Document:

exv10w1

Exhibit 10.1

McJunkin Red Man Holding Corporation

Director Compensation Plan

Effective as of November 10, 2011

This Director Compensation Plan (this “Plan”) of McJunkin Red Man Holding Corporation, a
Delaware corporation (the “Company”), summarizes the compensation for non-employee directors of
the Company. The compensation that this Plan provides shall replace any prior compensation
arrangements with non-employee directors prior to the effective date of this Plan. Any
Participant’s acceptance of compensation under this Plan shall be deemed as the Participant’s
acceptance of this Plan’s modification to those prior arrangements.

	 	1.	 	Definitions, Administration and Construction

	 	(a)	 	The following capitalized terms used in this Plan shall have the
following meanings given to each of them in this Section 1(a):

	 	 	 	“Annual Governance Cycle” means the period from the Board meeting immediately
following the Company’s Annual Meeting of Stockholders until the next such
meeting the following year, except that prior to an initial public offering of
the Common Stock, the Annual Governance Cycle shall be from January 1 until
December 31 of each year. The Compensation Committee may make pro-rata
arrangements for the equity grants that this Plan provides to Participants to
take into account a change in the Annual Governance Cycle from a calendar year
to a different period based upon the date of the Company’s Annual Meeting of
Stockholders, it being the intent that the Company would not pay Participants
twice for any overlapping periods.
	 
	 	 	 	“Board” means the Board of Directors of the Company;
	 
	 	 	 	“Committee” means a committee of the Board;
	 
	 	 	 	“Common Stock” means Company Common Stock, $.01 par value per share;
	 
	 	 	 	“Compensation Committee” means the Compensation Committee of the Board;
	 
	 	 	 	“Equity Plan” means the Company’s 2007 Stock Option Plan and 2007 Restricted
Stock Plan or, in each case, any successor plan, including any long term
incentive or equity plan that may allow for the issuance of other forms of
equity awards;
	 
	 	 	 	“Goldman Participants” are Participants who are employees of Goldman Sachs &
Co. and its affiliates while Goldman Sachs & Co. and its affiliates own an
equity interest in the Company;
	 
	 	 	 	“Participant” means a director of the Company who is not an employee of the
Company; and
	 
	 	 	 	“Secretary” means the Secretary of the Company.

	 	(b)	 	The Compensation Committee shall administer this Plan. The
Compensation Committee may adopt rules for the administration of this
Plan as it may deem necessary or advisable. The Compensation
Committee shall administer this Plan in accordance with Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), for
deferrals made after December 31,

 

 

	 		 	2004. The Compensation Committee
has full and absolute discretion in the exercise of each and every
aspect of the rights, power, authority and duties retained or granted
it under this Plan, including the authority to determine all facts, to
interpret this Plan, to apply the terms of this Plan to the facts
determined, to make decisions based upon those facts and to make any
and all other decisions required of it by this Plan, such as the right
to benefits, the correct amount and form of benefits, the
determination of any appeal, the review and correction of the actions
of any prior administrative committee, and the other rights, powers,
authority and duties specified in this paragraph and elsewhere in this
Plan. Notwithstanding any provision of law, or any explicit or
implicit provision of this document, any action taken, or finding,
interpretation, ruling or decision made by the Compensation Committee
in the exercise of any of its rights, powers, authority or duties
under this Plan shall be final and conclusive as to all parties,
including without limitation all Participants, former Participants and
beneficiaries, regardless of whether the Compensation Committee or one
or more of its members may have an actual or potential conflict of
interest with respect to the subject matter of the action, finding,
interpretation, ruling or decision. No final action, finding,
interpretation, ruling or decision of the Compensation Committee shall
be subject to de novo review in any judicial proceeding. No final
action, finding, interpretation, ruling or decision of the
Compensation Committee may be set aside unless it is held to have been
arbitrary and capricious by a final judgment of a court having
jurisdiction with respect to the issue.
	 
	 	(c)	 	Except as expressly stated to the contrary, references in this Plan to
“including” mean “including, without limitation” and to “persons” mean
natural persons and legal entities.

	 	2.	 	Retainers.

	 	(a)	 	From time to time, the Board (or at its direction, the Compensation
Committee) may set retainers for Participants for their service as a
member of the Board or one or more of its Committees. Retainers for a
Participant, including those for Committee chairs, may vary from those
of other Participants. The current retainers for Participants are
listed on Exhibit A.
	 
	 	(b)	 	Annual retainers are intended to compensate Participants for each
Annual Governance Cycle. A Participant who joins the Board during an
Annual Governance Cycle shall receive annual retainers that are
pro-rated based on the number of whole or partial months of an Annual
Governance Cycle in which the Participant first serves.
	 
	 	(c)	 	The Company shall pay to each Participant annual retainers in cash in
four quarterly installments for service in the prior quarter. The
Company shall pay each installment to the Participant on the first
business day of the first month of each quarter.

	 	3.	 	Meeting Fees.

	 	(a)	 	From time to time, the Board (or at its direction, the Compensation
Committee) may set meeting fees for Participants for their attendance
at meetings of the Board or one or more of its Committees. The amount
of the meeting fees for a Participant, including those for Committee
chairs, may vary from those of other Participants. The current
meeting fees for Participants are listed on Exhibit A.
	 
	 	(b)	 	The meeting fees shall be accrued upon the Participant’s attendance at
the applicable meeting and payable on the first business day of the
first month of the quarter following the meeting.
	 
	 	(c)	 	Meeting fees shall be paid in cash.

 

 

	4.	 	Equity Grants.

From time to time, the Board (or at its direction, the Compensation Committee) may make grants of
Common Stock or Common Stock derivatives (such as stock options or restricted stock awards) to
Participants as compensation for their service on the Board with such terms and conditions as are
stated in the grant. The grant shall be made pursuant to this Plan and the terms of the Equity
Plan. The current equity grants are summarized on Exhibit A.

	5.	 	Expenses

Upon submission of appropriate receipts, invoices or vouchers as the Company may reasonably
require, the Company shall reimburse each Participant for all reasonable out-of-pocket expenses
that the Participant may incur in connection with the Participant’s performance of the
Participant’s duties as a director. With respect to travel arrangements to Board functions, the
Company will either reimburse first class air travel or reimburse private air travel at the rate of
first class board travel that the Participant would have utilized but for the private air travel.
With respect to hotel accommodations for Board functions, the Company will either reimburse the
Participant for hotels that the Company arranges or, if the Participant does not utilize these
hotels, at the rate that these hotels are charging the Company.

	6.	 	Goldman Participants

The Goldman Participants have informed the Company that, pursuant to Goldman Sachs’ policies,
Goldman Participants may not receive individual compensation for service on the Board. Therefore,
the Company shall pay the Goldman Participants the compensation pursuant to this Plan as custodian
for the appropriate affiliates of Goldman Sachs & Co.

	7.	 	General

	 	(a)	 	None of this Plan, the Equity Plan, the grant of any award under this
Plan or the Equity Plan or any other action taken pursuant to this
Plan or the Equity Plan shall constitute or be evidence of any
agreement or understanding, express or implied, that the Company will
retain a Participant for any period of time or at any particular rate
or amount of compensation.
	 
	 	(b)	 	Except by the laws of decent and distribution in the event of a
Participant’s death, the rights and benefits of this Plan may not be
assigned or otherwise transferred. A Participant shall cease to be a
Participant under this Plan upon the Participant’s termination of his
or her directorship with the Company whether by death, disability,
retirement, resignation or removal.
	 
	 	(c)	 	Any notice to the Company that this Plan requires shall be in writing,
addressed to the Secretary and be effective when the Secretary
receives the notice.
	 
	 	(d)	 	This Plan and any determination or action taken respecting this Plan
shall be governed by and construed in accordance with the laws of the
State of Delaware, without reference to its law of conflicts of law.

 

 

Exhibit A

Board Retainers as of November 10, 2011

Annual Board retainer = $80,000

Equity grants as of November 10, 2011

Stock options or restricted stock to be granted at the discretion of the Board of Directors.exv10w2

Exhibit 10.2

INDEMNIFICATION AGREEMENT

     This Indemnification
Agreement (“Agreement”) is made as of
               , 2011, by and between
McJunkin Red Man Holding Corporation, a Delaware corporation (the “Company”), and
               
(“Indemnitee”).

RECITALS

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company;

     WHEREAS, in order to induce Indemnitee to continue to provide services to the Company, the
Company wishes to provide for the indemnification of, and advancement of expenses to, Indemnitee to
the maximum extent permitted by applicable law;

     WHEREAS, the Company’s Certificate of Incorporation (the “Charter”) and Bylaws (the
“Bylaws”) require indemnification of the officers and directors of the Company [and
employees of the Company that are licensed to practice law (“Counsel”)] and Indemnitee may
also be entitled to indemnification pursuant to the General Corporation Law of the State of
Delaware (the “DGCL”);

     WHEREAS, the Bylaws and the DGCL expressly provide that the indemnification provisions set
forth therein are not exclusive, and thereby contemplate that contracts may be entered into between
the Company and members of the board of directors, officers and other persons with respect to
indemnification;

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for the Company’s directors, officers, employees, agents and fiduciaries, [and employed
lawyers insurance covering certain liabilities which may be incurred by its Counsel in the
performance of their professional legal services for the Company (“E&O Insurance”),] the
significant and continual increases in the cost of such insurance and the general trend of
insurance companies to reduce the scope of coverage of such insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, [Counsel,] employees, agents and fiduciaries
to expensive litigation risks at the same time as the availability and scope of coverage of
liability insurance provide increasing challenges for the Company;

     WHEREAS, Indemnitee does not regard the protection currently provided by applicable law, the
Company’s governing documents and available insurance[, including E&O Insurance,] as adequate under
the present circumstances, and the Indemnitee and certain other directors, officers, [Counsel,]
employees, agents and fiduciaries of the Company may not be willing to continue to serve in such
capacities without additional protection;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the
increased difficulty in attracting and retaining highly qualified persons such as Indemnitee is

 

 

detrimental to the best interests of the Company’s stockholders and that the Company should act to
assure such persons that there will be increased certainty of such protection in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from
undue concern that they will not be so indemnified; and

     WHEREAS, this Agreement is a supplement to and in furtherance of the indemnification provided
in the Bylaws and any resolutions adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Services to the Company. Indemnitee agrees to serve as an officer [or
Counsel] of the Company. Indemnitee may at any time and for any reason resign from such position
(subject to any other contractual obligation or any obligation imposed by operation of law), in
which event the Company shall have no obligation under this Agreement to continue Indemnitee in
such position. This Agreement shall not be deemed an employment contract between the Company (or
any of its subsidiaries or any Enterprise) and Indemnitee. The foregoing notwithstanding and
subject to Section 16 of this Agreement, this Agreement shall continue in force after Indemnitee
has ceased to serve as an officer [or Counsel] of the Company and will continue to provide
coverage, to the extent provided for in this Agreement, for matters that occurred while Indemnitee
served as an officer [or Counsel] of the Company.

     Section 2. Definitions

     As used in this Agreement:

          (a) “Corporate Status” describes the status of a person who is or was a director,
officer, employee, agent or consultant of the Company or of any other corporation, limited
liability company, partnership, joint venture, trust, employee benefit plan or other enterprise
which such person is or was serving at the request of the Company as a director, officer, employee,
agent, consultant or fiduciary.

          (b) “Enterprise” shall mean the Company and any other corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise of which
Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent,
consultant or fiduciary.

          (c) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, any federal, state, local or
foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments
under this Agreement, ERISA excise taxes and penalties, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing

-2-

 

to
prosecute or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding. Expenses also shall include (i) Expenses incurred in connection
with any appeal resulting from any Proceeding, including without limitation the premium, security
for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its
equivalent, and (ii) Expenses incurred by Indemnitee in connection with the interpretation,
enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise.
The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has
made written demand to the Company in accordance with this Agreement, all Expenses included in such
demand that are certified by affidavit of Indemnitee’s counsel as being reasonable shall be
presumed conclusively to be reasonable. Expenses, however, shall not include amounts paid in
settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

          (d) “Independent Counsel” means a law firm, or a partner (or, if applicable, member)
of such a law firm, that is experienced in matters of corporation law and neither presently is, nor
in the past two years has been, retained to represent: (i) the Company or Indemnitee in any matter
material to either such party (other than with respect to matters concerning the Indemnitee under
this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any
other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement.

          (e) The term “Proceeding” shall include any threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing
or any other actual, threatened or completed proceeding, whether brought in the right of the
Company or otherwise and whether of a civil, criminal, administrative legislative, or investigative
(formal or informal) nature, including any and all appeals therefrom, in which Indemnitee was, is
or will be involved as a party, potential party, non-party witness or otherwise by reason of the
fact that Indemnitee is or was a director, [Counsel,] consultant or officer of the Company, by
reason of any action taken by him or of any action on his part while acting as director, [Counsel,]
consultant or officer of the Company, or by reason of the fact that he is or was serving at the
request of the Company as a director, [Counsel,] consultant, officer, employee or agent of another
corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or
other enterprise, in each case whether or not serving in such capacity at the time any liability or
expense is incurred for which indemnification, reimbursement, or advancement of expenses can be
provided under this Agreement. If the Indemnitee believes in good faith that a given situation may
lead to or culminate in the institution of a Proceeding, such situation shall be considered a
Proceeding under this paragraph.

     Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened
to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the
right of the Company to procure a judgment in its favor (which is covered by Section 4 of this
Agreement). Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent

-3-

 

permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement
actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding
or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the Company and, in the case
of a criminal proceeding had no reasonable cause to believe that his conduct was unlawful.
Indemnitee shall not enter into any settlement in connection with a Proceeding without 10 days
prior notice to the Company.

     Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or
is threatened to be made, a party to or a participant in any Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be
indemnified to the fullest extent permitted by applicable law against all Expenses actually and
reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue
or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Company. No indemnification for Expenses shall be
made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall
have been finally adjudged by a court to be liable to the Company, unless and only to the extent
that the Delaware Court of Chancery (the “Delaware Court”) or any court in which the
Proceeding was brought shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnification for such expenses as the Delaware Court or such other court shall deem proper.

     Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
To the extent that Indemnitee is a party to and is successful, on the merits or otherwise, in any
Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company
shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him in
connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful,
on the merits or otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company shall indemnify Indemnitee against (a) all Expenses actually and reasonably
incurred by him or on his behalf in connection with each successfully resolved claim, issue or
matter and (b) any claim, issue or matter related to any such successfully resolved claim, issue or
matter. For purposes of this Section and without limitation, the termination of any claim, issue
or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter. Nothing in this Section 5 is intended to
limit Indemnitee’s rights provided for in Sections 3 and 4.

     Section 6. Indemnification For Expenses of a Witness. To the extent that Indemnitee
is, by reason of his Corporate Status, a witness or otherwise asked to participate in any
Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith. Nothing in this
Section 6 is intended to limit Indemnitee’s rights provided for in Sections 3 and 4.

     Section 7. Partial Indemnification. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of Expenses, but not,

-4-

 

however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion thereof to which Indemnitee is entitled.

     Section 8. Additional Indemnification.

          (a) Notwithstanding any provisions of Sections 3, 4, or 5, the Company shall indemnify
Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or is
threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the
Company to procure a judgment in its favor) against all Expenses, judgments, fines, penalties and
amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with such
Proceeding.

          (b) For purposes of Section 8(a), the meaning of the phrase “to the fullest extent permitted
by applicable law” shall include, but not be limited to:

               i. to the fullest extent permitted by the provision of the DGCL that authorizes or
contemplates additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL or such provision thereof; and

               ii. to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL adopted after the date of this Agreement that increase the extent to which a corporation may
indemnify its directors.

     Section 9. Exclusions. Notwithstanding any provision in this Agreement to the
contrary, the Company shall not be obligated under this Agreement to make any indemnity:

          (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance
policy or other indemnity provision, except with respect to any excess beyond the amount paid under
any insurance policy or other indemnity provision;

          (b) for any disgorgement of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company under Section 16(b) of the Securities Exchange Act of 1934,
as amended, or similar provisions of state statutory law or common law;

          (c) for claims initiated or brought by Indemnitee against the Company or its directors,
officers, employees or other indemnitees, except (i) with respect to actions or proceedings brought
to establish or enforce a right to receive Expenses or indemnification under this Agreement or any
other agreement or insurance policy or under the Charter or the Bylaws now or hereafter in effect
relating to indemnification, (ii) if the Board has approved the initiation or bringing of such
claim, or (iii) as otherwise required under Delaware law; or

          (d) for which payment is prohibited by applicable law.

     Section 10. Advances of Expenses. Notwithstanding any provision of this Agreement to
the contrary, the Company shall advance, to the extent not prohibited by applicable law, all
Expenses incurred by or on behalf of Indemnitee (or which Indemnitee determines are reasonably
likely to be paid or incurred by Indemnitee within three months) in connection with
any Proceeding, and such advancement shall be made within 20 days after the receipt by the
Company of a statement or statements requesting such advances (which shall include invoices

-5-

 

received by Indemnitee in connection with such Expenses but, in the case of invoices in connection
with legal services, any references to legal work performed or to expenditures made that would
cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the
invoice) from time to time, whether prior to or after final disposition of any Proceeding.
Advances shall be unsecured and interest free. Advances shall be made without regard to
Indemnitee’s ability to repay expenses and without regard to Indemnitee’s ultimate entitlement to
indemnification under the other provisions of this Agreement. Advances shall include any and all
reasonable Expenses incurred pursuing an action to enforce this right of advancement, including
Expenses incurred preparing and forwarding statements to the Company to support the advances
claimed. The Indemnitee shall qualify for advances upon the execution and delivery to the Company
of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes
to the fullest extent required by applicable law to repay the amounts advanced (without interest)
if and to the extent that it is ultimately determined by a court of competent jurisdiction in a
final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the
Company. No other form of undertaking shall be required other than the execution of this
Agreement. This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is
excluded pursuant to Section 9. The right to advances under this paragraph shall in all events
continue until final disposition of any Proceeding.

     Section 11. Procedure for Notification and Defense of Claim.

          (a) To obtain indemnification or advancement of Expenses under this Agreement, Indemnitee
shall submit to the Company a written request therefor. The omission by Indemnitee to notify the
Company hereunder will not relieve the Company from any liability which it may have to Indemnitee
hereunder, under the Charter, the Bylaws, any resolution of the Board providing for indemnification
or otherwise, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee
of any rights under this Agreement. The Secretary of the Company shall, promptly upon receipt of
such a request for indemnification, advise the Board in writing that Indemnitee has requested
indemnification.

          (b) The Company will be entitled to participate in any Proceeding at its own expense.

     Section 12. Procedure Upon Application for Indemnification.

          (a) Upon written request by Indemnitee for indemnification pursuant to Section 11(a), a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made in the specific case by Independent Counsel in a written opinion to the Board, a copy
of which shall be delivered to Indemnitee and, if it is so determined that Indemnitee is entitled
to indemnification, payment to Indemnitee shall be made within 10 days after such determination.
Indemnitee shall cooperate with the Independent Counsel making such determination with respect to
Indemnitee’s entitlement to indemnification, including providing to such counsel upon reasonable
advance request any reasonable documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary
to such determination. Any costs
or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so
cooperating with the Independent Counsel shall be deemed “Expenses” hereunder and shall be

-6-

 

borne by
the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification)
and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

          (b) The Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written
notice to the Company advising it of the identity of the Independent Counsel so selected. The
Company may, within 10 days after such written notice of Indemnitee’s selection shall have been
given, deliver to the Indemnitee a written objection to such selection; provided,
however, that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2
of this Agreement, and the objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection, the person or firm so selected shall act as
Independent Counsel. If such written objection is so made and substantiated, the Independent
Counsel so selected may not serve as Independent Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If, within 20 days after
the later of submission by Indemnitee of a written request for indemnification pursuant to Section
11(a) hereof and the final disposition of the Proceeding no Independent Counsel shall have been
selected and not objected to, the Indemnitee may petition a court of competent jurisdiction for
resolution of any objection which shall have been made by the Company to the selection of
Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the
court or by such other person as the court shall designate, and the person with respect to whom all
objections are so resolved or the person so appointed shall act as Independent Counsel under
Section 12(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant
to Section 14(a) of this Agreement, Independent Counsel shall be discharged and relieved of any
further responsibility in such capacity (subject to the applicable standards of professional
conduct then prevailing). The Company agrees to pay the reasonable fees and expenses of the
Independent Counsel and to fully indemnify such counsel against any and all Expenses, claims,
liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

     Section 13. Presumptions and Effect of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification hereunder, the
Independent Counsel making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a request for indemnification in
accordance with Section 11(a) of this Agreement, and the Company shall have the burden of proof to
overcome that presumption in connection with the making by the Independent Counsel of any
determination contrary to that presumption. Neither the failure of the Company or of Independent
Counsel to have made a determination prior to the commencement of any action pursuant to this
Agreement that indemnification is proper in the circumstances because Indemnitee has met the
applicable standard of conduct, nor an actual determination by the Company or by Independent
Counsel that Indemnitee has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that Indemnitee has not met the applicable standard of conduct.

          (b) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of guilty, nolo contendere or its

-7-

 

equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee
did not act in good faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his conduct was unlawful.

          (c) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted
in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise,
including financial statements, or on information supplied to Indemnitee by the officers of the
Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or
the Board or counsel selected by any committee of the Board or on information or records given or
reports made to the Enterprise by an independent certified public accountant or by an appraiser,
investment banker or other expert selected with reasonable care by the Company or the Board or any
committee of the Board. The provisions of this Section 13(c) shall not be deemed to be exclusive
or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met
the applicable standard of conduct set forth in this Agreement.

          (d) The knowledge and/or actions, or failure to act, of any director, consultant, officer,
agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining
the right to indemnification under this Agreement.

     Section 14. Remedies of Indemnitee.

          (a) Subject to Section 14(e), in the event that (i) a determination is made pursuant to
Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this
Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant
to Section 12(a) of this Agreement within 60 days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to Section 5, 6 or 7 or the
last sentence of Section 12(a) of this Agreement within 10 days after receipt by the Company of a
written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 8 of this
Agreement is not made within 10 days after a determination has been made that Indemnitee is
entitled to indemnification, or (vi) in the event that the Company or any other person takes or
threatens to take any action to declare this Agreement void or unenforceable, or institutes any
litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the
benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be
entitled to an adjudication by a court of his entitlement to such indemnification and/or
advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of
the American Arbitration Association. Indemnitee shall commence such proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such proceeding pursuant to this Section 14(a); provided,
however, that the foregoing clause shall not apply in respect of a proceeding brought by
Indemnitee to enforce his rights under Section 5 of this Agreement. The Company shall not oppose
Indemnitee’s right to seek any such adjudication or award in arbitration.

-8-

 

          (b) In the event that a determination shall have been made pursuant to Section 12(a) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo
trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that
adverse determination. In any judicial proceeding or arbitration commenced pursuant to this
Section 14, the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be.

          (c) If a determination shall have been made pursuant to Section 12(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law.

          (d) The Company shall be precluded from asserting in any judicial proceeding or arbitration
commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are
not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement. It is the intent of
the Company that, to the fullest extent permitted by applicable law, the Indemnitee not be required
to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of
Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense
thereof would substantially detract from the benefits intended to be extended to the Indemnitee
hereunder. To the fullest extent permitted by applicable law, the Company shall indemnify
Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within 10 days
after receipt by the Company of a written request therefor) advance such Expenses to Indemnitee,
which are incurred by Indemnitee in connection with any action brought by Indemnitee for
indemnification or advance of Expenses from the Company under this Agreement or under any
directors’ and officers’ liability insurance policies maintained by the Company, regardless of
whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of
Expenses or insurance recovery, as the case may be, in the suit for which indemnification or
advances is being sought.

          (e) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement of Indemnitee to indemnification under this Agreement shall be required to be made
prior to the final disposition of the Proceeding.

     Section 15. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

          (a) The rights of indemnification and to receive advancement of Expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Charter, the Bylaws, any agreement, a vote of stockholders or a
resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of
any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such
amendment, alteration or repeal. To the extent that a change
in Delaware law, whether by statute or judicial decision, permits greater indemnification or

-9-

 

advancement of Expenses than would be afforded currently under the Charter, the Bylaws and this
Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits so afforded by such change. No right or remedy herein conferred is intended to be
exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other right or remedy.

          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, consultants, officers, employees, or agents of the Company or of
any other Enterprise, [or E&O Insurance for Counsel,] Indemnitee shall be covered by such policy or
policies in accordance with its or their terms to the maximum extent of the coverage available for
any such director, [Counsel,] consultant, officer, employee or agent under such policy or policies.
If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company
has director and officer liability insurance [or E&O insurance] in effect, the Company shall give
prompt notice of such claim or of the commencement of a proceeding, as the case may be, to the
insurers in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such
policies.

          (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

          (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.

          (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is
or was serving at the request of the Company as a director, [Counsel,] consultant, officer,
employee or agent of any other corporation, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has
actually received as indemnification or advancement of Expenses from such other corporation,
limited liability company, partnership, joint venture, trust, employee benefit plan or other
enterprise.

     Section 16. Duration of Agreement. This Agreement shall continue until and terminate
upon the later of: (a) 10 years after the date that Indemnitee shall have ceased to serve as an
officer of the Company or (b) one year after the final termination of any Proceeding then pending
on such 10 year anniversary in respect of which Indemnitee is granted rights of indemnification or
advancement of Expenses hereunder and of any proceeding commenced by
Indemnitee pursuant to Section 14 of this Agreement relating thereto. This Agreement shall be

-10-

 

binding upon the Company and its successors and assigns and shall inure to the benefit of
Indemnitee and his heirs, executors and administrators. The Company shall require and cause any
successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all,
substantially all or a substantial part, of the business and/or assets of the Company, by written
agreement in form and substance satisfactory to the Indemnitee, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the Company would be required
to perform if no such succession had taken place.

     Section 17. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including without limitation,
each portion of any Section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any
way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by
applicable law; (b) such provision or provisions shall be deemed reformed to the extent necessary
to conform to applicable law and to give the maximum effect to the intent of the parties hereto;
and (c) to the fullest extent possible, the provisions of this Agreement (including, without
limitation, each portion of any Section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifested thereby.

     Section 18. Enforcement.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as an officer
of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in
serving as an officer [or Counsel] of the Company.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof; provided,
however, that this Agreement is a supplement to and in furtherance of the Charter, the
Bylaws, any resolution of the Board providing for indemnification and applicable law, and shall not
be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

     Section 19. Modification and Waiver. No supplement, modification or amendment, or
waiver of any provision, of this Agreement shall be binding unless executed in writing by the
parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a
continuing waiver.

     Section 20. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to indemnification or
advancement of Expenses covered hereunder. The failure of Indemnitee to so

-11-

 

notify the Company shall not relieve the Company of any obligation which it may have to the
Indemnitee under this Agreement or otherwise.

     Section 21. Notices. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by
hand and receipted for by the party to whom said notice or other communication shall have been
directed, (b) mailed by certified or registered mail with postage prepaid, on the third business
day after the date on which it is so mailed, (c) mailed by reputable overnight courier and
receipted for by the party to whom said notice or other communication shall have been directed or
(d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has
been received:

          (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee shall provide to the Company.

          (b) If to the Company to:

McJunkin Red Man Holding Corporation

Attn: Chairman, President & Chief Executive Officer

2 Houston Center, Suite 3100

Houston, Texas 77010

Facsimile: 866-560-0336

or to any other address as may have been furnished to Indemnitee by
the Company.

     Section 22. Contribution. To the fullest extent permitted by applicable law, if the
indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving
cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

     Section 23. Applicable Law and Consent to Jurisdiction. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the
Delaware Court, and not in any other state or federal court in the United States of America or any
court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware
Court for purposes of any action or proceeding arising out of or in connection with this Agreement,
(iii) appoint, to the extent such party is not otherwise subject to service of process in the State
of Delaware, The Corporation Trust Company, Wilmington, Delaware as its

-12-

 

agent in the State of Delaware as such party’s agent for acceptance of legal process in
connection with any such action or proceeding against such party with the same legal force and
validity as if served upon such party personally within the State of Delaware, (iv) waive any
objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v)
waive, and agree not to plead or to make, any claim that any such action or proceeding brought in
the Delaware Court has been brought in an improper or inconvenient forum.

     Section 24. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence the existence of this
Agreement.

     Section 25. Miscellaneous. The headings of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

[signature page follows]

-13-

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 
	 	COMPANY:

McJunkin Red Man Holding Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Andrew R. Lane 	 
	 	 	Title:  	Chairman, President & 
 Chief
Executive Officer 	 
	 
	 
	 	INDEMNITEE:

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

-14-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]