Document:

Exhibit 10.8

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

This AMENDED AND RESTATED
AGREEMENT made as of the 30th day of April, 2004 by and between CRAIG S. KIEFER, an individual
residing at 415 Carriage Creek Lane, Friendswood, TX 77546 (the “Executive”),
EDGEN CARBON PRODUCTS GROUP,
L.L.C., a Louisiana
limited liability company (the “Company”), and EDGEN CORPORATION, a Nevada
corporation (“Parent”).

 

W I T N E S S E T H

 

WHEREAS, the Executive serves as the President of the
Company, which is a wholly-owned subsidiary of Parent, pursuant to an
Employment Agreement, dated April 3, 2002 (the “Prior Agreement”), by
and between the Company and the Executive;

 

WHEREAS, Parent and the Company seek to utilize the
Executive’s knowledge, experience, talents and abilities; Parent and the
Company desire to employ the Executive as the President of the Company, and the
Executive desires to be so employed, subject to the terms and conditions set
forth herein; and

 

WHEREAS, the Executive and the Company wish to amend
and restate the Prior Agreement in its entirety in accordance with the terms
and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and
of the respective covenants and agreements herein contained, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby amend and restate the Prior Agreement
as follows:

 

1.                                       Employment.  Subject to the terms and conditions
hereinafter set forth, the Company and Parent hereby agree to employ the
Executive, and the Executive hereby agrees to serve as the President of the
Company, effective on April 30, 2004.  The
Executive agrees to perform such services customary to such office as shall
from time to time be assigned to him by the Board of Directors of Parent (the “Board
of Directors”) and/or by Parent’s Chief Executive Officer, or his designee
(collectively the “Chief Executive Officer”).  The Executive further agrees to use his best
efforts to promote the interests of the Company and of Parent, and to devote
his full business time and entire energies and skill to the business and
affairs of the Company and of Parent in accordance with the directions and
orders of the Board of Directors and/or the Chief Executive Officer; provided,
however, that it shall not be a violation of this Agreement for the
Executive to serve on corporate, civic, or charitable boards or committees or
manage personal investments, as long as such activities do not interfere in any
substantial respect with the Executive’s responsibilities hereunder.

 

2.                                       Term
of Employment.  The Executive’s “Employment
Term” pursuant to this Agreement shall commence on the date hereof (the “Effective
Date”) and, unless terminated earlier pursuant to Section 4 hereof, shall
terminate upon the first anniversary of the Effective Date; provided, however,
that the Employment Term shall automatically be extended on a day-by-day basis
(so that the remaining term shall always be one (1) year) unless either the
Company or the Executive elects not to renew such term by giving written notice
(an “Employment

 

 

Expiration Notice”)
thereof; provided, further, however, that if the Executive is terminated
pursuant to Section 4 below, there shall be no automatic daily renewal of the
Employment Term.  The Employment Term
shall terminate on the one (1) year anniversary of the date of receipt of the
Employment Expiration Notice by the Employee or the Employer, as applicable.

 

3.                                       Compensation
and Other Related Matters.

 

3.1.                              Base
Salary.  As compensation for the
services rendered by the Executive hereunder, the Company shall pay, or shall
cause to be paid, to the Executive during the Employment Term, and the
Executive shall accept, compensation at the rate of One Hundred Eighty Thousand
Dollars ($180,000.00) per annum (the “Annual Base Salary”).  The Company’s obligation to pay the Annual
Base Salary shall begin to accrue on the Effective Date and shall be paid in
accordance with the Company’s customary payroll practices which are in effect
from time to time during the Employment Term. 
The Annual Base Salary may be increased at any time during the
Employment Term by recommendation of the Chief Executive Officer to the Board
of Directors.  The Executive’s Annual
Base Salary shall be subject to all applicable withholding and other taxes.

 

3.2.                              Annual
Bonus.  In addition to the Annual
Base Salary set forth above, during the Employment Term, the Executive shall be
entitled to receive an annual bonus (the “Annual Bonus”) in the amount
and calculated in the manner set forth on Schedule A annexed hereto.  The Annual Bonus shall be payable by the
Company to the Executive with respect to each year ending on December 31 by
March 15 of the following year.

 

3.3.                              Other
Employment Benefits.  During the
Employment Term, the Executive shall be entitled to the following employment
benefits:

 

(a)                                  Four
(4) weeks of paid vacation in each fiscal year of the Company while the
Executive is employed hereunder one (1) week of which, if not used by the
Executive in any given fiscal year, may be carried over to the next fiscal
year; provided, that the Executive shall not have more than five (5)
weeks of paid vacation in any given fiscal year as a result of such carry over
and sick leave in accordance with the Company’s policies from time to time in
effect for executive officers of the Company; provided, that, as
provided herein, vacation and/or sick leave time not used in any year may not
be carried over or transferred from one year to another or converted to cash,
except in a year in which there is a Change of Control (as hereinafter defined)
where the Executive is no longer employed;

 

(b)                                 participation,
subject to qualification requirements, in medical, life or other insurance or
hospitalization plans and long-term disability policies which are presently in
effect or hereafter instituted by the Company and applicable to its executive
officers generally; provided that, the Company shall pay all premium,
copayment and deductible expenses of the Executive in respect of such Company
plans and policies;

 

(c)                                  participation,
subject to classification requirements and continued maintenance thereof by the
Company in other employee benefit plans, such as pension and profit sharing
plans, which are from time to time applicable to the Company’s executive
officers generally; and

 

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(d)                                 an
automobile allowance of One Thousand Dollars ($1,000) per month, which shall be
used by the Executive to cover all lease and insurance payments with respect to
one automobile of the Executive’s choice for business purposes.  The Company shall reimburse the Executive,
upon the presentation of appropriate receipts, for all maintenance, repair and
gasoline costs incurred by the Executive in connection with the use of such
automobile; provided, that such costs are directly related to the
performance by the Executive of his obligations to the Company hereunder.

 

3.4.                              Expenses.  During the Employment Term, the Executive
shall be entitled to receive prompt reimbursement from the Company of all
travel, entertainment and out-of-pocket expenses which are reasonably and
necessarily incurred by the Executive in the performance of his duties
hereunder; provided that the Executive properly accounts therefor in
accordance with the Company’s policies as in effect from time to time and such
expenses are approved by the Chief Executive Officer.

 

4.                                       Termination.

 

4.1.                              Disability.  In the event that at any time during the
Employment Term, the Executive, due to physical or mental injury, illness,
disability or incapacity, including “disability” within the meaning of the
disability plan(s) which the Company then has in effect entitling the Executive
to benefits thereunder (“Disability”), shall fail to perform
satisfactorily and continuously the duties assigned to him and the services to
be performed by him hereunder for a period of three (3) consecutive months or
for a non-consecutive period of five (5) months within any twelve (12) month
period, the Company may terminate his employment for Disability upon not less
than thirty (30) days prior written notice by delivery of a Termination Notice
(as defined below) to the Executive.

 

4.2.                              Death.  The Executive’s employment shall terminate
immediately upon the death of the Executive.

 

4.3.                              Cause.
 The Company may, at any time and in its
sole discretion, terminate the Executive’s employment for Cause (as herein
defined) by delivery to the Executive of a Termination Notice specifying the
nature of such Cause, effective as of the date (such effective date referred to
herein as a “Termination Date”) of such Termination Notice.  For purposes hereof, termination for “Cause”
shall mean (i) a conviction of, a plea of nolo  contendere, a
guilty plea or confession by the Executive to an act of fraud, misappropriation
or embezzlement or to a felony; (ii) the commission of a fraudulent act or
practice by the Executive affecting the Company and/or Parent; (iii) the
willful failure by the Executive to follow the directions of the Board of
Directors or the Chief Executive Officer; (iv) the Executive’s habitual
drunkenness as determined in the reasonable discretion of the Board of
Directors or use of illegal substances; (v) the material breach by the
Executive of this Agreement or (vi) an act of gross neglect or gross or willful
misconduct that relates to the affairs of the Company and/or Parent which the
Board of Directors of the Company in its reasonable discretion deems to be good
and sufficient cause; provided, that the Executive shall receive a
Termination Notice with respect to a termination for Cause pursuant to
subsections (iii), (v) and/or (vi) hereof and the Executive shall

 

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have the thirty
(30) days following his receipt of the Termination Notice to cure the breach
specified therein prior to his employment being terminated for Cause pursuant
thereto.

 

4.4.                              Voluntary
Termination by Company.  The Company
may, at any time, and in its sole discretion, terminate the employment of the
Executive hereunder for any reason other than for Cause by the delivery to the
Executive of a Termination Notice, effective as of the date of such Termination
Notice.

 

4.5.                              Termination
by Company in Conjunction with a Change of Control.  For purposes of this Agreement, a “Change
of Control” means the sale of Parent whether by, merger, consolidation,
recapitalization, reorganization, sale of securities, sale of assets or
otherwise in one transaction or a series of related transactions to a person or
persons (other than to Harvest Partners III, L.P. or to any person, persons or
entities affiliated therewith), pursuant to which such person or persons
(together with its affiliates) acquires (i) securities representing at least a
majority of the voting power of all securities of Parent, including securities
convertible, exchangeable or exercisable for or into voting securities of
Parent, assuming the conversion, exchange or exercise of all securities
convertible, exchangeable or exercisable for or into voting securities or (ii)
all or substantially all of the consolidated assets of Parent.  The Company may terminate the employment of
the Executive hereunder in conjunction with any Change of Control in accordance
with Section 5.6 hereof by delivery to the Executive of a Termination Notice
(as defined above), effective as of the date stated in the Termination Notice.

 

4.6.                              Executive’s
Resignation for Good Reason.  After a
Change of Control, the Executive may terminate his employment for Good Reason
in accordance with Section 5.6.  For
purposes hereof, “Good Reason” shall mean, without the Executive’s
consent: (i) the assignment to the Executive of any duties inconsistent in any
material respect with the Executive’s position (including status, offices,
duties and reporting relationships), authority, duties or responsibilities as
contemplated by Section 1 hereof, or any other action by the Company which
results in a significant diminution in such position, authority, duties, or
responsibilities, excluding any isolated and inadvertent action not taken in
bad faith and which is remedied by the Company within ten (10) days after
receipt of notice thereof from the Executive; (ii) any failure by the Company
to comply with any of the provisions of Section 3 hereof other than an isolated
and inadvertent failure not committed in bad faith and which is remedied by the
Company within ten (10) days after receipt of notice thereof from the
Executive; (iii) the Executive’s being required to relocate to a principal
place of employment more than fifty (50) miles from his principal place of
employment with the Company as of the Effective Date or (iv) delivery by the
Company of a notice discontinuing the automatic extension provision of Section
2 hereof.

 

5.                                       Compensation
During Disability and Upon Termination. 
During a Disability Period (as herein defined) or upon the termination
of the Executive’s employment hereunder, the Executive shall be entitled to the
following benefits:

 

5.1.                              Disability.  During any period (the “Disability Period”)
that the Executive, due to Disability fails to perform satisfactorily and
continuously the duties assigned to him and the services to be performed by him
hereunder, the Company shall continue to pay to the Executive the Annual Base
Salary (as in effect at such time) in accordance with the provisions of

 

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Section 3.1
hereof, less any compensation payable to the
Executive under the applicable disability insurance plan(s) of the Company
during such Disability Period.  Thereafter,
if the Executive’s employment hereunder is terminated pursuant to Section 4.1
hereof, the Company shall have no further obligations hereunder after the
Termination Date other than the payment of (a) the Annual Base Salary (as in
effect during the year of such termination) payable in accordance with the
Company’s customary payroll practices (less any compensation payable to the
Executive under the applicable disability insurance plan(s) of the Company),
for the twelve (12) month period immediately following the Termination Date and
(b) the Executive’s pro rata portion
of the Annual Bonus due pursuant to Section 3.2 hereof for the calendar year in
which such termination occurs (based upon the number of days during such year
that the Executive was employed over 365 days prior to termination), payable on
the same date as such Annual Bonus would have been payable for such year
pursuant to Section 3.2 hereof had the Employment Term not been so terminated.

 

5.2.                              Death.  If the Executive’s employment is terminated
pursuant to Section 4.2 hereof as a result of the Executive’s death, the
Company shall have no further obligations hereunder after the date of the
Executive’s death other than the payment to the Executive’s estate, legal
representative, heirs or other beneficiaries of (a) the Annual Base Salary (as
in effect during the calendar year of such death) payable in accordance with
the Company’s customary payroll practices, for the twelve (12) month period
immediately following the date of the Executive’s death, and (b) the Executive’s
pro rata portion of the Annual Bonus due pursuant to Section 3.2 hereof
for the calendar year in which such death occurred (based upon the number of
days during such year that the Executive was employed over 365 days prior to
death), payable on the same date as such Annual Bonus would have been payable
for such year pursuant to Section 3.2 hereof had the Employment Term not been
so terminated.

 

5.3.                              Cause.  If the Executive’s employment is terminated
by the Company for Cause pursuant to Section 4.3 hereof, the Company shall have
no further obligations hereunder after the Termination Date other than the
payment to the Executive of the Annual Base Salary accrued and unpaid through
the Termination Date.  The Company shall
not be obligated to make any bonus payments to the Executive pursuant to
Section 3.2 hereof for the calendar year in which such termination occurs or to
provide any of the benefits set forth in Section 3.3 of this Agreement after
the Termination Date, except as may be required by applicable law.

 

5.4.                              Voluntary
Termination by Company.  If the
Company voluntarily terminates the Executive’s employment hereunder pursuant to
Section 4.4 hereof, the Company shall have no further obligations hereunder
after the Termination Date other than the payment of (a) (i) one (1) year of
the Annual Base Salary (as in effect during the year of such termination)
payable in accordance with the Company’s customary payroll practices, and (ii)
at no greater out-of-pocket expense to the Company than incurred prior to
termination, the Company-sponsored medical and health benefits (or the
reimbursement of COBRA premiums) previously made available to the Executive,
but only to the extent permitted by such policies or plans, or as otherwise
required by law, and (b) the Annual Bonus due pursuant to Section 3.2 hereof
for the calendar year in which such termination occurs, payable on the same
date as such Annual Bonus would have been payable for such calendar year
pursuant to Section 3.2 hereof had the Employment Term not been so terminated.

 

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5.5.                              Termination
by Executive.  If at any time during
the Employment Term, the Executive terminates his employment with the Company
and Parent for any reason whatsoever other than Good Reason pursuant to Section
4.6 hereof, the Company shall have no further obligations hereunder after the
Termination Date other than the payment to the Executive of the Annual Base
Salary accrued and unpaid through the Termination Date.  The Company shall not be obligated and shall
be released from all obligations to make any bonus payments to the Executive
pursuant to Section 3.2 hereof, if any, for the calendar year in which such
termination occurs, or to provide any of the benefits set forth in Section 3.3
of this Agreement after the Termination Date, except as may be required by
applicable law.

 

5.6.                              Termination
in Conjunction with a Change of Control. 
If (a) the Company terminates the employment of the Executive hereunder
in conjunction with any Change of Control, pursuant to Section 4.5 hereof; (b)
the Company or any successor entity thereto terminates the employment of the
Executive without Cause within six (6) months of any Change of Control; or (c)
the Executive terminates his employment for Good Reason within six (6) months
of any Change of Control, the Company, or any successor entity thereto, shall
have no further obligations hereunder after the Termination Date other than (i)
the payment of one (1) year of the Annual Base Salary (as in effect during the
year of such termination) payable in accordance with the Company’s customary
payroll practices; (ii) the payment of the Annual Bonus due pursuant to Section
3.2 hereof for the calendar year in which such termination occurs, payable on
the same date as such Annual Bonus would have been payable for such calendar
year pursuant to Section 3.2 hereof had the Employment Term not been so
terminated; provided, however, the Annual Bonus for the calendar
year in which such termination occurs, shall be pro rated, based on the number
of days the Executive was employed (less any Disability Period) over 365 days;
and (iii) at no greater out-of-pocket expense to the Company than incurred
prior to termination, the Company shall pay for twelve (12) months the premiums
for Company-sponsored medical and health benefits (or the reimbursement of
COBRA premiums) previously made available to the Executive, but only to the
extent permitted by such policies or plans, or as otherwise required by law; however,
if the Executive becomes eligible for coverage under any other medical and
health policy after termination of employment, or is, or becomes covered by any
other medical and health policy the Company’s obligation to pay the premiums
due by the Executive for Company-sponsored medical and health benefits shall
cease immediately.  Notwithstanding the
foregoing, in the event that the Executive, or any of his Affiliates (as
defined below), participates in any Change of Control transaction as an equity
participant and/or as a purchaser of securities or assets and, immediately
after the consummation of the Change of Control transaction remains, or within
six (6) months of such transaction, becomes actively involved in the operation
of the Company, Parent or any successor entity thereto as an officer, director
or employee, the provisions of this Section 5.6 shall terminate and be of no
force or effect.  An “Affiliate”
shall mean an individual, a corporation, an association, a joint venture, a
partnership, a limited liability company, an estate, a trust, an unincorporated
organization and any other entity or organization, governmental or otherwise
that, directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with the Executive.

 

6.                                       Confidentiality.  The Executive acknowledges that it is the
policy of the Company and Parent to maintain as secret and confidential all
Confidential Information (as defined herein).

 

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The parties hereto
recognize that the services to be performed by the Executive pursuant to this
Agreement are special and unique, and that by reason of his employment by the
Company both before and after the Effective Date, the Executive will acquire,
or may have acquired, Confidential Information. 
The Executive recognizes that all such Confidential Information is and
shall remain the sole property of the Company and Parent, as applicable, free
of any rights of the Executive, and acknowledges that the Company and Parent
have a vested interest in assuring that all such Confidential Information
remains secret and confidential.  Therefore,
in consideration of the Executive’s employment with the Employer pursuant to
this Agreement, the Executive agrees that at all times from after the Effective
Date, he will not, directly or indirectly, disclose to any person, firm,
company or other entity (other than Parent or any of its Affiliates (for the
purposes of this Employment Agreement, the term “Affiliate(s)” means Parent,
its successor(s), any direct or indirect subsidiary of Parent or its
successor(s), or any division of a subsidiary)) any Confidential Information,
except as required in the performance of his duties hereunder, without the
prior written consent of the Company or Parent, as applicable, except to the
extent that (i) any such Confidential Information becomes generally available
to the public, other than as a result of a breach by the Executive of this
Section 6, or (ii) any such Confidential Information becomes available to the
Executive on a non-confidential basis from a source other than Parent or any of
its Affiliates or advisors; provided that such source is not known by
the Executive to be bound by a confidentiality agreement with, or other
obligation of secrecy to, the Parent, any of its Affiliates or another party.  In addition, it shall not be a breach of the
confidentiality obligations hereof if the Executive is required by law to
disclose any Confidential Information; provided that in such case, the
Executive shall (a) give the Company and/or Parent, as applicable, the earliest
notice possible that such disclosure is or may be required and (b) cooperate
with the Company and/or Parent, as applicable, at the Company’s and/or Parent’s
expense, as applicable, in protecting, to the maximum extent legally permitted,
the confidential or proprietary nature of the Confidential Information which
must be so disclosed.  The obligations of
the Executive under this Section 6 shall survive any termination of this
Agreement.  During the Employment Term,
the Executive shall exercise all due and diligent precautions to protect the
integrity of the business plans, customer lists, statistical data and
compilation, agreements, contracts, manuals or other documents of the Company
and/or Parent which embody the Confidential Information, and upon the
expiration or the termination of the Employment Term, the Executive agrees that
all Confidential Information in his possession, directly or indirectly, that is
in writing or other tangible form (together with all duplicates thereof) will
forthwith be returned to the Company and/or Parent, as applicable, and will not
be retained by the Executive or furnished to any person, either by sample,
facsimile, film, audio or video cassette, electronic data, verbal communication
or any other means of communication.  The
Executive agrees that the provisions of this Section 6 are reasonably necessary
to protect the proprietary rights of the Company and/or Parent in the
Confidential Information and their trade secrets, goodwill and reputation.

 

For purposes hereof, the term “Confidential
Information” means all information heretofore or hereafter developed or
used by Parent or any of its Affiliates relating to the Business (as defined
below), and the operations, employees, customers, suppliers and distributors of
Parent or any of its Affiliates, including, but not limited to, customer lists,
customer orders, purchase orders, financial data, pricing information and price
lists, business plans and market strategies and arrangements, all books,
records, manuals, advertising materials,

 

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catalogues,
correspondence, mailing lists, production data, sales materials and records, purchasing
materials and records, personnel records, quality control records and
procedures included in or relating to the Business or any of the assets of
Parent and/or its Affiliates, and all trademarks, tradenames, copyrights and
patents, and applications therefor, all trade secrets, inventions, processes,
procedures, research records, market surveys and marketing know-how and other
technical papers of Parent and/or any of its Affiliates, except that
notwithstanding anything to the contrary contained herein, the term
Confidential Information shall not include any such information that is
publicly known or that becomes publicly known (other than as a result of any
action on the part of, or a breach of the provisions of this Section 6, by the
Executive).

 

For purposes hereof, the term “Business” shall
mean the business of (a) distributing and selling industrial steel pipe,
including large OD pipe, heavy wall and X-grade pipe, DSAW, seamless,
continuous weld, ERW pipe and abrasive resistant pipe (mine pipe), and valves,
alloy pipe, flanges and fittings, welded fittings and flanges (high yield,
stainless, exotic carbon, chrome and low temp) per ANSI B16.9 and B16.5
(commodity lines and specials, i.e. anchor flanges and swivel ring flanges)
forged steel fittings, outlets, pipe nipples, swage nipples, hot induction
bends and Pikotek gaskets/insulation kits, stainless steel and other nickel
alloy and hastelloy pipe, valves, fittings and flanges, including all chrome
grades, (collectively, the “Products”); (b) providing added value
services to such pipe and steel Products, including, flame cutting, sawing,
welding, sandblasting, priming, top coat painting, epoxy applications and end
finishing, and, conversion of pipe to other components or products; (c)
entering into joint venture, partnership or agency arrangements relating to the
sale or distribution of surplus stainless steel pipe, fittings and flanges, but
excluding value-added services if not sold as part of the Products; and (d) any
endeavor entered into by Parent or any Affiliates after the signing of this
agreement, but before termination of the employment of the Executive.

 

7.                                       Noncompetition;
Nonsolicitation.  (a) The Executive
agrees that, during the Employment Term and for the period during which the
Executive receives compensation pursuant to Section 5.4 hereof (to the extent
applicable), whichever is greater (such period being referred to herein as the “Initial
Noncompete Period”) (A) the Executive will not own or control any business
that competes, directly or indirectly, with the Business or is otherwise
engaged in activities competitive with the Business, in each and every area
where the Company is engaged in the sale and/or distribution of the Products (a
“Competing Business”) on the date the Executive’s employment is
terminated hereunder, including, without limitation, the State of Texas and
each and every parish throughout the State of Louisiana specified on Schedule
B hereto, (B) the Executive will not, directly or indirectly, whether for
himself or on behalf of any other person (or affiliate), engage in, own,
manage, operate, provide financing to, control or participate in the ownership,
management or control of, or be connected as an officer, employee, partner,
director, or otherwise with, or have any financial interest (whether as a
stockholder, director, officer, partner, consultant, proprietor, agent or
otherwise) in, or aid or assist anyone else in the conduct of, any business,
that competes, directly or indirectly, with the Business or is otherwise
engaged in activities competitive with the Business, in each and every area
where the Company is engaged in the sale and/or distribution of the Products on
the date the Executive’s employment is terminated hereunder, including, without
limitation, the State of Texas and each and every parish throughout the State
of Louisiana specified on Schedule B hereto, or (C) the

 

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Executive will
not, either personally or by his agent or by letters, circulars or
advertisements, and whether for himself or on behalf of any other person,
company, firm or other entity, canvass or solicit, or enter into or effect (or
cause or authorize to be solicited, entered into or effected), directly or
indirectly, for or on behalf of himself or any other person, any business relating
to the sale and/or distribution of any Products from any person, company, firm
or other entity, who is, or has at any time within two (2) years prior to the
date of such action been a customer or supplier of the Parent or any of its
Affiliates, subsidiaries or divisions.  It
is agreed that for purposes of this Section 7(a), a Competing Enterprise is
only a business entity in which the sale and/or distribution of the Products
constitutes more than 5% of that business and/or entity’s overall business revenues,
and only such a Competing Enterprise shall be considered to “in any significant
manner compete with” Parent or its Affiliates. 
Notwithstanding the foregoing, the Executive’s ownership of securities
of a public company engaged in competition with the Company not in excess of 5%
of any class of such securities shall not be considered a breach of the
covenants set forth in this Section 7(a) above.

 

(b)                                 The
Executive agrees that, at all times from after the Effective Date and for (i) a
period of twelve (12) months following the date of termination of the Executive’s
employment with Parent and the Company, or (ii) the period during which the
Executive receives compensation pursuant to Section 5.4 hereof (to the extent
applicable), whichever is greater, the Executive will not, either personally or
by his agent or by letters, circulars or advertisements, and whether for
himself or on behalf of any other person, company, firm or other entity, (A)
seek to persuade any employee of Parent or any of its Affiliates, subsidiaries
or divisions to discontinue his or her status or employment therewith or seek
to persuade any employee or former employee to become employed or to provide
consulting or contract services in a business or activities competitive with
the Business; or (B) solicit, employ or directly or indirectly cause to be
solicited or employed, or engage, directly or indirectly, the services of any
employee or former employee of Parent or any of its Affiliates.

 

(c)                                  Notwithstanding
anything to the contrary contained herein, the Initial Non-Compete Period
referred to in Sections 7(a) and (b) above may be extended for two (2)
successive periods of one (1) year each following the expiration of the Initial
Non-Compete Period and the restrictions set forth in Section 7(a) and (b) above
shall remain in full force and effect until the expiration of such additional
one-year period(s), at the Company’s option. 
Should the Company elect to extend the Initial Non-Compete Period (or
any subsequent one-year period) pursuant hereto, the Company shall provide the
Executive with written notice of such extension at least ninety (90) days prior
to the expiration of each of the Initial Non-Compete Period, the first and the
second one-year periods following such Initial Non-Compete Period, as the case
may be; provided that it is understood and agreed that the Company’s
right to extend for the second one-year period is dependent on the Company
having extended for the first one-year period as provided herein.  In the event the Company elects to extend the
Initial Non-Compete Period (or any subsequent one-year period) pursuant hereto,
the Company shall pay the Executive, in consideration of the agreements of the
Executive not to compete with the Parent and any of its respective Affiliates
until the expiration of such extended one-year period(s), the Annual Base
Salary (as in effect during the year of termination of the Executive’s
employment) in respect of each such additional one-year period, payable in
accordance with the Company’s customary payroll practices.

 

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8.                                       Inventions.  Any and all inventions made, developed or
created by the Executive (whether at the request or suggestion of the Company
and/or Parent or otherwise, whether alone or in conjunction with others, and
whether during regular working hours or otherwise) during the period of his
employment with the Company and/or Parent, which may be directly or indirectly
useful in, or relate to, the Business or the business of Parent or any of its
Affiliates, shall be promptly and fully disclosed by the Executive to the Board
of Directors, and shall be the Company’s exclusive property as against the
Executive.  The Executive shall promptly
deliver to the Board of Directors all papers, drawings, models, data and other
material relating to any invention made, developed or created by him as
aforesaid.  The Executive hereby assigns
any and all such inventions to the Company and hereby agrees to execute and
deliver such agreements, certificates, assignments or other documents as may be
necessary to effect the assignment to the Company of any and all such
inventions as contemplated by this Section 8. 
The Executive shall, upon the Company’s and/or Parent’s request, as
applicable, and without any payment therefor, execute any documents necessary
or advisable in the opinion of the Company’s and/or Parent’s counsel, as
applicable, to direct issuance of patents or copyrights of the Company and/or
Parent, as applicable, with respect to such inventions as are to be in the
Company’s and/or Parent’s exclusive property, as applicable, as against the
Executive under this Section 8 or to vest in the Company and/or Parent, as
applicable, title to such inventions as against the Executive, the expense of
securing any such patent or copyright, to be borne by the Company and/or
Parent, as applicable.

 

9.                                       Breach.

 

9.1.                              Both
parties recognize that the services to be rendered under this Agreement by the
Executive are special, unique and extraordinary in character, and that in the
event of a breach by Executive of the material terms and conditions of the
obligations to be performed by him hereunder, the Company shall be entitled, if
it so elects, to institute and prosecute proceedings in any court of competent
jurisdiction, either in law or in equity, to obtain damages for any breach of
this Agreement, or to enforce the specific performance thereof by the Executive.  Without limiting the generality of the
foregoing, the parties acknowledge that a breach by the Executive of his
material obligations under Sections 6, 7 or 8 could cause the Company
irreparable harm for which no adequate remedy at law would be available in
respect thereof and that therefore upon proof of the same the Company would be
entitled to seek and obtain injunctive relief with respect thereto.

 

9.2.                              In
the event of a breach by the Company of the material terms and conditions of
the obligations to be performed by it hereunder, the Executive shall provide
the Company with written notice thereof, specifying the nature of the breach,
within seven (7) days of such breach and the Company shall have thirty (30)
days followings its receipt of such notice to cure the breach specified therein
to the reasonable satisfaction of Executive. 
To the extent the Company fails to cure such breach as provided herein,
the Executive shall then be entitled, if he so elects, to institute and
prosecute proceedings in any court of competent jurisdiction, either in law or
in equity, to obtain damages for such breach. 
To the extent the Company fails to cure such breach as provided herein,
the non-competition restrictions set forth in Section 7 shall terminate.

 

10

 

10.                                 Parent’s
Guaranty.  Parent hereby guarantees
all of Company’s obligations under this Agreement, including, but not limited
to, prompt and full payment of any and all amounts due the Executive under this
Agreement.

 

11.                                 Insurance.  The Executive acknowledges and agrees that
the Company may obtain a life insurance policy on the life of the Executive
with the Company named as the beneficiary. 
If the Company so elects, the Executive covenants and agrees to
cooperate fully with the Company’s efforts to obtain such insurance policy.

 

12.                                 Conflicting
Agreements.  The Executive hereby
represents and warrants to the Company that (a) neither the execution of this
Agreement by the Executive nor the performance by the Executive of any of his
obligations or duties hereunder will conflict with or violate or constitute a
breach of the terms of any employment or other agreement to which the Executive
is a party or by which the Executive is bound, and (b) the Executive is not
required to obtain the consent of any person, firm, corporation or other entity
in order to enter into this Agreement or to perform any of his obligations or
duties hereunder.

 

13.                                 Further
Assurances.  The Executive hereby
agrees to execute and deliver such agreements, certificates or other documents
as may be reasonably requested by the Company which may be necessary or are
required hereunder.

 

14.                                 Miscellaneous.

 

14.1.                        Successors;
Binding Agreement.  This Agreement
and all rights of the Executive hereunder shall inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors
and assigns; provided, that the duties of the Executive hereunder are personal
to the Executive and may not be delegated or assigned by him.

 

14.2.                        Notice.  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 personally, by registered or certified mail, postage
prepaid, or by a nationally recognized overnight courier service as follows:

 

(a)                                  If
to the Executive:

 

at his
then current address

included in the employment records of the Company;

 

with a
copy to:

 

11

 

(b)                                 If
to the Company or Parent:

 

c/o
Edgen Louisiana Corporation 

18444 Highland Road

Baton Rouge, LA 70809

Attention: President

 

with a copy to:

 

Piper
Rudnick LLP

1251 Avenue of the Americas

New York, New York 10020-1104 

Attention: Leonard Gubar, Esq.

 

or to such other address as any party may have
furnished to the other parties in writing in accordance herewith.

 

14.3.                        Governing
Law.  This Agreement shall be
governed by and in accordance with the laws of the State of Louisiana without
regard to conflict of law rules thereof

 

14.4.                        Waivers.  The waiver of any party hereto of any right
hereunder or of any failure to perform or breach by any other party hereto
shall not be deemed a waiver of any other right hereunder or of any other
failure or breach by any other party hereto, whether of the same or a similar
nature or otherwise.  No waiver shall be
deemed to have occurred unless set forth in writing executed by or on behalf of
the waiving party.  No such written
waiver shall be deemed a continuing waiver unless specifically stated therein,
and each such waiver shall operate only as to the specific term or condition
waived and shall not constitute a waiver of such term or condition for the
future or as to any act other than that specifically waived.

 

14.5.                        Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall otherwise remain in full
force and effect.  Moreover, if any one
or more of the provisions contained in this Agreement is held to be excessively
broad as to duration or scope, such provisions shall be construed by limiting
and reducing them so as to be enforceable to the maximum extent compatible with
applicable law.

 

14.6.                        Entire
Agreement.  This Agreement sets forth
the entire agreement and understanding of the parties in respect of the subject
matter contained herein, and supersedes all prior agreements, promises,
covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, employee or representative of either party in
respect of said subject matter.

 

14.7.                        Headings
Descriptive.  The headings of the
several paragraphs of this Agreement are inserted for convenience only and
shall not in any way affect the meaning or construction of any provision of
this Agreement.

 

12

 

14.8.                        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 shall constitute one and the same instrument.

 

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

 

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Craig S. Kiefer

  	
   

  
	
   

  	
  Craig S. Kiefer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN CARBON PRODUCTS GROUP,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
  Name:  David L. Laxton, III

  
	
   

  	
  Title:  Secretary/Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  With respect to Section 10 only

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dan J. O’Leary

  	
   

  
	
   

  	
  Name:  Dan J.
  O’Leary

  
	
   

  	
  Title:  President/CEO

  

 

13Exhibit 10.10

 

EDGEN
CORPORATION INCENTIVE PLAN

 

Adopted February 1, 2005

 

 

1.             Purpose
of the Plan

 

The
purpose of the Plan is to assist the Company and its Subsidiaries in attracting
and retaining valued employees by offering them a greater stake in the Company’s
success and a closer identity with it, and to encourage ownership of the
Company’s stock by such employees.

 

2.             Definitions

 

2.1             “Approved Sale” means
an Approved Sale as that term is defined in the Securities Holders Agreement.

 

2.2             “Award” means an
award of Restricted Stock under the Plan.

 

2.3             “Award Agreement”
means the Agreement between the Company and a Holder pursuant to which an Award
is granted and which specifies the terms and conditions of that Award,
including the vesting requirements applicable to that Award.

 

2.4             “Board” means the
Board of Directors of the Company.

 

2.5             “Cause” means

 

(a)           a
conviction of, a plea of nolo contendere, a guilty plea or confession by the
Employee to an act of fraud, misappropriation or embezzlement or to a felony;

 

(b)           the
commission of a fraudulent act or practice by the Employee affecting the
Company or its Subsidiaries;

 

(c)           the
willful failure by the Employee to follow the directions of the Board;

 

(d)           the
Employee’s habitual drunkenness or use of illegal substances, each as
determined in the reasonable discretion of the Board;

 

(e)           the
material breach by the Employee of the Employee’s employment agreement with the
Company or its Subsidiaries, if any; or

 

 

(f)            an act of
gross neglect or gross or willful misconduct that relates to the affairs of the
Company or its Subsidiaries, which the Board, in its reasonable discretion,
deems to be good and sufficient cause; provided, that if the Employee shall
receive a Termination Notice with respect to a termination for Cause pursuant
to Sections 2.4(c), 2.4(e) and/or 2.4(f), then the Employee shall have
thirty (30) days following receipt of the Termination Notice to cure the breach
specified therein, if capable of being cured, to the reasonable satisfaction of
the Board prior to the Employee’s employment being terminated for Cause
pursuant thereto; provided, however, the Employee shall have the right to cure
any such breach only one (1) time in any twelve (12) month period.

 

2.6             “Change in Control”
means the sale of the Company in an Approved Sale or by any other, merger,
consolidation, recapitalization, reorganization, sale of securities, sale of
assets or otherwise in one transaction or a series of related transactions to a
person or persons (other than to funds managed by Jefferies Capital Partners or
to any person, persons or entities affiliated therewith), pursuant to which
such person or persons (together with its affiliates) acquires (i) securities
representing at least a majority of the voting power of all securities of the
Company including securities convertible, exchangeable or exercisable for or
into voting securities of the Company, assuming the conversion, exchange or
exercise of all securities convertible, exchangeable or exercisable for or into
voting securities, or (ii) all or substantially all of the consolidated
assets of the Company.  The determination
of whether a Change in Control has occurred shall be made by the Board in its
sole discretion.

 

2.7             “Code” means the
Internal Revenue Code of 1986, as amended.

 

2

 

2.8             “Committee” means the
Board or a committee of Board members designated by
the Board to administer the Plan under Section 4.

 

2.9             “Common Stock” means
the Common Stock of the Company, par value $0.01 per share, or such other class
or kind of shares or other securities resulting from the application of Section 7.

 

2.10           “Company” means Edgen
Corporation, a Nevada corporation, or any successor corporation.

 

2.11           “EBITDA” means for any
given year, the Company’s earnings before interest, income taxes, depreciation
and amortization as determined after payment of bonuses, if any, but adjusted
for purchase accounting or any other items that are considered unique, or
likely to affect only one accounting period (unique or “one time” charges are
charges for which, under generally accepted accounting principles consistently
applied, an adjustment to EBITDA would be considered proper), as determined by
the Board, in its sole discretion, based on the audited financial statements
for such year.

 

2.12           “Employee” means an
officer or other key employee of the Company or a Subsidiary, including a
director who is such an employee.

 

2.13           “Equity
Value” of the Company means the amount, in dollars, obtained by multiplying the
Company’s EBITDA for the Company’s calendar year accounting period immediately
preceding the date as of which Equity Value is to be determined, by the number
5.76, and subtracting from that product (a) all Indebtedness for Borrowed
Money of the Company and its Subsidiaries outstanding on the last day of that
same accounting period, (b) the 

 

3

 

aggregate
liquidation preferences (including accrued but unpaid dividends) of all shares
of any equity security of the Company or any Subsidiary that, in the event of
the Company’s liquidation, entitles the holders of such securities to be paid
before the holders of Common Stock and that are outstanding on the last day of
that same accounting period, offset by (c) the amount of cash and cash
equivalents on the Company’s balance sheet on the last day of that same
accounting period.

 

2.14           “Fair Market Value”
means, on any given date, if the Company’s Common Stock is not Publicly Traded,
the value of a share of Common Stock determined by the Committee by dividing (a) the
Company’s Equity Value, as determined as of the end of the Company’s most
recent fiscal year, as adjusted by the Committee, in its sole discretion, in
good faith, for changes in that Equity Value occurring since the end of the
Company’s most recently ended fiscal year by (b) the number of shares of
Common Stock, including any restricted stock, actually issued and outstanding
as of that same date.  If the Company’s
Common Stock is Publicly Traded, “Fair Market Value” means (c) if the
Common Stock is listed on an established stock exchange or exchanges, the
closing price of Common Stock on the principal exchange on which it is traded
on such date, or if no sale was made on such date on such principal exchange,
on the last preceding day on which the Common Stock was traded or (d) if
the Common Stock is not then listed on an exchange, but is quoted on NASDAQ or
a similar quotation system, the closing price per share for the Common Stock as
quoted on NASDAQ or similar quotation system on such date.

 

2.15           “Holder” means an
Employee to whom an Award is made.

 

4

 

2.16           “Indebtedness for
Borrowed Money” means (a) all indebtedness of the Company and its
Subsidiaries for borrowed money, whether current or funded, secured or
unsecured, (b) all indebtedness of the Company and its Subsidiaries for
deferred purchase price of property or services represented by a note or other
security, (c) all indebtedness of the Company and its Subsidiaries created
or arising under any conditional sale or other title retention agreement with
respect to property acquired by the Company or its Subsidiaries, even though
the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property, (d) all
indebtedness of the Company and its Subsidiaries secured by a purchase money
mortgage or other lien to secure all or part of the purchase price of property
subject to such mortgage or lien, (e) all obligations under leases which
shall have been or should be, in accordance with generally accepted accounting
principles, recorded as capital leases in respect of which the Company or its
Subsidiaries are liable as lessee, (f) any liability of the Company or its
Subsidiaries in respect of banker’s acceptances or letters of credit and (g) all
indebtedness referred to in clause (a) through (f) above which is
directly or indirectly guaranteed by the Company or any of its Subsidiaries or
which the Company or any of its Subsidiaries has agreed, contingently or
otherwise, to purchase or otherwise to acquire or in respect of which it has
otherwise assured a creditor against loss.

 

2.17           “Indenture” means the 9
7/8% Senior Secured Notes due 2011, under the Company’s offering circular dated
February 1, 2005, and/or any subsequent offering by the Company of
publicly or privately held debt securities.

 

5

 

2.18           “1934 Act” means the
Securities Exchange Act of 1934, as amended.

 

2.19           “Plan” means the Edgen
Corporation Incentive Plan herein set forth, as amended from time to time.

 

2.20           “Per Share Equity Value”
means the per share amount, in dollars, derived by dividing the Equity Value of
the Company as the last day of the Company’s fiscal year ending immediately
before the date on which Per Share Equity Value is to be determined by the
number of shares of Common Stock, including any restricted stock, actually
issued and outstanding as of that same date.

 

2.21           “Publicly Traded” means
that the Company’s Common Stock is listed on an established stock exchange or
exchanges, or is quoted on NASDAQ or a similar quotation system

 

2.22           “Restricted Stock”
means Common Stock awarded by the Committee under Section 6 of the Plan.

 

2.23           “Restriction Period”
means the period during which Restricted Stock awarded under Section 6 of
the Plan is subject to forfeiture.  The
Restriction Period shall not lapse with respect to any Restricted Stock until
all conditions imposed under Sections 6.4 or6.5, or otherwise under this Plan
and the Award Agreement, have been satisfied.

 

2.24           “Securities Holders
Agreement” means the Securities Holders Agreement by and among Edgen
Acquisition Corporation, ING Furman Selz Investors III L.P., 

 

6

 

ING Barings Global
Leveraged Equity Plan Ltd., ING Barings U.S. Leveraged Equity Plan LLC and
Other Named Investors, dated as of February 1, 2005.

 

2.25           “Subsidiary” means any
corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company (or any subsequent parent of the Company) if each of
the corporations other than the last corporation in the unbroken chain owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

 

2.26           “Termination Notice”
means a written notice delivered by the Company to an Employee specifying that
the Company has terminated the Employee’s employment.

 

3.             Eligibility

 

Any
Employee is eligible to receive an Award.

 

4.             Administration
and Implementation of Plan

 

4.1             The Plan shall be
administered by the Committee, which shall have full power to interpret and
administer the Plan and full authority to act in selecting the Employees to
whom Awards will be granted, in determining whether, and to what extent, Awards
may be transferable by the Holder, in determining the amount of Awards to be
granted to each such Employee, in determining the terms and conditions of Awards
granted under the Plan and in determining the terms of the Award Agreements
that will be entered into with Holders.

 

7

 

4.2             The Committee shall
have the power to adopt regulations for carrying out the Plan and to make
changes to such regulations as it shall, from time to time, deem
advisable.  Any interpretation by the
Committee of the terms and provisions of the Plan and the administration
thereof, and all actions taken by the Committee, shall be final and binding on
Holders.

 

4.3             The Committee may
amend any outstanding Awards without the consent of the Holder to the extent it
deems appropriate; provided however, that in the case of amendments adverse to
the Holder, the Committee must obtain the Holder’s consent to any such
amendment.

 

5.             Shares
of Stock Subject to the Plan

 

5.1             Subject to adjustment
as provided in Section 7, the total number of shares of Common Stock
available for Awards under the Plan shall be 300,000 shares.

 

5.2             Any shares issued by
the Company through the assumption or substitution of outstanding grants from
an acquired company shall not reduce the shares available for Awards under the
Plan.  Any shares issued hereunder may
consist, in whole or in part, of authorized and unissued shares or treasury
shares.  If any shares subject to any
Award granted hereunder are forfeited or such Award otherwise terminates, the
shares subject to such Award, to the extent of any such forfeiture or
termination, shall again be available for Awards under the Plan.

 

8

 

6.             Restricted
Stock

 

An
Award of Restricted Stock is a grant by the Company of a specified number of
shares of Common Stock to the Employee, which shares are subject to forfeiture
during a Restriction Period upon the happening of specified events or as result
of the failure to meet financial targets or performance goals or satisfy other
conditions specified in the Award Agreement. 
Such an Award shall be subject to the following terms and conditions:

 

6.1             Restricted Stock
shall be evidenced by Award Agreements. 
Such agreements shall conform to the requirements of the Plan and may
contain such other provisions as the Committee shall deem advisable.

 

6.2             Upon determination of
the number of shares of Restricted Stock to be granted to the Holder, the
Committee shall direct that a certificate or certificates representing that
number of shares of Common Stock be issued to the Holder with the Holder
designated as the registered owner.  The
certificate(s) representing such shares shall bear appropriate legends as to
sale, transfer, assignment, pledge or other encumbrances to which such shares
are subject, both during the Restriction Period and thereafter under the
Securities Holders Agreement, and shall be deposited by the Holder, together
with a stock power endorsed in blank, with the Company, to be held in escrow
during the Restriction Period.

 

6.3             During the
Restriction Period the Holder shall have the right to receive the Holder’s
allocable share of any cash dividends declared by the Company on its Common
Stock and to vote the shares of Restricted Stock.

 

9

 

6.4             The Committee may
condition the expiration of the Restriction Period upon: (i) the Employee’s
continued service over a period of time with the Company or its Subsidiaries, (ii) the
Company’s attainment of specified financial targets, (iii) the achievement
by the Employee, the Company or its Subsidiaries of any other performance goals
set by the Committee, or (iv) any combination of the above conditions, as
specified in the Award Agreement.  If the
specified conditions are not attained, the Holder shall forfeit the portion of
the Award with respect to which those conditions are not attained, and the
underlying Common Stock shall be forfeited to the Company.

 

6.5             The Award Agreement
shall specify the duration of the Restriction Period and the financial,
performance, employment, termination of employment or other conditions under
which the Restricted Stock may be forfeited to the Company.  At the end of the Restriction Period, when
all such conditions have been satisfied, the restrictions imposed hereunder
shall lapse with respect to the number of shares of Restricted Stock as
determined by the Committee, and any legend described in Section 6.2 that
is then no longer applicable, shall be removed and such number of shares
delivered to the Holder (or, where appropriate, the Holder’s legal
representative).  The
Board may, in its sole discretion, modify or accelerate the vesting and
delivery of shares of Restricted Stock.

 

6.6             An Employee who is
awarded Restricted Stock shall, regardless of whether the Restriction Period
with regard to such Award has lapsed, be bound by the Securities Holders
Agreement to the same extent as would a Management Investor, as that term is
defined in the Securities Holders Agreement. 
Accordingly, any Restricted Stock issued under the Plan 

 

10

 

shall be held,
transferred, sold or otherwise disposed of only in accordance with the
Securities Holders Agreement. Without limiting the generality of the foregoing,
each Holder shall follow the provisions set forth in the Securities Holders
Agreement with regard to an Approved Sale, as well as be bound by any transfer
restrictions, tag along rights, restrictive covenants and other obligations
delineated in the Securities Holders Agreement. 
Any amendment to the Securities Holders Agreement that effects a
provision contained herein shall be deemed to be an amendment to the Plan.

 

6.7             Upon a Change in
Control, and subject to the exercise of the Board’s discretion to vest all
Awards under Section 6.5, any then outstanding Awards shall be treated as
provided in the applicable Award Agreement.

 

6.8             Unless specifically
provided otherwise in an Award Agreement, upon a termination of a Holder’s
employment for any reason, the Holder shall forfeit any unvested Restricted
Stock, i.e., any Restricted Stock with respect to which the Restriction Period
has not lapsed.

 

6.9             Notwithstanding any
provision in the Plan or in any Award Agreement to the contrary, upon a
termination of the Holder by the Company (or its Subsidiaries) for Cause, the
Holder shall forfeit any Restricted Stock issued under the Plan, regardless of
whether such Restricted Stock is vested and otherwise free from restriction.

 

7.             Adjustments
upon Changes in Capitalization 

 

In the
event of a reorganization, recapitalization, stock split, spin-off, split-off,
split-up, stock dividend, issuance of stock rights, combination of shares,
merger, consolidation or 

 

11

 

any other change in the corporate structure of the
Company affecting Common Stock, or any distribution to stockholders other than
a cash dividend, the Committee shall make appropriate adjustment in the number
and kind of shares authorized by the Plan and any other adjustments to
outstanding Awards as it determines appropriate.

 

8.             Effective
Date, Termination and Amendment

 

The
Plan shall become effective on February 1, 2005 and shall remain in full
force and effect until the earlier of ten years from the date of its adoption
by the Board, or the date it is terminated by the Board.  The Board shall have the power to amend,
suspend or terminate the Plan at any time, provided that any such termination
of the Plan shall not affect Awards outstanding under the Plan at the time of
termination.

 

9.             Repurchase
of Vested Awards

 

9.1             If the Company or its
Subsidiary terminates the Holder’s employment with the Company and its
Subsidiaries for any reason other than for Cause, including death or
disability, and the Company’s Common Stock is not Publicly Traded, then the
Company shall be obligated to repurchase all of the Holder’s Restricted Stock
that, as of the date of such termination, is vested.  The purchase price paid by the Company shall
be the Fair Market Value of the Common Stock as of the date of the Holder’s
termination of employment.  The Company
must deliver such purchase price to the Holder within 180 days
of the Employee’s termination from employment. 
Notwithstanding the foregoing, the Company’s obligation to deliver
payment for the Holder’s Restricted Stock that the Company is obligated to
purchase under this Section 9.1 shall be suspended, if the Board, in its
sole discretion, determines that such 

 

12

 

payment would
result in the Company’s violation of its Indenture or the terms of any
agreement relating to Indebtedness for Borrowed Money.  The Committee shall notify the Holder within
90 days of the Board’s determination that the Company’s obligation to deliver
payment for the Holder’s Restricted Stock has been suspended.  Beginning on the date on which the Board, in
its sole discretion, determines that the payment would no longer result in the
Company’s violation of its Indenture or any agreement relating to Indebtedness
for Borrowed Money, the Company shall have 180 days to complete the repurchase
described in this Section 9.1 by delivering payment for the Restricted
Stock to the Holder.

 

9.2             If the Holder
terminates the Holder’s employment with the Company (and its Subsidiaries) for
any reason, and the Company’s Common Stock is not Publicly Traded,  then the Company shall have the right, but
not the obligation to repurchase any or all of the
Holder’s Restricted Stock that as of the date of such termination is
vested.  The Company must notify the
Holder within 90 days of the Holder’s termination that the Company will
exercise its right to repurchase the Holder’s shares.  The purchase price paid by the Company shall
be the fair Market Value of the Common Stock as of the date of the Holder’s
termination of employment.  The Company
must deliver such purchase price to the Holder within 180 days
of the Company’s notification to the Holder of its intent to repurchase the
shares.  Notwithstanding the foregoing,
the Company’s obligation to deliver payment for shares of the Holder’s
Restricted Stock that the Company has determined to purchase under this Section 9.2
shall be suspended, if the Board, in its sole discretion, determines that such
payment would result in the Company’s violation of its Indenture or any
agreement relating to Indebtedness for 

 

13

 

Borrowed Money.  The Committee shall notify the Holder within
90 days of the Board’s determination that the Company’s obligation to deliver
payment for the Holder’s Restricted Stock has been suspended.  Beginning with the date on which the Board,
in its sole discretion, determines that the payment would no longer result in
the Company’s violation of its Indenture or any agreement relating to
Indebtedness for Borrowed Money, the Company shall have 180 days to complete
the repurchase described in this Section 9.2 by delivering payment for the
Restricted Stock to the Holder..

 

10.          Transferability

 

Except
as provided below, Awards may not be pledged, assigned or transferred for any
reason during the Holder’s lifetime, and any attempt to do so shall be void and
the relevant Award shall be forfeited. 
The Committee may grant Awards that are transferable by the Holder
during his lifetime, but such Awards shall be transferable only to the extent
specifically provided in an agreement entered into with the Holder.  The transferee of the Holder shall, in all
cases, be subject to the Plan, the Securities Holders Agreement and the
provisions of the Award Agreement between the Company and the Holder.

 

11.          General
Provisions

 

11.1           Nothing contained in
the Plan, or any Award granted pursuant to the Plan, shall confer upon any
Employee any right to continued employment by the Company or any Subsidiary,
nor interfere in any way with the right of the Company or a Subsidiary to
terminate the employment of any Employee at any time.

 

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11.2           For purposes of this
Plan, a transfer of employment between the Company and its Subsidiaries shall
not be deemed a termination of employment.

 

11.3           Holders shall be
responsible to make appropriate provision for all taxes required to be withheld
in connection with any Award or the transfer of shares of Common Stock pursuant
to this Plan.  Such responsibility shall
extend to all applicable Federal, state, local or foreign withholding
taxes.  The Company shall, at the
election of the Holder, have the right to retain the number of shares of Common
Stock whose Fair Market Value equals the amount to be withheld in satisfaction
of the applicable withholding taxes.

 

11.4           To the extent that
Federal laws (such as the 1934 Act, the Code or the Employee Retirement Income
Security Act of 1974) do not otherwise control, the Plan and all determinations
made and actions taken pursuant hereto shall be governed by the laws of Nevada
and construed accordingly.

 

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