Document:

exv10w8

 

Exhibit 10.8

EMPLOYMENT AGREEMENT

between

NORTH AMERICAN ENERGY PARTNERS INC.

and

ROBERT GEORGE HARRIS

 

 

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)	 	Robert George Harris, an individual, residing at 11717 – 71A Avenue, Edmonton,
Alberta, T6E 2W5, Canada (the “Executive”)

3. TITLE

3.1 The position title shall be Vice President Human Resources, Health, Safety & Environment.

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 Human Resources, Health, Safety
& Environment, 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.

 

 

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

	 	Means June 19, 2006.
	 
	 	 
	“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 Human
Resources, Health, Safety & Environment 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 Human Resources,
Health, Safety & Environment and shall perform the duties on a full-time basis as particularized in
the attached Schedule 1, and 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.

 

 

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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 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.

 

 

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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.

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.

 

 

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

13.4 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
	 
	 	(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 13.6 and 13.7, NAEPI shall pay the Executive within ten
(10) days of the Termination Date, a retiring allowance equal to one and a quarter
(11/4) times the Executive’s then Annual Base Salary.

 

 

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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 and this Agreement.

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 2 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.

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

 

 

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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.

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

 

 

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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 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.

 

 

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	 	 	NORTH AMERICAN PARTNERS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:	 	/s/ RODNEY JOHN RUSTON	 	 
	 

	 	 	 	 

Rodney John Ruston
	 	 
	 

	 	 	 	President and CEO	 	 

Signed in the presence of:

	 	 	 
	/s/
[Illegible]

	 	/s/ ROBERT GEORGE HARRIS
	 

	 	 
	Witness

	 	ROBERT GEORGE HARRIS

 

 

SCHEDULE 1

Position Description

Job Title: Vice President, Human Resources, Health, Safety &Environment

Division/Department: Executive

Reports to (Title): President & CEO

Location: Acheson

	 	 	 	 	 	 	 
	Type of position:

	 	 	 	Shift:	 	 
	 
	þ Full-time Salary

	 	 	 	 	 	Band:
	 
	 

	 	 	 	Hours of Work:
	 	Status:
	oPart-time Salary
	 	 	 	 	 	 
	 
	o Full-time Hourly

	 	 	 	 	 	þExempt
	 
	o Part-time Hourly

	 	 	 	 	 	o Nonexempt
	 
	oTemporary 
	 	 	 	 	 	 
	 
	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: Lead Position, Human Resources; Lead Position, Health, Safety & Environment; Industrial Relations Specialist; and
Office Manager, Acheson, 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.
	 
	 	§	 	Develop industrial and labour relations corporate strategies.
	 
	 	§	 	Develop programs to achieve safety targets that result in the Company recognized as industry leaders in HS&E.
	 
	 	§	 	Ensure regulatory compliance with OH&S and other regulatory bodies, equipment certifications/testing, and employment
legislation.
	 
	 	§	 	Develops corporate human resource strategy that aligns with business objectives encompassing total compensation,
workforce planning, retention, training, performance management, wellness and succession planning.
	 
	 	§	 	Facilitates partnerships to secure labour requirements.

 

 

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	 	§	 	Support the development of systems and strategies to ensure efficient and effective payroll & benefit management.
	 
	 	§	 	Implement effective processes resulting in workforce planning and forecasting.
	 
	 	§	 	Ensure effective administrative and building services in the Acheson office including centralized corporate Records
Management.
	 
	 	§	 	Develop employee communication strategy and plan.

Responsibilities:

	 	§	 	Champions and oversees the development, implementation, interpretation and application of corporate Human Resources;
Industrial Relations and Health, Safety & Environment policies, procedures and programs.
	 
	 	§	 	Identifies legal requirements and government reporting regulations affecting Human Resources functions. Monitors
exposure of the company and protects the interest of employees and the company. Directs the preparation of information
requested or required for compliance. Approves all information submitted. Acts as primary contact with labour counsel and
outside government agencies.
	 
	 	§	 	Ensures organizational development programs including performance management, training and succession planning are
implemented to address growth of individuals.
	 
	 	§	 	Oversees the development of a corporate training program that address business plan priorities covering field
technical, supervisory, management and competency development. Champion corporate conferences and employee meetings.
	 
	 	§	 	Establishes employee relations and internal communications best practices necessary to establish a positive
employer-employee relationship and promote a high level of employee morale.
	 
	 	§	 	Oversee the development and maintenance of a compensation structure and policies, including employee benefit programs
and services and company reward and recognition programs. Ensure and monitor for effectiveness and cost containments.
	 
	 	§	 	Approves the use of Human Resources, Industrial Relations and HS&E consultants, benefit brokers, group benefit/
insurance carriers, RRSP administrators, training specialists, and other outside sources.
	 
	 	§	 	Directs the preparation and maintenance of such reports as are necessary to carry out and monitor the effectiveness of
the Human Resources, Industrial Relations and HS&E programs, policies, and procedures. Prepares periodic reports to executive
management, as necessary or requested.
	 
	 	§	 	Facilitate negotiation of collective agreements and grievance/arbitration management.
	 
	 	§	 	Develop and implement company wide safety standards and HR and I/R practices.

Key Performance Indicators:

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

 

 

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Work experience Requirements:

	 	§	 	Minimum ten years experience leading and managing areas of human resources, Health, Safety and Environment, payroll,
Industrial Relations, training and development, administration, internal communications, and records management.
	 
	 	§	 	Experience managing and negotiating with a complex unionized labour force.
	 
	 	§	 	Industrial construction and/or mining industry experience preferred.

Education Requirements:

	 	§	 	Bachelor’s degree or equivalent experience in Human Resources.
	 
	 	§	 	Specialized training in organizational planning, compensation, and preventive labour relations.
	 
	 	§	 	Certified Human Resource Professional (CHRP) designation is an asset.

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 human resource 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 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 leadership and functional guidance to subordinate managers including their individual development.
	 
	 	§	 	Understand the trade-offs between employees and company profitability in the development of cost effective, human
resources strategies.

Manager Reviewed by:

Title:

Human Resources Approved by:

 

 

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Title:

 

 

SCHEDULE 2

21. REGULAR REMUNERATION

21.1 The Executive’s current annual base salary (the “Annual Base Salary”) of $210,000.00, less
required withholdings, to be paid in accordance with NAEPI’s usual payroll practices.

21.2 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.

21.3 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.

22. SHORT TERM BONUS

22.1 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

23. LONG TERM INCENTIVE

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

23.2 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.

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

23.4 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 servicesexv10w9

 

Exhibit 10.9

EMPLOYMENT AGREEMENT

between

NORTH AMERICAN ENERGY PARTNERS INC.

and

CHRISTOPHER JAMES HAYMAN

 

 

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)	 	Christopher James Hayman, an individual, residing at 179 Heritage Drive, St.
Albert, Alberta, T8N 6S2 (the “Executive”)

3. TITLE

3.1 The position title shall be Vice President, Supply Chain.

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

	 	Means January 17, 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 Vice President,
Supply Chain 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, Supply Chain 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 the 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 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 rendered up to and including the Termination Date, plus any accrued and unused vacation
and properly incurred and reimbursable expenses.

13.4 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
	 
	 	(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 13.6 and 13.7, 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

 

6

	 	(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.

13.5 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 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.

13.6 The above payments in Clauses 13.4 and 13.5 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.

13.7 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 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.

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.

 

7

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.

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.

 

8

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 17.5 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 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.

 

9

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/ CHRISTOPHER JAMES HAYMAN	 	 
	 	 	 	 	 
	Witness	 	CHRISTOPHER JAMES HAYMAN	 	 

 

 

SCHEDULE 1

Position Description

Job Title: Vice President, Supply Chain

Division/Department: Executive

Reports to (Title): President & CEO

Location: Acheson

	 	 	 	 	 
	Type of position:

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

	 	Hours of Work:
	 	Status:
	 
	 	 	 	 
	o Full-time Hourly

	 	 	 	þ Exempt
	 
	 	 	 	 
	o Part-time Hourly

	 	 	 	o Nonexempt
	 
	 	 	 	 
	o Temporary
	 	 	 	 
	 
	 	 	 	 
	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: Lead, Equipment and Lead, Procurement, 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.
	 
	 	§	 	Provides fully functional and maintained equipment to Operations in accordance with the Blueprint.
	 
	 	§	 	Provides leadership and strategic direction for the procurement of all aspects of supply chain management including all
heavy and light equipment and associated parts and service.
	 
	 	§	 	Ensure “best value” in procurement transactions – balancing between quality and cost.
	 
	 	§	 	Schedule Equipment fleet to optimize availability to meet operational (Blueprint) requirements.
	 
	 	§	 	Meet heavy equipment and light vehicle availability targets.
	 
	 	§	 	Ensure proper management of warranty for equipment.

 

2

Responsibilities:

	 	§	 	Manage the supply chain functions of NAEPI to:

	 	§	 	Provide accurate and timely actual and forecast related to equipment availability and needs and procurement
performance reporting to the Board, the President and the NAEPI Executive;
	 
	 	§	 	Provide each general manager and Divisional managers with accurate and timely procurement performance reporting
covering the individual areas of responsibility for those managers;
	 
	 	§	 	Develop effective tools capable of providing meaningful forecasting and performance monitoring, including but not
limited to, the development of and effective use of equipment and maintenance planning models as well as procurement
processing;

	 	§	 	Negotiates purchase agreements that align with the requirements of the organization and strategies for leveraging
buying power.
	 
	 	§	 	Provides information and participates in finance related activities regarding procurement and equipment decisions.
	 
	 	§	 	Maintain a positive public and private profile for the NAEPI Group, in particular, related to the equipment and
supplier communities;
	 
	 	§	 	Ensures mechanical and servicing resources to maintain optimal availability during project execution.
	 
	 	§	 	Executes equipment sourcing, acquisition, and disposition.

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 experience leading and managing areas of equipment maintenance, equipment acquisitions and disposals,
equipment scheduling, procurement, sub-contracts management, and supplier relations.
	 
	 	§	 	Industrial construction and/or mining industry experience preferred.

Education Requirements:

	 	§	 	Related Bachelor’s degree or equivalent experience.
	 
	 	§	 	Specialized training in contracts, equipment maintenance, planning and logistics, as well as procurement analysis and
planning preferred.

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 supply chain programs, policy and procedures
to aid in the administration of a diverse workforce covering 

 

3

	 	 	 	several geographic and remote areas.

	 	§	 	A strong ability to communicate and oversee policy, projects and administration where effecting 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 leadership and functional guidance to subordinate managers including their individual development.
	 
	 	§	 	Strong interpersonal skills and ability to work with both internal and external operations and suppliers, in their
environment.
	 
	 	§	 	Ability to develop, coordinate and execute value stream improvement initiatives.

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 $212,800.00, 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 at the
Glendale Golf and Country Club.

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

	 	 	 
	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 services

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