Document:

exv4w2

 

Exhibit 4.2

NORTH AMERICAN ENERGY PARTNERS INC.

AMENDED AND RESTATED

2004 SHARE OPTION PLAN

October •, 2006

I.      PURPOSE

     The purpose of the NORTH AMERICAN ENERGY PARTNERS INC. 2004 SHARE OPTION PLAN (the “Plan"), as
amended and restated, is to provide a means through which North American Energy Partners Inc. (the
"Corporation"), a Canadian corporation and the successor by amalgamation to NACG Holdings Inc., and
its Affiliates, may attract able persons to be officers, Directors, or employees or to provide
services to the Corporation or any of its Affiliates and to provide a means whereby officers,
Directors, employees and/or service providers to the Corporation or any of its Affiliates can
acquire and maintain share ownership in the Corporation, thereby strengthening their concern for
the welfare of the Corporation or any of its Affiliates and their desire to remain in their employ
or in their service. Accordingly, the Plan provides for granting Options in a manner best suited
to the circumstances of the particular employee, officer, Director or service provider as set out
herein.

II.      DEFINITIONS

     The following definitions shall be applicable throughout the Plan unless specifically modified
by any paragraph:

     (a) “1934 Act” means the United States Securities Exchange Act of 1934, as amended.

     (b) “Affiliates” means any affiliated body corporate of the Corporation as defined at Section
2(2) of the Canada Business Corporations Act.

     (c) “Award” means any Option granted to an employee, officer, Director or Consultant.

     (d) “Board” means the Board of Directors of the Corporation.

     (e) “Change of Control” means the occurrence of any one or more of the following events:

	 	(i)	 	a consolidation, merger, amalgamation, arrangement or other
reorganization or acquisition involving the Corporation or any of its
Affiliates and another corporation or other entity, as a result of which the
holders of Shares prior to the completion of the transaction hold less than 50%
of the outstanding Voting Securities of the successor corporation after
completion of the transaction;
	 
	 	(ii)	 	the sale, lease, exchange or other disposition, in a single
transaction or a series of related transactions, of assets, rights or
properties of the

 

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	 	 	 	Corporation and/or any of its subsidiaries which have an aggregate book
value greater than 60% of the book value of the assets, rights and
properties of the Corporation and its subsidiaries on a consolidated basis
to any other person or entity, other than a disposition to a wholly-owned
subsidiary of the Corporation in the course of a reorganization of the
assets of the Corporation and its subsidiaries;
	 
	 	(iii)	 	a resolution is adopted to wind-up, dissolve or liquidate the
Corporation;
	 
	 	(iv)	 	any person, entity or group of persons or entities acting
jointly or in concert (an “Acquiror”) acquires, or acquires control (including,
without limitation, the right to vote or direct the voting) of, Voting
Securities of the Corporation which, when added to the Voting Securities owned
of record or beneficially by the Acquiror or which the Acquiror has the right
to vote or in respect of which the Acquiror has the right to direct the voting,
would entitle the Acquiror and/or associates and/or affiliates of the Acquiror
(as such terms are defined in the Act) to cast or to direct the casting of 50%
or more of the votes attached to all of the Corporation’s outstanding Voting
Securities which may be cast to elect directors of the Corporation or the
successor corporation (regardless of whether a meeting has been called to elect
directors);
	 
	 	(v)	 	as a result of or in connection with (A) a contested election
of directors, or (B) a consolidation, merger, amalgamation, arrangement or
other reorganization or acquisition involving the Corporation or any of its
Affiliates and another corporation or other entity, the nominees named in the
most recent management information circular of the Corporation for election to
the Board shall not constitute a majority of the Board;
	 
	 	(vi)	 	any person or entity or a group of persons or entities acting
jointly or in concert with each other as contemplated by Section 13(d)(3) of
the 1934 Act, acquires beneficial ownership, as defined in Rules 13d-3 and
13d-5 under the 1934 Act, of more than 50% of the outstanding Voting Securities
of the Corporation (based upon voting power); or
	 
	 	(vii)	 	the Board adopts a resolution to the effect that a Change of
Control as defined herein has occurred or is imminent.

For the purposes of the foregoing, “Voting Securities” means Shares and any other shares
entitled to vote for the election of directors and shall include any securities, whether or
not issued by the Corporation, which are not shares entitled to vote for the election of
directors but are convertible into or exchangeable for shares which are entitled to vote for
the election of directors including any options or rights to purchase such shares or
securities.

     (f) “Committee” means the Compensation Committee of the Board or such other Committee of the
Board as may be so mandated by the Board.

     (g) “Consultant” means a person that (i) is engaged to provide services to the Corporation or
a Related Entity, other than services provided in relation to a distribution, (ii) provides the
services under a written contract with the Corporation or a Related Entity and (iii)

 

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spends or will spend a significant amount of time and attention on the affairs and business of the
Corporation or a Related Entity.

     (h) “Corporation” means North American Energy Partners Inc., the corporation resulting from
the amalgamation of NACG Holdings Inc., NACG Preferred Corp. and North American Energy Partners
Inc.

     (i) “Director” means an individual elected or appointed to the Board by the shareholders of
the Corporation or by the Board under applicable corporate law who is serving on the Board on the
date the Plan is adopted by the Board or is elected or appointed to the Board after such date.

     (j) “Holder” means any employee, officer, Director, or Consultant of the Corporation or any
Related Entity granted an Award.

     (k) “In the Money Value of the Option” means the amount, stated in Canadian dollars, by which
the Market Price per Share for the Pricing Date exceeds the Option Price per Share, multiplied by
the number of Shares related to the applicable Options.

     (l) “Insider” means an insider as defined in the Securities Act (Alberta), and also includes
associates and affiliates of the insider.

     (m) “Lock-Up Period” means the period specified in the lock-up agreements entered into by
certain Holders who are officers, directors or employees of the Corporation in connection with the
Corporation’s initial public offering.

     (n) “Market Price” means the volume weighted average trading price of the Shares on the TSX or
the New York Stock Exchange, (to be determined by where the majority of the trading volume and
value of the Shares occurs), calculated by dividing the total value by the total volume of Shares
traded for the five trading days immediately prior to the day on which the Market Price is to be
determined; provided however that if the Shares have not traded for an extended period of time, the
Market Price will be the fair market value of the Shares, as determined by the Board; provided
further that the Market Price shall be at all times expressed in Canadian dollars and any U.S.
dollar Market Price determinations shall be converted to Canadian dollars at the rate published by
the Bank of Canada on the day immediately prior to the day on which the Market Price is to be
determined.

     (o) “Option” means an option to purchase Shares of the Corporation granted pursuant to the
terms hereof.

     (p) “Option Agreement” means a written agreement between the Corporation and a Holder with
respect to an Option.

     (q) “Option Price” means the price at which a Share may be purchased upon exercise of an
Option.

     (r) “Outstanding Issue” means the number of Shares outstanding on a non-diluted basis
immediately prior to the proposed Option issuance.

     (s) “Plan” means the North American Energy Partners Inc. Amended and Restated 2004 Share
Option Plan, as amended from time to time.

 

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     (t) “Pricing Date” means the date of exercise of an Option (or if the Shares do not trade on
the TSX or the New York Stock Exchange on such exercise date, the next date on which the Shares
trade) provided that notice of the exercise of the Option is received by the secretary of the
Corporation on or before 9:30 a.m. (Toronto time) on the exercise date; if the notice of exercise
is received by the Secretary of the Corporation after 9:30 a.m. (Toronto time) on the exercise
date, the Pricing Date shall be the next date upon which the Shares trade on the TSX or the New
York Stock Exchange.

     (u) “Related Entity” means a person which is a related entity of the Corporation as defined in
Section 2.22 of National Instrument 45-106 — Prospectus and Registration Exemptions, as adopted by
the Alberta Securities Commission.

     (v) “Retirement” in respect of a Holder means the Holder ceasing to be an employee, officer or
Director of the Corporation or a Related Entity after attaining a stipulated age in accordance with
the Corporation’s normal retirement policy or earlier with the Corporation’s consent.

     (w) “Retirement Date” means the date that a Holder ceases to be an employee, officer or
Director of the Corporation or a Related Entity due to the Retirement of the Holder.

     (x) “Settlement Shares” means the number of Shares obtained by dividing the In the Money Value
of the Options which the Corporation has exchanged for a right to receive Settlement Shares by the
Market Price of the Shares on the Pricing Date.

     (y) “Shares” means the common shares of the Corporation.

     (z) “Sponsor Group” means Sterling Group, L.P., Genstar Capital, L.P., Perry Strategic Capital
Inc., Stephens Group Inc., or any of their Affiliates.

     (aa) “Termination” means: (i) in the case of an employee, the termination of the employment of
the employee with or without cause by the Corporation or a Related Entity or cessation of
employment of the employee with the Corporation or a Related Entity as a result of resignation or
otherwise other than the Retirement of the employee; (ii) in the case of an officer or a Director,
the removal of or failure to re-elect or re-appoint the individual as an officer or Director of the
Corporation or a Related Entity (other than through the Retirement of an officer); and (iii) in the
case of a Consultant, the termination of the services of a Consultant by the Corporation or a
Related Entity.

     (bb) “Termination Date” means the date of the Holder’s last day actively at work for the
Corporation or a Related Entity, regardless of the reason for cessation of employment.

     (cc) “TSX” means the Toronto Stock Exchange.

III.      EFFECTIVE DATE AND DURATION OF THE PLAN

     The Plan, as amended and restated, shall be effective upon the closing of the Corporation’s
initial public offering.

 

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IV.      ADMINISTRATION

     (a) Committee. The Plan shall be administered by the Committee.

     (b) Powers. Subject to the provisions of the Plan, the Committee shall have the sole
authority, in its discretion, to recommend to the Board for approval which persons shall be granted
Options, the time or times when such Award shall be made and the number of Shares which may be
issued under each Option. In making such determinations, the Committee may take into account the
nature of the services rendered by such persons, their present and potential contributions to the
Corporation’s success and such other factors as the Committee in its discretion shall deem
relevant.

     (c) Additional Powers. The Committee shall have only such additional powers as are
delegated to it by the other provisions of the Plan or otherwise delegated to it by the Board.
Subject to the express provisions of the Plan, the Committee is authorized to construe the Plan and
the respective agreements executed thereunder, to prescribe such rules and regulations relating to
the Plan as it may deem advisable to carry out the Plan, and to determine the terms, restrictions
and provisions of each Award, and to make all other determinations necessary or advisable for
administering the Plan. The Committee may correct any defect or supply any omission or reconcile
any inconsistency in any agreement relating to an Award in the manner and to the extent it shall
deem expedient to carry it into effect. The determinations of the Committee on the matters
referred to in this Article IV shall be subject to the approval of the Board.

     (d) Compliance with Legislation. The Board may postpone or adjust any exercise of any
Option or the issue of any Shares pursuant to this Plan as the Board in its discretion may deem
necessary in order to permit the Corporation to effect or maintain registration of this Plan or the
Shares issuable pursuant thereto under the securities laws of any applicable jurisdiction, or to
determine that the Shares and this Plan are exempt from such registration or to determine that the
Shares issuable pursuant to this Plan may be issued in reliance upon applicable prospectus and
registration exemptions. The Corporation is not obligated by any provision of this Plan or any
grant hereunder to sell or issue Shares in violation of any applicable law. In addition, if the
Shares are listed on a stock exchange, the Corporation will have no obligation to issue any Shares
pursuant to this Plan unless the Shares to be issued have been duly listed, upon official notice of
issuance, on a stock exchange on which the Shares are listed for trading.

V.      GRANT OF OPTIONS AND SHARES SUBJECT TO THE PLAN

     (a) Option Grant and Award Limits. The Committee may from time to time grant Options
to one or more persons determined by it to be eligible for participation in the Plan in accordance
with the provisions of Article VI. In no event shall the aggregate number of Shares that may be
issued from treasury under the Plan exceed 10% of the Outstanding Issue. Subject to paragraphs
VII(d) and VII(e), Shares shall be deemed to have been issued under the Plan only to the extent
actually issued and delivered pursuant to an Option. To the extent that an Option lapses or the
rights of its Holder terminate, any Shares subject to such Option shall again be available for the
grant of an Award.

     (b) Option Grants to Insiders. The maximum number of Shares issuable to Insiders, at
any time, pursuant to this Plan and any other security based compensation arrangements of the
Corporation is 10% of the Outstanding Issue. The maximum number of Shares issuable to

 

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Insiders, within any one year period, pursuant to this Plan and any other security based
compensation arrangements of the Corporation is 10% of the Outstanding Issue.

     (c) Other Terms and Conditions. At the time of an Award, the Committee may, in its
sole discretion, prescribe additional terms, conditions or restrictions relating to the Award,
including, but not limited to rules pertaining to termination of services or employment (by
retirement, disability, death or otherwise) of a Holder prior to the expiration of such Award.
Such additional terms, conditions or restrictions shall be set forth in the Option Agreement made
in conjunction with the Award. Such Award agreements may also include, without limitation,
provisions relating to (i) vesting of Options, subject to the provisions hereof accelerating
vesting on a Change of Control, (ii) tax matters (including provisions covering applicable income
tax and other withholding requirements), and (iii) any other matters not inconsistent with the
terms and provisions of this Plan, that the Committee shall in its sole discretion determine. The
terms and conditions of the respective Option Agreements need not be identical.

     (d) Period of Award. The term of each Option shall be as specified by the Committee,
provided that the expiry of each Option shall be the later of a fixed expiration date (the “Fixed
Expiry Date”) or, in the event that the Fixed Expiry Date falls within, or immediately after, a
blackout period self imposed by the Corporation or a Lock-Up Period to which the Holder, in either
case, is subject, five business days after the end date of the blackout period or the Lock-Up
Period, as the case may be. No Option term shall exceed ten years from the date of the grant,
unless otherwise authorized by the Committee or the Board.

     (e) Limitation on Exercise of Awards. Any Option shall be exercisable in whole or in
such installments and at such times as determined by the Committee.

VI.      ELIGIBILITY

     (a) Eligibility for Awards. Awards may be granted, subject to applicable law, only to
persons who, at the time of grant, are employees, officers, Directors or Consultants of the
Corporation or any Related Entity. For greater certainty, an Award may be granted on more than one
occasion to the same person or entity.

VII.      SHARE OPTIONS

     (a) Granting of Options. The Committee shall be entitled to grant Options to purchase
Shares to persons determined to be eligible to participate in the Plan in accordance with the
provisions of Article VI.

     (b) Option Agreement. Each Option shall be evidenced by an Option Agreement in such
form and containing such provisions not inconsistent with the provisions of the Plan as the
Committee from time to time shall approve. Each Option Agreement shall specify the time or times
during which the Option may be exercised and shall specify the effect of termination of services or
employment on the exercisability of the Option. Such Option Agreement may also include, without
limitation, provisions relating to (i) vesting of Options, subject to the provisions hereof
accelerating such vesting on a Change of Control, (ii) tax matters (including provisions
permitting the withholding of a portion of the Holder’s cash remuneration by the Corporation or any
Affiliate to satisfy federal, provincial or state income tax or other withholding), and (iii) any

 

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other matters not inconsistent with the terms and provisions of this Plan that the Committee shall
in its sole discretion determine. The terms and conditions of the respective Option Agreements
need not be identical.

     (c) Option Price and Payment. The price at which a Share may be purchased upon
exercise of an Option shall be determined by the Committee at the time each Option is granted
provided that such price shall be stated in Canadian dollars and shall not be less than the Market
Price at such time. The Option or portion thereof may be exercised by delivery of an irrevocable
notice of exercise to the Corporation. Unless the Holder elects the Cashless Exercise Alternative,
or the Corporation exercises its discretion to issue Settlement Shares, the purchase price of the
Shares for which an Option or portion thereof is exercised shall be paid in full in cash or by
certified cheque to the Corporation at the time of exercise in the manner prescribed by the
Committee.

     (d) Cashless Exercise Alternative. Each Option shall include a Cashless Exercise
Alternative. A “Cashless Exercise Alternative” shall provide the Holder (or in the event of the
death of the Holder, the Holder’s executors or personal representatives) with the right, on the
exercise of a vested Option in accordance with the terms of the Option, to elect in the Holder’s
sole discretion to dispose of the Option to the Corporation and to receive the In the Money Value
of the Option in lieu of purchasing the number of Shares then purchasable under the Option. If the
Holder elects the Cashless Exercise Alternative, the Holder (or in the event of the death of the
Holder, the Holder’s executors or personal representatives) shall be entitled to payment of the In
the Money Value of the Option exercised (less applicable statutory withholdings) as of the Pricing
Date, provided that the Corporation may, at its sole option, delay the date of such payment to a
date that is not later than 90 days after the Pricing Date, without payment of interest. On the
exercise of Options pursuant to the Cashless Exercise Alternative, the number of Shares available
for grant under the Plan shall be reduced by the number of Shares subject to such exercised Option
and such Shares shall not be again available for the grant of an Award.

     (e) Stock Settlement Option. On the exercise of a vested Option by a Holder, and
notwithstanding a Holder’s exercise of the Cashless Exercise Alternative, the Corporation may
elect, at its sole discretion, to have such Option exchanged for a right of the Holder to receive
Settlement Shares. The Option so exchanged shall be cancelled and the Corporation shall issue the
Settlement Shares. The number of Shares available for grant under the Plan shall be reduced by the
number of Settlement Shares issued, and a number of Shares equal to the difference between the
number of Shares under the Option exchanged and the number of Settlement Shares issued shall be
again available for the grant of an Award.

     (f) Shareholder Rights and Privileges. The Holder shall be entitled to all the
privileges and rights of a shareholder only with respect to such Shares as have been purchased
under the Option or such Settlement Shares as have been issued on an exercise of the Option and for
which certificates of Shares have been registered in the Holder’s name.

     (g) Termination, Retirement or Death.

	 	(i)	 	In the event of the Termination or Retirement of a Holder, each
Option held by the Holder will cease to be exercisable 30 days after the
Termination Date or Retirement Date, as the case may be, or such longer period
as determined by the Committee, or as may otherwise be provided in the Holder’s
Option Agreement. For greater certainty, such

 

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	 	 	 	determination of a longer period may be made at, or at any time subsequent
to, the date of grant of the Options, provided that no Option shall remain
outstanding for any period which exceeds the expiry date of such Option. In
the event that the date upon which each Option held by the Holder ceases to
be exercisable in accordance with the provisions of this subsection (i)
falls within, or immediately after, a blackout period self imposed by the
Corporation or a Lock-Up Period to which the Holder, in either case, is
subject, such date shall be automatically extended until the date which is
five business days after the end date of the blackout period or the Lock-Up
Period, as the case may be. The Committee may delegate authority to the
Chief Executive Officer, the President and/or the Chief Financial Officer of
the Corporation to make any determination with respect to the expiry or
termination date of Options held by any departing Holder. If any portion
of an Option has not vested on the Termination Date or Retirement Date, as
the case may be, the Holder may not, on or after the Termination Date or
Retirement Date, as the case may be, exercise such portion of the Option
which has not vested, provided that the Committee may determine at any time,
including for greater certainty at any time subsequent to the date of grant
of the Options, that such portion of the Option vests automatically or
pursuant to a vesting schedule determined by the Committee. The Committee
may delegate authority to the Chief Executive Officer, the President and/or
the Chief Financial Officer to make any determination with respect to
vesting of Options or any portion thereof held by any departing Holder.
Without limitation, and for greater certainty only, this subsection (i)
will apply regardless of whether the Holder was dismissed with or without
cause and regardless of whether the Holder received compensation in respect
of dismissal or was entitled to a period of notice of termination which
would otherwise have permitted a greater portion of the Option to vest.

	 	(ii)	 	If a Holder dies, the legal representatives of the Holder may
exercise the vested Options held by the Holder within a period of 30 days after
the date of the Holder’s death, or such longer period as determined by the
Committee, or as may otherwise be provided in the Holder’s Option Agreement.
For greater certainty, such determination may be made at, or at any time
subsequent to, the date of grant of the Options, provided that no Option shall
remain outstanding for any period which exceeds the expiry date of such Option.
In the event that the date upon which each Option held by the Holder ceases to
be exercisable in accordance with the provisions of this subsection (ii) falls
within, or immediately after, a blackout period self imposed by the Corporation
or a Lock-Up Period to which the legal representatives of the Holder, in either
case, are subject, such date shall be automatically extended until the date
which is five business days after the end date of the blackout period or the
Lock-Up Period, as the case may be. Options may be exercised only to the extent
the Options were by their terms vested and exercisable on the date of death.
The Committee may determine at any time, including for greater certainty at any
time subsequent to the date of grant of the Options, that all or a portion of
the Option vests automatically or pursuant to a vesting schedule determined by
the Committee. The Committee may delegate authority to the Chief Executive
Officer, the President and/or the Chief

 

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	 	 	 	Financial Officer to make any determination with respect to the expiry or
termination date of Options or vesting of Options or any portion thereof
held by the legal representatives of any deceased Holder. If the legal
representative of a Holder who has died exercises the Option of the Holder
in accordance with the terms of this Plan, the Corporation will have no
obligation to issue the Shares or pay any amount under the Cashless Exercise
Alternative until evidence satisfactory to the Corporation has been provided
by the legal representative that the legal representative is entitled to act
on behalf of the Holder to exercise the Options under this Plan.

VIII.      RECAPITALIZATION OR REORGANIZATION

     (a) If there is any change in the outstanding Shares by reason of a stock dividend or split,
recapitalization, consolidation, combination or exchange of shares, or other fundamental corporate
change, the Board will make, subject to any prior approval required of relevant stock exchanges or
other applicable regulatory authorities, if any, an appropriate substitution or adjustment in (i)
the exercise price of any unexercised Options under this Plan; (ii) the number or kind of shares or
other securities reserved for issuance pursuant to this Plan; and (iii) the number and kind of
shares subject to unexercised Options theretofore granted under this Plan; provided, however, that
no substitution or adjustment will obligate the Corporation to issue or sell fractional shares. In
the event of the reorganization of the Corporation or the amalgamation or consolidation of the
Corporation with another corporation, the Board may make such provision for the protection of the
rights of Holders as the Board in its discretion deems appropriate. The determination of the
Board, as to any adjustment or as to there being no need for adjustment, will be final and binding
on all parties.

     (b) In the event that there is a Change of Control, effective immediately prior to the Change
of Control, all Options outstanding shall immediately vest and shall be immediately exercisable.
Further, in the event of a Change of Control, prior to, or upon, the Change of Control becoming
effective, the Committee, in its discretion may determine a limited period of time of not less than
seven (7) days, (before or after such Change of Control) after which time all unexercised Options
and all rights of Holders thereunder shall terminate.

     (c) The existence of the Plan and the Awards granted hereunder shall not affect in any way the
right or power of the Board or the shareholders of the Corporation or any Affiliate to make or
authorize any adjustment, recapitalization, reorganization or other change in the Corporation’s
capital structure or its business, any amalgamation, merger or consolidation of the Corporation,
any issue of debt or equity securities ahead of or affecting Shares or the rights thereof, the
dissolution or liquidation of the Corporation or any sale, lease, exchange or other disposition of
all or any part of its assets or business or any other corporate act or proceeding. No Holder,
beneficiary or other person shall have any claim against the Corporation, an Affiliate, or the
Boards thereof, as a result of any such action.

     (d) Except as hereinbefore expressly provided, the issuance by the Corporation of shares of
any class or securities convertible into shares of any class, for cash, property, labour or
services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Corporation convertible into such shares or other
securities, and in any case whether or not for fair value, shall not affect, and no

 

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adjustment by reason thereof shall be made with respect to, the number of Shares subject to Awards
theretofore granted or the purchase price per share, if applicable.

IX.      AMENDMENT AND TERMINATION OF THE PLAN

     Subject to the requisite shareholder and regulatory approvals set forth under subparagraphs
(a) and (b) below, the Board may from time to time amend or revise the terms of the Plan or may
discontinue the Plan at any time provided however that no such right may, without the consent of
the Holder, in any manner adversely affect the Holder’s rights under any Option theretofore granted
under the Plan.

     (a) The Board may, subject to receipt of requisite shareholder and regulatory approval, make
the following amendments to the Plan:

	 	(i)	 	any amendment to the number of securities issuable under the
Plan, including an increase to a fixed maximum number of securities or a change
from a fixed maximum number of securities to a fixed maximum percentage. A
change to a fixed maximum percentage which was previously approved by
shareholders will not require additional shareholder approval;
	 
	 	(ii)	 	any change to the class of Holders eligible to receive Awards
which would have the potential of broadening or increasing Insider
participation;
	 
	 	(iii)	 	the addition of any form of financial assistance;
	 
	 	(iv)	 	any amendment to a financial assistance provision which is more
favourable to participants;
	 
	 	(v)	 	any addition of a cashless exercise feature, payable in cash or
securities, which does not provide for a full deduction of the number of
underlying securities from the Plan reserve;
	 
	 	(vi)	 	the addition of a deferred or restricted share unit or any
other provision which results in participants receiving securities while no
cash consideration is received by the Corporation; and
	 
	 	(vii)	 	any other amendments that may lead to significant or
unreasonable dilution in the Corporation’s outstanding securities or may
provide additional benefits to eligible participants, especially Insiders of
the Corporation, at the expense of the Corporation and its existing
shareholders.

     (b) The Board may, subject to receipt of requisite regulatory approval, where required, in its
sole discretion and without the approval of shareholders, make all other amendments to the Plan
that are not of the type contemplated in subparagraph (a) above including, without limitation:

	 	(i)	 	amendments of a “housekeeping” nature, including, without
limitation, amendments for the purpose of curing any ambiguity, error or
omission in

 

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	 	 	 	the Plan or to correct or supplement any provision of the Plan that is
inconsistent with any other provision of the Plan, or to comply with
applicable law or the requirements of any stock exchange on which the Shares
are listed;
	 
	 	(ii)	 	a change to the vesting provisions of an Option or the Plan;
	 
	 	(iii)	 	a change to the termination provisions of an Option or the
Plan which does not entail an extension beyond the original expiry date;
	 
	 	(iv)	 	a discontinuance of the Plan; and
	 
	 	(v)	 	the addition of provisions relating to phantom share units,
such as restricted share units and deferred share units, which result in
participants receiving cash payments, and the terms governing such features.

     (c) Notwithstanding the provisions of subparagraph (b) above, the Corporation shall
additionally obtain requisite shareholder approval in respect of amendments to the Plan that are
contemplated pursuant to subparagraph (b), to the extent such approval is required by any
applicable laws or regulations.

X.      MISCELLANEOUS

     (a) No Right to An Award. Neither the adoption of the Plan by the Corporation nor any
action of the Board or the Committee shall be deemed to give a Holder any right to be granted an
Award to purchase Shares except as may be evidenced by an Option Agreement, and then only to the
extent and on the terms and conditions expressly set forth therein.

     (b) No Employment Rights Conferred. Nothing contained in the Plan shall (i) confer
upon any Holder any right with respect to continuation of employment with the Corporation or any
Affiliates or (ii) interfere in any way with the right of the Corporation or any Affiliates to
terminate his or her employment at any time.

     (c) No Exemptions. The Corporation shall not be obligated to issue any Shares
pursuant to any Award granted under the Plan at any time when, in the opinion of legal counsel for
the Corporation, there is no exemption from the registration or prospectus requirements of such
laws, rules or regulations applicable to the issuance and sale of such shares, including securities
laws.

     (d) No Fractional Shares. No fractional shares shall be delivered and no cash in lieu
of fractional shares will be paid by the Corporation to a Holder.

     (e) Withholdings. The Corporation and any of its Affiliates shall have the right to
deduct in connection with all Awards any taxes or other amounts required by law to be withheld and
to require any payments required to enable it to satisfy its withholding obligations.

     (f) Restrictions on Transfer. An Award shall not be transferable otherwise than by
will or the laws of descent and distribution, and shall be exercisable during the Holder’s lifetime
only by such Holder or the Holder’s guardian or legal representative.

     (g) Governing Law. This Plan shall be construed in accordance with the laws of the
Province of Alberta and the federal laws of Canada applicable therein.

October •, 2006.exv4w3

 

EXHIBIT 4.3

North American Energy Partners Inc.

November [ ], 2006

[                              ]

(the “Advisor”)

[Address]

Ladies and Gentlemen:

     The Advisor has extensive experience in strategic planning, which experience would be of
assistance to the Company. The Advisor is party to a Voting and Corporate Governance Agreement
with the Company which provided the Advisor with certain board representation rights in the
Company. On the completion of the initial public offering of the Company’s shares (the “IPO”), the
Voting and Corporate Governance Agreement will be terminated and the parties hereto will enter into
this Agreement.

     In order to assist the Company in strategic planning, the Company would like to continue to
avail itself of the Advisor’s expertise and advice. The Advisor is willing to provide such
expertise and experience at no cost to the Company, as it is in their interest to do so in light of
the Advisor’s investment in the Company. In order to be able to obtain this assistance in a
meaningful way, the Company will:

	 	(a)	 	provide copies of all documents, reports, financial data and other information
regarding the Company and its subsidiaries as may be reasonably requested by the
Advisor;
	 
	 	(b)	 	permit the Advisor to consult with and advise the management of the Company and
its subsidiaries at such reasonable times on all matters relating to the operation of
the Company and its subsidiaries as may be requested by the Advisor;
	 
	 	(c)	 	permit the Advisor to discuss the Company’s and its subsidiaries’ affairs,
finances and accounts with the Company’s and its subsidiaries’ officers, directors and
outside accountants at such reasonable times as may be requested by the Advisor;
	 
	 	(d)	 	permit the Advisor to visit and inspect any of the Company’s and its
subsidiaries’ properties, facilities, documents, financial data and other books and
records, at such reasonable times as may be requested by the Advisor;
	 
	 	(e)	 	permit the Advisor, to the extent that a director of the Company is not related
to the Advisor, to designate and send a representative to attend all meetings of the
Company’s board of directors in a nonvoting observer capacity, provided that such right
is subject to security clearance requirements imposed by applicable governmental
authorities and to the ability of the Company to exclude such representative during
discussions relating to transactions or matters in which the Advisor has an interest;

 

 

 -2- 

	 	(f)	 	provide as soon as available and in any event within 60 days after the end of
each of the first three quarters of each fiscal year of the Company, consolidated
balance sheets of the Company and its subsidiaries as of the end of such period and
consolidated statements of income and cash flows of the Company and its subsidiaries
for the period then ended prepared in conformity with generally accepted accounting
principles in Canada applied on a consistent basis, except as otherwise noted therein,
and subject to the absence of footnote disclosures and to year-end adjustments;
provided that the filing of the Company’s quarterly and annual financial statements
with the Securities and Exchange Commission (the “SEC”) or the securities regulatory
authorities in the provinces and territories of Canada (the “CSA”) within the time
periods required by the rules and regulations of the SEC and the CSA, as applicable,
shall be deemed to satisfy such delivery requirements;
	 
	 	(g)	 	provide as soon as available and in any event within 120 days after the end of
each fiscal year of the Company, a consolidated balance sheet of the Company and its
subsidiaries as of the end of such year and consolidated statements of income and cash
flows of the Company and its subsidiaries for the year then ended prepared in
conformity with generally accepted accounting principles in Canada applied on a
consistent basis, except as otherwise noted therein, together with an auditor’s report
thereon of a firm of established national reputation; provided that the filing of the
Company’s quarterly and annual financial statements with the SEC or the CSA within the
time periods required by the rules and regulations of the SEC and the CSA, as
applicable, shall be deemed to satisfy such delivery requirements;
	 
	 	(h)	 	provide, to the extent the Company is required by law or pursuant to the terms
of any outstanding indebtedness of the Company to prepare such reports, any annual
reports, quarterly reports and other periodic reports pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 actually prepared by the Company as soon as
available; provided that the filing of the Company’s quarterly and annual financial
statements with the SEC or the CSA within the time periods required by the rules and
regulations of the SEC and the CSA, as applicable, shall be deemed to satisfy such
delivery requirements; and
	 
	 	(i)	 	provide all materials sent by the Company to its board of directors, other than
materials dealing with transactions in which the Advisor has an interest.

     The Advisor acknowledges that the provision by the Company of the material and access provided
for above may include the provision of or access to certain non-public information with respect to
the Company. As a condition to furnishing the Advisor with such information and any other
information (whether in oral or written form, electronically stored or otherwise) delivered to the
Advisor by the Company or on behalf of the Company by any of its affiliates, directors, officers,
employees, advisors, agents or representatives (such persons for the Company or the Advisor being
herein referred to collectively as “Representatives”) in connection with the provision of such
expertise and advice (such information, including any and all copies and other reproductions
thereof, being herein referred to as “Confidential Information”), the Advisor hereby agrees as
follows:

 

 

 -3- 

	 	(a)	 	The Advisor: (i) will use the Confidential Information solely for the purpose
of providing the Company with its expertise and advice to the Company; (ii) will keep
the Confidential Information strictly confidential and will not (except as required by
applicable law, regulation or legal process, and only after compliance with paragraph
(c) below), without the Company’s prior written consent, disclose in any manner
whatsoever any information contained in the Confidential Information or derived
therefrom. The Advisor agrees to be liable to the Company for any breach of this
Agreement by the Advisor or its Representatives.
	 
	 	(b)	 	The term “Confidential Information” does not include any information which (i)
at the time of disclosure or thereafter is generally known by the public (other than as
a direct or indirect result of its disclosure by the Advisor in breach of this
Agreement); or (ii) was or becomes available to the Advisor on a non-confidential basis
from a person to the Advisor’s knowledge not otherwise bound by a confidentiality
agreement with the Company or its Representatives or is not otherwise prohibited from
transmitting the information to the Advisor. As used in this Agreement, the term
“person” shall be broadly interpreted to include, without limitation, any corporation,
company, joint venture, partnership or individual.
	 
	 	(c)	 	In the event that the Advisor receives a request or is required to disclose all
or any part of the information contained in the Confidential Information pursuant to
the terms of a subpoena or order issued by a court of competent jurisdiction or a
federal, state, provincial, territorial, municipal or local governmental or regulatory
body or pursuant to a civil investigative demand or similar judicial process, the
Advisor agrees to (i) immediately notify the Company of the existence, terms and
circumstances surrounding such a request or requirement, (ii) consult with the Company
on the advisability of taking legally available steps to resist or narrow such request
or requirement, and (iii) if disclosure of such information is required, disclose any
such information which the Advisor is advised by legal counsel is legally required to
be disclosed and will exercise, at the sole expense of the Company, the Advisor’s
reasonable efforts to obtain a protective order or other reliable assurance that
confidential treatment will be accorded to all such information.
	 
	 	(d)	 	The Advisor acknowledges the prohibition under applicable securities and
criminal law against trading in securities of the Company with knowledge of material
undisclosed information.
	 
	 	(e)	 	The Advisor agrees to be bound by the Company’s policy on trading in
securities.

     If at any time the Advisor holds less than 10% of the common shares of the Company that it
originally acquired in November, 2003 (as such shares may be adjusted for share splits and
consolidations), the Company may terminate this letter agreement in its sole discretion.

     The Company acknowledges and agrees that the Advisor shall not incur any liability to the
Company as a result of providing or failing to provide any advice under this letter agreement.

 

 

 -4- 

     The Advisor’s signature below indicates our assent to the terms of this letter agreement as of
the date set forth above.

	 	 	 
	Very truly yours,
	 
	 	 
	North American Energy Partners Inc.
	 
	 	 
	By:
	 	 
	 

	 	 
	 

	 	Name:
	 

	 	Title:
	 
	 	 
	 
	 	 
	 

	 	 

 

 

 -5- 

Agreed to and accepted by:

[                              ]

	 	 	 
	By:
	 	 
	 

	 	 
	 

	 	Name:
	 

	 	Title:

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