Document:

Exhibit 10.17

 

IPSCO
Inc.

2005
Form 10-K

 

PERFORMANCE UNIT AWARD AGREEMENT

 

THIS AGREEMENT made
the 24th day of  July, 2003.

 

BETWEEN:

 

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

 

(hereinafter
called the “Company”),

 

OF THE FIRST PART,

 

-and-

 

PETER
MACPHAIL, of Regina, Saskatchewan

 

(hereinafter
called the “Participant”),

 

OF THE SECOND
PART.

 

WHEREAS the
Company has established an Incentive Share Option Plan (which, as amended from
time to time by the Board of Directors of the Company and approved by
Shareholders, is hereinafter referred to as the “Plan”) whereby certain
designated officers, employees and directors of the Company and its
subsidiaries may from time to time be granted options, restricted shares and
performance units;

 

AND WHEREAS the
Participant, as an officer of the Company, has been designated to receive a
grant of Performance Units (as defined herein), subject to and in accordance
with the terms of this Agreement and of the Plan;

 

NOW THEREFORE THIS AGREEMENT
WITNESSETH that in consideration of the mutual
covenants herein contained the parties do hereby agree as follows:

 

1.                                       Grant

 

Pursuant to Section 9 of the Plan, the Company
hereby grants and awards to the Participant Six Thousand (6,000) performance
units (the “Performance Units”).  Each
Performance Unit shall be subject to the terms of the Plan and of this
Agreement, including the terms relating to the Performance Period and the
Performance Objective (as those terms are herein defined).

 

 

2.                                       Performance Period/Performance Objective

 

The performance period applicable to the Performance
Units shall be the period beginning on July 1, 2003 (the “Commencement
Date”) and ending on June 30, 2006 (the “Performance Period”).  The performance objective applicable to the
Performance Units (the “Performance Objective”) shall be the achievement by the
Company during the Performance Period of positive cumulative net income (as
calculated on a consolidated basis in accordance with Canadian generally
accepted accounting principles) attributable to the common shares of the
Company (the “Common Shares”).

 

3.                                       Vesting of Performance Units

 

The Performance Units will vest upon the earlier of

 

(a)                                  the
date of a Change of Control, and

 

(b)                                 June 30,
2006, provided that the Performance Objective is met,

 

and, provided further that the Participant is employed (or is deemed by
Section 4 to be employed) by the Company or a Subsidiary (as defined in
the Plan) on that date and has been (or is deemed by Section 4 to have
been) continuously so employed since the Commencement Date.  Performance Units not vested on or before the
last day of the Performance Period pursuant to the preceding sentence shall
lapse and be terminated and cancelled.

 

For the purposes of this Section 3, the date of
a Change of Control means the date on which any one of the following
occurs:  (i) any person or group of
persons acting in concert acquires beneficial ownership (within the meaning of
The Securities Act (Saskatchewan)) of 20% or more of the outstanding Common
Shares of the Company, or securities convertible into 20% or more of the
outstanding Common Shares on a post-conversion basis; (ii) during a period
of not more than 24 months, a majority of the Board of Directors ceases to
consist of the existing membership or successors nominated by the existing
membership or their similar successors; (iii) all or substantially all of
the individuals and entities who were the beneficial owners of the Company’s
outstanding securities entitled to vote do not own more than 50% of such
securities in substantially the same proportions following a shareholder
approved reorganization, merger, or consolidation; or (iv) shareholder
approval of either (A) a complete liquidation or dissolution of the
Company or (B) a sale or other disposition of all or substantially all of
the assets of the Company, or a transaction having a similar effect.

 

4.                                       Termination of Employment

 

(a)           If
the Participant ceases to be an employee (and, if the Participant is an
officer, the Participant ceases to be an officer) of the Company (and, if the
Participant is an employee or 

 

2

 

officer of any Subsidiary, the Participant also ceases to be an
employee or officer of the Subsidiary) as a result of:

 

(i)            disability or
illness preventing the Participant from performing the duties routinely
performed by the Participant;

 

(ii)           retirement at the
normal retirement age prescribed by the Company retirement benefit or pension
plan of which the Participant is a member;

 

(iii)          death of the Participant; or

 

(iv)          such other circumstance as
may be approved by the Board of Directors;

 

the Participant shall be deemed, for the purposes of Section 3
hereof (Vesting of Performance Units), to be employed by the Company or
Subsidiary on the last day of the Performance Period  (or, if earlier, the date of a Change of
Control) and to have been continuously so employed since the Commencement Date.

 

(b)                                 If
the Participant ceases to be an employee (and, if the Participant is an
officer, the Participant ceases to be an officer) of the Company (and, if the
Participant is an employee or officer of any Subsidiary, the Participant also
ceases to be an employee or officer of the Subsidiary) in any circumstance
other than as described in paragraph (a) of this Section 4 (including
termination by the Company with or without cause and termination by the
Participant), all of the Performance Units shall immediately lapse and be
terminated and cancelled.  For greater
certainty, the Participant’s employment shall not be considered to terminate
where there is a transfer of the Participant’s employment without an
intervening period from the Company to a Subsidiary or vice versa, or from one
Subsidiary to another.

 

5.                                       Payment of Performance Units and Dividend Equivalents

 

Upon vesting of the Performance Units in accordance
with Sections 3 and 4 hereof, the Participant shall become entitled to payment
in respect of the Performance Units. 
Payment shall be made by delivery by the Company to the Participant of
one newly issued Common Share for each Performance Unit held by the
Participant.  The Participant may, in his
sole discretion, require that payment be made by the Company in a combination
of cash (to a maximum cash payment amount of 40% of the vested Performance Units)
and Common Shares (to a minimum amount of 60% of the vested Performance Units)
in lieu of payment in Common Shares only.  For purposes of calculating the amount of any
such cash payment, Common Shares shall be valued on the applicable date of
vesting under Section 3 hereof. 
Such valuations shall be closing price of the Common Shares of the
Company on the Toronto Stock Exchange on the day of vesting.

 

Payment shall be made as soon as practicable after
the date of vesting.  Where payment is
made in whole or in part in Common Shares, the Company shall cause the transfer
agent of the 

 

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Common Shares to promptly deliver to the Participant a share
certificate in the name of the Participant representing such Common Shares.

 

At the time payment is made by the Company to the
Participant under this Section 5, the Company shall also pay to the
Participant a dividend equivalent in an amount equal to the number of the
Participant’s Performance Units multiplied by the total dividends per Common
Share declared by the Company between the Commencement Date and the applicable
date of vesting.  Such payment shall be
made by the Company in cash as soon as practicable after the date of vesting.
For greater certainty, such dividend equivalent cash payment shall not form
part of the calculation of, or be subject to, the 40% maximum cash payment in
lieu of Common Shares noted above.

 

Where the Participant has died, all references in
this Section 5 to “Participant” shall be deemed to include the Participant’s
legal representative.

 

6.                                       Non-Assignability of Performance Units

 

The Performance Units granted hereunder shall not be
transferable or assignable (whether absolutely or by way of mortgage, pledge or
other charge) by the Participant other than by will or other testamentary
instrument, the laws of succession or other laws of general application and
during the lifetime of the Participant only the Participant shall be entitled
to payment thereunder.

 

7.                                       Rights of Participant

 

The Participant shall have no rights whatsoever as a
shareholder in respect of any Common Shares which are the subject of the
Performance Units held by the Participant (including, without limitation, any
right to receive dividends or other distributions from the Company, voting
rights, warrants or rights under any rights offering) until such time as such
shares have been recorded on the Company’s official shareholder records as
having been issued to the Participant.

 

Nothing contained in this Agreement shall give the
Participant or any other person, any interest or title in or to any Common
Shares which are the subject of the Performance Units or any rights as a
shareholder of the Company or any other legal or equitable right against the
Company whatsoever other than as set forth in this Agreement, nor shall it
confer upon the Participant any right to continue as an officer of the Company
or of its Subsidiaries.

 

8.                                       Withholding Taxes

 

Prior to the payment by the Company in respect of
the Performance Units pursuant to Section 5, the Participant shall pay to
the Company such amount as may be requested by the Company for the purpose of
satisfying any liability for federal, provincial, state or other taxes with
respect to such payment.  Where the
Participant is subject to Canadian income tax, the 

 

4

 

amount shall be paid by the Participant to the Company in cash or by
cheque.  Where the Participant is not
subject to Canadian tax, the amount requested by the Company shall be paid by
the Participant to the Company in cash or by cheque, provided that the
Participant may pay all or a portion of the amount by (a) the delivery of
Common Shares or (b) having the Company withhold a portion of the Common
Shares otherwise to be delivered upon vesting of the Performance Units.  Where the Participant, in his sole
discretion, has required that payment in respect of the Performance Units be
made by the Company in cash in lieu of Common Shares or in a combination of
cash and Common Shares, the Company shall have the right to deduct from any
cash payment any applicable taxes.

 

9.                                       Alterations in Shares

 

In the event of a share dividend, share split, issuance of shares or
instruments convertible into shares (other than pursuant to the Plan) for less
than market value, share consolidation, share reclassification, exchange of
shares, recapitalization, amalgamation, merger, consolidation, corporate
arrangement, reorganization, liquidation or the like of or by the Company, the
Board of Directors may make such adjustment, if any, of the number of
Performance Units, as it shall deem appropriate to give proper effect to such
event, including to prevent, to the extent possible, substantial dilution or
enlargement of rights granted to the Participant.  If because of a proposed merger, amalgamation
or other corporate arrangement or reorganization, the exchange or replacement
of shares in the Company for those in another company is imminent, the Board of
Directors may, in a fair and equitable manner, determine the manner in which
the Performance Units shall be treated including, for example, requiring the
acceleration of the time for payment by the Company in respect of the
Performance Units and of the time for the fulfilment of the Performance Objectives.  All determinations of the Board of Directors
under this Section 9 shall be conclusive and binding.

 

10.                                 Leave of Absence

 

If the Participant is an employee of the Company and
is granted a temporary leave of absence by the Company, such leave of absence
shall be deemed a continuation of the employment of the Participant provided if
and so long as:

 

(a)                                  the
Company consents in writing to such leave of absence, and

 

(b)                                 the
Participant thereafter returns to full-time employment with the Company for a
period of six months, notwithstanding the possible expiration of the
Performance Period.

 

For greater certainty, the provisions of subsection (b) of
this Section 10 shall be subject always to (i) immediate vesting on
the occurrence of a Change of Control as described in Section 3 hereof and
(ii) the deemed continuous employment provisions of Section 4.

 

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11.                                 Notice

 

All notices, demands, payments or other
communications which may or are required to be given under this Agreement shall
be given in writing by personal delivery or ordinary prepaid mail:

 

(c)                                  to
the Company:

IPSCO Inc.

650 Warrenville
Road

Suite 500

Lisle, IL 60532

 

Attention:  Vice President, General Counsel

and Corporate Secretary

 

(b)                                 to
the Participant:

Regina, SK

 

or such other address as either party may give in writing from time to
time.  Such notices if given by mail
shall be deemed to have been received by the party to whom they are addressed
as described herein seventy-two (72) hours after they have been put in the
post, postage prepaid, provided that if postal services are disrupted by labour
disputes, such mailed notices shall be deemed to have been given and received
on the date of actual receipt by the addressee.

 

12.                                 Plan to Apply

 

The parties agree that the provisions of the Plan
shall be complementary to and read in conjunction with the terms of this
Agreement and in the event of any contradiction or inconsistency between any
provisions of the Plan and those of this Agreement, the Plan shall
prevail.  This Agreement shall also be
subject to the applicable requirements of the Toronto Stock Exchange, the
Canadian Securities Administrators, the United States Securities and Exchange
Commission and the New York Stock Exchange from time to time.

 

13.                                 Dispute

 

Any dispute or disagreement which shall arise under,
or as a result of, or in any way related to, the interpretation, construction
or application of this Agreement shall be determined by the Board of Directors
and any such determination shall be final, binding and conclusive for all
purposes.

 

6

 

14.                                 Further Assurances

 

The Participant shall forthwith and from time to
time do all such acts and things and execute and deliver all such instruments,
writings and assurances as may be necessary to carry out this Agreement in
accordance with its true intent.

 

15.                                 Enurement

 

This Agreement shall be binding upon and shall enure
to the benefit of the parties hereto and their successors, executors and administrators.

 

16.                                 Governing Law

 

This Agreement shall be governed by the laws of the
Province of Saskatchewan.

 

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

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ George H. Valentine

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ R. J. Rarey

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Peter MacPhail

  	
   

  
	
   

  	
  PETER MACPHAIL

  

 

7Exhibit 10.18

 

IPSCO Inc.

2005 Form 10-K

 

RESTRICTED
STOCK AGREEMENT

 

THIS AGREEMENT made as of the 24th day of July, 2003

 

B E T W E E N:

 

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

 

(hereinafter called the “Company”)

 

OF THE FIRST PART

 

- and -

 

DAVID S. SUTHERLAND,
of the City of Naperville, Illinois

 

(hereinafter called the “Participant”)

 

OF THE SECOND PART

 

WHEREAS the Company has established an Incentive Share Option Plan (which,
as amended from time to time by the Board of Directors of the Company, shall
hereinafter be called the “Plan”) whereby certain designated officers,
employees and directors of the Company and its subsidiaries, may from time to
time be granted options, restricted shares and performance units;

 

AND WHEREAS the Participant, as the President and Chief Executive Officer of
the Company, has been so designated to receive a grant of restricted shares of
the Company, being common shares (the “Common Shares”) which are to be issued
subject to the restrictions set forth herein (the “Restricted Shares) and of
the Plan;

 

NOW, THEREFORE, THIS
AGREEMENT WITNESSETH that in consideration
of the mutual covenants herein contained the parties do hereby agree as
follows:

 

1.                                                                                      Grant

 

Subject to and
conditional upon compliance with the applicable requirements of each stock
exchange on which the Common Shares of the Company are listed and of any
governmental authority or regulatory body to which the Company is 

 

 

subject,
the Company hereby awards, and issues to and in the name of the Participant an
aggregate of ten thousand, five-hundred and thirty-seven (10,417) Restricted
Shares of the Company on the terms set out in this Agreement.

 

2.                                                                                      Restriction
Period

 

From the date
hereof until the restrictions on the Restricted Shares set forth herein
terminate (the “Restriction Period”), the Restricted Shares shall not be sold,
exchanged, transferred, pledged, hypothecated or otherwise disposed of;
provided, however, that any of the Restricted Shares may be exchanged for any
other Common Shares of the Company that are similarly restricted.

 

Subject to any
earlier termination of the Restriction Period as provided in this Agreement,
the Restriction Period shall terminate with respect to one hundred per cent
(100%) of the Restricted Shares on the business day following the third (3rd)
anniversary of the date hereof and thereupon the Restricted Shares shall be
free of the restrictions contained in this Agreement (and thereafter shall be
referred to as the “Shares”).

 

3.                                                                                      Restricted
Share Certificates

 

The
Participant agrees that at any time prior to the termination of the Restricted
Period, the Company may request that a certificate representing the Restricted
Shares be issued with such legend thereon as the Company may require.  Any such certificate shall be issued at the
cost of the Company.  The Company shall
retain possession of any certificates issued representing the Restricted Shares
until the later to occur of the termination of the Restricted Period and the
termination of the security interest described in Section 6.

 

4.                                                                                      Termination
of Employment

 

If the
employment of the Participant with the Company terminates during the term of
this Agreement for good cause shown, the Participant shall forfeit to the
Company all rights in and to all Restricted Shares subject to the Restriction
Period and all such Restricted Shares shall automatically be deemed to be
donated to the Company.  If the
employment of the Participant with the Company terminates for any other reason,
the Restriction Period shall terminate as follows:

 

(a)                                  if the Participant’s employment is terminated by reason of death,
the Restriction Period shall terminate immediately upon death and the legal
representative of the Participant shall be entitled to receive the Shares;

 

(b)                                 if the Participant’s employment ceases due to disability or illness
preventing the Participant from performing the duties routinely performed by
such Participant, the Restriction Period shall terminate immediately and the
Participant shall be entitled to receive the Shares;

 

(c)                                  if either the Participant or the Company terminates Participant’s
employment with the Company for any other reason other than by the 

 

2

 

Company for
good cause shown, the Restriction Period shall terminate immediately upon the
last day of active employment of the Participant with the Company.

 

5.                                                                                      Rights
of Restricted Shareholder

 

Except as set
forth in this Agreement, upon the issuance of the Restricted Shares a
Participant shall have all of the rights of a shareholder, including the right
to vote the Restricted Shares and the right to receive dividends thereon.  The Company shall issue the Participant’s
Restricted Shares upon execution of this Agreement, the listing (or
authorization of listing upon official notice of issuance) of the Restricted
Shares upon each stock exchange upon which the Common Shares are listed and
there has been compliance with such laws and regulations as the Company may
deem applicable.  The Company agrees to
use reasonable commercial efforts to effect such listing and compliance.

 

6.                                                                                      Withholding
Taxes

 

The
Participant agrees to pay the Company, or otherwise make arrangements
satisfactory to the Company regarding the payment of, any federal, provincial,
state or local taxes required or authorized by law to be withheld with respect
to the award of Restricted Shares or the termination of the Restriction Period
(the “Withholding Taxes”).  The Company
shall have, to the extent permitted by law, the right to deduct from any
payment of any kind otherwise due the Participant, any Withholding Taxes and to
condition the delivery of the Common Shares after the termination of the
Restriction Period on the payment to the Company of the Withholding Taxes.  The Participant hereby grants to the Company
a security interest in the Restricted Shares to secure reconveyance of the
Restricted Shares to the Company upon any deemed donation to the Company and to
ensure adequate provision for the Withholding Taxes.  The Company shall release its security
interest in respect of any Restricted Shares on which (i) the Restriction
Period has terminated and (ii) all Withholding Taxes have been paid.  In lieu of payment of such amounts in cash,
the Participant may pay all or a portion of the Withholding Taxes by (a) delivery
of Common Shares not subject to any Restriction Period or (b) having the
Company withhold a portion of the Common Shares otherwise to be delivered upon
expiration of the Restriction Period.

 

7.                                                                                      Other
Distributions

 

If any
distribution is made to the holders of Common Shares other than a cash
dividend, or if new, different or additional shares or other securities of the
Company or of another company are received by holders of Common Shares, or if
any recapitalization or reclassification, split-up or consolidation of the
Common Shares shall be effected, or, if in connection with a merger or
consolidation of the Company or a sale by the Company of all or a part of its
assets, the Common Shares are exchanged for a different number or class of
shares of stock or other securities of the Company or for shares of stock or
securities of any other company, then any such other securities shall be
subject to similar restrictions as the Restricted Shares, shall be subject to
the security interest provided for in Section 6 and the number and class
of Restricted Shares, and the 

 

3

 

restrictions,
terms and other conditions applicable to any such other securities shall be
equitably determined by the Management Resources and Compensation Committee.

 

8.                                                                                      No
Further Rights

 

Nothing
contained in this Agreement shall confer upon the Participant any right to
continued employment with the Company, or affect the right of the Company to
terminate the employment of the Participant, with or without cause.

 

9.                                                                                      Notice

 

All notices,
demands, payments or other communications which may or are required to be given
under this Agreement shall be given in writing by personal delivery or ordinary
prepaid mail:

 

(a)                                  to
the Company:

 

IPSCO Inc.

650 Warrenville Road

Suite 500

Lisle, IL  
60532

 

Attention:                                         George H. Valentine 

Vice President, General Counsel and Corporate
Secretary

 

(b)                                 to
the Participant:

 

David Sutherland

Naperville, IL  

Tel:                            

Fax:                           

 

or such
other address as any party may give in writing from time to time.  Such notices if given by mail shall be deemed
to have been received by the party to whom they are addressed as described
herein seventy-two (72) hours after they have been put in the post, postage
prepaid, provided that if postal services are disrupted by labour disputes,
such mailed notices shall be deemed to have given and received on the date of
actual receipt by the addressee.

 

10.                                                                               Plan
to Apply

 

The parties
agree that the provisions of the Plan shall be complementary to and read in
conjunction with the terms of this Agreement and in the event of any
contradiction or inconsistency between any provisions of the Plan and those of
this Agreement, the Plan shall prevail.

 

4

 

11.                                                                               Dispute

 

Any dispute or
disagreement which shall arise under, or as a result of, or in any way relate
to, the interpretation, construction or application of this Agreement shall be
determined by the Board of Directors of the Company and any such determination
shall be final, binding and conclusive for all purposes.

 

12.                                                                               Further
Assurances

 

The
Participant shall forthwith and from time to time do all such acts and things
and execute and deliver all such instruments, writings and assurances as may be
necessary to carry out this Agreement in accordance with its true intent.

 

13.                                                                               Enurement

 

This Agreement
shall be binding and shall enure to the benefit of the parties hereto and their
successors, executors and administrators.

 

14.                                                                               Governing
Law

 

This Agreement
shall be governed by the laws of the Province of Saskatchewan.

 

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

 

	
   

  	
   

  	
  IPSCO INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   /s/ George H. Valentine

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  
	
   /s/ M. Klebuc-Simes

  	
   

  	
   /s/ David S. Sutherland

  	
   

  
	
   Witness

  	
   

  	
  DAVID S. SUTHERLAND

  
							

 

5

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