Document:

exv10w11

Exhibit 10.11

URANERZ ENERGY CORPORATION

2005 NONQUALIFIED STOCK OPTION PLAN

ARTICLE I

Purpose of Plan

     This 2005 NONQUALIFIED STOCK OPTION PLAN (the “Plan”) of URANERZ ENERGY CORPORATION (the
“Company”) for persons employed or associated with the Company, including without limitation any
employee, director, general partner, officer, attorney, accountant, consultant or advisor, is
intended to advance the best interests of the Company by providing additional incentive to those
persons who have a substantial responsibility for its management, affairs, and growth by increasing
their proprietary interest in the success of the Company, thereby encouraging them to maintain
their relationships with the Company. Further, the availability and offering of Stock Options
under the Plan supports and increases the Company’s ability to attract, engage and retain
individuals of exceptional talent upon whom, in large measure, the sustained progress growth and
profitability of the Company for the shareholders depends.

ARTICLE II

Definitions

     For Plan purposes, except where the context might clearly indicate otherwise, the following
terms shall have the meanings set forth below:

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

     “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.

     “Committee” shall mean the Compensation Committee, or such other committee appointed by the
Board, which shall be designated by the Board to administer the Plan. The Company shall be
composed of two or more persons as from time to time are appointed to serve by the Board and may be
members of the Board or the entire Board.

     “Common Shares” shall mean the Company’s Common Shares $0.00001 par value per share, or, in
the event that the outstanding Common Shares are hereafter changed into or exchanged for different
shares or securities of the Company, such other shares or securities.

     “Company” shall mean URANERZ ENERGY CORPORATION, a Nevada corporation, and any parent or
subsidiary corporation of URANERZ ENERGY CORPORATION, as such terms are defined in Section 425(e)
and 425(f), respectively of the Code.

     “Market Price” shall mean the volume weighted average trading price of the Common Shares on
the Toronto Stock Exchange (“TSX”) or the American Stock Exchange (“AMEX”), whichever exchange has
the greater trading volume, for the five trading days immediately preceding the date of

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the grant. However, (a) if the Common Shares are not listed on the TSX or the AMEX, then the
“Market Price” shall be calculated by reference to the volume weighted average trading price of the
Common Shares for the five trading days immediately preceding the date of the grant on any other
stock exchange on which the Common Shares are listed (if more than one, then using the exchange on
which a majority of Common Shares are traded); or (b) if the Common Shares are suspended from
trading or have not traded on the TSX, AMEX or another stock exchange for an extended period of
time, the “Market Price” will be the fair market value of the Common Shares as determined by the
board of directors of the Company using good faith discretion.

     “Optionee” shall mean any person employed or associated with the affairs of the Company who
has been granted one or more Stock Options under the Plan.

     “Stock Option” or “NQSO” shall mean a stock option granted pursuant to the terms of the Plan.

     “Stock Option Agreement” shall mean the agreement between the Company and the Optionee under
which the Optionee may purchase Common Shares hereunder.

ARTICLE III

Administration of the Plan

	 	1.	 	The Committee shall administer the plan and accordingly, it shall have full
power to grant Stock Options, construe and interpret the Plan, establish rules and
regulations and perform all other acts, including the delegation of administrative
responsibilities, it believes reasonable and proper.
	 
	 	2.	 	The determination of those eligible to receive Stock Options, and the amount,
price, type and timing of each Stock Option and the terms and conditions of the
respective stock option agreements shall rest in the sole discretion of the Committee,
subject to the provisions of the Plan.
	 
	 	3.	 	The Committee may cancel any Stock Options awarded under the Plan if an
Optionee conducts himself in a manner which the Committee determines to be inimical to
the best interest of the Company and its shareholders as set forth more fully in
paragraph 8 of Article X of the Plan.
	 
	 	4.	 	The Board, or the Committee, may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or in any granted Stock Option, in the manner
and to the extent it shall deem necessary to carry it into effect.
	 
	 	5.	 	Any decision made, or action taken, by the Committee or the Board arising out
or in connection with the interpretation and administration of the Plan shall be final
and conclusive.
	 
	 	6.	 	Meetings of the Committee shall be held at such times and places as shall be
determined by the Committee. A majority of the members of the Committee shall
constitute a quorum for the transaction of business, and the vote of a majority of
those members

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	 	 	 	present at any meeting shall decide any question brought before that meeting. In
addition, the Company may take any action otherwise proper under the Plan by the
affirmative vote, taken without a meeting, of a majority of its members.
	 
	 	7.	 	No member of the Committee shall be liable for any act or omission of any other
member of the Committee or for any act or omission on his own part, including, but not
limited to, the exercise of any power or discretion given to him under the Plan except
those resulting form his own gross negligence or willful misconduct.
	 
	 	8.	 	The Company, through its management, shall supply full and timely information
to the Committee on all matters relating to the eligibility of Optionees, their duties
and performance, and current information on any Optionee’s death, retirement,
disability or other termination of association with the Company, and such other
pertinent information as the Committee may require. The Company shall furnish the
Committee with such clerical and other assistance as is necessary in the performance of
its duties hereunder.

ARTICLE IV

Shares Subject to the Plan

	 	1.	 	The total number of shares of the Company available for grants of Stock Options
under the Plan shall be 10,000,000 Common Shares, subject to adjustment as herein
provided, which shares may be either authorized but unissued or reacquired Common
Shares of the Company.
	 
	 	2.	 	If a Stock Option or portion thereof shall expire or terminate for any reason
without having been exercised in full, the unpurchased shares covered by such NQSO
shall be available for future grants of Stock Options.

ARTICLE V

Stock Option Terms and Conditions

	 	1.	 	Consistent with the Plan’s purpose, Stock Options may be granted to any person
who is performing or who has been engaged to perform services of special importance to
management in the operation, development and growth of the Company.
	 
	 	2.	 	Determination of the option price per share for any stock option issues
hereunder shall rest in the sole and unfettered discretion of the Committee.
Notwithstanding the foregoing, no option shall be issued with an option price per share
less than Market Price.
	 
	 	3.	 	All Stock Options granted under the Plan shall be evidenced by agreements which
shall be subject to applicable provisions of the Plan, and such other provisions as the
Committee may adopt, including the provisions set forth in paragraphs 2 through 11 of
this Article V.
	 
	 	4.	 	All Stock Options granted hereunder must be granted within ten years from the
date this

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	 	 	 	Plan is adopted.
	 
	 	5.	 	No Stock Option granted hereunder shall be exercisable after the expiration of
ten years from the date such NQSO is granted. The Committee, in its discretion, may
provide that an option shall be exercisable during such ten year period or during any
lesser period of time. The Committee may establish installment exercise terms for a
Stock Option such that the NQSO becomes fully exercisable in a series of cumulating
portions. If an Optionee shall not, in any given installment period, purchase all the
Common Shares which such Optionee is entitled to purchase within such installment
period, such Optionee’s right to purchase any Common Shares not purchased in such
installment period shall continue until the expiration or sooner termination of such
NQSO. The Committee may also accelerate the exercise of any NQSO.
	 
	 	6.	 	A Stock Option, or portion thereof, shall be exercised by deliver of (i) a
written notice of exercise to the Company specifying the number of Common Shares to be
purchased, and (ii) payment of the full price of such Common Shares, as fully set forth
in paragraph 7 of this Article V. No NQSO or installment thereof shall be reusable
except with respect to whole shares, and fractional share interests shall be
disregarded. Not less than 100 Common Shares may be purchased at one time unless the
number purchased is the total number at the time available for purchase under the NQSO.
Until the Common Shares represented by an exercised NQSO are issued to an Optionee, he
shall have none of the rights of a shareholder.
	 
	 	7.	 	The exercise price of a Stock Option, or portion thereof, may be paid:
	 
	 		 	A. In United States dollars, in cash or by cashier’s check, certified check, bank
draft or money order, payable to the order of the Company in an amount equal to the
option price; or,
	 
	 		 	B. At the discretion of the Committee, through the delivery of fully paid and
nonassessable Common Shares, with an aggregate fair market value (determined as the
average of the highest and lowest reported sales prices on the Common Shares as of
the date of exercise of the NQSO, as reported by such responsible reporting service
as the Committee may select, or if there were not transactions in the Common Shares
on such day, then the last preceding day on which transactions took place), as of the
date of the NQSO exercise equal to the option price, provided such tendered shares,
or any derivative security resulting in the issuance of Common Shares, have been
owned by he Optionee for at least 30 days prior to such exercise; or,
	 
	 		 	C. By a combination of both A and B above.
	 
	 	8.	 	The Committee shall determine acceptable methods for tendering Common Shares as
payment upon exercise of a Stock Option and may impose such limitations and
prohibitions on the use of Common Shares to exercise an NQSO as it deems appropriate.
	 
	 	9.	 	With the Optionee’s consent, the Committee may cancel any Stock Option issued
under

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	 	 	 	this Plan and issue a new NQSO to such Optionee.
	 
	 	10.	 	Except by will, the laws of descent and distribution, or with the written
consent of the Committee, no right or interest in any Stock Option granted under the
Plan shall be assignable or transferable, and no right or interest of any Optionee
shall be liable for, or subject to, any lien, obligation or liability of the Optionee.
Upon petition to, and thereafter with the written consent of the Committee, an Optionee
may assign or transfer all or a portion of the Optionee’s rights and interest in any
stock option granted hereunder. Stock Options shall be exercisable during the
Optionee’s lifetime only by the Optionee or assignees, or the duly appointed legal
representative of an incompetent Optionee, including following an assignment consented
to by the Committee herein.
	 
	 	11.	 	If the Committee determines that it is in the best interests of the Company and
its shareholders and consistent with the stated goals and purposes of this Plan, the
Committee (i) may at its sole discretion act to extend the term of any outstanding NQSO
or conduct a re-pricing of any outstanding NQSO if such re-pricing acts to the benefit
of the holder of the outstanding NQSO, or (ii) may with the consent of the holder of an
NQSO, conduct a re-pricing of any outstanding NQSO regardless of whether such
re-pricing acts to the benefit of the holder of the outstanding NQSO. Notwithstanding
the foregoing, no extension of the term of any outstanding NQSO will act to extend the
term for a period longer than ten years from the date of the original issuance and no
NQSO shall be issued with an option price per share less than Market Price on the date
of any re-pricing and all re-pricings shall be conducted in accordance with applicable
law. In exercising its power to re-price or extend the term of securities under this
Section, the Committee will not be required to seek the approval of the shareholders of
the Company.
	 
	 	12.	 	Any Optionee who disposes of Common Shares acquired on the exercise of a NQSO
by sale or exchange either (i) within two years after the date of the grant of the NQSO
under which the stock was acquired, or (ii) within one year after the acquisition of
such Shares, shall notify the Company of such disposition and of the amount realized
upon such disposition. The transfer of Common Shares may also be restricted by
applicable provisions of the Securities Act of 1933, as amended.

ARTICLE VI

Adjustments or Changes in Capitalization

	 	1.	 	In the event that the outstanding Common Shares of the Company are hereafter
changed into or exchanged for a different number of kinds of shares or other securities
of the Company by reason of merger, consolidation, other reorganization,
recapitalization, reclassification, combination of shares, stock split-up or stock
dividend:
	 
	 		 	A. Prompt, proportionate, equitable, lawful and adequate adjustment shall be made
of the aggregate number and kind of shares subject to Stock Options which may be
granted under the Plan, such that the Optionee shall have the right to purchase such
Common Shares as may be issued in exchange for the Common Shares purchasable on
exercise of the NQSO had such merger, consolidation, other reorganization,
recapitalization,

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	 	 	 	reclassification, combination of shares, stock split-up or stock dividend not taken
place;
	 
	 		 	B. Rights under unexercised Stock Options or portions thereof granted prior to any
such change, both as to the number or kind of shares and the exercise price per
share, shall be adjusted appropriately, provided that such adjustments shall be made
without change in the total exercise price applicable to the unexercised portion of
such NQSO’s but by an adjustment in the price for each share covered by such NQSO’s;
or,
	 
	 		 	C. Upon any dissolution or liquidation of the Company or any merger or combination
in which the Company is not a surviving corporation, each outstanding Stock Option
granted hereunder shall terminate, but the Optionee shall have the right, immediately
prior to such dissolution, liquidation, merger or combination, to exercise his NQSO
in whole or in part, to the extent that it shall not have been exercised, without
regard to any installment exercise provisions in such NQSO.
	 
	 	2.	 	The foregoing adjustment and the manner of application of the foregoing
provisions shall be determined solely by the Committee, whose determination as to what
adjustments shall be made and the extent thereof, shall be final, binding and
conclusive. No fractional Shares shall be issued under the Plan on account of any such
adjustments.

ARTICLE VII

Merger, Consolidation or Tender Offer

	 	1.	 	If the Company shall be a party to a binding agreement to any merger,
consolidation or reorganization or sale of substantially all the assets of the Company,
each outstanding Stock Option shall pertain and apply to the securities and/or property
which a shareholder of the number of Common Shares of the Company subject to the NQSO
would be entitled to receive pursuant to such merger, consolidation or reorganization
or sale of assets.
	 
	 	2.	 	In the event that:
	 
	 		 	A. Any person other than the Company shall acquire more than 20% of the Common
Shares of the Company through a tender offer, exchange offer or otherwise;
	 
	 		 	B. A change in the “control” of the Company occurs, as such term is defined in Rule
405 under the Securities Act of 1933;
	 
	 		 	C. There shall be a sale of all or substantially all of the assets of the Company;
any then outstanding Stock Option held by an Optionee, who is deemed by the Committee
to be a statutory officer (“insider”) for purposes of Section 16 of the Securities
Exchange Act of 1934 shall be entitled to receive, subject to any action by the
Committee revoking such an entitlement as provided for below, in lieu of exercise of
such Stock Option, to the extent that it is then exercisable, a cash payment in an
amount equal to the difference between the aggregate exercise price of such NQSO, or
portion thereof, and, (i) in the event of an offer or similar event, the final offer
price per share paid for Common Shares, or such lower price as the Committee may
determine to

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	 	 	 	conform an option to preserve its Stock Option status, times the number of Common
Shares covered by the NQSO or portion thereof, or (ii) in the case of an event
covered by B or C above, the aggregate fair market value of the Common Shares covered
by the Stock Option, as determined by the Committee at such time.
	 
	 	3.	 	Any payment which the Company is required to make pursuant to paragraph 2 of
this Article VII, shall be made within 15 business days, following the event which
results in the Optionee’s right to such payment. In the event of a tender offer in
which fewer than all the shares which are validity tendered in compliance with such
offer are purchased or exchanged, then only that portion of the shares covered by an
NQSO as results from multiplying such shares by a fraction, the numerator of which is
the number of Common Shares acquired purchase to the offer and the denominator of which
is the number of Common Shares tendered in compliance with such offer, shall be used to
determine the payment thereupon. To the extent that all or any portion of a Stock
Option shall be affected by this provision, all or such portion of the NQSO shall be
terminated.
	 
	 	4.	 	Notwithstanding paragraphs 1 and 3 of this Article VII, the Company may, by
unanimous vote and resolution, unilaterally revoke the benefits of the above
provisions; provided, however, that such vote is taken no later than ten business days
following public announcement of the intent of an offer of the change of control,
whichever occurs earlier.

ARTICLE VIII

Amendment and Termination of Plan

	 	1.	 	The Board may at any time, and from time to time, suspend or terminate the Plan
in whole or in part or amend it from time to time in such respects as the Board may
deem appropriate and in the best interest of the Company.
	 
	 	2.	 	No amendment, suspension or termination of this Plan shall, without the
Optionee’s consent, alter or impair any of the rights or obligations under any Stock
Option theretofore granted to him under the Plan.
	 
	 	3.	 	The Board may amend the Plan, subject to the limitations cited above, in such
manner as it deems necessary to permit the granting of Stock Options meeting the
requirements of future amendments or issued regulations, if any, to the Code.
	 
	 	4.	 	No NQSO may be granted during any suspension of the Plan or after termination
of the Plan.

ARTICLE IX

Government and Other Regulations

     The obligation of the Company to issue, transfer and deliver Common Shares for Stock Options
exercised under the Plan shall be subject to all applicable laws, regulations, rules, orders and
approval which shall then be in effect and required by the relevant stock exchanges on which the
Common

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Shares are traded and by government entities as set forth below or as the Committee in its sole
discretion shall deem necessary or advisable. Specifically, in connection with the Securities Act
of 1933, as amended, upon exercise of any Stock Option, the Company shall not be required to issue
Common Shares unless the Committee has received evidence satisfactory to it to the effect that the
Optionee will not transfer such shares except pursuant to a registration statement in effect under
such Act or unless an opinion of counsel satisfactory to the Company has been received by the
Company to the effect that such registration is not required. Any determination in this connection
by the Committee shall be final, binding and conclusive. The Company may, but shall in no event be
obligated to take any other affirmative action in order to cause the exercise of a Stock Option or
the issuance of Common Shares purchase thereto to comply with any law or regulation of any
government authority.

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ARTICLE X

Miscellaneous Provisions

	 	1.	 	No person shall have any claim or right to be granted a Stock Option under the
Plan, and the grant of an NQSO under the Plan shall not be construed as giving an
Optionee the right to be retained by the Company. Furthermore, the Company expressly
reserves the right at any time to terminate its relationship with an Optionee with or
without cause, free from any liability, or any claim under the Plan, except as provided
herein, in an option agreement, or in any agreement between the Company and the
Optionee.
	 
	 	2.	 	Any expenses of administering this Plan shall be borne by the Company.
	 
	 	3.	 	The payment received from Optionee from the exercise of Stock Options under the
Plan shall be used for the general corporate purposes of the Company.
	 
	 	4.	 	The place of administration of the Plan shall be in the State of Nevada, and
the validity, contraction, interpretation, administration and effect of the Plan and
its rules and regulations, and rights relating to the Plan, shall be determined solely
in accordance with the laws of the State of Nevada.
	 
	 	5.	 	Without amending the Plan, grants may be made to persons who are foreign
nationals or employed outside the United States, or both, on such terms and conditions,
consistent with the Plan’s purpose, different from those specified in the Plan as may,
in the judgment of the Committee, be necessary or desirable to create equitable
opportunities given differences in tax laws in other countries.
	 
	 	6.	 	In addition to such other rights of indemnification as they may have as members
of the Board or Committee, the members of the Committee shall be indemnified by the
Company against all costs and expenses reasonably incurred by them in connection with
any action, suite or proceeding to which they or any of them may be party by reason of
any action taken or failure to act under or in connection with the Plan or any Stock
Option granted thereunder, an against all amount paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by the
Company) or paid by them in satisfaction of a judgment in any such action, suit or
proceeding, except a judgment based upon a finding of bad faith; provided that upon the
institution of any such action, suit or proceeding a Committee member shall in writing,
give the Company notice thereof and an opportunity, at its own expense, to handle and
defend the same before such Committee member undertakes to handle and defend it on his
own behalf.
	 
	 	7.	 	Stock Options may be granted under this Plan form time to time, in substitution
for stock options held by employees of other corporations who are about to become
employees of the Company as the result of a merger or consolidation of the employing
corporation with the Company or the acquisition by the Company of the assets of the
employing corporation or the acquisition by the Company of stock of the employing
corporation as a result of which it become a subsidiary of the Company. The terms and

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	 	 	 	conditions of such substitute stock options so granted my vary from the terms and
conditions set forth in this Plan to such extent as the Board of Directors of the
the Company at the time of grant may deem appropriate to conform, in whole or in
part, to the provisions of the stock options in substitution for which they are
granted, but no such variations shall be such as to affect the status of any such
substitute stock options as a stock option under Section 422A of the Code.
	 
	 	8.	 	Notwithstanding anything to the contrary in the Plan, if the Committee finds by
a majority vote, after full consideration of the facts presented on behalf of both the
Company the Optionee, that the Optionee has been engaged in fraud, embezzlement, theft,
commission of a felony or proven dishonesty in the course of his association with the
Company or any subsidiary corporation which damaged the Company or any subsidiary
corporation, or for disclosing trade secrets of the Company or any subsidiary
corporation, the Optionee shall forfeit all unexercised Stock Options and all exercised
NQSO’s under which the Company has not yet delivered the certificates and which have
been earlier granted the Optionee by the Committee. The decision of the Committee as
to the case of an Optionee’s discharge and the damage done to the Company shall be
final. No decision of the Committee, however, shall affect the finality of the
discharge of such Optionee by the Company or any subsidiary corporation in any manner.
Further, if Optionee voluntarily terminates employment with the Company, the Optionee
shall forfeit all unexercised stock options.

ARTICLE XI

Written Agreement

     Each Stock Option granted hereunder shall be embodied in a written Stock Option Agreement
which shall be subject to the terms and conditions prescribed above and shall be signed by the
Optionee and by the President or any Vice President of the Company, for and in the name and on
behalf of the Company. Such Stock Option Agreement shall contain such other provisions as the
Committee, in its discretion shall deem advisable.

ARTICLE XII

Effective Date

     This Plan shall become unconditionally effective as of the effective date of approval of the
Plan by the Board of Directors of the Company. No Stock Option may be granted later than ten (10)
years from the effective date of the Plan; provided, however, that the Plan and all outstanding
Stock Options shall remain in effect until such NQSO’s have expired or until such options are
cancelled.

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	Number of Shares:                     

	 	Date of Grant:                     
	 	 

NONQUALIFIED STOCK OPTION AGREEMENT

     AGREEMENT made this                      day of                     , 200___, between
                                         (the “Optionee”), and URANERZ ENERGY CORPORATION, a Nevada corporation
(the “Company”).

     1. Grant of Option. The Company, pursuant to the provisions of the 2005 URANERZ ENERGY
CORPORATION Nonqualified Stock Option Plan (the “2005 Plan”), set forth as Attachment A hereto,
hereby grants to the Optionee, subject to the terms and conditions set forth or incorporated
herein, an Option and Purchase from the Company all or any part of an aggregate of                     
Common Shares, as such Common Shares are now constituted, at the purchase price of $                    
per share. The provisions of the 2005 Plan governing the terms and conditions of the Option
granted hereby are incorporated in full herein by reference.

     2. Exercise. The Option evidenced hereby shall be exercisable in whole or in part (but only
in multiples of 100 Shares unless such exercise is as to the remaining balance of this Option) on
or after                     , 20___and on or before                     , 20___, provided that the
cumulative number of Common Shares as to which this Option may be exercised (except as provided in
paragraph 1 of Article VI of this 2005 Plan) shall not exceed the following amounts:

	 	 	 
	Cumulative Number of Shares	 	Prior to Date (Not Inclusive of)
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

The Option evidenced hereby shall be exercisable by the deliver to and receipt by the Company of
(i) a written notice of election to exercise, in the form set forth in Attachment B hereto,
specifying the number of shares to be purchased; (ii) accompanied by payment of the full purchase
price thereof in case or certified check payable to the order of the Company, or by fully-paid and
nonassessable Common Shares of the Company properly endorsed over to the Company, or by a
combination thereof; and, (iii) by return of this Stock Option Agreement for endorsement of
exercise by the Company on Schedule I hereof. In the event fully paid and nonassessable Common
Shares are submitted as whole or partial payment for Shares to be purchased hereunder, such Common
Shares will be valued at their Fair Market Value (as defined in the 2005 Plan) on the date such
Shares are received by the Company and applied to payment of the exercise price.

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	 	3.	 	Transferability. The Option evidenced hereby is NOT assignable or transferable
by the Optionee other than by the Optionee’s will, by the laws of descent and
distribution, as provided in paragraph 9 of Article V of the 2005 Plan. The Option
shall be exercisable only by the Optionee during his lifetime.

	 	 	 	 	 	 	 
	 	 	URANERZ ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 

Glenn Catchpole, President
	 	 

	 	 	 
	ATTEST:
	 	 
	 
	 
	 	 
	 

Secretary

	 	 

Optionee hereby acknowledges receipt of a copy of the 2005 Plan, attached hereto and accepts this
Option subject to each and every term and provision of such Plan. Optionee hereby agrees to accept
as binding, conclusive and final, all decisions or interpretations of the Compensation Committee
of the Board of Directors administering the 2005 Plan on any questions arising under such Plan.
Optionee recognizes that if Optionee’s employment with the Company or any subsidiary thereof shall
be terminated with cause, or by the Optionee, all of the Optionee’s rights hereunder shall
thereupon terminate.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	 

	 	 

Optionee
	 	 
	 
	 
	 	 	 	 
	 

	 	 

Type or Print Name
	 	 
	 
	 
	 	 	 	 
	 

	 	 

Address
	 	 
	 
	 	 	 	 
	 
	 

	 	 

Social Security No.
	 	 

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Attachment B

Date:

Secretary,

URANERZ ENERGY CORPORATION

Suite 1410- 800 West Pender Street

Vancouver, British Columbia

Canada V6C 2V6

Dear Sir:

     In accordance with paragraph 2 of the Nonqualified Stock Option Agreement evidencing the
Option granted to me on                      under the 2005 URANERZ ENERGY CORPORATION
Nonqualified Stock Option Plan, I hereby elect to exercise this Option to the extent of
                     Common Shares.

     Enclosed are (i) Certificate(s) No.(s)                      representing fully-paid common
shares of URANERZ ENERGY CORPORATION endorsed to the Company with signature guaranteed, and/or a
certified check payable to the order of URANERZ ENERGY CORPORATION in the amount of
$                     as the balance of the purchase price of $                     for the Shares which I
have elected to purchase and (ii) the original Stock Option Agreement for endorsement by the
Company as to exercise on Schedule I thereof. I acknowledge that the Common Shares (if any)
submitted as part payment for the exercise price due hereunder will be valued by the Company at
their Fair Market Value (as defined in the 2005 Plan) on the date this Option exercise is effected
by the Company. In the event I hereafter sell any Common Shares issued pursuant to this option
exercise within one year from the date of exercise or within two years after the date of grant of
this Option, I agree to notify the Company promptly of the amount of taxable compensation realized
by me by reason of such sale for federal income tax purposes.

     When the certificate for Common Shares which I have elected to purchase has been issued,
please deliver it to me, along with my endorsed Stock Option Agreement in the event there remains
an unexercised balance of Shares under the Option, at the following address:

Include Optionee’s address here.

	 	 	 	 	 
	 
	 

	 	 

Signature of Optionee
	 	 
	 
	 	 	 	 
	 
	 

	 	 

Type or Print Name
	 	 

13exv10w20

Exhibit 10.20

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”) is entered into effective as of March 23, 2009
(the “Effective Date”), by and between The Shaw Group Inc., a Louisiana corporation
(collectively with its affiliates and subsidiaries hereinafter referred to as, the
“Company”), and Frederick W. Buckman (“Employee”). The Company and Employee may
hereinafter be referred to, individually, as a “Party” and, collectively, as the
“Parties”.

     WHEREAS, the Company and Employee desire to enter into an employment relationship.

     NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and
agreements contained herein, and for other valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the Parties agree as follows:

     1. Employment. The Company hereby employs Employee, and Employee hereby accepts
employment by the Company, on the terms and conditions set forth in this Agreement.

     2. Term of Employment. Subject to the provisions for earlier termination provided in
this Agreement, the term of this Agreement (the “Term”) shall be two years commencing on
the Effective Date and shall be automatically renewed on each day following the Effective Date so
that on any given day the unexpired portion of the Term shall be two years. Notwithstanding the
foregoing provision, at any time after the Effective Date, the Company or Employee may give written
notice to the other Party that the Term shall not be further renewed from and after a subsequent
date specified in such notice (the “fixed term date”), in which event

 

 

the Term shall become fixed, and this Agreement shall terminate on the second anniversary of
such fixed term date.

     3. Employee’s Duties.

          (a) During the Term, Employee shall serve as the President of the Power Group of the Company,
or such other similar position(s) as the Parties may mutually agree, with such duties and
responsibilities as may from time to time be assigned to him by the Board of Directors of the
Company (the “Board”) or the Chief Executive Officer of the Company, provided that such
duties and responsibilities are comparable to the customary duties and responsibilities of such
position(s).

          (b) Employee agrees to devote Employee’s full attention and time during normal business hours
to the business and affairs of the Company and to use reasonable best efforts to perform faithfully
and efficiently Employee’s duties and responsibilities. Employee shall not, either directly or
indirectly, enter into any business or employment with or for any Person (defined below) other than
the Company during the Term; provided, however, that Employee shall not be
prohibited from making financial investments in any other company or business or from serving on
the board of directors of any other company, subject in each case to the provisions set forth in
the Nonsolicitation and Noncompete Agreement (defined below) and the Company’s Code of Conduct or
similar guidelines of which Employee is notified in writing. For the purposes of this Agreement,
the term “Person” shall mean any individual, corporation, limited or general partnership,
limited liability company, joint venture, association, trust or other entity or organization,
whether or not a legal entity. Employee shall at all times observe

 

 

and comply with all lawful directions and instructions of the Board of which Employee is
notified in writing.

     4. Compensation.

          (a) Base Compensation. For services rendered by Employee under this Agreement, the
Company shall pay to Employee a base salary (“Base Compensation”) of $700,000 per annum,
payable in accordance with the Company’s customary pay periods and subject to tax and other
customary withholdings. Employee’s Base Compensation will be reviewed by the Board on an annual
basis as of the close of each fiscal year of the Company and may be increased as the Board may deem
appropriate. In the event the Board deems it appropriate to increase Employee’s Base Compensation,
that increased amount shall thereafter be the Base Compensation for the purposes of this Agreement.
Employee’s Base Compensation, as increased from time to time, may not be decreased unless agreed
to by Employee in writing. Nothing contained herein shall prevent the Board from paying additional
compensation to Employee in the form of bonuses or otherwise during the Term.

          (b) Annual Bonus. During the Term, Employee will be eligible to participate in the
Company’s discretionary management incentive program as established by the Board (as the same may
be amended from time to time), with an annual performance bonus range of 0-200% of Employee’s bonus
target (the “Bonus Target”), which Bonus Target shall initially be an amount equal to 100%
of Employee’s Base Compensation. The Bonus Target may be adjusted annually as the Board may deem
appropriate based upon competitive peer company analysis. Annual bonus payments will be subject to
tax and other customary withholdings.

 

 

Employee’s annual bonus, if any, for the Company’s fiscal year ending August 31, 2009, shall
be pro rated.

          (c) Long Term Incentive Awards.

          (i) During the Term, Employee will be eligible to participate in the Company’s
discretionary Long Term Incentive (defined below) plan(s) as established by the Board (as
the same may be amended from time to time), subject to the terms and conditions of the
applicable plan(s). The overall target value of the annual Long Term Incentive grants to
Employee on the date of grant will be not less than $1,000,000.

          (ii) On the first business day of the month immediately following the Effective Date,
Employee will be granted Long Term Incentives with an aggregate value of $500,000, which
will be divided equally between stock options and restricted stock units. The actual
number of Long Term Incentives will be determined utilizing the closing price of the
Company’s stock on the date of grant. This grant of Long Term Incentives will vest in
annual installments of 25% each, with full vesting after four years.

          (iii) All Long Term Incentive awards are subject to shareholders’ approval of shares to
be allocated to the Company’s Long Term Incentive plan and are granted under the strict
purview of the Compensation Committee of the Board.

          (iv) The actual number of Long Term Incentives will be determined utilizing the
valuation methodology used for other similarly situated executive officers of the Company.

          (v) Notwithstanding any provision to the contrary in the plan(s) governing such Long
Term Incentives, in the event that this

 

 

Agreement is terminated by Employee pursuant to Section 7(a)(ii), (iv) or (v) or by the
Company pursuant to Section 7(a)(iii)(A) (other than for Misconduct) or (iii)(D), Employee
shall have not less than one year from the Date of Termination in which to exercise all Long
Term Incentives granted to Employee by the Company on or before the Date of Termination
(including any Long Term Incentives that become vested pursuant to Section 7);
provided that in no event shall such one year period extend the exercise period for
any Long Term Incentive awards beyond the date that is 10 years from the date of grant of
such Long Term Incentive awards.

     5. Additional Benefits. In addition to the compensation provided for in Section 4,
Employee shall be entitled to the following:

     (a) Business Expenses. The Company shall, in accordance with any rules and
policies that it may establish from time to time for its executive officers, reimburse
Employee for business expenses reasonably incurred in the performance of Employee’s duties.
It is understood that Employee is authorized to incur reasonable business expenses for
promoting the business of the Company, including reasonable expenditures for professional
memberships and licenses, travel, lodging, meals and client or business associate
entertainment. Requests for reimbursement for all business expenses must be accompanied by
appropriate documentation.

     (b) Vacation; Sick Days. Employee shall be entitled to four weeks of vacation
per year and five sick days per year, without any loss of compensation or benefits. Upon
termination of employment of Employee for whatever reason, Employee shall be paid for any
unused vacation time

 

 

based on Employee’s Base Compensation as in effect immediately prior to the Date of
Termination.

     (c) General Benefits. Employee shall be entitled to participate in the various
Employee benefit plans or programs provided to employees of the Company in general,
including, but not limited to, health, dental, disability, accident and life insurance plans
and 401k plans. Benefits are subject to the eligibility requirements with respect to each
of such benefit plans or programs and such other benefits or perquisites as may be approved
by the Board during the Term. Nothing in this Section 5(c) shall be deemed to prohibit the
Company from making any changes in any of the plans or programs described in this Section
5(c), provided the change similarly affects all executive officers of the Company that are
similarly situated.

     (d) Flexible Perquisites; Use of Corporate Aircraft. Employee shall be
entitled to participate in the Company’s flexible perquisites plan, which provides an amount
equal to 4% of Employee’s Base Compensation in each calendar year in lieu of customary
perquisite benefits. Payments under the flexible perquisites plan will be made on a
calendar quarter basis and will be calculated based on Employee’s Base Compensation from the
previous calendar quarter, less any amounts deducted for approved personal use of the
Company’s corporate aircraft. Employee shall be permitted to use the Company’s corporate
aircraft for personal use subject to availability and approval of the CEO in accordance with
the Company’s aircraft policy. The cost to Employee for approved use of the Company’s
corporate aircraft is calculated based on then effective Internal Revenue Service tables.
Nothing

 

 

in this Section 5(d) shall be deemed to prohibit the Company from making any changes in
the flexible perquisites plan, provided the change similarly affects all executive officers
of the Company that are similarly situated.

     (e) Point of Origin; Relocation Expenses.

          (i) Employee’s point of origin (the “Point of Origin”) will be Portland,
Oregon, and Employee’s business assignment location will be the Power Group’s executive
offices in Charlotte, North Carolina (the “Business Location”). From the Effective
Date until the earliest to occur of (A) the date that is six months following the Effective
Date, (B) the date of permanent relocation of Employee to the Business Location and (C) the
Date of Termination, the Company will provide Employee, at the Company’s expense, housing in
the Company’s corporate apartment in the Business Location.

          (ii) The Company will provide relocation assistance to Employee in connection with
Employee’s permanent relocation from the Point of Origin to the Business Location in
accordance with the domestic relocation policies of the Company at the time such relocation
occurs. Employee acknowledges that such relocation assistance does not include the purchase
by the Company of Employee’s residence at the Point of Origin.

     (f) Country Club Membership. The Company will pay, on behalf of Employee, one
country club membership initiation fee. Employee shall be responsible for monthly dues,
expenses, assessments, etc., in connection with such membership.

     6. Confidentiality; Nonsolicitation and Noncompete.

 

 

          (a) Employee hereby acknowledges that the Company possesses certain Confidential Information
(defined below) that is peculiar to the businesses in which the Company is or may be engaged.
Employee hereby affirms that such Confidential Information is the exclusive property of the Company
and that the Company has proprietary interests in such Confidential information. For the purposes
of this Agreement, the term “Confidential Information” shall mean any and all information
of any nature and in any form that at the time or times concerned is not generally known to Persons
(other than the Company) that are engaged in businesses similar to that conducted or contemplated
by the Company (other than by the act or acts of an employee not authorized by the Company to
disclose such information), which may include, without limitation, the Company’s existing and
contemplated products and services; the Company’s purchasing, accounting, marketing and
merchandising methods or practices; the Company’s development data, theories of application and/or
methodologies; the Company’s customer/client contact and/or supplier information files; the
Company’s existing and contemplated policies and/or business strategies; any and all samples and/or
materials submitted to Employee by the Company; and any and all directly and indirectly related
records, documents, specifications, data and other information with respect thereto. Employee
further acknowledges by signing this Agreement that the Company has expended much time, cost and
difficulty in developing and maintaining the Company’s customers.

          (b) Employee shall (i) use the Confidential Information solely for the purpose of performing
Employee’s duties on behalf of the Company and for no other purpose whatsoever, (ii) not, directly
or indirectly, at any time during or after Employee’s employment by the Company, disclose
Confidential Information to any

 

 

other Person (except to the Company’s officers in connection with Employee’s duties on behalf
of the Company) or use or otherwise exploit Confidential Information to the detriment of the
Company, and (iii) not lecture on or publish articles with respect to Confidential Information
without prior written approval of the General Counsel of the Company. In the event of a breach or
threatened breach of the provisions of this Section 6(b), the Company shall be entitled, in
addition to any other remedies available to the Company, to an injunction restraining Employee from
disclosing such Confidential Information.

          (c) Upon termination of employment of Employee for whatever reason, Employee shall surrender
to the Company any and all documents, manuals, correspondence, reports, records and similar items
then or thereafter coming into the possession of Employee that contain any Confidential
Information; provided, however, that (i) the Company will provide Employee
reasonable access to such Confidential Information to the extent required by Employee in connection
with the defense of any cause of action, dispute, proceeding or investigation made or initiated
against Employee by any Person other than the Company related to the employment of Employee by the
Company or the performance by Employee of its duties in the course of such employment and (ii)
Employee may retain a copy of any agreement between Employee and the Company.

          (d) Employee agrees that, as part of the consideration for this Agreement and as an integral
part hereof, Employee has executed, delivered and agreed to be bound by the Nonsolicitation and
Noncompete Agreement attached hereto as Exhibit A, as well as any subsequent addenda
thereto.

     7. Termination.

 

 

          (a) This Agreement may be terminated prior to the expiration of the Term only under the terms
and conditions set forth below:

          (i) Resignation (other than for Good Reason). Employee may resign Employee’s
position at any time, including by reason of retirement, by providing written notice of
resignation to the Company. In the event of such resignation (except in the case of
resignation for Good Reason (defined in Section 7(a)(iv) below)), this Agreement shall
terminate on the Date of Termination (defined in Section 7(c) below), and Employee shall not
be entitled to further compensation pursuant to this Agreement other than the payment of any
Base Compensation and General Benefits (e.g., unused vacation, unreimbursed business
expenses, etc.) accrued and unpaid as of the Date of Termination and the retention of any
and all stock options, restricted shares or units or other similar awards granted to
Employee by the Company under any long term incentive plan(s) duly adopted by the Board
(“Long Term Incentives”) that have vested or become exercisable on or before the
Date of Termination in accordance with the plans governing such Long Term Incentives (which
Long Term Incentives remain subject to, and must thereafter be exercised in accordance with,
the plan(s) governing such Long Term Incentives).

          (ii) Death. If Employee’s employment is terminated due to Employee’s death,
(A) the Company shall pay to Employee’s surviving spouse or estate, subject to customary
withholdings, not later than 30 days after Employee’s death, (I) any Base Compensation and
General Benefits accrued and unpaid as of the date of Employee’s death, and (II) a lump sum
amount, in cash, equal to the cost for Employee’s surviving spouse or legal

 

 

representatives to obtain one year of paid group health and dental insurance benefits
covering Employee’s surviving spouse and dependents that are substantially similar to those
that Employee’s surviving spouse and dependents were receiving immediately prior to
Employee’s death, and (B) notwithstanding any provision to the contrary in the plan(s)
governing such Long Term Incentives, Employee, as of the date of Employee’s death, shall
become immediately and totally vested in any and all Long Term Incentives granted to
Employee by the Company prior to the Date of Termination that have not previously vested in
full. After all payments, benefits and vesting of Long Term Incentives under this Section
7(a)(ii) have been paid or performed, this Agreement shall terminate, and the Company shall
have no obligations to Employee or Employee’s surviving spouse, dependents or estate with
respect to this Agreement. This provision shall not be exclusive and shall be in addition
to death benefits payable by the Company or any insurer under any insurance plan or program
covering Employee.

          (iii) Discharge.

               (A) The Company may terminate Employee’s employment for any reason at any time
upon written notice delivered to Employee in accordance with Section 7(b).

               (B) In the event that Employee’s employment is terminated during the Term by
the Company for any reason other than Employee’s Misconduct or Disability (both as
defined below), the following shall occur:

 

 

                    (I) the Company shall pay to Employee, subject to tax and other
customary withholdings, not later than 15 days after the Date of
Termination, (x) any Base Compensation and General Benefits accrued and
unpaid as of the date of Employee’s death, (y) a lump sum amount, in cash,
equal to the sum of (1) the product of (a) Employee’s Base Compensation as
in effect immediately prior to the Date of Termination, multiplied
by (b) the remaining portion of the Term, plus (2) an amount
equal to Employee’s highest annual bonus actually paid by the Company during
the two year period immediately preceding the Date of Termination, and (z) a
lump amount, in cash, equal to the cost for Employee to obtain, for the
period commencing on the Date of Termination and ending on the earlier to
occur of (1) the date that is 18 months following the Date of Termination
and (2) the fixed term date (if any), life, disability, accident, dental and
health insurance benefits (“Welfare Benefits”) covering Employee
(and, as applicable, Employee’s spouse and dependents) that are
substantially similar to those that Employee (and Employee’s spouse and
dependents) were receiving immediately prior to the Date of Termination;
and

                    (II) notwithstanding any provision to the contrary in the plan(s)
governing such Long Term Incentives, Employee shall become immediately and
totally vested in any

 

 

and all Long Term Incentives granted to Employee by the Company prior
to the Date of Termination.

               (C) Notwithstanding anything to the contrary in this Agreement, in the event
that Employee is terminated because of Misconduct, the Company shall have no
obligations pursuant to this Agreement after the the Date of Termination other than
the payment of any Base Compensation and General Benefits accrued and unpaid through
the the Date of Termination. As used herein, “Misconduct” means:

                    (1) (A) any willful breach or habitual neglect of duty by Employee or
(B) Employee’s material and continued failure to substantially perform
Employee’s duties with the Company (other than any such failure resulting
from Employee’s incapacity due to a Disability or any such actual or
anticipated failure after the issuance of a Notice of Termination by
Employee for Good Reason) (I) in a professional manner and (II) in a manner
that is reasonably expected as appropriate for the position, in the case of
either (A) or (B), which breach, neglect or failure is not cured by Employee
within 30 days from receipt by Employee of written notice from the Company
that specifies the alleged breach, neglect or failure;

                    (2) the misappropriation or attempted misappropriation by Employee of a
material business opportunity of the Company, including attempting to secure

 

 

any personal profit in connection with entering into any transaction on
behalf of the Company;

                    (3) the misappropriation or attempted misappropriation by Employee of
any of the Company’s funds or property;

                    (4) an intentional violation by Employee of the Company’s Code of
Corporate Conduct or Fraud Policy; or

                    (5) (A) the commission by Employee of a felony offense or a misdemeanor
offense involving violent or dishonest behavior or (B) Employee engaging in
conduct involving fraud or dishonesty in connection with his duties with the
Company.

               (D) Disability. If Employee shall have been absent from the full-time
performance of Employee’s duties with the Company for 120 consecutive calendar days
as a result of Employee’s incapacity due to a Disability, Employee’s employment may
be terminated by the Company. For the purposes of this Agreement, a
“Disability” shall exist if::

                    (1) Employee is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months; or

                    (2) Employee is, by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected
to last for a

 

 

continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an
accident and health plan covering employees of the Company.

If Employee is terminated pursuant to this Section 7(a)(iii)(D), Employee shall not
be entitled to further compensation pursuant to this Agreement, except that (x) the
Company shall (1) not later than 15 days after the Date of Termination, pay to
Employee any Base Compensation and General Benefits accrued and unpaid as of the
date of the Date of Termination, (2) for the 12 month period beginning with the Date
of Termination, pay to Employee monthly the amount by which Employee’s monthly Base
Compensation as in effect immediately prior to the Date of Termination exceeds the
monthly benefit received by Employee pursuant to any disability insurance covering
Employee, and (3) not later than 15 days after the Date of Termination, pay to
Employee a lump amount, in cash, equal to the cost for Employee to obtain, for the
period commencing on the Date of Termination and ending on the earlier to occur of
(a) the date that is 18 months following the Date of Termination and (b) the fixed
term date (if any), health and dental insurance benefits covering Employee and
Employee’s spouse and dependents that are substantially similar to those that
Employee (and Employee’s spouse and dependents) was receiving immediately prior to
the Date of Termination; and (y) notwithstanding any provision to the contrary in
the plan(s) governing such Long Term Incentives, Employee shall become

 

 

immediately and totally vested in any and all Long Term Incentives granted to
Employee by Company prior to the Date of Termination that have not previously vested
in full.

          (iv) Resignation for Good Reason. Employee shall be entitled to terminate
Employee’s employment for Good Reason (as defined herein). If Employee terminates
employment for Good Reason, Employee shall be entitled to the compensation and benefits
provided in Section 7(a)(iii)(B). For the purposes of this Agreement, the term “Good
Reason” shall mean the occurrence of any of the following circumstances without
Employee’s express written consent:

               (A) any material diminution of Employee’s duties or responsibilities (other
than in connection with the termination of Employee for Misconduct or Disability in
accordance with the terms of this Agreement);

               (B) any material diminution of Employee’s Base Compensation;

               (C) the relocation of Employee’s office more than 50 miles from its location at
the commencement of this Agreement; or

               (D) any other material breach by the Company of its obligations under this
Agreement;

provided, however, Employee shall provide written notice (a “Good Reason
Notice”) to the Company of the initial existence of the condition causing the change in
terms or status no more than 90 days after the change in terms or status occurs, and the
Company shall have 30 days from receipt of the Good Reason Notice to resolve the issue
causing the change in terms or

 

 

status. If the Company resolves such issue, then Employee’s employment shall not be subject
to the Good Reason provisions of this Agreement as to such issue.

          (v) Resignation for Corporate Change. Employee shall be entitled to terminate
Employee’s employment for a Corporate Change (as defined herein) if Employee is not retained
in Employee’s current (or a comparable) position, but only if Employee gives notice of
Employee’s intent to terminate employment within 90 days following the effective date of
such Corporate Change (provided that, notwithstanding the foregoing, the Notice of
Termination may not be given later than February 13th of the year following the year in
which the Corporate Change occurs). If Employee terminates employment for a Corporate
Change, Employee shall be entitled to the compensation and benefits provided in Section
7(a)(iii)(B). For the purposes of this Agreement, the term “Corporate Change” means
a “change in ownership,” a “change in effective control,” or a “change in the ownership of
substantial assets” of the Company.

               (A) A “change in ownership” of the Company occurs on the date that any one
person, or more than one person acting as a group, acquires ownership of stock of
the Company that, together with stock held by such person or group, constitutes more
than 50% of the total fair market value or total voting power of the stock of the
Company. However, if any one person, or more than one person acting as a group, is
considered to own more than 50% percent of the total fair market value or total
voting power of the stock of the Company, the acquisition of additional stock by the
same person or

 

 

persons is not considered to cause a change in ownership of the Company (or to
cause a change in the effective control of the Company (within the meaning of
Section 7(v)(B)).

               (B) Notwithstanding that the Company has not undergone a change in ownership
under Section 7(v)(A), a “change in effective control” of the Company occurs on the
date that a majority of members of the Board is replaced during any 12-month period
by directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of the appointment or election. For purposes
of this Section 7(v)(B), the term “Company” refers solely to the relevant
corporation identified in the opening paragraph of this Agreement, for which no
other corporation is a majority shareholder.

               (C) A “change in the ownership of substantial assets” of the Company occurs on
the date that any one person, or more than one person acting as a group, acquires
(or has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) assets from the Company that have a total
gross fair market value equal to or more than 75% percent of the total gross fair
market value of all of the assets of the Company immediately prior to such
acquisition or acquisitions. For this purpose, “gross fair market value” means the
value of the assets of the Company, or the value of the assets being disposed of,
determined without regard to any liabilities associated with such assets.

 

 

          (b) Notice of Termination. Any purported termination of Employee’s employment
by the Company under Sections 7(a)(iii)(C) or (D), or by Employee under Section 7(a)(i),
(iv) or (v), shall be communicated by a written Notice of Termination to the other Party in
accordance with Section 10. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice that (i) in the case of termination by the Company,
shall set forth in reasonable detail the reason for such termination of Employee’s
employment and the Date of Termination, or (ii) in the case of resignation by Employee,
shall specify in reasonable detail the basis for such resignation and the Date of
Termination. A Notice of Termination given by Employee pursuant to Section 7(a)(iv) shall
be effective even if given after the receipt by Employee of notice that the Board has set a
meeting to consider terminating Employee for Misconduct. A Notice of Termination given by
Employee pursuant to Section 7(a)(iv) shall be considered effective only after 30 days have
elapsed since Employee delivered the applicable Good Reason Notice and the Company has
failed to resolve the issue causing the change in terms or status during such 30 day period.
Employee shall not be expected to provide further services after the Date of Termination.
Any purported termination for which a Notice of Termination is required that does not
materially comply with this Section 7(b) shall not be effective.

          (c) Date of Termination, Etc. The “Date of Termination” shall mean the
date specified in the Notice of Termination, provided that the Date of Termination shall be
at least 15 calendar days, but not more than 45 calendar days, following the date the Notice
of Termination is given. Notwithstanding anything herein to the contrary, if a Notice of
Termination

 

 

is given pursuant to Section 7(a)(v), then the Date of Termination may not be later
than February 28th of the year following the year in which the Change of Control occurs. In
the event Employee is terminated for Misconduct, the Company may refuse to allow Employee
access to the Company’s offices (other than to allow Employee to collect Employee’s personal
belongings under the Company’s supervision) prior to the Date of Termination. Employee
shall not be expected to provide further services after the Date of Termination.

          (d) Mitigation. Employee shall not be required to mitigate the amount of any
payment provided for in this Section 7 by seeking other employment or otherwise, nor shall
the amount of any payment provided for in this Agreement be reduced by any compensation
earned by Employee as a result of employment by another employer, except that any severance
amounts payable to Employee pursuant to the Company’s severance plan or policy for employees
in general shall reduce the amount otherwise payable pursuant to Section 7(a)(iii)(B).

          (e) Excess Parachute Payments. Notwithstanding anything in this Agreement to
the contrary, to the extent that any payment or benefit received or to be received by
Employee hereunder in connection with the termination of Employee’s employment would, as
determined by tax counsel selected by the Company, constitute an “Excess Parachute Payment”
(as defined in Section 280G of the Internal Revenue Code), the Company shall fully “gross
up” such payment so that Employee is in the same “net” after tax position he would have been
if such payment and gross up payments had not constituted Excess Parachute Payments. No
payment of a gross up

 

 

shall occur until the first business day occurring after the date that is six months
after the Date of Termination. Payment of the gross up will be made no later than the end
of Employee’s taxable year next following Employee’s taxable year in which Employee remits
the related taxes.

     8. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit
Employee’s continuing or future participation in any benefit, bonus, incentive, or other plan or
program provided by the Company and for which Employee may qualify, nor shall anything herein limit
or otherwise adversely affect such rights as Employee may have under any Long Term Incentives
granted by the Company.

     9. Assignability. The obligations of Employee hereunder are personal and may not be
assigned or delegated by Employee or transferred in any manner whatsoever, nor are such obligations
subject to involuntary alienation, assignment or transfer. The Company shall have the right to
assign this Agreement and to delegate all rights, duties and obligations hereunder, either in whole
or in part, to any parent, affiliate, successor or subsidiary of the Company, so long as the
obligations of the Company under this Agreement remain the obligations of the Company.

     10. Notice. For the purpose of this Agreement, all notices and other communications
provided for in this Agreement shall be in writing and shall be deemed to have been duly given when
delivered by Federal Express or similar courrier addressed (a) to the Company, at its principal
office address, directed to the attention of the Board with a copy to the Corporate Secretary of
the Company, and (b) to Employee, at Employee’s residence address on the records of the Company or
to such other address as either Party may have furnished to the other

 

 

in writing in accordance herewith except that notice of change of address shall be effective
only upon receipt.

     11. Severability. In the event that one or more of the provisions set forth in this
Agreement shall for any reason be held to be invalid, illegal, overly broad or unenforceable, the
same shall not affect the validity or enforceability of any other provision of this Agreement, but
this Agreement shall be construed as if such invalid, illegal, overly broad or unenforceable
provisions had never been contained therein; provided, however, that no provision
shall be severed if it is clearly apparent under the circumstances that the Parties would not have
entered into the Agreement without such provision.

     12. Successors; Binding Agreement.

     (a) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain such agreement prior to the effectiveness of any such succession
shall constitute Good Reason under Section 7(a)(iv); provided that, for purposes of
implementing the foregoing, the date on which any such succession becomes effective shall be deemed
the Date of Termination. As used herein, the term “Company” shall include any successor to
its business and/or assets as aforesaid that executes and delivers the Agreement provided for in
this Section 12 or that otherwise becomes bound by all terms and provisions of this Agreement by
operation of law.

 

 

          (b) This Agreement and all rights of Employee hereunder shall inure to the benefit of and be
enforceable by Employee’s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees.

     13. Miscellaneous.

          (a) No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by Employee and such officer of the
Company as may be specifically authorized by the Board.

          (b) No waiver by either Party at any time of any breach by the other Party of, or in
compliance with, any condition or provision of this Agreement to be performed by such other Party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

          (c) Together with the Nonsolicitation and Noncompete Agreement, this Agreement is an
integration of the Parties’ agreement; no agreement or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either Party, except those
which are set forth expressly in this Agreement and the Nonsolicitation and Noncompete Agreement.

          (d) THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF LOUISIANA.

          (e) Notwithstanding anything herein to the contrary, this Agreement is intended to comply with
Internal Revenue Code Section 409A and the regulations and other guidance of general applicability
thereunder and shall at all times be interpreted in accordance with such intent such that amounts

 

credited under this Agreement shall not be taxable until such amounts are distributed in
accordance with the terms of this Agreement. In the event that Employee is a “specified employee”
at the Date of Termination, any amounts that are considered nonqualified deferred compensation for
purposes of Internal Revenue Code Section 409A and that are distributable because of a separation
from service shall be delayed until the first business day occuring after the date that is six
months after the Date of Termination. Any provision of this Agreement to the contrary is without
effect.

          (f) Reimbursements provided for under this Agreement shall be provided in accordance with
policies of the Company established from time to time.

     14. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

     15. Arbitration.

          (a) Employee and the Company agree that any dispute regarding the covenants herein and/or the
validity of this Agreement and its addenda, if any, shall be resolved through arbitration.
Employee and the Company hereby expressly acknowledge that Employee’s position in the Company and
the Company’s business have a substantial impact on interstate commerce and that Employee’s
development and involvement with the Company and the Company’s business have a national and
international territorial scope commercially. Any arbitration-related matter or arbitration
proceeding of a dispute regarding the covenants herein and/or the validity of this Agreement and
its addenda, shall be governed, heard, and decided under the provisions and the authority of the

 

 

Federal Arbitration Act, 9 U.S.C.A. §1, et seq., and shall be submitted for arbitration to the
office of the American Arbitration Association (“AAA”) in New Orleans, Louisiana, on demand
of either Party.

          (b) Such arbitration proceedings shall be conducted in New Orleans, Louisiana, and shall be
conducted in accordance with the then-current Employment Arbitration Rules and Mediation Procedures
of the AAA, with the exception that the Employee expressly waives the right to request interim
measures or injunctive relief from a judicial authority. Employee acknowledges that the Company
alone retains the right to seek injunctive relief from a judicial authority based on the nature of
this Agreement. Each Party shall have the right to be represented by counsel or other designated
representatives. The Parties shall negotiate in good faith to appoint a mutually acceptable
arbitrator; provided, however, that, in the event that the Parties are unable to
agree upon an arbitrator within 30 days after the commencement of the arbitration proceedings, the
AAA shall appoint the arbitrator. The arbitrator shall have the right to award or include in his
or her award any relief that he or she deems proper under the circumstances, including, without
limitation, all types of relief that could be awarded by a court of law, such as money damages
(with interest on unpaid amounts from date due), specific performance and injunctive relief. The
arbitrator shall issue a written opinion explaining the reasons for his or her decision and award.
The award and decision of the arbitrator shall be conclusive and binding upon both Parties, and
judgment upon the award may be entered in any court of competent jurisdiction. The Parties
acknowledge and agree that any arbitration award may be enforced against either or both of them in
a court of competent jurisdiction, and each waives any right to contest the validity or
enforceability of

 

 

such award. The Parties further agree to be bound by the provisions of any statute of
limitations that would be otherwise applicable to the controversy, dispute, or claim that is the
subject of any arbitration proceeding initiated hereunder. Without limiting the foregoing, the
Parties shall be entitled in any such arbitration proceeding to the entry of an order by a court of
competent jurisdiction pursuant to a decision of the arbitrator for specific performance of any of
the requirements of this Agreement. The provisions of this Section 15 shall survive and continue
in full force and effect subsequent to and notwithstanding expiration or termination of this
Agreement for any reason. Employee agrees to pay arbitration fees in an amount not to exceed the
amount required to file a lawsuit in a court of law. The Company agrees to pay the remaining
amount of arbitration fees. The arbitrator shall have the right to award reasonable attorney’s
fees and costs to the prevailing Party. Employee and the Company acknowledge and agree that any
and all rights they may have to resolve their claims by a jury trial are hereby expressly waived.
The provisions of this Section 15 do not preclude Employee from filing a complaint with any
federal, state, or other governmental administrative agency, if applicable.

 

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement on
March 23, 2009, effective for
all purposes as of the Effective Date.

	 	 	 	 	 
	 	THE SHAW GROUP INC.

 	 
	 	By:  	/s/ Clifton S. Rankin 	 
	 	 	Clifton S. Rankin 	 
	 	 	General Counsel and Corporate Secretary 	 
	 

	 	 	 
	EMPLOYEE
	 	 
	 
	 	 
	/s/ Frederick W. Buckman 
	 	 
	 

Frederick W. Buckman

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