Document:

EX-10.17.1

Exhibit 10.17.1

MCJUNKIN RED MAN HOLDING CORPORATION

NONQUALIFIED STOCK OPTION AGREEMENT

     THIS AGREEMENT (the “Agreement”), is made effective as of [                    , 200___] (the “Date of
Grant”), between McJunkin Red Man Holding Corporation, a Delaware corporation (the “Company”), PVF
Holdings LLC, a Delaware limited liability company (“PVF Holdings LLC”) (solely for purposes of
Section 15 hereof), and [                    ] (the “Participant”).

R E C I T A L S:

     WHEREAS, the Company has adopted the McJ Holding Corporation 2007 Stock Option Plan (the
“Plan”), which Plan is incorporated herein by reference and made a part of this Agreement.
Capitalized terms not otherwise defined herein shall have the meanings given thereto in the Plan;
and

     WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its shareholders to grant an Option to the Participant pursuant to the Plan and the terms set
forth herein.

     NOW THEREFORE, in consideration of the Participant’s services and of the mutual covenants
hereinafter set forth, the parties agree as follows:

     1. Grant of the Option. The Company hereby grants to the Participant the right and
option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any
part of an aggregate of [                    ] Shares, subject to adjustment as set forth in the Plan. The
Option Price shall be $[                    ], which the Company and the Participant agree is not less than
the Fair Market Value of the Shares as of the date hereof.

     2. Vesting; Period of Exercise.

          (a) Subject to the earlier termination or cancellation of the Option as set forth herein, the
Option shall vest and become exercisable as follows:

               (i) Prior to the third (3rd) anniversary of the Date of Grant, no portion of the
Option shall vest or be exercisable;

               (ii) On and after the third (3rd) anniversary of the Date of Grant, the Option
shall vest and be exercisable with respect to an aggregate of one-third (1/3) of the Shares
originally subject to the Option, provided that the Participant’s Employment with the Company has
not terminated as of such anniversary;

               (iii) On and after the fourth (4th) anniversary of the Date of Grant, the Option
shall vest and be exercisable with respect to an aggregate of two-thirds (2/3) of the Shares
originally subject to the Option, provided that the Participant’s Employment with the Company has
not terminated as of such anniversary; and

 

 

               (iv) On and after the fifth (5th) anniversary of the Date of Grant, the Option
shall vest and be exercisable with respect to an aggregate of one hundred percent of the Shares
originally subject to the Option provided, that the Participant’s Employment with the Company has
not terminated as of such anniversary.

               (v) Notwithstanding the foregoing, in the event of (x) the Participant’s death or Disability
or (y) the occurrence of a Transaction, the Option shall, to the extent not then vested,
automatically become fully vested and exercisable.

The portion of the Option which has become vested and exercisable as described herein is
hereinafter referred to as the “Vested Portion.”

          (b) If the Participant’s Employment is terminated by the Company for Cause, the Option shall,
whether or not vested, be automatically canceled without payment of consideration therefor.

          (c) If the Participant’s Employment with the Company terminates for any reason other than (x)
Cause or (y) the Participant’s death or Disability, the Option shall, to the extent not previously
vested, be automatically canceled by the Company without payment of consideration therefor, and the
Vested Portion of the Option shall remain exercisable for the period set forth in Section 2(d).

          (d) Subject to the provisions of the Plan and this Agreement, the Participant may exercise all
or any part of the Vested Portion of the Option at any time prior to the earliest to occur of (i)
the ten-year anniversary of the Date of Grant and (ii) 90 days following the date of the
Participant’s termination of Employment (other than a termination of Employment due to the
Participant’s death or Disability).

          (e) Notwithstanding the foregoing, upon termination of Employment due to the Participant’s
death or Disability, the Participant may exercise all or any part of the Vested Portion of the
Option at any time prior to the earliest to occur of (i) the ten-year anniversary of the Date of
Grant and (ii) twenty-four months following such termination of Employment.

          3. Method of Exercise.

          (a) The Vested Portion of the Option may be exercised by delivering to the Company at its
principal office written notice of intent so to exercise. Such notice shall specify the number of
Shares for which the Option is being exercised (the “Purchased Shares”) and shall be accompanied by
payment in full of the Option Price in cash or by check or wire transfer; provided,
however, that with the written consent of the Committee (which consent may be withheld for
any or no reason), payment of such aggregate exercise price may instead be made, in whole or in
part, by (A) the delivery to the Company of a certificate or certificates representing Shares
having a Fair Market Value on the date of exercise equal to the aggregate exercise price, duly
endorsed or accompanied by a duly executed stock power, which delivery effectively transfers to the
Company good and valid title to such shares, free and clear of any pledge, commitment, lien, claim
or other encumbrance (such shares to be valued on the basis of the aggregate Fair Market Value
thereof on the date of such exercise), or (B) by a reduction in

2

 

the number of Purchased Shares to be issued upon such exercise having a Fair Market Value on
the date of exercise equal to the aggregate exercise price in respect of the Purchased Shares,
provided that the Company is not then prohibited from purchasing or acquiring such Shares. The
Participant shall not have any rights to dividends or other rights of a stockholder with respect to
Shares subject to the Option until the Participant has given written notice of exercise of the
Option, paid in full for such Shares and, if applicable, has satisfied any other conditions imposed
by the Committee or pursuant to the Plan or this Agreement.

          (b) Notwithstanding any other provision of the Plan or this Agreement to the contrary, the
Option may not be exercised prior to the completion of any registration or qualification of the
Option or the Shares under applicable state and federal securities or other laws, or under any
ruling or regulation of any governmental body or national securities exchange (collectively, the
“Legal Requirements”) that the Committee shall in its sole discretion determine to be necessary or
advisable, unless an exemption to such registration or qualification is available and satisfied.
The Committee may establish additional procedures as it deems necessary or desirable in connection
with the exercise of the Option or the issuance of any Shares upon such exercise to comply with any
Legal Requirements. Such procedures may include but are not limited to the establishment of
limited periods during which the Option may be exercised or that following receipt of the notice of
exercise and prior to the completion of the exercise, the Participant will be required to affirm
the exercise of the Option following receipt of any disclosure deemed necessary or desirable by the
Committee.

          (c) Upon the Company’s determination that the Option has been validly exercised as to any of
the Shares, the Company shall issue certificates in the Participant’s name for such Shares. Such
certificates will be held by the Company on behalf of the Participant until such time as the Shares
represented by such certificates are transferred as permitted by the Stockholders Agreement.

          (d) In the event of the Participant’s death or Disability, the Option shall remain exercisable
by the Participant’s executor or administrator, or the person or persons to whom the Participant’s
rights under this Agreement shall pass by will or by the laws of descent and distribution as the
case may be, for the period set forth in Section 2(e) (and the term “Participant” shall be deemed
to include such heir or legatee). Any such heir or legatee of the Participant shall take rights
herein granted subject to the terms and conditions hereof.

          (e) In consideration of the grant of this Option, the Participant agrees that, as a condition
to the exercise of any option to purchase Shares (whether this Option or any other option), the
Participant shall, with respect to such Shares, have become a party to the Stockholders Agreement.

     4. No Right to Continued Employment. The granting of the Option evidenced hereby and
this Agreement shall impose no obligation on the Company or any Affiliate to continue the
Employment of the Participant and shall not lessen or affect the Company’s or its Affiliates’ right
to terminate the Employment of such Participant.

     5. Legend on Certificates. The certificates representing the Shares purchased by
exercise of the Option shall be subject to such stop transfer orders and other restrictions as the

3

 

Committee may deem advisable under the Plan or the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed,
and any applicable federal or state laws, and the Committee may cause a legend or legends to be put
on any such certificates to make appropriate reference to such restrictions.

     6. Transferability. Unless otherwise determined by the Committee, the Option may not
be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the
Participant otherwise than by will or by the laws of descent and distribution, and any such
purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void
and unenforceable against the Company or any Affiliate; provided, that the designation of a
beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or
encumbrance. No such permitted transfer of the Option to heirs or legatees of the Participant
shall be effective to bind the Company unless the Committee shall have been furnished with written
notice thereof and a copy of such evidence as the Committee may deem necessary to establish the
validity of the transfer and the acceptance by the transferee or transferees of the terms and
conditions hereof. During the Participant’s lifetime, the Option is exercisable only by the
Participant.

     7. Withholding. The Participant shall be required to pay to the Company or any
Affiliate, and the Company shall have the right and is hereby authorized to withhold, any
applicable withholding taxes in respect of the Option, its exercise or any payment or transfer
under, or with respect to, the Option and to take such other action as may be necessary in the
opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. The
Participant shall be solely responsible for the payment of all taxes relating to the payment or
provision of any amounts or benefits hereunder.

     8. Securities Laws. Upon the acquisition of any Shares pursuant to the exercise of
the Option, the Participant will make or enter into such written representations, warranties and
agreements as the Committee may reasonably request in order to comply with applicable securities
laws or with this Agreement.

     9. Successors in Interest. This Agreement shall inure to the benefit of and be
binding upon any successor to the Company. This Agreement shall inure to the benefit of the
Participant’s legal representatives. All obligations imposed upon the Participant and all rights
granted to the Company under this Agreement shall be binding upon the Participant’s heirs,
executors, administrators and successors.

     10. Resolution of Disputes. Any dispute or disagreement which may arise under, or as
a result of, or in any way relate to, the interpretation, construction or application of this
Agreement shall be determined by the Board. Any determination made hereunder shall be final,
binding and conclusive on the Participant, the Participant’s heirs, executors, administrators and
successors, and the Company and its subsidiaries for all purposes.

     11. Notices. Any notice necessary under this Agreement shall be addressed to the
Company in care of its Secretary at the principal executive office of the Company and to the
Participant at the address appearing in the personnel records of the Company for the Participant

4

 

or to either party hereto at such other address as either party may hereafter designate in
writing to the other. Any such notice shall be deemed effective upon receipt thereof by the
addressee.

          12. Choice of Law. This Agreement shall be governed by and construed in accordance
with the laws of the state of New York, without regard to principles of conflicts of laws.

          13. Option Subject to Plan. By entering into this Agreement, the Participant agrees
and acknowledges that the Participant has received and read a copy of the Plan. The Option is
subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time,
are hereby incorporated herein by reference. In the event of a conflict between any term or
provision contained herein and a term or provision of the Plan, the applicable terms and provisions
of the Plan, as applicable, will govern and prevail.

          14. Accredited Investor Status Representation of Participant. Please check the box
next to any of the following statements that apply:

	 	o	 	Your individual net worth, or joint net worth with your spouse, as of the date hereof,
exceeds $1,000,000;
	 
	 	o	 	You had individual income in excess of $200,000 in each of the two most recent years, or
joint income with your spouse in excess of $300,000 in each of those years, and have a
reasonable expectation of reaching the same income level in the current year; or
	 
	 	o	 	None of the statements above apply.

          15. Adoption of Stockholders Agreement. The parties hereto agree that, upon the grant
of the Option hereunder, the Participant shall be made a party to the Management Stockholders
Agreement among PVF LLC (formerly known as McJ Holding LLC), the Company, and the other parties
thereto (the “Stockholders Agreement”) as an “Executive” (as defined in the Stockholders Agreement)
with the rights and obligations of holders of “Stock” (as defined in the Stockholders Agreement)
and the Participant hereby agrees to become a party to the Stockholders Agreement and to be bound
by, and subject to, all of the representations, covenants, terms and conditions of the Stockholders
Agreement that are applicable to an Executive with such rights and obligations. Execution and
delivery of this Agreement by the Participant shall also constitute execution and delivery by the
Participant of the Stockholders Agreement, without further action of any party. A copy of the
Stockholders Agreement is attached hereto as Exhibit A. In addition to the representations
and warranties in the Stockholders Agreement that Participant makes as an Executive, the
Participant represents and warrants to the Company that (a) the Participant has carefully reviewed
the Stockholders Agreement and has also reviewed all other documents the Participant deems
necessary or desirable in order for the Participant to become a party to the Stockholders Agreement
(by executing this Agreement); (b) the Participant has been granted the opportunity to ask
questions of, and receive answers from, representatives of the Company concerning the Stockholders
Agreement and the terms and conditions thereof that the Participant deems necessary; and (c) this
Agreement (and by executing this Agreement, the Stockholders Agreement) has been duly executed and
delivered by Participant and constitutes a valid and binding agreement of

5

 

Participant enforceable against the Participant in accordance with its terms and the terms of
the Stockholders Agreement.

     16. Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

6

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, effective as of the Date
of Grant.

	 	 	 	 	 
	 	MCJUNKIN RED MAN HOLDING
CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PVF HOLDINGS LLC (for purposes of Section 15
only)

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PARTICIPANT

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 

 

	 	 	 	 	 

EXHIBIT A

Stockholders Agreement

8EX-10.18

Exhibit 10.18

MCJ HOLDING CORPORATION

2007 RESTRICTED STOCK PLAN

     1. Purpose. The purpose of the McJ Holding Corporation 2007 Restricted Stock Plan is
to aid the Company and its Affiliates in recruiting and retaining key employees, directors and
consultants of outstanding ability and to motivate such key employees, directors and consultants to
exert their best efforts on behalf of the Company and its Affiliates by providing incentives
through the granting of Restricted Stock. The Company expects that it will benefit from the added
interest which such key employees, directors or consultants will have in the welfare of the Company
as a result of their proprietary interest in the Company’s success.

     2. Definitions. The following capitalized terms used in the Plan or in an Agreement
have the respective meanings set forth in this Section.

	 	a.	 	Affiliate: With respect to any Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with
such specified Person.
	 
	 	b.	 	Agreement: The written agreement setting forth the terms and
conditions of Restricted Stock.
	 
	 	c.	 	Board: The Board of Directors of the Company.
	 
	 	d.	 	Cause: With respect to the Grantee’s termination of employment, (a) if
the Grantee is at the time of termination a party to an employment or retention
agreement that defines such term, the meaning given therein, and (b) in all other
cases, the Grantee’s (i) continuing failure, for more than 10 days after the Company’s
written notice to the Grantee 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 10 days of the Grantee receiving written notice of such
failure; (iii) failure to cooperate with any internal investigation of the Company;
(iv) commission of any act of fraud, theft or financial dishonesty with respect to the
Company or indictment or conviction of any felony; (v) chronic absenteeism; or (vi)
abuse of alcohol or another controlled substance.
	 
	 	e.	 	Committee: The Board or such committee of the Board as may be
designated from time to time to administer the Plan.
	 
	 	f.	 	Company: McJ Holding Corporation, a Delaware corporation, and any
successor thereto by merger, consolidation or otherwise.
	 
	 	g.	 	Disability: (a) if the Grantee is at the time of termination a party
to an employment or retention agreement that defines such term, the meaning given
therein, and (b) in all other cases, the Grantee is unable to perform his duties or
obligations to the Company by reason of physical or mental incapacity for a

 

 

	 	 	 	period of one hundred twenty (120) consecutive calendar days or a total period of
two hundred ten (210) calendar days in any three hundred sixty (360) calendar day
period.

	 	h.	 	Effective Date: March 27, 2007.
	 
	 	i.	 	Grantee: An employee, director or consultant who is selected by the
Committee to participate in the Plan.
	 
	 	j.	 	LLC Agreement: The Limited Liability Company Agreement of McJ Holding
LLC, dated as of December 4, 2006 (as amended and restated from time to time).
	 
	 	k.	 	McJ Holding LLC: McJ Holding LLC, a Delaware limited liability company
and parent of the Company.
	 
	 	l.	 	McJunkin: McJunkin Corporation, a West Virginia corporation and wholly
owned subsidiary of the Company.
	 
	 	m.	 	Person: Any individual, corporation, limited liability company,
limited or general partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government, or any agency or political subdivisions
thereof.
	 
	 	n.	 	Plan: This McJunkin Corporation 2007 Restricted Stock Plan.
	 
	 	o.	 	 Restricted Stock: Restricted common stock of the Company, granted on
the terms and conditions as set forth in an Agreement.
	 
	 	p.	 	Shares: Shares of common stock of the Company and any other securities
into which such shares of common stock are changed or for which such shares of common
stock are exchanged.
	 
	 	q.	 	Stockholders Agreement: The Management Stockholders Agreement dated as
of March 27, 2007 (as amended and restated from time to time) by and among the Company,
McJ Holding LLC and such other Persons who are or become parties thereto.
	 
	 	r.	 	Transaction: (i) Any event which results in the GSCP Members (as
defined in the LLC Agreement) and its or their Affiliates ceasing to directly or
indirectly beneficially own, in the aggregate, at least 35% of the equity interests of
McJunkin that they beneficially owned directly or indirectly as of the Effective Time
(as defined in the LLC Agreement); or (ii) in a single transaction or a series of
related transactions, the occurrence of the following event: a majority of the
outstanding voting power of McJ Holding LLC, the Company or McJunkin, or substantially
all of the assets of McJunkin, shall have been acquired or otherwise become
beneficially owned, directly or indirectly, by any Person (other than any Member (as
defined in the LLC Agreement) as of December 4, 2006 or any of its or their Affiliates,
or the McJ Holding LLC or any of its Affiliates) or any two or more Persons (other than
any Member as of December 4, 2006 or any of its or

-2-

 

	 	their Affiliates, or McJ Holding LLC or any of its Affiliates) acting as a
partnership, limited partnership, syndicate or other group, entity or association
acting in concert for the purpose of voting, acquiring, holding or disposing of the
voting power of the McJ Holding LLC, the Company, or McJunkin; it being understood
that, for this purpose, the acquisition or beneficial ownership of voting securities
by the public shall not be an acquisition or constitute beneficial ownership by any
Person or Persons acting in concert. For purposes of this definition, neither McJ
Holding LLC nor any Person controlled by McJ Holding LLC shall deemed to be an
Affiliate of any Member.

     3. Administration. The Plan shall be administered by the Committee. Subject to the
express limitations of the Plan, the Committee shall have authority in its discretion to determine
the employees, consultants or directors of the Company and its Affiliates to whom, and the time or
times at which, Restricted Stock may be granted, the time or times at which such Restricted Stock
will become vested and any other conditions of such Restricted Stock.

     4. Shares Subject to the Plan. The total number of shares of Restricted Stock which
may be issued under the Plan is 500. The shares of Restricted Stock may consist, in whole or in
part, of unissued Shares or treasury Shares. The issuance of shares of Restricted Stock shall
reduce the total number of shares of Restricted Stock available under the Plan. Shares which are
subject to Restricted Stock which terminate or lapse without the payment of consideration may again
be the subject of Restricted Stock granted under the Plan. In the event of any extraordinary cash
or Share dividend, or Share split, reverse split, reorganization, reclassification,
recapitalization, repurchase, issuance of warrants, rights or debentures, merger, consolidation,
spin-off, split-up, combination or exchange of Shares or other corporate exchange, or any
distribution to shareholders of Shares or any transaction similar to the foregoing, the Committee,
without liability to any person, shall take such equitable actions as are appropriate in its
reasonable judgment to preserve the economic rights of the Participant by such means as the
Committee shall determine.

     5. Terms and Conditions of Restricted Stock. Restricted Stock granted under the Plan
shall subject to the foregoing and the following terms and conditions and to such other terms and
conditions as the Committee shall determine and set forth in the applicable Agreement.

     6. No Right to Continued Employment. Nothing in this Plan or in an Agreement shall
interfere with or limit in any way the right of the Company or its subsidiaries to terminate the
Grantee’s employment, nor confer upon the Grantee any right to continuance of employment by the
Company or any of its subsidiaries or continuance of service as a Board member.

     7. Withholding of Taxes. Prior to the delivery to the Grantee (or the Grantee’s
estate, if applicable) of evidence of book-entry shares with respect to shares of Restricted Stock
in respect of which all restrictions have lapsed, the Grantee (or the Grantee’s estate) shall be
required to pay to the Company or any Affiliate, and the Company shall have the right and is hereby
authorized to withhold, any applicable withholding taxes in respect of such Restricted Stock, or
any payment or transfer under, or with respect to, such Restricted Stock, and to take such other
action as may be necessary in the opinion of the Committee to satisfy all obligations

-3-

 

for the payment of such withholding taxes. The Grantee shall be solely responsible for the
payment of all taxes relating to the payment or provision of any amounts or benefits hereunder.

     8. Choice of Law. The Plan shall be governed by and construed in accordance with the
laws of the State of New York, without regard to conflicts of laws.

     9. Effectiveness of the Plan. The Plan shall be effective as of the Effective Date.

-4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]