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WWW.EXFILE.COM, INC. -- 888-775-4789 -- N.A. GALVANIZING & COATINGS, INC. -- EXHIBIT 10.5.1 TO FORM 10-K

    EXHIBIT
10.5.1

     

    
      FORM OF SUBORDINATED
NOTE

       

    

    THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD,
PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAWS, OR (2) THE CORPORATION RECEIVES AN OPINION OF COUNSEL,
WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE CORPORATION, THAT THIS NOTE
MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED IN THE MANNER
CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR APPLICABLE STATE SECURITIES LAWS.

     

    

    Principal
Amount: $______________

    Dated:________________________

    Subordinated
Note No: ___________

    

    

    NORTH
AMERICAN GALVANIZING & COATINGS, INC.

    

    10.0%
SUBORDINATED NOTE

    DUE
JULY 31, 2014

    

    1.        
   General.  North
American Galvanizing & Coatings, Inc., a Delaware corporation (the
“Corporation,” which term includes any successor Person as defined below), for
value received, hereby promises to pay to _____________________ (“Holder,” which
term includes any registered assigns), the principal sum of
_______________________ ($_______________) on July 31, 2014 (the “Maturity
Date”), unless previously redeemed, and to pay simple interest on the
outstanding principal amount hereof from the date hereof, or from the most
recent interest payment date (each such date, an “Interest Payment Date”),
quarterly in arrears on the last day of March, June, September and December of
each year, commencing September 30, 2009, at the rate of 10.0% per annum until
the principal hereof shall have become due and
payable.    The amount of interest payable on any Interest
Payment Date shall be computed on the basis of a 360-day year of twelve 30-day
months and, for any period shorter than a full quarterly period shall be
computed on the basis of a 30-day month, and for any period less than a full
calendar month shall be computed based on the number of days elapsed in such
month.  In the event that any date on which the principal of or
interest on this Subordinated Note is payable is not a Business Day (as defined
below), then the payment payable on such date will be made on the next
succeeding day that is a Business Day (without any interest or other payment in
respect of any such delay), except that if such next succeeding Business Day
falls in the next calendar year, then such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such date.

     

    The
interest installment so payable, and punctually paid or duly provided for, on
any Interest Payment Date will be paid to the Person in whose name this
Subordinated Note (or any Subordinated Note(s) issued in exchange herefor or in
place hereof) is registered at the close

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    of
business on the regular record date for such Interest Payment Date, which shall
be as of 5:00 p.m., Tulsa, Oklahoma time, on the first day of the month, whether
or not a Business Day, in which the relevant Interest Payment Date occurs (or
would have occurred but for fact that the Interest Payment Date was not a
Business Day).  Any such interest installment not punctually paid or
duly provided for shall be paid to the Person in whose name this Subordinated
Note (or any Subordinated Note(s) issued in exchange herefor or in place hereof)
is registered at the close of business on a special record date (rather than on
the regular record date) to be fixed by the Corporation for the payment of such
defaulted interest, notice of which shall be given to the Person in whose name
this Subordinated Note (or any Subordinated Notes(s) issued in exchange herefor
or in place hereof) is registered not less than 10 days prior to such special
record date, or may be paid at any time in any other lawful manner.

    

    The
principal of and interest on this Subordinated Note shall be payable at the
office or agency of the Paying Agent maintained for that purpose in any coin or
currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts; provided, however, that,
payment of the principal and interest on this Subordinated Note may be made at
the option of the Corporation by (i) check mailed to the Person in whose name
this Subordinated Note is registered as of the relevant record date at such
address as shall appear in the Subordinated Note Register or (ii) by transfer to
an account maintained by the Person in whose name this Subordinated Note is
registered as of the relevant record date, provided that proper written transfer
instructions have been received by the relevant record date.

    

    This
Subordinated Note is one of a series of Subordinated Notes of the Corporation in
an aggregate principal amount of up to $[_________] issued pursuant to
the Corporation’s offer and sale of $10,000,000 of Units, as described in the
Corporation’s Confidential Private Placement Memorandum dated July 2009, and any
amendments thereto, which shall have been received by Holder (herein sometimes
referred to as the “Subordinated Notes”).

    

    The term
“Business Day” shall mean any weekday that is not a legal holiday in New York,
New York and is not a day on which banking institutions in New York, New York
are authorized or required by law or regulation to be closed.

    

    The term
“Indebtedness” shall mean, whether recourse is to no, all or a portion of the
assets of the Corporation and whether or not contingent, (i) every
obligation of the Corporation for money borrowed; (ii) every obligation of
the Corporation evidenced by bonds, debentures, notes or other similar
instruments, including obligations incurred in connection with the acquisition
of property, assets or businesses; (iii) every reimbursement obligation of
the Corporation with respect to letters of credit (if and to the extent drawn
upon), banker’s acceptances or similar facilities issued for the account of the
Corporation; (iv) every obligation of the Corporation issued or assumed as
the deferred purchase price of property or services (but excluding trade
accounts payable or accrued liabilities to trade creditors arising in the
ordinary course of business); (v) every capital lease obligation of the
Corporation; (vi) the net obligations of the Corporation whether incurred
on, prior to or after the date of this Subordinated Note, for claims in respect
of derivative products, including interest rate, foreign exchange rate and
commodity forward contracts, options and swaps and similar arrangements; and
(vii) every 

     

    
      
         

      

      
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    obligation
of the type referred to in clauses (i) through (vi) of another Person and all
dividends of another Person the payment of which, in either case, the
Corporation has guaranteed or is responsible or liable for, directly or
indirectly, as obligor or otherwise.

    

    The term
“Indebtedness Ranking on a Parity with the Subordinated Notes” shall mean
Indebtedness, whether outstanding on the date of execution of this Subordinated
Note or hereafter created, assumed or incurred, to the extent such Indebtedness
by its terms ranks equally with and not prior or senior to, or subordinate or
junior to, the Subordinated Notes in the right of payment upon the happening of
the dissolution, winding-up, liquidation or reorganization of the
Corporation. The
securing of any Indebtedness, otherwise constituting Indebtedness Ranking on a
Parity with the Subordinated Notes, shall not be deemed to prevent such
Indebtedness from constituting Indebtedness Ranking on a Parity with the
Subordinated Notes.

    

    The term
“Indebtedness Ranking Junior to the Subordinated Notes” shall mean any
Indebtedness, whether outstanding on the date of execution of this Subordinated
Note or hereafter created, assumed or incurred, to the extent such Indebtedness
by its terms ranks subordinate or junior to and not equally with or prior or
senior to the Subordinated Notes (and any other Indebtedness Ranking on a Parity
with the Subordinated Notes) in right of payment upon the happening of the
dissolution, winding-up, liquidation or reorganization of the
Corporation.  The securing of any Indebtedness, otherwise constituting
Indebtedness Ranking Junior to the Subordinated Notes, shall not be deemed to
prevent such Indebtedness from constituting Indebtedness Ranking Junior to the
Subordinated Notes.

    

    The term
“Person” shall mean any legal person, including an individual, corporation,
estate, partnership, joint venture, association, joint-stock company, limited
liability company or trust.

    

    The term
“Required Holders” shall mean the current holders of Subordinated Notes
representing a majority of both the number of current holders of Subordinated
Notes and the aggregate principal amount of the Subordinated Notes.

    

    The term
“Senior Indebtedness” shall mean the principal of (and premium if any) and
interest, if any, on all Indebtedness, whether outstanding on the date of
execution of this Subordinated Note or hereafter created, assumed or incurred,
except Indebtedness Ranking on a Parity with the Subordinated Notes or
Indebtedness Ranking Junior to the Subordinated Notes, and any deferrals,
renewals or extensions of such Senior Indebtedness.

     

    2.           Redemption.  The
Corporation shall have the right to redeem this Subordinated Note in whole or in
part, in minimum denominations of $10,000 principal, on one or more occasions at
any time beginning on the date hereof until the Maturity Date (each such date of
redemption, a “Redemption Date”), in an amount equal to 100% of the principal
amount of the Subordinated Note to be redeemed plus any accrued and unpaid
interest thereon to the date of such redemption, without any prepayment
penalty (the
“Redemption Price”).   The Redemption Price shall be paid prior
to 12:00 noon, New York, New York time, on the date of such

     

     

    
      
         

      

      
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    redemption
or at such earlier time as the Corporation determines.  Any redemption
pursuant to this paragraph will be made upon not less than 10 days nor more than
60 days notice.

    

    3.         
  Modification and
Waiver.    The Corporation may, with the consent of
the Required Holders, modify or amend the Subordinated Notes for the purpose of
adding any provision to, or changing in any manner or eliminating any of the
provisions of, the Subordinated Notes or modifying in any manner the rights of
the holders of the Subordinated Notes; provided, however, that no such
modification or amendment shall, without the consent of each holder of Subordinated
Notes then outstanding and affected thereby: (i) change the Maturity Date of any
Subordinated Note, or reduce the principal amount of, or any installment of,
principal of or interest on the Subordinated Notes; (ii) reduce the rate or
extend the time of payment of interest, except as provided for herein; (iii)
change any of the provisions of the Subordinated Notes relating to redemption;
(iv) make the principal of, or interest payment on, the Subordinated Notes
payable in any coin or currency other than that provided in the Subordinated
Notes; (v) impair or affect the right of any holder of Subordinated Notes to
institute suit for the payment of the Subordinated Notes as provided in the
Subordinated Notes; (vi) reduce the percentage of the principal amount of the
Subordinated Notes required to consent to, modify or amend the Subordinated
Notes or for any waiver of compliance with provisions of the Subordinated Notes
or waiver of Defaults as stated in the Subordinated Notes; (vii) make any change
adverse to a Holder with respect to the subordination provisions; or (viii)
modify any of the foregoing provisions.

    

    4.      
     Events of
Default.    Any one or more of the following events
of default shall constitute an “Event of Default” hereunder (whatever the reason
for such Event of Default and whether it shall be voluntary or involuntary,
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

     

    
      	
               
      

            	
              (a)

            	
              default
      in the payment of any interest on the Subordinated Notes, whether or not
      such payment is prohibited by the subordination provisions of the
      Subordinated Notes, or any other Indebtedness of the Corporation, when
      due, and continuance of such default for a period of 30 days;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              default
      in the payment of any principal of the Subordinated Notes (whether or not
      such payment is prohibited by the subordination provisions of the
      Subordinated Notes or any other Indebtedness of the Corporation) when due
      whether at maturity, upon redemption, by declaration of acceleration of
      maturity or otherwise; or

            

    

    

    
      	
               
      

            	
              (c)

            	
              default
      in the performance, or breach, of any covenant of the Corporation in the
      Subordinated Notes (other than a covenant, a default in whose performance
      or whose breach is dealt with specifically elsewhere in this Section
       4), and continuance of such default or breach for a period of 90
      days after there has been given, by registered or certified mail, to the
      Corporation by the holders of at least 50% in aggregate principal amount
      of the outstanding Subordinated Notes a written notice specifying such
      default or breach and requiring it to be remedied and stating that such
      notice is a “Notice of Default” hereunder;
or

            

    

    

    
      
         

      

      
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              (d)

            	
              a
      court having jurisdiction in the premises shall enter a decree or order
      for relief in respect of the Corporation in an involuntary case under any
      applicable bankruptcy, insolvency or other similar law now or hereafter in
      effect, or appointing a receiver, liquidator, assignee, custodian,
      trustee, sequestrator or similar official of the Corporation or for any
      substantial part of its property, or ordering the winding-up or
      liquidation of its affairs, and such decree or order shall remain unstayed
      and in effect for a period of 90 consecutive days;
  or

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      Corporation shall commence a voluntary case under any applicable
      bankruptcy, insolvency or other similar law now or hereafter in effect,
      shall consent to the entry of an order for relief in an involuntary case
      under any such law, or shall consent to the appointment of or taking
      possession by a receiver, liquidator, assignee, trustee, custodian,
      sequestrator or other similar official of the Corporation or of any
      substantial part of its property, or shall make any general assignment for
      the benefit of creditors, or shall fail generally to pay its debts as they
      become due; or

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      voluntary or involuntary dissolution, winding-up or termination of the
      Corporation, except in connection with mergers, consolidations, sale of
      assets or certain other transactions set forth in paragraph 6
      below.

            

    

    

    If an Event of Default with respect to
the Subordinated Notes at the time outstanding occurs and is continuing, then in
every such case the holders of not less than 50% in aggregate principal amount
of the Subordinated Notes then outstanding may declare the principal amount of
all Subordinated Notes to be due and payable immediately, by a notice in writing
to the Corporation, and upon any such declaration, the same shall become
immediately due and payable.

    

    The foregoing provisions, however, are
subject to the condition that if, at any time after the principal of the
Subordinated Notes shall have been so declared due and payable, and before any
judgment or decree for the payment of the moneys due shall have been obtained or
entered as hereinafter provided, (i) the Corporation shall pay or shall deposit
with the Paying Agent a sum sufficient to pay  all matured installments of
interest upon all the Subordinated Notes and the principal of any and all
Subordinated Notes which shall have become due other than by acceleration (with
interest upon such principal at
an annual rate of 10.0% to the date of such payment or deposit), and (ii) any
and all Events of Default hereunder, other than the non-payment of the principal
of the Subordinated Notes which shall have become due solely by such declaration
of acceleration, shall have been cured, waived or otherwise remedied as provided
herein, then, in every such case, the Required Holders, by written notice to the
Corporation, may rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any
subsequent Event of Default or shall impair any right consequent
thereon.

    

    
      
         

      

      
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    In case the holders of the Subordinated
Notes shall have proceeded to enforce any right under the Subordinated Notes and
such proceedings shall have been discontinued or abandoned because of such
rescission or annulment or for any other reason or shall have been determined
adverse to such holders, then, and in every such case, the Corporation and the
holders of the Subordinated Notes shall be restored respectively to their
several positions and rights hereunder, and all rights, remedies and powers of
the Corporation and the holders of the Subordinated Notes shall continue as
though no such proceeding had been taken.

    

    No holder of any Subordinated Note
shall have any right by virtue of or by availing of any provision of the
Subordinated Notes to institute any suit, action or proceeding in equity or at
law or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless such holder previously shall have given to the Corporation
written notice of an Event of Default and the continuance thereof with respect
to the Subordinated Notes specifying such Event of Default, as hereinbefore
provided, and unless also the holders of not less than 50% in aggregate
principal amount of the Subordinated Notes then outstanding join in such action,
suit or proceeding, it being understood and intended, and being expressly
covenanted by the taker and holder of every Subordinated Note with every other
taker and holder, that no one or more holders of Subordinated Notes shall have
any right in any manner whatsoever by virtue of or by availing of any provision
of the Subordinated Notes to affect, disturb or prejudice the rights of any
other holder of Subordinated Notes, or to obtain or seek to obtain priority over
or preference to any other such holder, or to enforce any right under the
Subordinated Notes, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Subordinated Notes.

    

    All powers and remedies given by this
Section 4 to the holders of the Subordinated Notes shall, to the extent
permitted by law, be deemed cumulative and not exclusive of any other powers and
remedies available to the holders of the Subordinated Notes, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in the Subordinated Notes or otherwise
established with respect to the Subordinated Notes, and no delay or omission of
any holder of any of the Subordinated Notes to exercise any right or power
accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of, or
acquiescence in, any such Event of Default; and, subject to the provisions of
this paragraph, every power and remedy given by this Section 4 or by law to the
holders of the Subordinated Notes may be exercised from time to time, and as
often as shall be deemed expedient, by such holders of the Subordinates
Notes.

    

    The Required Holders shall have the
right to direct the time, method, and place of conducting any proceeding for any
remedy available, or exercising any trust or power conferred on the holders of
the Subordinated Notes.  Prior to any declaration accelerating the
maturity of the Subordinated Notes, the Required Holders may, on behalf of the
holders of all of the Subordinated Notes, waive any past default or Event of
Default and its consequences except an Event of Default (a) in payment of
principal of or interest on any of the Subordinated Notes (unless such Event of
Default has been cured and the Corporation has paid (or deposited with Paying
Agent) a sum
sufficient to pay all matured installments of interest and principal due other

     

     

    
      
         

      

      
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    than by
acceleration or (b) in respect of covenants or provisions hereof which cannot be
modified or amended without the consent of the holder of each Subordinated Note
affected.  Upon any such waiver, the Event of Default covered thereby
shall be deemed to be cured for all purposes, and the Corporation and the
holders of the Subordinated Notes shall be restored to their former positions
and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other Event of Default or impair any right consequent
thereon.  Any consent or waiver by the Holder shall be conclusive and
binding upon such Holder and upon all future holders and owners of this
Subordinated Note and of any Subordinated Note issued in exchange herefor or in
place hereof (whether by registration of transfer or otherwise), irrespective of
whether or not any notation of such consent or waiver is made upon this
Subordinated Note.  Whenever any default or Event of Default hereunder
shall have been waived as permitted by this paragraph, such default or Event of
Default shall for all purposes of the Subordinated Notes be deemed to have been
cured and not continuing.

    

    5.           Merger, Consolidation, Sale
of Assets and Other Transactions.    Nothing
contained in this Subordinated Note shall prevent any consolidation or merger of
the Corporation with or into any other Person (whether or not affiliated with
the Corporation, as the case may be), or successive consolidations or mergers in
which the Corporation or its successor or successors, as the case may be, shall
be a party or parties, or shall prevent any sale, conveyance, transfer or lease
of all or substantially all the property of the Corporation, or its successor or
successors as the case may be, to any other Person (whether or not affiliated
with the Corporation, or its successor or successors, as the case may be)
authorized to acquire and operate the same; provided, that (a) the Corporation
is the surviving Person, or the Person formed by or surviving any such
consolidation or merger (if other than the Corporation), or to which such sale,
conveyance, transfer or lease of property is made, is a Person organized and
existing under the laws of the United States or any State thereof or the
District of Columbia, and (b) upon any such consolidation, merger, sale,
conveyance, transfer or lease, the due and punctual payment of the principal of
and interest on the Subordinated Notes according to their tenor and the due and
punctual performance and observance of all the covenants and conditions of this
Subordinated Note to be kept or performed by the Corporation shall be expressly
assumed by the Person formed by such consolidation, or into which the
Corporation shall have been merged, or by the Person which shall have acquired
such property, as the case may be, and (c) immediately after giving effect to
such consolidation, merger, sale, conveyance, transfer or lease, no Event of
Default shall exist.

    

    In the case of any such consolidation,
merger, conveyance or transfer and upon the assumption by the successor Person
of the obligation of due and punctual payment of the principal of and interest
on all of the Subordinated Notes and the due and punctual performance and
observance of all of the covenants and conditions of the Subordinated Notes to
be performed or observed by the Corporation, such successor Person shall succeed
to and be substituted for the Corporation, with the same effect as if it had
been named herein as the party of the first part, and the Corporation thereupon
shall be relieved of any further liability or obligation hereunder or upon the
Subordinated Notes.  Such successor Person thereupon may cause to be
signed, and may issue either in its own name or in the name of the Corporation,
any or all of the Subordinated Notes.    All the
Subordinated Notes theretofore or thereafter issued shall in all 

     

    
      
         

      

      
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    respects
have the same legal rank and benefit as this Subordinated Note, as though all of
such Subordinated Notes had been issued at the date of the execution
hereof.

    

    6.           Agreement to Subordinate;
Subordination.  The Corporation covenants and agrees, and by
acceptance hereof,  Holder likewise covenants and agrees, that the
Subordinated Notes shall be issued subject to the provisions of this Section 6;
and each holder of a Subordinated Note, whether upon original issue or upon
transfer or assignment thereof, accepts and agrees to be bound by such
provisions.

    

    The payment by the Corporation of the
principal of and interest on the Subordinated Notes or any other amounts which
may be due on the Subordinated Notes pursuant to the terms hereof or otherwise
shall, to the extent and in the manner hereinafter set forth, be subordinated
and junior in right of payment to all Senior Indebtedness, whether outstanding
at the date of this Subordinated Note or thereafter incurred.  No
provision of this Section 6 shall prevent the occurrence of any Event of Default
hereunder.

    

    In the event and during the
continuation of any event of default by the Corporation in the payment of
principal, interest or any other payment due on any Senior Indebtedness, or in
the event that the maturity of any Senior Indebtedness has been accelerated
because of an event of default with respect to the Senior Indebtedness, or if
any judicial proceeding shall be pending with respect to any such event of
default with respect to the Senior Indebtedness, then, in any such case, no
payment shall be made by the Corporation with respect to the principal
(including redemption payments) of or interest on the Subordinated Notes or any
other amounts which may be due on the Subordinated Notes pursuant to the terms
hereof or otherwise.

    

    In the event of the acceleration of the
maturity of the Subordinated Notes, no payment shall be made by the Corporation
with respect to the principal (including redemption payments pursuant to Section
2 of this Subordinated Note) or interest on the Subordinated Notes or any other
amounts which may be due on the Subordinated Notes pursuant to the terms hereof
or otherwise until the holders of all Senior Indebtedness outstanding at the
time of such acceleration shall receive payment in full of all amounts due on
such Senior Indebtedness (including any amounts due upon
acceleration).

    

    In the event that, notwithstanding the
foregoing, any payment shall be received by the Holder when such payment is
prohibited by the preceding paragraphs of this Section 6, such payment shall be
held in trust for the benefit of, and shall be paid over or delivered to, the
holders of Senior Indebtedness or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any of such Senior
Indebtedness may have been issued, as their respective interests may appear, but
only to the extent that the holders of the Senior Indebtedness (or their
representative or representatives or a trustee or trustees) notify the Holder
and the Corporation in writing within 90 days of such payment of the amounts
then due and owing on such Senior Indebtedness, and only the amounts specified
in such notice shall be paid to the holders of such Senior
Indebtedness.

    

    
      
         

      

      
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    Upon any payment by the Corporation or
distribution of assets of the Corporation of any kind or character, whether in
cash, property or securities, to creditors upon the Corporation’s liquidation,
dissolution, winding up, reorganization, assignment for the benefit of its
creditors, marshaling of its assets or any bankruptcy, insolvency, debt
restructuring or similar proceeding in connection with any insolvency or
bankruptcy proceeding involving the Corporation, all Senior Indebtedness of the
Corporation shall first be paid in full, or payment thereof provided for in
money in accordance with its terms, before any payment is made by the
Corporation on account of the principal of or interest on the Subordinated Notes
or any other amounts which may be due on the Subordinated Notes pursuant to the
terms hereof or otherwise; and, upon any such event, any payment by the
Corporation, or distribution of assets of the Corporation of any kind or
character, whether in cash, property or securities, which the holders of the
Subordinated Notes would be entitled to receive from the Corporation, except for
the provisions of this Section 6, shall be paid by the Corporation or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other Person
making such payment or distribution, or by the holders of the Subordinated Notes
if received by them, directly to the holders of Senior Indebtedness of the
Corporation (on a pro rata basis, as calculated by the Corporation) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent
necessary to pay all such Senior Indebtedness in full, in money or money’s
worth, after giving effect to any concurrent payment or distribution to or for
the holders of such Senior Indebtedness, before any payment or distribution is
made to the holders of the Subordinated Notes.

    

    In the event that, notwithstanding the
foregoing, any payment or distribution of assets of the Corporation of any kind
or character prohibited by the foregoing, whether in cash, property or
securities, shall be received by the holders of the Subordinated Notes before
all Senior Indebtedness is paid in full, or provision is made for such payment
in money in accordance with its terms, such payment or distribution shall be
held in trust for the benefit of, and shall be paid over or delivered to, the
holders of such Senior Indebtedness or their representative or representatives,
or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing such Senior Indebtedness may have been issued, as their
respective interests may appear, as calculated by the Corporation, for
application to the payment of all Senior Indebtedness remaining unpaid to the
extent necessary to pay all such Senior Indebtedness in full in money in
accordance with its terms, after giving effect to any concurrent payment or
distribution to, or for the benefit of the holders of, such Senior
Indebtedness.  For purposes of this Section 6, the words “cash, property or
securities” shall not be deemed to include shares of stock of the Corporation as
reorganized or readjusted, or securities of the Corporation or any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Section
6 with respect to the Subordinated Notes to the payment of Senior Indebtedness
that may at the time be outstanding, provided that (i) such Senior Indebtedness
is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and (ii) the rights of the holders of such
Senior Indebtedness are not, without the consent of such holders, altered by
such reorganization or readjustment.  The consolidation of the
Corporation with, or the merger of the Corporation into, another Person or the
liquidation or dissolution of the Corporation following the sale, conveyance,
transfer or lease of its property as an entirety, or substantially as an

     

    
      
         

      

      
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    entirety,
to another Person upon the terms and conditions provided for in Section 5 of
this Subordinated Note shall not be deemed a dissolution, winding up,
liquidation or reorganization for the purposes of this Section 6 if such other
Person shall, as a part of such consolidation, merger, sale, conveyance,
transfer or lease, comply with the conditions stated in Section 5 of this
Subordinated Note.

    

    Subject to the payment in full of all
Senior Indebtedness, the rights of the holders of the Subordinated Notes shall
be subrogated to the rights of the holders of such Senior Indebtedness to
receive payments or distributions of cash, property or securities of the
Corporation, as the case may be, applicable to such Subordinated Notes until the
principal of and interest on the Senior Indebtedness shall be paid in full; and,
for the purposes of such subrogation, no payments or distributions to the
holders of such Senior Indebtedness of any cash, property or securities to which
the holders of the Subordinated Notes would be entitled, except for the
provisions of this Section 6, and no payment pursuant to the provisions of this
Section 6 to or for the benefit of the holders of such Senior Indebtedness by
holders of the Subordinated Notes shall, as between the Corporation, its
creditors other than holders of Senior Indebtedness of the Corporation, and the
holders of the Subordinated Notes, be deemed to be a payment by the Corporation
to or on account of such Senior Indebtedness.  It is understood that
the provisions of this Section 6 are, and are intended solely for the purposes
of, defining the relative rights of the holders of the Subordinated Notes on the
one hand, and the holders of such Senior Indebtedness on the other
hand.

    

    Nothing contained in this Section 6 or
elsewhere in this Subordinated Note is intended to or shall impair, as between
the Corporation, its creditors other than the holders of Senior Indebtedness of
the Corporation, and the holders of the Subordinated Notes, the obligation of
the Corporation, which is absolute and unconditional, to pay to the holders of
the Subordinated Notes the principal of and interest on the Subordinated Notes
as and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the holders of
the Subordinated Notes and creditors of the Corporation, as the case may be,
other than the holders of Senior Indebtedness of the Corporation, as the case
may be, nor shall anything herein or therein prevent the holder of any
Subordinated Note from exercising all remedies otherwise permitted by applicable
law upon an Event of Default, subject to the rights, if any, under this Section
6 of the holders of such Senior Indebtedness in respect of cash, property or
securities of the Corporation, as the case may be, received upon the exercise of
any such remedy.

    

    Holder, by Holder’s acceptance of this
Subordinated Note, authorizes and directs the Corporation on Holder’s behalf to
take such action as may be necessary or appropriate to effectuate the
subordination provided in this Section 6 and appoints the Corporation as
Holder’s attorney in fact for any and all such purposes.

    

    Upon any payment or distribution of
assets of the Corporation referred to in this Section 6, the holders of the
Subordinated Notes shall be entitled to conclusively rely upon any order or
decree entered by any court of competent jurisdiction in which such insolvency,
bankruptcy, receivership, liquidation, reorganization, dissolution, winding-up
or similar case or proceeding is pending, or a certificate of the trustee in
bankruptcy, liquidating trustee, custodian, 

     

     

    
      
         

      

      
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    receiver,
assignee for the benefit of creditors, agent or other person making such payment
or distribution, delivered to the holders of the Subordinated Notes, for the
purpose of ascertaining the persons entitled to participate in such payment or
distribution, the holders of Senior Indebtedness and other indebtedness of the
Corporation, as the case may be, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Section 6.

    

    No right of any present or future
holder of any Senior Indebtedness of the Corporation to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of the Corporation, as the case may be, or by
any act or failure to act, in good faith, by any such holder of any Senior
Indebtedness, or by any noncompliance by the Corporation, with the terms,
provisions and covenants of the Subordinated Notes, regardless of any knowledge
thereof that any such holder of Senior Indebtedness may have or otherwise be
charged with.

    

    Without in any way limiting the
generality of the foregoing paragraph, the holders of Senior Indebtedness of the
Corporation may, at any time and from time to time, without the consent of or
notice to the holders of the Subordinated Notes, without incurring
responsibility to the holders of the Subordinated Notes and without impairing or
releasing the subordination provided in this Section 6 or the obligations
hereunder of the holders of the Subordinated Notes to the holders of such Senior
Indebtedness, do any one or more of the following: (i) change the
manner, place or terms of payment or extend the time of payment of, or renew or
alter, such Senior Indebtedness, or otherwise amend or supplement in any manner
such Senior Indebtedness or any instrument evidencing the same or any agreement
under which such Senior Indebtedness is outstanding; (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing such Senior Indebtedness; (iii) release any Person liable in any
manner for the collection of such Senior Indebtedness; and (iv) exercise or
refrain from exercising any rights against the Corporation, as the case may be,
and any other Person.

    

    7.       
    Denominations, Transfer and
Exchange.    The Subordinated Notes are issuable
without coupons in minimum denominations of $100,000 and any integral multiple
of $50,000.  This Subordinated Note has not been registered under the
Securities Act of 1933, as amended (the “Securities Act”) or any state
securities laws and may not be offered, sold, pledged, assigned or otherwise
transferred unless (i) a registration statement with respect hereto is effective
under the Securities Act and any applicable state securities laws or (ii) Holder
receives approval of the transfer from the Corporation.  In all cases,
Corporation approval of transfer shall not be granted unless the Holder provides
to the Corporation, upon surrender of this Subordinated Note, and along with a
written instrument or instruments of transfer in form satisfactory to the
Corporation duly executed by holder hereof or his attorney duly authorized in
writing, an opinion of counsel, which counsel and opinion are satisfactory to
Corporation, that none of the offer, sale, pledge, assignment or other transfer
of this Subordinated Note will result in any violation of the applicable
securities laws.  Upon any such transfer, one or more new Subordinated
Notes of authorized denominations and for the same aggregate principal amount
and series will be issued to the designated transferee or
transferees.  In the event of any permitted transfer of this
Subordinated Note, the transferring party will be responsible for paying
Corporation’s cost of transfer of this Subordinated Note, including any transfer
agent costs and 

     

     

    
      
         

      

      
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    Corporation’s
legal fees associated with considering and/or effecting the proposed transfer of
this Subordinated Note.  In case of transfer of this Subordinated Note
by operation of law, the transferee agrees to notify the Corporation of such
transfer and of its address, and to submit appropriate evidence regarding such
transfer so that this Subordinated Note may be registered in the name of the
transferee.  Communications sent to any registered owner shall be
effective as against all Holders or transferees of this Subordinated Note not
registered at the time of sending the communication.

    

    8.       
    Persons Deemed
Owners.    Prior to due presentment for registration
or transfer of this Subordinated Note, the Corporation, any authenticating
agent, any paying agent, any transfer agent and the registrar may deem and treat
Holder as the absolute owner hereof (whether or not this Subordinated Note shall
be overdue and notwithstanding any notice of ownership or writing hereon made by
anyone other than the security registrar for the Subordinated Notes) for the
purpose of receiving payment of or on account of the principal hereof and
interest due hereon and for all other purposes, and neither the Corporation nor
any authenticating agent nor any paying agent nor any transfer agent nor any
registrar shall be affected by any notice to the contrary.

    

    9.       
    No Recourse Against
Others.    No recourse shall be had for the payment
of the principal of or interest on this Subordinated Note, or for any claim
based hereon, or otherwise in respect hereof, against any incorporator,
stockholder, officer or director, past, present or future, as such, of the
Corporation or of any predecessor or successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issuance hereof, expressly waived and
released.

    

    10.            Governing
Law.  THE SUBORDINATED NOTES SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.

    

    11.           Paying Agent and
Registrar.  The Corporation shall act as the paying agent and
registrar for the Subordinated Notes.

    

                12.           Certain Federal Income Tax
Matters.  The Subordinated Notes were issued as part of an
“investment unit” (within the meaning of Section 1273(c)(2) of the Internal
Revenue Code of 1986, as amended (the “Code”)) together with warrants (the
“Warrants”) to purchase shares of common stock (the “Common Stock”) of the
Corporation.  Each such investment unit consists of a Subordinated
Note having a stated principal amount of $50,000 and Warrants to purchase 7,500
shares of Common Stock.  Pursuant to Treasury Regulations
§ 1.1273-2(h), the Corporation has determined that the aggregate “issue
price” of each such investment unit is $50,000, which amount shall be allocated
to the Subordinated Notes and the Warrants in proportion to their relative fair
market values as of the issue date.  The Corporation shall notify
Holder as to the Corporation’s allocation within 60 days after the issue
date.

     

     

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Corporation has caused this instrument to be duly executed
and sealed this ___ day of [_____], 2009.

     

     

    
 

    NORTH
AMERICAN GALVANIZING & COATINGS, INC.

     

     

     

    By:  _________________________________________

    Name:

    Title:

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        13WWW.EXFILE.COM, INC. -- 888-775-4789 -- N.A. GALVANIZING & COATINGS, INC. -- EXHIBIT 10.6.1 TO FORM 10-K

    EXHIBIT
10.6.1

     

    
      FORM
OF WARRANT

       

    

    NEITHER
THIS WARRANT NOR THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO
IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE
SATISFACTORY TO THE COMPANY, THAT THIS WARRANT OR SUCH SECURITIES, AS
APPLICABLE, MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED, OR OTHERWISE TRANSFERRED IN
THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.

    

    NORTH
AMERICAN GALVANIZING & COATINGS, INC.

    

    Warrant
To Purchase Common Stock

    

    Warrant
No.: [__]

    Number of
Shares of Common Stock: [_______]

    Date of
Issuance: [______], 2009
(“Issuance
Date”)

    

    North
American Galvanizing & Coatings, Inc., a Delaware corporation (the “Company”), hereby certifies
that, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, [_____________________], the
registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company, at the Exercise
Price (as defined below) then in effect, upon surrender of this Warrant to
Purchase Common Stock (including any Warrants to Purchase Common Stock issued in
exchange, transfer or replacement hereof, the “Warrant”), at any time or
times on or after the Issuance Date, but not after 11:59 p.m., Tulsa,
Oklahoma time, on
the Expiration Date (as defined below), fully paid nonassessable shares of
Common Stock (as defined below) (the “Warrant Shares”) free from all
liens and charges with respect to the issuance thereof.  Except as
otherwise defined herein, capitalized terms in this Warrant shall have the
meanings set forth in Section 14.  This Warrant is one of the Warrants
(as defined in the Company’s Confidential Private Placement Memorandum dated
July 2009) to purchase Common Stock (the “PIPE Warrants”) issued as a
portion of the Units (as defined below) offered and sold in the PIPE Offering
(as defined below) pursuant to the Subscription and Suitability Agreement
accepted by the Company on [_______], 2009, (the “Subscription Date”) by and
among the Company and Holder (the “Subscription and Suitability
Agreement”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.   EXERCISE OF
WARRANT.

     

    (a) Mechanics of
Exercise.  Subject to the terms and conditions hereof, this
Warrant may be exercised by the Holder on any day on or after the Issuance Date,
in whole or in part, by delivery of a written notice in the form attached hereto
as Exhibit B
(the “Exercise Notice”),
of the Holder’s election to exercise this Warrant and payment to the Company of
an amount equal to the applicable Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in
cash or wire transfer of immediately available funds.  The Holder
shall not be required to deliver the original Warrant in order to effect an
exercise hereunder.  Execution and delivery of the Exercise Notice
with respect to less than all of the Warrant Shares shall have the same effect
as cancellation of the original Warrant and issuance of a new Warrant evidencing
the right to purchase the remaining number of Warrant Shares.  On or
before the second (2nd) Business Day following
the date on which the Company has received each of the Exercise Notice and
confirmation from the Company’s bank that the Aggregate Exercise Price has been
paid (the “Exercise Delivery
Documents”), the Company shall transmit by facsimile an acknowledgment of
confirmation of receipt of the Exercise Delivery Documents to the Holder and the
transfer agent then used by the Company (the “Transfer
Agent”).  On or before the fifth (5th)
Business Day following the date on which the Company has received all of the
Exercise Delivery Documents (the “Share Delivery Date”), the
Company shall (X) provided that the Transfer Agent is participating in The
Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program,
upon the request of the Holder, credit such aggregate number of shares of Common
Stock to which the Holder is entitled pursuant to such exercise to the Holder’s
or its designee’s balance account with DTC through its Deposit Withdrawal Agent
Commission system; provided that such shares of Common Stock credited to the DTC
account shall not be registered under the Securities Act of 1933, as amended
(the “Securities Act”)
or any state securities laws and shall be subject to significant transfer
restrictions, and a notation shall be placed on such DTC account indicating that
such shares are not registered under the Securities Act or any state securities
laws and are subject to significant transfer restrictions, or (Y) if the
Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, issue and dispatch by overnight courier to the address as
specified in the Exercise Notice, a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of
shares of Common Stock to which the Holder is entitled pursuant to such
exercise; provided that the shares of Common Stock evidenced by such certificate
shall not be registered under the Securities Act or any state securities laws
and shall be subject to significant transfer restrictions, and a legend shall be
placed on such certificate indicating that such shares are not registered under
the Securities Act or any state securities laws and are subject to significant
transfer restrictions.  If this Warrant is submitted in connection
with any exercise pursuant to this Section 1(a) and the number of Warrant Shares
represented by this Warrant submitted for exercise is greater than the number of
Warrant Shares being acquired upon an exercise, then the Company shall as soon
as practicable and in no event later than five (5) Business Days after any
exercise and at its own expense, issue a new Warrant (in accordance with Section
6(d)) representing the right to purchase the number of Warrant Shares
purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which this Warrant is
exercised.  No fractional shares of Common Stock are to be issued upon
the exercise of this Warrant, but rather the number of shares of Common Stock to
be issued shall be rounded down to the nearest whole number and the portion of
the Exercise Price paid with respect to any such fractional shares shall be
returned to Holder.

     

     

     

    
      
         

      

      
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    (b) Exercise
Price.  For purposes of this Warrant, “Exercise Price” means $[___], subject to adjustment
as provided herein.

     

    (c) Disputes.  In
the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue
to the Holder the number of Warrant Shares that are not disputed and resolve
such dispute in accordance with Section 11.

     

    (d) Warrant Shares Not
Registered.  The Warrant Shares shall not be registered under
the Securities Act or any state securities laws unless the Company, in its sole
discretion, chooses to register the Warrant Shares.  The Warrant
Shares may not be offered, sold, pledged, assigned or otherwise transferred
unless (1) a registration statement with respect thereto is effective under the
Securities Act and any applicable state securities laws, or (2) Holder receives
approval of such transfer from the Company.  In all cases, Company
approval of transfer shall not be granted unless the Holder provides to Company
an opinion of counsel, which counsel and opinion are satisfactory to the
Company, that none of the offer, sale, pledge, assignment or other transfer of
such Warrant Shares will result in any violation of the applicable securities
laws.  In the event of any permitted transfer of Warrant Shares, the
transferring party will be responsible for paying the Company’s cost of transfer
of any such Warrant Shares, including any transfer agent costs and the Company’s
legal fees associated with considering and/or effecting the proposed transfer of
such Warrant Shares.

     

    2.   ADJUSTMENT OF EXERCISE PRICE
AND NUMBER OF WARRANT SHARES.   If the Company at any time
on or after the Subscription Date subdivides (by any stock split, stock
dividend, recapitalization or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced and
the number of Warrant Shares will be proportionately increased.  If
the Company at any time on or after the Subscription Date combines (by
combination, reverse stock split or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares will be proportionately
decreased.  Any adjustment under this Section 2 shall become effective
at the close of business on the date the subdivision or combination becomes
effective.

     

    3.   FUNDAMENTAL
TRANSACTIONS. The Company shall not enter into or be party to a
Fundamental Transaction unless (i)  the Successor Entity assumes in writing
all of the obligations of the Company under this Warrant in accordance with the
provisions of this Section (3) prior to such Fundamental Transaction, including
agreements to deliver to each holder of Warrants in exchange for such Warrants a
security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant, including, without limitation, an
adjusted exercise price equal to the value for the shares of Common Stock
reflected by the terms of such Fundamental Transaction, and exercisable for a
corresponding number of shares of capital stock equivalent to the shares of
Common Stock acquirable and receivable upon exercise of this Warrant (without
regard to any limitations on the exercise of this Warrant) prior to such
Fundamental Transaction and (ii) (I) the Successor Entity (or its Parent
Entity) is a publicly traded corporation whose common stock is quoted on or
listed for trading on an Eligible Market or (II) the Successor Entity is a
private company and the consideration paid in such Fundamental 

     

    
      
         

      

      
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    Transaction
is solely cash consideration.  Upon the occurrence of any Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so
that from and after the date of such Fundamental Transaction, the provisions of
this Warrant referring to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume
all of the obligations of the Company under this Warrant with the same effect as
if such Successor Entity had been named as the Company herein.  Upon
consummation of the Fundamental Transaction, the Successor Entity shall deliver
to the Holder confirmation that there shall be issued upon exercise of this
Warrant at any time after the consummation of the Fundamental Transaction, in
lieu of the shares of the Common Stock (or other securities, cash, assets or
other property purchasable upon the exercise of the Warrant prior to such
Fundamental Transaction), such shares of stock, securities, cash, assets or any
other property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had this Warrant been exercised immediately
prior to such Fundamental Transaction, as adjusted in accordance with the
provisions of this Warrant.  In addition to and not in substitution
for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to
receive securities or other assets with respect to or in exchange for shares of
Common Stock (a “Corporate Event”), the Company shall make appropriate provision
to insure that the Holder will thereafter have the right to receive upon an
exercise of this Warrant within ninety (90) days after the consummation of the
Fundamental Transaction but prior to the Expiration Date, in lieu of the shares
of the Common Stock (or other securities, cash, assets or other property)
purchasable upon the exercise of the Warrant prior to such Fundamental
Transaction, such shares of stock, securities, cash, assets or any other
property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had the Warrant been exercised immediately prior
to such Fundamental Transaction.  The provisions of this Section shall
apply similarly and equally to successive Fundamental Transactions and Corporate
Events and shall be applied without regard to any limitations on the exercise of
this Warrant.

     

    4.   NONCIRCUMVENTION.  The
Company hereby covenants and agrees that the Company will not, by amendment of
its Certificate of Incorporation, Bylaws or through any reorganization, transfer
of assets, consolidation, merger, scheme of arrangement, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, and will at all
times in good faith carry out all the provisions of this Warrant and take all
action as may be required to protect the rights of the
Holder.  Without limiting the generality of the foregoing, the Company
(i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in
effect and, (ii) shall take all such actions as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable shares of Common Stock upon the exercise of this
Warrant.

     

    5.   WARRANT HOLDER NOT DEEMED A
STOCKHOLDER.  Except as otherwise specifically provided herein,
the Holder, solely in such Person’s capacity as a holder of this Warrant, shall
not be entitled to vote or receive dividends or be deemed the holder of capital
stock of the Company for any purpose, nor shall anything contained in this
Warrant be construed to confer upon the Holder, solely in such Person’s capacity
as the Holder of this Warrant, any of the rights of a stockholder of the Company
or any right to vote, give or withhold consent to any 

     

     

    
      
         

      

      
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    corporate
action (whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings,
receive dividends or subscription rights, or otherwise, prior to the issuance to
the Holder of the Warrant Shares which such Person is then entitled to receive
upon the due exercise of this Warrant.  In addition, nothing contained
in this Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a
stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company.  Notwithstanding this Section 5, the
Company shall provide the Holder with copies of the same notices and other
information given to the stockholders of the Company generally,
contemporaneously with the giving thereof to the stockholders.

     

    6.   REISSUANCE OF
WARRANTS.

     

    (a) Transfer of
Warrant.  If this Warrant is to be transferred in accordance
with Section 13, the Holder shall surrender this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the
Holder a new Warrant (in accordance with Section 6(d)), registered as the Holder
may request, representing the right to purchase the number of Warrant Shares
being transferred by the Holder and, if less then the total number of Warrant
Shares then underlying this Warrant is being transferred, a new Warrant (in
accordance with Section 6(d)) to the Holder representing the right to purchase
the number of Warrant Shares not being transferred.

     

    (b) Lost, Stolen or Mutilated
Warrant.  Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the Holder to the Company in customary form and,
in the case of mutilation, upon surrender and cancellation of this Warrant, the
Company shall execute and deliver to the Holder a new Warrant (in accordance
with Section 6(d)) representing the right to purchase the Warrant Shares then
underlying this Warrant.

     

    (c) Exchangeable for Multiple
Warrants.  This Warrant is exchangeable, upon the surrender
hereof by the Holder at the principal office of the Company, for a new Warrant
or Warrants (in accordance with Section 6(d)) representing in the aggregate the
right to purchase the number of Warrant Shares then underlying this Warrant, and
each such new Warrant will represent the right to purchase such portion of such
Warrant Shares as is designated by the Holder at the time of such surrender;
provided, however, that no Warrants for fractional shares of Common Stock shall
be given.

     

    (d) Issuance of New
Warrants.  Whenever the Company is required to issue a new
Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of
like tenor with this Warrant, (ii) shall represent, as indicated on the face of
such new Warrant, the right to purchase the Warrant Shares then underlying this
Warrant (or in the case of a new Warrant being issued pursuant to Section 6(a)
or Section 6(c), the Warrant Shares designated by the Holder which, when added
to the number of shares of Common Stock underlying the other new Warrants issued
in connection with such issuance, does not exceed the number of Warrant Shares
then underlying this Warrant), (iii) shall have an issuance date, as indicated
on the face of such new Warrant which is the same as the Issuance Date, and (iv)
shall have the same rights and conditions as this Warrant.

     

    
      
         

      

      
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    7.   NOTICES.  Whenever
notice is required to be given under this Warrant, unless otherwise provided
herein, such notice shall be in writing and shall be deemed effectively given
(i) upon personal delivery to the party to be notified, (ii) upon customary
confirmation of receipt if sent by facsimile, (iii) upon confirmed delivery by a
nationally recognized courier service providing next-business-day-delivery, or
(iv) three (3) Business Days after deposit with the United States Postal
Service, by registered or certified mail, postage prepaid and addressed to the
party to be notified, in each case at the address set forth on Exhibit B, or at
such other address as such party may designate by written notice to the other
party (provided that notice of change of address shall be effective upon receipt
by the party to whom such notice is addressed).  The Company shall
provide the Holder with prompt written notice of all actions taken pursuant to
this Warrant, including in reasonable detail a description of such action and
the reason therefor.  Without limiting the generality of the
foregoing, the Company will give written notice to the Holder immediately upon
any adjustment of the Exercise Price, setting forth in reasonable detail, and
certifying, the calculation of such adjustment.

     

    8.   AMENDMENT AND
WAIVER.  Except as otherwise provided herein, the provisions of
this Warrant may be amended and the Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company has obtained the written consent of the Required Holders;
provided that no such action may increase the exercise price of any PIPE Warrant
or decrease the number of shares or class of stock obtainable upon exercise of
any PIPE Warrant without the written consent of the Holder.  No such
amendment shall be effective to the extent that it applies to less than all of
the holders of the PIPE Warrants then outstanding.

     

    9.   GOVERNING LAW AND
FORUM.  This Warrant shall be governed by and construed and
enforced in accor­dance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by,
the internal laws of the State of Delaware.  The
parties hereto agree to submit to the exclusive jurisdiction of the federal and
state courts of the State of Delaware with respect to the
interpretation of this Warrant or for the purposes of any action arising out of
or related to this Warrant.

     

    10.   CONSTRUCTION;
HEADINGS.  This Warrant shall be deemed to be jointly drafted
by the Company and the Holder and shall not be construed against any person as
the drafter hereof.  The headings of this Warrant are for convenience
of reference and shall not form part of, or affect the interpretation of, this
Warrant.

     

    11.   DISPUTE
RESOLUTION.  In the case of a dispute as to the determination
of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall submit the disputed determinations or arithmetic calculations via
facsimile within two (2) Business Days of receipt of the Exercise Notice giving
rise to such dispute, as the case may be, to the Holder.  If the
Holder and the Company are unable to agree upon such determination or
calculation of the Exercise Price or the Warrant Shares within three Business
Days of such disputed determination or arithmetic calculation being submitted to
the Holder, then the Company shall, within two (2) Business Days submit via
facsimile the disputed determination of the Exercise Price to an independent,
reputable investment bank selected by the Company.  The Company shall
cause at its expense the investment bank to perform the determinations or
calculations and notify the Company and the Holder of the results no later than
twenty (20) 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Business
Days from the time it receives the disputed determinations or
calculations.  Such investment bank’s or accountant’s determination or
calculation, as the case may be, shall be binding upon all parties absent
demonstrable error.

     

    12.   REMEDIES, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this
Warrant shall be cumulative and in addition to all other remedies available
under this Warrant, at law or in equity (including a decree of specific
performance and/or other injunctive relief), and nothing herein shall limit the
right of the Holder to pursue actual damages for any failure by the Company to
comply with the terms of this Warrant.  The Company acknowledges that
a breach by it of its obligations hereunder may cause irreparable harm to the
Holder and that the remedy at law for any such breach may be
inadequate.  The Company therefore agrees that, in the event of any
such breach or threatened breach, the holder of this Warrant shall be entitled
to seek, in addition to all other available remedies, an injunction restraining
any breach, without the necessity of showing economic loss and without any bond
or other security being required.

     

    13.   TRANSFER.   This
Warrant has not been registered under the Securities Act or any state securities
laws and may not be offered, sold, pledged, assigned or otherwise transferred
unless (a) a registration statement with respect hereto is effective under the
Securities Act and any applicable state securities laws or (b) Holder receives
approval of such transfer from the Company.  In all cases, Company
approval of transfer shall not be granted unless the Holder provides to the
Company, upon surrender of this Warrant and along with a written instrument or
instruments of transfer in form satisfactory to the Company duly executed by
Holder or his attorney duly authorized in writing, an opinion of counsel, which
counsel and opinion are satisfactory to the Company, that none of the offer,
sale, pledge, assignment or other transfer of this Warrant will result in any
violation of the applicable securities laws.  In the event of any
permitted transfer of this Warrant, the transferring party will be responsible
for paying the Company’s cost of transfer of this Warrant, including any
transfer agent costs and Company’s legal fees associated with considering and/or
effecting the proposed transfer of this Warrant.

     

    14.   CERTAIN
DEFINITIONS.  For purposes of this Warrant, the following terms
shall have the following meanings:

     

    (a) “Business Day” means any day
other than Saturday, Sunday or other day on which commercial banks in New York,
New York are authorized or required by law to remain closed.

     

    (b) “Bylaws” means the Company’s
Amended and Restated Bylaws, as may be amended or restated in the
future.

     

    (c) “Certificate of Incorporation”
means the Company’s Restated Certificate of Incorporation, as amended, as may be
amended or restated in the future.

     

    (d) “Common Stock” means
(i) the Company’s shares of Common Stock, $0.10 par value, and
(ii) any share capital into which such Common Stock shall have been changed
or any share capital resulting from a reclassification of such Common
Stock.

     

    
      
         

      

      
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    (e) “Convertible Securities” means
any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

     

    (f) “Eligible Market” means the
Principal Market, the American Stock Exchange, The New York Stock Exchange,
Inc., The NASDAQ Capital Market or The NASDAQ Global Select Market.

     

    (g) “Expiration Date” means July
31, 2016.

     

    (h) “Fundamental Transaction” means
that the Company shall, directly or indirectly, in one or more related
transactions, (i) consolidate or merge with or into (whether or not the Company
is the surviving corporation) another Person, or (ii) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or
assets of the Company to another Person, or (iii) allow another Person to make a
purchase, tender or exchange offer that is accepted by the holders of more than
the 50% of either the outstanding shares of Common Stock (not including any
shares of Common Stock held by the Person or Persons making or party to, or
associated or affiliated with the Persons making or party to, such purchase,
tender or exchange offer), or (iv) consummate a stock purchase agreement or
other business combination (including, without limitation, a reorganization,
recapitalization or scheme of arrangement) with another Person whereby such
other Person acquires more than the 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the other Person or
other Persons making or party to, or associated or affiliated with the other
Persons making or party to, such stock purchase agreement or other business
combination), or (v) reorganize, recapitalize or reclassify its Common Stock, or
(vi) any “person” or “group” (as these terms are used for purposes of Sections
13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
50% of the aggregate ordinary voting power represented by issued and outstanding
Common Stock.

     

    (i) “Options” means any rights,
warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities.

     

    (j) “Parent Entity” of a Person
means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an
Eligible Market, or, if there is more than one such Person or Parent Entity, the
Person or Parent Entity with the largest public market capitalization as of the
date of consummation of the Fundamental Transaction.

     

    (k) “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity and a government or any
department or agency thereof.

     

    (l) “PIPE Offering” means the
Company’s offering of $10,000,000 of Units, comprised of $10,000,000 of 10%
Subordinated Notes and Warrants to Purchase 1,500,000 shares of Common Stock, as
described in the Company’s Confidential Private Placement Memorandum dated July
2009.

     

    (m) “Principal Market” means The
NASDAQ Global Market.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (n) “Required Holders” means the
current holders of PIPE Warrants representing a majority of both the number of
current holders of PIPE Warrants and the number of shares of Common Stock
underlying the PIPE Warrants.

     

    (o) “Successor Entity” means the
Person (or, if so elected by the Required Holders, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person with which
such Fundamental Transaction shall have been entered into.

     

    (p) “Unit” means $50,000 of 10%
Subordinated Notes and Warrants to Purchase 7,500 shares of Common Stock,
offered in the PIPE Offering.

     

     [Signature
Page Follows]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Company has caused this Warrant to Purchase Common Stock to be duly executed as
of the Issuance Date set out above.

    

    

    
      

         

        
          	 	      
                  NORTH
      AMERICAN GALVANIZING & COATINGS, INC.

                
	 	 
	 	 
	 	 
	 	      
                  By:  ________________________________________

                  Name:

                  Title:

                

        

         

      

       

       

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    EXERCISE
NOTICE

     

    TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
TO PURCHASE COMMON STOCK

    

    NORTH
AMERICAN GALVANIZING & COATINGS, INC.

     

    The undersigned holder hereby exercises
the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of North
American Galvanizing & Coatings, Inc., a Delaware corporation (the “Company”), evidenced by the
attached Warrant to Purchase Common Stock (the “Warrant”).  Capitalized
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

    

    1.  Payment of Exercise
Price.  The holder shall pay the Aggregate Exercise Price in the sum
of $___________________ to the Company in accordance with the terms of the
Warrant.

    

    2.  Delivery of Warrant
Shares.  The Company shall deliver to the holder __________ Warrant
Shares in accordance with the terms of the Warrant.

    

    Date:
_______________ __, ______

    

    
_____________________________

    Name of
Registered Holder

    

    

    By:           _____________________

    Name:

    Title:

    

     
 

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT

    

    

    The Company hereby acknowledges this
Exercise Notice and hereby directs its transfer agent to issue the above
indicated number of shares of Common Stock.

     

     

     

     

    
      

      
        

           

          
            	 	      
                    NORTH
      AMERICAN GALVANIZING & COATINGS, INC.

                  
	 	 
	 	 
	 	 
	 	      
                    By:  ________________________________________

                    Name:

                    Title:

                  

          

           

        

         

         

      

       

       

       

       

       

       

    

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    

    Company:

    North
American Galvanizing & Coatings, Inc.

    5314
South Yale Avenue

    Suite
1000

    Tulsa,
Oklahoma 74135

    Facsimile:
(918) 494-3999

    Attention:
Beth Hood, Chief Financial Officer

    

    Holder:

    [_________________]

    [_________________]

    [_________________]

    [_________________]

    Facsimile:
[_________________]

    Attention:
[_________________]

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