Document:

EXHIBIT
10.19

 

DATED Fifteenth of May, 1999

 

 

LAND
LEASE

 

made
between

 

THE
GOVERNMENT OF DUBAI

 

and

 

Murray
International Metals Limited

 

Operating
as

 

Murray
International Metals Middle East

 

 

THIS LEASE made this day of Fifteenth of May,
1999

 

BETWEEN

 

THE GOVERNMENT OF DUBAI (hereinafter called “the Landlord”,
acting through Jebel Ali Free Zone Authority of P.O. Box 17000, Jebel Ali,
Dubai, United Arab Emirates (hereinafter called “the Authority”).

 

AND

 

MURRAY INTERNATIONAL METALS
LIMITED

 

Operating as

 

MURRAY INTERNATIONAL METALS
MIDDLE EAST

 

Newbridge Industrial
Estate, Newbridge Midlothian EH28 8PJ United Kingdom

 

(hereinafter called “the
Tenant” which expression shall, where the context so admits include its
successors and permitted assigns).

 

WHEREAS

 

The Landlord has agreed with
the Tenant to grant to the Tenant a lease of the Premises for the term and
subject to the terms and conditions hereinafter contained.

 

1.A)        Location

 

The Landlord hereby lets to the Tenant the land
together with the buildings and structures now or hereafter constructed and
erected by the Tenant thereon or on some part thereof situate at Plot No M00711 (hereinafter called “the Premises”) in Jebel Ali Free
Zone (herein after called “the Free Zone”) which Premises are shown, for the
purpose of identification on JAFZ Drawing No. LD105/LA/0438
attached

 

B)            Term

 

This Lease shall be for a term of Ten years
(hereinafter called “the Term”) from Fifteenth of May, 1999
(hereinafter called “the Commencement Date”).

 

C)                                    Rent

 

The Tenant shall pay to the Landlord without any
deduction a yearly rent of United Arab Emirates Dirhams

 

Fifty-Two Thousand Sixty-Five (Dhs. 52,065/-) Only
Payable Annually In Advance with effect from 15 May 1999 to 14 May 2000 One
Hundred Four Thousand One Hundred Thirty (Dhs. 104,1301-) Only Payable Annually
In Advance with effect from 15 May 2000 to 14 May 2009

 

2.A)                         The Tenant shall, within two months
from the Commencement Date, start the construction works on the Premises
(hereinafter called “the Works”) of constructing, fitting out and completing
the buildings and facilities in a good and workmanlike

 

1

 

manner in accordance with the plans and specifications
referred to in the Second Schedule hereto with such amendments thereto as may
be agreed with the Landlord.

 

B)                                    The Tenant shall complete the Works
by 14-11-1999. The Works shall be deemed
to be completed upon the issue of the Completion Certificate by the Authority
and in accordance with the regulations specified in the Second Schedule.

 

3.                                       The Tenant hereby covenant with the
Landlord for itself, its successors in title and assigns to the intent that the
obligations herein shall continue throughout the Term as follows:

 

a)                                      to pay the said rent, at the times
and in manner aforesaid clear of all deductions;

 

b)                                     to obtain and pay for during each
year of the Term a licence permitting the Tenant to operate in the Jebel Ali
Free Zone, and to bear, pay and discharge all rates, taxes, assessments,
duties, charges, and impositions whatsoever which now are or during the Term
shall be charged, assessed or imposed upon or payable in respect of the
Premises or any part thereof or imposed upon the Landlord, the Tenant or
occupier and to pay for all electricity and water from the mains consumed on or
supplied to the Premises;

 

c)                                      to fence the Premises in a manner
similar to the rest of the Free Zone as approved by the Landlord and to repair,
uphold, cleanse, maintain and when necessary, rebuild, reconstruct or replace
the buildings on the Premises and on every part thereof and all additions and
improvements thereto and all fixtures and fittings in the Premises and all
roofs, walls, fences, roads, paths, yards, forecourts, drains, pipes and
appurtenances of or belonging to or used by or for the purpose of the Premises;

 

d)                                     all laws, decrees, regulations and
orders, whether governmental, municipal, local, or otherwise from time to time
in force in the Emirate of Dubai relating to the Premises or the business being
carried on for the time being on the Premises will in all respects apply to
this lease, except to the extent that the application of such laws, decrees,
regulations, and orders shall be excluded or modified by any laws, decrees,
regulations and orders which may be passed from time to time relating to the
Jebel Ali Free Zone :

 

e)                                      to maintain in good and serviceable
repair and condition the Landlord’s fixtures and fittings in or upon the
Premises as shown on JAFZA Drawing No. LD/05/LA/0438 attached hereto and to
replace such of them as may become worn out, lost, unfit for use or destroyed
by substituting others of a like or more modern nature and of a quality at
least as good as those being replaced;

 

f)                                        at the expiration or sooner
determination of the Term quietly to handover the Premises to the Landlord
together with all additions and improvements made thereto in the meantime and
all fixtures and fittings thereon (trade or Tenant’s Fixtures and Fittings as
defined below) only excepted subject to the Tenant making good all damage to
the Premises occasioned by removal of such Fixtures and Fittings) and in such
state and condition as shall in all respect be consistent with the full and due
performance by the Tenant of the covenants

 

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on its part herein contained. The Term “Tenant’s
Fixtures and Fittings” shall mean:

 

i)                                         articles and items of equipment
which have been attached to the Premises for the purposes of trade, which can
be removed without material injury to the Premises;

 

ii)                                      any other items annexed to the
Premises by the Tenant not for the permanent improvement of the Premises but
for temporary purposes, which can be removed entire and without material injury
to the Premises.

 

g)                                     except as hereinafter provided, to
pay the Landlord from time to time on demand a rateable or due proportion (such
due proportion, however, not to exceed 15% of the current annual rent) of the
expenses of making, repairing, rebuilding and cleaning all ways, roads,
pavements, drains, pipes, wires, fences or other conveniences which shall
belong to or be used by the Premises in common with any adjoining or
neighbouring premises such proportion in case of difference to be determined by
the Landlord’s Surveyor whose decision shall be final and binding on the
parties hereto;

 

h)                                     in the event of any emergency
whatsoever at the Free Zone and if required by the Landlord, to allow free
entry on and across the Premises for personnel of the Landlord and for any
emergency vehicles;

 

i)                                         not to allow the Premises to be used
to house or accommodate any persons and not to carry out any alteration or
addition whatsoever to the Premises or the buildings or structures erected
thereon and not to erect any new building or structure thereon without
obtaining the prior written approval of the Landlord and, if such approval is
given, to make and carry out such alteration or addition in conformity with the
plans and specifications as approved by the Landlord:

 

j)                                         to use the Premises only for Trading in High Grade Structural Steel

 

Additional uses shall be subject to the prior written
approval of the Landlord;

 

k)                                      not to use the Premises for any
offensive or dangerous business, or for any purpose which may be a nuisance to
the Landlord or occupiers of neighbouring or adjacent premises or which in the
Landlord’s opinion is detrimental to the use and development of the Free Zone
and to keep the Premises free from pollution of any kind;

 

1)                                      not to exhibit on any part of
Premises any sign, advertisement, or lettering except such as may previously
have been approved by the Landlord and in default the Landlord may remove the
same at the Tenant’s cost;

 

m)                                   ensure that all waste of whatsoever
nature is treated prior to disposal in a manner approved by the Landlord and to
take such measures as may be necessary to ensure that any effluent discharged
into the drains or pipes which

 

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belong to or are used by Premises will not be
corrosive or in any way harmful or water polluting.

 

n)                                     to permit the Landlord, its duly
authorized agents and all other persons authorized by it and its agents with or
without workmen at all reasonable times having given 24 hour notice (but
immediately in an emergency) to enter on the Premises for the purpose of repairing
any adjoining premises or for the purpose of making, repairing, maintaining,
cleansing, lighting and keeping in order and good condition all ways, roads,
drains, pipes or other conveniences which shall be used by the Premises and
also for the purpose of laying down, maintaining, repairing and testing
drainage, gas and water pipes and electric wires or cables or otherwise, the
Landlord or such persons making good any damage occasioned thereby to the
Premises;

 

o)                                     not to assign, transfer, charge,
underlet or part with possession or occupation of the whole or any part of the
Premises without the prior written consent of the Landlord, which shall not be
unreasonably withheld in the case of a dealing with the Premises as aforesaid
to a company of (in the Landlord’s opinion) acceptable financial status and
upon any assignment to obtain a direct covenant by the assignee with the
landlord to pay the rent hereby reserved and to observe and perform the
covenants and provisions of this Lease for the unexpired residue of the Term;

 

p)                                     to insure and keep insured the
Premises and every item of an insurable nature thereon including all buildings
fixtures and fittings with an insurance company acceptable to the Landlord
against loss or damage by fire and such other risks as the Landlord may deem
necessary in a sum equal to the cost of rebuilding, reinstating and replacing
the same and to cause all monies received by virtue of such insurance to be
laid out forthwith in rebuilding, reinstating the Premises and to make good any
deficiency out of its own money, and to insure against all potential
liabilities relative to the leasing and occupation of the Premises including
but without limitation workmen’s compensation liability, loss of rent, losses
incurred by tenants or users of adjoining or neighbouring premises and the
Landlord attributable to any act or omission done or not done on the Premises
and any other third party liability and to ensure that the Landlord is at all
times supplied with a certificate from the Tenant’s insurance company of the
Tenant’s compliance with its obligations under this sub-clause PROVIDED ALWAYS
that if the Tenant shall fail to insure or keep insured the Premises as
aforside the Landlord shall be entitled so to do on behalf of the Tenant and
recover the cost of such insurance from the Tenant; and recover the cost of
such insurance from the Tenant

 

q)                                     strictly to observe and abide by and
to ensure that employees of the Tenant and visitors to the Premises strictly
observe and abide by the rules and regulations from time to time laid down by
the landlord for the security of the Free Zone, the Port of Jebel Ali
regulation and all applicable traffic and safety regulations.

 

4)                                      The Landlord hereby covenants with
the Tenant that the Tenant shall (a) hold, occupy and enjoy the Premises
without any interruption or disturbance from or by the

 

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Landlord or any person rightfully claiming under or in
trust for the Landlord and (b) exercise all rights stipulated in the First
Schedule hereto

 

5)                                      It is hereby agreed between the
Landlord and the Tenant that if the rent hereby reserved shall be unpaid in
part or in whole for thirty (30) days from the date the Tenant shall have
received notice from the Landlord demanding payment of rent or if the Tenant
shall at any time during the Term hereby granted fail or neglect to observe or
perform any of the covenants, conditions and agreements herein contained,
resulting in a material breach, and if the Tenant fails to remedy such breach
after thirty (30) days notice, or if the Tenant, while the Premises shall
remain vested in the Tenant shall enter into liquidation whether compulsory or
voluntary or any assignee of the Tenant being an individual shall become
bankrupt or make any arrangement or composition with his creditors, then the
Landlord or any person or persons duly authorized by it in that behalf may
re-enter and repossess and enjoy the Premises as if this Lease had not been
made but without prejudice to any right of action or remedy of the Landlord in
respect of any antecedent breach of any of the covenants, conditions by the
Tenant contained in this Lease.

 

6)                                      it is hereby declared that the
Tenant shall abide by Free Zone Authority regulations and by the standard terms
and conditions of the Port Authority contained inter alia in the Jebel Ali Port
Ordinance of 1979, the Jebel Ali Port Rules of 1980 and the Jebel All Port
Tariff of 1980 as amended from time to time. Any additional payments to be made
by the Tenant or any exemption whatsoever granted by the Landlord shall be set
out in The Third Schedule hereto

 

7)                                      If at least six months before the
expiry of the Term the Tenant shall give to the Landlord written notice
requesting a renewal of this lease, the Landlord shall grant to the Tenant a
further lease of the Premises for a term of 10 years
from the date of expiry of this lease, at a rent (any increase shall not exceed
100% of the current annual rent) and on
such terms and conditions as may be agreed between the Landlord and the Tenant.
In the event of the parties failing to agree the terms on which the lease is to
be renewed before the expiry of the Term, the Tenant shall vacate the Premises
at the expiry of the Term.

 

8)                                      It is hereby agreed that as between
the Landlord and the Tenant references in this lease to the Landlord shall be
deemed to include reference to the Authority.

 

9)                                      a)             All dates herein shall be construed
with reference to and in accordance with the Gregorian Calendar and not
otherwise.

 

b)                                     Words herein importing the singular
number and the masculine gender shall include the plural number and the
feminine gender and vice versa and the word “person” shall include firms,
associations of persons and bodies corporate and unincorporated.

 

10)                                a)             The Tenant shall pay the Landlord’s
legal costs and disbursements incurred by the Landlord in connection with the
settling, amendment and termination of this lease and the costs and
disbursements of the Landlord’s Engineer incurred in connection with the
approval of the Tenant’s plans and specifications, and any amendments thereto,
as required pursuant to the Second Schedule hereto

 

5

 

b)                                     All correspondence pursuant to this
lease shall be sent to the parties in addresses set out below

 

	
  Jebel Ali Free Zone Authority,

  
	
  P.O. Box 17000

  
	
  Jebel Ali,

  
	
  Dubai, United Arab Emirates,

  
	
   

  
	
  Telex

  	
  :

  	
  47398 DPA EM

  
	
  Tel

  	
  :

  	
  815000

  
	
  Fax

  	
  :

  	
  816093

  
	
   

  
	
  Murray International Metals Limited

  
	
  Operating as

  
	
  Murray International Metals Middle East

  
	
  Newbridge Industrial Estate, Newbridge

  
	
  Midlothian EH28 8PJ

  
	
  United Kingdom

  
	
   

  
	
  Telex

  	
  :

  	
   

  
	
  Tel

  	
  :

  	
  0044-131-333-3333

  
	
  Fax

  	
  :

  	
  0044-131-333-4477

  

 

Any such notice, communication or demand given shall
be deemed to have been received at the time of confirmed delivery

 

11)                                This lease shall be governed by and
construed in accordance with the laws in force from time to time in the Emirate
of Dubai

 

12)                                any dispute or differences between
the parties arising out of or in connection with the conditions shall be
submitted to arbitration in Dubai before a single arbitrator. Within 30 days
after service of notice specifying the subject matter of the dispute or
difference the parties shall jointly appoint the arbitrator but if, by the end
of that period, they have been unable to agree on any such joint appointment,
the arbitrator shall on the application of either party be appointed by the
President of the Dubai Chamber of Commerce and Industry, or by a person
designated by him. In either event the arbitrator shall be a Dubai resident partner
of major firm of internationally recognised accountants.

 

The arbitration shall be conducted in the English and
Arabic Language and in accordance with such procedures as the arbitrator agrees
provided that no such procedures shall be contrary to any law or procedures for
the time being in force in Dubai. The costs of the arbitration shall form an
issue between the parties and be borne as provided in the arbitration award.

 

IN WITNESS WHEREOF the parties hereto have caused this
lease to be duly executed the day and year first before written.

 

6

 

THE
FIRST SCHEDULE

 

Rights
Granted to the Tenant

 

1.                                       The full and free right at all times
of access to and egress from the Premises, subject to any regulations which the
Landlord may from time to time impose for security of the Port, at the
accessway(s) shown on JAFZ Drawing No LD1051LA10438
attached hereto, over such accessway(s) over Road No. 1231
in Jebel Ali Port

 

and over the roads of Jebel Ali Port but subject to
the terms and conditions contained in the Jebel All Port Ordinance of 1979, the
Jebel Ali Port Rules of 1980 and the Jebel All Tariff of 1980 as such
Ordinance, Rules and Tariff may be amended from time to time.

 

2.                                       The full and free right to the
running and passage of water, soil and electricity through and along all pipes,
wires and cables serving the Premises and crossing over, under or through any
neighbouring or adjoining land of the Landlord.

 

Rights
Reserved by the Landlord

 

1.                                       The free and uninterrupted passage
and running of water, soil, gas, effluent, drainage, electricity, telephone and
any other service or supply through any pipes or cables now or hereafter
existing under or upon the Premises

 

2.                                       The Tenant shall give a six month
written notice to the Landlord of its intention to vacate the Premises.

 

7

 

THE
SECOND SCHEDULE

 

Before start of construction,
plans and specifications must be approved by the Free Zone Authority under and
be in compliance with, their control of Commercial Developments Planning and
Construction Regulations.

 

8

 

THE
THIRD SCHEDULE

 

9

 

 

10

 

	
  SIGNED

  	
   

  
	
  for and on behalf
  of

  	
   

  
	
  JEBEL
  ALI FREE ZONE AUTHORITY

  	
   

  
	
  as Agent of THE GOVERNMENT OF DUBAI

  
	
  by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  in the presence
  of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witness

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED

  	
   

  
	
  for and on behalf
  of

  	
   

  
	
  MURRAY
  INTERNATIONAL METALS LIMITED

  
	
  Operating as

  	
   

  
	
  MURRAY
  INTERNATIONAL METALS MIDDLE EAST

  
	
  by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  
	
  in the presence
  of:

  	
   

  
	
   

  	
   

  
	
  by

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witness

  	
   

  
			

 

11

 

DATED Fifteenth of May, 1999

 

 

PERSONNEL
SECONDMENT AGREEMENT

 

 

made
between

 

 

THE
GOVERNMENT OF DUBAI

 

 

and

 

 

Murray
International Metals Limited

 

 

Operating
as

 

 

Murray
International Metals Middle East

 

 

12Exhibit 10.21

 

EDGEN/MURRAY, L.P. INCENTIVE PLAN

(For Pipe Acquisition Limited and its Subsidiaries)

 

Adopted March 28, 2006

 

 

EDGEN/MURRAY,
L.P. INCENTIVE PLAN

(For Pipe Acquisition Limited and its Subsidiaries)

 

1.           Purpose of the Plan

 

The purpose of the Plan is to assist the Company and its Subsidiaries
in attracting and retaining valued employees by offering them a greater stake
in the Company’s success and a closer identity with it, and to encourage
ownership of the Company’s common units by such employees.

 

2.           Definitions

 

2.1             “Approved
Sale” means an Approved Sale as that term is defined in the Limited Partnership
Agreement.

 

2.2             “Award”
means an award of Restricted Common Units under the Plan.

 

2.3             “Award
Agreement” means the Agreement between the Company and a Holder pursuant to
which an Award is granted and which specifies the terms and conditions of that
Award, including the vesting requirements applicable to that Award.

 

2.4             “Administrator”
means the Company’s General Partner (the “General Partner”) as defined in the
Limited Partnership Agreement provided that the General Partner may delegate
authority with respect to Plan administration to the Compensation Committee of Pipe
Acquisition Limited’s Board of Directors or, if no such committee has been
appointed, Pipe Acquisition Limited’s Board of Directors.

 

2.5             “Cause”
means

 

(a)           a conviction of, a plea of nolo contendere, a guilty plea
or confession by the Employee to an act of fraud, misappropriation or
embezzlement or to a felony;

 

 

(b)           the commission of a fraudulent act or practice by the
Employee affecting the Company or its Subsidiaries;

 

(c)           the willful failure by the Employee to follow the
directions of the Administrator;

 

(d)           the Employee’s habitual drunkenness or use of illegal
substances, each as determined in the reasonable discretion of the Administrator;

 

(e)           the material breach by the Employee of the Employee’s
employment agreement with the Company or its Subsidiaries, if any; or

 

(f)            an act of gross neglect or gross or willful misconduct
that relates to the affairs of the Company or its Subsidiaries, which the Administrator,
in its reasonable discretion, deems to be good and sufficient cause;

 

provided,
that if the Employee shall receive a Termination Notice with respect to a
termination for Cause pursuant to Sections 2.4(c), 2.4(e) and/or 2.4(f), then
the Employee shall have thirty (30) days following receipt of the Termination
Notice to cure the breach specified therein, if capable of being cured, to the
reasonable satisfaction of the Administrator prior to the Employee’s employment
being terminated for Cause pursuant thereto; provided, however, the Employee
shall have the right to cure any such breach only one (1) time in any twelve
(12) month period.

 

2.6             “Change
in Control” means the sale of the Company or PAL in
an Approved Sale or by any other, 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 of the Company or PAL including securities convertible, exchangeable or
exercisable for or into voting securities of the Company or PAL, assuming the
conversion, exchange or 

 

2

 

exercise of all securities convertible, exchangeable or exercisable for
or into voting securities, or (ii) all or substantially all of the consolidated
assets of the Company or PAL. The determination of whether a Change in Control
has occurred shall be made by the Administrator in its sole discretion.

 

2.7             “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.8             “Common
Units” means the Common Units of the Company as defined in the Limited
Partnership Agreement, or such other class or kind of interests or other
securities resulting from the application of Section 7.

 

2.9             “Company”
means Edgen/Murray, L.P., a Delaware limited partnership, or any successor entity.

 

2.10           “EBITDA”
means for any given year, PAL’s and its Subsidiaries consolidated earnings
before interest, income taxes, depreciation and amortization as determined
after payment of bonuses, if any, but adjusted for purchase accounting or any
other items that are considered unique, or likely to affect only one accounting
period (unique or “one time” charges are charges for which, under generally
accepted accounting principles consistently applied, an adjustment to EBITDA
would be considered proper), as determined by the Administrator, in its sole
discretion, based on the audited financial statements for such year.

 

2.11           “Employee”
means an officer or other key employee of PAL or a Subsidiary, including a
director who is such an employee.

 

2.12           “Fair
Market Value” means, on any given date, if the Company’s Common Units are not
Publicly Traded, the value of a Common Unit as determined by the Company in its
sole discretion. If the Company’s Common Units are Publicly Traded, “Fair 

 

3

 

Market Value” means (c) if the Common Units are listed on an established
stock exchange or exchanges, the closing price of the Common Units on the
principal exchange on which it is traded on such date, or if no sale was made
on such date on such principal exchange, on the last preceding day on which the
Common Units were traded or (d) if the Common Units are not then listed on an
exchange, but are quoted on the NASDAQ Stock Market, Inc. (“NASDAQ”) or a
similar quotation system, the most recent closing price per each Common Unit as
quoted on NASDAQ or similar quotation system.

 

2.13           “Holder”
means an Employee to whom an Award is made.

 

2.14           “Indebtedness
for Borrowed Money” of a Person means (a) all indebtedness of such Person,
either directly or indirectly, for borrowed money, whether current or funded,
secured or unsecured, (b) all indebtedness of such Person, either directly or
indirectly, for deferred purchase price of property or services represented by
a note or other security, (c) all indebtedness of the such Person, either
directly or indirectly, created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person,
even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
property, (d) all indebtedness of such Person, either directly or indirectly, secured
by a purchase money mortgage or other lien to secure all or part of the
purchase price of property subject to such mortgage or lien, (e) all
obligations under leases which shall have been or should be, in accordance with
generally accepted accounting principles, recorded as capital leases in respect
of which the such Person, either directly or indirectly, is liable as lessee,
(f) any liability of such Person, either directly or indirectly, in respect of
banker’s acceptances or letters of credit and (g) all indebtedness referred 

 

4

 

to in clause (a) through (f) above which is directly or indirectly
guaranteed by such Person or any of its Subsidiaries or which such Person or
any of its Subsidiaries has agreed, contingently or otherwise, to purchase or
otherwise to acquire or in respect of which it has otherwise assured a creditor
against loss.

 

2.15           “Limited
Partnership Agreement” means the Amended and Restated Limited Partnership
Agreement of Edgen/Murray, L.P., dated as of December 15, 2005, as amended from
time to time.

 

2.16           “1934
Act” means the Securities Exchange Act of 1934, as amended.

 

2.17           “PAL”
means Pipe Acquisition Limited, a company registered in England and Wales under
No. 05501083, or a successor company.

 

2.18           “PAL
Ordinary Shares” means the ordinary shares of PAL, par value $0.01 per share,
or such other class or kind of shares or other securities resulting from the
application of Section 7.

 

2.19           “PAL
Equity Value” means the amount, in dollars, obtained by multiplying PAL’s and
its Subsidiaries’ consolidated EBITDA for PAL’s fiscal year accounting period ending
on or immediately preceding the date as of which Equity Value is to be
determined, by the number 5.34, and subtracting from that product (a) all
Indebtedness for Borrowed Money of PAL and its Subsidiaries outstanding on the
last day of that same accounting period, (b) an assumed preferred equity value
calculated by assuming an initial preferred equity value at February 1, 2006 of
GBP 15,429,000 and adding to that amount an accumulating dividend accrued on a
daily basis at the rate of 8.50% per annum, compounded 

 

5

 

annually, (c) the aggregate liquidation
preferences (including accrued but unpaid dividends) not taken into account in
(b) immediately preceding, of all shares of any equity security of PAL or any
Subsidiary that, in the event of the PAL’s liquidation, entitles the holders of
such securities to be paid before the holders of PAL Ordinary Shares and that
are outstanding on the last day of that same accounting period, offset by (d)
the amount of cash and cash equivalents on PAL’s balance sheet on the last day
of that same accounting period.

 

2.20           “Plan”
means the Edgen/Murray, L.P. Incentive Plan herein set forth, as amended from
time to time.

 

2.21           “Per
Share Equity Value” means the per share amount, in United Kingdom pounds (“GBP”),
derived by dividing the PAL Equity Value as the last day of PAL’s fiscal year
ending on or immediately before the date on which Per Share Equity Value is to
be determined by 5,796,000, subject to adjustment under Section 7 to the
extent, if any, determined by the Administrator to be necessary.

 

2.22           “Person”
means and includes an individual, a trust, estate, partnership, association,
company, including without limitation, a limited liability company or a
corporation.

 

2.23           “Publicly
Traded” means that relevant equity securities are listed on an established
stock exchange or exchanges, or are quoted on NASDAQ or a similar quotation
system.

 

2.24           “Restricted
Common Units” means Common Units awarded by the Administrator under Section 6
of the Plan.

 

6

 

2.25           “Restriction
Period” means the period during which a Restricted Common Unit was awarded
under Section 6 of the Plan is subject to forfeiture. The Restriction Period
shall not lapse with respect to any Restricted Common Unit until all conditions
imposed under Sections 6.4 or 6.5, or otherwise under this Plan and the Award
Agreement, have been satisfied.

 

2.26           “Subsidiary”
means any entity (other than PAL (or when specifically required by context, the
Company)) in an unbroken chain beginning at the top of such chain with PAL (or
when specifically required by context, the Company) (or any successor to PAL,
or as required by context, the Company) if each of the entities other than the
last entity in the unbroken chain owns interests possessing 50% or more of the
total combined voting or economic power of all classes of such interests in one
of the other entities in such chain.

 

2.27           “Termination
Notice” means a written notice delivered by PAL or any of its Subsidiaries to
an Employee specifying that PAL or any of its Subsidiaries has terminated the
Employee’s employment.

 

3.           Eligibility

 

Any Employee of PAL or any of its Subsidiaries is eligible to receive
an Award.

 

4.           Administration and Implementation
of Plan

 

4.1             The
Plan shall be administered by the Administrator, which shall have full power to
interpret and administer the Plan and full authority to act in selecting the
Employees to whom Awards will be granted, in determining whether, and to what
extent, Awards may be transferable by the Holder, in determining the amount of
Awards to be granted to each such Employee, in determining the terms and
conditions of Awards granted under the 

 

7

 

Plan and in determining the terms of the Award Agreements that will be
entered into with Holders.

 

4.2             The
Administrator shall have the power to adopt regulations for carrying out the
Plan and to make changes to such regulations as it shall, from time to time,
deem advisable. Any interpretation by the Administrator of the terms and
provisions of the Plan and the administration thereof, and all actions taken by
the Administrator, shall be final and binding on Holders.

 

4.3             The
Administrator may amend any outstanding Awards without the consent of the
Holder to the extent it deems appropriate; provided however, that in the case
of amendments adverse to the Holder, the Administrator must obtain the Holder’s
consent to any such amendment.

 

5.           Units Subject to the Plan

 

5.1             Subject
to adjustment as provided in Section 7, the total number of Common Units
available for Awards under the Plan shall be 300,000.

 

5.2             Any
Common Units issued by the Company in connection with the assumption or
substitution of outstanding equity or similar grants from an acquired company shall
not reduce the Common Units available for Award under the Plan. If any Common
Units subject to any Award granted hereunder are forfeited or such Award
otherwise terminates, the Common Units subject to such Award, to the extent of
any such forfeiture or termination, shall again be available for Awards under
the Plan.

 

8

 

6.           Restricted Common Units

 

An Award of a Restricted Common Unit is a grant by the Company of a
specified number of Common Units to the Employee, which Common Units are
subject to forfeiture during a Restriction Period upon the happening of
specified events or as result of the failure to meet financial targets or
performance goals or satisfy other conditions specified in the Award Agreement.
Such an Award shall be subject to the following terms and conditions:

 

6.1             Restricted
Common Units shall be evidenced by Award Agreements. Such agreements shall
conform to the requirements of the Plan and may contain such other provisions
as the Administrator shall deem advisable.

 

6.2             Upon
determination of the number of Restricted Common Units to be granted to the
Holder, the Administrator shall if it would otherwise normally issue
certificates evidencing the ownership of Common Units direct that a certificate
or certificates representing that number of Common Units be issued to the
Holder with the Holder designated as the registered owner. The certificate(s),
if any, representing such Common Units shall bear appropriate legends as to
sale, transfer, assignment, pledge or other encumbrances to which such Restricted
Common Units are subject, both during the Restriction Period and thereafter
under the Limited Partnership Agreement, and, if issued, such certificates
shall be deposited by the Holder, together with instrument of assignment
endorsed in blank, with the Company, to be held in escrow during the
Restriction Period.

 

6.3             During
the Restriction Period the Holder shall have the right to receive the Holder’s
allocable share of any distributions made by the Company on its Common 

 

9

 

Units and, to the extent such Restricted Common Units have voting
power, to vote the such Restricted Common Units.

 

6.4             The
Administrator may condition the expiration of the Restriction Period upon: (i)
the Employee’s continued service over a period of time with the Company or its
Subsidiaries, (ii) the Company’s or PAL’s attainment of specified financial
targets, (iii) the achievement by the Employee, the Company, PAL or its Subsidiaries
of any other performance goals set by the Administrator, or (iv) any
combination of the above conditions, as specified in the Award Agreement. If
the specified conditions are not attained, the Holder shall forfeit the portion
of the Award with respect to which those conditions are not attained, and the
underlying Common Units shall be forfeited to the Company.

 

6.5             The
Award Agreement shall specify the duration of the Restriction Period and the
financial, performance, employment, termination of employment or other
conditions under which the Restricted Common Units may be forfeited to the
Company. At the end of the Restriction Period, when all such conditions have
been satisfied, the restrictions imposed hereunder shall lapse with respect to
the number of Restricted Common Units as determined by the Administrator, and
any legend described in Section 6.2 that is then no longer applicable, shall be
removed and such number of Common Units delivered to the Holder (or, where
appropriate, the Holder’s legal representative). The Company may, in its sole
discretion, modify or accelerate the vesting and delivery of any Restricted
Common Units.

 

6.6             An
Employee who is awarded Restricted Common Units shall, regardless of whether
the Restriction Period with regard to such Award has lapsed, be a party to and bound
by the Limited Partnership Agreement, as a limited partner thereunder. Accordingly,

 

10

 

any Restricted Common Units issued under the Plan shall be held, transferred,
sold or otherwise disposed of only in accordance
with the Limited Partnership Agreement. Without limiting the generality of the
foregoing, each Holder shall be bound by the provisions set forth in the Limited
Partnership Agreement with regard to an Approved Sale, as well as be bound by
any transfer restrictions, tag along rights, restrictive covenants and other
obligations delineated in the Limited Partnership Agreement. Any amendment to
the Limited Partnership Agreement that effects a provision contained herein
shall be deemed to be an amendment to the Plan.

 

6.7             Upon
a Change in Control, and subject to the exercise of the Administrator’s
discretion to vest all Awards under Section 6.5, any then outstanding Awards
shall be treated as provided in the applicable Award Agreement.

 

6.8             Unless
specifically provided otherwise in an Award Agreement, upon a termination of a
Holder’s employment for any reason, the Holder shall forfeit any unvested Restricted
Common Units, i.e., any Restricted Common Units with respect to which the
Restriction Period has not lapsed.

 

6.9             Notwithstanding
any provision in the Plan or in any Award Agreement to the contrary, upon a
termination of the Holder by the Company (or its Subsidiaries) for Cause, the
Holder shall forfeit any Restricted Common Units issued under the Plan,
regardless of whether such Restricted Common Units are vested and otherwise
free from restriction.

 

7.           Adjustments upon Changes in
Capitalization

 

In the event of a reorganization, recapitalization, unit split,
spin-off, split-off, split-up, unit dividend, issuance of unit rights,
combination of interests, additional equity 

 

11

 

investments, merger, consolidation or any other change in the corporate
or capital structure of the Company or PAL affecting the Common Units or the PAL
Ordinary Shares, or any distribution to interestholders other than a cash distribution,
the Administrator shall make appropriate adjustment in the number and kind of equity
interests authorized by the Plan, the calculation of PAL Equity Value and Per
Share Equity Value and any other adjustments to outstanding Awards as it
determines appropriate in its sole discretion.

 

8.           Effective Date, Termination and
Amendment

 

The Plan shall become effective on March 28, 2006,
and shall remain in full force and effect until the earlier of ten years from
the date of its adoption by the Administrator, or the date it is terminated by
the Administrator. The Administrator shall have the power to amend, suspend or
terminate the Plan at any time, provided that any such termination of the Plan
shall not affect Awards outstanding under the Plan at the time of termination.

 

9.           Repurchase of Vested Awards

 

9.1             If
PAL or one of its Subsidiaries terminates the Holder’s employment with PAL and
its Subsidiaries for any reason other than for Cause, including disability or
the Holder’s employment is terminated by death, and neither PAL, the Company
nor a successor to either of them has a class of equity securities that is Publicly
Traded, then the Company shall be obligated to repurchase all of the Holder’s Restricted
Common Units that, as of the date of such termination, are vested. The purchase
price paid by the Company shall be the Fair Market Value of the Common Units as
of the date of the Holder’s termination of employment. The Company must deliver
such purchase price to the Holder within 180 days
of the Employee’s termination from employment. Notwithstanding the foregoing,
the Company’s 

 

12

 

obligation to deliver payment for the Holder’s Restricted Common Units
that the Company is obligated to purchase under this Section 9.1 shall be
suspended, if the Administrator, in its sole discretion, determines that such
payment would result in the Company’s, PAL’s or any of their respective
Subsidiary’s violation of any agreement relating to the Company’s, PAL’s or any
of their respective Subsidiary’s Indebtedness for Borrowed Money. The Administrator
shall notify the Holder within 90 days of the Company’s determination that the
Company’s obligation to deliver payment for the Holder’s Restricted Common
Units has been suspended. Beginning on the date on which the Company, in its
sole discretion, determines that the payment would no longer result in the
Company’s, or PAL’s or any of their respective Subsidiary’s violation of any
agreement relating to the Company’s, PAL’s or any of their respective
Subsidiary’s Indebtedness for Borrowed Money, the Company shall have 180 days
to complete the repurchase described in this Section 9.1 by delivering payment
for the Restricted Common Units to the Holder. A Subsidiary of the Company or
another designee of the Company may assume the Company’s repurchase obligation
under this Section 9.1.

 

9.2             If
the Holder terminates the Holder’s employment with the Company (and its
Subsidiaries) for any reason, and neither the Company, PAL nor a successor to
either of them has a class of equity securities that is Publicly Traded,  then the Company shall have the right, but
not the obligation, to repurchase any or all of the
Holder’s Restricted Common Units that as of the date of such termination are
vested. The Company must notify the Holder within 90 days of the Holder’s
termination that the Company will exercise its right to repurchase the Holder’s
Restricted Common Units. The purchase price paid by the Company shall be the Fair
Market Value of the Common Units as of the date of the Holder’s termination of 

 

13

 

employment. The Company must deliver such purchase price to the Holder
within 180 days of the Company’s notification to
the Holder of its intent to repurchase the common units. Notwithstanding the
foregoing, the Company’s obligation to deliver payment for the Holder’s Restricted
Common Units that the Company has determined to purchase under this Section 9.2
shall be suspended, if the Company, in its sole discretion, determines that
such payment would result in the Company’s, PAL’s or any of their respective
Subsidiary’s violation of the agreement relating to the Company’s, PAL’s or any
of their respective Subsidiary’s Indebtedness for Borrowed Money. The Administrator
shall notify the Holder within 90 days of the Administrator’s determination
that the Company’s obligation to deliver payment for the Holder’s Restricted
Common Units has been suspended. Beginning with the date on which the Company,
in its sole discretion, determines that the payment would no longer result in
the Company’s, PAL’s or any of their respective Subsidiary’s violation of the agreement
relating to the Company’s or any its Subsidiary’s Indebtedness for Borrowed
Money, the Company shall have 180 days to complete the repurchase described in
this Section 9.2 by delivering payment for the Restricted Common Units to the
Holder. The Company may designate one of its Subsidiaries or another person to
exercise the Company repurchase right under this Section 9.2.

 

10.         Transferability

 

Except as provided below, Awards may not be pledged, assigned or
transferred for any reason during the Holder’s lifetime, and any attempt to do
so shall be void and the relevant Award shall be forfeited. The Administrator
may grant Awards that are transferable by the Holder during his lifetime, but
such Awards shall be transferable only to the extent specifically provided in
an agreement entered into with the Holder. The transferee of the Holder 

 

14

 

shall, in all cases, be subject to the Plan, the Limited Partnership Agreement
and the provisions of the Award Agreement between the Company and the Holder.

 

11.         General Provisions

 

11.1           Nothing
contained in the Plan, or any Award granted pursuant to the Plan, shall confer
upon any Employee any right to continued employment by the Company or its
Subsidiaries, nor interfere in any way with the right of the Company or its Subsidiaries
to terminate the employment of any Employee at any time.

 

11.2           For
purposes of this Plan, a transfer of employment among the Company, PAL and its Subsidiaries
shall not be deemed a termination of employment.

 

11.3           Holders
shall be responsible to make appropriate provision for all taxes required to be
withheld in connection with any Award or the transfer of any Common Units
pursuant to this Plan. Such responsibility shall extend to all applicable United
Kingdom or United States federal, state, local or foreign withholding taxes. The
Company shall, at the election of the Holder, have the right to retain the
number of Common Units whose Fair Market Value equals the amount to be withheld
in satisfaction of the applicable withholding taxes.

 

11.4           The
Plan and all determinations made and actions taken pursuant hereto shall be administered
to comply with the applicable laws of the United Kingdom, except that with
respect to Employees in the United States, the Plan will comply with all
applicable United States law, including, but not limited to, the 1934 Act, the
Code, the Employee Retirement Income Security Act of 1974 and/or the laws of Delaware
and shall be construed accordingly.

 

15

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