Exhibit 10.32


 


EMPLOYMENT AGREEMENT


 


Between:


 


DARREN WATT


 


(the “Executive”)


 


And:


 


RITCHIE BROS. AUCTIONEERS (CANADA) LTD.,


a corporation incorporated under the laws
of Canada


 


(the “Employer”)


 


WHEREAS:


 


A.   The Employer, its public
parent company, Ritchie Bros. Auctioneers Incorporated (“RBA Pubco”), and its other subsidiaries is in the business
of facilitating the exchange, buying, selling and auctioneering of industrial equipment; and


 


B.   The Employer and the Executive wish to enter
into an employment relationship on the terms and conditions as described in this Agreement;


 


NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration
of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the sufficiency of which
is hereby acknowledged by both parties, the Employer and the Executive agree as follows:


 


		1.	EMPLOYMENT



 


		a.	The Employer agrees to employ the Executive pursuant to the terms and conditions described in this Agreement, including the
appendices to this Agreement, and the Executive hereby accepts and agrees to such employment. Unless otherwise defined, the defined
terms in this Agreement will have the same meaning in the appendices hereto.



 


		b.	The Executive will be employed in the position of General Counsel, Vice President, Corporate Development & Corporate
Secretary, and shall perform and assume such duties and responsibilities as may be assigned by the Employer from time to time.



 


		c.	The parties acknowledge that the Executive’s employment with the Employer originally commenced on April 6, 2004 (the
“Commencement Date”), and the Executive’s employment hereunder will continue for an indefinite period
of time until terminated in accordance with the terms of this Agreement or applicable law (the “Term”).



 


		d.	During the Term, the Executive will at all times:



 


		i.	well and faithfully serve the Employer, and act honestly and in good faith in the best interests of the Employer;



 




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		ii.	devote all of the Executive’s business time, attention and abilities, and provide his best efforts, expertise, skills
and talents, to the business of the Employer, except as provided in Section 2(b);



 


		iii.	adhere to all generally applicable written policies of the Employer, and obey and observe to the best of the Executive’s
abilities all lawful orders and directives, whether verbal or written, of the Board;



 


		iv.	act lawfully and professionally, and exercise the degree of care, diligence and skill that an executive employee would exercise
in comparable circumstances; and



 


		v.	to the best of the Executive’s abilities perform the duties and exercise the responsibilities required of the Executive
under this Agreement.



 


		2.	PRIOR COMMITMENTS AND OUTSIDE ACTIVITIES



 


		a.	The Executive represents and warrants to the Employer that the Executive has no existing common law, contractual or statutory
obligations to his former employer or to any other person that will conflict with the Executive’s duties and responsibilities
under this Agreement.



 


		b.	During the term of this Agreement, the Executive will not be engaged directly or indirectly in any outside business activities,
whether for profit or not-for-profit, as principal, partner, director, officer, active shareholder, advisor, employee or otherwise,
without first having obtained the written permission of the Employer.



 


		3.	POLICIES



 


		a.	The Executive agrees to comply with all generally applicable written policies applying to the Employer’s staff that may
reasonably be issued by the Employer from time to time. The Executive agrees that the introduction, amendment and administration
of such generally applicable written policies are within the sole discretion of the Employer. If the Employer introduces, amends
or deletes such generally applicable written policies, such introduction, deletion or amendment will not constitute a constructive
dismissal or breach of this Agreement. If there is a direct conflict between this Agreement and any such policy, this Agreement
will prevail to the extent of the inconsistency.



 


		4.	COMPENSATION



 


		a.	Upon the Commencement Date, and continuing during the Term, the Executive will earn the following
annual compensation, less applicable statutory and regular payroll deductions and withholdings:



 


	Compensation	 	
	Element	 	$CAD
	 	 	 
	Annual Base Salary	 	$190,000 (the
    “Base Salary”)
	 	 	 
	Annual Short-Term	 	50% of Base Salary
    at Target (the “STI Bonus”)
	Incentive	 	(0% - 200% of STI
    Bonus At Target based on actual performance)
	 	 	 
	Annual Long-Term	 	60%
    of Base Salary at Target (the “LTI Grant”)
	Incentive Grant	 	 


 


 




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		b.	The structure of the STI Bonus and LTI Grant will be consistent with those granted to the RBA Pubco’s other executives,
and is subject to amendments from time to time by the Employer. Currently, LTI grants for executives are provided as follows:



 


		i.	50% in stock options granted pursuant to the terms of RBA Pubco’s Stock Option Plan (the “Option Plan”),
such options currently featuring a ten-year term, with all such options vesting in equal one-third parts after the first, second
and third anniversaries of the grant date;



 


		ii.	50% in performance share units (“PSUs”) granted pursuant to the terms of RBA Pubco’s Performance Share Unit
Plan (the “PSU Plan”), with such PSUs vesting on the third anniversary of the grant date based on meeting pre-established
performance criteria (currently based on EBITDA and ROlC targets), with the number of share units that ultimately vest ranging
from 0% to 200% of target based on actual performance.



 


		c.	The specific terms and conditions for LTI Grants (including but not limited to the provisions upon termination of employment)
will be based on the relevant plan documents and may be subject to amendments from time to time by RBA Pubco.



 


		d.	Notwithstanding any other provisions in this Agreement to the contrary, the Executive will be subject to any clawback/recoupment
policy of the Employer in effect from time-to-time, allowing the recovery of incentive compensation previously paid or payable
to the Executive in cases of misconduct or material financial restatement, whether pursuant to the requirements of Dodd-Frank Wall
Street Reform and the Consumer Protection Act, the listing requirements of any national securities exchange on which common
stock of RBA Pubco is listed, or otherwise.



 


		e.	In the event of a restatement of the financial results of RBA Pubco (other than due to a change in applicable accounting rules
or interpretations), the Board of Directors of RBA Pubco (the “Board”) shall determine whether any performance-based
compensation (pursuant to both short-term and long-term incentive compensation plans) paid or awarded to the Executive during the
three years preceding such restatement (the “Awarded Compensation”), would have been a lower amount had it been calculated
based on such restated financial statement (such lower amount being referred to herein as the “Adjusted Compensation”).
If the Board determines that the Awarded Compensation exceeds the Adjusted Compensation, then the Board may demand from the Executive
the recovery of any excess of the Awarded Compensation over the Adjusted Compensation, and the Executive shall immediately forfeit
and/or repay, as applicable, any such amount.



 


		5.	BENEFITS



 


		a.	The Executive will be eligible to participate in the Employer’s Canadian group benefit plans,
subject to the terms and conditions of said plans and the applicable policies of the Employer and applicable benefits providers



 




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		b.	The liability of the Employer with respect to the Executive’s employment benefits is limited to the premiums or portions
of the premiums the Employer regularly pays on behalf of the Executive in connection with said employee benefits. The Executive
agrees that the Employer is not, and will not be deemed to be, the insurer and, for greater certainty, the Employer will not be
liable for any decision of a third-party benefits provider or insurer, including any decision to deny coverage or any other decision
that affects the Executive’s benefits or insurance.



 


		c.	The Executive will be provided with continued use of his current company vehicle, or in the alternative a car allowance of
$C 1,500 monthly, in accordance with the Employer’s standard car allowance program and practice.



 


		6.	EXPENSES



 


		a.	The Employer will reimburse the Executive, in accordance with the Employer’s policies, for all authorized travel and
other out-of-pocket expenses actually and properly incurred by the Executive in the course of carrying out the Executive’s
duties and responsibilities under this Agreement.



 


		7.	HOURS OF WORK AND OVERTIME



 


		a.	Given the management nature of the Executive’s position, the Executive is required to work additional hours from time
to time, and is not eligible for overtime pay. The Executive acknowledges and agrees that the compensation provided under this
Agreement represents full compensation for all of the Executive’s working hours and services, including overtime.



 


		8.	VACATION



 


		a.	The Executive will earn up to four (4) weeks (or twenty (20) business days) of paid vacation per annum, pro-rated for any partial
year of employment.



 


		b.	The Executive will take his vacation subject to business needs, and in accordance with the Employer’s vacation policy
in effect from time to time.



 


		c.	Annual vacation must be taken and may not be accrued, deferred or banked without the Employer’s written approval.



 


		9.	CHANGE OF CONTROL



 


		a.	In consideration of the execution of this Employment Agreement, the Executive and the Employer hereby agree to enter into and
execute, contemporaneously with this Agreement, the change of control agreement attached as Appendix “A” to this Agreement
(the “Change of Control Agreement”)



 


		10.	TERMINATION OF EMPLOYMENT



 


		a.	Termination for cause: The Employer may terminate the Executive’s employment at any time for Cause, after providing
Executive with at least 30 days’ notice of such proposed termination and 15 days to remedy the alleged defect. In this Agreement,
“Cause” means the wilful and continued failure by the Executive to substantially perform, or otherwise properly carry
out, the Executive’s duties on behalf of RBA Pubco or an affiliate, or to follow, in any material respect,



 




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the lawful policies, procedures, instructions or directions
of the Employer or any applicable affiliate (other than any such failure resulting from the Executive’s disability or incapacity
due to physical or mental illness), or the Executive wilfully or intentionally engaging in illegal or fraudulent conduct, financial
impropriety, intentional dishonesty, breach of duty of loyalty or any similar intentional act which is materially injurious RBA
Pubco or an affiliate, or which may have the effect of materially injuring the reputation, business or business relationships of
the Employer or an affiliate, or any other act or omission constituting cause for termination of employment without notice or pay
in lieu of notice at common law. For the purposes of this definition, no act, or failure to act, on the part of an Executive shall
be considered “wilful” unless done, or omitted to be done, by the Executive in bad faith and without reasonable belief
that the Executive’s action or omissions were in, or not opposed to, the best interests of the Employer and its affiliates.


 


In the event of termination for Cause, all unvested
stock options granted to the Executive pursuant to the terms of the Option Plan will immediately be void on the date the Employer
notifies the Executive of such termination. The Executive will have 30 days from the date of termination to exercise any options
which have vested prior to the date of termination, subject to the terms and conditions of the Option Plan and the applicable individual
option agreements.


 


In the event of termination for Cause, the rights
of the Executive with respect to any PSUs and RSUs held by the Executive will be governed pursuant to the PSU Plan and RSU Plan,
respectively.


 


		b.	Termination for Good Reason: The Executive may terminate his employment with the Employer for Good Reason by delivery
of written notice to the Employer within the sixty (60) day period commencing upon the occurrence of Good Reason including the
basis for such Good Reason (with such termination effective thirty (30) days after such written notice is delivered to the Employer
and only in the event that the Employer fails or is unable to cure such Good Reason within such thirty (30) day period). In the
event of a termination of the Executive’s employment for Good Reason, the Executive will receive pay and benefits as if terminated
by the Employer without Cause under Section 10 c., below, and the termination shall be regarded as a termination without Cause
for purposes of the Option Plan, PSU Plan and RSU Plan. In this Agreement, “Good Reason” means a material adverse
change by RBA Pubco or an affiliate, without the Executive’s consent, to the Executive’s position, authority, duties,
responsibilities, Executive’s place of residence, Base Salary or the potential short-term or long-term incentive bonus the
Executive is eligible to earn, but does not include (1) a change in the Executive’s duties and/or responsibilities arising
from a change in the scope or nature of RBA Pubco’s business operations, provided such change does not adversely affect the
Executive’s position or authority or (2) a change across the board affecting similar executives in a similar fashion, or
(3) the inability or failure, for whatever reason, of the Executive to be able to work as needed periodically in British Columbia.



 


		c.	Termination without Cause: The Employer may terminate the Executive’s employment at any time, without Cause by
providing the Executive with the following:



 


		i.	Minimum of six (6) months’ Base Salary and STI Bonus at Target, then one (1) months’
Base Salary and STI Bonus at Target per year of service (starting at the Commencement Date) up to a maximum of eighteen (18) months’
Base Salary and STI Bonus at Target;



 




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		ii.	continuation of all applicable PSU and RSU rights held by the Executive in accordance with the
PSU and RSU grant agreements, and the terms and conditions of the PSU Plan and RSU Plan, respectively;



 


		iii.	immediate accelerated vesting of all unvested stock options, with the Executive having 90 days
from the date of termination to exercise such options, subject to the terms and conditions of the Option Plan and the applicable
individual option agreements; and



 


		iv.	continued extended health and dental benefits coverage at active employee rates until the earlier
of the first anniversary of the termination of the Executive’s employment or the date on which the Executive begins new full-time
employment, or paying for such period of time the Employer’s share of the costs of such benefits.



 


		d.	Resignation: The Executive may terminate her employment with the Employer at any time by providing the Employer with
three (3) months’ notice in writing to that effect. If the Executive provides the Employer with written notice under this
Section, the Employer may waive such notice, in whole or in part, in which case the Employer will pay the Executive the Base Salary
only for the amount of time remaining in that notice period and the Executive’s employment will terminate on the earlier
date specified by the Employer without any further compensation.



 


In the event of termination by the Executive as provided
in this section, all unvested stock options held by the Executive will immediately be void on the termination date of the Executive’s
employment, with the Executive having 90 days from said date to exercise any vested stock options held by the Executive. The rights
of the Executive with respect to any PSUs and RSUs will be as set forth in the PSU Plan and RSU Plan, respectively, with respect
to termination by the Executive.


 


		e.	Retirement: In the event of the Executive’s retirement, as defined by the Employer’s policies, all unvested
stock options will continue to vest according to their initial grant schedules and will remain exercisable up to the earlier of
the original grant expiry date and the third anniversary of the date of retirement; provided, however, that for purposes of any
award subject to Section 409A (as defined below), any termination (other than a termination for cause) after Executive’s
attainment of retirement age shall be governed by the retirement provisions of such award.



 


PSUs and RSUs will continue to vest and be paid in
accordance with the original grant schedule applicable thereto.


 


		f.	Termination Without Cause or Good Reason Following Change
                                         of Control: In the event of Termination without Cause or for Good Reason within one
                                         (1) year of a change of control of RBA Pubco or the Employer, the Executive will have
                                         the rights set forth in the Change of Control Agreement attached as Appendix “A”
                                         hereto.



 


		g.	Deductions and withholdings: All payments under this Section are subject to applicable statutory and regular payroll
deductions and withholdings as applicable.



 


		h.	Terms of Payment upon Termination: Upon termination of the Executive’s employment, for any reason:



 




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		i.	Subject to Section 10 d. and except as limited by Section 10
                                         h. (ii), the Employer will pay the Executive all earned and unpaid Base Salary, earned
                                         and unpaid vacation pay, earned and unpaid STI for a preceding year (if any remains unpaid),
                                         and a prorated STI Bonus for the year of termination, up to and including the Executive’s
                                         last day of active employment with the Employer (the “Termination Date”),
                                         with such payment to be made within five (5) business days of the Termination Date.



 


		ii.	In the event of resignation by the Executive or termination of the Executive’s employment for Cause, no STI Bonus for
the year of termination will be payable to the Executive; and



 


		iii.	On the Termination Date, or as otherwise directed by the Board, the Executive will immediately deliver to the Employer all
files, computer disks, Confidential Information, information and documents pertaining to the Employer’s Business, and all
other property of the Employer that is in the Executive’s possession or control, without making or retaining any copy, duplication
or reproduction of such files, computer disks, Confidential Information, information or documents without the Employer’s
express written consent.



 


		i.	Other than as expressly provided herein, the Executive will not be entitled to receive any further pay or compensation,
                                                                severance pay, notice, payment in lieu of notice, incentives, bonuses, benefits, rights and damages of any kind. The
                                                                Executive acknowledges and agrees that, in the event of a payment under Section l0b. or Section 10 c. of this Agreement, the
                                                                Executive will not be entitled to any other payment in connection with the termination of the Executive’s
                                                                employment.



 


		j.	Notwithstanding the foregoing, in the event of a termination without Cause or termination for Good Reason, the Employer will
not be required to pay any Base Salary or STI Bonus to the Executive beyond that earned by the Executive up to and including the
Termination Date, unless the Executive signs within sixty (60) days of the Termination Date and does not revoke a full and general
release (the “Release”) of any and all claims that the Executive has against the Employer or its affiliates
and such entities’ past and then current officers, directors, owners, managers, members, agents and employees relating to
all matters, in form and substance satisfactory to the Employer acting in good faith, provided, however, that the payment shall
not occur prior to the effective date of the Release, provided further that if the maximum period during which Executive can consider
and revoke the release begins in one calendar year and ends in another calendar year, then such payment shall not be made until
the first payroll date occurring after the later of (A) the last day of the calendar year in which such period begins, and (B)
the date on which the Release becomes effective.



 


		k.	Notwithstanding any changes in the terms and conditions of the Executive’s employment which may occur in the future,
including any changes in position, duties or compensation, the termination provisions in this Agreement will continue to be in
effect for the duration of the Executive employment with the Employer unless otherwise amended in writing and signed by the Employer.



 


		l.	Agreement authorizing payroll deductions: If, on the date the employment relationship ends, regardless of the reason,
the Executive owes the Employer any money (whether pursuant to an advance, overpayment, debt, error in payment, or any other reason),
the Executive hereby authorizes the Employer to deduct any such debt amount from the Executive’s salary, severance or any
other payment due to the Executive (to the extent permissible by applicable law including without limitation Section 409A (as defined
below)). Any remaining debt will be immediately payable to the Employer and the Executive agrees to satisfy such debt within 14
days of the Termination Date or any demand for repayment.



 




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		11.	SHARE OWNERSHIP REQUIREMENTS



 


		a.	The Executive will be subject to the RBA Pubco’s share ownership guideline policy, as amended from time to time.



 


		12.	CONFIDENTIAL INFORMATION



 


		a.	In this Agreement “Confidential Information” means information proprietary to RBA Pubco or the Employer that is
not publically known or available, including but not limited to personnel information, customer information, supplier information,
contractor information, pricing information, financial information, marketing information, business opportunities, technology,
research and development, manufacturing and information relating to intellectual property, owned, licensed, or used by RBA Pubco
or the Employer or in which the Employer otherwise has an interest, and includes Confidential Information created by the Executive
in the course of his employment, jointly or alone. The Executive acknowledges that the Confidential Information is the exclusive
property of the Employer.



 


		b.	The Executive agrees at all times during the Term and after the Term, to hold the Confidential Information in strictest confidence
and not to disclose it to any person or entity without written authorization from the Employer and the Executive agrees not to
copy or remove it from the Employer’s premises except in pursuit of the Employer’s business, or to use or attempt to
use it for any purpose other than the performance of the Executive’s duties on behalf of the Employer.



 


		c.	The Executive agrees, at all times during and after the Term, not use or take advantage of the Confidential Information for
creating, maintaining or marketing, or aiding in the creation, maintenance, marketing or selling, of any products and/or services
which are competitive with the products and services of RBA Pubco or the Employer.



 


		d.	Upon the request of the Employer, and in any event upon the termination of the Executive’s employment with the Employer,
the Executive will immediately return to the Employer all materials, including all copies in whatever form containing the Confidential
Information which are within the Executive’s possession or control.



 


		13.	INVENTIONS



 


		a.	In this Agreement, “Invention” means any invention, improvement, method, process, advertisement, concept, system,
apparatus, design or computer program or software, system or database.



 


		b.	The Executive acknowledges and agrees that every Invention which the Executive may, at any time during the terms of his employment
with the Employer or its affiliates, make, devise or conceive, individually or jointly with others, whether during the Employer’s
business hours or otherwise, and which relates in any manner to the Employer’s business will belong to, and be the exclusive
property of the Employer, and the Executive will make full and prompt disclosure to the Employer of every such Invention. The Executive
hereby irrevocably waives all moral rights that the Executive may have in every such Invention.



 




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		c.	The Executive undertakes to, and hereby does, assign to the Employer, or its nominee, every such
Invention and to execute all assignments or other instruments and to do any other things necessary and proper to confirm the Employer’s
right and title in and to every such Invention. The Executive further undertakes to perform all proper acts within his power necessary
or desired by the Employer to obtain letters patent in the name of the Employer and at the Employer’s expense for every such
Invention in whatever countries the Employer may desire, without payment by the Employer to the Executive of any royalty, license
fee, price or additional compensation.



 


		d.	The Executive acknowledges that all original works of authorship which are made by the Executive (solely or jointly with others)
within the scope of the Executive’s employment and which are protectable by copyright are “works made for hire,”
pursuant to United States Copyright Act (17 U.S.C., Section 101).



 


		14.	NON-SOLICITATION



 


		a.	The Executive acknowledges that in the course of the Executive’s employment with the Employer the Executive will develop
close relationships with the Employer’s clients, customers and employees, and that the Employer’s goodwill depends
on the development and maintenance of such relationships. The Executive acknowledges that the preservation of the Employer’s
goodwill and the protection of its relationships with its customers and employees are proprietary rights that the Employer is entitled
to protect.



 


		b.	The Executive will not during the Applicable Period, whether individually or in partnership or jointly or in conjunction with
any person or persons, as principal, agent, shareholder, director, officer, employee or in any other manner whatsoever:



 


		i.	solicit any client or customer of the Employer or an affiliate with whom the Executive dealt during the twelve (12) months
immediately prior to the termination of the Executive’s employment with the Employer (however caused) for the purposes of
(a) causing or trying to cause such client or customer to cease doing business with the Employer or to reduce such business with
the Employer or an affiliate by diverting it elsewhere or (b) providing products or services that are the same as or competitive
with the business of the Employer or an affiliate in the area of facilitating the exchange of industrial equipment; or



 


		ii.	seek in any way to solicit, engage, persuade or entice, or attempt to solicit, engage, persuade or entice any employee of the
Employer or an affiliate, to leave his or her employment with the Employer or affiliate,



 


The “Applicable Period” means eighteen
(18) months following termination, regardless of the reason for such termination or the party effecting it.


 


		15.	NON-COMPETITION



 


The Executive agrees that, without the prior written
consent of the Employer, the Executive will not, directly or indirectly, in a capacity similar to that of the Executive with the
Employer, carry on, be engaged in, be concerned with or interested in, perform services for, or be employed in a business which
is the same as or competitive with the business of the Employer in the area of facilitating the exchange of industrial equipment,
or in the area of the buying, selling or auctioning of industrial equipment, either individually or in partnership or jointly or
in conjunction with any person as principal, agent, employee, officer or shareholder. The foregoing restriction will be in effect
for a period of eighteen (18) months following the termination of the Executive’s employment, regardless of the reason for
such termination or the party effecting it, within the geographical area of Canada and the United States.


 




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		16.	REMEDIES FOR BREACH OF RESTRICTIVE COVENANTS



 


		a.	The Executive acknowledges that the restrictions contained in Sections 10 h. iii., 12, 13, 14 and 15 of this Agreement are,
in view of the nature of the Employer’s business, reasonable and necessary in order to protect the legitimate interests of
the Employer and that any violation of those Sections would result in irreparable injuries and harm to the Employer, and that damages
alone would be an inadequate remedy.



 


		b.	The Executive hereby agrees that the Employer will be entitled to the remedies of injunction, specific performance and other
equitable relief to prevent a breach or recurrence of a breach of this Agreement and that the Employer will be entitled to its
reasonable legal costs and expenses, including but not limited to its attorneys’ fees, incurred in properly enforcing a provision
of this Agreement.



 


		c.	Nothing contained herein will be construed as a waiver of any of the rights that the Employer may have for damages or otherwise.



 


		d.	The Executive and the Employer expressly agree that the provisions of Sections 10 h. iii., 12, 13,14,15, and 22 of this Agreement
will survive the termination of the Executive’s employment for any reason.



 


		17.	GOVERNING LAW



 


This Agreement will be governed by the laws of the
Province of British Columbia.


 


		18.	SEVERABILITY



 


		a.	All sections, paragraphs and covenants contained in this Agreement are severable, and in the event that any of them will be
held to be invalid, unenforceable or void by a court of a competent jurisdiction, such sections, paragraphs or covenants will be
severed and the remainder of this Agreement will remain in full force and effect.



 


		19.	ENTIRE AGREEMENT



 


		a.	This Agreement, including the Appendices, and any other documents referenced herein, contains the complete agreement concerning
the Executive’s employment by the Employer and will, as of the date it is executed, supersede any and all other employment
agreements between the parties.



 


		b.	The parties agree that there are no other contracts or agreements between them, and that neither of them has made any representations,
including but not limited to negligent misrepresentations, to the other except such representations as are specifically set forth
in this Agreement, and that any statements or representations that may previously have been made by either of them to the other
have not been relied on in connection with the execution of this Agreement and are of no effect.



 




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		c.	No waiver, amendment or modification of this Agreement or any covenant, condition or restriction herein contained will be valid
unless executed in writing by the party to be charged therewith, with the exception of those modifications expressly permitted
within this Agreement. Should the parties agree to waive, amend or modify any provision of this Agreement, such waiver, amendment
or modification will not affect the enforceability of any other provision of this Agreement. Notwithstanding the foregoing, the
Employer may unilaterally amend the provisions of Section 11 c. relating to provision of certain health benefits following termination
of employment to the extent the Employer deems necessary to avoid the imposition of excise taxes, penalties or similar charges
on the Employer or any of its Affiliates, including, without limitation, under Section 4980D of the U.S. Internal Revenue Code.



 


		20.	CONSIDERATION



 


		a.	The parties acknowledge and agree that this Agreement has been executed by each of them in consideration of the mutual premises
and covenants contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is
acknowledged. The parties hereby waive any and all defenses relating to an alleged failure or lack of consideration in connection
with this Agreement.



 


		21.	INTERPRETATION



 


Headings are included in this Agreement for convenience
of reference only and do not form part of this Agreement.


 


		22.	DISPUTE RESOLUTION



 


In the event of a dispute arising out of or in connection
with this Agreement, or in respect of any legal relationship associated with it or from it, which does not involve the Employer
seeking a court injunction or other injunctive or equitable relief to protect its business, confidential information or intellectual
property, that dispute will be resolved in strict confidence as follows:


 


		a.	Amicable Negotiation - The parties agree that, both during and after the performance of their responsibilities under this Agreement,
each of them will make bona fide efforts to resolve any disputes arising between them via amicable negotiations;



 


		b.	Arbitration - If the parties have been unable to resolve a dispute for more than 90 days, or such
other period agreed to in writing by the parties, either party may refer the dispute for final and binding arbitration by providing
written notice to the other party. If the parties cannot agree on an arbitrator within thirty (30) days of receipt of the notice
to arbitrate, then either party may make application to the British Columbia Arbitration and Mediation Society to appoint one.
The arbitration will be held in Vancouver, British Columbia, in accordance with the BCICAC’s Shorter Rules for Domestic Commercial
Arbitration, and each party will bear its own costs, including one-half share of the arbitrator’s fees.



 




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		23.	ENUREMENT



 


		a.	The provisions of this Agreement will enure to the benefit of and be binding upon the parties, their heirs, executors, personal
legal representatives and permitted assigns, and related companies.



 


		b.	This Agreement may be assigned by the Employer in its discretion, in which case the assignee shall become the Employer for
purposes of this Agreement. This Agreement will not be assigned by the Executive.



 


Dated this 25th day of May, 2015.


 


	Signed, Sealed and Delivered by	)	 
	Darren Watt in the	)	 
	presence of:	)	 
	 	)	 
	/s/ Randy Wall	)	/s/ Darren Watt
	Name	)	Darren Watt
	 	)	 
	 Randy Wall	)	 
	Address	)	 
	 	)	 
	9500 Glenlyon Parkway, Burnaby	)	 
	 	)	 
	 	)	 
	Businessman	)	 
	Occupation	)	 


 


RITCHIE BROS. AUCTIONEERS (CANADA) LTD.


 


	Per:	/s/ Todd P. Wohler	 
	 	Authorized Signatory	 


 




    	Page 12 of 18



     


    

 


APPENDIX “A”


 


CHANGE OF CONTROL AGREEMENT


 


THIS AGREEMENT executed on the __ day of May, 2015.


 


BETWEEN:


 


RITCHIE BROS. AUCTIONEERS (CANADA) LTD., 


a corporation incorporated under the laws of Canada,
and having an office at 9500 Glenlyon Parkway, Burnaby, British Columbia, V5J OC6


 


(the “Company”)


 


AND:


 


Darren Watt


 


(the “Executive”)


 


WITNESSES THAT WHEREAS:


 


A.   The Executive is an executive of the Company
and the Parent Company (as defined below) and is considered by the Board of Directors of the Parent Company (the “Board”)
to be a vital employee with special skills and abilities, and will be well-versed in knowledge of the Company’s business
and the industry in which it is engaged;


 


B.   The Board recognizes that it is essential
and in the best interests of the Company and its shareholders that the Company retain and encourage the Executive’s continuing
service and dedication to his office and employment without distraction caused by the uncertainties, risks and potentially disturbing
circumstances that could arise from a possible change in control of the Parent Company;


 


C.   The Board further believes that it is in
the best interests of the Company and its shareholders, in the event of a change of control of the Parent Company, to maintain
the cohesiveness of the Company’s senior management team so as to ensure a successful transition, maximize shareholder value
and maintain the performance of the Company;


 


D.   The Board further believes that the service
of the Executive to the Company requires that the Executive receive fair treatment in the event of a change in control of the Parent
Company; and


 


E.   In order to induce the Executive to remain
in the employ of the Company notwithstanding a possible change of control, the Company has agreed to provide to the Executive certain
benefits in the event of a change of control.


 


NOW THEREFORE in consideration of the premises and the covenants
herein contained on the part of the parties hereto and in consideration of the Executive continuing in office and in the employment
of the Company, the Company and the Executive hereby covenant and agree as follows:


 




    	Page 13 of 18



     


    

 


		1.	Definitions



 


In this Agreement,


 


		(a)	“Agreement” means this agreement as amended or supplemented in writing from time to time;



 


		(b)	“Annual Base Salary” means the annual salary payable to the Executive by the Company from time to time, but excludes
any bonuses and any director’s fees paid to the Executive by the Company;



 


		(c)	“STI Bonus” means the annual at target short-term incentive bonus the Executive is eligible to earn under the Employment
Agreement, in accordance with the short-term incentive bonus plan;



 


		(d)	“Change of Control” means:



 


		(i)	a Person, or group of Persons acting jointly or in concert, acquiring or accumulating beneficial ownership of more than 50%
of the Voting Shares of the Parent Company;



 


		(ii)	a Person, or Group of Persons acting jointly or in concert, holding at least 25% of the Voting Shares of the Parent Company
and being able to change the composition of the Board of Directors by having the Person’s, or Group of Persons’, nominees
elected as a majority of the Board of Directors of the Parent Company;



 


		(iii)	the arm’s length sale, transfer, liquidation or other disposition of all or substantially all of the assets of the Parent
Company, over a period of one year or less, in any manner whatsoever and whether in one transaction or in a series of transactions
or by plan of arrangement; or



 


		(iv)	a reorganization, merger or consolidation or sale or other disposition
                                         of substantially all the assets of the Company (a “Business Combination”),
                                         unless following such Business Combination the Parent Company beneficially owns all or
                                         substantially all of the Company’s assets either directly or through one or more
                                         subsidiaries.



 


		(e)	“Date of Termination” means the date when the Executive ceases to actively provide services to the Company, or
the date when the Company instructs her to stop reporting to work;



 


		(f)	“Employment Agreement” means the employment agreement between the Company and the Executive dated May 25,
                                                               2015;



 


		(g)	“Good Reason” means either:



 


		(i)	Good Reason as defined in the Employment Agreement; or



 


		(ii)	the failure of the Company to obtain from a successor to all or substantially all of the business or assets of the Parent Company,
the successor’s agreement to continue to employ the Executive on substantially similar terms and conditions as contained
in the Employment Agreement;



 


		(h)	“Cause” has the meaning defined in the Employment Agreement.



 


		(i)	“Parent Company” means Ritchie Bros. Auctioneers Incorporated.



 




    	Page 14 of 18



     


    

 


		(j)	“Person” includes an individual, partnership, association, body corporate, trustee, executor, administrator, legal
representative and any national, provincial, state or municipal government; and



 


		(k)	“Voting Shares” means any securities of the Parent Company ordinarily carrying the right to vote at elections for
directors of the Board, provided that if any such security at any time carries the right to cast more than one vote for the election
of directors, such security will, when and so long as it carries such right, be considered for the purposes of this Agreement to
constitute and be such number of securities of the Parent Company as is equal to the number of votes for the election of directors
that may be cast by its holder.



 


		2.	Scope of Agreement



 


		(a)	The parties intend that this Agreement set out certain of their respective rights and obligations in certain circumstances
upon or after Change of Control as set out in this Agreement.



 


		(b)	This Agreement does not purport to provide for any other terms of the Executive’s employment with the Company or to contain
the parties’ respective rights and obligations on the termination of the Executive’s employment with the Company in
circumstances other than those upon or after Change of Control as set out in this Agreement.



 


		(c)	Where there is any conflict between this Agreement and (i) the Employment Agreement, or (ii) a Company plan or policy relating
to compensation or executive programs, the terms of this Agreement will prevail.



 


		3.	Compensation Upon or After Change of Control



 


		(a)	If the Executive’s employment with the Company is terminated (i) by the Company without Cause upon a Change of Control
or within two years following a Change of Control; or (ii) by the Executive for Good Reason upon a Change of Control or within
one (1) year following a Change of Control:



 


		(i)	the Company will pay to the Executive a lump sum cash amount equal to the aggregate of:



 


		A.	one and one-half (1.5) times Base Salary;



 


		B.	one and one-half (1.5) times at-target STI Bonus;



 


		C.	one and one-half (1.5) times the annual premium cost that would be incurred by the Company to continue to provide to the Executive
all health, dental and life insurance benefits provided to the Executive immediately before the Date of Termination;



 


		D.	the earned and unpaid Base Salary and vacation pay to the Date of Termination; and



 


		E.	an amount calculated by dividing by 365 the Executive’s target bonus under the STI Bonus for the fiscal year in which
the Date of Termination occurs, and multiplying that number by the number of days completed in the fiscal year as of the Date of
Termination.



 




    	Page 15 of 18



     


    

 


		(ii)	the Executive will continue to have all rights under the Stock Option Plan of the Company adopted by the Board as of July 31,
1997 and amended and re-stated as of April 13, 2007 (the “Option Plan”), and under option agreements entered into in
accordance with the Option Plan, with respect to options granted on or before the Date of Termination (including any options granted
upon the commencement of employment as part of any sign-on grant) as if the Executive’s employment had been terminated by
the Company without cause; and



 


		(iii)	the Executive will continue to have all rights held by the Executive pursuant to the Company’s Senior Executive Performance
Share Unit Plan (the “Executive PSU Plan) and Senior Executive Restricted Share Unit Plan (the “Executive RSU Plan”),
and under any and all grant agreements representing performance share units and restricted share units granted under the Executive
PSU Plan and Executive RSU Plan, respectively, granted on or before the Change of Control. Notwithstanding anything to the contrary
contained in any grant agreements with respect to any performance share units and restricted share units granted to the Executive
pursuant to the Company’s Employee Performance Share Unit Plan or Employee Restricted Share Unit Plan, all performance share
units and restricted share units held by the Executive shall be deemed to have been granted pursuant to, and governed by, the terms
of the Executive PSU Plan and Executive RSU Plan, as if all such performance share units and restricted share units had been initially
granted pursuant to such Executive PSU Plan and Executive RSU Plan, respectively.



 


		(b)	All amounts payable pursuant to this section 3 are subject to required statutory deductions and withholdings.



 


		(c)	No such payment pursuant to this Section 3 shall be made unless the Executive signs within sixty (60) days of the Termination
Date and does not revoke a full and general release (the “Release”) of any and all claims that the Executive has against
the Company or its affiliates and such entities’ past and then current officers, directors, owners, managers, members, agents
and employees relating to all matters, in form and substance satisfactory to the Company, provided, however, that the payment shall
not occur prior to the effective date of the Release, provided further that if the maximum period during which Executive can consider
and revoke the release begins in one calendar year and ends in another calendar year, then such payment shall not be made until
the first payroll date occurring after the later of (A) the last day of the calendar year in which such period begins, and (B)
the date on which the Release becomes effective.



 


		4.	Binding on Successors



 


		(a)	The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business or assets of the Company, by agreement in favour of the Executive and in form and substance
satisfactory to the Executive, to expressly assume and agree to perform all the obligations of the Company under this Agreement
that would be required to be observed or performed by the Company pursuant to section 3. As used in this Agreement, “Company”
means the Company and any successor to its business or assets as aforesaid which executes and delivers the agreement provided for
in this section or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.



 




    	Page 16 of 18



     


    

 


		(b)	This Agreement will enure to the benefit of and be enforceable by the Executive’s successors and legal representatives
but otherwise it is not assignable by the Executive.



 


		5.	No Obligation to Mitigate; No Other Agreement



 


		(a)	The Executive is not required to mitigate the amount of any payment or benefit provided for in this Agreement, or any damages
resulting from a failure of the Company to make any such payment or to provide any such benefit, by seeking other employment, taking
early retirement, or otherwise, nor, except as expressly provided in this Agreement, will the amount of any payment provided for
in this Agreement be reduced by any compensation earned by the Executive as a result of taking early retirement, employment by
another employer after termination or otherwise.



 


		(b)	The Executive represents and warrants to the Company that the Executive has no agreement or understanding with the Company
in respect of the subject matters of this Agreement, except as set out in this Agreement.



 


		6.	Exhaustive Compensation



 


The Executive agrees with and acknowledges to the Company that
the compensation provided for under section 3 of this Agreement is all the compensation payable by the Company to the Executive
in relation to a Change of Control, or her termination from employment upon or subsequent to a Change of Control, under the circumstances
provided for in this Agreement. The Executive further agrees and acknowledges that in the event of payment under section 3 of this
Agreement, she will not be entitled to any termination payment under the Employment Agreement.


 


		7.	Amendment and Waiver



 


No amendment or waiver of this Agreement will be binding unless
executed in writing by the parties to be bound by this Agreement.


 


		8.	Choice of Law



 


This Agreement will be governed and interpreted
in accordance with the laws of the Province of British Columbia, which will be the proper law hereof. All disputes and claims will
be referred to the Courts of the Province of British Columbia, which will have jurisdiction, but not exclusive jurisdiction, and
each party hereby submits to the non-exclusive jurisdiction of such courts.


 


		9.	Severability



 


If any section, subsection or other part of this Agreement is
held by a court of competent jurisdiction to be invalid or unenforceable, such invalid or unenforceable section, subsection or
part will be severable and severed from this Agreement, and the remainder of this Agreement will not be affected thereby but remain
in full force and effect.


 


		10.	Notices



 


Any notice or other communication required or permitted to be
given hereunder must be in writing and given by facsimile or other means of electronic communication, or by hand-delivery, as hereinafter
provided. Any such notice or other communication, if sent by facsimile or other means of electronic communication or by hand delivery,
will be deemed to have been received at the time it is delivered to the applicable address noted below either to the individual
designated below or to an individual at such address having apparent authority to accept deliveries on behalf of the addressee.
Notice of change of address will also be governed by this section. Notices and other communications will be addressed as follows:


 




    	Page 17 of 18



     


    

 


		(a)	if to the Executive:



 


Darren Watt


1088 51 Street


Delta, BC V4M 4C4


 


		(b)	if to the Company:



 


9500 Glenlyon Parkway


Burnaby, British Columbia V5J OC6


Attention: Corporate Secretary


Facsimile: (778) 331-5501


 


		11.	Copy of Agreement



 


The Executive hereby acknowledges receipt of a copy of this
Agreement executed by the Company.


 


	RITCHIE BROS. AUCTIONEERS	 	 
	(CANADA) LTD.	 	 
	 	 	 
	 	 	 	 
	By:	/s/ Todd P. Wohler	 	 
	 	 	 	 
	 	 	 	 
	Name:	Todd P. Wohler	 	 
	 	 	 	 
	 	 	 
	SIGNED, SEALED AND DELIVERED by	)	 
	Darren Watt in the	)	 
	presence of:	)	 
	 	)	 
	/s/ Randy Wall	)	/s/ Darren Watt
	Signature	)	Darren Watt
	 	)	 
	Randy Wall	)	 
	Print Name	)	 
	 	)	 
	9500 Glenlyon Parkway, Burnaby	)	 
	Address	)	 
	 	)	 
	Businessman	)	 
	Occupation	)	 


 




    	Page 18 of 18