Document:

EX-10.28

Exhibit 10.28

Execution Copy

AMENDED
AND RESTATED SERVICES AGREEMENT

     THIS AMENDED AND RESTATED SERVICES AGREEMENT (“Agreement”) is entered into as of
September 18, 2008 (the “Effective Date”), by and between Red Man Distributors LLC, an
Oklahoma limited liability company (“RMD”) and McJunkin Red Man Corporation, a West
Virginia corporation (“MRM”). MRM and RMD are referred to collectively as the
“Parties” and individually as a “Party”.

RECITALS

     WHEREAS, pursuant to that certain services agreement effective as of December 1, 2007, RMD
engaged MRM to provide certain services in connection with the business of RMD, and MRM accepted
such engagement under the terms and conditions set forth therein (the “Original Services
Agreement”).

     NOW, THEREFORE, for and in consideration of the foregoing, and the mutual promises and
agreements set forth herein, the sufficiency of which is hereby acknowledged, the parties agree to
amend and restate the Original Agreement in its entirety as follows:

	1.	 	Engagement.

	 	A.	 	RMD hereby engages and retains MRM as an independent contractor. MRM hereby
accepts said engagement and retention under the terms and conditions contained herein.
	 
	 	B.	 	During the term of this Agreement, upon the request of RMD, MRM agrees to
provide general corporate and administrative services to RMD, including services
relating to accounting, treasury, legal and tax departments, and miscellaneous office
and administrative services, including management information systems, computer network
and telecommunications services, insurance administration and risk management (the
“Services”).
	 
	 	C.	 	MRM hereby grants to RMD a non-exclusive, non-transferable, royalty-free,
limited right and license to use the “Red Man” name solely as part of the trade name
and corporate name “Red Man Distributors LLC” in connection with operating the business
of RMD (the “License”). The License shall automatically terminate on each six
month anniversary of the date of this Agreement unless prior to each such six month
anniversary, MRM delivers written notice to RMD extending the License for the
subsequent six month period. RMD agrees that MRM shall have the right to review RMD’s
use of the “Red Man” name in order to ensure that such use meets the quality control
standards of MRM. RMD shall cooperate with MRM to correct any such use that fails to
meet MRM’s quality control standards. RMD agrees that MRM may at any time (at its sole
discretion), revoke and terminate the License and License Fee (as defined below).

	2.	 	Compensation for Services.

 

 

	 	A.	 	RMD shall make the following payments to MRM:

	 	(i)	 	If RMD requests MRM to provide the Services, RMD shall pay MRM
an annual services fee of $725,000, payable not more frequently than quarterly
in arrears within thirty (30) days following the end of each quarter (the
“Services Fee”) representing the allocable portion of MRM’s overhead
costs and other expenses associated with the provision of the Services,
including personnel and compensation thereof, building and equipment usage,
working capital management, and general administration, each to the extent
provided as of the date of this Services Agreement. For the avoidance of
doubt, the Services Fee does not include the direct, out-of-pocket costs
incurred by MRM on behalf of RMD in connection with the performance of the
Services, which will be passed through to RMD at cost (“Third Party
Expenses”). All Third Party Expenses shall be paid not more frequently
than quarterly in arrears within thirty (30) days following the end of each
quarter; and
	 
	 	(ii)	 	RMD shall pay MRM a license fee, payable not more frequently
than quarterly in arrears within thirty (30) days following the end of each
quarter, equal to 0.215% of RMD’s gross monthly revenue for the relevant month,
for the License (the “License Fee”).

	 	B.	 	MRM shall pay RMD a monthly commission, payable not more frequently than
quarterly in arrears within thirty (30) days following the end of each quarter, equal
to 1.4% of RMD’s gross monthly revenue for the relevant month from sales of products by
RMD that are sourced from MRM (the “Commission”).
	 
	 	C.	 	Payments of the Services Fee, Commission, License Fee and Third Party Expenses
shall be made by check payable to the recipient or by wire transfer of the relevant
amount to a bank account previously designated by the recipient.
	 
	 	D.	 	MRM will maintain reasonably complete and detailed books and records in
accordance with MRM’s standard business practices with respect to its provision of the
Services to RMD pursuant to this Agreement, including records supporting the Services
Fee. MRM will give RMD and its duly authorized representatives, agents, and attorneys
reasonable access to all such books and records during MRM’s regular business hours
after reasonable advance notice.
	 
	 	E.	 	The Parties shall review the Services Fee, Commission and License Fee at least
annually, and subject to the mutual agreement of the Parties, such amounts may be
adjusted to reflect the then current value of the Services, License and Commission, as
applicable.

	3.	 	Term. Unless this Agreement is terminated in accordance with Section 4 below, this
Agreement shall become effective on the Effective Date and shall remain in effect until the
15th anniversary of the Effective Date; provided that the term of this Agreement
shall be automatically extended for successive 15 year terms unless either MRM or RMD provides

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	 	 	written notice to the other party at least six months prior to then end of any such 15 year
period.

	4.	 	Termination.

	 	A.	 	Termination by MRM.

	 	(i)	 	Termination for Cause. In the event that RMD fails to
pay MRM any amounts due under this Agreement, and RMD continues to fail to make
such payment for thirty (30) days after RMD’s receipt of MRM’s written notice
of termination for cause, MRM may terminate this Agreement, in whole or in
part, by written notice to RMD specifying a date for termination. If RMD
materially breaches any provision of this Agreement, and (a) such breach is
incapable of cure, or (b) with respect to any such breaches capable of cure,
RMD does not cure such breach within thirty (30) days after written notice of
material breach, MRM may terminate this Agreement, including, without
limitation, the License, upon written notice to RMD.
	 
	 	(ii)	 	Termination for Insolvency of RMD. This Agreement,
including, without limitation, the License, shall automatically terminate if
RMD: (a) files for bankruptcy; (b) becomes or is declared insolvent; (c) is the
subject of any proceedings related to its liquidation, insolvency or the
appointment of a receiver or similar officer, which proceedings are not
dismissed within sixty (60) days after their commencement; (d) makes an
assignment for the benefit of all or substantially all of its creditors or (e)
enters into an agreement for the composition, extension, or readjustment of
substantially all of RMD’s obligations.

	 	B.	 	Termination by RMD.

	 	(i)	 	Termination For Cause. If MRM materially breaches any
provision of this Agreement and (a) such breach is incapable of cure, or (b)
with respect to any such breaches capable of cure, MRM does not cure such
breach within thirty (30) days after written notice of material breach, RMD may
terminate this Agreement upon written notice to MRM.
	 
	 	(ii)	 	Termination for Insolvency of MRM. This Agreement,
including, without limitation, the License, shall automatically terminate if
MRM: (a) files for bankruptcy; (b) becomes or is declared insolvent; (c) is the
subject of any proceedings related to its liquidation, insolvency or the
appointment of a receiver or similar officer, which proceedings are not
dismissed within sixty (60) days after their commencement; (d) makes an
assignment for the benefit of all or substantially all of its creditors or (e)
enters into an agreement for the composition, extension, or readjustment of
substantially all of MRM’s obligations.

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	 	C.	 	Effect of Termination. The expiration or termination of this Agreement
pursuant to the terms of this Section 4 or otherwise shall not relieve any of the
Parties of any obligations accruing prior to such termination, and any such termination
shall be without prejudice to the rights of either Party against the other conferred on
it by this Agreement. In the event of the termination of this Agreement pursuant to
this Section 4, both Parties shall retain all rights existing at law or equity.

	5.	 	Additional Credit Agreement Obligations.

	 	A.	 	Negative Pledge. RMD will not create, incur or suffer to exist any
Lien (other than tax Liens) upon any of its Accounts (as defined in the Uniform
Commercial Code as from time to time in effect in the State of New York).
	 
	 	B.	 	Reporting. RMD will furnish to MRM, within 15 days of the end of each
calendar month, or more frequently as MRM may reasonably request to permit MRM to
comply with its obligations under its primary revolving credit facility (the
“Credit Facility”), (i) an Accounts Receivable Certificate substantially in the
form of Exhibit A hereto, together with supporting information in connection therewith
as of the end of such month, (ii) a Collateral Report, substantially in the form of
Exhibit B hereto, setting forth (a) a detailed aging of RMD’s Accounts reconciled to
the Accounts Receivable Certificate delivered as of such date, (b) calculations
prepared by RMD to assist MRM with its determination of Eligible Accounts and Eligible
Inventory (as those terms are defined in the Credit Facility) and (c) a schedule and
aging of RMD’s accounts payable presented at the vendor level, and (iii) other
information or documents MRM may reasonably request to satisfy the reporting
obligations under the Credit Facility.
	 
	 	C.	 	Subrogation. (i) Each of RMD and MRM hereby acknowledges that RMD’s
Accounts owing to MRM or any of its subsidiaries (the “Intercompany Accounts”)
have been pledged as collateral for MRM’s obligations under its Credit Facility, and
(ii) each of RMD and MRM hereby agrees that, upon the occurrence and during the
continuance of an Event of Default (as defined in the Credit Facility) and following
notice to MRM by the collateral agent under the Credit Facility of its intent to
exercise such right, the collateral agent under the Credit Facility shall be subrogated
to the rights of MRM with respect to the Intercompany Accounts.

	6.	 	Limitation on Liabilities.

	 	A.	 	Limitations. Notwithstanding any provision of this Agreement to the
contrary (except for Section 6.B) or as otherwise required by applicable Law, neither
Party shall be liable to other Party or its respective officers, employees, agents,
members, partners, Affiliates, contractor or subcontractors, for any incidental,
indirect, punitive, exemplary, consequential or special damages, including damages for
loss of profits, loss of revenue, loss of savings, or losses by reason of cost of
capital connected with or arising or resulting from any performance or lack of
performance under this Agreement, even if such damages were foreseeable or a Party was
advised of the

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	 	 	 	possibility of such damages, and regardless of whether a
claim is based on contract, warranty, tort (including negligence or strict liability), violations of any
applicable deceptive trade practices act, or any other legal or equitable principle.

	 	B.	 	Exclusions. The limitations of liability set forth in Section 6.A are
not applicable to: (a) to any liability caused by or arising from (i) gross negligence,
willful misconduct, or fraud of a Party or any of its directors, officers, employees,
agents or other representatives in connection with the performance of this Agreement or
(ii) any bodily injury or physical damage to tangible property where such injury or
damage results from the gross negligence or willful misconduct of a Party or any of its
directors, officers, employees, agents or other representatives, except to the extent
due to the negligence or willful misconduct of the other Party or its directors,
officers or employees.

	7.	 	Covenant Not to Compete. Other than the distribution of oil country tubular goods in
North America, RMD shall not, anywhere in the world, directly or indirectly, engage or
otherwise participate, whether as an agent, director, officer, shareholder, partner, joint
venturer, investor, consultant, advisor, or otherwise, in any business in which, at the time
RMD first engages or participates in such business, MRM or any of its Affiliates is then
engaged.
	 
	8.	 	Conduct of Business. During the term of this Agreement, at all times when conducting
the business of RMD, RMD shall and RMD shall cause its employees, directors and officers to,
hold themselves out as employees, directors or officers, as applicable, of RMD, and not hold
themselves out as employees, directors, officers, consultants, advisors or otherwise of MRM or
any of its Affiliates (other than RMD).
	 
	9.	 	Notice. Any notice required or permitted to be given under this Agreement shall be
given in writing and shall be effective from the date sent by registered or certified mail, by
hand, facsimile or overnight courier to the addresses set forth below:

	 	 	 	 	 
	 

	 	To RMD:
	 	Red Man Distributors LLC

450 Gears Road

Suite 300

Houston, TX 77067

Attention: Kent Ketchum

Fax: (281) 872-4708
	 
	 	 	 	 
	 

	 	To MRM:
	 	McJunkin Red Man Corporation

8023 East 63rd Street

Suite 800

Tulsa, Oklahoma 74133

Attention: Stephen W. Lake

Fax: (918) 461-5375
	 
	 	 	 	 
	 

	 	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	 

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	 	McJunkin Red Man Corporation

8023 East 63rd Street

Suite 800

Tulsa, Oklahoma 74133

Attention: Craig Ketchum

Fax: (918) 461-5375

	10.	 	Governing Law. This Agreement is deemed to have been made and entered into in the
State of Oklahoma, and the law governing this Agreement and the transactions contemplated
hereby shall be that of the State of Oklahoma as in effect from time to time (without giving
effect to its conflict of law principles). The law of the State of Oklahoma shall apply to
any and all matters arising from or related to this Agreement. The Parties agree that any
legal proceeding based upon the provisions of this Agreement or breach thereof shall be
brought exclusively in any federal or state court located in the State of Oklahoma located in
the County of Tulsa, to the exclusion of all other courts and tribunals, except for matters
for which such courts do not exercise jurisdiction. The Parties hereby irrevocably and
unconditionally consent and agree to be subject to the jurisdiction of the aforesaid courts in
such proceedings. Each Party hereby irrevocably and unconditionally waives any objection to
the above courts based on lack of personal jurisdiction or inconvenient forum. Each of the
Parties hereto waives any right it may have to trial by jury in respect of any litigation
based on, arising out of, under or in connection with this Agreement or any course of conduct,
course of dealing, verbal or written statement or action of any Party hereto.
	 
	11.	 	Waiver. Any failure on the part of any Party hereto to comply with any of its
obligations, agreements or conditions hereunder may only be waived in writing by the Party to
whom such compliance is owed. Any such waiver by any Party shall not be considered as a
waiver of any subsequent failure to comply with any such obligation, agreement or condition or
any other hereunder. Any forbearance or delay on the part of either Party in notifying the
other Party of such Party’s failure to comply with any of its obligations, agreements or
conditions hereunder, shall not be construed as a waiver of the non-breaching Party’s right to
enforce such obligations, agreements or conditions for such failure to comply or any other
failure to comply.
	 
	12.	 	Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.
	 
	13.	 	Headings. The descriptive headings of the provisions of this Agreement are
formulated and used for convenience only and shall not be deemed to affect the meaning and
construction of any such provision.
	 
	14.	 	Binding Effect. The terms and conditions of this Agreement shall be binding upon,
and shall inure to the benefit of, the Parties hereto and their respective permitted
successors and assigns.

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	15.	 	Assignment. Neither this Agreement nor the rights or obligations of MRM or RMD
hereunder are assignable in whole or in part by either party without the prior written consent
of the other; provided, however, that MRM may assign its rights or delegate its obligations
under this Agreement in whole or in part to any Affiliate which has
the resources, capabilities and personnel necessary to fulfill MRM’s obligations under this Agreement without
the consent of RMD; provided further, however, that MRM shall guarantee the performance of
this Agreement by any such Affiliate.

	16.	 	Independent Contractor. Each Party is an independent contractor engaged in the
operation of its own respective business, and nothing in this Agreement shall be construed to
create a partnership, agency, joint venture, pooling, franchise or employer-employee
relationship between the Parties or between any Party and the other Party’s employees.
Neither Party shall be responsible for the compensation, payroll-related taxes, workers’
compensation, accident or health insurance or other benefits of employees of the other Party.
Neither Party has the power or authority to act for, represent, or bind the other Party (or
any of the other Party’s Affiliates) in any manner.
	 
	17.	 	Force Majeure. Continued performance of the Services, or any of them, may be
suspended immediately to the extent caused by any event or condition beyond the reasonable
control of the party suspending such performance including acts of God, fire, labor or trade
disturbance, war, civil commotion, compliance in good faith with any Law, unavailability of
materials or other event or condition whether similar or dissimilar to the foregoing (a
“Force Majeure Event”). MRM shall give prompt notice to RMD of the occurrence, nature
and anticipated duration of a Force Majeure Event giving rise to any suspension of the
Services, and the parties shall cooperate with each other to find alternative means and
methods for the provision of the suspended Service.
	 
	18.	 	Specific Performance. The parties hereto agree that irreparable damage would occur
in the event that any provision of this Agreement was not performed in accordance with the
terms hereof and that the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at Law or equity.
	 
	19.	 	Amendment. This Agreement may not be amended except by an instrument in writing
signed by a duly authorized officer or representative of each of the Parties hereto.
	 
	20.	 	Definitions. As used in this Agreement, the following terms when used herein with
initial capital letters, shall have the respective meanings as defined below:

	 	A.	 	“Affiliate” means, with respect to any Person, any other Person
controlling, controlled by or under common control with such Person, where “control”
means the possession, directly or indirectly, of the power to direct the management and
policies of a Person, whether through the ownership of voting securities, contract or
otherwise.

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	 	B.	 	“Law” means all statutes, regulations, directives, ordinances, orders,
rulings, agency or court interpretations, or other action of any governmental authority
in any jurisdiction in the world, whether currently in force or enacted during the
Term.
	 
	 	C.	 	“Lien” shall mean any mortgage, pledge, security interest,
hypothecation, assignment, lien (statutory or other) or similar encumbrance (including
any agreement to give any of the foregoing, any conditional sale or other title
retention agreement or any lease in the nature thereof).

	 	D.	 	“Person” means an individual, partnership, limited liability company,
corporation, joint stock company, trust (including a business trust), unincorporated
association, joint venture, firm, enterprise or other entity.

	21.	 	Entire Agreement. This Agreement constitutes the entire agreement between the
Parties regarding the subject matter of this Agreement, and supersedes all other prior
agreements, understandings and negotiations, both written and oral, including, without
limitation, the Original Services Agreement and the Limited Liability Company Operating
Agreement of RMD, among the Parties with respect to the subject matter of this Agreement.

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     IN WITNESS WHEREOF, RMD and MRM have caused this Agreement to be executed as of the date
above first written.

	 	 	 	 	 
	 	RED MAN DISTRIBUTORS LLC

 	 
	 	By:  	/s/ Craig Ketchum	 
	 	 	Name:  	Craig Ketchum	 
	 	 	Title:  	Chairman & CEO	 
	 
	 	MCJUNKIN RED MAN CORPORATION

 	 
	 	By:  	/s/ J.F. Underhill	 
	 	 	Name:  	J.F. Underhill	 
	 	 	Title:  	Executive VP & CFO	 

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Exhibit A

Accounts Receivable Report

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Exhibit B

Collateral Report

11EX-10.29

Exhibit 10.29

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of September 10, 2008 (this “Agreement”), by McJunkin
Red Man Holding Corporation, a Delaware corporation (the “Company”), and Andrew Lane (the
“Executive”).

     WHEREAS, the Company desires to employ the Executive as Chief Executive Officer and to utilize
his management services as indicated herein, and the Executive has agreed to provide such
management services to the Company; and

     WHEREAS, the Executive desires to accept the Company’s offer of employment.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valid
consideration, the sufficiency of which is acknowledged, the parties hereto agree as follows:

	1.	 	Employment

	 	1.1.	 	Term. The Company agrees to employ the Executive, and the Executive
agrees to be employed by the Company pursuant to this Agreement, for a period
commencing on September 10, 2008 (such date, the “Effective Date”) and
ending on the earlier of (i) the fifth (5th) anniversary of the Effective Date and (ii)
the termination of the Executive’s employment in accordance with Section 3 hereof (the
“Term”); provided, however, that on the fifth (5th) anniversary of the
Effective Date and each subsequent anniversary thereof, the Term shall automatically be
extended for one (1) year unless ninety (90) days’ written notice of non-renewal is
given by the Executive or the Company to the other party.
	 
	 	1.2.	 	Duties. During the Term, the Executive shall serve as Chief Executive
Officer of the Company and in such other positions as an officer or director of the
Company or its affiliates as the Executive and the Board of Directors of the Company
(the “Board”) shall mutually agree from time to time. In addition, the
Executive shall serve as a member of the Board during the Term. The Executive shall
perform such duties, functions and responsibilities commensurate with the Executive’s
positions as reasonably directed by the Board.
	 
	 	1.3.	 	Exclusivity. During the Term, the Executive shall devote his full time
and attention to the business and affairs of the Company, shall faithfully serve the
Company, and shall in all material respects conform to and comply with the lawful and
reasonable directions and instructions given to him by the Board, consistent with
Section 1.2 hereof. During the Term, the Executive shall use his best efforts to
promote and serve the interests of the Company and shall not engage in any other
business activity, whether or not such activity shall be engaged in for pecuniary
profit, except that the Executive may sit on the boards of other companies with the
consent of the Board, which shall not be unreasonably withheld.

 

 

	2.	 	Compensation

	 	2.1.	 	Salary. As compensation for the performance of the Executive’s
services hereunder, during the Term, the Company shall pay to the Executive a salary at
an annual rate of seven hundred thousand dollars ($700,000) payable in accordance with
the Company’s standard payroll policies (the “Base Salary”). The Base Salary
shall be reviewed annually and may be adjusted upward by the Board (or a committee
thereof) in its discretion, based on competitive data and the Executive’s performance.
No increase in Base Salary shall limit or reduce any other right or obligation to the
Executive under this Agreement and the Base Salary shall not be reduced at any time
(including after any such increase).
	 
	 	2.2.	 	Annual Bonus. Beginning with the fiscal year that commences on January
1, 2009, for each completed fiscal year during the Term, the Executive shall be
eligible to receive additional cash incentive compensation pursuant to the annual bonus
plan of the Company in effect at such time (the “Annual Bonus”). The target
Annual Bonus shall be 100% of the Executive’s Base Salary as in effect at the beginning
of such fiscal year with the actual Annual Bonus to be based upon such individual
and/or Company performance criteria established for each such fiscal year by the Board
in consultation with the Executive. The Executive shall be eligible to receive a
pro-rata Annual bonus for fiscal year 2008 based on a target bonus of 100% of Base
Salary and the Company performance criteria established for 2008.
	 
	 	2.3.	 	Equity

	 	a)	 	Stock Purchase. The Executive shall acquire $3 million
of the Company’s common stock (“Common Stock”) within thirty (30) days
of the commencement of employment. Such purchase will be at the fair market
value of the Common Stock on the date of purchase (such Common Stock so
acquired, the “Purchased Equity”) and will be pursuant to a
subscription agreement provided by the Company containing customary
representations and other terms. The Executive shall execute and become a party
to the Stockholders Agreement in the form attached hereto (the
“Stockholders Agreement”). The Stockholders Agreement will apply to
all shares of the Common Stock held by the Executive, including Purchased
Equity and shares obtained through the exercise of the Options (as defined
below).
	 
	 	b)	 	Stock Options. The Executive shall be granted options
in respect of $31 million of Common Stock. All such stock options (the
“Options”) shall be governed by the terms of the McJ Stock Option Plan
and shall become vested over time in equal installments on the second (2nd),
third (3rd), fourth (4th) and fifth (5th) anniversaries of the date of grant,
conditioned on continued employment through each applicable vesting date and
subject to the accelerated vesting as provided below in the event of certain

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	 	 	 	terminations of employment or the occurrence of a Change in Control (as
defined herein).

	 	2.4.	 	Employee Benefits. During the Term, the Executive shall be eligible to
participate in such health and other group insurance and other employee benefit plans
and programs of the Company and its affiliates as in effect from time to time on the
same basis as other senior executives of the Company.
	 
	 	2.5.	 	Vacation. During the Term, the Executive shall be entitled to paid
vacation in accordance with the Company’s vacation policy as in effect from time to
time.
	 
	 	2.6.	 	Business Expenses. The Company shall pay or reimburse the Executive
for all commercially reasonable business out-of-pocket expenses that the Executive
incurs during the Term in performing his duties under this Agreement upon presentation
of documentation and in accordance with the expense reimbursement policy of the Company
as approved by the Board (or a committee thereof) and in effect from time to time.

	3.	 	Termination of Employment

	 	3.1.	 	Generally. The Company may terminate the Executive’s employment for
any reason during the Term, and the Executive may voluntarily terminate his employment
for any reason during the Term, in each case (other than a termination by the Company
for Cause (as defined herein)) at any time upon not less than thirty (30) days’ notice
to the other party. Upon the termination of the Executive’s employment with the
Company for any reason, the Executive shall be entitled to any Base Salary earned but
unpaid through the date of termination, any earned but unpaid Annual Bonus for
completed fiscal years, any unreimbursed expenses in accordance with Section 2.6 hereof
and, to the extent not theretofore paid or provided, any other amounts or benefits
required to be paid or provided under any plan, program, policy or practice or other
contract or agreement of the Company and its affiliates through the date of termination
of employment (collectively, the “Accrued Amounts”).
	 
	 	3.2.	 	Certain Terminations

	 	a)	 	Termination by the Company other than for Cause or
Disability; Termination by the Executive for Good Reason. If the
Executive’s employment is terminated during the Term by the Company other than
for Cause or Disability, or by the Executive for Good Reason (as defined
herein), the Executive shall be entitled to: (i) the Accrued Amounts, (ii) a
pro-rata bonus for the fiscal year of termination, based on actual performance
through the end of the applicable fiscal year and the number of days that have
elapsed in the fiscal year through the date of termination (a “Pro-Rata
Bonus”), (iii) payment of an amount equal to the sum of 1/12 of Base Salary
and 1/12 of the target Annual Bonus each month for eighteen (18) months
following termination (the “Severance Payments”)

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	 	 	 	and (iv) continuation of medical benefits on the same terms as active senior
executives for eighteen (18) months following termination (“Medical
Continuation”). In addition, a portion of the Options granted pursuant
to Section 2.3(b) that are unvested at the time of such termination will
become vested, as follows: if termination occurs during the first two (2)
years of employment, a pro-rata portion of 1/4 of the shares subject to the
Options will vest, such pro-rata portion to be determined based on the
number of months worked since the date of grant divided by twenty four (24),
and if termination occurs during the third (3rd), fourth (4th) or fifth
(5th) years of employment, a pro-rata portion of 1/4 of the shares subject
to the Options will vest, such pro-rata portion to be determined based on
the number of months worked since the previous vesting date divided by
twelve (12) (“Pro-Rata Option Vesting”). Receipt of the Severance
Payments, Medical Continuation and Pro-Rata Option Vesting shall be
conditioned on: (i) the Executive’s continued compliance with his
obligations under Section 5 of this Agreement and (ii) the Executive’s
execution, delivery and non-revocation of a valid and enforceable general
release of claims (the “Release”) in the form attached hereto as
Exhibit A. In the event that the Executive breaches any of the covenants
set forth in Section 5 of this Agreement, the Executive shall immediately
return to the Company any portion of the Severance Payments that have been
paid to the Executive pursuant to this Section 3.2(a) and any shares or
other amounts received in respect of the Options that became vested pursuant
to this Section 3.2(a), and the Medical Continuation shall immediately
terminate. Subject to Section 3.2(c), the Company will commence payment of
the Severance Payments as soon as practicable following the effectiveness of
the Release. The Pro-Rata Bonus will be paid at the time the Company
ordinarily pays incentive bonuses to its executives with respect to the
fiscal year in which the termination occurs.

	 	b)	 	Termination upon Death or Disability. If the
Executive’s employment is terminated due to the Executive’s death or
Disability, the Executive (or the Executive’s estate, if applicable) will
receive (i) the Accrued Amounts, (ii) a Pro-Rata Bonus and (iii) Pro-Rata
Option Vesting.
	 
	 	c)	 	Section 409A Specified Employee. Notwithstanding
anything to the contrary contained herein, if the Executive is a “specified
employee” for purposes of Section 409A of the Internal Revenue Code (the
“Code”) and regulations and other interpretive guidance issued
thereunder (“Section 409A”), the Company shall not commence payment of
the Severance Payments to the Executive until one (1) day after the day which
is six (6) months after the Executive’s termination date (the “Delay
Period”), with the first (1st) payment equaling the total of all payment
that would have been paid during the Delay Period but for the application of
Section 409A to such payments. For purposes of this Agreement, the Executive’s
employment with the Company shall be considered to have terminated when the
Executive incurs a “separation from service” with the Company

4

 

	 	 	 	within the meaning of Section 409A(a)(2)(A)(i) of the Code, and applicable
administrative guidance issued thereunder.

	 	d)	 	Exclusive Remedy. The foregoing payments upon
termination of the Executive’s employment shall constitute the exclusive
severance payments due the Executive upon a termination of his employment under
this Agreement. The Executive acknowledges that the Medical Continuation is in
full satisfaction of the Company’s obligation under COBRA.

	 	3.3.	 	Resignation from All Positions. Upon the termination of the
Executive’s employment with the Company for any reason, the Executive shall be deemed
to have resigned, as of the date of such termination, from all positions he then holds
as an officer, director, employee and member of the Board (and any committee thereof)
and the board of directors (and any committee thereof) of any of the Company’s
affiliates.

	 	3.4.	 	Cooperation. Following the termination of the Executive’s employment
with the Company for any reason, the Executive agrees to reasonably cooperate with the
Company upon reasonable request of the Board and to be reasonably available to the
Company with respect to matters arising out of the Executive’s services to the Company
and its subsidiaries and affiliates. The Company shall pay the Executive a reasonable
fee for any such services and promptly reimburse the Executive for expenses reasonably
incurred in connection with such matters.

	4.	 	Section 280G. If (i) the aggregate of all amounts and benefits due to the Executive
under this Agreement and under any other arrangement with the Company would, if received by
the Executive in full and valued under Section 280G of the Code, constitute “parachute
payments” as defined in and under Section 280G of the Code (collectively, “280G
Benefits”), and if (ii) such aggregate would, if reduced by all federal, state and local
taxes applicable thereto, including the excise tax imposed pursuant to Section 4999 of the
Code, be less than the amount the Executive would receive, after all taxes, if the Executive
received aggregate 280G Benefits equal (as valued under Section 280G of the Code) to only
three (3) times the Executive’s “base amount” as defined in and under Section 280G of the
Code, less $1.00, then (iii) such 280G Benefits shall (to the extent that the reduction of
such 280G Benefits can achieve the intended result) be reduced or eliminated to the extent
necessary so that the aggregate 280G Benefits received by the Executive will not constitute
parachute payments. The determinations with respect to this Section 4 shall be made by an
independent auditor (the “Auditor”) paid by the Company. The Auditor shall be the
Company’s regular independent auditor unless the Executive reasonably objects to the use of
that firm, in which event the Auditor will be a nationally recognized United States public
accounting firm chosen by the parties.

5

 

	5.	 	Unauthorized Disclosure; Non-Competition; Non-Solicitation; Interference with Business
Relationships; Proprietary Rights

	 	5.1.	 	Unauthorized Disclosure. The Executive agrees and understands that in
the Executive’s position with the Company, the Executive will be exposed to and will
receive information relating to the confidential affairs of the Company and its
affiliates, including, without limitation, technical information, intellectual
property, business and marketing plans, strategies, customer information, software,
other information concerning the products, promotions, development, financing,
expansion plans, business policies and practices of the Company and its affiliates and
other forms of information considered by the Company and its affiliates to be
confidential or in the nature of trade secrets (including, without limitation, ideas,
research and development, know-how, formulas, technical data, designs, drawings,
specifications, customer and supplier lists, pricing and cost information and business
and marketing plans and proposals) (collectively, the “Confidential
Information”). The Executive agrees that at all times during the Executive’s
employment with the Company and thereafter, the Executive shall not disclose such
Confidential Information, either directly or indirectly, to any individual,
corporation, partnership, limited liability company, association, trust or other entity
or organization, including a government or political subdivision or an agency or
instrumentality thereof (each a “Person”) other than in connection with the
Executive’s employment with the Company without the prior written consent of the
Company and shall not use or attempt to use any such information in any manner other
than in connection with his employment with the Company, unless required by law to
disclose such information, in which case the Executive shall provide the Company with
written notice of such requirement as far in advance of such anticipated disclosure as
possible. This confidentiality covenant has no temporal, geographical or territorial
restriction. Upon termination of the Executive’s employment with the Company, the
Executive shall promptly supply to the Company all property, keys, notes, memoranda,
writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards,
surveys, maps, logs, machines, technical data and any other tangible product or
document which has been produced by, received by or otherwise submitted to the
Executive during the Executive’s employment with the Company, and any copies thereof in
his (or capable of being reduced to his) possession; provided, however, that the
Executive may retain his full rolodex or similar address and telephone directories.

	 	5.2.	 	Non-Competition. By and in consideration of the Company entering into
this Agreement and the payments made and the benefits provided hereunder, and in
further consideration of the Executive’s exposure to the Confidential Information of
the Company and its affiliates, the Executive agrees that the Executive shall not,
during the Executive’s employment with the Company and for eighteen (18) months
thereafter (the “Restriction Period”), directly or indirectly, own, manage,
operate, join, control, be employed by, or participate in the ownership, management,
operation or control of, or be connected in any manner with, including, without
limitation, holding any position as a stockholder, director, officer, consultant,
independent contractor, employee, partner, or investor in, any

6

 

	 	 	 	Restricted Enterprise (as defined below); provided, that in no event shall ownership
of one percent (1%) or less of the outstanding securities of any class of any issuer
whose securities are registered under the Securities Exchange Act of 1934, as
amended, standing alone, be prohibited by this Section 5.2, so long as the Executive
does not have, or exercise, any rights to manage or operate the business of such
issuer other than rights as a stockholder thereof. For purposes of this paragraph,
“Restricted Enterprise” shall mean any Person that is actively engaged in
any geographic area in any business which is either (i) in competition with the
business of the Company or any of its subsidiaries or affiliates or (ii) proposed to
be conducted by the Company or any of its subsidiaries or affiliates in their
respective business plans as in effect at that time. During the Restriction Period,
upon request of the Company, the Executive shall notify the Company of the
Executive’s then-current employment status.

	 	5.3.	 	Non-Solicitation of Employees. During the Restriction Period, the
Executive shall not directly or indirectly contact, induce or solicit (or assist any
Person to contact, induce or solicit) for employment any person who is, or within
twelve (12) months prior to the date of such solicitation was, an employee of the
Company or any of its subsidiaries or affiliates.
	 
	 	5.4.	 	Interference with Business Relationships. During the Restriction
Period (other than in connection with carrying out his responsibilities for the Company
and its affiliates), the Executive shall not directly or indirectly contact, induce or
solicit (or assist any Person to contact, induce or solicit) any customer or client of
the Company or its subsidiaries or affiliates to terminate its relationship or
otherwise cease doing business in whole or in part with the Company or its subsidiaries
or affiliates, or directly or indirectly interfere with (or assist any Person to
interfere with) any material relationship between the Company or its subsidiaries or
affiliates and any of its or their customers or clients so as to cause harm to the
Company or its affiliates.
	 
	 	5.5.	 	Extension of Restriction Period. The Restriction Period shall be
tolled for any period during which the Executive is in breach of any of Sections 5.2,
5.3 or 5.4 hereof.
	 
	 	5.6.	 	Proprietary Rights. The Executive shall disclose promptly to the
Company any and all inventions, discoveries, and improvements (whether or not
patentable or registrable under copyright or similar statutes), and all patentable or
copyrightable works, initiated, conceived, discovered, reduced to practice, or made by
him, either alone or in conjunction with others, during the Executive’s employment with
the Company and related to the business or activities of the Company and its affiliates
(the “Developments”). Except to the extent any rights in any Developments
constitute a work made for hire under the U.S. Copyright Act, 17 U.S.C. § 101 et seq.
that are owned ab initio by the Company and/or its applicable affiliate, the Executive
assigns all of his right, title and interest in all Developments (including all
intellectual property rights therein) to the Company or its nominee without further
compensation, including all rights or benefits

7

 

	 	 	 	therefor, including without limitation the right to sue and recover for past and
future infringement. The Executive acknowledges that any rights in any Developments
constituting a work made for hire under the U.S. Copyright Act, 17 U.S.C § 101 et
seq. are owned upon creation by the Company and/or its applicable affiliate as the
Executive’s employer. Whenever requested to do so by the Company, the Executive
shall execute any and all applications, assignments or other instruments which the
Company shall deem necessary to apply for and obtain trademarks, patents or
copyrights of the United States or any foreign country or otherwise protect the
interests of the Company and its affiliates therein. These obligations shall
continue beyond the end of the Executive’s employment with the Company with respect
to inventions, discoveries, improvements or copyrightable works initiated, conceived
or made by the Executive while employed by the Company, and shall be binding upon
the Executive’s employers, assigns, executors, administrators and other legal
representatives. In connection with his execution of this Agreement, the Executive
has informed the Company in writing of any interest in any inventions or
intellectual property rights that he holds as of the date hereof as set forth on
Exhibit B hereto (the “Existing Inventions”). Notwithstanding anything to
the contrary herein, the Developments shall not include any Existing Inventions. If
the Company is unable for any reason, after reasonable effort, to obtain the
Executive’s signature on any document needed in connection with the actions
described in this Section 5.6, the Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as the Executive’s
agent and attorney in fact to act for and on the Executive’s behalf to execute,
verify and file any such documents and to do all other lawfully permitted acts to
further the purposes of this Section 5.6 with the same legal force and effect as if
executed by the Executive.

	 	5.7.	 	Confidentiality of Agreement. Other than with respect to information
required to be disclosed by applicable law, the parties hereto agree not to disclose
the terms of this Agreement to any Person; provided the Executive may disclose this
Agreement and/or any of its terms to the Executive’s immediate family, financial
advisors and attorneys, so long as the Executive instructs every such Person to whom
the Executive makes such disclosure not to disclose the terms of this Agreement
further.
	 
	 	5.8.	 	Remedies. The Executive agrees that any breach of the terms of this
Section 5 would result in irreparable injury and damage to the Company for which the
Company would have no adequate remedy at law; the Executive therefore also agrees that
in the event of said breach or any threat of breach, the Company shall be entitled to
an immediate injunction and restraining order to prevent such breach and/or threatened
breach and/or continued breach by the Executive and/or any and all Persons acting for
and/or with the Executive, without having to prove damages, in addition to any other
remedies to which the Company may be entitled at law or in equity, including, without
limitation, the obligation of the Executive to return any Severance Payments made by
the Company to the Company. The terms of this Section 5.8 shall not prevent the
Company from pursuing any other available remedies for any breach or threatened breach
hereof, including, without

8

 

	 	 	 	limitation, the recovery of damages from the Executive. The Executive and the
Company further agree that the provisions of the covenants contained in this Section
5 are reasonable and necessary to protect the businesses of the Company and its
affiliates because of the Executive’s access to Confidential Information and his
material participation in the operation of such businesses.

	6.	 	Representation. The Executive and the Company each represents and warrants that (i)
he or it is not subject to any contract, arrangement, policy or understanding, or to any
statute, governmental rule or regulation, that in any way limits his or its ability to enter
into and fully perform his or its obligations under this Agreement and (ii) he or it is not
otherwise unable to enter into and fully perform his or its obligations under this Agreement.
	 
	7.	 	Non-Disparagement. From and after the Effective Date and following termination of
the Executive’s employment with the Company, the Executive agrees not to make any statement
(other than statements made in connection with carrying out his responsibilities for the
Company and its subsidiaries and affiliates) that is intended to become public, or that should
reasonably be expected to become public, and that criticizes, ridicules, disparages or is
otherwise derogatory of the Company or any of its subsidiaries, affiliates, employees,
officers, directors or stockholders. The Company and its affiliates shall cause their
officers and directors not to make any such statement regarding the Executive.
	 
	8.	 	Withholding. The Company may withhold from any amounts payable under this Agreement
such Federal, state local or foreign taxes as shall be required to be withheld pursuant to any
applicable law or regulation. The Executive shall be solely responsible for the payment of
all taxes relating to the payment or provision of any amounts or benefits hereunder.
	 
	9.	 	Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:

	 	9.1.	 	“Cause” shall mean the Executive’s (i) continuing failure, for more
than ten (10) days after the Company’s written notice to the Executive thereof, to
perform such duties as are reasonably requested by the Company; (ii) failure to observe
material policies generally applicable to officers or employees of the Company unless
such failure is capable of being cured and is cured within ten (10) days of the
Executive receiving written notice of such failure; (iii) failure to cooperate with any
internal investigation of the Company or any of its affiliates; (iv) commission of any
act of fraud, theft or financial dishonesty with respect to the Company or any of its
affiliates or indictment or conviction of any felony; or (v) material violation of the
provisions of this Agreement unless such violation is capable of being cured and is
cured within ten (10) days of the Executive receiving written notice of such violation.

9

 

	 	9.2.	 	“Change in Control” shall mean:

	 	a)	 	An acquisition (other than directly from the Company) of any
voting securities of the Company (the “Voting Securities”) by any
“Person” (for purposes of this Section 9.2, as the term “person” is
used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately
after which such Person has “Beneficial Ownership” (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent
(50%) of (i) the then-outstanding shares of common stock, par value $.01 per
share, of the Company and any other securities into which such shares are
changed or for which such shares are exchanged (“Shares”) or (ii) the
combined voting power of the Company’s then-outstanding Voting Securities;
provided, however, that in determining whether a Change in Control has occurred
pursuant to this paragraph (a), the acquisition of Shares or Voting Securities
in a Non-Control Acquisition (as hereinafter defined) shall not constitute a
Change in Control. A “Non-Control Acquisition” shall mean an
acquisition by (i) an employee benefit plan (or a trust forming a part thereof)
maintained by (A) the Company or (B) any corporation or other Person the
majority of the voting power, voting equity securities or equity interest of
which is owned, directly or indirectly, by the Company (for purposes of this
definition, a “Related Entity”), (ii) the Company or any Related
Entity, or (iii) any Person in connection with a Non-Control Transaction (as
hereinafter defined); or
	 
	 	b)	 	The consummation of:

	 	(i)	 	A merger, consolidation or reorganization (x)
with or into the Company or (y) in which securities of the Company are
issued (a “Merger”), unless such Merger is a “Non-Control
Transaction.” A “Non-Control Transaction” shall mean a Merger
in which:

	 	(i)	 	the shareholders of the Company
immediately before such Merger own directly or indirectly
immediately following such Merger at least a majority of the
combined voting power of the outstanding voting securities of
(1) the corporation resulting from such Merger (the
“Surviving Corporation”), if there is no Person that
Beneficially Owns, directly or indirectly, fifty percent (50%)
or more of the combined voting power of the then-outstanding
voting securities of the Surviving Corporation (a “Parent
Corporation”), or (2) if there is one or more than one
Parent Corporation, the ultimate Parent Corporation;
	 
	 	(ii)	 	the individuals who were members
of the Board immediately prior to the execution of the agreement
providing for such Merger constitute at least a majority of the
members of the board of directors of (1) the Surviving

10

 

	 	 	 	Corporation, if there is no Parent Corporation, or (2) if
there is one or more than one Parent Corporation, the
ultimate Parent Corporation; and

	 	(iii)	 	no Person other than (1) the
Company or another corporation that is a party to the agreement
of Merger, (2) any Related Entity, or (3) any employee benefit
plan (or any trust forming a part thereof) that, immediately
prior to the Merger, was maintained by the Company or any
Related Entity, or (4) any Person who, immediately prior to the
Merger had Beneficial Ownership of fifty percent (50%) or more
of the then outstanding Shares or Voting Securities, has
Beneficial Ownership, directly or indirectly, of fifty percent
(50%) or more of the combined voting power of the outstanding
voting securities or common stock of (x) the Surviving
Corporation, if there is no Parent Corporation, or (y) if there
is one or more than one Parent Corporation, the ultimate Parent
Corporation.

	 	c)	 	A complete liquidation or dissolution of the Company; or
	 
	 	d)	 	The sale or other disposition of all or substantially all of
the assets of the Company and its subsidiaries taken as a whole to any Person
(other than (x) a transfer to a Related Entity or (y) the distribution to the
Company’s shareholders of the stock of a Related Entity or any other assets).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely
because any Person (the “Subject Person”) acquired Beneficial Ownership of more than
the permitted amount of the then outstanding Shares or Voting Securities as a result of the
acquisition of Shares or Voting Securities by the Company which, by reducing the number of
Shares or Voting Securities then outstanding, increases the proportional number of shares
Beneficially Owned by the Subject Persons; provided that if a Change in Control would occur
(but for the operation of this sentence) as a result of the acquisition of Shares or Voting
Securities by the Company and, after such share acquisition by the Company, the Subject
Person becomes the Beneficial Owner of any additional Shares or Voting Securities and such
Beneficial Ownership increases the percentage of the then outstanding Shares or Voting
Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur.

	 	9.3.	 	“Disability” shall mean the Executive is entitled to receive long-term
disability benefits under the long-term disability plan of the Company or its
affiliates in which Executive participates, or, if there is no such plan, the
Executive’s inability, due to physical or mental ill health, to perform the essential
functions of the Executive’s job, with or without a reasonable accommodation, for 180
days during any 365 day period irrespective of whether such days are consecutive.

11

 

	 	9.4.	 	“Good Reason” shall mean (i) a material and adverse change in the
Executive’s duties or responsibilities; (ii) a reduction in the Executive’s Base Salary
or target Annual Bonus; (iii) a relocation of the Executive’s principal place of
employment by more than fifty (50) miles; or (iv) breach by the Company of any material
provision of this Agreement; provided, that the Executive must give notice of
termination for Good Reason within sixty (60) days of the occurrence of the first event
giving rise to Good Reason.

	10.	 	Miscellaneous.

	 	10.1.	 	Indemnification. The Company shall indemnify the Executive to the
fullest extent provided under the Company’s By-Laws. The Company shall also maintain
director and officer liability insurance in such amounts and subject to such
limitations as the Board shall, in good faith, deem appropriate for coverage of
directors and officers of the Company.
	 
	 	10.2.	 	Amendments and Waivers. This Agreement and any of the provisions
hereof may be amended, waived (either generally or in a particular instance and either
retroactively or prospectively), modified or supplemented, in whole or in part, only by
written agreement signed by the parties hereto; provided, that, the observance of any
provision of this Agreement may be waived in writing by the party that will lose the
benefit of such provision as a result of such waiver. The waiver by any party hereto
of a breach of any provision of this Agreement shall not operate or be construed as a
further or continuing waiver of such breach or as a waiver of any other or subsequent
breach, except as otherwise explicitly provided for in such waiver. Except as
otherwise expressly provided herein, no failure on the part of any party to exercise,
and no delay in exercising, any right, power or remedy hereunder, or otherwise
available in respect hereof at law or in equity, shall operate as a waiver thereof, nor
shall any single or partial exercise of such right, power or remedy by such party
preclude any other or further exercise thereof or the exercise of any other right,
power or remedy.
	 
	 	10.3.	 	Assignment; No Third-Party Beneficiaries. This Agreement, and the
Executive’s rights and obligations hereunder, may not be assigned by the Executive, and
any purported assignment by the Executive in violation hereof shall be null and void.
Nothing in this Agreement shall confer upon any Person not a party to this Agreement,
or the legal representatives of such Person, any rights or remedies of any nature or
kind whatsoever under or by reason of this Agreement.
	 
	 	10.4.	 	Notices. Unless otherwise provided herein, all notices, requests,
demands, claims and other communications provided for under the terms of this Agreement
shall be in writing. Any notice, request, demand, claim or other communication
hereunder shall be sent by (i) personal delivery (including receipted courier service)
or overnight delivery service, (ii) facsimile during normal business hours, with
confirmation of receipt, to the number indicated, (iii) reputable commercial overnight
delivery service courier or (iv) registered or certified mail, return receipt
requested, postage prepaid and addressed to the intended recipient as set

12

 

	 	 	 	forth below:

	 	 	 	 	 	 	 
	 

	 	If to the Company:
	 	McJunkin Red Man Holding Corporation
	 	 
	 

	 	 	 	835 Hillcrest Drive	 	 
	 

	 	 	 	Charleston, WV 25311	 	 
	 

	 	 	 	Attention: General Counsel	 	 
	 

	 	 	 	Facsimile: 304-348-1557	 	 
	 
	 	 	 	 	 	 
	 

	 	with a copy to:
	 	GS Capital Partners V Fund, L.P.	 	 
	 

	 	 	 	85 Broad Street	 	 
	 

	 	 	 	New York, NY 10004	 	 
	 

	 	 	 	Attention: Jack Daly	 	 
	 

	 	 	 	Facsimile: 212-357-5505	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	and	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Fried, Frank, Harris, Shriver & Jacobson LLP	 	 
	 

	 	 	 	One New York Plaza	 	 
	 

	 	 	 	New York, NY 10004	 	 
	 

	 	 	 	Attention: Robert C. Schwenkel, Esq.	 	 
	 

	 	 	 	Facsimile: 212-859-4000	 	 
	 
	 	 	 	 	 	 
	 

	 	If to the Executive:
	 	Andrew Lane, at his principal office
at the Company (during the Term), and
at all times to his principal residence as
reflected in the records of the Company.	 	 

All such notices, requests, consents and other communications shall be deemed to have been given
when received. Either party may change its facsimile number or its address to which notices,
requests, demands, claims and other communications hereunder are to be delivered by giving the
other parties hereto notice in the manner then set forth.

	 	10.5.	 	Governing Law. This Agreement shall be construed and enforced in
accordance with, and the rights and obligations of the parties hereto shall be governed
by, the laws of the State of New York, without giving effect to the conflicts of law
principles thereof.
	 
	 	10.6.	 	Severability. Whenever possible, each provision or portion of any
provision of this Agreement, including those contained in Section 4 hereof, will be
interpreted in such manner as to be effective and valid under applicable law but the
invalidity or unenforceability of any provision or portion of any provision of this
Agreement in any jurisdiction shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or enforceability of
this Agreement, including that provision or portion of any provision, in any other
jurisdiction. In addition, should a court or arbitrator determine that any provision
or portion of any provision of this Agreement, including those contained in

13

 

	 	 	 	Section 5 hereof, is not reasonable or valid, either in period of time, geographical
area, or otherwise, the parties hereto agree that such provision should be
interpreted and enforced to the maximum extent which such court or arbitrator deems
reasonable or valid.

	 	10.7.	 	Entire Agreement. From and after the Effective Date this Agreement
shall constitute the entire agreement between the parties hereto, and supersede all
prior representations, agreements and understandings (including any prior course of
dealings), both written and oral, between the parties hereto with respect to the
subject matter hereof.
	 
	 	10.8.	 	Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.
	 
	 	10.9.	 	Binding Effect. This Agreement shall inure to the benefit of, and be
binding on, the successors of each of the parties, including, without limitation, the
Executive’s heirs and the personal representatives of the Executive’s estate and any
successor to all or substantially all of the business and/or assets of the Company.
	 
	 	10.10.	 	General Interpretive Principles. The name assigned this Agreement and
headings of the sections, paragraphs, subparagraphs, clauses and subclauses of this
Agreement are for convenience of reference only and shall not in any way affect the
meaning or interpretation of any of the provisions hereof. Words of inclusion shall
not be construed as terms of limitation herein, so that references to “include,”
“includes” and “including” shall not be limiting and shall be regarded as references to
non-exclusive and non-characterizing illustrations.
	 
	 	10.11.	 	Mitigation. Notwithstanding any other provision of this Agreement, (i) the
Executive will have no obligation to mitigate damages for any breach or termination of
this Agreement by the Company, whether by seeking employment or otherwise and (ii) the
amount of any payment or benefit due the Executive after the date of such breach or
termination will not be reduced or offset by any payment or benefit that the Executive
may receive from any other source.
	 
	 	10.12.	 	Section 409A Compliance. This Agreement is intended to comply with Section
409A (to the extent applicable) and, to the extent it would not adversely impact the
Company, the Company agrees to interpret, apply and administer this Agreement in the
least restrictive manner necessary to comply with such requirements and without
resulting in any diminution in the value of payments or benefits to the Executive.

14

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	MCJUNKIN RED MAN HOLDING CORPORATION

 	 
	 	By:  	/s/
Stephen W. Lake	 
	 	 	Name: Stephen W. Lake	 	 
	 	 	Title: Senior Vice-President, General Counsel &

          Corporate Secretary	 
	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ Andrew Lane	 
	 	Andrew Lane 	 	 

 

 

Exhibit A

Release

	1.	 	In consideration of the payments and benefits to be made under the Employment Agreement,
dated as of September 10, 2008 (the “Employment Agreement”), to which Andrew Lane
(the “Executive”) and McJunkin Red Man Holding Corporation (the “Company”)
(each of the Executive and the Company, a “Party” and collectively, the
“Parties”) are parties, the sufficiency of which the Executive acknowledges, the
Executive, with the intention of binding himself and his heirs, executors, administrators and
assigns, does hereby release, remise, acquit and forever discharge the Company and each of its
subsidiaries and affiliates (the “Company Affiliated Group”), their present and former
officers, directors, executives, shareholders, agents, attorneys, employees and employee
benefit plans (and the fiduciaries thereof), and the successors, predecessors and assigns of
each of the foregoing (collectively, the “Company Released Parties”), of and from any
and all claims, actions, causes of action, complaints, charges, demands, rights, damages,
debts, sums of money, accounts, financial obligations, suits, expenses, attorneys’ fees and
liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute,
contingent, unliquidated or otherwise and whether now known or unknown, suspected or
unsuspected, which the Executive, individually or as a member of a class, now has, owns or
holds, or has at any time heretofore had, owned or held, arising on or prior to the date
hereof, against any Company Released Party that arises out of, or relates to, the Employment
Agreement, the Executive’s employment with the Company or any of its subsidiaries and
affiliates, or any termination of such employment, including claims (i) for severance or
vacation benefits, unpaid wages, salary or incentive payments, (ii) for breach of contract,
wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of
emotional harm or other tort, (iii) for any violation of applicable state and local labor and
employment laws (including, without limitation, all laws concerning unlawful and unfair labor
and employment practices) and (iv) for employment discrimination under any applicable federal,
state or local statute, provision, order or regulation, and including, without limitation, any
claim under Title VII of the Civil Rights Act of 1964 (“Title VII”), the Civil Rights
Act of 1988, the Fair Labor Standards Act, the Americans with Disabilities Act
(“ADA”), the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), the Age Discrimination in Employment Act (“ADEA”), and any similar
or analogous state statute, excepting only:

	 	1.1.	 	rights of the Executive arising under, or preserved by, this Release or
Sections 2.3 and 3 of the Employment Agreement;
	 
	 	1.2.	 	the right of the Executive to receive COBRA continuation coverage in accordance
with applicable law;
	 
	 	1.3.	 	claims for benefits under any health, disability, retirement, life insurance or
other,

 

 

	 	 	 	similar employee benefit plan (within the meaning of Section 3(3) of ERISA) of the
Company Affiliated Group; and

	 	1.4.	 	rights to indemnification the Executive has or may have under the by-laws or
certificate of incorporation of any member of the Company Affiliated Group or as an
insured under any director’s and officer’s liability insurance policy now or previously
in force.

	2.	 	The Employee acknowledges and agrees that the release of claims set forth in this Release is
not to be construed in any way as an admission of any liability whatsoever by any Company
Released Party, any such liability being expressly denied.

	3.	 	The release of claims set forth in this Release applies to any relief no matter how called,
including, without limitation, wages, back pay, front pay, compensatory damages, liquidated
damages, punitive damages, damages for pain or suffering, costs, and attorneys’ fees and
expenses.

	4.	 	The Executive specifically acknowledges that his acceptance of the terms of the release of
claims set forth in this Release is, among other things, a specific waiver of his rights,
claims and causes of action under Title VII, ADEA, ADA and any state or local law or
regulation in respect of discrimination of any kind; provided, however, that
nothing herein shall be deemed, nor does anything contained herein purport, to be a waiver of
any right or claim or cause of action which by law the Executive is not permitted to waive.

	5.	 	As to rights, claims and causes of action arising under the ADEA, the Executive acknowledges
that he has been given but not utilized a period of twenty-one (21) days to consider whether
to execute this Release. If the Executive accepts the terms hereof and executes this Release,
he may thereafter, for a period of seven (7) days following (and not including) the date of
execution, revoke this Release as it relates to the release of claims arising under the ADEA.
If no such revocation occurs, this Release shall become irrevocable in its entirety, and
binding and enforceable against the Executive, on the day next following the day on which the
foregoing seven (7) day period has elapsed. If such a revocation occurs, the Executive shall
irrevocably forfeit any right to payment of the Severance Payments (as defined in the
Employment Agreement), but the remainder of the Employment Agreement shall continue in full
force.

	6.	 	Other than as to rights, claims and causes of action arising under the ADEA, the release of
claims set forth in this Release shall be immediately effective upon execution by the
Executive.

	7.	 	The Executive acknowledges and agrees that he has not, with respect to any transaction or
state of facts existing prior to the date hereof, filed any complaints, charges or lawsuits
against any Company Released Party with any governmental agency, court or tribunal.

	8.	 	The Executive acknowledges that he has been advised to seek, and has had the

 

 

	     	 	opportunity to seek, the advice and assistance of an attorney with regard to the release of
claims set forth in this Release, and has been given a sufficient period within which to
consider the release of claims set forth in this Release.

	9.  	 	The Executive acknowledges that the release of claims set forth in this Release relates only
to claims which exist as of the date of this Release.

	10.	 	The Executive acknowledges that the Severance Payments he is receiving in connection with the
release of claims set forth in this Release and his obligations under this Release are in
addition to anything of value to which the Executive is entitled from the Company and any of
its affiliates.

	11.	 	Each provision hereof is severable from this Release, and if one or more provisions hereof
are declared invalid, the remaining provisions shall nevertheless remain in full force and
effect. If any provision of this Release is so broad, in scope, or duration or otherwise, as
to be unenforceable, such provision shall be interpreted to be only so broad as is
enforceable.

	12.	 	This Release constitutes the complete agreement of the Parties in respect of the subject
matter hereof and shall supersede all prior agreements between the Parties in respect of the
subject matter hereof except to the extent set forth herein.

	13.	 	The failure to enforce at any time any of the provisions of this Release or to require at any
time performance by another party of any of the provisions hereof shall in no way be construed
to be a waiver of such provisions or to affect the validity of this Release, or any part
hereof, or the right of any party thereafter to enforce each and every such provision in
accordance with the terms of this Release.

	14.	 	This Release may be executed in several counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute one and the same instrument. Signatures
delivered by facsimile shall be deemed effective for all purposes.

	15.	 	This Release shall be binding upon any and all successors and assigns of the Executive and
the Company.

	16.	 	Except for issues or matters as to which federal law is applicable, this Release shall be
governed by and construed and enforced in accordance with the laws of the State of New York
without giving effect to the conflicts of law principles thereof.

[signature page follows]

 

 

          IN WITNESS WHEREOF, this Release has been signed by or on behalf of each of the Parties, all
as of                                         .

	 	 	 	 	 
	 	MCJUNKIN RED MAN HOLDING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	  	 	 
	 	Andrew Lane 	 	 

 

 

Exhibit B

Existing Inventions

[none]

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