Document:

Exhibit 10.9

 

IPSCO Inc.

2005 Form 10-K

 

PERFORMANCE UNIT AWARD AGREEMENT

 

THIS
AGREEMENT made the 28th day of April 2005.

 

BETWEEN:

 

IPSCO
INC., a corporation incorporated under the laws of Canada,

 

(hereinafter
called the “Company”),

 

OF THE FIRST PART,

 

-and-

 

Burton
M. Joyce, of the City of Penhook, in the State of Virginia,

 

 (hereinafter called the “Participant”),

 

OF
THE SECOND PART.

 

WHEREAS the
Company has established an Incentive Share Option Plan (which, as amended from
time to time by the Board of Directors of the Company and approved by
Shareholders, is hereinafter referred to as the “Plan”) whereby certain
designated officers, employees and directors of the Company and its
subsidiaries may from time to time be granted options, restricted shares and
performance units;

 

AND WHEREAS the
Participant, as a director of the Company, has been designated to receive a
grant of Performance Units (as defined herein), subject to and in accordance
with the terms of this Agreement and of the Plan;

 

NOW THEREFORE THIS AGREEMENT
WITNESSETH that in consideration of the mutual
covenants herein contained the parties do hereby agree as follows:

 

1.                                       Grant

 

Pursuant to Section 9 of the Plan, the Company hereby grants and
awards to the Participant One Thousand (1,000) performance units (the “Performance
Units”).  Each Performance Unit shall be
subject to the terms of the Plan and of this Agreement, including the terms
relating to the Performance Period and the Performance Objective (as those
terms are herein defined).

 

 

2.                                       Performance
Period/Performance Objective

 

The performance period applicable to the Performance Units shall be the
period beginning on April 28, 2005, (the “Commencement Date”) and ending
on April 27, 2008, (the “Performance Period”).  The performance objective applicable to the
Performance Units (the “Performance Objective”) shall be the achievement by the
Company during the Performance Period of positive cumulative net income of at
least USD$250,000,000.00 attributable to the common shares of the Company (the “Common
Shares”) as reported in the Company’s financial statements.

 

3.                                       Vesting of
Performance Units

 

The Performance Units will vest upon the earlier of

 

(a)                                  the date of a
Change of Control, and

 

(b)                                 April 27,
2008, provided that the Performance Objective is met,

 

and, provided further that the Participant remains a director (or is
deemed by Section 4 to remain a director) by the Company or a Subsidiary
(as defined in the Plan) on that date and has been (or is deemed by Section 4
to have been) continuously so appointed since the date hereof.  Performance Units not vested on or before the
last day of the Performance Period pursuant to the preceding sentence shall
lapse and be terminated and cancelled.

 

For the purposes of this Section 3, the date of a Change of
Control means the date on which any one of the following occurs:  (i) any person or group of persons
acting in concert acquires beneficial ownership (within the meaning of The
Securities Act (Saskatchewan)) of 20% or more of the outstanding Common Shares
of the Company, or securities convertible into 20% or more of the outstanding
Common Shares on a post-conversion basis; (ii) during a period of not more
than 24 months, a majority of the Board of Directors ceases to consist of the
existing membership or successors nominated by the existing membership or their
similar successors; (iii) all or substantially all of the individuals and
entities who were the beneficial owners of the Company’s outstanding securities
entitled to vote do not own more than 50% of such securities in substantially
the same proportions following a shareholder approved reorganization, merger,
or consolidation; or (iv) shareholder approval of either (A) a
complete liquidation or dissolution of the Company or (B) a sale or other
disposition of all or substantially all of the assets of the Company, or a
transaction having a similar effect.

 

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4.                                       Cessation of
Directorship

 

(a)                                  If
the Participant ceases to be a director (and, if the Participant is a director
of any Subsidiary, the Participant also ceases to be a director of the
Subsidiary) as a result of (i) the death of the Participant or (ii) such
other circumstances as may be approved by the Board of Directors, the
Participant shall be deemed for the purposes of Section 3 hereof (Vesting
of Performance Units), to be a director of the Company or Subsidiary on the
last day of the Performance Period (or, if earlier, the date of a Change of
Control) and to have been continuously so appointed since the Commencement
Date.

 

(b)                                 If
the Participant ceases to be a director of the Company (and, if the Participant
is a director of any Subsidiary, the Participant also ceases to be a director
of the Subsidiary) in any circumstance other than as described in paragraph (a) of
this Section 4 (including, but not limited to, (i) termination of the
Participant’s directorship by the Board of Directors, with or without cause, (ii) resignation
by the Participant or (iii) failure to be re-elected at an annual general
meeting of the shareholders of the Company) then, if the cessation is not due
to cause, the Performance Units shall vest at the end of the Performance Period
if the Performance Objective are met for such period. Payment in that event
will be calculated by a ratio whereby the numerator shall be the number of
years of such Performance Period the Director served before the cessation of
services and the denominator shall be the number of years of the Performance
Period multiplied by the Performance Award. 
Notwithstanding the provisions of this paragraph, the Board may
determine to fully vest such Participant in the full amount of the Performance
Award subject to the attainment of the Performance Objective.  For greater certainty, this Section 4
shall not apply to any director of the Company or the Subsidiary who is an
officer or employee after the time such person ceases to be a director of the
Company or any Subsidiary.

 

5.                                       Payment of
Performance Units and Dividend Equivalents

 

Upon vesting of the Performance Units in accordance with Sections 3 and
4 hereof, the Participant shall become entitled to payment in respect of the
Performance Units.  Payment shall be made
by delivery by the Company to the Participant of one newly issued Common Share
for each Performance Unit held by the Participant.  The Participant may, in [his/her] sole
discretion, require that payment be made by the Company in a combination of
cash (to a maximum cash payment amount of 40% of the vested Performance Units)
and Common Shares (to a minimum amount of 60% of the vested Performance Units)
in lieu of payment in Common Shares only.  For purposes of calculating the amount of any
such cash payment, Common Shares shall be valued on the applicable date of
vesting under Section 3 hereof. 
Such valuations shall be closing price of the Common Shares of the
Company on the Toronto Stock Exchange on the day of vesting.

 

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Payment shall be made as soon as practicable after the date of vesting.
 Where payment is made in whole or in
part in Common Shares, the Company shall cause the transfer agent of the Common
Shares to promptly deliver to the Participant a share certificate in the name
of the Participant representing such Common Shares.

 

At the time payment is made by the Company to the Participant under
this Section 5, the Company shall also pay to the Participant a dividend
equivalent in an amount equal to the number of the Participant’s Performance
Units multiplied by the total dividends per Common Share declared by the
Company between the Commencement Date and the applicable date of vesting.  Such payment shall be made by the Company in
cash as soon as practicable after the date of vesting.  For greater certainty, such dividend
equivalent cash payment shall not form part of the calculation of, or be
subject to, the 40% maximum cash payment in lieu of Common Shares noted above.

 

Where the Participant has died, all references in this Section 5
to “Participant” shall be deemed to include the Participant’s legal
representative.

 

6.                                       Non-Assignability
of Performance Units

 

The Performance Units granted hereunder shall not be transferable or
assignable (whether absolutely or by way of mortgage, pledge or other charge)
by the Participant other than by will or other testamentary instrument, the
laws of succession or other laws of general application and during the lifetime
of the Participant only the Participant shall be entitled to payment
thereunder.

 

7.                                       Rights of
Participant

 

The Participant shall have no rights whatsoever as a shareholder in
respect of any Common Shares which are the subject of the Performance Units
held by the Participant (including, without limitation, any right to receive
dividends or other distributions from the Company, voting rights, warrants or
rights under any rights offering) until such time as such shares have been
recorded on the Company’s official shareholder records as having been issued to
the Participant.

 

Nothing contained in this Agreement shall give the Participant or any
other person, any interest or title in or to any Common Shares which are the
subject of the Performance Units or any rights as a shareholder of the Company
or any other legal or equitable right against the Company whatsoever other than
as set forth in this Agreement, nor shall it confer upon the Participant any
right to continue as a director of the Company or of its Subsidiaries.

 

8.                                       Withholding Taxes

 

Prior to the payment by the Company in respect of the Performance Units
pursuant to Section 5, the Participant shall pay to the Company such
amount as may be requested by the Company for the purpose of satisfying any
liability for federal, provincial, state or 

 

4

 

other taxes with respect to such payment.  Where the Participant is subject to Canadian
income tax, the amount shall be paid by the Participant to the Company in cash
or by cheque. Where the Participant is not subject to Canadian tax, the amount
requested by the Company shall be paid by the Participant to the Company in
cash or by cheque, provided that the Participant may pay all or a portion of
the amount by (a) the delivery of Common Shares or (b) having the
Company withhold a portion of the Common Shares otherwise to be delivered upon
vesting of the Performance Units.  Where
the Participant, in [his/her] sole discretion, has required that payment in
respect of the Performance Units be made by the Company in cash in lieu of
Common Shares or in a combination of cash and Common Shares, the Company shall
have the right to deduct from any cash payment any applicable taxes.

 

9.                                       Alterations in
Shares

 

In the event of a share dividend, share split, issuance of shares or
instruments convertible into shares (other than pursuant to the Plan) for less
than market value, share consolidation, share reclassification, exchange of
shares, recapitalization, amalgamation, merger, consolidation, corporate
arrangement, reorganization, liquidation or the like of or by the Company, the
Board of Directors may make such adjustment, if any, of the number of
Performance Units, as it shall deem appropriate to give proper effect to such
event, including to prevent, to the extent possible, substantial dilution or
enlargement of rights granted to the Participant.  If because of a proposed merger, amalgamation
or other corporate arrangement or reorganization, the exchange or replacement
of shares in the Company for those in another company is imminent, the Board of
Directors may, in a fair and equitable manner, determine the manner in which
the Performance Units shall be treated including, for example, requiring the
acceleration of the time for payment by the Company in respect of the
Performance Units and of the time for the fulfilment of the Performance
Objectives.  All determinations of the
Board of Directors under this Section 9 shall be conclusive and binding.

 

10.                                 Notice

 

All notices, demands, payments or other communications which may or are
required to be given under this Agreement shall be given in writing by personal
delivery or ordinary prepaid mail:

 

(a)                                  to
the Company:

IPSCO Inc.

650 Warrenville Road, Suite 500

Lisle, IL 60532

Attention:  Vice President,
General Counsel

and Corporate Secretary

 

(b)                                 to the
Participant:

Penhook, Virginia

 

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or such other address as either party may give in writing from time to
time.  Such notices if given by mail
shall be deemed to have been received by the party to whom they are addressed
as described herein seventy-two (72) hours after they have been put in the
post, postage prepaid, provided that if postal services are disrupted by labour
disputes, such mailed notices shall be deemed to have been given and received
on the date of actual receipt by the addressee.

 

11.                                 Plan to Apply

 

The parties agree that the provisions of the Plan shall be
complementary to and read in conjunction with the terms of this Agreement and
in the event of any contradiction or inconsistency between any provisions of
the Plan and those of this Agreement, the Plan shall prevail.  This Agreement shall also be subject to the
applicable requirements of the Toronto Stock Exchange, the Canadian Securities
Administrators, the United States Securities and Exchange Commission and the
New York Stock Exchange from time to time.

 

12.                                 Dispute

 

Any dispute or disagreement which shall arise under, or as a result of,
or in any way related to, the interpretation, construction or application of
this Agreement shall be determined by the Board of Directors and any such
determination shall be final, binding and conclusive for all purposes.

 

13.                                 Further
Assurances

 

The Participant shall forthwith and from time to time do all such acts
and things and execute and deliver all such instruments, writings and
assurances as may be necessary to carry out this Agreement in accordance with
its true intent.

 

14.                                 Enurement

 

This Agreement shall be binding upon and shall enure to the benefit of
the parties hereto and their successors, executors and administrators.

 

15.                                 Governing
Law

 

This Agreement shall be governed by the laws of the State of Illinois.

 

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IN WITNESS WHEREOF the
parties hereto have executed this Agreement as of the day and year first above
written.

 

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Leslie T. Lederer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ P.J. Kampling

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Burton M. Joyce

  	
   

  
	
   

  	
  BURTON M. JOYCE

  	
   

  

 

7Exhibit 10.9a

 

IPSCO Inc.

2005 Form 10-K

 

2005 Performance Unit Award Agreements with
Directors

 

In accordance with the Instructions of Item 601 of Regulation S-K, the
registrant has omitted filing the 2005 Performance Unit Award Agreements by and
between IPSCO Inc. and the following Directors as exhibits to this Form 10-K
because they are identical to the form of Performance Unit Agreement filed as
Exhibit 10.9 with this Form 10-K.

 

1. Michael Grandin, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

2. Juanita Hinshaw

3. Jack Michaels

4. Bernard Michel, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

5. Allan Olson, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

6. Arthur Price, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

7. Richard Sim

8. Roger Tetrault

9. Gordon Thiessen, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

10. D. Muarry Wallace, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

11. John B. Zaozirny, Section 15 - Governing Law - provides that the
Agreement shall be governed by the laws of the Province of Saskatchewan.

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