii) a
Participant’s services as a non-employee director, if the Participant is a
non-employee member of the Board.
	 
	 	(k)	 	Fair Market Value: On a given date, (i) if there
should be a public market for the Shares on such date, the arithmetic mean of
the high and low prices of the Shares as reported on such date on the composite
tape of the principal national securities exchange on which such Shares are
listed or admitted to trading, or, if the Shares are not listed or admitted on
any national securities exchange, the arithmetic mean of the per-Share closing
bid price and per-Share closing asked price on such date as quoted on the
National Association of Securities Dealers Automated Quotation System (or such
market in which such prices are regularly quoted) (the “Nasdaq”), or, if no
sale of Shares shall have been reported on the composite tape of any national
securities exchange or quoted on the Nasdaq on such date, the arithmetic mean
of the per-Share closing bid price and per-Share closing asked price on the
immediately preceding date on which sales of the Shares have been so reported
or quoted, and (ii) if there is not a public market for the Shares on such
date, the value established by the Committee in good faith, which in the
context of a Transaction shall be the price paid per Share.
	 
	 	(l)	 	McJunkin Red Man: McJunkin Red Man Corporation, a West
Virginia corporation and wholly owned subsidiary of the Company.

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	 	(m)	 	Option: A stock option granted pursuant to Section 6
of the Plan.
	 
	 	(n)	 	Option Price: The purchase price per Share of an
Option, as determined pursuant to Section 6(a) of the Plan.
	 
	 	(o)	 	Participant: An employee, director or consultant who
is selected by the Committee to participate in the Plan.
	 
	 	(p)	 	Person: Any individual, corporation, limited liability
company, limited or general partnership, joint venture, association,
joint-stock company, trust, unincorporated organization or government, or any
agency or political subdivisions thereof.
	 
	 	(q)	 	Plan: This McJunkin Red Man Holding Corporation 2007
Stock Option Plan (Canada).
	 
	 	(r)	 	PVF Holdings LLC: PVF Holdings LLC, a Delaware limited
liability company.
	 
	 	(s)	 	PVF Holdings LLC Agreement: The amended and restated
limited liability company agreement of PVF Holdings LLC, amended as of December
18, 2007, as further amended or restated from time to time.
	 
	 	(t)	 	Shares: Shares of common stock of the Company and any
other securities into which such shares of common stock are changed or for
which such shares of common stock are exchanged.
	 
	 	(u)	 	Stockholders Agreement: The Management Stockholders
Agreement dated as of March 27, 2007 (as amended and restated from time to
time) by and among the Company, PVF Holding LLC and such other Persons who are
or become parties thereto.
	 
	 	(v)	 	Transaction: (i) Any event which results in the GSCP
Members (as defined in the PVF Holdings LLC Agreement) and its or their
Affiliates ceasing to directly or indirectly beneficially own, in the
aggregate, at least 35% of the equity interests of McJunkin Red Man that they
beneficially owned directly or indirectly as of the Effective Time (as defined
in the PVF Holdings LLC Agreement); or (ii) in a single transaction or a series
of related transactions, the occurrence of the following event: a majority of
the outstanding voting power of PVF Holdings LLC, the Company or McJunkin Red
Man, or substantially all of the assets of McJunkin Red Man, shall have been
acquired or otherwise become beneficially owned, directly or indirectly, by any
Person (other than any Member (as defined in PVF Holdings LLC Agreement) or any
of its or their Affiliates, or the PVF Holdings LLC or any of its Affiliates)
or any two or more Persons (other than any Member or any of its or their
Affiliates, or PVF Holdings LLC or any of its Affiliates) acting as a
partnership, limited partnership, syndicate or other group, entity or
association acting in concert for the

3

 

	 	 	 	purpose of voting, acquiring, holding or disposing of the voting power of
PVF Holdings LLC, the Company, or McJunkin Red Man; it being understood
that, for this purpose, the acquisition or beneficial ownership of voting
securities by the public shall not be an acquisition or constitute
beneficial ownership by any Person or Persons acting in concert. For
purposes of this definition, neither PVF Holdings LLC nor any Person
controlled by PVF Holdings LLC shall deemed to be an Affiliate of any
Member.
	 
	 	(w)	 	U.S. Option Plan: The McJ Holding Corporation 2007
Stock Option Plan, effective as of March 27, 2007, of which this Plan is a
sub-plan.

3. Shares Subject to the Plan

          The total number of Shares which may be issued under the U.S. Option Plan and this Plan is
4,715.4509, subject to adjustment pursuant to Section 7 hereof. The Shares may consist, in whole
or in part, of unissued Shares or treasury Shares. The issuance of Shares upon the exercise of an
Option or in consideration of the cancellation or termination of an Option shall reduce the total
number of Shares available under the Plan, as applicable. Shares which are subject to Options
which terminate or lapse without the payment of consideration may again be the subject of Options
granted under the Plan.

4. Administration

          The Plan shall be administered by the Committee. Subject to the express limitations of the
Plan, the Committee shall have authority in its discretion to determine the employees, consultants
or directors of the Company and its Affiliates to whom, and the time or times at which, Options may
be granted, the number of Shares subject to each Option, the Option Price of an Option, the time or
times at which an Option will become vested and any other conditions of an Option. Options may, in
the discretion of the Committee, be granted under the Plan in assumption of, or in substitution
for, outstanding awards previously granted by the Company or its Affiliates or by a company
acquired by the Company or with which the Company combines. The number of Shares underlying such
substitute awards shall be counted against the aggregate number of Shares available for Options
under the Plan. The Committee is authorized to interpret the Plan, to establish, amend and rescind
any rules and regulations relating to the Plan, and to make any other determinations that it deems
necessary or desirable for the administration of the Plan. The Committee may amend the terms of
any Option agreement, provided that no such amendment shall be made without the consent of a
Participant, if such action would diminish any of the rights of such Participant under such Option
agreement. The Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan in the manner and to the extent the Committee deems necessary or
desirable. Any decision of the Committee in the interpretation and administration of the Plan,
except as otherwise provided herein, shall lie within its sole and absolute discretion and shall be
final, conclusive and binding on all parties concerned (including, without limitation, Participants
and their beneficiaries or successors). The Committee shall have the full power and authority to
establish the terms and conditions of any Option consistent with the provisions of the Plan and to
waive any such terms and conditions at any time (including, without limitation, accelerating or
waiving

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any vesting conditions). The Committee shall require Participants to make arrangements which
are satisfactory to it to pay any amounts it may determine are required to be withheld for federal,
state, local or other taxes in connection with an Option.

5. Limitations

          No Option may be granted under the Plan after March 27, 2017, but Options theretofore granted
may extend beyond that date.

6. Terms and Conditions of Options

          Options granted under the Plan shall be non-qualified stock options and shall be subject to
the foregoing and the following terms and conditions and to such other terms and conditions, not
inconsistent therewith, as the Committee shall determine and set forth in the applicable Option
agreement:

	 	(a)	 	Option Price. The Option Price shall be determined by
the Committee, provided that the Option Price may not be less than the Fair
Market Value of a Share on the date the Option is granted.
	 
	 	(b)	 	Exercisability. Options granted under the Plan shall
be exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable
more than ten years after the date it is granted.
	 
	 	(c)	 	Exercise of Options. Except as otherwise provided in
the Plan or in an Option agreement, an Option may be exercised for all, or from
time to time any part, of the Shares for which it is then exercisable. For
purposes of this Section 6 of the Plan, the exercise date of an Option shall be
the later of the date a notice of exercise is received by the Company and, if
applicable, the date payment is received by the Company pursuant to the
following sentence. The Option Price for the Shares as to which an Option is
exercised and any applicable withholding taxes shall be paid to the Company in
full at the time of exercise at the election of the Participant, in cash or by
check or wire transfer, or by such other means as are permitted by the
Committee. No Participant shall have any rights to dividends or other rights
of a stockholder with respect to Shares subject to an Option until the
Participant has given written notice of exercise of the Option, has paid in
full for such Shares, satisfied any applicable withholding requirements and, if
applicable, has satisfied any other conditions imposed by the Committee or
pursuant to the Plan or the applicable Option agreement.
	 
	 	(d)	 	Unless the Committee determines otherwise, exercise of an
Option shall be conditioned upon the execution by the Participant of the
Stockholders Agreement, if such agreement remains in effect at the time of such
exercise.

5

 

7. Adjustments Upon Certain Events

          Notwithstanding any other provisions in the Plan to the contrary, the following provisions
shall apply to all Options granted under the Plan:

	 	(a)	 	Generally. In the event of any extraordinary cash or
Share dividend, or Share split, reverse split, reorganization,
reclassification, recapitalization, repurchase, issuance of warrants, rights or
debentures, merger, consolidation, spin-off, split-up, combination or exchange
of Shares or other corporate exchange, or any distribution to shareholders of
Shares or any transaction similar to the foregoing, the Committee, without
liability to any person, shall take such equitable actions as are appropriate
in its reasonable judgment to preserve the economic rights of the Participant,
whether by adjusting the terms of the Option or such other means as the
Committee shall determine.
	 
	 	(b)	 	Transaction. The Committee may provide in the
applicable Option agreement or otherwise that, in the event of a Transaction,
(i) any outstanding Options then held by Participants which are unexercisable
or otherwise unvested shall automatically be deemed exercisable or otherwise
vested upon the consummation of such Transaction, and (ii) the Committee may
either (A) cancel all Options and make payment in connection with such
cancellation equal to the excess, if any, of the Fair Market Value of the
Shares subject to such Options over the aggregate Option Price of such Options
or (B) provide for the issuance of substitute options or other awards that will
preserve, as nearly as practicable, the economic terms of Options previously
granted hereunder, in each case as determined by the Committee in good faith.

8. No Right to Employment or Options

          The granting of an Option under the Plan shall impose no obligation on the Company or any
Affiliate of the Company to continue the Employment of a Participant and shall not lessen or affect
the Company’s or such Affiliate’s right to terminate the Employment of such Participant. No
Participant or other Person shall have any claim to be granted any Option, and there is no
obligation for uniformity of treatment of Participants, or holders or beneficiaries of Options.
The terms and conditions of Options and the Committee’s determinations and interpretations with
respect thereto need not be the same with respect to each Participant (whether or not such
Participants are similarly situated).

9. Successors and Assigns

          Subject to applicable law, the rights and obligations under the Plan shall be binding on and
inure to all predecessors, successors and assigns of the Company and any Participant, including,
without limitation, the estate of such Participant and the executor, administrator or trustee of
such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s
creditors.

6

 

10. Nontransferability of Options

          Unless otherwise determined by the Committee and subject to applicable law, an Option shall
not be transferable or assignable by the Participant otherwise than by will or by the laws of
descent and distribution. Subject to applicable law, an Option exercisable after the death of a
Participant may be exercised by the legatees, personal representatives or distributees of the
Participant.

11. Amendments or Termination

          The Board may amend, alter or discontinue the Plan, but no amendment, alteration or
discontinuation shall be made without the consent of a Participant, if such action would diminish
any of the rights of such Participant under any Option theretofore granted to such Participant
under the Plan; provided, however, that the Committee may amend the Plan in such manner as it deems
necessary to permit the granting of Options meeting the requirements of the Code or other
applicable laws.

12. Compliance with Law

          No Option shall be granted under the Plan, and no Shares shall be issued and delivered upon
exercise of an Option, unless and until the Company and/or the Participant shall have complied with
all applicable federal or state registration, listing and/or qualification requirements and all
other applicable requirements of law or of any regulatory agencies having jurisdiction.

          The Committee in its discretion may, as a condition to the exercise of any Option, require
each Participant (a) to represent in writing that the Shares received upon exercise of an Option
are being acquired for investment and not with a view to distribution and (b) to make such other
representations and warranties as are deemed reasonably appropriate by the Committee. Stock
certificates representing Shares acquired upon the exercise of any Option that have not been
registered under the United States Securities Act of 1933, as amended, shall, if required by the
Committee, bear the legends as may be required by the Stockholders Agreement or by the Option
agreement evidencing a particular Option. Without in any way limiting the provisions set forth
above, no Participant shall make any disposition of all or any portion of Shares acquired or to be
acquired pursuant to an Option, except in compliance with all applicable Canadian and United States
federal, provincial and state securities laws and the provisions of the Stockholders Agreement.

13. International Participants

          With respect to Options which may be subject to the laws of jurisdictions outside the United
States of America, the Committee may, in its sole discretion, amend the terms of the Plan or
Options with respect to such Participants in order to conform such terms with the requirements of
such local law.

7

 

14. Choice of Law

          The Plan shall be governed by and construed in accordance with the laws of the State of New
York, without regard to conflicts of laws.

15. Effectiveness of the Plan

          The Plan shall be effective as of the Effective Date.

8

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