Document:

Exhibit 10.4

 

	
  

  	
  IPSCO Inc.

  
	
  2005 Form 10-K

  
	
   

  

 

 

June     ,
2005

 

Personal and Confidential

 

INSERT NAME

INSERT TITLE

IPSCO Enterprises Inc.

650 Warrenville Road, Suite 500

Lisle, IL  60532

 

Re:                             Letter of Agreement to Defer 2006 Compensation

 

Dear                :

 

This letter and the
appended Election to Defer 2006 Compensation (the “Form”), when fully executed
as required, shall constitute the Agreement between IPSCO Enterprises Inc., its
successors and assigns (the “Company”) and you, regarding your Company
compensation, both current and deferred, for future services to be rendered
during the period indicated on the Form (the “Period of Service”). The Form is
to be completed on an annual basis.

 

The Company has
established on its books a deferred compensation account (the “Account”) on
your behalf. The Company shall credit to the Account the base salary and/or
bonus that you would otherwise have received for future services to be rendered
during the Period of Service but that you have elected to defer (the “Deferred
Compensation”). The Company shall credit such Deferred Compensation to your
Account on the date such compensation would otherwise have been payable to you.
Interest shall accrue and be credited to the Account at the higher of:

 

(a)          the
U.S. prime lending rate, being the annual rate of interest announced by the
Wells Fargo Bank (or any other bank as designated by the Company) from time to
time as being a reference rate then in effect for determining interest rates on
U.S. dollar commercial loans; or

 

(b)         the U.S.
90-day T-Bill, rate as published on the U.S. Yield Curve (U.S.Y.C.) screen on
Reuters;

 

as determined as of the
close of business (4:00 p.m. Eastern time) on the last business day of
each calendar quarter. Interest shall continue to be credited to your Account
while payments under this Agreement are being made.

 

 

 

 

The total amount credited
to your Account shall be paid to you pursuant to the terms of the completed Form if
payments are scheduled to commence while you are still employed by the Company.

 

Notwithstanding the
above, in the event of:

 

(a)           retirement at your Normal Retirement Age
(as defined in your pension plan);

 

(b)          retirement
due to disability;

 

(c)           retirement
before your Normal Retirement Age;

 

(d)          termination
of your employment with the Company and/or its subsidiaries for any reason,

 

the completed Form shall
be overridden and the balance of the Account shall be paid to you in
substantially equal installments over a sixty-month period, commencing on the
first day of the third month following such an occurrence.

 

Notwithstanding the
foregoing, you may request an earlier distribution of your Account in the
event you experience a “qualifying emergency”. The determination of whether you
have incurred a “qualifying emergency” and the extent thereof shall be
determined by the Company in its sole discretion.

 

In the event of your
death at any time subsequent to execution of this Agreement, the balance of the
Account with interest to the date of payment, shall be paid to the beneficiary(ies)
designated by you in the appended Form, or in the absence of such designation,
to your estate, in one lump sum within one year of the date of your death, or
on an accelerated basis as the Company sees fit.

 

Finally, it is understood
that base salary before deferral forms the basis upon which the various
benefits provided by the Company to you are calculated (except for the 401(k)
plan which is based upon your total compensation reduced by Deferred
Compensation).

 

2

 

Please indicate your
acceptance of the terms of this Agreement by signing in the signature space
provided below and by completing the appended Form.

 

	
  IPSCO
  ENTERPRISES INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Per:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed:  INSERT NAME

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Accepted by:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Dated
  this          day of June ,2005.

  
	
  Signed:  INSERT NAME

  	
   

  	
   

  	
   

  

 

3Exhibit 10.5

 

IPSCO Inc.

2005 Form 10-K

 

 

IPSCO ENTERPRISES INC.

U.S. SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

 

(As Amended and Restated Effective as of January 1,
2005)

 

 

This Supplemental Executive Retirement Plan is executed by IPSCO Inc.
on behalf of IPSCO Enterprises Inc., a Delaware corporation having its
principal place of business in Illinois.

 

Section 1. Definitions.

 

Whenever used herein, unless the context clearly indicates otherwise,
the following words and phrases shall have the meanings herein specified, and
the following definitions shall be equally applicable to both the singular and
plural forms of any of the terms herein defined.  The masculine pronoun whenever used herein
shall include the plural, and the plural the singular, unless the context
clearly indicates a different meaning.

 

1.01         “Accrual
Period” means the number of years (including fractions for completed months)
from the date of commencement of the Participant’s Continuous Service to his
Normal Retirement Date.

 

1.02         “Actuarial
Equivalent” means a benefit of equivalent value based on the 1994 Group Annuity
Mortality Table for males and the Moody’s Aa long-term corporate bond yield as
of the December 31 preceding the year in which payment is made, rounded up
to the nearest 0.25%.

 

1.03         “Beneficiary”
means the spouse of the Participant, unless a different Beneficiary has been
designated by the Participant.

 

1.04         “Board
of Directors” or “Board” means the Board of Directors, however constituted, of
the Company.

 

1.05         “Canadian
Pension Benefit” means the Actuarial Equivalent of the benefit the Participant
has accrued under one or more Canadian pension arrangements, including but not
limited to (i) the Pension Plan for Executives of IPSCO Inc., (ii) the
Pension Plan for U.S. Expatriates of IPSCO Inc., (iii) the IPSCO Inc.
Canadian Supplemental Retirement Benefit Plan, and (iv) any individual
Canadian pension arrangement maintained for the Participant.

 

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

 

1.07         “Company”
means IPSCO Inc. and any subsidiary, affiliated and associated company or
companies as may be designated by the Board from time to time, except that
reference in the Plan to any action to be taken, consent, approval, or opinion
to be given or decision to be made shall refer to IPSCO Inc. acting through its

 

1

 

Board of Directors or any person or persons authorized by the Board of
Directors for the purposes of the Plan.

 

1.08         “Continuous
Service” means the period of uninterrupted active service rendered on a
regular, permanent, full-time basis by the Participant to the Company from his
date of employment to the date of his termination of service, death, or
retirement, whichever occurs first.

 

1.09         Continuous
Service shall not be broken by:

 

1.)            Any
leave of absence of the Participant from his duties for which he receives
regular remuneration from the Company or periods of sabbatical leaves and
educational leaves of absence with the consent of the Company.

 

2.)            Any
sick or accident leave of the Participant from his duties authorized by the
Company.

 

1.09         “Earnings”
means the “Compensation” for the calendar year (prorated for partial years) as
defined under the IPSCO Enterprises Inc. Retirement Savings and Profit Sharing
Plan but without adjustment for the maximum Compensation limit under Section 401(a)(17)
of the Code, plus any amounts deferred in that year by the Participant under a
deferred compensation arrangement maintained by the Company.  Any non-US compensation shall be treated as
US-source compensation for purposes of the Plan.

 

Notwithstanding the foregoing, unless the plan specifically provides
otherwise, Earnings are limited to $160,000 (US) per year (pro-rated for
partial years) (the “Earnings Limit”) for a Participant whose Termination Date
occurs prior to age 60.  For a
Participant whose Termination Date is on or after age 60, Earnings shall not be
limited by the Earnings Limit.

 

1.10         “Effective
Date” means January 1, 2005, the date the provisions of the Plan take
effect.

 

1.11         “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

2

 

1.12         “401(k)
Shadow Account” means the accumulated value of the account established on the
Company’s books equal to the sum of (1) plus (2) where:

 

1.)            is
the value of the Participant’s 401(k) Shadow Account as of December 31,
2004; and

 

2.)            is
5% of the Participant’s Earnings in excess of the Code Section 401(a)(17)
limit, as indexed, (determined without regard to the Earnings Limit) for each
complete and partial calendar year of Continuous Service beginning with the
Effective Date and ending on the Termination Date.

 

The 401(k) Shadow Account shall be credited with contributions as of
the end of each calendar year or the Participant’s Termination Date, as
applicable.  Amounts credited to the
401(k) Shadow Account shall be credited with interest equal to the same rate
used under the IPSCO Deferred Compensation Plan.

 

1.13         “Final
Earnings” means, unless otherwise specified in an appendix the average annual
Earnings of the Participant during the three consecutive calendar years of his
Continuous Service in which his Earnings were highest, and shall mean the
average annual Earnings during his actual period of Continuous Service if such
service is less than three calendar years.

 

1.14         “Participant”
means an individual or group executive identified in the discretion of the
Company and referenced in an attached appendix.

 

1.15         “Plan”
means the IPSCO Enterprises Inc. U.S. Supplemental Executive Retirement Plan as
set forth herein and as amended from time to time.

 

1.16         “Savings
Plan Benefit” means the annuity equivalent of the benefit the Participant has
accrued under the IPSCO Enterprises Inc. Retirement Savings and Profit Sharing
Plan (the “Savings Plan”) on account of Company matching contributions for each
year he is eligible to participate in the Savings Plan.  For this purpose, Company matching
contributions shall include:

 

1.)            the
full amount of matching contributions that would have been made to the account
of the Participant under the Savings Plan, assuming that such Participant each
year contributed the maximum amount of elective deferral

 

3

 

contributions permitted thereunder with respect to such year, and

 

2.)            the
amount of earnings paid thereon, or which would have been paid thereon
(assuming a fair and reasonable rate of interest selected by the Company) had
the maximum amount of elective deferral contributions been made by such
Participant.

 

The terms “elective deferral contributions” and “matching contributions”
shall have the meanings given such terms under the Savings Plan.  For purposes of the Plan, “Discretionary
Contributions” (as defined in the Savings Plan) shall not be considered “matching
contributions” under this Section 1.16.

 

1.17         “Termination
Date” means the date the Participant’s Continuous Service with the Company ends
for any reason.

 

Section 2.  Purpose and Intent.

 

The Company has established the Plan for the purpose of providing
pension supplements to senior executives and certain group executives which,
when combined with other employment related benefits, will provide for the
aggregate level of retirement benefits specified herein.  The Plan is intended to be “a plan which is
unfunded and maintained by an employer primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated
employees” within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of
ERISA, and shall be interpreted and administered in a manner consistent
therewith.

 

The Plan as amended and restated herein is a continuation of the Plan
in effect immediately prior to the Effective Date.  Any benefit payable to a Participant whose
Termination Date or death occurred prior to the Effective Date shall be
governed by the terms as in effect at the time of the Participant’s Termination
Date or death.  The Plan as amended and
restated herein is intended to comply with Code Section 409A.

 

Section 3.  Participation. 

 

The Participants in the Plan are referenced in the attached appendices.

 

Section 4.  Administration.

 

The Plan shall be administered by the Company.  The Company shall have the authority to
interpret the provisions of the Plan and decide all questions and settle all
disputes that may arise in connection with the Plan, all in the

 

4

 

sole exercise of its reasonable discretion.  The Company may establish operative and
administrative rules and procedures in connection therewith, provided that
such procedures and rules are consistent with the requirements of section 503
of ERISA.  All interpretations,
decisions, and determinations reasonably made by the Company shall be final,
conclusive, and binding on all persons concerned.

 

Section 5.  Retirement Dates.

 

(a)           Normal Retirement
Date

 

The Participant’s normal retirement date shall be the first day of the
month coincident with or next following his attainment of age 62, unless
otherwise specified in an appendix.

 

(b)           Early Retirement
Date

 

The Participant may elect to retire on an early retirement date, which
shall be the first day of any month following his attainment of age 55.

 

(c)           Deferred Retirement
Date

 

The Participant may postpone his retirement to a deferred retirement
date, which shall be the first day of any month subsequent to his normal
retirement date and prior to his 71st birthday.  If the Participant elects to postpone his
retirement, he shall continue to earn benefits in accordance with the terms and
provisions of the Plan while he remains in the active employment of the
Company.

 

Section 6.  Benefits at Normal or Deferred Retirement
Date.

 

(a)           Amount of Benefit

 

The annual retirement benefit payable in equal monthly installments
commencing at the Participant’s normal or deferred retirement date shall equal:

 

(i)            2%
of his Final Earnings multiplied by
his years of Continuous Service (including fractions for completed months)

 

reduced, but not
below zero by:

 

(ii)             the
Participant’s Savings Plan Benefit; and

 

(iii)            the
annuity equivalent of the value of his 401(k) Shadow Account; and

 

5

 

(iv)           the
Participant’s Canadian Pension Benefit; and

 

(v)            any
other applicable offsets as specified in an appendix.

 

(b)           Normal Form of
Benefit

 

Unless otherwise specified in an appendix, the annual retirement
benefit described in Section 6(a) shall be paid monthly as a life
annuity with one hundred and eighty (180) payments guaranteed (the “Normal
Annuity Benefit”) commencing on the last day of the month in which the
Participant retires and continuing throughout the Participant’s lifetime with
the guarantee that not less than one hundred and eighty (180) monthly payments
shall be made to the Participant and his Beneficiary or at the election of the
Participant an annuity benefit actuarially equivalent to the Normal Annuity
Benefit

 

Notwithstanding the foregoing, the total amount credited to the
Participant’s 401(k) Shadow Account shall be paid as a lump sum in the calendar
year in which the Participant retires.

 

Section 7.  Benefits at Early Retirement Date.

 

(a)           Amount of Benefit

 

If the Participant retires on an early
retirement date in accordance with Section 5(b), unless otherwise
specified in an appendix, he shall receive a retirement benefit payable in
equal monthly installments commencing on his early retirement date equal to:

 

[A/B x (C x (1-D) – E)]-F

 

where

 

	
  A

  	
   

  	
  =

  	
   

  	
  the Participant’s Continuous Service at his Termination Date(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  =

  	
   

  	
  the Participant’s Accrual Period

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  =

  	
   

  	
  the Participant’s annual retirement benefit determined pursuant to
  Section 6(a) but without regard to Sections 6(a)(ii), (iii),
  (iv) and (v)

  

 

(1) Removed “lesser of”
calculation because it appears moot.

 

6

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  =

  	
   

  	
  the Early Retirement Reduction Factor (as defined in
  Section 7(b))

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E

  	
   

  	
  =

  	
   

  	
  the Participant’s Savings Plan Benefit and the annuity equivalent of
  the 401(k) Shadow Account

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F

  	
   

  	
  =

  	
   

  	
  the Participant’s Canadian Pension Benefit and any other applicable
  offsets as specified in an appendix

  

 

(b)           When Benefits are
Payable

 

The annual retirement benefit determined pursuant to Section 7(a) shall
be payable at the Participant’s early retirement date.  If the Participant’s annual normal retirement
benefit is payable at an early retirement date in accordance with Section 5(b),
the annual retirement benefit determined in Section 7(a) shall
reflect a reduction of 0.3% for each complete month the Participant’s early
retirement date precedes age 60, unless otherwise specified in an appendix.

 

Notwithstanding the foregoing, the total amount credited to the
Participant’s 401(k) Shadow Account shall be paid as a lump sum in the calendar
year in which the Participant retires.

 

Section 8.  Benefits on Termination of Service Before
Early Retirement Date.

 

(a)           Amount
of Benefit 

 

If a Participant’s
Termination Date occurs before he reaches his Early Retirement Date, the annual
retirement benefit payable in equal monthly installments the Participant shall
be entitled to at his Normal Retirement Date, unless otherwise specified in an
appendix, shall equal:

 

[A/B x (C-E)]-F

 

where

 

	
  A

  	
   

  	
  =

  	
   

  	
  the Participant’s Continuous Service at his
  Termination Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  =

  	
   

  	
  the
  Participant’s Accrual Period

  

 

7

 

	
  C

  	
   

  	
  =

  	
   

  	
  the benefit determined under
  Section 6(a) but without regard to Sections
  6(a)(ii),(iii),(iv) and (v)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E

  	
   

  	
  =

  	
   

  	
  the Participant’s Savings Plan Benefit and
  the annuity equivalent of the 401(k) Shadow Account

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F

  	
   

  	
  =

  	
   

  	
  the Participant’s Canadian Pension Benefit
  and any other applicable offsets as specified in an appendix

  

 

(b)           When
Benefits are Payable

 

The annual retirement benefit determined pursuant to Section 8
shall be payable at the Participant’s Normal Retirement Date. Notwithstanding
the foregoing, if the Participant’s annual normal retirement benefit is payable
at an Early Retirement Date in accordance with Section 5(b), the annual
retirement benefit determined in Section 8 shall be reduced in accordance
with Section 7(b).

 

Notwithstanding the foregoing, the total amount credited to the
Participant’s 401(k) Shadow Account shall be paid as a lump sum in the calendar
year in which the Participant terminated employment.

 

Section 9.  Change in Control Benefits. 

 

Notwithstanding any provision of the Plan to the contrary, in the event
of an Involuntary Termination of a Participant’s employment within twenty-four
(24) months following a Change in Control, the following shall apply:

 

(a)           Earnings

 

Earnings shall be determined without regard to the Earnings Limit.

 

(b)           Amount
and Form of Benefit

 

The annual retirement benefit payable in equal monthly installments
shall be determined under Section 6(a) of the Plan and payable in
such form as provided in Section 6(b) of the Plan. Benefit payments
shall commence upon the Participant’s Involuntary Termination and shall not be
reduced due to benefit payments commencing prior to the Participant attaining
any

 

8

 

specified age and any benefits paid to a Participant prior to the
Participant’s Early Retirement Date as a result of this paragraph will be paid
to the Participant with a reduction based on the discounted value of the
receipt of the benefit prior to the Early Retirement Date.

 

(c)           Funding

 

Upon a Participant’s Involuntary Termination, the Company shall fund
through the IPSCO Enterprises Inc. Executive Compensation Trust (or a similar
grantor trust arrangement) an actuarially determined amount sufficient to
satisfy the benefit obligations to the Participant under the Plan.

 

(d)           “Change
in Control”

 

A “Change in Control” means the occurrence of any of the following
events:

 

(i)            any
change, either through the issue, transfer, acquisition, conversion, exchange
or otherwise of shares, or through amalgamation, arrangement, merger or
otherwise (the “Transaction”), as a result of which the Company ceases to exist
as a separate legal entity and the beneficial shareholders of the Company immediately
before such change (not including any other party to the Transaction or any
such beneficial shareholder who was also a shareholder in such other party
before the Transaction) hold less that 50% of the shares or other securities of
the entity resulting from the change entitled to vote generally in the election
of the directors of the entity;

 

(ii)           any
change, either direct or indirect, in the beneficial ownership of common shares
as a result of which a Person or a group of Persons acting jointly or in
concert at arm’s length to the Company, either individually or together with
its or their associates and affiliates, beneficially owns more than 20% of all
of the common shares of the Company.  For
purposes of this clause (ii), the terms “associate”, “affiliate” and “beneficial
ownership” shall have the same respective meanings as in the Securities Act
(Ontario) as may be amended from time to time;

 

(iii)          The
consummation of any transaction, whether by way of reorganization,
consolidation, arrangement, liquidation, transfer, exchange, sale or otherwise,
whereby a Person or

 

9

 

a group of Persons acting jointly or in concert at arm’s length to the
Company, either individually or together with its or their affiliates, acquires
legal or beneficial ownership of all or substantially all of the assets of the
Company, other than in a transaction that would result in:

 

(A)          the
holders of common shares of the Company immediately prior to the completion of
such transaction (not including any such Person or any owner of such Person)
continuing to own more than 50% of the voting shares of the surviving entity
outstanding immediately following the completion of such transaction; and

 

(B)           a
majority of the members of the board of directors of the surviving entity
having been members of the board of directors of the Company immediately prior
to the completion of such transaction; or

 

(iv)          the
replacement by way of election at any one time, or the appointment at any one
or a series of related times, of more than one-half of the members of the
Board, if the election or appointment of such replacement directors has not
been approved by a majority of the members of the Board in office immediately
before such replacement.

 

If the Participant is employed by IPSCO Enterprises Inc., or a
successor subsidiary of the Employee in the United States, “Company” for
purposes of this definition of “Change in Control” shall mean either IPSCO Inc.
or such United States Subsidiary.  In no
event will a Change in Control be deemed to have occurred with respect to the
Participant, if an employee benefit plan maintained by the Company or the
Participant is part of a purchasing group that consummates the Change in
Control transaction.  The employee benefit
plan or the Participant will be deemed “part of a purchasing group” for
purposes of the preceding sentence if the plan or the Participant is an equity
participant in the purchasing company or group, but not including:  (i) passive ownership of less than two
percent (2%) of the stock of the purchasing company; or (ii) ownership of
equity participation in the purchasing company or group that is otherwise not
significant, as determined prior to the Change in Control by a majority of the
non-employee continuing directors.

 

10

 

(e)           “Involuntary
Termination”

 

An “Involuntary Termination” means:

 

(i)            any
termination by the Company of the Participant’s employment following any Change
in Control, which is not due to:

 

(A)          the
death of the Participant;

 

(B)           the
Participant’s normal retirement pursuant to the normal retirement policies of
the Employer;

 

(C)           a
condition of total and continuing disability which renders the Participant
incapable of performing his essential job duties and functions for a period of
six (6) months; or

 

(D)          Cause.

 

(ii)           the
resignation of the Participant from his employment with the Company within 60
days of the occurrence of any of the following events:

 

(A)          any
requirement by the Company following any Change in Control that the Participant’s
position is based and principal office located outside a 40-mile radius from
the Participant’s principal office immediately prior to the Change in Control;

 

(B)           any
material reduction in the Participant’s position, reporting relationship,
overall responsibilities or authority from that in effect immediately prior to
any Change in Control, or immediately prior to any reduction thereto made in
contemplation of the Change in Control;

 

(C)           any
material reduction in Participant’s overall cash compensation (annual base
salary plus target bonus opportunity) paid to him by the Company as in effect
immediately prior to any Change in Control or as such overall remuneration may
have been subsequently increased from time to time; or

 

11

 

(D)          any
termination or material reduction in value of the Participant’s benefit
programs, including, but not limited to, any pension plan, stock option plan,
investment plan, savings plan, incentive compensation plan or life insurance,
medical plans or disability plans provided by the Company to the Participant
and in which the Participant is participating under which the Participant is
covered, all as in effect immediately prior to any Change in Control or as such
benefit programs may have been subsequently increased from time to time, which
has not been replaced by benefit programs of any other person which the
Participant with equivalent benefits and value under equivalent terms and conditions
as were provided by the benefit programs in effect immediately prior to the
Change in Control and which are not accepted by the Participant.

 

(f)            “Cause”
means:

 

(i)            the
Willful failure of the Participant to carry out the Participant’s reasonable and
lawful duties, responsibilities or tasks after written notice to the
Participant from the Company of the Willful failure to do so and after giving
the Participant the opportunity to correct the same within a reasonable time
from the date of receipt of such written notice from the Company, or

 

(ii)           Willful
gross misconduct, gross negligence, the commission of a criminal act, theft,
fraud or dishonestly by the Participant involving the property or affairs of
the Company or the carrying out of the Participant’s duties, responsibilities
and tasks; or

 

(iii)          Willful
engagement in conduct that is demonstrably and materially injurious to the
Company, monetarily or otherwise.

 

(g)           “Person”
shall include individuals, partnerships, associations, trusts, unincorporated
organizations and corporations.

 

(h)           “Willful”
means any act done or omitted to be done by the Participant intentionally and
without reasonable belief that such act or omission was in the best interest of
the Company.

 

12

 

(i)            Notwithstanding
the foregoing, a Participant who is involuntarily terminated without Cause
within 6 months of a Change in Control at the request or direction of a Person
that ultimately participates in the Change in Control shall be deemed to have
incurred an Involuntary Termination after a Change in Control, and the benefits
provided under this Plan shall be adjusted accordingly.

 

Section 10.  Distributions to Key Employees.

 

Notwithstanding any provision of the Plan to the contrary, in the case
of any Participant who is a key employee (as defined in Code Section 416(i) without
regard to paragraph (5) thereof), distributions may not commence until the
earlier of six (6) months after the date of the Participant’s Termination
Date or the Participant’s death. 
Notwithstanding the foregoing sentence, the Participant’s annual
retirement benefit shall continue to be calculated under the Plan (and reduced,
as applicable, in accordance with Sections 7(b) and 9) based upon the date
the Participant terminated employment. 
The first monthly payment made to the Participant will consist of a (i) a
lump sum equal to the Participant’s 401(k) Shadow Account (credited with
interest to the date of distribution), (ii) that month’s regularly
scheduled installment distribution, and (iii) any month’s regularly
scheduled installment distribution that would have been paid to the Participant
previously but for this Section 10.

 

Section 11.  Death Benefits. 

 

(a)           Death
Before Retirement.  If the
Participant dies before payment of his annual retirement benefit has commenced,
his Beneficiary shall receive the actuarial present value of the participant’s
accrued benefit net of the offsets defined herein.  In addition, any unpaid balance of the
Participant’s 401(k) Shadow Account, plus interest to the date of payment shall
be paid to the Participant’s beneficiary, designated under the IPSCO
Enterprises Inc. Retirement Savings and Profit Sharing Plan.  Other benefits may be payable as defined in
an appendix.

 

(b)           Death
After Retirement.  If the Participant
dies after payment of his annual retirement benefit has commenced, his
Beneficiary shall receive the survivor benefit inherent in the form of payment
provided to the Participant. Other benefits may be payable as defined in an
appendix.

 

13

 

Section 12.  Forms of Payment.

 

Unless otherwise specified in an appendix, the annual retirement
benefit payable under the Plan shall be paid in the form of a life annuity with
one hundred and eighty (180) payments guaranteed as described in Section 6(b).  Notwithstanding the foregoing, the
Participant may, prior to December 31, 2006 (or such later date permitted
under Code Section 409A) or, if later, within thirty (30) days of first
becoming a Participant in the Plan, request payment of his annual retirement
benefit in an alternative form of payment, such as a lump sum, that is the
Actuarial Equivalent in value to the normal form of benefit.  Moreover, notwithstanding the foregoing, the total
amount credited to the Participant’s 401(k) Shadow Account shall be paid as a
lump sum.

 

Section 13.  Currency Conversion.

 

The final determination of the amount of any benefit payable under the
Plan shall be made in United States currency. 
All conversions of the amount of the benefit payable from Canadian
currency to United States currency shall be based on the most recent CANSIM
series B3400, or its successor, rounded to the nearest 0.1-cent.

 

Notwithstanding
the foregoing, in the event that a higher benefit payable shall result from
using the average conversion rate in the twelve (12) month period preceding the
determination date, then such conversion rate yielding such higher benefit
payable shall be used.  The conversion at
payment shall be based on the most recent CANSIM rate.

 

Section 14.  Nature of Claim for Payments.

 

Except as otherwise provided in the Plan, the Company shall not be
required to set aside or segregate any assets of any kind to meet its
obligations hereunder.  The Participant shall
have no right on account of the Plan in, or any specific assets of, the
Company.  Any right to any payment the
Participant may have on account of the Plan shall be that of a general,
unsecured creditor of the Company.

 

The obligation of the Company to pay benefits under the Plan shall be
binding upon its successors, assigns, whether by merger, consolidation, or
acquisition of all or substantially all of its business assets.

 

Notwithstanding the foregoing, the Company may fund a portion of the
benefit payable under the Plan through the IPSCO Enterprises Inc. Executive
Compensation Trust.  Assets in such trust
shall at all times remain subject to the claims of the Company’s creditors.

 

14

 

Section 15.  No Assignment or Alienation.

 

The interest hereunder of the Participant or Beneficiary shall not be
alienable by the Participant or Beneficiary by assignment or any other method
and shall not be subject to, or be taken by, his creditors by any process
whatsoever, and any attempt to cause such interest to be so subjected shall not
be recognized, except to such extent required by law.

 

Section 16.  No Contract of Employment.

 

The
Plan shall not be deemed to constitute a contract of employment between the
Company and the Participant, or to be consideration for the employment of the
Participant.  Neither the action of the
Company in establishing the Plan nor any action taken by the Company under the
provisions hereof, nor any provision of the Plan, shall be construed as giving
to the Participant the right to be retained in its employ or any right to any
payment whatsoever except to the extent of the benefits provided for by the
Plan.  The Company expressly reserves its
right at any time to dismiss the Participant without liability for any claim
against the Company for any payment whatsoever, except to the extent provided
for in the Plan. Notwithstanding the immediately preceding sentence, the
Company shall not pay out to the Participant any benefits provided under this
Plan in the event that the Participant is terminated for Cause as such term is
defined in Section 9 hereunder.

 

Section 17.  Amendment.

 

The Plan may be altered, amended, or revoked in writing by the Company
at any time, but such action may not reduce the Company’s obligation with
respect to the Participant below the amount to which he would be entitled under
the Plan as in effect immediately prior to such alteration, amendment, or
revocation.  Except as may be permitted
under Code Section 409A, no alteration, amendment or revocation of the
Plan shall directly or indirectly accelerate a distribution to any Participant
and the Company’s obligation to the Participant shall continue until the
obligation lapses in accordance with the terms of the Plan immediately prior to
such alteration, amendment or revocation.

 

Section 18.  Claims Procedure.

 

In the event a
Participant’s claim for benefits under the Plan is denied in whole or in part
by the Company, the Company will notify the Participant (or Beneficiary) of the
denial.  Such notification will be made
in writing, within 90 days of the date the claim is received by the
Company.  The notification will include: (i) the
specific reasons for the denial; (ii) specific reference to

 

15

 

the Plan provisions upon
which the denial is based; (iii) a description of any additional
information necessary for the claimant to perfect the claim and an explanation
of why such material or information is necessary; and (iv) an explanation
of the applicable review procedures.

 

The Participant has 90 days from the date he or she receives notice of
a claim denial to file a written request for review of the denial with the
Company.  The Company will review the
claim denial and inform the Participant (or Beneficiary) in writing of its
decision within 60 days of the date the claim review request is received by the
Company, unless special circumstances require an extension of time, in which
case, a decision shall be rendered not later than 120 days after the receipt of
a request for review. Such decision shall be final and binding on the claimant.

 

Section 19.  Governing Law.

 

The Plan shall be governed and construed in accordance with the laws of
the State of Illinois except to the extent preempted by federal law.

 

IN WITNESS WHEREOF,
the Company, by its duly authorized officer, has caused the Plan to be executed
this 9th  day of November,
2005.

 

 

	
  (CORPORATE SEAL)

  	
  IPSCO INC.

  
	
   

  	
  (acting for and on behalf of IPSCO Enterprises Inc.)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
  By:
  

  	
  /s/
  Raymond J. Rarey

  
	
   

  	
   

  	
  Raymond J. Rarey

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Leslie T. Lederer

  	
   

  	
  Its:

  	
  Vice President & Chief Human

  
	
   

  	
  Leslie T. Lederer

  	
   

  	
  Resources Officer

  
					

 

16

 

Appendix A

 

For Group Executives and
U.S. Expatriates

 

The terms of the Plan as applicable to participants of the Pension Plan
for Executives of IPSCO Inc. (“Group Executives”) are as set forth herein.

 

1.             401(k) Shadow Account – Group
Executives and U.S. Expatriates are not eligible for a 401(k) Shadow Account.

 

2.             Final Earnings – For Group Executives
and U.S. Expatriates, the final earnings means the average annual Earnings of
the Participant during the five consecutive calendar years of Continuous
Service in which Earnings were highest, and shall mean the average annual
Earnings during the actual period of Continuous Service if such service is less
than five calendar years.  For all
purposes of this Appendix A, and without regard to any provision of the Plan to
the contrary, a Participant’s Earnings shall not include any portion of
compensation attributable to a bonus.

 

3.             Participant – Participants of the
Pension Plan for Executives of IPSCO Inc. are eligible to participate in this
plan by virtue of performing service in the United States.  For the purpose of this section, U.S.
Expatriate means a citizen of the United States of America who, for the
purposes of the pension arrangements at the Company, has been designated as an
executive, and thus would have qualified for membership in the Pension Plan for
Executives of IPSCO Inc.

 

4.             Normal Retirement Date – The
Participant’s normal retirement date shall be the first day of the month
coincident with or next following his attainment of age 65.

 

5.             Pensionable Service – With respect to
Final Earnings as defined in this Appendix, an additional reduction in the
Final Earnings will be computed for Participants under this Appendix for such
Participant’s Continuous Service with the Company while in the U.S. (“U.S.
Pensionable Service”). The offset will be computed for each complete month of
Pensionable Service by the following factor:

 

$5,000 + 0.5 (monthly salary - $5,000)

Monthly salary

 

 

6.             Normal Form of Benefit – For
purposes of Sections 6(b) and 10, the annual retirement benefit described
in Section 6(a) shall be paid monthly as a life annuity, with 60% of
the monthly annuity continuing to the spouse after the participant’s death if
the participant is married at the time payments commence.

 

7.             Benefits at Early Retirement Date – For
purposes of Section 7(b), the annual normal retirement benefit payable at
an early retirement date shall reflect a reduction of 0.3% for each complete
month the Participant’s early retirement date precedes age 65.  The reduction will not apply if the
participant has 30 years of service or is age 62 with at least 10 years of
service.

 

 

Appendix B

 

For Vicki Avril

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
Vicki Avril is May 12, 2004.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to Vicki Avril, SSN XXX-XX-XXXX.

 

3.             Continuous Service  – With respect to Section 1.08
of the Plan, Continuous Service for Vicki Avril begins on May 12, 2004.

 

 

Appendix C

 

For David Britten

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
David Britten is January 1, 2004.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to David Britten, SSN XXX-XX-XXXX.

 

3.             Continuous Service – With respect to Section 1.08
of the Plan, Continuous Service for David Britten begins on June 17, 1985.

 

 

Appendix D

 

For Greg Maindonald

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
Greg Maindonald is January 1, 2004.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to Greg Maindonald, SSN XXX-XX-XXXX.

 

3.             Continuous Service – With respect to Section 1.08
of the Plan, Continuous Service for Greg Maindonald begins on November 28, 1974.

 

 

Appendix E

 

For Raymond Rarey

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
Raymond Rarey is January 1, 2004.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to Raymond Rarey, SSN XXX-XX-XXXX.

 

3.             Continuous Service – With respect to Section 1.08
of the Plan, Continuous Service for Raymond Rarey begins on January 1,
2000.

 

17

 

Appendix F

 

For Les Lederer

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
Les Lederer is March 1, 2005.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to Les Lederer, SSN XXX-XX-XXXX.

 

3.             Continuous Service – With respect to Section 1.08
of the Plan, Continuous Service for Les Lederer begins on March 1, 2005.

 

 

Appendix G

 

For Joseph Russo

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
Joseph Russo is January 1, 1997. In addition, the Company shall
credit, as of January 1, 1997, an amount of $19,443.11 (USD) to the 401(k)
Shadow Account.  This amount adjusts the
accumulated value of the 401(k) Shadow Account as of January 1, 1997 to
the value it would have attained had the provisions for this account been in
effect for all prior years in which Deferral Agreements between Joseph Russo
and the Company were in effect.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to Joseph Russo, SSN XXX-XX-XXXX.

 

3.             Continuous Service – With respect to Section 1.08
of the Plan, Continuous Service for Joseph Russo begins on May 1, 1983.

 

 

Appendix H

 

For David Sutherland

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
David Sutherland is January 1, 2004.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to David Sutherland, SSN XXX-XX-XXXX.

 

3.             Continuous Service – With respect to Section 1.08
of the Plan, Continuous Service for David Sutherland begins on October 17,
1977.

 

 

Appendix I

 

For John Tulloch

 

The terms of the Plan as applicable to the
named Participant are as set forth herein.

 

1.             401(k) Shadow Account – For purposes of
Section 1.12 of the Plan, the start date of the 401(k) Shadow Account for
John Tulloch is January 1, 2004.

 

2.             Participant – With respect to Section 1.14
of the Plan, the term Participant refers to John Tulloch, SSN XXX-XX-XXXX.

 

3.             Continuous Service – With respect to Section 1.08
of the Plan, Continuous Service for John Tulloch begins on July 1, 1977.

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