Document:

exv10w6

 

Exhibit
10.6

EMPLOYMENT AGREEMENT

between

NORTH AMERICAN ENERGY PARTNERS INC.

and

RODNEY JOHN RUSTON

 

 

1. EFFECTIVE DATE

1.1 The effective date (the “Effective Date”) of this Employment Agreement (the “Agreement”) shall
be August 1, 2006.

2. PARTIES

2.1 The parties to this Agreement shall be:

	 	(a)	 	North American Energy Partners Inc. (“NAEPI”), a federal corporation
extra-provincially registered in Alberta and located at Zone 3 Acheson Industrial Area
2, 53016 Hwy 60, Acheson, Alberta T7X 5A7 Canada

and

	 	(b)	 	Rodney John Ruston, an individual, residing at 405 – 10855 Saskatchewan Drive,
Edmonton, Alberta, T6E 6T6, Canada (the “Executive”)

3. TITLE

3.1 The position title shall be President & CEO.

4. RECITALS

	 	(A)	 	The Executive is an executive and employee of NAEPI.
	 
	 	(B)	 	The Executive wishes to remain employed with NAEPI, and NAEPI wishes the
Executive to continue in the position of President & CEO, and such other executive
positions and titles that the Executive may hold in future with NAEPI and the NAEPI
Group.
	 
	 	(C)	 	The parties want to outline and confirm the terms and conditions of their
employment relationship in this Agreement.

5. DEFINITIONS

5.1 In this Agreement, the following words shall have the following meaning:

	 	 	 	 	 
	 

	 	“Affiliate”
	 	Means when used to indicate a relationship with
Person, the same as is set forth in the Securities
Act (Alberta).
	 
	 	 	 	 
	 

	 	“Board”
	 	Means the board of directors of NAEPI.
	 
	 	 	 	 
	 

	 	“Change of Control”
	 	Means a Change of Control as
defined in the Share Option Plan.

 

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	 	“Intellectual Property”
	 	Means all ideas, inventions, discoveries,
processes, designs, methods, substances, articles,
computer programs and improvements, whether or not
patentable or copyrightable, which the Executive
discovers, conceives, invents, creates or
develops, alone or with others, during the time he
is employed with NAEPI.
	 
	 	 	 	 
	 

	 	“NAEPI Executive”
	 	Means the named executive of NAEPI.
	 
	 	 	 	 
	 

	 	“NAEPI Group”
	 	Means NAEPI, NACG Preferred Corp., NACG Holdings
Inc. and their Affiliates.
	 
	 	 	 	 
	 

	 	“Person”
	 	Means any individual, corporation, limited
liability corporation, limited or general
partnership, joint venture, association, joint
stock corporation, trust, plan, unincorporated
organization or government or any agency or
political subdivisions thereof.
	 
	 	 	 	 
	 

	 	“Share Option Plan”
	 	Means the NAEPI Amended and Restated 2004 Share Option Plan, as amended
from time to time.
	 
	 	 	 	 
	 

	 	“Start Date”
	 	Means May 9, 2005.
	 
	 	 	 	 
	 

	 	“Termination Date”
	 	Means the Executive’s last day actively at work
for NAEPI, regardless of the reason for cessation
of employment.

6. INTERPRETATION

6.1 Headings are for convenience only and do not affect or contribute to the interpretation of this
Agreement.

6.2 “NAEPI” includes the successors and assigns of NAEPI and any corporation with which it may be
amalgamated and any corporation formed under its reconstruction.

6.3 A reference to an Act includes a reference to that Act as amended from time to time and if that
Act is repealed and replaced by another Act, that replacement Act in substitution for the original
Act.

7. APPOINTMENT & TERM

7.1 As of the Effective Date, NAEPI shall continue to employ the Executive as President & CEO of
NAEPI, and the Executive agrees to continue his employment with NAEPI on the terms and conditions
set out in this Agreement.

7.2 This Agreement and the Executive’s employment with NAEPI shall continue until May 8, 2010,
unless earlier terminated in accordance with Clause 13 of this Agreement. If the Executive’s
employment with NAEPI is not terminated prior to May 8, 2010, NAEPI may offer to extend employment
to the Executive on the same terms as contained in this Agreement, or on such other terms as agreed
upon between the parties. If such an offer of continued employment is not made by NAEPI and/or
accepted by the Executive, the Executive’s employment and this Agreement shall terminate on May 8,
2010.

 

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8. RESPONSIBILITIES OF THE EXECUTIVE

8.1 The Executive shall serve the NAEPI Group in the capacity of President & CEO and shall perform
the duties on a full-time basis as particularized in the attached Schedule 1, and as determined
from time to time by the Board. The Executive agrees to assume, for no additional compensation,
such titles and responsibilities as are directed with respect to the other entities in the NAEPI
Group. The Executive acknowledges and understands that the business of the NAEPI Group may change
from time to time, and that the duties of the Executive may also change from time to time.

8.2 The Executive agrees that he shall use his best efforts to promote the interests of the NAEPI
Group, and shall duly and diligently perform all the duties assigned to him while in the employ of
NAEPI.

8.3 The Executive agrees to devote the whole of his working time, attention and skills during
NAEPI’s normal working hours to NAEPI and shall not, without the consent of the Board, undertake
during the course of his employment with NAEPI any other business or occupation or become a
director, officer, employee or agent of another company, firm, or proprietorship.

8.4 The Executive agrees to abide by all policies and procedures of the NAEPI Group.

9. REMUNERATION

9.1 As particularized in Schedule 2 to this Agreement, the Executive will be remunerated through a
three-tier remuneration package consisting of a regular remuneration package (“Regular Remuneration
Package”) and a short and long-term incentive.

9.2 NAEPI shall review on an annual basis the Regular Remuneration Package of the Executive. The
review will take into account the performance objectives applicable to the position, such
objectives to be determined from time to time by the Board in consultation with the Executive.

9.3 If there is a Change of Control any options granted to the Executive shall be governed by the
Share Option Plan.

9.4 The Executive will be entitled to participate in any NAEPI health assessment and counselling
programs provided for NAEPI employees generally and the NAEPI Executive specifically and as such
programs are amended from time to time.

9.5 The Executive shall receive annually during his employment with NAEPI, a lump sum travel
allowance of $25,000.00, to cover the reasonable costs of the Executive and the Executive’s spouse
travelling from Canada to Australia and return.

9.6 Upon the cessation of your employment with NAEPI, NAEPI will cover the cost of transfer of the
Executive’s (and immediate family’s) personal goods from Edmonton to Australia, and the cost of
business class air fare.

9.7 NAEPI will reimburse you for the costs of obtaining tax advice in relation to your employment
with NAEPI.

 

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9.8 Group Health & Benefits

9.8.1 The Executive shall participate in the NAEPI benefit plan (premiums paid by NAEPI) as
described in Schedule 3 of this Agreement, and as amended from time to time.

9.8.2 In addition, the Executive shall be eligible to receive Alberta Health Care and long-term
disability insurance provided through NAEPI with the premiums paid by the Executive and as amended
from time to time.

10. VACATION

10.1 The Executive will be entitled, in addition to Alberta statutory holidays, to paid vacation of
twenty (20) days per year (pro-rated for partial years worked), to be taken in accordance with the
NACG’s Vacation Policy, as amended from time to time.

10.2 Vacation is to be taken regularly by the Executive as it accrues. It is expected that the
Executive will take not less than 75% of accrued vacation time each year and in any case, not more
than twenty-five (25) days shall be accumulated for carryover without the written agreement of the
Chairman of the Board.

10.3 Vacation is to be taken having regard to the operational and financial needs of NAEPI and the
responsibilities and duties of the Executive and is to be arranged cooperatively with members of
his team, the other members of the NAEPI Executive, and the Chairman of the Board.

11. INSURANCE

11.1 Directors’ and Officers’ Insurance

11.1.1 NAEPI will indemnify the Executive as an officer of the NAEPI Group in accordance with the
Indemnity Agreement entered into between NAEPI and the Executive.

11.1.2 In addition, NAEPI will use its reasonable best efforts to have and maintain directors’ and
officers’ insurance for the NAEPI’s directors and officers.

12. CONFIDENTIAL INFORMATION

12.1 As an executive of the NAEPI Group and an employee of NAEPI, the Executive will obtain access
to or otherwise become aware of confidential information (whether it is designated as such or not)
about the NAEPI Group’s activities, Intellectual Property, plans and finances and about its
employees, consultants, suppliers, customers and other Persons, which the NAEPI Group has dealings
with (collectively, the “Confidential Information”).

12.2 All originals, copies and other forms of Confidential Information, however and whenever
produced, shall be the sole property of NAEPI, not to be removed from the premises or custody of
NAEPI, except in the normal course of business, without in each instance first obtaining written
consent or authorization of NAEPI. The Executive hereby assigns and agrees to assign to NAEPI all
of the Executive’s right, title and interest in and to all Intellectual Property, and agrees that
all Intellectual Property constitutes the exclusive property of NAEPI.

12.3 The Executive represents and warrants to NAEPI that (i) the Executive’s continued employment
with NAEPI will not breach any agreement or other obligation with respect to the confidential or
proprietary information of a third party; and (ii) the Executive is not bound by any written or
oral

 

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agreement with any third party that conflicts with the Executive’s employment with NAEPI. The
Executive agrees that, during the Executive’s employment with NAEPI, he shall not improperly bring
to NAEPI or use any trade secrets or confidential or proprietary information of any third party or
otherwise knowingly infringe on the proprietary rights of any third party.

12.4 At all times, during and after the cessation of employment (regardless of the reason for
cessation) with NAEPI, the Executive agrees that he shall:

	 	(a)	 	not, except in the proper course of his duties with NAEPI, divulge to any
person; and
	 
	 	(b)	 	use his best endeavours to prevent the publication or disclosure of,

any Confidential Information except where the Confidential Information:

	 	(a)	 	is in the public domain;
	 
	 	(b)	 	is required to be disclosed by the Executive under law; or
	 
	 	(c)	 	was already known to the Executive, prior to his employment with NAEPI.

12.5 The obligations set out in this Clause 12 are in addition to any obligations the Executive has
under statute and in addition to the fiduciary obligations owed by the Executive to the NAEPI
Group.

13. TERMINATION

13.1 The Executive may, at any time, by not less than three (3) months advance written notice,
terminate this Agreement and resign from his employment with NAEPI. In the event of the Executive
giving notice in accordance this Clause NAEPI may, at its discretion, immediately terminate the
Executive’s employment and this Agreement at any time during the notice period, provided that NAEPI
pay the Executive the pro-rata Annual Base Salary that would have been earned by the Executive from
the Termination Date through to the end of the notice period. If the Executive provides notice of
his resignation with the end of the notice period falling on March 31 or thereafter and NAEPI
elects to earlier terminate such that the Termination Date is prior to March 31, NAEPI agrees to
pay to the Executive the full year bonus under the NAEPI Short Term Bonus Scheme that the Executive
would have received had the Executive worked the entirety of the fiscal year, notwithstanding the
fact that the Executive will not be employed on the date on which the bonus is distributed.

13.2 NAEPI may immediately terminate this Agreement and the employment of the Executive at any time
without prior notice and without severance, for the following reasons:

	 	(a)	 	death of the Executive; or
	 
	 	(b)	 	any reason which constitutes just cause at common law and which shall include:

	 	(i)	 	any serious or persistent breach by the Executive of any of the
material provisions of this Agreement; or
	 
	 	(ii)	 	grave misconduct or wilful neglect in the discharge of his
duties.

13.3 In the event of termination of this Agreement pursuant to Clauses 13.1 or 13.2, the Executive
shall not be entitled to any severance or compensation, save and except only for any payment
required under Clause 13.1, the payment of the pro rata Annual Base Salary earned but unpaid for
services

 

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rendered up to and including the Termination Date, plus any accrued and unused vacation and
properly incurred and reimbursable expenses.

13.4 NAEPI, for any reason other than just cause, may immediately terminate the Executive’s
employment and this Agreement, or should the Executive’s employment with NAEPI not continue after
May 8, 2010, then NAEPI shall pay the Executive within ten (10) days of the Termination Date the
pro rata Annual Base Salary earned but unpaid for services rendered up to the Termination Date,
accrued and unused vacation and properly incurred and reimbursable expenses.

     In addition, and subject to Clauses 13.6 and 13.7, NAEPI shall pay the Executive within ten
(10) days of the Termination Date a retiring allowance equal to one (1) times the Executive’s then
Annual Base Salary plus one (1) times the cash bonus paid to the Executive in the year prior to the
Termination Date, if the Termination Date is on or prior to the 5th anniversary of the
Start Date.

13.5 In the event of termination of this Agreement pursuant to Clause 13.4 and if the Termination
Date is after the conclusion of NAEPI’s fiscal year but prior to the payout by NAEPI of bonuses
under the NAEPI Short Term Bonus Scheme, NAEPI further agrees to pay to the Executive any bonus
earned and owing to him under the NAEPI Short Term Bonus Scheme for the fiscal year prior to the
Termination Date.

13.6 The above payments in Clauses 13.4 and 13.5 shall be subject to required withholdings and
return by the Executive of all of the NACG Group’s property, and in exchange for the payments the
Executive agrees to sign and provide to the NACG Group a full and final release with respect to his
employment and the termination of his employment.

13.7 If, upon termination of this Agreement and the cessation of the Executive’s employment and
regardless of the reason, the Executive is a director or officer of any of the entities in the NACG
Group, the Executive agrees to immediately resign as a director or officer.

13.8 The Executive acknowledges that the group benefits as described in Schedule 3 of this
Agreement, provincial health care and long-term disability all cease as of the Termination Date,
regardless of the reason for cessation of employment. The Executive understands and agrees that
the NAEPI Group has no liability for any damages the Executive and his family may suffer as a
result of the cessation of employment.

13.9 If, after the Termination Date, the Executive involved in any litigation or administrative
proceedings related to the services the Executive provided to the NAEPI Group as an officer or
director, the NAEPI Group will cooperate with the Executive with respect to allowing the Executive
access to all information that the Executive may require in order to properly defend any litigation
or administrative proceeding. In such circumstances, the Executive will agree to be bound by any
reasonable confidentiality restrictions that the NAEPI Group places on such information.

13.10 If the NAEPI Group is involved in any litigation or administrative proceedings that
involved the services of the Executive where such services were provided to the NAEPI Group as an
officer or director, the Executive will cooperate with the NAEPI Group with respect to allowing the
NAEPI Group access to all information that the NAEPI Group may require and will, where practical,
provide his time at reasonable agreed to costs, in order to assist the NAEPI Group to properly
defend any litigation or administrative proceeding.

14. RESTRICTIVE COVENANTS AFTER TERMINATION OF EMPLOYMENT

14.1 The Executive expressly agrees that, at any time for two (2) years after the termination of
this Agreement and the cessation of the Executive’s employment, regardless of the reason for
cessation of employment, the Executive shall not, directly or indirectly solicit, interfere with or
endeavour to entice away from NAEPI any person who is an employee or consultant of the NAEPI Group
provided that this Clause will not restrict the Executive from employing or causing to be employed
an employee or consultant of the NAEPI Group, who applies for a position outside NAEPI of his/her
own accord and

 

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without any input or interaction, either directly or indirectly, with the Executive before the
application is made.

15. PRIVACY

15.1 The Executive consents that:

	 	(a)	 	the personal data relating to the Executive may be maintained and stored by
NAEPI electronically or in any other form; and
	 
	 	(b)	 	the personal data relating to the Executive may be freely transferred and
shared between NAEPI and the entities in the NAEPI Group irrespective of where the
offices of such entities are physically located.

15.2 The Executive acknowledges and agrees that NAEPI has the right to collect, use and disclose
the Executive’s personal information for purposes relating to the Executive’s employment with
NAEPI, including:

	 	(a)	 	ensuring that the Executive is paid for the services performed for NAEPI;
	 
	 	(b)	 	administering any benefits to which the Executive is or may become entitled to,
bonus and/or rights to NAEPI common shares. This shall include the disclosure of the
Executive’s personal information to any insurance company and/or broker or to any
entity that manages or administers the benefits or bonus on behalf of NAEPI;
	 
	 	(c)	 	compliance with any regulatory reporting and withholding requirements relating
to the Executive’s employment, including required disclosure to shareholders;
	 
	 	(d)	 	enforcing NAEPI’s policies including those relating to the proper use of the
electronic communications network and to comply with applicable laws; and
	 
	 	(e)	 	in the event of a possible sale of NAEPI or any entity in the NAEPI Group,
disclosing to any potential acquiring organization the Executive’s personal information
solely for the purpose of determining the value of the NAEPI Group and their assets and
liabilities and to evaluate the Executive’s position in NAEPI. If the Executive’s
personal information is disclosed to any potential acquiring organization, NAEPI will
require the potential acquiring organization to agree to protect the privacy of the
Executive’s personal information in a manner that is consistent with any policy of
NAEPI dealing with privacy that may be in effect from time to time and/or any
applicable law that may be in effect from time to time.

16. GENERAL

16.1 NAEPI and the Executive consider the covenants, obligations and restrictions in this Agreement
to be reasonable in all circumstances of the engagement.

16.2 Each and every covenant, obligation and restriction and each and every part of this Agreement
shall be deemed to be severable and an independent covenant, obligation or restriction unless it
would defeat the purpose of this Agreement.

 

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16.3 This Agreement shall be governed by and interpreted in accordance with the laws of the
province of Alberta and the parties hereby attorn to the jurisdiction of the courts of the province
of Alberta.

16.4 Any waiver by either party of any breach or non-observance of this Agreement will not be
deemed to be a waiver of any other breach or any other non-observance.

17. ALTERNATIVE DISPUTE RESOLUTION

17.1 Unless a party to this Agreement has complied with Clauses 17.2 to 17.5, that party may not
commence court proceedings or arbitration relating to any dispute arising from this Agreement
except where that party seeks urgent interlocutory relief in which case that party need not comply
with this Clause before seeking such relief. Where a party to this Agreement fails to comply with
Clauses 17.5 to 17.5, the other party to the Agreement need not comply with this Clause before
referring the dispute to arbitration or commencing Court proceedings relating to that dispute.

17.2 All questions or differences whatsoever which at any time may arise between the parties or
their respective representative with respect to this Agreement or to the subject matter of this
Agreement or arising out of or in relation thereto and whether as to construction or otherwise will
be initially raised with the Board or the Executive as the case may require. The Board and the
Executive will seek within 30 days to resolve the issue and in doing so will act in good faith and
use their reasonable best efforts.

17.3 If the dispute is not resolved under Clause 17.2, a party to this Agreement must give written
notice to the other party designating as its representative in negotiations relating to the dispute
a person with authority to settle the dispute and the other party must promptly give notice in
writing to the other party designating as its representative in negotiations relating to the
dispute a person with similar authority.

17.4 The designated persons must, within 14 days of the last designation required by Clause 17.3,
following whatever investigations each deems appropriate, seek to resolve the dispute.

17.5 If the dispute is not resolved within the following 14 days (or within such further period as
the representatives may agree is appropriate) the parties must attempt to settle the dispute by the
process of mediation. Within a further period of 14 days the parties must select a mediator from a
list of three names of mediators (who hold the Chartered Mediation designation, awarded by the ADR
Institute of Canada) provided by the Alberta Arbitration & Mediation Society, and the mediation
must be conducted in good faith and in accordance with procedures for the mediation of commercial
disputes generally in Canada and specifically in Alberta.

17.6 The purpose of any exchange of information or documents or the making of any offer of
settlement pursuant to this Clause is to attempt to settle the dispute between the parties. No
party may use directly or indirectly any information or documents obtained through the dispute
resolution process established by this Clause for any other purpose than in an attempt to settle a
dispute between that party and other parties to this Agreement.

 

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17.7 If the time established by or agreed under Clause 17.5 for agreement on a dispute resolution
process expires, any party which has complied with the provisions of Clauses 17.2 to 17.5 may in
writing terminate the dispute resolution process provided for in those Clauses and may then refer
the dispute to arbitration or commence Court proceedings relating to the dispute.

18. NOTICES

18.1 Any notice to be given under this Agreement must be in writing and may be left at or sent by
prepaid registered mail or by facsimile addressed, in the case of NAEPI, to its registered office
or principal place of business for the time being and in the case of the Executive delivered
personally or to his last known place of residence or business. Any notice given by post will be
deemed to have been served at the expiration of 48 hours after posting and any notice given by
facsimile will be deemed to have been received when the facsimile transmission has been complete.

19. SURVIVAL

19.1 The provisions of Clauses 9.3, 12, 13, 14, 15, 16, 17 and 18 and the Executive’s fiduciary
obligations shall survive the termination of this Agreement and the cessation of the Executive’s
employment, regardless of the reason for such cessation.

20. LEGAL FEES

20.1 NAEPI will bear and is responsible for the reasonable legal fees incurred by the Executive
only in connection with the execution of this Agreement.

	 	 	 	 	 
	 	 	NORTH AMERICAN PARTNERS INC.
	 
	 	 	 	 
	 

	 	Per:	 	/s/ RONALD A. MCINTOSH 
	 

	 	 	 	 
	 

	 	 	 	Chairman of the Board
	 
	 	 	 	 
	Signed in the presence of:
	 	 	 	 
	/s/ [Illegible] 
	 	/s/ RODNEY JOHN RUSTON 
	 	 	 
	Witness

	 	RODNEY JOHN RUSTON

 

SCHEDULE 1

Position Description

Job Title: President and Chief Executive Officer

Division/Department: North American Energy Partners Inc.

Reports to (Title): Chairman of the Board of Directions

Location: Acheson

	 	 	 	 	 
	Type of

position:

	 	Shift:
	 	Band:
	 
	 	 	 	 
	þ Full-time Salary
	 	 	 	 
	 
	 	 	 	 
	o Part-time Salary
	 	 	 	 
	 
	 	 	 	 
	 ̈ Full-time Hourly

	 	 	 	Status:
	 
	 	 	 	 
	o Part-time Hourly

	 	Hours of Work:
	 	þ Exempt
	 
	 	 	 	 
	o Temporary

	 	 	 	o Nonexempt
	 
	 	 	 	 
	expiry date:
	 	 	 	 
	 
	 	 	 	 
	o COOP/Intern
	 	 	 	 

Accountabilities:

	 	•	 	Provide overall leadership and direction to the management of the business operations to achieve North American Energy
Partners Inc.’s goals and objectives.
	 
	 	•	 	Foster a culture of integrity and set the ethical tone for all of North American Energy Partners Inc.

Responsibilities:

	 	•	 	Allocate financial and human capital for the successful management and financial performance of North American Energy
Partners Inc.
	 
	 	•	 	Establish policies and procedures to effectively operate North American Energy Partners Inc. in an efficient and
controlled manner.
	 
	 	•	 	Develop, supervise and evaluate the executive officers and recommend to the Board the selection and compensation of
executive officers.
	 
	 	•	 	Identify potential successors for the positions of CEO and other members of Executive Management.
	 
	 	•	 	Report to and work with the Board so that it might fulfill its oversight role.
	 
	 	•	 	Advise the Board of major issues and risks that may affect the Company.
	 
	 	•	 	Monitor and manage the risks of the Company.
	 
	 	•	 	Establish the corporate structure and major accountabilities.
	 
	 	•	 	Recommend to the Board the strategic direction of North American Energy Partners Inc. and implement approved
operational and business plans.
	 
	 	•	 	Recommend to the Board any acquisition, merger, divestiture and the entry or exit of any business unit of the company.
	 
	 	•	 	Oversee the relationship between North American Energy Partners Inc. and the public.

Key Performance Indicators:

 

Work experience Requirements:

	 	•	 	Minimum ten years related experience gained through leading and managing a public company structure.
	 
	 	•	 	Industrial construction and/or mining industry experience preferred.

Education Requirements:

	 	•	 	Related Bachelor’s Degree or equivalent experience.

Knowledge, Skills, and Abilities Requirements:

	 	•	 	Strong leadership and team-building skills.
	 
	 	•	 	With the ability to create a vision and motivate others to share this vision.
	 
	 	•	 	Ability to build trust and confidence with senior line executives of the businesses and serve as a confidant and
sounding board when needed.
	 
	 	•	 	Provide functional guidance to subordinate managers including their individual development.
	 
	 	•	 	Committed to service excellence and innovation.
	 
	 	•	 	A record of accomplishment as a senior executive.
	 
	 	•	 	Experience in working with a board of directors is required,
	 
	 	•	 	Ability to build strong relationships with diverse groups of stakeholders internally and externally.

Manager Reviewed by:

Title:

Human Resources Approved by:

Title:

 

SCHEDULE 2

1. REGULAR REMUNERATION

1.1 The Executive’s current annual base salary (the “Annual Base Salary”) of $500,000.00, less
required withholdings, to be paid in accordance with NAEPI’s usual payroll practices.

1.2 The Executive shall continue to receive compensation in recognition of him using his private
vehicle for NAEPI business, which shall consist of a monthly payment of $800 (as amended and
adjusted from time to time). In addition, the Executive shall be reimbursed (NAEPI can cap, at its
discretion, the amount of the reimbursement) for or receive vehicle insurance paid for by NAEPI,
reasonable fuel costs and reasonable maintenance costs.

1.3 The Executive will be entitled to reimbursement for the cost of:

	 	(a)	 	annual dues to Federal and Provincial organisations, membership of which is
necessary to retain any qualifications related to his employment;
	 
	 	(b)	 	annual dues to any work related institute; and
	 
	 	(c)	 	reasonable fees and expenses to cover the annual costs of one health or sports
club.

2. SHORT TERM BONUS

2.1 The Executive will be entitled to participate at Level 1 in the NAEPI Short Term Bonus Scheme,
as such level of participation and terms of the NAEPI Short Term Bonus Scheme are amended and
adjusted from time to time

3. LONG TERM INCENTIVE

	3.1	 	The Executive has been granted twenty-seven thousand five hundred (27,500) options to purchase
NACG Holdings Inc. common shares, at an exercise price of $100.00 per option.
	 
	3.2	 	In addition, the Executive will be entitled to be considered for future grants of options from
time to time by the Compensation Committee of the Board.
	 
	3.3	 	The exercise rights and terms of all options granted to the Executive shall be governed by the
relevant employee option agreement and the Share Option Plan, as amended from time to time, and as
modified by this Agreement.
	 
	3.4	 	The Executive shall be entitled to participate in any long term incentive plans adopted for the
executive of NAEPI, in accordance with the terms of such plan or plans.

 

SCHEDULE 3

INSURANCE AND HEALTH SCHEME

	 	 	 
	BENEFIT	 	DESCRIPTION
	 
	 	 
	Life Insurance and Accidental
	 	 
	Death & Dismemberment

	 	2 x the Executive’s annual base salary to a maximum benefit level of $300,000
	 
	 	 
	Dependent Life

	 	•   Spouse — $10,000

	 
	 	 
	 

	 	•   Child — $5,000

	 
	 	 
	Extended Medical

	 	•   80% Pay Direct Drug card on prescription drugs with no deductible

	 
	 	 
	 

	 	•   100% of all other eligible expenses as listed below.

	 
	 	 
	 

	 	•   Semi-private hospital room

	 
	 	 
	 

	 	•   Auxiliary Hospital

	 
	 	 
	 

	 	•   Home Care Nursing – maximum of $10,000/year

	 
	 	 
	 

	 	•   Ambulance services

	 
	 	 
	 

	 	•   Paramedical Services — $500/ registered/licensed practitioner annual maximum

	 
	 	 
	 

	 	•   Psychologist, chiropractor, speech language pathologist, massage therapist, chiropodist/podiatrist, osteopath,
naturopath, Physiotherapy — $40 per visit to annual maximum of $600

	 
	 	 
	 

	 	•   Acupuncture — $40 per visit to annual maximum of $500

	 
	 	 
	 

	 	•   Hearing aids, $500 every 5 years

	 
	 	 
	 

	 	•   Medical aids

	 
	 	 
	 

	 	•   Vision care: Eyeglass lenses & frames, contact lenses, prescription industrial safety glasses, laser eye surgery.

	 

	 	     $250 maximum every 2 years – adults and children over 18;
	 

	 	     $250 maximum every 1 year – children under age 19.
	 
	 	 
	 

	 	•   $50 eye exams (age 19-65 where not covered by the provincial medical plan)

	 
	 	 
	 

	 	•   Emergency Out of Province/Canada

	 
	 	 
	 

	 	•   Travel Assistance

	 
	 	 
	 

	 	•   Survivor benefit for up to 12 months.

 

Schedule 3

Page 2 of 2

	 	 	 
	BENEFIT	 	DESCRIPTION
	 
	 	 
	Dental

	 	•   80% Basic Services, 50% Major Services, 50% Orthodontics

	 
	 	 
	 

	 	•   No annual deductible

	 
	 	 
	 

	 	•   $2,000 annual maximum per person for Basic and Major Restorative combined.

	 
	 	 
	 

	 	•   $2,500 lifetime maximum per child (under age 19) for Orthodontics

	 
	 	 
	 

	 	•   Current Dental Fee guide for Generalist Practitioners

	 
	 	 
	 

	 	•   Basic Services:

	 
	 	 
	 

	 	•   Cleanings, exams, extractions, fillings, endodontics, periodontics, oral surgery, x-rays, scaling, relining, repairing
& rebasing of dentures

	 
	 	 
	 

	 	•   Major Services:

	 
	 	 
	 

	 	•   Caps, crowns, bridges, complete dentures and onlays

	 
	 	 
	 

	 	•   Ortho Services:

	 
	 	 
	 

	 	•   Orthodontic appliances and servicesexv10w7

 

Exhibit 10.7

EMPLOYMENT AGREEMENT

between

NORTH AMERICAN ENERGY PARTNERS INC.

and

VINCENT JEAN GALLANT

 

 

1. EFFECTIVE DATE

1.1 The effective date (the “Effective Date”) of this Employment Agreement (the “Agreement”) shall
be August 1, 2006.

2. PARTIES

2.1 The parties to this Agreement shall be:

	 	(a)	 	North American Energy Partners Inc. (“NAEPI”), a federal corporation
extra-provincially registered in Alberta and located at Zone 3 Acheson Industrial Area
2, 53016 Hwy 60, Acheson, Alberta T7X 5A7 Canada

and

	 	(b)	 	Vincent Jean Gallant, an individual, residing at #202, 10010 — 119 Street,
Edmonton, Alberta, T5K 1Y8 (the “Executive”)

3. TITLE

3.1 The position title shall be Vice President, Corporate.

4. RECITALS

	 	(A)	 	The Executive is an executive and employee of NAEPI.
	 
	 	(B)	 	The Executive wishes to remain employed with NAEPI, and NAEPI wishes the
Executive to continue in the position of Vice President, Corporate, and such other
executive positions and titles that the Executive may hold in future with NAEPI and the
NAEPI Group.
	 
	 	(C)	 	The parties want to outline and confirm the terms and conditions of their
employment relationship in this Agreement.

5. DEFINITIONS

     5.1 In this Agreement, the following words shall have the following meaning:

	 	 	 
	“Affiliate”

	 	Means when used to indicate a relationship with
Person, the same as is set forth in the Securities
Act (Alberta).
	 
	 	 
	“Board”

	 	Means the board of directors of NAEPI.
	 
	 	 
	“Intellectual Property”

	 	Means all ideas, inventions, discoveries,
processes, designs, methods, substances, articles,
computer programs and improvements, whether or not
patentable or copyrightable, which the Executive
discovers, conceives, invents, creates or
develops, alone or with others, during the time he
is employed with NAEPI.

 

2

	 	 	 
	“NAEPI Executive”

	 	Means the named executive of NAEPI.
	 
	 	 
	“NAEPI Group”

	 	Means NAEPI, NACG Preferred Corp., NACG Holdings
Inc. and their Affiliates.
	 
	 	 
	“Person”

	 	Means any individual, corporation, limited
liability corporation, limited or general
partnership, joint venture, association, joint
stock corporation, trust, plan, unincorporated
organization or government or any agency or
political subdivisions thereof.
	 
	 	 
	“President”

	 	Means the President and CEO from time to time of
NAEPI or such other person appointed by the Board
for the purposes of this Agreement.
Means January 1, 1997.
	 
	 	 
	“Share
Option Plan”

	 	Means the NAEPI Amended and
Restated 2004 Share Option Plan, as amended from time to time.
	 
	 	 
	“Start Date”

	 	Means January 1, 1997.
	 
	 	 
	“Termination Date”

	 	Means the Executive’s last day actively at work
for NAEPI, regardless of the reason for cessation
of employment.

6. INTERPRETATION

6.1 Headings are for convenience only and do not affect or contribute to the interpretation of this
Agreement.

6.2 “NAEPI” includes the successors and assigns of NAEPI and any corporation with which it may be
amalgamated and any corporation formed under its reconstruction.

6.3 A reference to an Act includes a reference to that Act as amended from time to time and if that
Act is repealed and replaced by another Act, that replacement Act in substitution for the original
Act.

7. APPOINTMENT & TERM

7.1 As of the Effective Date, NAEPI shall continue to employ the Executive as Vice President,
Corporate of NAEPI, and the Executive agrees to continue his employment with NAEPI on the terms and
conditions set out in this Agreement.

7.2 This Agreement and the Executive’s employment with NAEPI shall continue indefinitely until
terminated in accordance with Clause 13 of this Agreement.

8. RESPONSIBILITIES OF THE EXECUTIVE

8.1 The Executive shall serve the NAEPI Group in the capacity of Vice President, Corporate and
shall perform the duties on a full-time basis as particularized in the attached Schedule 1, and as
determined from time to time by the President. The Executive agrees to assume, for no additional
compensation, such titles and responsibilities as are directed with respect to the other entities
in the NAEPI Group. The Executive acknowledges and understands that the business of the NAEPI
Group may change from time to time, and that the duties of the Executive may also change from time
to time.

8.2 The Executive agrees that he shall use his best efforts to promote the interests of the NAEPI
Group, and shall duly and diligently perform all the duties assigned to him while in the employ of
NAEPI.

 

3

8.3 The Executive agrees to devote the whole of his working time, attention and skills during
NAEPI’s normal working hours to NAEPI and shall not, without the consent of the Board, undertake
during the course of his employment with NAEPI any other business or occupation or become a
director, officer, employee or agent of another company, firm, or proprietorship.

8.4 The Executive agrees to abide by all policies and procedures of the NAEPI Group.

9. REMUNERATION

9.1 As particularized in Schedule 2 to this Agreement, the Executive will be remunerated through a
three-tier remuneration package consisting of a regular remuneration package (“Regular Remuneration
Package”) and a short and long-term incentive.

9.2 NAEPI shall review on an annual basis the Regular Remuneration Package of the Executive. The
review will take into account the performance objectives applicable to the position, such
objectives to be determined from time to time by the President in consultation with the Executive.

9.3 The Executive will be entitled to participate in any NAEPI health assessment and counselling
programs provided for NAEPI employees generally and the NAEPI Executive specifically and as such
programs are amended from time to time.

9.4 Group Health & Benefits

9.4.1 The Executive shall participate in the NAEPI benefit plan (premiums paid by NAEPI) as
described in Schedule 3 of this Agreement, and as amended from time to time.

9.4.2 In addition, the Executive shall be eligible to receive Alberta Health Care and long-term
disability insurance provided through NAEPI with the premiums paid by the Executive and as amended
from time to time.

10. VACATION

10.1 The Executive will be entitled, in addition to Alberta statutory holidays, to paid vacation of
twenty (20) days per year (pro-rated for partial years worked), to be taken in accordance with the
NACG’s Vacation Policy, as amended from time to time.

10.2 Vacation is to be taken regularly by the Executive as it accrues. It is expected that the
Executive will take not less than 75% of accrued vacation time each year and in any case, not more
than twenty-five (25) days shall be accumulated for carryover without the written agreement of the
President.

10.3 Vacation is to be taken having regard to the operational and financial needs of NAEPI and the
responsibilities and duties of the Executive and is to be arranged co operatively with members of
his team and other members of the NAEPI Executive.

 

4

11. INSURANCE

11.1 Directors’ and Officers’ Insurance

11.1.1 NAEPI will indemnify the Executive as an officer of the NAEPI Group in accordance with the
Indemnity Agreement entered into between NAEPI and the Executive.

11.1.2 In addition, NAEPI will use its reasonable best efforts to have and maintain directors’ and
officers’ insurance for the NAEPI’s directors and officers.

12. CONFIDENTIAL INFORMATION

12.1 As an executive of the NAEPI Group and an employee of NAEPI, the Executive will obtain access
to or otherwise become aware of confidential information (whether it is designated as such or not)
about the NAEPI Group’s activities, Intellectual Property, plans and finances and about its
employees, consultants, suppliers, customers and other Persons, which the NAEPI Group has dealings
with (collectively, the “Confidential Information”).

12.2 All originals, copies and other forms of Confidential Information, however and whenever
produced, shall be the sole property of NAEPI, not to be removed from the premises or custody of
NAEPI, except in the normal course of business, without in each instance first obtaining written
consent or authorization of NAEPI. The Executive hereby assigns and agrees to assign to NAEPI all
of the Executive’s right, title and interest in and to all Intellectual Property, and agrees that
all Intellectual Property constitutes the exclusive property of NAEPI.

12.3 The Executive represents and warrants to NAEPI that (i) the Executive’s continued employment
with NAEPI will not breach any agreement or other obligation with respect to the confidential or
proprietary information of a third party; and (ii) the Executive is not bound by any written or
oral agreement with any third party that conflicts with the Executive’s employment with NAEPI. The
Executive agrees that, during the Executive’s employment with NAEPI, he shall not improperly bring
to NAEPI or use any trade secrets or confidential or proprietary information of any third party or
otherwise knowingly infringe on the proprietary rights of any third party.

12.4 At all times, during and after the cessation of employment (regardless of the reason for
cessation) with NAEPI, the Executive agrees that he shall:

	 	(a)	 	not, except in the proper course of his duties with NAEPI, divulge to any
person; and
	 
	 	(b)	 	use his best endeavours to prevent the publication or disclosure of,

any Confidential Information except where the Confidential Information:

	 	(a)	 	is in the public domain;
	 
	 	(b)	 	is required to be disclosed by the Executive under law; or
	 
	 	(c)	 	was already known to the Executive, prior to his employment with NAEPI.

12.5 The obligations set out in this Clause 12 are in addition to any obligations the Executive has
under statute and in addition to the fiduciary obligations owed by the Executive to the NAEPI
Group.

 

5

13. TERMINATION

13.1 The Executive may, at any time, by not less than three (3) months advance written notice,
terminate this Agreement and resign from his employment with NAEPI. In the event of the Executive
giving notice in accordance this Clause NAEPI may, at its discretion, immediately terminate the
Executive’s employment and this Agreement at any time during the notice period, provided that NAEPI
pay the Executive the pro-rata Annual Base Salary that would have been earned by the Executive from
the Termination Date through to the end of the notice period. If the Executive provides notice of
his resignation with the end of the notice period falling on March 31 or thereafter and NAEPI
elects to earlier terminate such that the Termination Date is prior to March 31, NAEPI agrees to
pay to the Executive the full year bonus under the NAEPI Short Term Bonus Scheme that the Executive
would have received had the Executive worked the entirety of the fiscal year, notwithstanding the
fact that the Executive will not be employed on the date on which the bonus is distributed.

13.2 The Executive may retire as of June 30, 2008 and if so, the Executive agrees to provide NAEPI
with not less than three (3) months advance written notice of his retirement date. In such event,
the Executive shall receive the payments specified in Clauses 13.1 and 13.4. After June 30, 2008,
the Executive shall continue to be a service provider of NAEPI up to and including November 30,
2008 (this period of time shall be referred to as the “Transition Period”). During the Transition
Period the Executive shall not accept employment or significant consulting work with a competitor
of the NACG Group, and shall be reasonably available (on an occasional and as needed basis) to
provide advice and assistance to NAEPI and to the Executive’s replacement. The Executive shall be
not entitled to any compensation or benefits during the Transition Period, provided however, any
options the Executive holds to purchase NACG Holdings Inc. common shares shall continue to vest
during the Transition Period in accordance with the terms of the Share Option Plan and relevant
employee option agreement.

     13.3 NAEPI may immediately terminate this Agreement and the employment of the Executive at any time
without prior notice and without severance, for the following reasons:

	 	(a)	 	death of the Executive; or
	 
	 	(b)	 	any reason which constitutes just cause at common law and which shall include:

	 	(i)	 	any serious or persistent breach by the Executive of any of the
material provisions of this Agreement; or
	 
	 	(ii)	 	grave misconduct or wilful neglect in the discharge of his
duties.

13.4 In the event of termination of this Agreement pursuant to Clauses 13.1 or 13.3, the Executive
shall not be entitled to any severance or compensation, save and except only for any payment
required under Clause 13.1, the payment of the pro rata Annual Base Salary earned but unpaid for
services rendered up to and including the Termination Date, plus any accrued and unused vacation
and properly incurred and reimbursable expenses.

13.5 NAEPI may, for any reason other than just cause, immediately terminate the Executive’s
employment and this Agreement and shall pay the Executive within ten (10) days of the Termination
Date:

	 	(a)	 	the pro rata Annual Base Salary earned but unpaid for services rendered up to
the Termination Date, accrued and unused vacation and properly incurred and
reimbursable expenses; and

 

6

	 	(b)	 	a payment equal to 90% of the target bonus set for the Executive under the then
NAEPI Short Term Bonus Scheme multiplied by the number of days in the current fiscal
year prior to the Termination Date, divided by three hundred and sixty five (365).

     In addition, and subject to Clauses 13.7 and 13.8, NAEPI shall pay the Executive within ten
(10) days of the Termination Date, a retiring allowance equal to:

	 	(a)	 	one (1) times the Executive’s then Base Salary if the Termination Date is on or
prior to the 5th anniversary of the Start Date; or
	 
	 	(b)	 	one and a quarter (11/4) times the Executive’s then Base Salary if the
Termination Date is after the 5th anniversary of the Start Date and on or
prior to the 10th anniversary of the Start Date; or
	 
	 	(c)	 	one and a half (11/2) times the Executive’s then Base Salary if the Termination
Date is after the 10th anniversary of the Start Date.

13.6 In the event of termination of this Agreement pursuant to Clause 13.5 and if the Termination
Date is after the conclusion of NAEPI’s fiscal year but prior to the payout by NAEPI of bonuses
under the NAEPI Short Term Bonus Scheme for the prior fiscal year, NAEPI further agrees to pay to
the Executive any bonus earned and owing to him under the NAEPI Short Term Bonus Scheme for the
fiscal year prior to the Termination Date.

13.7 The above payments in Clauses 13.5 and 13.6 shall be subject to required withholdings and the
return by the Executive of all of the NACG Group’s property, and in exchange for the payments the
Executive agrees to sign and provide to the NACG Group a full and final release with respect to his
employment and the termination of his employment.

13.8 If, upon termination of this Agreement and the cessation of the Executive’s employment and
regardless of the reason, the Executive is a director or officer of any of the entities in the NACG
Group, the Executive agrees to immediately resign as a director or officer.

13.9 The Executive acknowledges that the group benefits as described in Schedule 3 of this
Agreement, provincial health care and long-term disability all cease as of the Termination Date,
regardless of the reason for cessation of employment. The Executive understands and agrees that
the NAEPI Group has no liability for any damages the Executive and his family may suffer as a
result of the cessation of benefits on the Termination Date.

14. RESTRICTIVE COVENANTS AFTER TERMINATION OF EMPLOYMENT

14.1 The Executive expressly agrees that, at any time for two (2) years after the termination of
this Agreement and the cessation of the Executive’s employment, regardless of the reason for
cessation of employment, the Executive shall not, directly or indirectly solicit, interfere with or
endeavour to entice away from NAEPI any person who is an employee or consultant of the NAEPI Group
provided that this Clause will not restrict the Executive from employing or causing to be employed
an employee or consultant of the NAEPI Group, who applies for a position outside NAEPI of his/her
own accord and without any input or interaction, either directly or indirectly, with the Executive
before the application is made.

 

7

15. PRIVACY

15.1 The Executive consents that:

	 	(a)	 	the personal data relating to the Executive may be maintained and stored by
NAEPI electronically or in any other form; and
	 
	 	(b)	 	the personal data relating to the Executive may be freely transferred and
shared between NAEPI and the entities in the NAEPI Group irrespective of where the
offices of such entities are physically located.

15.2 The Executive acknowledges and agrees that NAEPI has the right to collect, use and disclose
the Executive’s personal information for purposes relating to the Executive’s employment with
NAEPI, including:

	 	(a)	 	ensuring that the Executive is paid for the services performed for NAEPI;
	 
	 	(b)	 	administering any benefits to which the Executive is or may become entitled to,
bonus and/or rights to NAEPI common shares. This shall include the disclosure of the
Executive’s personal information to any insurance company and/or broker or to any
entity that manages or administers the benefits or bonus on behalf of NAEPI;
	 
	 	(c)	 	compliance with any regulatory reporting and withholding requirements relating
to the Executive’s employment, including required disclosure to shareholders;
	 
	 	(d)	 	enforcing NAEPI’s policies including those relating to the proper use of the
electronic communications network and to comply with applicable laws; and
	 
	 	(e)	 	in the event of a possible sale of NAEPI or any entity in the NAEPI Group,
disclosing to any potential acquiring organization the Executive’s personal information
solely for the purpose of determining the value of the NAEPI Group and their assets and
liabilities and to evaluate the Executive’s position in NAEPI. If the Executive’s
personal information is disclosed to any potential acquiring organization, NAEPI will
require the potential acquiring organization to agree to protect the privacy of the
Executive’s personal information in a manner that is consistent with any policy of
NAEPI dealing with privacy that may be in effect from time to time and/or any
applicable law that may be in effect from time to time.

16. GENERAL

16.1 NAEPI and the Executive consider the covenants, obligations and restrictions in this Agreement
to be reasonable in all circumstances of the engagement.

16.2 Each and every covenant, obligation and restriction and each and every part of this Agreement
shall be deemed to be severable and an independent covenant, obligation or restriction unless it
would defeat the purpose of this Agreement.

16.3 This Agreement shall be governed by and interpreted in accordance with the laws of the
province of Alberta and the parties hereby attorn to the jurisdiction of the courts of the province
of Alberta.

 

8

16.4 Any waiver by either party of any breach or non-observance of this Agreement will not be
deemed to be a waiver of any other breach or any other non-observance.

17. ALTERNATIVE DISPUTE RESOLUTION

17.1 Unless a party to this Agreement has complied with Clauses 17.2 to 17.5, that party may not
commence court proceedings or arbitration relating to any dispute arising from this Agreement
except where that party seeks urgent interlocutory relief in which case that party need not comply
with this Clause before seeking such relief. Where a party to this Agreement fails to comply with
Clauses 17.2 to 17.5, the other party to the Agreement need not comply with this Clause before
referring the dispute to arbitration or commencing Court proceedings relating to that dispute.

17.2 All questions or differences whatsoever which at any time may arise between the parties or
their respective representative with respect to this Agreement or to the subject matter of this
Agreement or arising out of or in relation thereto and whether as to construction or otherwise will
be initially raised with the President or the Executive as the case may require. The President and
the Executive will seek within 30 days to resolve the issue and in doing so will act in good faith
and use their reasonable best efforts.

17.3 If the dispute is not resolved under Clause 17.2, a party to this Agreement must give written
notice to the other party designating as its representative in negotiations relating to the dispute
a person with authority to settle the dispute and the other party must promptly give notice in
writing to the other party designating as its representative in negotiations relating to the
dispute a person with similar authority.

17.4 The designated persons must, within 14 days of the last designation required by Clause 17.3,
following whatever investigations each deems appropriate, seek to resolve the dispute.

17.5 If the dispute is not resolved within the following 14 days (or within such further period as
the representatives may agree is appropriate) the parties must attempt to settle the dispute by the
process of mediation. Within a further period of 14 days the parties must select a mediator from a
list of three names of mediators (who hold the Chartered Mediation designation, awarded by the ADR
Institute of Canada) provided by the Alberta Arbitration & Mediation Society, and the mediation
must be conducted in good faith and in accordance with procedures for the mediation of commercial
disputes generally in Canada and specifically in Alberta.

17.6 The purpose of any exchange of information or documents or the making of any offer of
settlement pursuant to this Clause is to attempt to settle the dispute between the parties. No
party may use directly or indirectly any information or documents obtained through the dispute
resolution process established by this Clause for any other purpose than in an attempt to settle a
dispute between that party and other parties to this Agreement.

17.7 If the time established by or agreed under Clause 17.5 for agreement on a dispute resolution
process expires, any party which has complied with the provisions of Clauses 17.2 to 17.5 may in
writing terminate the dispute resolution process provided for in those Clauses and may then refer
the dispute to arbitration or commence Court proceedings relating to the dispute.

18. NOTICES

18.1 Any notice to be given under this Agreement must be in writing and may be left at or sent by
prepaid registered mail or by facsimile addressed, in the case of NAEPI, to its registered office
or principal place of business for the time being and in the case of the Executive delivered
personally or to

 

9

his last known place of residence or business. Any notice given by post will be deemed to have
been served at the expiration of 48 hours after posting and any notice given by facsimile will be
deemed to have been received when the facsimile transmission has been complete.

19. SURVIVAL

19.1 The provisions of Clauses 12, 13, 14, 15, 16, 17 and 18 and the Executive’s fiduciary
obligations shall survive the termination of this Agreement and the cessation of the Executive’s
employment, regardless of the reason for such cessation.

20. LEGAL FEES

20.1 NAEPI will bear and is responsible for the reasonable legal fees incurred by the Executive
only in connection with the execution of this Agreement.

	 	 	 	 	 	 	 
	 	 	NORTH AMERICAN PARTNERS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:	 	/s/ RODNEY JOHN RUSTON	 	 
	 

	 	 	 	 

Rodney John Ruston
	 	 
	 

	 	 	 	President and CEO	 	 

Signed in the presence of:

	 	 	 	 	 	 	 
	/s/
[Illegible]
 

	 	 	 	/s/ VINCENT JEAN GALLANT
 

	 	 
	Witness

	 	 	 	VINCENT JEAN GALLANT

	 	 

 

 

SCHEDULE 1

Position Description

Job Title: Vice President, Corporate

Division/Department: Executive

Reports to (Title): President & CEO

Location: Acheson

	 	 	 	 	 
	Type of

position:

	 	Shift:
	 	Band:
	 
	 	 	 	 
	þ Full-time Salary
	 	 	 	 
	 
	 	 	 	 
	o Part-time Salary
	 	 	 	 
	 
	 	 	 	 
	 ̈ Full-time Hourly

	 	 	 	Status:
	 
	 	 	 	 
	o Part-time Hourly

	 	Hours of Work:
	 	þ Exempt
	 
	 	 	 	 
	o Temporary

	 	 	 	o Nonexempt
	 
	 	 	 	 
	expiry date:
	 	 	 	 
	 
	 	 	 	 
	o COOP/Intern
	 	 	 	 

Accountabilities:

	 	§	 	The incumbent is accountable to the President & CEO and is accountable for an operations budget and direct reports
including: Coordinator, Stakeholder Relations; Manager, Business Improvement, and Corporate Assistant, as well as periodic
contractors/consultants.
	 
	 	§	 	Communication of corporate vision, mission, business imperatives, strategies, targets and successes.
	 
	 	§	 	Communication within business sector and across business units.
	 
	 	§	 	Provide leadership to instill safety and quality as a corporate value in the company culture.
	 
	 	§	 	Role model for Code of Conduct and Ethics.
	 
	 	§	 	Development and implementation of corporate policies and procedures; ensuring compliance with SOX.
	 
	 	§	 	Ensure proactive performance management and career development.
	 
	 	§	 	Role model behaviours required to sustain a culture that promotes continuous improvement.
	 
	 	§	 	Provide monthly business unit reporting to President/CEO and Board of Directors as required.
	 
	 	§	 	Participates in the bid review process and based on area of expertise, holds the right of veto on tender submission.
	 
	 	§	 	Oversee Corporate Initiatives and Internal Audit.
	 
	 	§	 	Develop and Approve Stakeholder and Public communications.
	 
	 	§	 	Identify, evaluate, prioritize and provide program management for corporate initiatives.
	 
	 	§	 	Act as public Spokesperson for the NAEPI Group
	 
	 	§	 	Ensure Regulatory compliance with Sarbanes-Oxley Act.

 

2

Responsibilities:

	 	§	 	Actively seek to build and maintain effective relationships with executives of NAEPI Group’s major investors.
	 
	 	§	 	Monitor the business environment in general in order to take the lead in the development of investment strategies
intended to maximise the NAEPI Group’s business status.
	 
	 	§	 	Proactively seek out innovative opportunities to expand the NAEPI Group’s position as a leader in its core business
activities.
	 
	 	§	 	Champion continuous business improvements.
	 
	 	§	 	Chair Internal Audit committee ensuring all NAEPI operations adhere to both internal and external standards and
regulations.
	 
	 	§	 	Obtain Sarbanes-Oxley signoff and meet SEC filing requirements.
	 
	 	§	 	Such other roles and tasks assigned, from time to time, to the VP-Finance by the President and/or the Board, including
(at no additional compensation) such titles and responsibilities as directed with respect to the other entities in the NACG
Group.
	 
	 	§	 	Liaise and communicate with Board to report on all operational functions of the Corporate Affairs division, including
any legal and internal auditing issues.
	 
	 	§	 	Manage legal affairs of the NAEPI Group, by building and maintaining effective relations with law firms.
	 
	 	§	 	Complete Corporate Secretary responsibilities.

Key Performance Indicators:

Refer to objectives and KPI’s set on an annual basis through discussion between the executive and the CEO

Work experience Requirements:

	 	§	 	Minimum ten years financial related experience gained through leading and managing areas of investor relations, SOX
compliance, internal audits, legal affairs, corporate secretary, and corporate communications, preferably in a public company
structure.
	 
	 	§	 	Industrial construction and/or mining industry experience preferred.

Education Requirements:

	 	§	 	Related Bachelor’s degree or equivalent experience in Corporate Affairs.

Knowledge, Skills, and Abilities Requirements:

	 	§	 	Truly a team player who can motivate others on the team.
	 
	 	§	 	Requires the independent judgment to assess, innovate, improve and develop financial and accounting programs, policy
and procedures to aid in the administration of a diverse workforce covering several geographic and remote areas.
	 
	 	§	 	A strong ability to communicate and oversee policy, projects and administration where effecting

 

3

	 	 	 	change is a major issue.
	 
	 	§	 	Requires change management skills, conflict resolution skills and the ability to promote,
	 
	 	§	 	motivate and effect positive changes for the total organization.
	 
	 	§	 	Build trust and confidence with senior line executives of the businesses and serve as a confidant and sounding board
when needed.
	 
	 	§	 	Provide functional guidance to subordinate managers including their individual development.
	 
	 	§	 	Ability to develop and approve public and stakeholder communications regarding NAEPI activities, while maintaining a
positive public and private profile for the NAEPI Group.
	 
	 	§	 	Must have capability to monitor and support SOX compliance.

Manager Reviewed by:

Title:

Human Resources Approved by:

Title:

 

 

SCHEDULE 2

1. REGULAR REMUNERATION

1.1 The Executive’s current annual base salary (the “Annual Base Salary”) of $210,630.00, less
required withholdings, to be paid in accordance with NAEPI’s usual payroll practices.

1.2 The Executive shall continue to receive compensation in recognition of him using his private
vehicle for NAEPI business, which shall consist of a monthly payment of $800 (as amended and
adjusted from time to time). In addition, the Executive shall be reimbursed (NAEPI can cap, at its
discretion, the amount of the reimbursement) for or receive vehicle insurance paid for by NAEPI,
reasonable fuel costs and reasonable maintenance costs.

1.3 The Executive will be entitled to reimbursement for the cost of:

	 	(a)	 	annual dues to Federal and Provincial organisations, membership of which is
necessary to retain any qualifications related to his employment;
	 
	 	(b)	 	annual dues to any work related institute; and
	 
	 	(c)	 	reasonable fees and expenses to cover the annual costs of membership in the
Kinsman Sports Centre.

2. SHORT TERM BONUS

2.1 The Executive will be entitled to participate at Level 2 in the NAEPI Short Term Bonus Scheme,
as such level of participation and terms of the NAEPI Short Term Bonus Scheme are amended and
adjusted from time to time

3. LONG TERM INCENTIVE

3.1 The Executive has been granted five thousand (5,000) options to purchase NACG Holdings Inc.
common shares, at an exercise price of $100.00 per option.

3.2 In addition, the Executive will be entitled to be considered for future grants of options from
time to time by the Compensation Committee of the Board.

3.3 The exercise rights and terms of all options granted to the Executive shall be governed by the
relevant employee option agreement and the Share Option Plan, as amended from time to time.

3.4 The Executive shall be entitled to participate in any long term incentive plans adopted for
executives of NAEPI, in accordance with the terms of such plan or plans.

 

 

SCHEDULE 3

INSURANCE AND HEALTH SCHEME

	 	 	 
	BENEFIT	 	DESCRIPTION
	Life Insurance and
Accidental Death &
Dismemberment

	 	2 x the Executive’s annual base salary to a maximum benefit level of $300,000

	 	 	 	 	 
	Dependent Life

	 	•
	 	Spouse — $10,000
	 
	 	 	 	 
	 

	 	•
	 	Child — $5,000
	 
	 	 	 	 
	Extended Medical
	 	 	 	 
	 

	 	•
	 	80% Pay Direct Drug card on prescription drugs with no deductible
	 
	 	 	 	 
	 

	 	•
	 	100% of all other eligible expenses as listed below.
	 
	 	 	 	 
	 

	 	•
	 	Semi-private hospital room
	 
	 	 	 	 
	 

	 	•
	 	Auxiliary Hospital
	 
	 	 	 	 
	 

	 	•
	 	Home Care Nursing — maximum of $10,000/year
	 
	 	 	 	 
	 

	 	•
	 	Ambulance services
	 
	 	 	 	 
	 

	 	•
	 	Paramedical Services — $500/ registered/licensed practitioner annual maximum
	 
	 	 	 	 
	 

	 	•
	 	Psychologist, chiropractor, speech language pathologist, massage therapist, chiropodist/podiatrist, osteopath,
naturopath, Physiotherapy — $40 per visit to annual maximum of $600
	 
	 	 	 	 
	 

	 	•
	 	Acupuncture — $40 per visit to annual maximum of $500
	 
	 	 	 	 
	 

	 	•
	 	Hearing aids, $500 every 5 years
	 
	 	 	 	 
	 

	 	•
	 	Medical aids
	 
	 	 	 	 
	 

	 	•
	 	Vision care: Eyeglass lenses & frames, contact lenses, prescription industrial safety glasses, laser eye surgery.

$250 maximum every 2 years — adults and children over 18;

$250 maximum every 1 year — children under age 19.
	 
	 	 	 	 
	 

	 	•
	 	$50 eye exams (age 19-65 where not covered by the provincial medical plan)
	 
	 	 	 	 
	 

	 	•
	 	Emergency Out of Province/Canada
	 
	 	 	 	 
	 

	 	•
	 	Travel Assistance
	 
	 	 	 	 
	 

	 	•
	 	Survivor benefit for up to 12 months.

 

Schedule 3
Page 2 of 2

 

	 	 	 	 	 
	Dental

	 	•
	 	80% Basic Services, 50% Major Services, 50% Orthodontics
	 
	 	 	 	 
	 

	 	•
	 	No annual deductible
	 
	 	 	 	 
	 

	 	•
	 	$2,000 annual maximum per person for Basic and Major Restorative combined.
	 
	 	 	 	 
	 

	 	•
	 	$2,500 lifetime maximum per child (under age 19) for Orthodontics
	 
	 	 	 	 
	 

	 	•
	 	Current Dental Fee guide for Generalist Practitioners
	 
	 	 	 	 
	 

	 	•
	 	Basic Services:
	 
	 	 	 	 
	 

	 	•
	 	Cleanings, exams, extractions, fillings, endodontics, periodontics, oral surgery, x-rays, scaling, relining, repairing
& rebasing of dentures
	 
	 	 	 	 
	 

	 	•
	 	Major Services:
	 
	 	 	 	 
	 

	 	•
	 	Caps, crowns, bridges, complete dentures and onlays
	 
	 	 	 	 
	 

	 	•
	 	Ortho Services:
	 
	 	 	 	 
	 

	 	•
	 	Orthodontic appliances and services

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