Document:

Exhibit
10.10

 

IPSCO
Inc.

2005
Form 10-K

 

PERFORMANCE
UNIT AWARD AGREEMENT

 

THIS
AGREEMENT made the 29th day of April, 2004.

 

BETWEEN:

 

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

 

(hereinafter called the
“Company”),

 

OF
THE FIRST PART,

 

-and-

 

BURTON M.
JOYCE, of Penhook, 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 29, 2004, (the “Commencement Date”) and ending on April 28, 2007, (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 (as calculated on a consolidated basis in
accordance with Canadian generally accepted accounting principles) attributable
to the common shares of the Company (the “Common Shares”).

 

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
28, 2007, 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.

 

2

 

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), all of the Performance
Units shall immediately lapse and be terminated and cancelled.  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 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.

 

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.

 

3

 

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 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 

 

4

 

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 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, VA

 

5

 

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.

 

6

 

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

 

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ George H. Valentine

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ R. J. Rarey

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Burton M. Joyce

  	
   

  
	
   

  	
  BURTON M. JOYCE

  	
   

  

 

7Exhibit 10.10a

 

IPSCO Inc.

2005 Form 10-K

 

2004 Performance Unit Award Agreements with
Directors

 

In accordance with the Instructions of Item 601 of Regulation S-K, the
registrant has omitted filing the 2004 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 10.10 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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