Document:

Exhibit
10.11

 

IPSCO Inc.

2005 Form 10-K

 

PERFORMANCE UNIT AWARD AGREEMENT

 

THIS AGREEMENT made
the 24th day of July 2003.

 

BETWEEN:

 

IPSCO
INC., a corporation incorporated under the laws of Canada,

 

(hereinafter
called the “Company”),

 

OF THE FIRST PART,

 

-and-

 

BURTON
M. JOYCE, of Penhook, Virginia

 

(hereinafter
called the “Participant”),

 

OF THE SECOND
PART.

 

WHEREAS the
Company has established an Incentive Share Option Plan (which, as amended from
time to time by the Board of Directors of the Company and approved by
Shareholders, is hereinafter referred to as the “Plan”) whereby certain
designated officers, employees and directors of the Company and its
subsidiaries may from time to time be granted options, restricted shares and
performance units;

 

AND WHEREAS the
Participant, as a director of the Company, has been designated to receive a
grant of Performance Units (as defined herein), subject to and in accordance
with the terms of this Agreement and of the Plan;

 

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

 

1.                                       Grant

 

Pursuant to Section 9 of the Plan, the Company
hereby grants and awards to the Participant Six Hundred (600) performance units
(the “Performance Units”).  Each
Performance Unit shall be subject to the terms of the Plan and of this
Agreement, including the terms relating to the Performance Period and the
Performance Objective (as those terms are herein defined).

 

 

2.                                       Performance Period/Performance Objective

 

The performance period applicable to the Performance
Units shall be the period beginning on July 1, 2003 (the “Grant Date”) and
ending on June 30, 2006 (the “Performance Period”).  The performance objective applicable to the
Performance Units (the “Performance Objective”) shall be the achievement by the
Company during the Performance Period of positive cumulative net income (as
calculated on a consolidated basis in accordance with Canadian generally
accepted accounting principles) attributable to the common shares of the
Company (the “Common Shares”).

 

3.                                       Vesting of Performance Units

 

The Performance Units will vest upon the earlier of

 

(a)                                  the
date of a Change of Control, and

 

(b)                                 June 30,
2006, provided that the Performance Objective is met,

 

and, provided that the Participant remains a director (or is deemed by Section 4
to remain a director) by the Company or a Subsidiary (as defined in the Plan)
on that date and has been (or is deemed by Section 4 to have been)
continuously so employed since the Grant Date. 
Performance Units not vested on or before the last day of the
Performance Period pursuant to the preceding sentence shall lapse and be
terminated and cancelled.

 

For the purposes of this Section 3, the date of
a Change of Control means the date on which any one of the following
occurs:  (i) any person or group of
persons acting in concert acquires beneficial ownership (within the meaning of
The Securities Act (Saskatchewan)) of 20% or more of the outstanding Common
Shares of the Company, or securities convertible into 20% or more of the
outstanding Common Shares on a post-conversion basis; (ii) during a period
of not more than 24 months, a majority of the Board of Directors ceases to
consist of the existing membership or successors nominated by the existing
membership or their similar successors; (iii) all or substantially all of
the individuals and entities who were the beneficial owners of the Company’s
outstanding securities entitled to vote do not own more than 50% of such
securities in substantially the same proportions following a shareholder
approved reorganization, merger, or consolidation; or (iv) shareholder
approval of either (A) a complete liquidation or dissolution of the
Company or (B) a sale or other disposition of all or substantially all of
the assets of the Company, or a transaction having a similar effect.

 

4.                                       Cessation of Directorship

 

(a)           If
the Participant ceases to be a director (and, if the Participant is a director
of any Subsidiary, the Participant also ceases to be a director of the
Subsidiary) of the Company as a result of (i) the death of the Participant
of (ii) such other circumstances as may be approved by the Board of
Directors, the Participant shall be deemed for the purposes of Section 3
hereof (Vesting of Performance Units), to be a director of the Company or
Subsidiary on the last day of 

 

2

 

the Performance Period (or, if earlier, the date of a Change of
Control) and to have been continuously so appointed since the Commencement
Date;

 

the Participant shall be deemed, for the purposes of Section 3
hereof (Vesting of Performance Units), to be employed by the Company or
Subsidiary on the last day of the Performance Period  (or, if earlier, the date of a Change of
Control) and to have been continuously so employed since the Grant Date.

 

(b)           If
the Participant ceases to be a director of the Company (and, if the Participant
is a director of any Subsidiary, the Participant also ceases to be a director
of the Subsidiary) in any circumstance other than as described in paragraph (a) of
this Section 4 (including, but not limited to, (i) termination of the
Participant’s directorship by the Board of Directors, with or without cause, (ii) resignation
by the Participant or (iii) failure to be re-elected at an annual general
meeting of shareholders of the Company), all of the Performance Units shall
immediately lapse and be terminated and cancelled.  For greater certainty, this Section 4
shall not apply to any director of the Company or the Subsidiary who is an
officer or employee after the time such person ceases to be a director of the
Company or any subsidiary.

 

5.                                       Payment of Performance Units and Dividend Equivalents

 

Upon vesting of the Performance Units in accordance
with Sections 3 and 4 hereof, the Participant shall become entitled to payment
in respect of the Performance Units. 
Payment shall be made by delivery by the Company to the Participant of
one newly issued Common Share for each Performance Unit held by the Participant.  The Participant may, in his sole discretion,
require that payment be made by the Company in a combination of cash (to a
minimum amount of 40% of the vested Performance Units) and Common Shares (to a
minimum amount of 60% of the vested Performance Units) in lieu of payment in
Common Shares only.  For purposes of
calculating the amount of any such cash payment, Common Shares shall be valued
on the applicable date of vesting under Section 3 hereof.  Such valuations shall be closing price of the
Common Shares of the Company on the Toronto Stock Exchange on the day of
vesting.

 

Payment shall be made as soon as practicable after
the date of vesting.  Where payment is
made in whole or in part in Common Shares, the Company shall cause the transfer
agent of the Common Shares to promptly deliver to the Participant a share
certificate in the name of the Participant representing such Common Shares.

 

At the time payment is made by the Company to the
Participant under this Section 5, the Company shall also pay to the
Participant a dividend equivalent in an amount equal to the number of the
Participant’s Performance Units multiplied by the total dividends per Common
Share declared by the Company between the Grant Date and the applicable date of
vesting.  Such payment shall be made by
the Company in cash as soon as practicable after the date of vesting.  For greater certainty, such dividend
equivalent cash payment shall not form part of the calculation of, or be
subject to, the 40% maximum cash payment in lieu of Common Shares noted above.

 

3

 

For greater certainty, where the Participant has
died, all references in this Section 5 to “Participant” shall be deemed to
include the Participant’s legal representative.

 

6.                                      Non-Assignability of Performance Units

 

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

 

7.                                       Rights of Participant

 

The Participant shall have no rights whatsoever as a
shareholder in respect of any Common Shares which are the subject of the
Performance Units held by the Participant (including, without limitation, any
right to receive dividends or other distributions from the Company, voting
rights, warrants or rights under any rights offering) until such time as such
shares have been recorded on the Company’s official shareholder records as
having been issued to the Participant.

 

Nothing contained in this Agreement shall give the
Participant or any other person, any interest or title in or to any Common
Shares which are the subject of the Performance Units or any rights as a
shareholder of the Company or any other legal or equitable right against the
Company whatsoever other than as set forth in this Agreement, nor shall it
confer upon the Participant any right to continue as a director of the Company
or of its Subsidiaries.

 

8.                                       Withholding Taxes

 

Prior to the payment by the Company in respect of
the Performance Units pursuant to Section 5, the Participant shall pay to
the Company such amount as may be requested by the Company for the purpose of
satisfying any liability for federal, provincial, state or other taxes with
respect to such payment.  Where the
Participant is subject to Canadian income tax, such amount shall be paid by the
Participant to the Company in cash or by cheque.  Where the Participant is not subject to
Canadian tax, the amount requested by the Company shall be paid by the
Participant to the Company in cash or by cheque, provided that the Participant
may pay all or a portion of the amount by (a) the delivery of Common
Shares or (b) having the Company withhold a portion of the Common Shares
otherwise to be delivered upon vesting of the Performance Units.  Where the Participant, in his sole
discretion, has required that payment in respect of the Performance Units be
made by the Company in cash in lieu of Common Shares or in a combination of
cash and Common Shares, the Company shall have the right to deduct from any
cash payment any applicable taxes.

 

9.                                       Alterations in Shares

 

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

 

4

 

Directors may make such adjustment, if any, of the number of Performance
Units, as it shall deem appropriate to give proper effect to such event,
including to prevent, to the extent possible, substantial dilution or
enlargement of rights granted to the Participant.  If because of a proposed merger, amalgamation
or other corporate arrangement or reorganization, the exchange or replacement
of shares in the Company for those in another company is imminent, the Board of
Directors may, in a fair and equitable manner, determine the manner in which
the Performance Units shall be treated including, for example, requiring the
acceleration of the time for payment by the Company in respect of the
Performance Units and of the time for the fulfilment of the Performance
Objectives.  All determinations of the
Board of Directors under this Section 9 shall be conclusive and binding.

 

10.                                 Notice

 

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

 

(a)                                  to
the Company:

IPSCO Inc.

650 Warrenville
Road

Suite 500

Lisle, IL 60532

 

Attention:  Vice President, General Counsel

and Corporate Secretary

 

(b)                                 to
the Participant:

 

Penhook, VA

 

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

 

11.                                 Plan to Apply

 

The parties agree that the provisions of the Plan
shall be complementary to and read in conjunction with the terms of this
Agreement and in the event of any contradiction or inconsistency between any
provisions of the Plan and those of this Agreement, the Plan shall
prevail.  This Agreement shall also be
subject to the applicable requirements of the Toronto Stock Exchange, the
United States Securities and Exchange Commission and the New York Stock
Exchange from time to time.

 

5

 

12.                                 Dispute

 

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

 

13.                                 Further Assurances

 

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

 

14.                                 Enurement

 

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

 

15.                                 Governing Law

 

This Agreement
shall be governed by the laws of the State of Illinois.

 

 

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

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ George Valentine

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Burton M.
  Joyce

  	
   

  
	
   

  	
  Burton M. Joyce

  
						

 

6Exhibit 10.11a

 

IPSCO Inc.

2005 Form 10-K

 

2003 Performance Unit Award Agreements with
Directors

 

In accordance with the Instructions of Item 601 of Regulation S-K, the
registrant has omitted filing the 2003 Performance Unit Award Agreements by and
between IPSCO Inc. and the following Directors as exhibits to this Form 10-K
because, they are identical to the form of Performance Unit Agreement filed as
Exhibit 10.11 with this Form 10-K.

 

1. Juanita Hinshaw

2. Jack Michaels

3. Bernard Michel, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

4. Allan Olson, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

5. Arthur Price, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

6. Richard Sim

7. Roger Tetrault

8. Gordon Thiessen, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

9. D. Muarry Wallace, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

10. John B. Zaozirny, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]