Document:

EXHIBIT 4.3

 

August 5,
2005

 

COMMON STOCK
PURCHASE WARRANT AGREEMENT

 

This COMMON STOCK
PURCHASE WARRANT AGREEMENT (this “Warrant Agreement” or “Agreement”), dated as
of August 5, 2005, is between GrayMark Productions, Inc. (the “Company”)
and                                     
(the “Warrant Holder” and with the Company sometimes referred to as “parties”
collectively and as “party” individually.

 

W I T N E S S E T
H:

 

WHEREAS, this Warrant
Agreement is executed by the Company pursuant to the Convertible Loan Note on
the date of this Agreement (the “Convertible Note”) and delivered with
Convertible Note to Warrant Holder;

 

NOW, THEREFORE, in
consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       Grant
and Period.  The above recitals are
true and correct.  This Agreement is
executed and delivered pursuant to the Convertible Note issued by the
Company.  Pursuant to this Agreement, the
Warrant Holder is hereby granted the right to purchase from the Company, at any
time during the period commencing on the date of this Agreement and ending on August 5,
2010 (the “Expiration Time”), 250,000 shares of the Company’s common stock,
$.0001 par value (the “Shares” or “Warrant Securities”)) at an initial exercise
price (subject to adjustment as provided in Article 8 hereof) of $3.00 per
share (the “Exercise Price” or “Purchase Price”), subject to the terms and
conditions of this Agreement (the “Warrant”).

 

Except as specifically
otherwise provided herein, the Shares shall have the same terms and conditions
as such securities are outstanding and as designated in the Company’s
Certificate of Incorporation and any amendments thereto, and the Warrant Holder
shall have registration rights under the Securities Act of 1933, as amended,
covering the Warrant Securities, as more fully described in Section 7 of
this Agreement.

 

2.                                       Warrant
Certificate.  The Warrant Holder’s
rights pursuant to this Agreement shall only be evidenced by this Agreement and
will not be certificated.

 

3.                                       Exercise
of Warrant.

 

3.1                                 Exercise.  The Warrant Holder may effect a cash exercise
of the Warrant by surrendering to the Company this Agreement, together with a
Subscription in the form of Exhibit ”A” attached to this Agreement, duly
executed by the Warrant Holder, at any time prior to the Expiration Time, at
the Company’s principal office, accompanied by payment in cash or by certified
or official bank check payable to the order of the Company in the amount of the
aggregate purchase price (the “Aggregate Price”), subject to any adjustments
provided for in this Agreement.  The
Aggregate Price shall be equal to the exercise price as set forth in Section 6
of this Agreement multiplied by the number of Warrant Securities for which the
Warrant shall be exercised (as adjusted as provided in this Agreement).

 

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3.2                                 Partial
Exercise.  In the event the Warrant
shall be exercised in part and not in whole, the Company, at its expense, will
forthwith issue to the Warrant Holder a new warrant agreement of like tenor
exercisable for the number of Warrant Securities (as constituted as of the date
hereof) for which this Warrant Agreement shall not have been exercised, issued
in the name of the Warrant Holder or as the Warrant Holder (upon payment by the
Warrant Holder of any applicable transfer taxes) may direct.

 

4.                                       Issuance
of Certificates Evidencing the Warrant Securities.  Upon the exercise of the Warrants, the
issuance of certificates for the Warrant Securities shall be made as soon as
reasonably practicable thereafter without charge to the Warrant Holder
including, without limitation, any tax which may be payable in respect of the
issuance thereof, and such certificates shall (subject to the provisions of
Sections 5 and 7 of this Agreement) be issued in the name of, or in such names
as may be directed by, the Holder thereof; provided, however, that the Company
shall not be required to pay any tax that may be payable in respect of any
transfer involved in the issuance and delivery of any such certificates in a
name other than that of the Warrant Holder, and the Company shall not be
required to issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Company the amount of
such tax or shall have established to the satisfaction of the Company that such
tax has been paid.

 

The Warrant Certificates
and the certificates representing the Warrant Securities shall be executed on
behalf of the Company by the manual or facsimile signature of the then present
Chairman or Vice Chairman of the Board of Directors or Chief Executive Officer,
President or Vice President of the Company, attested to by the manual or
facsimile signature of the then present Secretary or Assistant Secretary of the
Company.  Warrant Certificates shall be
dated the date of execution by the Company upon initial issuance, division,
exchange, substitution or transfer.

 

5.                                       Restriction
On Transfer of Warrants.  This
Warrant Agreement may be assigned or transferred, in whole or in part, as
provided herein so long as such assignment or transfer is in accordance with
and subject to the provisions of the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder (said Act and such rules and
Regulations being hereinafter collectively referred to as the “Securities Act”).  Any purported transfer or assignment made
other than in accordance with this Section 5 shall be null and void and of
no force and effect.  Any assignment
permitted under this Agreement shall be made by surrender of this Agreement to
the Company with the Assignment Form attached to this Agreement as Exhibit ”C”
duly executed and funds sufficient to pay any transfer tax.  In such event the Company shall, without
charge, execute and deliver a new warrant agreement in the name of the assignee
named in the Assignment Form and designate the assignee as the warrant
holder under the new warrant agreement and this Agreement shall promptly be
canceled.  This Agreement may be divided
or combined with other warrant agreement that carry the same rights by
presentation of this Agreement to the Company together with the Assignment Form signed
by the Warrant Holder, specifying the names and denominations in which the new
warrant agreements are to be issued.

 

6.                                       Exercise
Price.

 

6.1                                 Initial
and Adjusted Exercise Prices.  The
initial exercise price of each Common Stock Warrant shall be $3.00 per
Share.  The adjusted exercise price shall
be the price which shall result from time to time from any and all adjustments
of the initial exercise price in accordance with the provisions of Section 8
of this Agreement.  The term “Exercise
Price” herein shall mean the initial exercise price or the adjusted exercise
price, depending upon the context.

 

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7.                                       Registration
Rights.

 

7.1                                 Registration
Under the Securities Act of 1933.

 

The Warrant and the
Warrant Securities have not been registered under the Securities Act.  Upon exercise, in part or in whole, of the
Warrant, certificates representing the Warrant Securities shall bear the
following legend in the event there is no current registration statement
effective with the U.S. Securities and Exchange Commission (the “Commission”)
at such time as to such securities:

 

The securities
represented by this certificate may not be offered or sold except pursuant to (i) an
effective registration statement under the Act, (ii) to the extent
applicable, Rule 144 under the Act (or any similar rule under such
Act relating to the disposition of securities), or (iii) an opinion of
counsel, if such opinion shall be reasonably satisfactory to counsel to the
issuer, that an exemption from registration under such Act and applicable state
securities laws is available.

 

7.2                                 Piggyback
Registration.

 

If, at any time
commencing after July 27, 2005 and expiring July 27, 2010, the
Company prepares and files an amendment to a registration statement, or a new
registration statement under the Act, or files a Notification on Form 1-A
or otherwise registers securities under the Act, or files a similar disclosure
document with the Commission (collectively the “Registration Documents”) as to
any of its securities under the Securities Act (other than under a Registration
Statement pursuant to Form S-8 or Form S-4), the Company will give
written notice by registered mail, at least thirty (30) days prior to the
filing of each such Registration Document, to the Warrant Holder and holders of
the Warrant Securities of the Company’s intention to do so.  If the Warrant Holder or any holder of the
Warrant Securities notifies the Company within 20 days after receipt of any
such notice of its desire to include any Warrant Securities in such proposed
Registration Documents, the Company shall afford the Warrant Holder or holder
of the Warrant Securities the opportunity to have any Warrant Securities
registered under such Registration Documents or any other available
Registration Document.

 

Notwithstanding the
provisions of this Section 7.2, the Company shall have the right at any
time after it shall have given written notice pursuant to this Section 7.2
(irrespective of whether a written request for inclusion of any such securities
shall have been made) to elect not to file any such proposed amendment or
registration statement, or to withdraw the same after the filing but prior to
the effective date of the Registration Document.

 

7.3                                 Demand
Registration.  Omitted.

 

7.4                                 Covenants
of the Company With Respect to Registration.  In connection with the filing of any
Registration Document by the Company, the Company covenants and agrees as
follows:

 

(a)                                  The
Company shall use its best efforts to file the Registration Document on the
date indicated in the notice delivered to the Warrant Holder and the holders of
the Warrant Securities pursuant to Section 7.2 or as soon as reasonably
practicable thereafter and shall use its best efforts to have any such
Registration Document declared effective at the earliest practicable time.  The Company will promptly notify each of the
Warrant Holder and holder of Warrant Securities electing to include Warrant
Securities in the Registration Document (collectively the “Selling Securities
Holders”) and confirm in writing, (i) when such Registration Document
becomes effective, (ii) when any post-effective amendment to such
Registration Document becomes effective and (iii) of any request by the
SEC for any amendment or supplement to such Registration Document or any
prospectus relating thereto or for additional information.

 

The Company shall furnish
to each Selling Securities Holder such number of copies of such Registration
Document (or prospectus contained therein) and of each such amendment and
supplement thereto (in each case including each preliminary prospectus and
summary prospectus) in conformity with the requirements of the Securities Act,
and such other documents as the Selling Securities Holders may reasonably
request in order to facilitate the disposition of the Warrant Securities
included in the Registration Document.

 

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(b)                                 The
Company shall pay all costs (excluding transfer taxes, if any, and fees and
expenses of Holder(s)’ counsel and the Holder’s pro-rata portion of the selling
discount or commissions), fees and expenses in connection with all Registration
Documents filed pursuant to Sections 7.2 hereof including, without limitation,
the Company’s legal and accounting fees, printing expenses, blue sky fees and
expenses.  If the Company shall fail to
comply with the provisions of Section 7.4(a), the Company shall, in
addition to any other equitable or other relief available to the Selling
Securities Holders, be liable for any or all special and consequential damages
sustained by the Selling Securities Holders.

 

(c)                                  The
Company shall prepare and file with the SEC such amendments and supplements to
such Registration Document and the prospectus used in connection therewith as
may be reasonably necessary to keep such Registration Document effective for at
least nine months (or such longer period as permitted by the Act), and to
comply with the provisions of the Act with respect to the disposition of all
securities covered by such Registration Document during such period in
accordance with the intended methods of disposition by the Selling Securities
Holders of the Warrant Securities set forth in such Registration Document.  If at any time the SEC should institute or
threaten to institute any proceedings for the purpose of issuing a stop order
suspending the effectiveness of any such Registration Document, the Company
shall promptly notify each Selling Securities Holder and will use all
reasonable efforts to prevent the issuance of any such stop order or to obtain
the withdrawal thereof as soon as possible. 
The Company will use its good faith reasonable efforts and take all
reasonably necessary action which may be required in qualifying or registering
the Warrant Securities included in the Registration Document for offering and
sale under the securities or blue sky laws of such states as reasonably are
required by the Selling Securities Holders; provided that the Company shall not
be obligated to execute or file any general consent to service of process or to
qualify as a foreign corporation to do business under the laws of any such
jurisdiction, nor shall the officers, directors and five percent (5%) or
greater shareholder be required to deposit in escrow and securities of the
Company owned by them or subject such securities to any form of lockup
arrangement in connection with such registration.  The Company shall use its good faith
reasonable efforts to cause the Warrant Securities covered by such Registration
Document to be registered with or approved by such other governmental agencies
or authorities of the United States or any State thereof as may be reasonably
necessary to enable the Selling Security Holders to consummate the disposition
of the Warrant Securities included in the Registration Document.

 

(d)                                 The
Company shall indemnify the Selling Securities Holders and each person, if any,
who controls any Selling Securities Holder within the meaning of Section 15
of the Act or Section 20(a) of the Securities Exchange Act of 1934,
as amended (“Exchange Act”), against all loss, claim, damage, expense or
liability (including all expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which any of them may
become subject under the Act, the Exchange Act or otherwise, arising from such
registration statement.

 

(e)                                  If
requested by the Company prior to the filing of any Registration Document
covering the Warrant Securities, each of the Selling Securities Holders and
their successors and assigns, shall severally, and not jointly, indemnify the
Company, its officers and directors and each person, if any, who controls the
Company within the meaning of Section 15 of the Act or Section 20(a) of
the Exchange Act, against all loss, claim, damage or expense or liability
(including all expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which they may become subject under
the Act, the Exchange Act or otherwise, arising from written information
furnished by the Selling Securities Holder, or their successors or assigns, for
specific inclusion in the Registration Document.

 

(f)                                    Nothing
contained in this Agreement shall be construed as requiring the Warrant Holder
to exercise the Warrants prior to the filing of any Registration Document or
the effectiveness thereof.

 

(g)                                 Notwithstanding
the provisions of Section 7.2 of this Agreement, the Company shall not be
required to effect or cause the registration of any Warrant Securities pursuant
to Section 7.2 hereof if, within 30 days after its receipt of a request to
include Warrant Securities within the Registration Document (i) counsel
for the Company delivers an opinion to the Selling Securities Holder, in form
and substance satisfactory to counsel to the Selling Securities Holder, to the
effect that the entire number of Warrant Securities proposed to be sold by such
Selling Securities Holder may otherwise be sold, in the manner proposed by the
Selling Securities Holder, without registration under the Securities Act, or (ii) the
SEC shall have issued a no-action position, in form and substance satisfactory
to counsel for the Selling Securities Holder, to the effect that the entire
number of Warrant Securities

 

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proposed to be sold by
the Selling Securities Holder may be sold by it, in the manner proposed by the
Selling Securities Holder, without registration under the Securities Act.

 

8.                                       Adjustments
to Exercise Price and Number of Securities.

 

8.1                                 Adjustment
for Dividends, Subdivisions, Combinations or Reclassifications.  In case the Company shall (a) pay a
dividend or make a distribution in shares of its capital stock (whether shares
of its common stock, $.0001 par value (“Common Stock”)  or of capital stock of any other class), (b) subdivide
its outstanding shares of Common Stock into a greater number of shares, (c) combine
its outstanding shares of Common Stock into a smaller number of shares, or (d) issue
by reclassification of its shares of Common Stock any shares of capital stock
of the Company; then, and in each such case, the per share Exercise Price and
the number of Warrant Securities in effect immediately prior to such action
shall be adjusted so that the Warrant Holder of this Warrant thereafter upon
the exercise hereof shall be entitled to receive the number and kind of shares
of the Company which the Warrant Holder would have owned immediately following
such action had the Warrant been exercised immediately prior thereto.  An adjustment made pursuant to this Section shall
become effective immediately after the record date in the case of a dividend or
distribution and shall become effective immediately after the effective date in
the case of a subdivision, combination or reclassification.  If, as a result of an adjustment made
pursuant to this Section, the Warrant Holder shall become entitled to receive
shares of two or more classes of capital stock of the Company, the Board of
Directors of the Company shall reasonably determine the allocation of the
adjusted Exercise Price between or among shares of such class of capital stock.

 

Immediately upon any
adjustment of the Exercise Price pursuant to this Section, the Company shall
send written notice thereof to the Warrant Holder (by first class mail, postage
prepaid), which notice shall state the Exercise Price resulting from such
adjustment, and any increase or decrease in the number of Warrant Securities to
be acquired upon exercise of the Warrant, setting forth in reasonable detail
the method of calculation and the facts upon which such calculation is based.

 

8.2                                 Adjustment
For Reorganization, Merger or Consolidation.  In case of any reorganization of the Company
or consolidation of the Company with, or merger of the Company with, or merger
of the Company into, another corporation (other than a consolidation or merger
that does not result in any reclassification or change of the outstanding
Common Stock), the corporation formed by such consolidation or merger shall
execute and deliver to the Warrant Holder a supplemental Warrant Agreement
providing that the Warrant Holder shall have the right thereafter (until the
Expiration Date) to receive, upon exercise of such warrant, the kind and amount
of shares of stock and other securities and property receivable upon such
consolidation or merger, by a holder of the number of shares of Common Stock of
the Company for which the Warrant might have been exercised immediately prior
to such reorganization, consolidation, merger, conveyance, sale or
transfer.  Such supplemental Warrant
Agreement shall provide for adjustments which shall be identical to the
adjustments provided in Section 8.1 and such registration rights and other
rights as provided in this Agreement. 
The Company shall not effect any such consolidation, merger, or similar
transaction as contemplated by this paragraph, unless prior to or
simultaneously with the consummation thereof, the successor corporation (if
other than the Company) resulting from such consolidation or merger or the
corporation purchasing, receiving, or leasing such assets or other appropriate
corporation or entity shall assume, by written instrument executed and
delivered to the Warrant Holder, the obligation to deliver to the Warrant
Holder, such shares of stock, securities, or assets as, in accordance with the
foregoing provisions, such Warrant Holder may be entitled to purchase, and to
perform the other obligations of the Company under this Agreement.  The above provision of this Section shall
similarly apply to successive consolidations or successively whenever any event
listed above shall occur.

 

8.3                                 Dividends
and Other Distributions.  In the
event that the Company shall at any time prior to the earlier of (i) exercise
of all of the Warrant or (ii) the Expiration Date, distribute to its
shareolders any assets, property, rights, evidences of indebtedness, securities
(other than a distribution made as a cash dividend payable out of earnings or
out of any earned surplus legally available for dividends under the laws of the
jurisdictions of incorporation of the Company), whether issued by the Company
or by another, the Warrant Holder shall thereafter be entitled, in addition to
the Shares or other Warrant Securities and property receivable upon the
exercise thereof, to receive, upon the exercise of the Warrant, the same
property, assets, rights, evidences of indebtedness, securities or any other
thing of value that the Warrant Holder would have been entitled to receive at
the time of such distribution as if the Warrant had been exercised immediately
prior to such distribution.  At the time
of any such

 

5

 

distribution, the Company
shall make appropriate reserves to ensure the timely performance of the
provisions of this Section or an adjustment to the Exercise Price, which
shall be effective as of the day following the record date for such
distribution.

 

8.4                                 Adjustment
in Number of Securities.  Upon each
adjustment of the Exercise Price pursuant to the provisions of this Section 8,
the number of securities issuable upon the exercise of the Warrant shall be
adjusted to the nearest full amount by multiplying a number equal to the
Exercise Price in effect immediately prior to such adjustment by the number of
securities issuable upon exercise of the Warrant immediately prior to such
adjustment and dividing the product so obtained by the adjusted Exercise Price.

 

8.5                                 No
Adjustment of Exercise Price in Certain Cases.  No adjustment of the Exercise Price shall be
made if the amount of said adjustment shall be less than one cent ($.01) per
Share, provided, however, that in such case any adjustment that would otherwise
be required then to be made shall be carried forward and shall be made at the
time of and together with the next subsequent adjustment which, together with
any adjustment so carried forward, shall amount to at least one cent ($.01) per
Share.

 

8.6                                 Accountant’s
Certificate of Adjustment.  In each
case of an adjustment or readjustment of the Exercise Price or the number of
any securities issuable upon exercise of the Warrant, the Company, at its expense,
shall cause independent certified public accountants of recognized standing
selected by the Company (who may be the independent certified public
accountants then auditing the books of the Company) to compute such adjustment
or readjustment in accordance herewith and prepare a certificate showing such
adjustment or readjustment, and shall mail such certificate, by first class
mail, postage prepaid, to the Warrant Holder at the Warrant Holder’s address as
shown on the Company’s books.  The
certificate shall set forth such adjustment or readjustment, showing in detail
the facts upon which such adjustment or readjustment is based including, but
not limited to, a statement of (i) the Exercise Price at the time in
effect, and (ii) the number of additional or fewer securities and the type
and amount, if any, of other property which at the time would be receivable
upon exercise of the Warrant.

 

9.                                       Replacement
of Warrant Certificates.  Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant Agreement, and, in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
it, and reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of the Warrant Agreement, if
mutilated, the Company will make and deliver a new Warrant Agreement of like
tenor, in lieu thereof.

 

10.                                 Elimination
of Fractional Interest.  The Company
shall not be required to issue certificates representing fractions of shares of
Common Stock or other Warrant Securities upon the exercise of the Warrant, nor
shall it be required to issue script or pay cash in lieu of fractional
interests, it being the intent of the parties that all fractional interests may
be eliminated, at the Company’s option, by rounding any fraction up to the
nearest whole number of Share or other Warrant Securities, properties or
rights, or in lieu thereof paying cash equal to such fractional interest
multiplied by the current value of the Share or other Warrant Security.

 

11.                                 Reservation,
Validity and Listing.  The Company
covenants and agrees that during the Exercise Period, the Company shall at all
times reserve and keep available out of its authorized shares of Common Stock
or other authorized Warrant Securities, solely for the purpose of issuance upon
the exercise of the Warrant, such number of shares of Common Stock or other
Warrant Securities, properties or rights as shall be issuable upon the exercise
of the Warrant.  The Company covenants
and agrees that, upon exercise of the Warrant, and payment of the Exercise
Price therefor (if applicable), all shares of Common Stock and other Warrant
Securities issuable upon such exercise shall be duly authorized, validly
issued, fully paid, non-assessable and not subject to the preemptive rights.

 

12.                                 Notices
to Warrant Holder.  Nothing contained
in this Agreement shall be construed as conferring upon the Warrant Holder the
right to vote or to consent or to receive notice as a stockholder in respect of
any meetings of shareholders for the election of directors or any other matter,
or as having any rights whatsoever as a stockholder of the Company.  If, however, at any time prior to the
expiration of the Warrant and its exercise, any of the following events shall
occur:

 

(a)                                  the
Company shall take a record of the holders of its shares of Common Stock for
the purpose of entitling them to receive a dividend or distribution payable
otherwise than in cash, or a cash dividend or

 

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distribution payable
otherwise than out of current or retained earnings, as indicated by the
accounting treatment of such dividend or distribution on the books of the
Company; or

 

(b)                                 the
Company shall offer to all the holders of its Common Stock any additional
shares of capital stock of the Company or securities convertible into or
exchangeable for shares of capital stock of the Company, or any option, right
or warrant to subscribe therefor; or

 

(c)                                  a
dissolution, liquidation or winding up of the Company (other than in connection
with a consolidation or merger) or a sale of all or substantially all of its
property, assets and business as an entirety shall be proposed;

 

then, in any one or more
of said events, the Company shall give written notice of such event at least 15
days prior to the date fixed as a record date of the date of closing the
transfer books for the determination of the shareholders entitled to such
dividend, distribution, convertible or exchangeable securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale.  Such notices shall specify
such record date or the date of closing the transfer books, as the case may be.

 

13.                                 Notices.  All notices, requests, consents and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when sent (i) by facsimile and (ii) delivered
personally or by overnight courier or mailed by registered or certified mail,
return receipt requested:

 

(a)                                  If
to the Warrant Holder or holders of the Warrant Securities, to its address as
shown on the books of the Company; or

 

(b)                                 If
to the Company, to the address set forth below or to such other address as the
Company may designate by notice to the Warrant Holder.

 

John Simonelli

Chief Executive Officer

GrayMark Productions, Inc.

101 North Robinson, Suite 920

Oklahoma City, Oklahoma
73102

 

15.                                 Entire
Agreement: Modification.  This
Agreement contains the entire understanding between the parties with respect to
the subject matter hereof, and the terms and provisions of this Agreement may
not be modified, waived or amended except in a writing executed by the Company
and the Warrant Holder.

 

16.                                 Successors.  All the covenants and provisions of this
Agreement shall be binding upon and inure to the benefit of the Company,
Warrant Holder and the holders of the Warrant Securities and their respective
successors and assigns.

 

17.                                 Termination.  This Agreement shall terminate at the earlier
of (i) the public sale of all of the Warrant Securities, or (ii) at
the close of business on July 27, 2010. 
Notwithstanding the foregoing, the indemnification provisions of Section 7
shall survive such termination.

 

18.                                 Governing
Law; Submission to Jurisdiction. 
This Agreement shall be deemed to be a contract made under the laws of
the State of Michigan and for all purposes shall be construed in accordance
with the laws of said State without giving effect to the rules of said
State governing the conflicts of laws. 
The Company and the Warrant Holder hereby agree that any action,
proceeding or claim arising out of, or relating in any way to, this Agreement
shall be brought and enforced in a federal or state court of competent
jurisdiction with venue only in (i) the Ingham County District Court in
the State of Michigan, or (ii) the United States District Court for the
Western District of Michigan, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. 
The Company and the Warrant Holder hereby irrevocably waive any
objection to such exclusive jurisdiction or inconvenient forum.  A party to this Agreement named as a
defendant in any action brought in connection with this Agreement in any court
outside of the above named designated county or district shall have the right
to have the venue of said action changed to the above designated county or
district or, if necessary, have the case dismissed, requiring the other party
to refile such action in an appropriate court in the above designated county or
federal district.

 

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19.                                 Severability.  If any provision of this Agreement shall be
held to be invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provision of this Agreement.

 

20.                                 Captions.  The caption headings of the Sections of this
Agreement are for convenience of reference only and are not intended, nor
should they be construed as, a part of this Agreement and shall be given no
substantive effect.

 

21.                                 Benefits
of this Agreement.  Nothing in this
Agreement shall be construed to give to any person or corporation other than
the Company and the Warrant Holder and holders of the Warrant Securities any
legal or equitable right, remedy or claim under this Agreement; and this Agreement
shall be for the sole and exclusive benefit of the Company and the Warrant
Holder and any holder of the Warrant Securities.

 

22.                                 Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and such counterparts shall together constitute but one and
the same instrument.

 

IN WITNESS HEREOF, the
parties hereto have caused this Agreement to be duly executed, as of the day
and year first above written.

 

	
  “Company”

  	
   

  	
   

  	
  GRAYMARK PRODUCTIONS,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  John
  Simonelli, Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Mark R. Kidd, Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Warrant Holder”

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature
  for an individual, including

  
	
   

  	
   

  	
   

  	
  joint
  tenants and tenants in common:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name (typed or
  printed)

  	
   

  	
   

  	
  Name (typed or printed)

  
	
  Date: August 5,
  2005.

  	
   

  	
   

  	
  Date: August 5,
  2005.

  

 

8

 

EXHIBIT ”A”

 

FORM OF
SUBSCRIPTION (CASH EXERCISE)

 

(To be signed only
upon exercise of Warrant)

 

TO:                            GrayMark
Productions, Inc.

101 North Robinson, Suite 920

Oklahoma City, Oklahoma
73102

 

The undersigned, the
Warrant Holder, hereby irrevocably elects to exercise the purchase right
provided by the Warrant Agreement for, and to purchase thereunder,                         
Shares of GrayMark Productions, Inc. (the “Company”), and herewith makes
payment of $                              
therefor, and requests that the certificates for such securities be issued in
the name of, and delivered to,                                                                                                     ,
whose address is                                                                                                                                                                 ,
all in accordance with the Warrant Agreement.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature must conform
  in all respects to

  name of Holder as specified on the face of

  the Warrant Agreement)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Social Security Number
  or

  
	
   

  	
  Tax Identification
  Number)

  

 

9

 

EXHIBIT ”B”

 

FORM OF
SUBSCRIPTION (CASHLESS EXERCISE)

 

(Intentionally
Blank)

 

 

 

 

10

 

EXHIBIT ”C”

 

FORM OF
ASSIGNMENT

 

(To be exercised
by the Warrant Holder if the

 

Warrant Holder
desires to transfer the Warrant Agreement.)

 

FOR VALUE RECEIVED                                                                                 
hereby sells, assigns and transfers unto

                                                                                                                                                                                          

(Print name and address
of transferee)

 

the Warrant Agreement,
together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint                                                                                                                     
Attorney, to transfer the Warrant Agreement on the books of GrayMark
Productions, Inc., with full power of substitution.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature must conform
  in all respects to

  name of Holder as specified on the face of

  the Warrant Agreement)

  
	
   

  	
   

  
	
   

  	
  Address of Assignee:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Social Security Number
  or

  
	
   

  	
  Tax Identification
  Number

  
	
   

  	
  of Assignee)

  

 

11Exhibit 4.1

 

IPSCO
INC.

 

INCENTIVE
SHARE PLAN

(amended and restated as of March 3, 2005)

 

1.             Purpose of the Plan

 

The
purpose of the Incentive Share Plan (the “Plan”) is to assist Ipsco Inc. (the “Corporation”)
and its Subsidiaries in attracting, retaining and motivating individuals of
outstanding ability by offering stock-based incentive rewards.  The Plan is intended to motivate and reward
individuals who contribute to the Corporation’s profitability and to give those
individuals a proprietary interest in the Corporation’s growth and financial
success.

 

2.             Definitions

 

As used in the Plan, the
following words shall have the following meanings:

 

(a)           “affiliate”
has the meaning assigned by the Securities
Act.

 

(b)           “associate” has
the meaning assigned by the Securities Act.

 

(c)           “Award” means an
award granted to any Participant in accordance with the provisions of the Plan
in the form of Stock Options, Restricted Shares or Performance Units, or any
combination of the foregoing.

 

(d)           “Award Agreement”
has the meaning ascribed thereto in Section 6(b).

 

(e)           “Beneficiary”
means the beneficiary or beneficiaries designated pursuant to Section 11 of the
Plan to receive, upon the death of a Participant, Awards of Stock Options,
Restricted Shares or Performance Units issued or payable to the Participant
under the Plan.

 

(f)            “Board of
Directors” means the Board of Directors of the Corporation.

 

(g)           “Committee”
means the committee described in Section 4 of the Plan.

 

(h)           “Common Shares”
means the Common Shares of the Corporation.

 

(i)            “Corporation”
means IPSCO Inc. and its successors and assigns.

 

(j)            “date of
ceasing to be an officer or employee” or “date of
termination of service” and all such similar expressions mean the
last date of active employment of the officer or employee and for the purposes
of this Plan:

 

(i)            any period after the date
on which an officer or employee has received a notice of termination of
employment; or

 

(ii)           any period during which an officer or employee is
in receipt of 

or eligible to receive severance pay or compensation in lieu of notice,

 

is deemed to be after the date
of termination of employment.

 

(k)           “Disability” has
the meaning ascribed thereto in Section 7(j)(i).

 

(l)            “Eligible
Director” means a person who is a “non-employee director” within the
meaning of Rule 16-b3 under the Exchange Act, or a person meeting any similar
requirement under any successor rule or regulation.

 

 

(m)          “Exchange Act”
means the United States Securities Exchange Act of 1934,
as amended.

 

(n)           “Exercise Price”
means the price at which a holder of a Stock Option may purchase the Common
Shares issuable upon exercise of the Stock Option.

 

(o)           “Fair Market Value”
means, as of any date, the last sale price per share of a board lot of the
Common Shares on the Toronto Stock Exchange (the “TSE”) for such date, or if
there was no such sale price reported for such date, the price on the next
preceding date on which there was such a sale reported.

 

(p)           “insider” has
the meaning assigned by the Securities Act
and also includes associates and affiliates of an insider for only includes a
director or senior officer of a Subsidiary or an affiliate of the Corporation
if such director or senior officer (a) in the ordinary course receives or has
access to information as to material facts or material changes concerning the
Corporation before the material facts or materials changes are generally
disclosed; (b) is a director or senior officer of a Major Subsidiary of the
Corporation; or (c) is an insider of the Corporation in a capacity other than
as a director or senior officer of the Subsidiary or affiliate.

 

(q)            “Major
Subsidiary” has the meaning assigned by Canadian Securities
Administrators’ National Instrument 55-101 – “Exemption
from Certain Insider Reporting Requirements,” as amended.

 

(r)            “outstanding
issue” means the number of common shares of the Company issued and
outstanding on a non-diluted basis.

 

(s)           “Participant”
has the meaning ascribed thereto in Section 5.

 

(t)            “Performance
Objective” has the meaning ascribed thereto in Section 9(a).

 

(u)           “Performance Period”
has the meaning ascribed thereto in Section 9(a).

 

(v)           “Performance Unit”
means a performance unit awarded under Section 9 of the Plan.

 

(w)          “reserved for issuance”
refers to shares which may be issued in the future upon the exercise of Stock
Options which have been granted (shares are considered “reserved for issuance”
commencing when the Stock Options are granted, regardless of when they can be
exercised).

 

(x)            “Restricted
Shares” means one or more Common Shares awarded under Section 8 of
the Plan, subject to such restrictions as the Committee deems appropriate or
desirable.

 

(y)           “Restriction Period”
has the meaning ascribed thereto in Section 8(a).

 

(z)            “Retirement”
has the meaning ascribed thereto in Section 7(j)(ii).

 

(aa)         “Securities Act” means the Securities Act (Ontario), as
amended.

 

(bb)         “Stock  Option” means a stock option awarded under Section 7 of the
Plan.

 

(cc)         “Stock Option Agreement”
means an Award Agreement relating to Stock Options.

 

(dd)         “Subsidiary” means
a subsidiary of the Corporation within the meaning of the Canada
Business Corporations Act.

 

2

 

3.             Shares Subject to the Plan

 

(a)           Since the inception of the Plan, a maximum of Six
Million One Hundred Seventy-Five Thousand (6,175,000) Common Shares have been
authorized for issuance under and in accordance with the Plan.  As at March 3, 2005, Four Million Three
Hundred Eighty-Four Thousand Eight Hundred Twenty-Seven (4,384,827) of such
Common Shares have been issued and Nine Hundred Fourteen Thousand Three Hundred
Fifty-Four (914,354) Common Shares are issuable upon the exercise of all
currently outstanding Stock Options and Performance Units, and Eight Hundred
Seventy-Five Thousand Eight Hundred Nineteen (875,819) Common Shares are
available for issuance in connection with subsequent grants of Awards.  No fractional common shares may be purchased
or issued under the Plan.  If any Stock
Option expires unexercised or is terminated, surrender or cancelled without
being exercised in whole or in part for any reason, or any Performance Units
payable in Common Shares or Restricted Shares are forfeited, then the number of
Common Shares issued or issuable, as applicable, under such forfeited,
terminated or expired Awards shall again become available for award under the
Plan.

 

(b)           In no event shall the aggregate number of Common Shares
reserved for issuance under the Plan for any one person exceed two percent (2%)
of the issued and outstanding Common Shares.

 

(c)           In no event shall:

 

(i)            the number of Common
Shares issuable and issued pursuant to this Plan and when combined with any
other security based compensation arrangement of the Corporation insiders
exceed 10% of the issued and outstanding Common Shares;

 

(ii)           the number of Common Shares issuable to any one
insider exceed 2% of the total issued and outstanding Common Shares; and

 

(iii)          the number of Common
Shares issuable and issued under the Plan to non-employee members of the Board
of Directors exceed 0.25% of the issued and outstanding Common Shares of the
Corporation,

 

without obtaining the approval of a majority of the
votes cast at a shareholders’ meeting.

 

4.             Administration of the Plan

 

(a)           The Plan shall be administered by the Board of Directors
which shall, without limitation, have full and final authority in its
discretion, but subject to the express provisions of the Plan, to interpret the
Plan, to prescribe, amend and rescind rules and regulations relating to it and
to make all other determinations deemed necessary or advisable for the
administration of the Plan.  The Board of
Directors may delegate any or all of its authority with respect to the
administration of the Plan and any or all of the rights, powers and discretions
with respect to the Plan granted to it hereunder to the Management Resources
and Compensation Committee or such other committee of directors of the Company
as the Board of Directors may designate (the “Committee”) and upon such
delegation, the Committee, as well as the Board of Directors, shall be entitled
to exercise any or all of such authority, rights, powers and discretions with
respect to the Plan.  The directors of
the Company may fully participate in voting and in other deliberations or proceedings
of the Board of Directors in respect of the Plan, notwithstanding: (i) the
eligibility of the directors to participate in the Plan; and (ii) that the
directors may hold Stock Options granted pursuant to the Plan.  On and after the time that the Corporation
ceases to qualify as a “foreign private issuer” within the meaning of the
Exchange Act, unless the Board of Directors is acting as the Committee or the
Board of Directors specifically determines otherwise, each member of the
Committee shall, at the time he or she takes any action with respect to an
Award under the Plan, be an Eligible Director, provided that the mere fact that
a Committee member shall fail to qualify as an Eligible Director shall not
invalidate any Award granted by the Committee which Award is otherwise validly
made under the Plan.

 

(b)           The Committee shall have full power, discretion and
authority to interpret, construe and administer the Plan and any part thereof
and to make and amend rules for carrying out the Plan, and its interpretations
and constructions thereof and actions taken thereunder shall be, except as
otherwise determined by the Board of Directors, final, conclusive and binding
on all persons for all purposes.

 

3

 

(c)           The Committee’s decisions and determinations under the
Plan need not be uniform and may be made selectively among Participants,
whether or not such Participants are similarly situated.

 

(d)           The Committee may adopt its own rules of procedure and
the action of a majority of the Committee, taken at a meeting or taken without
a meeting by a writing signed by such majority, shall constitute action by the
Committee.

 

5.             Eligibility

 

Awards
may be granted under the Plan to such directors and full-time or part-time
officers and employees of the Corporation and its Subsidiaries as the Committee
may from time to time designate as participants (the “Participants”) under the
Plan.

 

6.             Grant of Awards and Award Agreements

 

(a)           Subject to the provisions of the Plan and applicable
law, the Committee shall (i) determine and designate from time to time those
Participants or groups of Participants to whom Awards are to be granted; (ii)
determine the form or forms of Award to be granted to any Participant; (iii)
determine the amount or number of Stock Options, Restricted Shares or
Performance Units subject to each Award; and (iv) determine the terms and
conditions of each Award.

 

(b)           Each Award granted under the Plan shall be evidenced by
a written award agreement (“Award Agreement”). 
The Award Agreement shall be subject to and incorporate the express
terms and conditions, if any, required under the Plan or otherwise provided by
the Committee.  Subject to Section 6(c),
such terms may, at the discretion of the Committee, include provisions to the
effect that upon a change of control, conditions or restrictions applicable to
some or all of the Stock Options, Restricted Shares or Performance Units shall
be waived in whole or in part and the vesting of all or some of the Stock
Options, Restricted Shares or Performance Units shall be accelerated.

 

(c)           All Awards that may involve the issuance of Shares in
settlement of the Award shall have a minimum vesting period of one year
following the grant of the Award.

 

7.             Terms of Stock Options

 

All
Stock Options shall be granted upon and subject to the terms and conditions
hereinafter set forth.

 

(a)           Exercise Price.  The
exercise price for each Common Share pursuant to the exercise of a Stock Option
shall be as determined by the Committee, but shall in no event be less than one
hundred percent (100%) of the last sale price per share of a board lot of the
Common Shares on The Toronto Stock Exchange on the last business day on which
there was a trade of a board lot, prior to the day the Stock Option is granted
to such Participant.

 

(b)           Vesting. Subject
to Section 6(c), the Stock Options shall vest and become exercisable in
accordance with the terms and conditions determined by the Committee at the
time of the grant as set out in the Stock Option Agreement.

 

(c)           Length of Grant.  Any Stock Options granted shall expire not later than the tenth
anniversary of the date such Stock Options were granted.

 

(d)           Non-Assignability of Stock Options.  Subject to Section 11, Stock Options shall
not be transferable or assignable (whether absolutely or by way of mortgage,
pledge or other charge) by a Participant other than by will or other
testamentary instrument, the laws of succession or other laws of general
application and may be exercisable during the lifetime of the Participant only
by such Participant.

 

(e)           Right to Postpone Exercise.  Each Participant, upon becoming entitled to
exercise a Stock Option in respect of any Common Shares in accordance with the
Stock Option Agreement, shall thereafter be entitled to exercise the Stock
Option to purchase any such Common Shares at any time prior to the expiration
or other

 

4

 

termination of the Stock Option Agreement or the Stock
Option rights granted thereunder in accordance with the Plan or Stock Option
Agreement.

 

(f)            Exercise of Payment.  Any Stock Option may be exercised by a
Participant or the legal representative of a Participant giving notice to the
Corporation specifying the number of Common Shares in respect of which such
Stock Option is being exercised, accompanied by payment (by certified cheque,
bank draft or other instrument acceptable to the Corporation, to be payable to
the Corporation) of the entire exercise price (determined in accordance with
the Stock Option Agreement) for the number of shares specified in the
notice.  Upon any such exercise of a
Stock Option by a Participant the Corporation shall cause the transfer agent of
Common Shares of the Corporation to promptly deliver to such Participant or the
legal representative of such Participant, as the case may be, a share
certificate in the name of such Participant or the legal representative of such
Participant, as the case may be, representing the number of shares specified in
the notice.

 

(g)           Rights of Participants.  The Participants shall have no rights
whatsoever as shareholders in respect of any of the Common Shares subject to
the Stock Option (including, without limitation, any right to receive dividends
or other distributions, voting rights, warrants or rights under any rights
offering) other than Common Shares in respect of which Participants have
exercised their Stock Option to purchase and which have been issued by the
Corporation.

 

(h)           Third Party Offer.  If at any time when a Stock Option remains
unexercised with respect to any Common Shares, a general offer to purchase all
of the issued shares of the Corporation is made by a third party, the
Corporation shall use its best efforts to bring such offer to the attention of
the Participants as soon as practicable and the Corporation may, at its option,
require the acceleration of the time for the exercise of the Stock Options
granted under the Plan and of the time for the fulfillment of any conditions or
restrictions on such exercise.

 

(i)            Termination.  If a
Participant is dismissed as an officer or employee by the Corporation or any of
its subsidiaries for cause, all unexercised Stock Options of that Participant
under the Plan shall immediately become terminated and shall lapse
notwithstanding the original term of any Stock Option granted to such
Participant under the Plan.

 

(j)            Disability or Retirement.  If a Participant ceases to be an employee
(and if such Participant is an officer, such Participant ceases to be an
officer) of the Corporation (and, if such Participant is an employee or officer
of any Subsidiary of the Corporation, such Participant also ceases to be an
employee or officer of any such Subsidiary) as a result of:

 

(i)            disability or illness
preventing the Participant from performing the duties routinely performed by
such Participant (“Disability”);

 

(ii)           retirement at the normal retirement age prescribed
by the Corporation pension plan of which the Participant is a member (“Retirement”);
or

 

(iii)          such other circumstances as may be approved by the
Committee,

 

such Participant shall have the
right for a period of three (3) years (or until the normal expiry date of any
Stock Options of such Participant if earlier) from the date of ceasing to be an
officer or employee to exercise any unexpired Stock Options to the extent they
were exercisable on the date of ceasing to be an officer or employee.  Upon the expiration of such three (3) year
period (or such shorter period, if applicable), all unexercised Stock Options
of that Participant shall immediately become terminated and shall lapse
notwithstanding the original term of any Stock Options granted to such
Participant. This Section 7(j) shall not apply to any officer or employee that
is a director of the Corporation or any of its subsidiaries after the time that
such officer or employee ceases to be an officer or employee of the Corporation
and of its subsidiaries.

 

(k)           Deceased Participant.  In the event of the death of any Participant
(other than a director of the Corporation or any of its subsidiaries who is not
an officer or employee of the Corporation or any of its subsidiaries), the
legal representative of such deceased Participant shall have the right for a
period of three (3) years (or until the normal expiry date of any Stock Options
of such deceased Participant if earlier) from the date of death

 

5

 

of such deceased Participant to exercise any unexpired
Stock Options of such deceased Participant to the extent they were exercisable
on the date of death.  Upon the
expiration of such three (3) year period (or such shorter period, if
applicable), all unexercised Stock Options of such deceased Participant shall
immediately become terminated and shall lapse notwithstanding the original term
of any Stock Options granted to such deceased Participant under the Plan.

 

In the event of the death of
any Participant who is a director of the Corporation or any of its Subsidiaries
and who is not an officer or employee of the Corporation or any of its
subsidiaries, the legal representative of such deceased Participant shall have
the right for a period of one (1) year (or until the normal expiry date of any
Stock Options of such deceased Participant if earlier) from the date of death
of such deceased Participant to exercise any unexpired Stock Options of such
deceased Participant to the extent they were exercisable on the date of
death.  Upon the expiration of such one
(1) year period (or such shorter period, if applicable), all unexercised Stock
Options of such deceased Participant shall immediately become terminated and
shall lapse notwithstanding the original term of any Stock Options granted to
such deceased Participant under the Plan.

 

(l)            Other Termination.  If a Participant ceases to be an employee
(and if such Participant is an officer, such Participant ceases to be an
officer) of the Corporation (and, if such Participant is an employee or officer
of any Subsidiary of the Corporation, such Participant also ceases to be an
employee or officer of any such Subsidiary) for a reason other than those specified
in Section 7(i), 7(j) or 7(k) hereof, such Participant shall have the right for
a period of sixty (60) days (or until the normal expiry date of any Stock
Options of such Participant if earlier) from the date of ceasing to be an
officer or employee to exercise any unexpired Stock Options to the extent they
were exercisable on the date of ceasing to be an officer or employee.  Upon the expiration of such sixty (60) day
period (or such shorter period, if applicable), all unexercised Stock Options
of that Participant shall immediately become terminated and shall lapse
notwithstanding the original term of any Stock Options granted to such
Participant under the Plan.  This Section
7(l) shall not apply to any officer or employee that is a director of the Corporation
or any of its Subsidiaries after the time that such officer or employee ceases
to be an officer or employee of the Corporation and its Subsidiaries.

 

(m)          Ceasing to be a Director.  If a Participant ceases to be a director
(and, if such Participant is a director of any of the subsidiaries of the
Corporation, such Participant also ceases to be a director of any such
Subsidiary) of the Corporation for any reason other than as specified in
Section 6(k) hereof, such Participant shall have the right for a period of one
(1) year (or until the normal expiry date of the Stock Option rights of such
Participant if earlier) from the date of ceasing to be a director to exercise
any outstanding Stock Options to the extent they were exercisable on the date
of ceasing to be a director of the Corporation and its Subsidiaries.  Upon the expiration of such one (1) year
period (or such shorter period, if applicable), all unexercised Stock Options
of that Participant shall immediately become terminated and shall lapse notwithstanding
the original term of any Stock Options granted to such Participant under the
Plan.  This Section 7(m) shall not apply
to any director of the Corporation or any of its Subsidiaries that is an
officer or employee of the Corporation or any of its Subsidiaries after the
time such person ceases to be a director of the Corporation and its
Subsidiaries.

 

(n)           Discretion to Extend Exercise Period.  In the case of any Stock Option Agreement in
respect of Stock Options which have been granted previously and are outstanding
and which are held by any Participant (other than a director of the Company or
any of its subsidiaries who is not an officer or employee of the Company or any
of its subsidiaries), the Board of Directors shall have the authority to determine
in its sole discretion to extend any exercise period of one (1) year that is
specified in such Stock Option Agreement to apply following Disability,
Retirement, other special circumstances, or the death of the Participant as
described in sections 7(j) and 7(k) herein, by up to an additional two (2)
years (or until the normal expiry date of the Stock Option if earlier).

 

8.             Restricted Shares

 

(a)           Restricted Shares shall be subject to a restriction
period (after which restrictions shall lapse), which period shall be determined
by the Committee at its sole discretion (the “Restriction Period”) provided
that the Restriction Period shall not be less than one year. The Committee may
provide for the lapse of restrictions in installments where deemed appropriate.
The Committee may, at its discretion, provide that the Restricted Shares shall
be subject to Performance Objectives (as such term is defined in Section 9).

 

6

 

(b)           Except when the Committee determines otherwise pursuant
to Section 8(d), if a Participant terminates employment with the Corporation
and all Subsidiaries for any reason before the expiration of the Restriction
Period or the achievement of the specified Performance Objectives, if any, all
Restricted Shares still subject to restriction shall be forfeited by the
Participant and shall be reacquired by the Corporation.

 

(c)           Except as otherwise provided in this Section 8, no
Restricted Shares received by a Participant shall be sold, exchanged, transferred,
pledged, hypothecated or otherwise disposed of during the Restriction Period.

 

(d)           Subject to the minimum Restriction Period of one year,
in cases of death, Disability or Retirement of a Participant or other special
circumstances, the Committee may, in its sole discretion when it finds that a
waiver would be in the best interests of the Corporation, elect to waive any or
all remaining restrictions or extend the Restriction Period applicable to the
Restricted Shares held by that Participant.

 

(e)           The Committee may require, under such terms and
conditions as it deems appropriate or desirable, that the certificates for
Restricted Shares delivered under the Plan may be held in custody by a bank or
other institution, or that the Corporation may itself hold such shares in
custody until the Restriction Period expires or until restrictions thereon
otherwise lapse, and may require, as a condition of any Award of Restricted
Shares that the Participant shall have delivered a stock power endorsed in
blank relating to the Restricted Shares.

 

(f)            Nothing in this Section 8 shall preclude a Participant
from exchanging any Restricted Shares subject to the restrictions contained
herein for other Common Shares that are similarly restricted.

 

(g)           Subject to Section 8(e) and Section 10, each Participant
entitled to receive Restricted Shares under the Plan shall be issued a
certificate for such shares. Such certificate shall be registered in the name
of the Participant, and shall bear an appropriate legend reciting the terms, conditions
and restrictions, if any, applicable to such Award and shall be subject to
appropriate stop-transfer orders.

 

(h)           Except for the restrictions on Restricted Shares under
this Section 8, each Participant who receives Restricted Shares shall have the
rights of a shareholder with respect to such shares, including the right to
vote the shares and receive dividends and other distributions.

 

9.             Performance Units

 

(a)           Subject to the provisions of the Plan, the Committee
shall (i) determine and designate from time to time those Participants or
groups of Participants to whom Awards of Performance Units are to be made; (ii)
determine the Performance Period (the “Performance Period”) and Performance
Objectives (the “Performance Objectives”) applicable to such Awards; (iii)
determine the form of settlement of a Performance Unit pursuant to Section
9(f); and (iv) generally determine the terms and conditions of each such
Award.  The Award Agreement covering such
Performance Units shall specify a value for each Performance Unit or a formula
for determining the value of each Performance Unit at the time of settlement.

 

(b)           The Committee shall determine a Performance Period at
its sole discretion, provided that the Performance Period for any Award that
may involve the issuance of Shares shall not be less than one year.  Performance Periods may overlap and
Participants may participate simultaneously with respect to Performance Units
for which different Performance Periods are prescribed.

 

(c)           The Committee shall determine the Performance Objectives
of Awards of Performance Units. Performance Objectives may vary from
Participant to Participant and between groups of Participants and shall be
based upon such performance criteria or combination of factors as the Committee
may deem appropriate, including, but not limited to, minimum earnings, earnings
per share, earnings growth, earnings per share growth, return on equity or
share price appreciation. If during the course of a Performance Period, there
shall occur significant events that the Committee expects to have a substantial
effect on the applicable Performance Objectives during such period, the
Committee may revise such Performance Objectives.

 

(d)           At the beginning of a Performance Period, the Committee
shall determine for each Participant or group of Participants the number of
Performance Units in respect of which the Participant or member of the group of

 

7

 

Participants shall be entitled to payment if the
applicable Performance Objectives are met in whole or in part during the
Performance Period.

 

(e)           If a Participant terminates service with the Corporation
and all Subsidiaries during a Performance Period because of death, Disability,
Retirement, or under other circumstances where the Committee in its sole
discretion finds that a waiver would be in the best interests of the
Corporation, that Participant may, as determined by the Committee, be entitled
to a payment in respect of an Award of Performance Units at the end of the
Performance Period based upon the extent to which the Performance Objectives
were satisfied during such period, and such other factors as the Committee
deems relevant, and, if the Committee deems appropriate, prorated for the
portion of the Performance Period during which the Participant was employed by
the Corporation or any Subsidiary, provided, however, the Committee may provide
for an earlier payment in settlement of such Performance Units in such amount
and under such terms and conditions as the Committee deems appropriate or
desirable; or alternatively, the Committee may extend the Performance Period
for such Participant.  If a Participant
terminates service with the Corporation and all Subsidiaries during a Performance
Period for any reason, other than death, Disability or Retirement, then such
Participant shall not be entitled to any payment in respect of an Award of
Performance Units for that Performance Period unless the Committee shall
otherwise determine.

 

(f)            Each payment in respect of an Award of a Performance
Unit to which a Participant becomes entitled upon satisfying the applicable
Performance Objectives during the Performance Period shall be settled in whole
Common Shares, or cash, or a combination of Common Shares and cash either as a
lump sum payment or in annual installments, all as the Committee shall
determine, with payment to commence as soon as practicable after satisfaction
of the relevant Performance Objective or at the end of the relevant Performance
Period as set out in the Award Agreement.

 

(g)           Where Common Shares
are issued in settlement of Performance Units, such shares shall be valued at
their Fair Market Value on the date the relevant Performance Objective is
achieved or on the last day of the relevant Performance Period as set out in
the Award Agreement and the value of the Performance Units to which the
Participant is entitled shall be divided by such Fair Market Value of a common
Share in order to determine the number of Common Shares to which the
Participant is entitled in settlement of such Performance Units.

 

(h)           No Participant awarded a Performance Unit shall have any
right as a shareholder with respect to any shares covered by the Award prior to
the date such shares have been recorded on the Corporation’s official shareholder
records as having been issued or transferred to the Participant.

 

10.          Certificates for Common Shares

 

(a)           The Corporation shall not be required to issue or deliver any certificates for Common Shares pursuant to
any Award prior to: (i) the listing of such shares on any stock exchange on
which the Common Shares may then be listed; and (ii) the completion of any registration or qualification of such shares under any
Canadian or United States federal, provincial or state law, or any ruling or
regulation of any government body which the Corporation shall, in its sole
discretion, determine to be necessary or advisable or the Corporation being
satisfied that appropriate exemptions are available.

 

(b)           All certificates for Common Shares delivered under the
Plan shall also be subject to such stop-transfer orders and other restrictions
as the Committee may deem advisable under the rules, regulations, and other
requirements of applicable securities regulatory authorities, any stock
exchange upon which the Common Shares are then listed and any applicable
federal, state or local securities laws, and the Committee may cause a legend
or legends to be placed on any such certificates to make appropriate reference
to such restrictions.

 

11.          Beneficiary Designation

 

(a)           Each Participant may file with the Corporation a written
designation of one or more persons as the Beneficiary or Beneficiaries who
shall be entitled upon the Participant’s death to receive the benefits of any
Award payable or granted to the Participant under the Plan.  Subject to the requirements of law, a
Participant may from time to time revoke or change the Beneficiary designation
without the consent of any prior Beneficiary by filing a new designation with
the Corporation. The last such designation received by the Corporation shall be
controlling;

 

8

 

provided, however, that no designation, or change or
revocation thereof, shall be effective unless received by the Corporation prior
to the Participant’s death, and in no event shall it be effective as of a date
prior to such receipt.

 

(b)           If no such Beneficiary designation is in effect at the
time of a Participant’s death, or if no designated Beneficiary survives the
Participant or if such designation conflicts with applicable law, the
Participant’s estate shall be entitled to receive the benefits of any Award
held by the Participant, as such benefits are determined in accordance with
this Plan, upon the Participant’s death. If the Committee is in doubt as to the
right of any person to receive the benefits of such Award, the Corporation may
retain such benefits, without liability for any interest thereon, until the
Committee determines the rights thereto, or the Corporation may pay such
benefits into any court of appropriate jurisdiction and such payment shall be a
complete discharge of the liability of the Corporation therefor.

 

12.          Transfers and Leaves of Absence

 

Solely
for the purposes of the Plan: (a) a transfer of a Participant’s employment
without an intervening period from the Corporation to a Subsidiary or vice
versa, or from one Subsidiary to another, shall not be deemed a termination of
employment; and (b) a Participant who is granted in writing a leave of absence
in accordance with the applicable policies of the Corporation shall be deemed
to have remained in the employ of the Corporation or a Subsidiary, as the case
may be, during such leave of absence.

 

13.          Stock Adjustments

 

In the event of a share dividend,
share split, issuance of shares or instruments convertible into shares (other
than pursuant to the Plan) for less than market value, share consolidation,
share reclassification, exchange of shares, recapitalization, amalgamation,
merger, consolidation, corporate arrangement, reorganization, liquidation or
the like of or by the Corporation, the Committee may make such adjustment, if
any, of the number of Common Shares, or of the exercise price, or both, as it
shall deem appropriate to give proper effect to such event, including to
prevent, to the extent possible, substantial dilution or enlargement of rights
granted to Participants under the Plan. 
In any such event, the maximum number of shares available under the Plan
may be appropriately adjusted by the Committee subject to obtaining all
necessary regulatory approvals.  If
because of a proposed merger, amalgamation or other corporate arrangement or
reorganization, the exchange or replacement of shares in the Corporation for
those in another company is imminent, the Committee may, in a fair and equitable
manner, determine the manner in which all unexercised Stock Option rights and
other Awards granted under the Plan shall be treated including, for example,
requiring the acceleration of the time for the exercise of such rights by the
Participants and of the time for the fulfilment of any conditions or
restrictions on such exercise or waiving conditions or restrictions on such
Awards in whole or in part.  The
determination by the Committee as to the terms of any of the foregoing
adjustments shall be conclusive and binding.

 

14.          Withholding

 

The
Corporation shall have the right to deduct from any cash payment made under the
Plan any federal, provincial, state or other taxes required by law to be
withheld with respect to such payment. 
It shall be a condition to the obligation of the Corporation to deliver
Common Shares upon the exercise of any Stock Option, upon payment of a
Performance Unit or upon delivery of Restricted Shares that the Participant pay
to the Corporation such amount as may be requested by the Corporation for the
purpose of satisfying any liability for such withholding taxes. Any Award
Agreement may provide that the Participant may elect, in accordance with any
conditions set forth in such Award Agreement, to pay a portion or all of such
withholding taxes in Common Shares in such manner as the Corporation may
specify.

 

15.          Amendment and Termination

 

(a)           Subject to paragraph (b), the Committee may amend,
suspend, or discontinue the Plan at any time, provided that all necessary
regulatory approvals are obtained and no such action shall adversely affect any
Awards already granted to a Participant without the consent of that
Participant, except to the extent, if any, provided in the Plan or in the
Award.  If any law, agreement or exchange
on which Common Shares of the Corporation are traded

 

9

 

requires shareholder approval for an amendment to become
effective, no such amendment shall become effective unless approved by vote of
the Corporation’s shareholders.

 

(b)           Notwithstanding paragraph (a), any amendment to the Plan
involving a fundamental change to the Plan shall become effective only upon
approval by vote at a meeting of shareholders of the Corporation.  For greater certainty, an amendment involving
a fundamental change to the Plan includes an amendment which may lead to
significant dilution in the number of the Corporation’s outstanding Common
Shares or may provide additional benefits to eligible insider participants,
such as (i) any amendment involving an increase in the maximum number of Common
Shares issuable under the Plan; (ii) any amendment involving a change to the
eligible participants which would have the potential of broadening or
increasing insider participation; (iii) any amendment involving the addition of
any form of financial assistance; (iv) any amendment involving the addition of
a cashless exercise feature, payable in cash or securities, which does not
provide for a full deduction of the number of underlying Common Shares; and (v)
any amendment involving a reduction in the pricing of an option, restricted
share or performance unit, other than in connection with a Common Share split,
subdivision or other similar Common Share reorganization.  Amendments to the Plan involving, (x) any amendment
of an administrative or a “housekeeping” nature; (y) any amendment involving a
change in the vesting provisions under the Plan; and (z) an amendment involving
a change to the termination provisions to the Plan which does not entail an
extension beyond the original expiry date, may be made by the Committee in
accordance with paragraph (a).

 

16.          Effective Date

 

This
amendment and restatement of the Plan shall be effective as of March 3, 2005,
subject to its approval by the shareholders of the Corporation. No Restricted
Shares or Common Shares in payment of Performance Units may be issued under the
Plan until such shareholder approval is obtained.  If shareholder approval is not obtained, the Incentive Share Option
Plan, in its form prior to this amendment and restatement, shall continue in
effect. Stock Options granted prior to March 3, 2005 shall continue to be
governed by the terms and conditions in effect immediately prior to this
amendment and restatement of the Plan.

 

10

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