Document:

Exhibit 10.33

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (“Agreement”)
is made as of           ,
2005 between Williams Scotsman International, Inc., a Delaware corporation
and Williams Scotsman Inc., a Maryland corporation (together, the “Company”),
and John B. Ross, an individual (hereinafter called “Employee”).

 

W I T N E S S E T H

 

The Company wishes to
continue to employ Employee and Employee wishes to continue in the employ of
the Company on the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in
consideration of the facts, mutual promises and covenants contained herein, and
intending to be legally bound hereby, the Company and Employee agree as
follows:

 

1.               Term.  Subject to the provisions of paragraph 5 of
this Agreement, this Agreement shall be effective for a period commencing on
the date hereof and ending on the day immediately preceding the fifth
anniversary of the date hereof (the “Initial Term”); provided,
however, that such term shall be automatically extended for successive
twelve (12) month periods unless, no later than sixty (60) days prior to the
expiration of the Initial Term or any extension thereof, either party hereto
shall provide written notice to the other party hereto of its or his desire not
to extend the term hereof (the Initial Term together with any extension shall
be referred to hereinafter as the “Term”).

 

2.               Employment.  The Company agrees to employ Employee in the
position of Vice President and General Counsel under the terms, conditions, and
restrictions contained in this Agreement.

 

3.               Duties
and Responsibilities.

 

(a)                                  Employee
agrees to perform such duties and responsibilities normally associated with the
position of Vice President and General Counsel and as may be assigned to
Employee from time to time by the Company’s President and Chief Executive
Officer or his designee.

 

(b)                                 During
his employment with the Company, Employee shall devote his entire working time,
energy, skill and best efforts to the performance of his responsibilities
hereunder in a manner which will faithfully and diligently further the business
and interest of the Company.  In
particular, during his employment with the Company, Employee may not be
employed by or otherwise provide any services in exchange for compensation to
any other entity, unless he obtains prior written authorization from the
Company’s President and Chief Executive Officer.  In no case

 

 

may Employee during his employment with the Company
provide any services to or receive any compensation from any competitor of the
Company.

 

4.               Compensation.

 

(a)                                  For
all of the services rendered by Employee to the Company during the Term,
Employee shall receive a biweekly salary in the gross amount of $132,500 (“Base
Salary”), less taxes and other deductions required by law, payable in accordance
with the Company’s regular payroll practices in effect from time to time. The
Board, or a committee thereof, shall review Employee’s Base Salary on an annual
basis, provided that the Base Salary may be increased, but not decreased.

 

(b)                                 In
addition to Employee’s Base Salary, the Employee shall be eligible for an
annual management incentive subject to the terms and conditions of the Company’s
management incentive plan as in effect from time to time (the “Bonus”).
Employee will also be eligible for participation in the Company’s 2005 Omnibus
Award Plan (“Plan”).

 

(c)                                  During
the Term, Employee shall be eligible to participate in the Company’s insurance
and other benefit plans, policies and programs of the Company, subject to their
respective eligibility requirements and other terms, conditions, restrictions
and exclusions, including, without limitation, the Company’s deferred
compensation plan and automobile expense reimbursement plan; provided, however,
that the Company reserves the right to restrict Employee’s eligibility for the
Company’s deferred compensation plan to the extent necessary for the Company to
avoid any adverse tax consequences that may arise in connection with such plan.  Nothing herein shall preclude or otherwise
restrict the Company’s right to modify or terminate any insurance or other
benefit plan, policy or program in which its employees participate as it deems
appropriate in its sole discretion.

 

5.               Termination of
Employment.  Either party can
terminate this Agreement and Employee’s employment at any time and for any or
no reason by providing the other party written notice, provided that, in the
event of termination by Employee, Employee shall give the Company at least
thirty (30) calendar days’ advance written notice, which notice the Company may
waive, in whole or in part, in its sole discretion.

 

6.               Post-Termination
Payment.

 

(a)                                  Except
as provided in paragraphs 6(b), 6(g) and 6(h) below, and except
with respect to vested stock options, 401(k) plan benefits and similar rights,
Employee (or his estate) shall not be eligible for any payments from the
Company subsequent to the termination of Employee’s employment if he:

 

(i)                                     Voluntarily
resigns other than as described in paragraph 6(b) below;

 

(ii)                                  Dies;
or

 

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(iii)                               Is discharged by the
Company for “Cause” as defined below.

 

(b)                                 If
this Agreement and Employee’s employment is terminated (i) by the Company
without “Cause” (as defined below) or (ii) by the Employee for “Good
Reason” (as defined below) within twelve (12) months following a “Change in
Control” (as defined below), the Company shall pay Employee as severance (A) his
then current Base Salary for a period of twelve (12) months following the date
of termination of employment (the “Severance Period”), and (B) an
amount equal to the Bonus earned by the Employee for the year prior to the year
in which termination occurs, such amount and Base Salary to be paid ratably
over the Severance Period in accordance with the Company’s normal payroll
practices.  In addition, on the date
bonuses are paid to other senior executives of the Company for the calendar
year in which the Employee’s termination of employment occurs (the “Payment
Date”), the Employee shall also receive a pro rata Bonus in respect of such
calendar year equal to the Bonus, if any, in respect of such calendar year that
Employee would have received had he remained employed on the Payment Date multiplied
by a fraction, the numerator of which is the number of days in such calendar year
preceding and including the Employee’s date of termination, and the denominator
of which is 365.  All payments under this
Section 6(b) shall be conditioned on the Employee’s execution at the
time of his termination of employment of a general release of any and all
claims which he may have arising out of or relating to employment with and/or
termination of employment by the Company, which release shall be satisfactory
to the Company, provided that such release shall specifically exclude Employee’s
rights under this Agreement and with respect to vested stock options, 401(k)
plan benefits and similar benefit plans. 
Notwithstanding the foregoing, if amounts paid under this Agreement are
determined to be deferred compensation subject to Section 409A of the Internal
Revenue Code of 1986 as amended, (“Code”) and Employee is deemed to be a
“specified employee” as defined in Section 409A(a)(2)(B)(i) of the
Code and the regulations and guidance issued thereunder relating to deferred
compensation, then any payments due under this paragraph 6(b) shall
commence as of the first of the month after the sixth month following the date
on which Employee’s termination of employment occurs.  Subject to paragraph 10(j) hereof, the
Company also reserves the right, in its sole discretion, to make the severance
payments provided for in this paragraph in a lump sum.

 

(c)                                  “Cause,”
shall mean any of the following:  (i) willful
misconduct, theft, fraud, misappropriation, embezzlement, gross negligence,
self-dealing, dishonesty, material misrepresentation, being convicted of or
pleading guilty or no contest to any felony, (ii) material violation by
Employee of any Company policy or provision of this Agreement; (iii) Employee’s
inability to perform the essential functions of his or her job, as a result of
disability, illness, or other similar reasons, for a total of twenty-six (26)
weeks or more in any rolling twelve (12) month period; (iv) Employee’s
willful and continued failure to perform substantially all of his duties with
the Company or a failure to follow the lawful direction of the Board of
Directors of the Company (“Board”), in each case after the Board
delivers a written demand for substantial performance and Employee neglects to
cure such a failure to the reasonable satisfaction of the Board within 15 days;
(v) Employee’s failure to reasonably cooperate in an

 

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investigation involving the Company by any
governmental authority; or (vi) Employee’s material, knowing and
intentional failure to comply with applicable laws with respect to the
execution of the Company’s business operations. 
In all cases, the existence of “Cause” shall be determined by the Board.

 

(d)                                 “Good
Reason” shall mean any of the following: (i) the assignment to Employee
of any duties inconsistent with his status as an executive officer of the
Company, his removal from that position, or a substantial diminution in the
nature or status of his responsibilities from those in effect immediately prior
to the Change in Control; (ii) a reduction by the Company in Employee’s
Base Salary or annual management incentive opportunity as in effect immediately
prior to the Change in Control or as the same is increased from time to time
following the Change in Control; and (iii) without Employee’s consent, the
relocation of Employee’s primary office to a location that is more than 50
miles from both of (A) such Employee’s primary office immediately prior to
the Change in Control and (B) Employee’s residence at the time of such
relocation.

 

(e)                                  “Change
in Control” shall have the meaning set forth in the Plan.

 

(f)                                    The
termination of this Agreement and Employee’s employment either by Employee or
by the Company shall not release Employee from Employee’s obligations and
restrictions under paragraphs 7 and 8 of this Agreement.

 

(g)                                 Regardless
of the reason for the termination of Employee’s employment, Employee (or his
estate) will receive Base Salary for any days actually worked by Employee prior
to the termination of his employment and for any accrued but unused paid time
off benefits, to the extent Employee may be eligible for same under the Company’s
policies.

 

(h)                                 Regardless
of the reason for the termination of Employee’s employment, whether by Employee
or the Company, except as otherwise provided in this paragraph (h), Employee
(or his estate) shall not be eligible for any Company-paid benefits subsequent
to the termination of his/her employment. 
Notwithstanding the foregoing, Employee and his eligible dependents may
continue to participate in the Company’s group health plan for eighteen (18)
months following Employee’s termination of employment under the Company’s group
health plan in accordance with the Consolidated Omnibus Budget Reconciliation
Act of 1985 (“COBRA”) at the sole expense of the Employee effective on
the first day of the month following the month in which his employment
terminates, subject to COBRA’s eligibility requirements and other terms,
conditions, restrictions and exclusions; provided, however, that
if this Agreement and Employee’s employment is terminated (i) by the
Company without Cause or (ii) by Employee for Good Reason within twelve
(12) months following a Change in Control, the Company shall pay the cost of
premium payments in respect of the Employee’s continued participation in (1) such
group health plan and (2) the Company’s group Term Life insurance program
(subject to the availability of continued coverage during the Severance Period
at rates comparable to those paid on behalf of similarly situated active

 

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employees), for the Severance Period; provided,
further, that the Company’s obligation to pay such premium costs shall
cease at the time Employee and his eligible dependents become eligible for
comparable health benefits or life insurance benefits from another employer.

 

(i)                                     Other
than as specifically set forth in this paragraph 6, and except with
respect to vested stock options, 401(k) plan benefits and similar rights,
Employee shall not be eligible for any payments from the Company subsequent to
the termination of this Agreement and Employee’s employment.  In particular, if Employee receives
payment(s) pursuant to paragraph 6(b) above, such payments are in
lieu of and not in addition to any payments to which he otherwise would be
entitled under any Company severance policy or plan that may exist or be
created or amended in the future.

 

7.               Company
Property.

 

(a)                                  Any
and all writings, inventions, improvements, processes, procedures and/or
techniques which Employee may make, conceive, discover or develop, either
solely or jointly with any other person or persons, at any time during his
employment with the Company, whether during working hours or at any other time
and whether at the request or upon the suggestion of the Company or otherwise,
which relate to or are useful in connection with any business now or hereafter
carried on or contemplated by the Company, including developments or expansions
of its present fields of operations, shall be the sole and exclusive property
of the Company.  Employee shall make full
disclosure to the Company of all such writings, inventions, improvements,
processes, procedures and techniques, and shall do everything necessary or
desirable to vest the absolute title thereto in the Company.  Both during and after his employment with the
Company, Employee shall write and prepare all specifications and procedures
regarding such inventions, improvements, processes, procedures and techniques
and otherwise aid and assist the Company so that the Company can prepare and
present applications for copyright or letters patent therefor and can secure
such copyright or letters patent wherever possible, as well as reissues,
renewals, and extensions thereof, and can obtain the record title to such copyright
or patents, or enforce copyrights or patents, so that the Company shall be the
sole and absolute owner thereof in all countries in which it may desire to have
copyright or patent protection.  Employee
shall not be entitled to any additional or special compensation or
reimbursement regarding any and all such writings, inventions, improvements,
processes, procedures and/or techniques, except that the Company shall
reimburse Employee for any expenses which Employee may incur in vesting
absolute title thereto in the Company.

 

(b)                                 Employee
acknowledges that all documents, records, files, computer programs and data in
his possession or custody, whether made by Employee or any other person,
relating to products/services offered by or other activities of the Company
(whether or not the information contained therein is deemed confidential), are
and shall remain the sole and exclusive property of the Company.

 

(c)                                  Immediately
upon the termination of Employee’s employment, Employee shall deliver to the
Company, retaining no copies, all Company

 

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property (for example, keys and credit cards) and all
documents, records, files, computer programs and other data or other writings
relating to the Company’s business, regardless of where or by whom said
writings were kept or prepared.

 

8.               Confidentiality
and Covenants Against Interference.

 

(a)                                  During
the course of Employee’s employment with the Company, Employee may, from time
to time, be placed in a position of trust and confidence in which he receives
or contributes to the creation of confidential and/or proprietary information
relative to the operations of the Company. 
This confidential and/or proprietary information includes, but is not
limited to:  business, manufacturing,
marketing, legal and accounting methods, policies, plans, procedures,
strategies and techniques; information concerning the Company’s earnings,
production volumes and methods for doing business; research and development
projects, plans and results; trade secrets (e.g., formulas, methods,
processes and specifications) and technical information; the names and
addresses of the Company’s employees, vendors, suppliers, distributors,
customers, potential customers and former customers; customer lists; pricing,
credit and financial information; and any other data or information relating to
the business of the Company which is not generally known by and readily
accessible to the public.  Employee may
use and/or disclose confidential and/or proprietary information only during his
employment with the Company and only as necessary to further the Company’s
interests.  During his employment with
the Company and at all times thereafter, regardless of the reason for the
termination, whether by Employee or the Company, whether with or without cause,
Employee shall not use for his personal benefit or for any purpose which does
not further and/or which is inconsistent with the interests of the Company, or
disclose, communicate or divulge to any person, firm, association, or Company
other than the Company, any confidential and/or proprietary information which
he will acquire in the course of his employment and which is not generally
known by and/or readily accessible to the public.

 

(b)                                 During
the Term and for a period of one (1) year following the termination of
Employee’s employment with the Company, Employee shall not, for his own benefit
or for the benefit of any third party, directly or indirectly, in any capacity
(as an employee, independent contractor, owner or otherwise):

 

(i)                                     Induce
or attempt to induce any employee of the Company to terminate his or her
employment with the Company or any prospective employee not to establish a
relationship with the Company; or

 

(ii)                                  Induce
or attempt to induce any current customer to terminate its/his/her relationship
with the Company or any potential customer not to establish a relationship with
the Company.

 

(c)                                  During
the Term and for a period of twelve (12) months following the termination of
Employee’s employment with the Company, Employee shall not, for his own benefit
or for the benefit of any third party, directly or indirectly, in any capacity
(whether as a director, officer, employee, independent contractor, owner,

 

6

 

partner, participant, consultant or advisor or as the
source of any financial assistance or otherwise) solicit or otherwise engage in
any business which would compete with the Company’s business.  In light of the fact that the Company’s
customers and sales are throughout the entire United States of America, the
restrictions set forth in this paragraph 8(c) shall apply throughout
the entire United States of America and in any foreign country in which the
Company does business at the time Employee’s employment is terminated.

 

(d)                                 Employee
acknowledges and agrees that, in view of the nature of the business in which
the Company is engaged, the restrictions contained in paragraphs 8(a), 8(b) and
8(c) above are reasonable and necessary to protect the legitimate
interests of the Company, and that any violation thereof would result in
irreparable injuries to the Company, and Employee therefore acknowledges and
agrees that, in the event of his violation of any of these restrictions, the
Company shall be entitled to obtain from any court of competent jurisdiction
preliminary and permanent injunctive relief as well as damages and an equitable
accounting of all earnings, profits and other benefits arising from such
violation, which rights shall be cumulative and in addition to any other rights
or remedies to which the Company may be entitled.

 

(e)                                  Employee
further agrees that if any or any portion of the foregoing covenants, or the
application thereof, is construed to be invalid or unenforceable, the remainder
of such covenant or covenants shall not be affected and the remaining covenant
or covenants shall then be given full force and effect without regard to the
invalid or unenforceable portion(s).  If
a covenant is held to be unenforceable because of the area covered, the duration
thereof and/or the scope thereof, Employee agrees that the court making such
determination shall have the power to reduce the area and/or the duration
and/or scope thereof, and the covenant shall then be enforceable in its reduced
form.

 

(f)                                    In
the event Employee violates any of the restrictions contained in this
paragraph 8, the Company shall have the right, in its sole discretion, to
cease making any payments to Employee which otherwise may be required pursuant
to paragraph 6(b) above or the provision of benefits pursuant to
paragraph 6(h) above (except to the extent required by law); however, this
shall not affect the validity or enforceability of the covenants in paragraphs
8(a), 8(b) and 8(c) above, which shall remain in full force and
effect.

 

(g)                                 Employee
acknowledges that he is not eligible for the severance payments set forth in
paragraph 6(b) above under any other policy, plan, agreement or
practice and that the potential to receive these severance payments, in
addition to the Company’s continued employment of Employee and the Company’s
entering into this Agreement and agreeing to provide Employee certain rights
and benefits under this Agreement, constitutes adequate consideration for
Employee’s agreeing to be bound by the covenants contained in this
paragraph 8.

 

(h)                                 Employee
represents and warrants that the knowledge, skill and abilities he possesses at
the time of his execution of this Agreement are sufficient to

 

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permit him to earn a living during the restrictive
periods while honoring his commitments set forth in this Agreement.

 

9.               Prior
Agreements.  Employee represents to
the Company that:

 

(a)                                  There
are no restrictions, agreements or understandings whatsoever to which Employee
is a party which would prevent or make unlawful his execution of this Agreement
or his employment hereunder;

 

(b)                                 There
are no restrictions, agreements or understandings whatsoever to which Employee
is a party which place any limitations as to the companies or individuals with
whom he may do business;

 

(c)                                  His
execution of this Agreement and his employment hereunder shall not constitute a
breach of any contract, agreement or understanding, oral or written, to which
he is a party and by which he is bound; and

 

(d)                                 He
is free and able to execute this Agreement and to continue in the employment of
the Company.

 

10.         Miscellaneous.

 

(a)                                  Waiver.  The waiver by the Company of a breach of any
provision of this Agreement by Employee shall not operate or be construed as a
waiver of any subsequent breach by Employee. 
No waiver shall be valid, unless signed in writing by the Company’s
President and Chief Executive Officer.

 

(b)                                 Governing
Law; Jurisdiction and Venue; Jury Trial Waiver.

 

(i)                                     It
is the intent of the parties hereto that all questions with respect to the
construction of this Agreement and the rights and liabilities of the parties
hereunder shall be determined in accordance with the laws of the State of
Maryland, without regard to principles of conflicts of laws thereof that would
call for the application of the substantive law of any jurisdiction other than
the State of Maryland.

 

(ii)                                  Each
party irrevocably agrees for the exclusive benefit of the other that any and
all suits, actions or proceedings relating to this Agreement (collectively, “Proceedings”
and, individually, a “Proceeding”) 
shall be maintained in either the courts of the State of Maryland or the
federal District Courts sitting in Baltimore, Maryland (collectively, the “Chosen
Courts”) and that the Chosen Courts shall have exclusive jurisdiction to
hear and determine or settle any such Proceeding and that any such Proceedings
shall only be brought in the Chosen Courts. 
Each party irrevocably submits to the jurisdiction of the Chosen Courts
and waives any objection that he or it may have now or hereafter to the laying
of the venue of any Proceedings in the Chosen Courts and any claim that any
Proceedings have been brought in an inconvenient forum and further irrevocably
agrees that a judgment in any Proceeding brought in the Chosen

 

8

 

Courts shall be
conclusive and binding upon him or it and may be enforced in the courts of any
other jurisdiction.

 

(iii)                               EACH PARTY HERETO
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY
PROCEEDING, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE PARTIES
HERETO ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER AGREEMENT,
DOCUMENT OR INSTRUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR FOR ANY
COUNTERCLAIM THEREIN.  THE PARTIES HERETO
MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF
THEIR RIGHT TO TRIAL BY JURY.

 

(c)                                  Taxes.  Employee shall be responsible
for the payment of any and all required federal, state, local and foreign taxes
incurred, or to be incurred, in connection with any amounts payable, or
benefits provided, to Employee under this Agreement other than the employer’s
portion of FICA and Medicare taxes, which shall remain the responsibility of
the Company.  Notwithstanding any other
provision of this Agreement, the Company may withhold from amounts payable
under this Agreement all federal, state, local and foreign taxes that are required
to be withheld by applicable laws and regulations with respect to any amounts
payable, or benefits provided, to Employee under the Agreement and report on
any applicable federal, state, local or foreign tax reporting form any income
to Employee determined by the Company as resulting from such amounts payable or
benefits provided hereunder.

 

(d)                                 Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective heirs and successors.  The
Company may, with the written consent of the Employee, assign this Agreement to
any person or entity, including, but not limited to, any successor, parent,
subsidiary or affiliated entity of the Company, provided that Employee’s
consent shall not be required in the case of an assignment in connection with a
sale of the stock or substantially all the assets of the Company or a merger or
consolidation or similar transaction involving the Company, in which case this
Agreement may be assigned to the successor or surviving entity of such
transaction.  The Company also may assign
this Agreement in connection with any sale or merger (whether a sale or merger
of stock or assets or otherwise) of the Company or the business of the Company.
 Employee expressly consents to the
assignment of the covenants set forth in paragraph 8(c) above to any
new owner of the Company’s business or purchaser of the Company, provided that
the scope of the “Company’s business” (as such phrase is used in paragraph
8(c)) shall not be deemed broadened as a result of any such assignment.  The Company agrees not to assign this
Agreement to an entity with no assets.  Employee may not assign, pledge, or encumber
his interest in this Agreement, or any part thereof, without the written
consent of the Company.

 

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(e)                                  Provisions
Separable.  The provisions of this
Agreement are independent of and separable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact
that for any reason any other or others of them may be invalid or unenforceable
in whole or in part.

 

(f)                                    Entire
Agreement.  This Agreement contains
the entire understanding between the parties hereto with respect to the subject
matter hereof, and supersedes any and all prior and contemporaneous agreements
and understandings, inducements or conditions, express or implied, oral or
written.  The express terms hereof
control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. 
This Agreement may not be modified or amended other than by an agreement
in writing and signed by the Company’s President and Chief Executive Officer.

 

(g)                                 Paragraph Headings.  The paragraph headings in this Agreement
are for convenience only; they form no part of this Agreement and shall not
affect its interpretation.

 

(h)                                 Survival.  The covenants and requirements contained in
paragraphs 7 and 8 above shall survive and continue in full force and
effect in accordance with their terms notwithstanding the termination of this
Agreement and Employee’s employment for any reason.

 

(i)                                     Continuation of Employment. 
Unless the parties otherwise agree in writing, continuation of Employee’s
employment with the Company beyond the expiration of the Term shall be deemed
an employment at will and shall not be deemed to extend any of the provisions
of this Agreement, and Employee’s employment may thereafter be terminated “at
will” by Employee or the Company.

 

(j)                                     Compliance
with Section 409A.  If any
payments of money, delivery of shares of Company common stock or other benefits
due to Employee hereunder could cause the application of an accelerated or
additional tax under Section 409A of the Code, such payments, delivery of
shares or other benefits shall be deferred if deferral will make such payment,
delivery of shares or other benefits compliant under Section 409A of the
Code, otherwise such payment, delivery of shares or other benefits shall be
restructured, to the extent possible, in a manner, determined by the Company
and reasonably acceptable to the Employee, that does not cause such an
accelerated or additional tax.

 

(k)                                  Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be
an original as against any party whose signature appears thereon, and all of
which shall together constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the
parties execute and deliver this Agreement.

 

Date:                          ,
2005

 

	
   

  	
  WILLIAMS
  SCOTSMAN

  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Gerard E. Holthaus

  
	
   

  	
   

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WILLIAMS
  SCOTSMAN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name and Title]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  John B. Ross

  

 

11Exhibit 10.34

 

Williams
Scotsman International, Inc.

2005 Omnibus Award Plan

NONQUALIFIED STOCK OPTION
AGREEMENT

This NONQUALIFIED STOCK OPTION
AGREEMENT (the “Agreement”), dated as of __________, 200_ (the “Date
of Grant”), is made by and between Williams Scotsman International, Inc., a
Delaware corporation (the “Company”), and ____________ (the “Participant”).

R E C I T A L S:

WHEREAS, the Company has
adopted the Williams Scotsman International, Inc. 2005 Omnibus Award Plan (the “Plan”),
pursuant to which options may be granted to purchase shares of the Company’s Common
Stock; and

WHEREAS, the Compensation
Committee of the Board of Directors of the Company (the “Committee”) has
determined that it is in the best interests of the Company and its stockholders
to grant to the Participant a nonqualified stock option to purchase the number
of shares of the Company’s Common Stock provided for herein.

NOW, THEREFORE, for and
in consideration of the premises and the covenants of the parties contained in this
Agreement, and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto, for themselves, their successors
and assigns, hereby agree as follows:

1.             Grant of Option.

The
Company hereby grants on the Date of Grant to the Participant an option (the “Option”)
to purchase ___ shares of Common Stock (such shares of Common Stock, the “Option
Shares”), on the terms and conditions set forth in this Agreement and as
otherwise provided in the Plan.  The
Option is not intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code.  Fifty
percent (50%) of the Option Shares subject to the Option shall vest and become
exercisable in accordance with Section 3(c)(i) hereof (the “Service Portion”)
and the remaining fifty percent (50%) of the Option Shares subject to the
Option shall vest and become exercisable in accordance with Section 3(c)(ii)
hereof (the “Performance Portion”).

2.             Incorporation by Reference, Etc.

The
provisions of the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth
herein, this Agreement shall be construed in accordance with the provisions of
the Plan and any capitalized terms not otherwise 

 

defined
in this Agreement shall have the definitions set forth in the Plan.  The Committee shall have final authority to
interpret and construe the Plan and this Agreement and to make any and all
determinations under them, and its decision shall be binding and conclusive
upon the Participant and his legal representative in respect of any questions
arising under the Plan or this Agreement.

3.             Terms and Conditions.

                (a)           Option Price. 
The price at which the Participant shall be entitled to purchase the
Option Shares upon the exercise of all or any portion of the Option shall be $__________
per Option Share.

                (b)           Expiration Date. 
Subject to Section 3(d) hereof, the Option shall expire at the end of
the period commencing on the Date of Grant and ending at 11:59 p.m. Eastern Standard
Time on the day preceding the tenth anniversary of the Date of Grant (the “Option
Period”).

                (c)           Exercisability of the Option.

(i)            Service Portion.  Subject to the Participant’s continued
employment with the Company or an Affiliate and except as may otherwise be
provided herein, the Service Portion of the Option shall become vested and
exercisable as to twenty-five percent (25%) of the Option Shares subject
thereto on each of the first, second, third and fourth anniversaries of the
Date of Grant.

(ii)           Performance Portion.

(A)          General.  Subject to the Participant’s continued
employment with the Company or an Affiliate and except as may otherwise be
provided herein, the Performance Portion of the Option shall become vested and exercisable
as to twenty-five percent (25%) of the Option Shares subject thereto in respect
of each of the years ending on December 31, 2005, December 31, 2006, December
31, 2007 and December 31, 2008 if and only if  the Committee determines that the performance
goal with respect to each such year as set forth on Exhibit A attached
hereto (each, individually, a “Performance Goal” and collectively, the “Performance
Goals”), has been attained by the Company; provided, that such
Option Shares shall only become vested and exercisable on the “Determination
Date” (as defined below).  For purposes
of this Agreement, with respect to each applicable year, the “Determination
Date” shall mean the date on which the Committee determines that the Performance
Goal for such year has been attained by the Company for such year, which date
shall be no later than 30 days following the date on which the Company’s
audited financial statements with respect to such year are delivered to the
Board.  The period commencing on each
such December 31 and ending on the Determination Date shall hereinafter be
referred to as a “Stub Period.”

(B)           Catch-Up.  Notwithstanding the foregoing, subject to the
Participant’s continued employment with the Company or an Affiliate and except
as may otherwise be provided in Section 3(c)(iii) hereof, all remaining unvested
Option Shares subject to the

2

Performance Portion of
the Option shall vest and become exercisable on the Determination Date for the
year ended December 31, 2008 if and only if
the Company achieves the cumulative performance goal set forth on Exhibit A
attached hereto for such year (the “Cumulative Performance Goal”); provided,
that, if at least 90% but less than 100% of the Cumulative Performance Goal is
achieved, such unvested Option Shares shall vest and become exercisable as set
forth below:

	
  Percentage of Cumulative

  Performance Goal Achieved

  	
   

  	
  Percentage of Unvested Option

  Shares Subject to Performance

  Portion of Option Becoming

  Vested and Exercisable

  	
   

  
	
  at least 90.0 to 90.9

  	
   

  	
  50

  	
   

  
	
  91.0 to 91.9

  	
   

  	
  55

  	
   

  
	
  92.0 to 92.9

  	
   

  	
  60

  	
   

  
	
  93.0 to 93.9

  	
   

  	
  65

  	
   

  
	
  94.0 to 94.9

  	
   

  	
  70

  	
   

  
	
  95.0 to 95.9

  	
   

  	
  75

  	
   

  
	
  96.0 to 96.9

  	
   

  	
  80

  	
   

  
	
  97.0 to 97.9

  	
   

  	
  85

  	
   

  
	
  98.0 to 98.9

  	
   

  	
  90

  	
   

  
	
  99.0 to 99.9

  	
   

  	
  95

  	
   

  

(iii)          Change in Control.  Notwithstanding Section 3(c)(i) and Section
3(c)(ii) to the contrary, the unvested portion of the Option shall immediately
vest and become exercisable upon a termination of the Participant’s employment
by the Company without Cause (other than on account of death or Disability) or
by the Participant for Good Reason, in either case during the 12-month period
following a Change in Control.

(iv)          Method of Exercise.  The Option may be exercised only by written
notice, substantially in the form authorized for such purpose by the Committee
delivered in person or by mail in accordance with Section 6(a) hereof and
accompanied by payment therefor.  The
purchase price of the Option Shares shall be paid by the Participant to the
Company (A) in cash and/or shares of Common Stock valued at the Fair Market
Value at the time the Option is exercised (including by means of attestation of
ownership of a sufficient number of shares of Stock in lieu of actual delivery
of such shares to the Company); provided, that, if deemed necessary by
the

 

3

Company’s independent accounting firm in order to
avoid an accounting charge to earnings for compensation on account of the
exercise of the Option, such shares of Stock shall be Mature Shares, (B) in the
discretion of the Committee, in other property having a fair market value on
the date of exercise equal to the Option Price, (C) by delivering to the
Committee a copy of irrevocable instructions to a stockbroker to deliver
promptly to the Company an amount of loan proceeds, or proceeds from the sale
of the Option Shares, sufficient to pay the Option Price or (D) by such other
method as the Committee may allow in writing. 
Notwithstanding the foregoing, in no event shall a Participant be
permitted to exercise an Option in the manner described in clauses (B), (C) or
(D) of the preceding sentence if the Committee determines that exercising an
Option in such manner would violate the Sarbanes-Oxley Act of 2002, as amended,
or any other applicable law or the applicable rules and regulations of the
Securities and Exchange Commission or the applicable rules and regulations of
any securities exchange or inter dealer quotation system on which the
securities of the Company or any Affiliates are listed or traded.

                (d)           Effect of Termination of Employment on the Option.

(i)            Termination for Cause.  If the Participant’s employment with the
Company and its Affiliates is terminated by the Company or any Affiliate for
Cause, both the unvested and the vested portions of the Option shall terminate
on the date of such termination.

(ii)           Termination due to Death/Disability.  Subject to Section 3(d)(v) below, if the
Participant’s employment with the Company and its Affiliates terminates on
account of the Participant’s death or is terminated by the Company or any
Affiliate due to “Disability” (as defined below), the unvested portion of the
Option shall expire on the date of termination and the vested portion of the
Option shall remain exercisable by the Participant through the earlier of (A) the
expiration of the Option Period or (B) 12 months following the date of such termination
(or, in the case of that portion of the Performance Portion of the Option that
is scheduled to vest with respect to the year of termination only, 12 months
following the Determination Date for such year if such date occurs later than
the date of termination but prior to a Change in Control).  For purposes of this Agreement, “Disability”
shall mean “Disability” as defined in any employment agreement between
Participant and the Company or an Affiliate in effect at the time the existence
of Disability is to be determined, or, in the absence of such an employment
agreement, a condition entitling Participant to receive benefits under the
long-term disability plan of the Company or an Affiliate, as applicable, or, in
the absence of such a plan, Participant’s complete and permanent inability by
reason of illness or accident to perform the duties of the occupation at which
a Participant was employed or served when such illness or accident commenced,
as determined by the Committee based upon medical evidence acceptable to it.

(iii)          Termination by the Company without
Cause or by the Participant for Good Reason.  Subject to Section 3(d)(v) below, if the
Participant’s employment with the Company and its Affiliates is terminated by
the Company or any Affiliate without Cause or by the Participant for Good
Reason, the unvested portion of the Option shall expire on the date of
termination and the vested portion of the Option 

 

4

shall remain exercisable by the Participant through
the earlier of (A) the expiration of the Option Period or (B) 180 days following
the date of such termination (or, in the case of that portion of the
Performance Portion of the Option that is scheduled to vest with respect to the
year of termination only, 180 days following the Determination Date for such year
if such date occurs later than the date of termination but prior to a Change in
Control).

(iv)          Other Terminations.  If the Participant’s
employment with the Company and its Affiliates is terminated for any reason
other than those
described in clauses (i), (ii) and (iii) of this Section 3(d), the unvested portion of the Option shall
expire on the date of termination and the vested portion of the Option shall
remain exercisable by the Participant through the earlier of (A) the expiration
of the Option Period or (B) 90 days following the date of such termination (or,
in the case of that portion of the Performance Portion of the Option that is
scheduled to vest with respect to the year of termination only, 90 days
following the Determination Date for such year if such date occurs later than
the date of termination but prior to a Change in Control).

(v)           Treatment of Performance Portion.  Notwithstanding any other provision of
Section 3(d) to the contrary, if the Participant’s employment with the Company
and its Affiliates is terminated during a Stub Period prior to a Change in
Control (i) on account of the Participant’s death, (ii) by the Company or any
Affiliate without Cause or due to Disability, or (iii) by the Participant for
Good Reason and the Committee certifies on the Determination Date ending such
Stub Period that the applicable Performance Goal with respect to the year
ending immediately prior to such Stub Period has been attained (or, in the case
of a termination during the Stub Period commencing on December 31, 2008 only,
the Cumulative Performance Goal), the Participant shall be deemed vested in the
Option Shares subject to the Performance Portion of the Option that would have
vested had the Participant been employed on the last day of such Stub Period
and such Option Shares shall remain exercisable for the applicable period
specified in Section 3(d)(i) through (iv) hereof.

(e)           Compliance with Legal Requirements.  The granting and exercising of the Option,
and any other obligations of the Company under this Agreement shall be subject
to all applicable federal and state laws, rules and regulations and to such
approvals by any regulatory or governmental agency as may be required.  The Committee, in its sole discretion, may
postpone the issuance or delivery of Option Shares as the Committee may consider
appropriate and may require the Participant to make such representations and
furnish such information as it may consider appropriate in connection with the
issuance or delivery of Option Shares in compliance with applicable laws, rules
and regulations.

(f)            Transferability.  The Option shall not be transferable by the Participant
other than by will or the laws of descent and distribution.

(g)           Rights as Stockholder.  The Participant shall not be deemed for any
purpose to be the owner of any shares of Common Stock subject to this Option

 

5

unless,
until and to the extent that (i) this Option shall have been exercised pursuant
to its terms, (ii) the Company shall have issued and delivered to the Participant
the Option Shares, and (iii) the Participant’s name shall have been entered as
a stockholder of record with respect to such Option Shares on the books of the
Company.

                (h)           Tax Withholding. 
Prior to the delivery of a certificate or certificates representing the
Option Shares, the Participant must pay in the form of a certified check to the
Company any such additional amount as the Company determines that it is
required to withhold under applicable federal, state or local tax laws in
respect of the exercise or the transfer of Option Shares; provided that the
Committee may, in its sole discretion, allow such withholding obligation to be
satisfied by any other method described in Section 12(d) of the Plan.

4.             Miscellaneous.

                (a)           Notices.  All
notices, demands and other communications provided for or permitted hereunder
shall be made in writing and shall be by registered or certified first-class
mail, return receipt requested, telecopier, courier service or personal
delivery:

if to the Company:

 

Williams Scotsman
International, Inc.

8211 Town Center Drive

Baltimore,
Maryland 21236

Attention:
Secretary

if to the Participant, at the Participant’s last known address on file
with the Company.

All such notices,
demands and other communications shall be deemed to have been duly given when
delivered by hand, if personally delivered; when delivered by courier, if
delivered by commercial courier service; five business days after being
deposited in the mail, postage prepaid, if mailed; and when receipt is
mechanically acknowledged, if telecopied.

                (b)           Severability. 
The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, and each other provision of this Agreement shall be severable and
enforceable to the extent permitted by law.

                (c)           No Rights to Employment.  Nothing contained in this Agreement shall be
construed as giving the Participant any right to be retained, in any position,
as an employee, consultant or director of the Company or its Affiliates or
shall interfere with or restrict in any way the right of the Company or its
Affiliates, which are hereby expressly reserved, to remove, terminate or
discharge the Participant at any time for any reason whatsoever.

 

6

                (d)           Bound by Plan. 
By signing this Agreement, the Participant acknowledges that he has
received a copy of the Plan and has had an opportunity to review the Plan and
agrees to be bound by all the terms and provisions of the Plan.

                (e)           Beneficiary. 
The Participant may file with the Committee a written designation of a
beneficiary on such form as may be prescribed by the Committee and may, from
time to time, amend or revoke such designation. 
If no designated beneficiary survives the Participant, the executor or
administrator of the Participant’s estate shall be deemed to be the Participant’s
beneficiary.

                (f)            Successors. 
The terms of this Agreement shall be binding upon and inure to the
benefit of the Company and its successors and assigns, and of the Participant
and the beneficiaries, executors, administrators, heirs and successors of the
Participant.

                (g)           Entire Agreement. 
This Agreement and the Plan contain the entire agreement and
understanding of the parties hereto with respect to the subject matter
contained herein and supersede all prior communications, representations and
negotiations in respect thereto.  No
change, modification or waiver of any provision of this Agreement shall be
valid unless the same be in writing and signed by the parties hereto.  The Participant agrees and acknowledges that
this Agreement supersedes all prior stock option agreements between the
Participant and the Company, and that all such prior agreements are void and
unenforceable.

                (h)           Governing Law.  This Agreement shall be
construed and interpreted in accordance with the laws of the State of Maryland
without regard to principles of conflicts of law thereof, or principals of
conflicts of laws of any other jurisdiction which could cause the application
of the laws of any jurisdiction other than the State of Maryland.

                (i)            Headings. 
The headings of the Sections hereof are provided for convenience only
and are not to serve as a basis for interpretation or construction, and shall
not constitute a part, of this Agreement.

                (j)            Signature in Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

[Remainder of page intentionally
left blank; signature page to follow]

 

7

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

	
   

  	
  Williams
  Scotsman International, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [ Name of
  Participant]

  

 

 

 

[Signature
Page to Nonqualified Stock Option Agreement]

 

Exhibit A

 

Performance Goals

 

	
  Year Ending December 31

  	
   

  	
  EBITDA Goals

  	
   

  	
  Cap-X Goals

  	
   

  
	
  2005

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  
	
  2006

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
  2007

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
  2008

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
  Cumulative

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
							

 

                For
the purposes of this Agreement, the following terms shall have the meanings set
forth below:

“EBITDA” means the earnings
of the Company and its subsidiaries, determined on a consolidated basis, after
all expenses but before any interest, taxes, depreciation, amortization and
non-cash stock compensation expense; provided, however, that the
calculation of EBITDA, and the EBITDA Performance Goals and Cumulative
Performance Goal set forth above, shall be adjusted by the Committee to
reflect, to the extent not contemplated in the Company’s financial plan, the
following: acquisitions, divestitures, refinancings, any change required by
GAAP or other extraordinary and nonrecurring events that, in each case, the
Committee, acting in good faith, determines require adjustment of EBITDA to
fulfill the intended purposes of the Plan and this Option.  The intent of such adjustments is to keep the
probability of achieving the Performance Goals and Cumulative Performance Goal
the same as if the event triggering such adjustment had not occurred.  The Committee’s determination of such
necessary adjustment shall be made promptly following the completion or closing
of such event, and shall be based on the Company’s accounting as set forth in
its books and records and on the Company’s financial plan pursuant to which
such Performance Goals and Cumulative Performance Goal were originally
established, in each case taking into account any prior adjustments pursuant to
this Exhibit A.

“Cap-X” means (i) the
aggregate of all expenditures (excluding acquisitions and divestitures) that,
in conformity with GAAP, are or are required to be included in rental equipment
in the Company’s consolidated balance sheet less (ii) rental equipment sales as
reported in the Company’s consolidated financial statements.

                For
purposes of this Exhibit A, the EBITDA Performance Goals set forth above
have been established based on the Cap-X Goal set forth next to each such
Performance Goal.  If actual Cap-X is
greater than or less than the Cap-X Goal by five percent (5%) or more for any
particular year, the EBITDA Performance Goal for such year will be increased or
reduced by __% of such Cap-X difference, as applicable, and the EBITDA
Performance Goals for each subsequent year shall also be increased or reduced
by __% of such difference, as applicable. 
The EBITDA Cumulative Performance Goal shall also be appropriately
adjusted to reflect any changes to EBITDA Performance Goals made pursuant to
the immediately preceding sentence.

                All
determinations of EBITDA, Cap-X, Performance Goals, the Cumulative Performance
Goal, and any adjustments to any of the foregoing, shall be made by the

 

A-1

Committee acting in its sole
discretion and shall be final and binding on the Company, the Participant and
any other interested person.

 

 

 

A-2

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