Document:

exv4w5

 

Exhibit 4.5

ANADARKO PETROLEUM CORPORATION

1999 STOCK INCENTIVE PLAN

As amended and restated January 1, 2005

SECTION 1.     Purpose.

     
The purpose of the 1999 Stock Incentive Plan is to promote the
interests of Anadarko Petroleum Corporation and its stockholders
by (i) attracting and retaining employees of the Company
and its affiliates; (ii) motivating such employees by means
of performance-related incentives to achieve longer-range
performance goals; and (iii) enabling such employees to
participate in the long-term growth and financial success of the
Company.

SECTION 2.     Definitions.

     
As used in the Plan, the following terms shall have the meanings
set forth below:

     
“Affiliate” shall mean (i) any entity
that, directly or through one or more intermediaries, is
controlled by the Company and (ii) any entity in which the
Company has a significant equity interest, as determined by the
Committee.

     
“Award” shall mean any Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit,
Performance Share, Performance Unit, Stock Compensation or Other
Stock-Based Award.

     
“Award Agreement” shall mean any agreement,
contract, or other instrument or document evidencing any Award,
which may, but need not, be executed or acknowledged by a
Participant.

     
“Board” shall mean the Board of Directors of
the Company.

     
“Change of Control” shall have the meaning set
forth in Section 8.

     
“Code” shall mean the Internal Revenue Code of
1986, as amended from time to time.

     
“Committee” shall mean the Compensation and
Benefits Committee of the Board.

     
“Company” shall mean Anadarko Petroleum
Corporation, a Delaware corporation.

     
“Covered Employee” means any key Employee who
is or may become a “Covered Employee,” as defined in
Section 162(m) of the Code, or any successor statute, and
who is designated, either as an individual Employee or class of
Employees, by the Committee within the shorter of
(i) ninety (90) days after the beginning of the
Performance Period, or (ii) twenty-five percent (25%) of
the Performance Period has elapsed, as a “Covered
Employee” under this Plan for such applicable Performance
Period.

     
“Dividend Equivalent” shall mean a right to
receive cash or Shares based on the value of dividends that are
paid with respect to Shares.

     
“Employee” shall mean any employee of the
Company or any Affiliate.

     
“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

     
“Exercise Price” shall mean the price
determined under Section 6(a)(i).

     
“Fair Market Value” shall mean a price that is
based on the opening, closing, actual, high, low or average
selling prices of a Share reported on the New York Stock
Exchange (“NYSE”) or other established stock exchange
(or exchanges) on the applicable date, the preceding trading
day, the next succeeding trading day, or an average of trading
days, as determined by the Committee in its discretion. Unless
the Committee determines otherwise, if the Shares are traded
over the counter at the time a determination of its Fair Market
Value is required to be made hereunder, its Fair Market Value
shall be deemed to be equal to the average between the reported
high and low or closing bid and asked prices of a

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Share on the most recent date on which Shares were publicly
traded. In the event Shares are not publicly determined at the
time a determination of their value is required to be made
hereunder, then determination of their Fair Market Value shall
be made by the Committee in such manner as it deems appropriate.
Such definition(s) of Fair Market Value shall be specified in
each Award Agreement and may differ depending on whether Fair
Market Value is in reference to the grant, exercise, vesting,
settlement, or payout of an Award.

     
“Full-Value Award” shall mean an Award other
than in the form of an Option or Stock Appreciation Right, and
which is settled by the issuance of Shares.

     
“Grant Price” shall mean the price established
at the time of grant of a Stock Appreciation Right pursuant to
Section 6(b), used to determine whether there is any
payment due upon exercise of the Stock Appreciation Right.

     
“Incentive Stock Option” shall mean an option
granted under Section 6(a) that is intended to meet the
requirements of Section 422 of the Code or any successor
provision thereto.

     
“Mature Shares” shall mean Shares held by a
Participant for a period of at least six months.

     
“Non-Qualified Stock Option” shall mean an
option granted under Section 6(a) that is not intended to
be an Incentive Stock Option.

     
“Option” shall mean an Incentive Stock Option
or a Non-Qualified Stock Option.

     
“Other Stock-Based Award” shall mean an
equity-based or equity-related Award not otherwise described by
the terms of this Plan, granted pursuant to Section 6(f).

     
“Participant” shall mean any Employee granted
an Award under the Plan.

     
“Performance Goals” shall be those goals
determined by the Committee applicable to any performance-based
award under the Plan which may be based on any one or
combination of the following performance criteria:
(i) finding and development costs; (ii) production and
operating costs; (iii) production, drilling and reserve
growth results; (iv) attainment of cash flow and net income
goals; (v) attainment of financial and operating return
ratios or margins; (vi) attainment of corporate financial
goals; (vii) mergers, divestitures and acquisitions
results; (viii) attainment of regulatory, environmental and
safety goals; and (ix) common stock price performance.

     
“Performance Period” means the period of time
during which the Performance Goals must be met in order to
determine the degree of payout and/or vesting with respect to an
Award.

     
“Performance Share” shall mean any Share
granted under Section 6(d).

     
“Performance Unit” shall mean an Award granted
to a Participant pursuant to Section 6(d), except no Shares
are actually awarded to the Participant on the date of grant.

     
“Person” shall have the meaning ascribed to
such term in Section 3(a)(9) of the Exchange Act and used
in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d) thereof.

     
“Plan” shall mean the 1999 Stock Incentive Plan
as amended.

     
“Restricted Period” shall mean a period of time
beginning as of the date of grant of an Award of Restricted
Stock or Restricted Stock Unit and ending as of the date upon
which the Shares subject to such Award are no longer restricted
or subject to forfeiture provisions.

     
“Restricted Stock” shall mean any Share, prior
to the lapse of restrictions thereon, granted under
Section 6(c).

     
“Restricted Stock Unit” shall mean an Award
granted to a Participant pursuant to Section 6(c), except
no Shares are actually awarded to the Participant on the date of
grant.

     
“SEC” shall mean the Securities and Exchange
Commission or any successor thereto.

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“Shares” shall mean the common shares of the
Company, $0.10 par value.

     
“Stock Appreciation Right” shall mean any right
granted under Section 6(b).

     
“Stock Compensation” shall mean any right
granted under Section 6(e).

SECTION 3.     Administration.

     
The Plan shall be administered by the Committee. Subject to the
terms of the Plan and applicable law, and in addition to other
express powers and authorizations conferred on the Committee by
the Plan, the Committee shall have full power and authority to:

		
	 	     
    (i) designate Participants;
	 
	 	     
    (ii) determine the type or types of Awards to be granted to
    a Participant;
	 
	 	     
    (iii) determine the number of Shares to be covered by, or
    with respect to which payments, rights, or other matters are to
    be calculated in connection with, Awards;
	 
	 	     
    (iv) determine the terms and conditions of any Award;
	 
	 	     
    (v) determine whether, to what extent, and under what
    circumstances Awards may be settled or exercised in cash,
    Shares, other securities, other Awards or other property, or
    cancelled, forfeited, or suspended and the method or methods by
    which Awards may be settled, exercised, cancelled, forfeited, or
    suspended;
	 
	 	     
    (vi) determine whether, to what extent, and under what
    circumstances cash, Shares, other securities, other Awards,
    other property, and other amounts payable with respect to an
    Award shall be deferred either automatically or at the election
    of the holder thereof or of the Committee;
	 
	 	     
    (vii) interpret and administer the Plan and any instrument
    or agreement relating to, or Award made under, the Plan;
	 
	 	     
    (viii) establish, amend, suspend, or waive such rules and
    regulations and appoint such agents as it shall deem appropriate
    for the proper administration of the Plan; and
	 
	 	     
    (ix) make any other determination and take any other action
    that the Committee deems necessary or desirable for the
    administration of the Plan.

     
Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other
decisions under or with respect to the Plan or any Award shall
be within the sole discretion of the Committee, may be made at
any time and shall be final, conclusive, and binding upon all
persons, including the Company, any Affiliate, any Participant,
any holder or beneficiary of any Award, any shareholder and any
Employee.

     
Notwithstanding anything herein to the contrary, without the
prior approval of the Company’s stockholders, Options and
Stock Appreciation Rights issued under the Plan will not be
repriced, replaced, or regranted through cancellation, or by
lowering the Exercise Price or Grant Price of a previously
granted Option or Stock Appreciation Right.

SECTION 4.     Shares
Available for and Limitations of Awards.

     
(a) Shares Available. Subject to the specified
limitations and adjustment as provided in this Section 4:

		
	 	     
    (i) Effective immediately following, and subject to, the
    approval by shareholders of the amendments to the Plan, as
    presented for vote at the annual meeting of the Company’s
    stockholders on May 12, 2005, the maximum number of Shares
    with respect to Awards, which may be granted as specified in
    Section 6 of the Plan, shall be equal to the sum of
    (a) 14,000,000 plus (b) the difference between
    (x) 8,800,000 and (y) the number of Shares available
    for grant under the Plan as of the

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    close of business on May 12, 2005, resulting in a maximum
    number of Shares available for grant under the Plan, as of
    May 12, 2005, equal to 8,800,000 Shares.
	 
	 	     
    (ii) Of the Shares that may be issued under
    Section 4(a)(i) of the Plan, no more than 6,600,000 of the
    reserved Shares may be issued pursuant to Full Value Awards; the
    number of Shares available for grant under this
    Section 4(ii) as of the close of business on May 12,
    2005 shall be 6,600,000.
	 
	 	     
    (iii) The maximum aggregate number of Shares that may be
    granted as Incentive Stock Options shall be 6,600,000.

     
Except with respect to a maximum of five percent (5%) of the
Shares available for grant as of the close of business on
May 12, 2005, pursuant to Section 4(a)(i), any Full
Value Awards which vest on the basis of the Participant’s
continued employment with or provision of service to the Company
shall not be 100% vested prior to three (3) years from the
date of grant and any Full Value Awards which vest upon the
attainment of Performance Goals shall provide for a Performance
Period of at least twelve (12) months; provided however,
the Full Value Awards may vest earlier than the three or more
year period due to (i) disability, (ii) death,
(iii) termination of employment due to a reduction in
force, job abolishment or at the convenience of the Company or
(iv) with the consent of the Committee, retirement.

     
The Committee shall determine the appropriate methodology for
calculating the number of Shares issued pursuant to the Plan.

     
Any Shares related to Awards which terminate by expiration,
forfeiture, cancellation, or otherwise without the issuance of
such Shares, are settled in cash in lieu of Shares, or are
exchanged with the Committee’s permission for Awards not
involving Shares, shall be available again for grant under the
Plan. However, the full number of Stock Appreciation Rights
granted that are to be settled by the issuance of Shares shall
be counted against the number of Shares available for award
under the Plan, regardless of the number of Shares actually
issued upon settlement of such Stock Appreciation Rights. The
Shares available for issuance under the Plan may be authorized
and unissued Shares or treasury Shares.

     
(b) Section 162(m) Requirements. To the extent
an Award to a Covered Employee is intended to qualify as
performance-based compensation under Section 162(m) of the
Code, the following additional limitations are imposed under the
Plan, subject to adjustments as provided in this Section 4.

		
	 	     
    (i) The maximum aggregate number of Shares that may be
    granted as Options and Stock Appreciation Rights to any one
    individual annually shall be 750,000 Shares.
	 
	 	     
    (ii) The maximum aggregate grant with respect to Restricted
    Stock, Restricted Stock Unit or Stock Compensation Awards to any
    one individual annually shall be 500,000.
	 
	 	     
    (iii) The maximum aggregate grant with respect to
    Performance Share or Performance Unit Awards to any one
    individual annually shall be 500,000.
	 
	 	     
    (iv) The maximum aggregate grant with respect to Other
    Stock-Based Awards to any one individual annually shall be
    500,000.

     
(c) Sources of Shares Deliverable Under Awards. Any
Shares delivered pursuant to an Award may consist, in whole or
in part, of authorized and unissued Shares or treasury Shares.

     
(d) Adjustments. In the event that the Committee
determines that any dividend or other distribution (whether in
the form of cash, Shares, other securities, or other property),
recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other
securities of the Company, issuance of warrants or other rights
to purchase Shares or other securities of the Company, or other
similar corporate transaction or event affects the Shares such
that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available
under the Plan, then the Committee shall, in such manner as it
may deem equitable, adjust any or all of (i) the number and
type of Shares (or other securities or property) with respect to
which Awards may be granted, (ii) the number and type of
Shares (or other securities or property) subject to outstanding
Awards, and (iii) the Grant Price or Exercise Price with
respect to any Award or, if deemed appropriate, make

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provision for a cash payment to the holder of an outstanding
Award; provided, that the number of Shares subject to any
Award denominated in Shares shall always be a whole number.

SECTION 5.     Eligibility.

     
Any Employee shall be eligible to be designated a Participant.

SECTION 6.     Awards.

     
(a) Options. The Committee shall have authority to
award Options subject to the following terms and conditions and
such additional terms and conditions as the Committee shall
determine are not inconsistent with the provisions of the Plan.

		
	 	     
    (i) Exercise Price. The purchase price per Share
    purchasable under an Option shall be determined by the Committee
    at the time each Option is granted; provided, however,
    that the purchase price per Share shall not be less than 100% of
    Fair Market Value on the date of grant, except in the case of
    Options that are granted in assumption of, or in substitution
    for, outstanding awards previously granted by (i) a company
    acquired by the Company or one or more of its Affiliates, or
    (ii) a company with which the Company or one or more of its
    Affiliates combines.
	 
	 	     
    (ii) Time and Method of Exercise. Options shall be
    exercisable in accordance with such terms and conditions and
    during such periods as may be established by the Committee.
	 
	 	     
    (iii) Payment of Option Exercise Price. The payment
    of the Exercise Price of an Option granted under this
    Section 6 shall be subject to the following:

		
	 	     
    (A) The full Exercise Price for Shares purchased upon the
    exercise of any Option shall be paid at the time of such
    exercise (except that, in the case of an exercise arrangement
    approved by the Committee and described in
    subsection (C) below, payment may be made as soon as
    practicable after the exercise).
	 
	 	     
    (B) The Exercise Price shall be payable in cash or by
    tendering Mature Shares (by either actual delivery of Mature
    Shares or by attestation, with such Shares valued at Fair Market
    Value as of the day of exercise), or in any combination thereof,
    as determined by the Committee.
	 
	 	     
    (C) The Committee may permit a Participant to elect to pay
    the Exercise Price upon the exercise of an Option by authorizing
    a third party to sell Shares (or a sufficient portion of the
    Shares) acquired upon exercise of the Option and remit to the
    Company a sufficient portion of the sale proceeds to pay the
    entire Exercise Price and any tax withholding resulting from
    such exercise.

		
	 	     
    (iv) Incentive Stock Options. The terms of any
    Incentive Stock Option granted under the Plan shall comply in
    all respects with the provisions of Section 422 of the
    Code, or any successor provision, and any regulations
    promulgated thereunder.
	 
	 	     
    (v) Dividend Equivalents. At the discretion of the
    Committee, Participants holding Options may be entitled to
    receive Dividend Equivalents with respect to dividends declared
    with respect to the Shares. Such Dividend Equivalents may be in
    the form of cash, Shares, Restricted Stock, or Restricted Stock
    Units, and may be subject to accrual, forfeiture, or payout
    restrictions as determined by the Committee in its sole
    discretion.
	 
	 	     
    (vi) Substituting Stock Appreciation Rights. In the
    event the Company no longer uses APB Option 25 to account for
    equity compensation and is required to or elects to expense the
    cost of Options pursuant to FAS 123 (or a successor
    standard), the Committee shall have the ability to substitute,
    without receiving Participant permission, Stock Appreciation
    Rights paid only in Stock (or Stock Appreciation Rights paid in
    Stock or cash at the Committee’s discretion) for
    outstanding Options; provided, the terms of the substituted
    Stock SAR’s are the same as the terms for the Options and
    the difference between the Fair Market Value of the underlying
    Shares and the Grant

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    Price of the SAR’s is equivalent to the difference between
    the Fair Market Value of the underlying shares and the Option
    Price of the Options. If, in the opinion of the Company’s
    auditors, this provision creates adverse accounting consequences
    for the Company, it shall be considered null and void.

     
(b) Stock Appreciation Rights. The Committee shall
have authority to award Stock Appreciation Rights which shall
consist of a right to receive the excess of the Fair Market
Value over the Grant Price. Subject to the following conditions,
a Stock Appreciation Right may be granted in tandem with another
Award, in addition to another Award, or freestanding and
unrelated to another Award. A Stock Appreciation Right granted
in tandem with or in addition to another Award may be granted
either at the same time as such other Award or at a later time.

		
	 	     
    (i) Grant Price. The Grant Price of a Stock
    Appreciation Right shall be determined by the Committee;
    provided, however, that the Grant Price shall not be less
    than 100% of Fair Market Value on the date of grant or on the
    date of original grant of any related Award, except in case of
    Awards granted in assumption of, or in substitution for,
    outstanding awards previously granted by (i) a company
    acquired by the Company or one or more of its Affiliates, or
    (ii) a company with which the Company or one or more of its
    Affiliates combines.
	 
	 	     
    (ii) Other Terms and Conditions. The Committee may
    impose such conditions or restrictions on the exercise of any
    Stock Appreciation Right as it shall deem appropriate.
	 
	 	     
    (iii) Dividend Equivalents. At the discretion of the
    Committee, Participants holding SARs may be entitled to receive
    Dividend Equivalents with respect to dividends declared with
    respect to Shares. Such Dividend Equivalents may be in the form
    of cash, Shares, Restricted Stock, or Restricted Stock Units,
    and may be subject to accrual, forfeiture, or payout
    restrictions as determined by the Committee in its sole
    discretion.

     
(c) Restricted Stock and Restricted Stock Units. The
Committee shall have authority to award Restricted Stock and
Restricted Stock Units subject to such conditions, restrictions
and contingencies as the Committee shall determine, including
but not limited to the following terms and conditions.

		
	 	     
    (i) Dividends. Unless otherwise determined by the
    Committee, Restricted Stock Awards shall provide for the payment
    of dividends during the Restricted Period. Dividends paid on
    Restricted Stock may be paid directly to the Participant, may be
    subject to risk of forfeiture and/or transfer restrictions
    during any period established by the Committee, all as
    determined by the Committee in its discretion.
	 
	 	     
    (ii) Registration. Any Restricted Stock may be
    evidenced in such manner, as the Committee shall deem
    appropriate, including, without limitation, book-entry
    registration or issuance of a stock certificate or certificates.
    In the event any stock certificate is issued in respect of
    Restricted Stock granted under the Plan, such certificate shall
    be registered in the name of the Participant and shall bear an
    appropriate legend referring to the terms, conditions, and
    restrictions applicable to such Restricted Stock. Unrestricted
    Shares, evidenced in such manner as the Committee shall deem
    appropriate, shall be issued to the holder of Restricted Stock
    promptly after the applicable restrictions have lapsed or
    otherwise been satisfied.
	 
	 	     
    (iii) Transfer Restrictions. During the applicable
    Restricted Period, Restricted Stock and/or Restricted Stock
    Units will be subject to the limitations on transfer as provided
    in Section 6(f)(iii).
	 
	 	     
    (iv) Performance Based. The Committee may, subject
    to the terms of the Plan, establish at the time a Restricted
    Stock or Restricted Stock Unit Award is granted the Performance
    Period, the Performance Goals pursuant to which the restrictions
    on the Restricted Stock or Restricted Stock Unit Award will
    lapse and establish the schedule or schedules setting forth the
    portion of the Restricted Stock or Restricted Stock Unit Award
    which will be earned or forfeited based on the degree of
    achievement, or lack thereof, of the Performance Goals at the
    end of the relevant Performance Period. During any Performance
    Period, the Committee shall have authority to adjust the
    Performance Goals in such manner as the Committee, in its sole
    discretion, deems appropriate

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    with respect to such Performance Period. Provided however, to
    the extent such adjustment affects Awards to Covered Employees,
    they shall be prescribed in a form that meets the requirements
    of Code Section 162(m) for deductibility.
	 
	 	     
    (v) Voting Rights. Unless otherwise determined by
    the Committee and set forth in a Participant’s Award
    Agreement, to the extent permitted or required by law, as
    determined by the Committee, Participants holding Shares of
    Restricted Stock granted hereunder may be granted the right to
    exercise full voting rights with respect to those Shares during
    the Restricted Period. A Participant shall have no voting rights
    with respect to any Restricted Stock Units granted hereunder.

     
(d) Performance Shares and Performance Units. The
Committee shall have authority to grant Performance Shares and
Performance Units and shall confer on the holder thereof
compensation rights based upon the achievement of Performance
Goals.

		
	 	     
    (i) Terms and Conditions. Subject to the terms of
    the Plan, the Committee shall establish at the time a
    Performance Share or Performance Unit is granted the Performance
    Period (which shall not be less than one year), the Performance
    Goals pursuant to which a Participant may earn and be entitled
    to a payment under such Performance Share or Performance Unit
    and establish the schedule or schedules setting forth the
    portion of the Performance Share or Performance Unit which will
    be earned or forfeited based on the degree of achievement, or
    lack thereof, of the Performance Goals at the end of the
    relevant Performance Period. During any Performance Period, the
    Committee shall have authority to adjust the Performance Goals
    in such manner as the Committee, in its sole discretion, deems
    appropriate with respect to such Performance Period. Provided
    however, to the extent such adjustment affects Awards to Covered
    Employees, they shall be prescribed in a form that meets the
    requirements of Code Section 162 (m) for deductibility.
	 
	 	     
    (ii) Payment of Awards. Performance Share and
    Performance Unit compensation payments may be paid in a lump sum
    or in installments, in cash, Shares or in any combination
    thereof, following the close of the Performance Period or, in
    accordance with procedures established by the Committee, on a
    deferred basis.

     
(e) Stock Compensation. The Committee shall have
authority to make an Award in lieu of all or a portion of the
cash compensation payable under any compensation program of the
Company. The number and type of Shares to be distributed, as
well as the terms and conditions of any such Awards, shall be
determined by the Committee.

     
(f) Other Stock-Based Awards. The Committee may
grant other types of equity-based or equity-related Awards not
otherwise described by the terms of this Plan (including the
grant or offer for sale of unrestricted Shares) in such amounts
and subject to such terms and conditions, as the Committee shall
determine. Such Awards may involve the transfer of actual Shares
to Participants, or payment in cash or otherwise of amounts
based on the value of Shares and may include, without
limitation, Awards designed to comply with or take advantage of
the applicable local laws of jurisdictions other than the United
States.

		
	 	     
    (i) Value of Other Stock-Based Awards. Each Other
    Stock-Based Award shall be expressed in terms of Shares or units
    based on Shares, as determined by the Committee. The Committee
    may establish Performance Goals in its discretion. If the
    Committee exercises its discretion to establish Performance
    Goals, the number and/or value of Other Stock-Based Awards that
    will be paid out to the Participant will depend on the extent to
    which the Performance Goals are met.
	 
	 	     
    (ii) Payment of Other Stock-Based Awards. Payment, if any,
    with respect to an Other Stock-Based Award shall be made in
    accordance with the terms of the Award, in cash or Shares as the
    Committee determines.

     
(g) General.

		
	 	     
    (i) Awards May Be Granted Separately or Together.
    Awards may, in the discretion of the Committee, be granted
    either alone or in addition to, in tandem with, or in
    substitution for any other Award granted under the Plan or any
    award granted under any other plan of the Company or any

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    Affiliate. Awards granted in addition to or in tandem with other
    Awards or awards granted under any other plan of the Company or
    any Affiliate may be granted either at the same time as or at a
    different time from the grant of such other Awards or awards.
	 
	 	     
    (ii) Forms of Payment by Company Under Awards.
    Subject to the terms of the Plan and of any applicable Award
    Agreement, payments or transfers to be made by the Company or an
    Affiliate upon the grant, exercise or payment of an Award may be
    made in such form or forms as the Committee shall determine,
    including, without limitation, cash, Shares, other securities,
    other Awards or other property, or any combination thereof, and
    may be made in a single payment or transfer, in installments, or
    on a deferred basis, in each case in accordance with rules and
    procedures established by the Committee. Such rules and
    procedures may include, without limitation, provisions for the
    payment or crediting of reasonable interest on installment or
    deferred payments.
	 
	 	     
    (iii) Limits on Transfer of Awards.

		
	 	     
    (A) Each Award, and each right under any Award, shall be
    exercisable only by the Participant during the
    Participant’s lifetime, or, if permissible under applicable
    law, by the Participant’s guardian or legal representative
    or by a transferee receiving such Award pursuant to a qualified
    domestic relations order (a “QDRO”) as determined by
    the Committee.
	 
	 	     
    (B) Except as otherwise provided by the Committee, Awards
    under the Plan are not transferable except as designated by the
    Participant by will or by the laws of descent and distribution.

		
	 	     
    (v) Duration of Options. Each Option granted to a
    Participant shall expire at such time as the Committee shall
    determine at the time of grant; provided, however, no Option
    shall be exercisable later than the tenth (10th) anniversary
    date of its grant.
	 
	 	     
    (vi) Term of SAR. The term of an SAR granted under
    the Plan shall be determined by the Committee, in its sole
    discretion, and except as determined otherwise by the committee
    and specified in the SAR Award Agreement, no SAR shall be
    exercisable later than the tenth (10th) anniversary date of it
    grant.
	 
	 	     
    (vii) Share Certificates. All certificates for
    Shares or other securities of the Company or any Affiliate
    delivered under the Plan pursuant to any Award or the exercise
    thereof shall be subject to such stop transfer orders and other
    restrictions as the 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 or other securities are then 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.
	 
	 	     
    (vii) Consideration for Grants. Awards may be
    granted for no cash consideration or for such consideration as
    the Committee determines including, without limitation, such
    minimal cash consideration as may be required by applicable law.
	 
	 	     
    (viii) Delivery of Mature Shares or other Securities and
    Payment by Participant of Consideration. No Shares or other
    securities shall be delivered pursuant to any Award until
    payment in full of any amount required to be paid is received by
    the Company pursuant to the Plan or the applicable Award
    Agreement. Such payment may be made by such method or methods
    and in such form or forms as the Committee shall determine,
    including, without limitation, cash, Mature Shares, other
    securities, other Awards or other property, or any combination
    thereof; provided that the combined value, as determined
    by the Committee, of all cash and cash equivalents and the Fair
    Market Value of any such Shares or other property so tendered to
    the Company, as of the date of such tender, is at least equal to
    the full amount required to be paid pursuant to the Plan or the
    applicable Award Agreement to the Company.

A-8

 

SECTION 7.     Amendment and
Termination.

     
Except to the extent prohibited by applicable law and unless
otherwise expressly provided in an Award Agreement or in the
Plan:

		
	 	     
    (a) Amendments to the Plan. The Board may amend,
    alter, suspend, discontinue, or terminate the Plan without the
    consent of any shareholder, Participant, other holder or
    beneficiary of an Award, or other Person; provided that
    notwithstanding any other provision of the Plan or any Award
    Agreement, without the approval of the stockholders of the
    Company no such amendment, alteration, suspension,
    discontinuation, or termination shall be made that would:

		
	 	     
    (i) increase the total number of Shares available for
    Awards under the Plan, except as provided in Section 4(d);
	 
	 	     
    (ii) permit Awards encompassing rights to purchase Shares
    to be granted with per Share grant, exercise or purchase prices
    of less than the Fair Market Value of a Share on the date of
    grant thereof, except as otherwise permitted under
    Section 6;

		
	 	     
    (iii) permit a change in the class of employees eligible to
    receive Awards; or
	 
	 	     
    (iv) materially increase the benefits accruing to
    Participants under the Plan.

		
	 	
    Additionally, no amendment of the Plan shall be made without
    shareholder approval if shareholder approval is required by law,
    regulation, or stock exchange rule; including, but not limited
    to, the Exchange Act, the Code, and, if applicable, the New York
    Stock Exchange Listed Company Manual/the Nasdaq issuer rules.

		
	 	     
    (b) Amendments to Awards. The Committee may amend
    any Award theretofore granted, provided no change in any Award
    shall reduce the benefit to Participant without the consent of
    such Participant. Notwithstanding the foregoing, the Committee
    is not authorized to reprice or cancel and reissue Options.
	 
	 	     
    (c) Adjustment of Awards. The Committee is
    authorized to make adjustments in the terms and conditions of,
    and the criteria included in, Awards in recognition of unusual
    or nonrecurring events (including, without limitation, the
    events described in Section 4(d)) affecting the Company,
    any Affiliate, or the financial statements of the Company or any
    Affiliate, or of changes in applicable laws, regulations, or
    accounting principles, whenever the Committee determines that
    such adjustments are appropriate in order to prevent dilution or
    enlargement of the benefits or potential benefits intended to be
    made available under the Plan.

SECTION 8.     Change of
Control.

     
(a) Notwithstanding any other provision of the Plan to the
contrary, in the event of a Change of Control and as of the date
such Change of Control is determined to have occurred:

		
	 	     
    (i) Any Options and Stock Appreciation Rights outstanding
    as of the date of the Change of Control, and which are not then
    exercisable and vested, shall become fully exercisable and
    vested.
	 
	 	     
    (ii) The restrictions applicable to any Restricted Stock or
    Restricted Stock Unit Award as of the date of the Change of
    Control which is not performance based shall lapse and such
    Restricted Stock or Restricted Stock Unit shall become free of
    all restrictions and become fully vested and transferable.
	 
	 	     
    (iii) Except as otherwise set forth in a Participant’s
    Award Agreement, as of the date of the Change of Control, the
    restrictions applicable to any Performance Share or Performance
    Unit Award and any performance-based Restricted Stock or
    Restricted Stock Unit Award granted pursuant to
    Section 6(c)(iv) or Section 6(d) shall become free of
    all restrictions and become fully vested and transferable.

A-9

 

     
(b) In addition to the Board’s authority set forth in
Sections 7(c) and 8(a), in order to maintain the
Participants’ rights in the event of any Change of Control,
the Board, as constituted before such Change of Control, is
hereby authorized, and has sole discretion, as to any Award,
either at the time such Award is made hereunder or any time
thereafter, to take any one or more of the following actions:
(i) provide for the purchase of any such Award for an
amount of cash equal to the amount that could have been attained
upon the exercise of such Award or realization of the
Participant’s rights had such Award been currently
exercisable or payable; (ii) make such adjustment to any
such Award then outstanding as the Board deems appropriate to
reflect such Change of Control; or (iii) cause any such
Award then outstanding to be assumed, or new rights substituted
therefor, by the acquiring or surviving corporation after such
Change of Control. The Board may, in its discretion, include
such further provisions and limitations in any Award Agreement,
as it may deem equitable and in the best interests of the
Company.

     
(c) A “Change of Control” shall be deemed to
occur if:

		
	 	     
    (i) any individual, entity or group (within the meaning of
    Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
    “Person”) acquires beneficial ownership (within the
    meaning of Rule 13d-3 promulgated under the Exchange Act)
    of 20% or more of either (A) the then outstanding shares of
    common stock of the Company (the “Outstanding Company
    Common Stock”) or (B) the combined voting power of the
    then outstanding voting securities of the Company entitled to
    vote generally in the election of directors (the
    “Outstanding Company Voting Securities”);
    provided, however, that for purposes of this
    subsection (i), the following acquisitions shall not
    constitute a Change of Control: (1) any acquisition
    directly from the Company, (2) any acquisition by the
    Company, (3) any acquisition by any employee benefit plan
    (or related trust) sponsored or maintained by the Company or any
    corporation controlled by the Company or (4) any
    acquisition pursuant to a transaction which complies with
    clauses (A), (B) and (C) of
    subsection (iii) of this Section (c); or
	 
	 	     
    (ii) individuals who, as of the effective date of the Plan,
    constitute the Board (the “Incumbent Board”) cease for
    any reason to constitute at least a majority of the Board;
    provided, however, that any individual becoming a
    director subsequent to the effective date of the Plan whose
    election, or nomination for election by the Company’s
    stockholders, was approved by a vote of at least a majority of
    the directors then comprising the Incumbent Board shall be
    considered as though such individual were a member of the
    Incumbent Board, but excluding, for this purpose, any such
    individual whose initial assumption of office occurs as a result
    of an actual or threatened election contest with respect to the
    election or removal of directors or other actual or threatened
    solicitation of proxies or consents by or on behalf of a person
    other than the Board; or
	 
	 	     
    (iii) consummation by the Company of a reorganization,
    merger or consolidation or sale or other disposition of all or
    substantially all of the assets of the Company or the
    acquisition of assets of another entity (a “Business
    Combination”), in each case, unless, following such
    Business Combination, (A) all or substantially all of the
    individuals and entities who were the beneficial owners,
    respectively, of the Outstanding Company Common Stock and
    Outstanding Company Voting Securities immediately prior to such
    Business Combination beneficially own, directly or indirectly,
    more than 60% of, respectively, the then outstanding shares of
    common stock and the combined voting power of the then
    outstanding voting securities entitled to vote generally in the
    election of directors, as the case may be, of the corporation
    resulting from such Business Combination (including, without
    limitation, a corporation which as a result of such transaction
    owns the Company or all or substantially all of the
    Company’s assets either directly or through one or more
    subsidiaries) in substantially the same proportions as their
    ownership, immediately prior to such Business Combination of the
    Outstanding Company Common Stock and Outstanding Company Voting
    Securities, as the case may be, (B) no person (excluding
    any employee benefit plan (or related trust) of the Company or
    such corporation resulting from such Business Combination)
    beneficially own, directly or indirectly, 20% or more of,
    respectively, the then outstanding shares of common stock of the
    corporation resulting from such Business Combination or the
    combined voting power of the then outstanding voting securities
    of such corporation except to the extent that such ownership
    existed prior to the Business Combination, and (C) at least
    a majority of the members of the board of directors of

A-10

 

		
	 	
    the corporation resulting from such Business Combination were
    members of the Incumbent Board at the time of the execution of
    the initial agreement, or of the action of the Board, providing
    for such Business Combination; or
	 
	 	     
    (iv) approval by the stockholders of the Company of a
    complete liquidation or dissolution of the Company.

SECTION 9.     General
Provisions.

     
(a) No Rights to Awards. No Employee, Participant or
other person shall have any claim to be granted any Award, and
there is no obligation for uniformity of treatment of Employees,
Participants, or holders or beneficiaries of Awards. The terms
and conditions of Awards need not be the same with respect to
each recipient.

     
(b) Delegation. Subject to the terms of the Plan and
applicable law, the Committee may delegate to one or more
officers or managers of the Company or any Affiliate, or to a
committee of such officers or managers, the authority, subject
to such terms and limitations as the Committee shall determine,
to grant Awards to, or to cancel, modify or waive rights with
respect to, or to alter, discontinue, suspend, or terminate
Awards held by Participants who are not officers or directors of
the Company for purposes of Section 16 of the Exchange Act,
or any successor Section thereto, or who are otherwise not
subject to such Section. The Committee may engage or authorize
the engagement of a third party administrator to carry out
administrative functions under the Plan.

     
(c) Tax Withholding. The Company or any Affiliate is
hereby authorized to withhold from any Award, from any payment
due or transfer made under any Award or under the Plan or from
any compensation or other amount owing to a Participant the
amount (in cash, Shares, other securities, other Awards or other
property) of any applicable withholding taxes in respect of an
Award, its exercise, the lapse of restrictions thereon, or any
payment or transfer under an Award or under the Plan and to take
such other action as may be necessary in the opinion of the
Company to satisfy all obligations for the payment of such taxes.

     
(d) No Limit on Other Compensation Arrangements.
Nothing contained in the Plan shall prevent the Company or any
Affiliate from adopting or continuing in effect other
compensation arrangements (subject to shareholder approval of
such other arrangement, if such approval is required), and such
arrangements may be either generally applicable or applicable
only in specific cases.

     
(e) No Right to Employment. The grant of an Award
shall not be construed as giving a Participant the right to be
retained in the employ of the Company or any Affiliate. Further,
the Company or an Affiliate may at any time dismiss a
Participant from employment, free from any liability or any
claim under the Plan, unless otherwise expressly provided in the
Plan or in any Award Agreement.

     
(f) Governing Law. The validity, construction, and
effect of the Plan and any rules and regulations relating to the
Plan shall be determined in accordance with the laws of the
State of Texas and applicable Federal law.

     
(g) Severability. If any provision of the Plan or
any Award is or becomes or is deemed to be invalid, illegal, or
unenforceable in any jurisdiction or as to any person or Award,
or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed
or deemed amended to conform to applicable laws, or if it cannot
be construed or deemed amended without, in the determination of
the Committee, materially altering the intent of the Plan or the
Award, such provision shall be stricken as to such jurisdiction,
person or Award and the remainder of the Plan and any such Award
shall remain in full force and effect.

     
(h) Other Laws. The Committee may refuse to issue or
transfer any Shares or other consideration under an Award if,
acting in its sole discretion, it determines that the issuance
or transfer of such Shares or such other consideration might
violate any applicable law or regulation or entitle the Company
to recover the same under Section 16(b) of the Exchange
Act, and any payment tendered to the Company

A-11

 

by a Participant, other holder or beneficiary in connection with
the exercise of such Award shall be promptly refunded to the
relevant Participant, holder or beneficiary.

     
(i) No Trust or Fund Created. Neither the Plan
nor any Award shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between
the Company or any Affiliate and a Participant or any other
person. To the extent that any person acquires a right to
receive payments from the Company or any Affiliate pursuant to
an Award, such right shall be no greater than the right of any
unsecured general creditor of the Company or any Affiliate.

     
(j) No Fractional Shares. No fractional Shares shall
be issued or delivered pursuant to the Plan or any Award, and
the Committee shall determine whether cash, other securities, or
other property shall be paid or transferred in lieu of any
fractional Shares or whether such fractional Shares or any
rights thereto shall be cancelled, terminated, or otherwise
eliminated.

     
(k) Headings. Headings are given to the Sections and
subsections of the Plan solely as a convenience to facilitate
reference. Such headings shall not be deemed in any way material
or relevant to the construction or interpretation of the Plan or
any provision thereof.

     
(l) Employees Based Outside of the United States.
Without limiting in any way the generality of the
Committee’s powers under this Plan, including but not
limited to the power to specify any terms and conditions of an
Award consistent with law, in order to comply with the laws in
other countries in which the company operates or has Employees,
the Committee, in its sole discretion, shall have the power and
authority notwithstanding any provision of the Plan to the
contrary, to:

		
	 	     
    (i) determine which Affiliates shall be covered by the Plan;
	 
	 	     
    (ii) determine which Employees outside the United States
    are eligible to participate in the Plan;
	 
	 	     
    (iii) modify the terms and conditions of any Award granted
    to Employees outside the United States to comply with applicable
    foreign laws;
	 
	 	     
    (iv) establish subplans and modify exercise procedures and
    other terms and procedures, to the extent such actions may be
    necessary or advisable, any subplans and modifications to Plan
    terms and procedures established under this Section 9(l) by
    the Committee shall be attached to this Plan document as
    appendices; and
	 
	 	     
    (v) take any action, before or after an Award is made that
    it deems advisable to obtain approval or comply with any
    necessary local government regulatory exemptions or approvals.

		
	 	
    Notwithstanding the above, the Committee may not take any
    actions hereunder and no Awards shall be granted that would
    violate the Exchange Act, the Code, any securities law, or
    governing statute or any applicable law.

SECTION 10.     Effective
Date of the Plan.

     
The Plan shall be effective as of the date of its approval by
the Board, subject to its approval by the stockholders of the
Company.

SECTION 11.     Term of the
Plan.

     
No Award shall be granted under the Plan ten years after
approval by the Board. However, unless otherwise expressly
provided in the Plan or in an applicable Award Agreement, any
Award theretofore granted may, and the authority of the Board or
the Committee to amend, alter, adjust, suspend, discontinue, or
terminate any such Award or to waive any conditions or rights
under any such Award shall, extend beyond such date.

A-12exv10w1

 

Exhibit 10.1

     AMENDMENT TO AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT dated as of June 22,
2005 (the “Amendment”) among CMC RECEIVABLES, INC. (the “Seller”), COMMERCIAL METALS COMPANY (the
“Servicer”), THREE RIVERS FUNDING CORPORATION and LIBERTY STREET FUNDING CORP. (collectively, the
“Buyers”), THE BANK OF NOVA SCOTIA and MELLON BANK, N.A. (collectively, the “Managing Agents”) and
MELLON BANK, N.A., as Administrative Agent (the “Administrative Agent”).

W I T N E S S E T H:

     WHEREAS, the Seller, the Servicer, the Buyers, the Managing Agents and the Administrative
Agent are parties to an Amended and Restated Receivables Purchase Agreement dated as of April 22,
2004 (the “RPA”);

     WHEREAS, the parties desire to amend the RPA;

     NOW, THEREFORE, the parties agree as follows:

SECTION 1. DEFINITIONS

     Defined terms used herein and not defined herein shall have the meanings assigned to such
terms in the RPA.

SECTION 2. AMENDMENT OF RPA

	 	(a)	 	The parties hereto agree that, effective as of June 22, 2005 (the “Effective
Date”), Section 9.04(d) of the RPA shall be amended by replacing the ratio “3.00 to
1.00” set forth therein with the ratio “2.50 to 1.00”.
	 
	 	(b)	 	The parties hereto agree that, effective as of the Effective Date, Section
9.04(e) of the RPA shall be amended by replacing the ratio “0.55 to 1.00” set forth
therein with the ratio “0.60 to 1.00”.

SECTION 3. CONDITIONS PRECEDENT

     The occurrence of the Effective Date shall be subject to the conditions precedent that the
each of the Buyers shall have received this Amendment executed by each party hereto in form and
substance satisfactory to it.

SECTION 4. GOVERNING LAW

     THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAWS RULES (OTHER THAN SECTION 5-1401 OF NEW YORK’S
GENERAL OBLIGATIONS LAW).

 

 

SECTION 5. EXECUTION IN COUNTERPARTS

     This Amendment may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which, when so executed, shall be deemed to be an original and
all of which, when taken together, shall constitute one and the same Amendment. Delivery of an
executed counterpart of a signature page to this Amendment by facsimile shall be effective as
delivery of a manually executed counterpart of this Amendment.

SECTION 6. CONFIRMATION OF AGREEMENT

     Each of the parties to the RPA agree that, except as amended hereby, the RPA continues in full
force and effect. The Seller and the Servicer hereby represent and warrant that, after giving
effect to the effectiveness of this Amendment, their respective representations and warranties
contained in the RPA are true and correct in all material respects upon and as of such
effectiveness with the same force and effect as though made on and as of such date (except to the
extent that such representations and warranties relate solely to an earlier date).

2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	 	CMC RECEIVABLES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory
	 
	 	 	 	 
	 	 	COMMERCIAL METALS COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory
	 
	 	 	 	 
	 	 	THREE RIVERS FUNDING CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory
	 
	 	 	 	 
	 	 	MELLON BANK, N.A.,

as Managing Agent and Administrative Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory
	 
	 	 	 	 
	 	 	LIBERTY STREET FUNDING CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory
	 
	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

3

 

Acknowledged and Agreed to by:

	 	 	 	 	 
	STRUCTURAL METALS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	SMI STEEL, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	OWEN ELECTRIC STEEL COMPANY OF SOUTH CAROLINA

d/b/a SMI STEEL SOUTH CAROLINA	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	CMC STEEL FABRICATORS, INC.

d/b/a SMI JOIST COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	HOWELL METAL COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

4

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