Document:

Exhibit 4.2

 

BROOKFIELD ASSET MANAGEMENT INC.

 

- and -

 

BROOKFIELD BUSINESS CORPORATION

 

- and –

 

BROOKFIELD BUSINESS PARTNERS L.P.

 

	REGISTRATION RIGHTS AGREEMENT

 

March 15th, 2022

 

    	 	 	 

     

    

 

Table of Contents

 

		Page
	 	 
	Article 1 INTERPRETATION	1
	1.1	Definitions	1
	1.2	Headings and Table of Contents	5
	1.3	Interpretation	5
	1.4	Invalidity of Provisions	6
	1.5	Entire Agreement	6
	1.6	Waiver, Amendment	7
	1.7	Governing Law	7
	Article 2 REGISTRATION RIGHTS	7
	2.1	Demand Registration	7
	2.2	Piggyback Registrations	10
	2.3	Short-Form Filings	11
	2.4	Registration Procedures	12
	2.5	Suspension of Dispositions	17
	2.6	Registration Expenses	17
	2.7	Indemnification	18
	2.8	Transfer of Registration Rights	21
	2.9	Current Public Information	21
	2.10	Preservation of Rights	21
	2.11	Obligations of BBU	21
	Article 3 TERMINATION	22
	3.1	Termination	22
	Article 4 MISCELLANEOUS	22
	4.1	Enurement	22
	4.2	Notices	23
	4.3	Authority	24
	4.4	Further Assurances	24
	4.5	Counterparts	24

 

    	 	- i -	 

     

    

 

REGISTRATION RIGHTS AGREEMENT

 

THIS AGREEMENT made
as of the 15th day of March, 2022

 

B E T W E E N:

 

BROOKFIELD ASSET MANAGEMENT INC.
(“Brookfield”)

 

- and -

 

BROOKFIELD BUSINESS CORPORATION (“BBUC”)

 

-and –

 

BROOKFIELD BUSINESS PARTNERS L.P. (“BBU”)

 

RECITALS:

 

WHEREAS, BBUC desires
to provide the Holders (as defined herein) with the registration rights specified in this Agreement with respect to Registrable Shares
(as defined herein) on the terms and subject to the conditions set forth herein.

 

NOW THEREFORE in consideration
of the premises, mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the parties covenant and agree, each with the other, as follows:

 

Article 1

 

INTERPRETATION

 

		1.1	Definitions

 

The following definitions
shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

 

1.1.1            “Adverse
Effect” has the meaning assigned to such term in Section 2.1.5;

 

1.1.2            “Advice”
has the meaning assigned to such term in Section 2.5;

 

1.1.3            “Affiliate”
means, with respect to a Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls or is Controlled
by such Person, or is under common Control of a third Person;

 

1.1.4            “Agreement”
means this Registration Rights Agreement;

 

    	 	 	 

     

    

 

1.1.5         “BBU”
has the meaning assigned to such term in the preamble;

 

1.1.6         “BBUC”
has the meaning assigned to such term in the preamble;

 

1.1.7         “Brookfield”
has the meaning assigned to such term in the preamble;

 

1.1.8         “Business
Day” means every day except a Saturday or Sunday, or a day which is a statutory or civic holiday in the Province of Ontario
or the State of New York;

 

1.1.9         “Canadian
Commissions” means the securities commissions or other securities regulatory authorities in each of the provinces and territories
of Canada and any successor regulatory authorities having similar powers and, to the extent applicable, in any such province or territory,
a federal securities commission or similar regulatory authority;

 

1.1.10       “Canadian
Securities Laws” means, collectively, the applicable securities legislation, regulations, rules, policies, blanket rulings,
decisions and orders of each of the provinces and territories of Canada and the Canadian Commissions;

 

1.1.11       “Control”
means the control by one Person of another Person in accordance with the following: a Person (“A”) controls another
Person (“B”) where A has the power to determine the management and policies of B by contract or status (for example,
the status of A being the general partner of B) or by virtue of the beneficial ownership of or control over a majority of the voting interests
in B; and, for greater certainty and without limitation, if A owns or has control over shares or other securities to which are attached
more than 50% of the votes permitted to be cast in the election of directors to the Governing Body of B, or A is the general partner of
B, a limited partnership, then in each case A Controls B for this purpose; and the term “Controlled” has the corresponding
meaning;

 

1.1.12       “Demand
Registration” has the meaning assigned to such term in Section  2.1.1(a);

 

1.1.13       “Demand
Request” has the meaning assigned to such term in Section 2.1.1(a);

 

1.1.14       “Demanding
Shareholders” has the meaning assigned to such term in Section 2.1.1(a);

 

1.1.15       “Effective”
means, in the case of a Registration Statement, a declaration by the SEC that such registration statement is effective, and in the case
of a Prospectus, the issuance by the applicable Canadian Commission of a receipt for the final prospectus;

 

1.1.16       “Effective
Date” means the date a Registration Statement or Prospectus becomes Effective;

 

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1.1.17        “Excluded
Registration” means a registration of (i) securities pursuant to one or more Demand Registrations pursuant to Section 2.1
hereof, (ii) securities registered under the U.S. Securities Act on Form S-8, (iii) securities registered to effect the
acquisition of, or combination with, another Person and (iv) securities pursuant to an exchange offer or any employee benefit or
dividend reinvestment plan;

 

1.1.18        “FINRA”
means Financial Industry Regulatory Authority, Inc.;

 

1.1.19        “Governing
Body” means (i) with respect to a corporation or limited company, the board of directors of such corporation or limited
company, (ii) with respect to a limited liability company, the manager(s), director(s) or managing partner(s) of such limited
liability company, (iii) with respect to a partnership, the board, committee or other body of each general partner or managing partner
of such partnership that serves a similar function (or if any such general partner or managing partner is itself a partnership, the board,
committee or other body of such general or managing partner’s general or managing partner that serves a similar function), and (iv) with
respect to any other Person, the body of such Person that serves a similar function, and in the case of each of (i) through (iv) includes
any committee or other subdivision of such body and any Person to whom such body has delegated any power or authority, including any officer
or managing director;

 

1.1.20        “Holder”
means (i) Brookfield, (ii) any subsidiary of Brookfield holding Registrable Shares, and (iii) any direct or indirect transferee
of Brookfield or any of its subsidiaries who shall become a party to this Agreement in accordance with Section 2.8 and has agreed
in writing to be bound by the terms of this Agreement, provided that “Holder” shall not include BBUC and its subsidiaries;

 

1.1.21        “Inspectors”
has the meaning assigned to such term in Section 2.4(m);

 

1.1.22        “Person”
means any natural person, partnership, limited partnership, limited liability partnership, joint venture, syndicate, sole proprietorship,
company or corporation (with or without share capital), limited liability company, unlimited liability company, joint stock company, unincorporated
association, trust, trustee, executor, administrator or other legal personal representative, regulatory body or agency, government or
governmental agency, authority or entity however designated or constituted and pronouns have a similarly extended meaning;

 

1.1.23        “Piggyback
Registration” has the meaning assigned to such term in Section 2.2.1;

 

1.1.24        “POP
Issuer” means an issuer eligible to use the POP System or equivalent system established from time to time by the Canadian Commissions;

 

1.1.25        “POP
System” means the prompt offering prospectus qualification system under National Instrument 44-101 of the Canadian Securities
Administrators entitled “Short Form Prospectus Distributions”;

 

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1.1.26            “Prospectus”
means a prospectus (including a Shelf Prospectus), including any amendment or supplement thereto, prepared in accordance with applicable
Canadian Securities Laws for the purpose of qualifying securities for distribution to the public in any province or territory of Canada;

 

1.1.27            “Records”
has the meaning assigned to such term in Section 2.4(m);

 

1.1.28            “register,”
 “registered” and “registration” refers to (i) a registration effected by preparing and filing
a registration statement in compliance with the U.S. Securities Act, and the declaration or ordering of the effectiveness of such registration
statement, and (ii) a qualification for distribution under Canadian Securities Laws effected by preparing and filing a Prospectus;

 

1.1.29            “Registrable
Shares” means the Shares owned by Holders from time to time, including Shares issuable to Holders on the conversion of securities
convertible, exchangeable or exercisable into Shares owned by a Holder, together with any securities owned by Holders issued with respect
to such Shares by way of dividend or split or in connection with a combination of shares, recapitalization, merger, consolidation, amalgamation,
arrangement or other reorganization; provided, however, that Shares that, pursuant to Section 3.1, no longer have registration rights
hereunder shall not be considered Registrable Shares;

 

1.1.30            “Registration
Statement” means a registration statement under the U.S. Securities Act (which includes any preliminary prospectus, prospectus,
prospectus supplement or free writing prospectus used in connection therewith);

 

1.1.31            “Requesting
Holders” shall mean any Holder(s) requesting to have its (their) Registrable Shares included in any Demand Registration
or Shelf Registration;

 

1.1.32            “Required
Filing Date” has the meaning assigned to such term in Section 2.1.1(b);

 

1.1.33            “SEC”
means the U.S. Securities and Exchange Commission or any other federal agency at the time administering the U.S. Securities Act;

 

1.1.34            “Securities
Laws” means Canadian Securities Laws and/or U.S. Securities Laws, as applicable;

 

1.1.35            “Seller
Affiliates” has the meaning assigned to such term in Section 2.7.1;

 

1.1.36            “Shares”
means class A exchangeable subordinate voting shares of BBUC;

 

1.1.37            “Shelf
Prospectus” means a shelf prospectus of BBUC filed with the Canadian Commissions under Canadian Securities Laws for offers and
secondary sales of Registrable Shares on a continuous basis;

 

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1.1.38            “Shelf
Registration” means a registration of the Registrable Shares under a registration statement pursuant to Rule 415 under
the U.S. Securities Act;

 

1.1.39            “Suspension
Notice” has the meaning assigned to such term in Section 2.5;

 

1.1.40            “U.S.
Exchange Act” means the United States Securities Exchange Act of 1934, as amended, or any similar federal statute, and
the rules and regulations promulgated by the SEC thereunder;

 

1.1.41            “U.S.
Securities Act” means the United States Securities Act of 1933, as amended, or any similar federal statute and the rules and
regulations promulgated by the SEC thereunder; and

 

1.1.42            “U.S.
Securities Laws” means, collectively, the securities laws of the United States, including the U.S. Exchange Act, the U.S. Securities
Act, state securities or “blue sky” laws within the United States, and all rules, regulations and ordinances promulgated thereunder.

 

		1.2	Headings and Table of Contents

 

The inclusion of headings
and a table of contents in this Agreement are for convenience of reference only and will not affect the construction or interpretation
hereof.

 

		1.3	Interpretation

 

In this Agreement, unless
the context otherwise requires:

 

1.3.1            words
importing the singular shall include the plural and vice versa, words importing gender shall include all genders or the neuter, and words
importing the neuter shall include all genders;

 

1.3.2            the
words “include”, “includes”, “including”, or any variations thereof, when following any general term
or statement, are not to be construed as limiting the general term or statement to the specific items or matters set forth or to similar
items or matters, but rather as referring to all other items or matters that could reasonably fall within the broadest possible scope
of the general term or statement;

 

1.3.3            references
to any Person include such Person’s successors and permitted assigns;

 

1.3.4            except
as otherwise provided in this Agreement, any reference in this Agreement to a statute, regulation, policy, rule or instrument shall
include, and shall be deemed to be a reference also to, all rules and regulations made under such statute, in the case of a statute,
all amendments made to such statute, regulation, policy, rule or instrument and to any statute, regulation, policy, rule or
instrument that may be passed which has the effect of supplementing or superseding the statute, regulation, policy, rule or instrument
so referred to;

 

    	 	5	 

     

    

 

1.3.5            any
reference to this Agreement or any other agreement, document or instrument shall be construed as a reference to this Agreement or, as
the case may be, such other agreement, document or instrument as the same may have been, or may from time to time be, amended, varied,
replaced, amended and restated, supplemented or otherwise modified;

 

1.3.6            in
the event that any day on which any amount is to be determined or any action is required to be taken hereunder is not a Business Day,
then such amount shall be determined or such action shall be required to be taken at or before the requisite time on the next succeeding
day that is a Business Day; and

 

1.3.7            except
where otherwise expressly provided, all amounts in this Agreement are stated and shall be paid in U.S. currency.

 

		1.4	Invalidity of Provisions

 

Each of the provisions contained
in this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any such provision or part thereof
by a court of competent jurisdiction will not affect the validity or enforceability of any other provision hereof. To the extent permitted
by applicable law, the parties waive any provision of law which renders any provision of this Agreement invalid or unenforceable in any
respect. The parties will engage in good faith negotiations to replace any provision which is declared invalid or unenforceable with a
valid and enforceable provision, the economic effect of which comes as close as possible to that of the invalid or unenforceable provision
which it replaces.

 

		1.5	Entire Agreement

 

This Agreement constitutes
the entire agreement between the parties pertaining to the subject matter of this Agreement. There are no warranties, conditions, or representations
(including any that may be implied by statute) and there are no agreements in connection with such subject matter except as specifically
set forth or referred to in this Agreement. No reliance is placed on any warranty, representation, opinion, advice or assertion of fact
made either prior to, contemporaneous with, or after entering into this Agreement, or any amendment or supplement hereto, by any party
to this Agreement or its directors, officers, employees or agents, to any other party to this Agreement or its directors, officers, employees
or agents, except to the extent that the same has been reduced to writing and included as a term of this Agreement, and none of the parties
to this Agreement has been induced to enter into this Agreement or any amendment or supplement by reason of any such warranty, representation,
opinion, advice or assertion of fact. Accordingly, there will be no liability, either in tort or in contract, assessed in relation to
any such warranty, representation, opinion, advice or assertion of fact, except to the extent contemplated above.

 

    	 	6	 

     

    

 

		1.6	Waiver, Amendment

 

Except as expressly provided
in this Agreement, no waiver of this Agreement will be binding unless executed in writing by the party to be bound thereby. No waiver
of any provision of this Agreement will constitute a waiver of any other provision nor will any waiver of any provision of this Agreement
constitute a continuing waiver unless otherwise expressly provided. A party’s failure or delay in exercising any right under this
Agreement will not operate as a waiver of that right. A single or partial exercise of any right will not preclude a party from any other
or further exercise of that right or the exercise of any other right. This Agreement may not be amended or modified in any respect except
by a written agreement signed by BBUC, BBU and Brookfield (so long as Brookfield owns any Shares) and the Holders of a majority of the
then outstanding Registrable Shares.

 

		1.7	Governing Law

 

This Agreement will be governed
by and interpreted and enforced in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.
Each party irrevocably attorns and submits to the non-exclusive jurisdiction of the Ontario courts situated in the City of Toronto and
waives objection to the venue of any proceeding in such court or any argument that such court provides an inconvenient forum.

 

Article 2

 

REGISTRATION
RIGHTS

 

		2.1	Demand Registration

 

2.1.1            Request
for Registration

 

		(a)	Commencing on the date hereof, any Holder shall have the right to require BBUC to file a Registration
Statement and/or a Prospectus for a public offering of all or part of its Registrable Shares (a “Demand Registration”),
by delivering to BBUC written notice stating that such right is being exercised, naming the Holders whose Registrable Shares are to be
included in such registration (collectively, the “Demanding Shareholders”), specifying the number of each such Demanding
Shareholder’s Registrable Shares to be included in such registration and, subject to Section 2.1.3 hereof, describing the intended
method of distribution thereof (a “Demand Request”).

 

		(b)	Each Demand Request shall specify the aggregate number of Registrable Shares proposed to be sold. Subject
to Section 2.1.6, BBUC shall file a Registration Statement and/or Prospectus in respect of a Demand Registration as soon as practicable
and, in any event, within forty-five (45) days after receiving a Demand Request (the “Required Filing Date”) and shall
use reasonable best efforts to cause the same to be declared Effective as promptly as practicable after such filing; provided, however,
that:

 

		(i)	BBUC shall not be obligated to file a Registration Statement or a Prospectus in respect of a Demand Registration
pursuant to Section 2.1.1(a) within sixty (60) days after the Effective Date of a previous Demand Registration, other than a
Shelf Registration pursuant to this Article 2; and

 

    	 	7	 

     

    

 

		(ii)	BBUC shall not be obligated to file a Registration Statement or a Prospectus in respect of a Demand Registration
pursuant to Section 2.1.1(a) unless the Demand Request is for (A) a number of Registrable Shares with a market value that
is equal to at least $50,000,000 as of the date of such Demand Request, or (B) all of the Registrable Shares then held by the Demanding
Shareholder.

 

2.1.2            Shelf
Registration. With respect to any Demand Registration, the Requesting Holders may request BBUC to file a Shelf Prospectus or effect
a Shelf Registration, provided that BBUC is permitted to do so under Canadian Securities Laws and/or U.S. Securities Laws, as applicable.

 

2.1.3            Selection
of Underwriters. At the request of a Requesting Holder, the offering of Registrable Shares pursuant to a Demand Registration shall
be in the form of a “firm commitment” underwritten offering. The Requesting Holder shall select the investment banking firm
or firms to manage the underwritten offering; provided that such selection shall be subject to the consent of BBUC, which consent shall
not be unreasonably withheld or delayed. No Holder may participate in any registration pursuant to Section 2.1.1 unless such Holder
(a) agrees to sell such Holder’s Registrable Shares on the basis provided in any underwriting arrangements described above
and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements; provided, however, that no such Holder shall be required to make any representations
or warranties in connection with any such registration other than representations and warranties as to (i) such Holder’s ownership
of Registrable Shares to be transferred free and clear of all liens, claims, and encumbrances, (ii) such Holder’s power and
authority to effect such transfer, and (iii) such matters pertaining to compliance with Securities Laws as may be reasonably requested;
provided, further, however, that the obligation of such Holder to indemnify pursuant to any such underwriting arrangements shall be several,
not joint and several, among such Holders selling Registrable Shares, and the liability of each such Holder will be in proportion thereto,
and provided, further, that such liability will be limited to the net amount received by such Holder from the sale of its Registrable
Shares pursuant to such registration.

 

2.1.4            Rights
of Non-Requesting Holders. Upon receipt of any Demand Request, BBUC shall promptly (but in any event within ten (10) days) give
written notice of such proposed Demand Registration to all other Holders, who shall have the right, exercisable by written notice to BBUC
within twenty (20) days of their receipt of BBUC’s notice, to elect to include in such Demand Registration such portion of their
Registrable Shares as they may request. All Holders requesting to have their Registrable Shares included in a Demand Registration in accordance
with the preceding sentence and all Demanding Shareholders shall be deemed to be “Requesting Holders” for purposes
of this Section 2.1. BBUC shall also have the right to issue and sell Shares in such Demand Registration, subject to Section 2.1.5.

 

    	 	8	 

     

    

 

2.1.5            Priority
on Demand Registrations. No securities to be sold for the account of any Person (including BBUC) other than a Requesting Holder shall
be included in a Demand Registration unless the managing underwriter or underwriters shall advise the Requesting Holders in writing that
the inclusion of such securities will not adversely affect the price, timing or distribution of the offering or otherwise adversely affect
its success (an “Adverse Effect”). Furthermore, if the managing underwriter or underwriters shall advise the Requesting
Holders that, even after exclusion of all securities of other Persons (including BBUC) pursuant to the immediately preceding sentence,
the amount of Registrable Shares proposed to be included in such Demand Registration by Requesting Holders is sufficiently large to cause
an Adverse Effect, the Registrable Shares of the Requesting Holders to be included in such Demand Registration shall equal the number
of Registrable Shares which the Requesting Holders are so advised can be sold in such offering without an Adverse Effect and such Registrable
Shares shall be allocated pro rata among the Requesting Holders on the basis of the number of Registrable Shares requested to be included
in such registration by each such Requesting Holder.

 

2.1.6            Deferral
of Filing. BBUC may defer the filing (but not the preparation) of a Registration Statement or Prospectus, as applicable, required
by Section 2.1 until a date not later than ninety (90) days after the Required Filing Date if (a) at the time BBUC receives
the Demand Request, BBUC is engaged in confidential negotiations or other confidential activities, disclosure of which would be required
in such Registration Statement or Prospectus, as applicable (but would not be required if such Registration Statement or Prospectus, as
applicable, were not filed), and the Board of Directors of BBUC determines in good faith that such disclosure would be materially detrimental
to BBUC and its shareholders, (b) prior to receiving the Demand Request, BBUC had determined to effect a registered underwritten
public offering of BBUC’s securities for BBUC’s account and BBUC has taken substantial steps (including, but not limited to,
selecting a managing underwriter for such offering) and is proceeding with reasonable diligence to effect such offering, or (c) at
the time BBUC receives the Demand Request, BBUC is currently engaged in a self-tender or exchange offer and the filing of a Registration
Statement or Prospectus, as applicable, would cause a violation of applicable Securities Laws. A deferral of the filing of a Registration
Statement or Prospectus, as applicable, pursuant to this Section 2.1.6 shall be lifted, and the requested Registration Statement
or Prospectus, as applicable, shall be filed forthwith, if, in the case of a deferral pursuant to clause (a) of the preceding sentence,
the negotiations or other activities are disclosed, otherwise become publicly known, or are terminated, or, in the case of a deferral
pursuant to clause (b) of the preceding sentence, the proposed registration for BBUC’s account is abandoned. In order to defer
the filing of a Registration Statement or Prospectus, as applicable, pursuant to this Section 2.1.6, BBUC shall promptly (but in
any event within ten (10) days), upon determining to seek such deferral, deliver to the Requesting Holders a certificate signed by
an officer of BBUC or the Board of Directors of BBUC stating that BBUC is deferring such filing pursuant to this Section 2.1.6 and
a general statement of the reason for such deferral and an approximation of the anticipated delay. Within twenty (20) days after receiving
such certificate, the Requesting Holder may withdraw such Demand Request by giving notice to BBUC; if withdrawn, the Demand Request shall
be deemed not to have been made for all purposes of this Agreement. BBUC may defer the filing of a particular Registration Statement or
Prospectus, as applicable, pursuant to this Section 2.1.6 only once.

 

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		2.2	Piggyback Registrations

 

2.2.1            Right
to Piggyback. Each time BBUC proposes to (a) register any of its equity securities (other than pursuant to an Excluded Registration)
under Canadian Securities Laws or U.S. Securities Laws for sale to the public (whether for the account of BBUC or the account of any securityholder
of BBUC or (b) sell any of its equity securities (other than pursuant to an Excluded Registration) and with respect to which a Shelf
Registration or Shelf Prospectus is expressly being utilized to effect such sale, (clause (a) and (b) are each referred to as
a “Piggyback Registration”), BBUC shall give prompt written notice to each Holder of Registrable Shares, which notice
shall offer each such Holder the opportunity to include any or all of its Registrable Shares in such Registration Statement, Shelf Registration
or Prospectus, as applicable, subject to the limitations contained in Section 2.2.2 hereof. Each Holder who desires to have its Registrable
Shares included in such Registration Statement, Shelf Registration or Prospectus, as applicable, shall so advise BBUC in writing (stating
the number of Registrable Shares desired to be registered) within three (3) days after the date of such notice from BBUC (or within
one (1) Business Day in the case of a “bought deal” financing). Any Holder shall have the right to withdraw such Holder’s
request for inclusion of such Holder’s Registrable Shares in any Registration Statement, Shelf Registration or Prospectus, as applicable,
pursuant to this Section 2.2.1 by giving written notice to BBUC of such withdrawal provided, however, that such request is made prior
to the execution of an underwriting agreement (or similar agreement) with respect to such offering. Subject to Section 2.2.2 below,
BBUC shall include in such Registration Statement, Shelf Registration or Prospectus, as applicable, all such Registrable Shares so requested
to be included therein; provided, however, that BBUC may at any time withdraw or cease proceeding with any such registration or sale if
it shall at the same time withdraw or cease proceeding with the registration or sale of all other equity securities originally proposed
to be registered or sold. Each Holder shall protect and maintain the confidentiality of all information communicated to it by BBUC concerning
a proposed Piggyback Registration pursuant to this Section 2.2.1 until such information becomes available in the public domain.

 

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2.2.2            Priority
on Piggyback Registrations

 

		(a)	If a Piggyback Registration is an underwritten offering, and if the managing underwriter advises BBUC
that the inclusion of Registrable Shares requested to be included in a Registration Statement, Shelf Registration or Prospectus, as applicable,
would cause an Adverse Effect, BBUC shall only be required to include such number of Registrable Shares in such Registration Statement,
Shelf Registration or Prospectus, as applicable, as such underwriter advises in writing would not cause an Adverse Effect, with priority
given as follows: (i) first, the securities BBUC proposes to sell, (ii) second, the Registrable Shares requested to be included
in such Registration Statement, Shelf Registration or Prospectus, pro rata among the Holders of such Registrable Shares on the basis of
the number of Registrable Shares owned by each such Holder, and (iii) third, any other securities requested to be included in such
Registration Statement, Shelf Registration or Prospectus. If as a result of the provisions of this Section 2.2.2(a) any Holder
shall not be entitled to include all Registrable Shares in a Registration Statement, Shelf Registration or Prospectus that such Holder
has requested to be so included, such Holder may withdraw such Holder’s request to include Registrable Shares in such Registration
Statement, Shelf Registration or Prospectus, as applicable.

 

		(b)	No Holder may participate in any Registration Statement, Shelf Registration or Prospectus, as applicable,
in respect of a Piggyback Registration hereunder unless such Holder (i) agrees to sell such Holder’s Registrable Shares on
the basis provided in any underwriting arrangements approved by BBUC and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents, each in customary form, reasonably required under the terms of such
underwriting arrangements; provided, however, that no such Holder shall be required to make any representations or warranties in connection
with any such registration other than representations and warranties as to (A) such Holder’s ownership of Registrable Shares
to be sold or transferred free and clear of all liens, claims, and encumbrances, (B) such Holder’s power and authority to effect
such transfer, and (C) such matters pertaining to compliance with applicable Securities Laws as may be reasonably requested; provided,
further, however, that the obligation of such Holder to indemnify pursuant to any such underwriting arrangements shall be several, not
joint and several, among such Holders selling Registrable Shares, and the liability of each such Holder will be in proportion thereto,
and provided, further, that such liability will be limited to the net amount received by such Holder from the sale of its Registrable
Shares pursuant to such Registration Statement, Shelf Registration or Prospectus.

 

		2.3	Short-Form Filings

 

		(a)	Shelf Registration Statement. BBUC shall use its reasonable best efforts to cause Demand Registrations
in the United States to be registered on a shelf registration statement on an appropriate form (including, but not limited to, Form F-10,
Form F-3 or Form S-3, as may be applicable, or their successor forms, but excluding Form S-8, Form S-4 or Form F-4,
or their successor forms, or any other form for a similar purpose) once BBUC becomes eligible to use any such form, and BBUC shall use
its reasonable best efforts to remain so eligible to use any such form.

 

    	 	11	 

     

    

 

		(b)	Short-Form Prospectus. BBUC shall use its reasonable best efforts to cause Demand Registrations
in Canada to be qualified by way of a short-form Prospectus prepared pursuant to the POP System if, at the time of such Demand Registration,
BBUC is a POP Issuer and is able to do so in all of the provinces and territories in which the Demand Registration is to be effected.
For greater certainty, it is acknowledged that in the event that BBUC is not a POP Issuer or is unable to utilize the POP System in one
or more Canadian provinces or territories in which the Demand Registration is to be effected, BBUC shall proceed by way of long-form Prospectus.

 

		2.4	Registration Procedures

 

Whenever any Holder has requested
that any Registrable Shares be registered pursuant to this Agreement, BBUC will use its reasonable best efforts to effect the registration
and the sale of such Registrable Shares in accordance with the intended method of disposition thereof as promptly as is practicable, and
pursuant thereto BBUC will as expeditiously as possible:

 

		(a)	prepare and file, pursuant to Section 2.1.1(b) with respect to any Demand Registration, subject
to Section 2.3, a Registration Statement or Prospectus, as applicable, with respect to such Registrable Shares and use its reasonable
best efforts to cause such Registration Statement or Prospectus, as applicable, to become Effective; provided that as far in advance as
practicable before filing such Registration Statement or Prospectus, as applicable, or any amendment or supplement thereto, BBUC will
furnish to the selling Holders copies of reasonably complete drafts of all such documents prepared to be filed (including exhibits), and
any such Holder shall have the opportunity to object to any information contained therein and BBUC will make corrections reasonably requested
by such Holder with respect to such information prior to filing any such Registration Statement or Prospectus, as applicable, or any amendment
or supplement thereto;

 

		(b)	except in the case of a Shelf Registration or Shelf Prospectus, prepare and file with the SEC or the applicable
Canadian Commissions, such amendments, post-effective amendments and supplements to such Registration Statement or Prospectus, as applicable,
as may be necessary to keep such Registration Statement or Prospectus, as applicable, effective for a period of not less than one hundred
eighty (180) days (or such lesser period as is necessary for the underwriters in an underwritten offering to sell unsold allotments) and
comply with the provisions of the applicable Securities Laws with respect to the disposition of all securities covered by such Registration
Statement or Prospectus, as applicable, during such period in accordance with the intended methods of disposition by the sellers thereof
set forth in such Registration Statement or Prospectus, as applicable;

 

    	 	12	 

     

    

 

		(c)	in the case of a Shelf Registration or Shelf Prospectus, prepare and file with the SEC or the applicable
Canadian Commissions, as applicable, such amendments and supplements to such Shelf Registration or Shelf Prospectus, as applicable, as
may be necessary to keep such Shelf Registration or Shelf Prospectus, as applicable, effective and to comply with the provisions of the
applicable Securities Laws with respect to the disposition of all Registrable Shares subject thereto for a period ending on the earlier
of (i) twenty four (24) months after the Effective Date and (ii) the date on which all the Registrable Shares subject thereto
have been sold pursuant to such Shelf Registration or Shelf Prospectus, as applicable;

 

		(d)	furnish to each seller of Registrable Shares and the underwriters of the securities being registered such
number of copies of such Registration Statement, Shelf Registration or Prospectus, as applicable (in the English language and, if required,
the French language), each amendment and supplement thereto, any documents incorporated by reference therein and such other documents
as such seller or underwriters may reasonably request in order to facilitate the disposition of the Registrable Shares owned by such seller
or the sale of such securities by such underwriters (it being understood that, subject to Section 2.5 and the requirements of the
applicable Securities Laws, BBUC consents to the use of the Registration Statement, Shelf Registration and Prospectus, as applicable,
and any amendment or supplement thereto by each seller and the underwriters in connection with the offering and sale of the Registrable
Shares covered by the Registration Statement, Shelf Registration or Prospectus, as applicable);

 

		(e)	use its reasonable best efforts to register or qualify such Registrable Shares under such other securities
or “blue sky” laws of such jurisdictions as the managing underwriter reasonably requests (or, in the event the Registration
Statement, Shelf Registration or Prospectus, as applicable, does not relate to an underwritten offering, as the holders of a majority
of such Registrable Shares may reasonably request); use its reasonable best efforts to keep each such registration or qualification (or
exemption therefrom) effective during the period in which such Registration Statement, Shelf Registration or Prospectus, as applicable,
is required to be kept effective; and do any and all other acts and things which may be reasonably necessary or advisable to enable each
seller to consummate the disposition of the Registrable Shares owned by such seller in such jurisdictions (provided, however, that BBUC
will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify
but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction, or (iii) consent to general service of
process in any such jurisdiction);

 

    	 	13	 

     

    

 

		(f)	notify each seller of Registrable Shares and each underwriter and (if requested by any such Person) confirm
such notice in writing (i) when any supplement or amendment to the Registration Statement, Shelf Registration or Prospectus, as applicable,
has been filed following the Effective Date, and when the same has become effective, (ii) of the issuance by any state securities
or other regulatory authority of any order suspending the qualification or exemption from qualification of any of the Registrable Shares
under state securities or “blue sky” laws or the initiation of any proceedings for that purpose, and (iii) of the happening
of any event which makes any statement made in the Registration Statement, Shelf Registration or Prospectus, as applicable, untrue or
which requires the making of any changes in such Registration Statement, Shelf Registration or Prospectus, as applicable, or documents
so that they will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, and, as promptly as practicable thereafter, prepare and file with the SEC
and the applicable Canadian Commissions (as applicable) and furnish a supplement or amendment to such Registration Statement, Shelf Registration
or Prospectus, as applicable, so that, as thereafter deliverable to the purchasers of such Registrable Shares, such Registration Statement,
Shelf Registration or Prospectus, as applicable, will not contain any untrue statement of a material fact or omit a material fact necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading;

 

		(g)	permit any selling Holder, which in such Holder’s sole and exclusive judgment, might reasonably
be deemed to be an underwriter or a controlling person of BBUC, to participate in the preparation of such Registration Statement, Shelf
Registration or Prospectus, as applicable, and to require the insertion therein of material, furnished to BBUC in writing, which in the
reasonable judgment of such Holder and its counsel should be included;

 

		(h)	make reasonably available personnel, as selected by the Holders of a majority of the Registrable Shares
included in such registration, for assistance in the selling effort relating to the Registrable Shares covered by such registration, including,
but not limited to, the participation of such members of BBUC’s management in road show presentations;

 

		(i)	otherwise use its reasonable best efforts to comply with all applicable Securities Laws, and make generally
available to BBUC’s securityholders an earnings statement satisfying the provisions of Section 11(a) of the U.S. Securities
Act no later than thirty (30) days after the end of the twelve (12) month period beginning with the first day of BBUC’s first fiscal
quarter commencing after the Effective Date, which earnings statement shall cover said twelve (12) month period, and which requirement
will be deemed to be satisfied if BBUC timely files complete and accurate information on Forms 20-F and 6-K under the Exchange Act which
otherwise complies with Rule 158 under the U.S. Securities Act;

 

		(j)	if requested by the managing underwriter or any seller of Registrable Shares, promptly incorporate in
a prospectus supplement or post-effective amendment such information as the managing underwriter or any seller reasonably requests to
be included therein, including, without limitation, with respect to the Registrable Shares being sold by such seller, the purchase price
being paid therefor by the underwriters and with respect to any other terms of the underwritten offering of the Registrable Shares to
be sold in such offering, and promptly make all required filings of such prospectus supplement or post-effective amendment;

 

    	 	14	 

     

    

 

		(k)	after filing of any document which is incorporated by reference into the Registration Statement or Prospectus,
as applicable (in the form in which it was incorporated), deliver a copy of each such document to each seller of Registrable Shares;

 

		(l)	cooperate with the sellers of Registrable Shares and the managing underwriter to facilitate the timely
preparation and delivery of certificates (which shall not bear any restrictive legends unless required under applicable law) representing
securities sold under any Registration Statement or Prospectus, as applicable, and enable such securities to be in such denominations
and registered in such names as the managing underwriter or such sellers may request and keep available and make available to BBUC’s
transfer agent prior to the Effective Date a supply of such certificates;

 

		(m)	make available for inspection by any seller of Registrable Shares, any underwriter participating in any
disposition pursuant to any Registration Statement or Prospectus, as applicable, and any attorney, accountant or other agent or representative
retained by any such seller or underwriter (collectively, the “Inspectors”), all financial and other records, pertinent
corporate documents and properties of BBUC (collectively, the “Records”), as shall be reasonably necessary to enable
them to exercise their due diligence responsibility, and cause BBUC’s officers, directors and employees to supply all information
requested by any such Inspector in connection with such Registration Statement or Prospectus, as applicable; provided, however, that,
unless the disclosure of such Records is necessary to avoid or correct a misstatement or omission in the Registration Statement or Prospectus,
as applicable, or the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction,
BBUC shall not be required to provide any information under this subparagraph (m) if (i) BBUC believes, after consultation with
counsel for BBUC, that to do so would cause BBUC to forfeit an attorney-client privilege that was applicable to such information or (ii) if
either (x) BBUC has requested and been granted from the SEC or a Canadian Commission confidential treatment of such information contained
in any filing with the SEC or a Canadian Commission or documents provided supplementally or otherwise or (y) BBUC reasonably determines
in good faith that such Records are confidential and so notifies the Inspectors in writing, unless prior to furnishing any such information
with respect to clause (ii) such Holder of Registrable Shares requesting such information agrees to enter into a confidentiality
agreement in customary form and subject to customary exceptions; and provided, further, that each Holder of Registrable Shares agrees
that it will, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to BBUC and allow
BBUC, at its expense, to undertake appropriate action and to prevent disclosure of the Records deemed confidential;

 

    	 	15	 

     

    

 

		(n)	furnish to each seller of Registrable Shares and underwriter a signed counterpart of (i) an opinion
or opinions of counsel to BBUC, (ii) a comfort letter or comfort letters from BBUC’s independent auditors, addressed to the
underwriters, each in customary form and covering such matters of the type customarily covered by opinions or comfort letters, as the
case may be, as the managing underwriter reasonably requests, and (iii) if a Prospectus is filed in Quebec, opinions of Quebec counsel
to BBUC and the auditors of BBUC addressed to the Holder and the underwriter or underwriters of such distribution relating to the translation
of the Prospectus;

 

		(o)	cause the Registrable Shares included in any Prospectus or Registration Statement, as applicable, to be
listed on the Toronto Stock Exchange and on the New York Stock Exchange;

 

		(p)	provide and cause to be maintained a transfer agent and registrar for all Registrable Shares registered
hereunder;

 

		(q)	cooperate with each seller of Registrable Shares and each underwriter participating in the disposition
of such Registrable Shares and their respective counsel in connection with any filings required to be made with FINRA;

 

		(r)	during the period when the Registration Statement or Prospectus, as applicable, is required to be delivered
under the applicable Securities Laws, promptly file all documents required to be filed with the SEC pursuant to Sections 13(a), 13(c),
14 or 15(d) of the Exchange Act or with the Canadian Commissions pursuant to Canadian Securities Laws;

 

		(s)	notify each seller of Registrable Shares promptly of any request by the SEC or a Canadian Commission for
the amending or supplementing of such Registration Statement or Prospectus, as applicable, or for additional information;

 

		(t)	enter into such agreements (including underwriting agreements in the managing underwriter’s customary
form) as are customary in connection with an underwritten registration; and

 

		(u)	advise each seller of such Registrable Shares, promptly after it shall receive notice or obtain knowledge
thereof, of the issuance of any stop order or ruling by the SEC or a Canadian Commission suspending the effectiveness of such Registration
Statement or Prospectus, as applicable, or the initiation or threatening of any proceeding for such purpose and promptly use its reasonable
best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order
should be issued.

 

    	 	16	 

     

    

 

		2.5	Suspension of Dispositions

 

Each Holder agrees by acquisition
of any Registrable Shares that, upon receipt of any notice (a “Suspension Notice”) from BBUC of the happening of any
event of the kind described in Section 2.4(f)(iii) such Holder will forthwith discontinue disposition of Registrable Shares
until such Holder’s receipt of the copies of the supplemented or amended Registration Statement or Prospectus, as applicable, or
until it is advised in writing (the “Advice”) by BBUC that the use of the Registration Statement or Prospectus, as
applicable, may be resumed, and has received copies of any additional or supplemental filings which are incorporated by reference in the
Registration Statement or Prospectus, as applicable, and, if so directed by BBUC, such Holder will deliver to BBUC all copies, other than
permanent file copies then in such Holder’s possession, of the Registration Statement or Prospectus, as applicable, covering such
Registrable Shares current at the time of receipt of such notice. In the event BBUC shall give any such notice, the time period regarding
the effectiveness of Registration Statements or Prospectuses, as applicable, set forth in Sections 2.4(b) and 2.4(c) hereof
shall be extended by the number of days during the period from and including the date of the giving of the Suspension Notice to and including
the date when each seller of Registrable Shares covered by such Registration Statement or Prospectus, as applicable, shall have received
the copies of the supplemented or amended Registration Statement or Prospectus, as applicable, or the Advice. BBUC shall use its reasonable
best efforts and take such actions as are reasonably necessary to render the Advice as promptly as practicable.

 

		2.6	Registration Expenses

 

All fees and expenses incident
to any registration including, without limitation, BBUC’s performance of or compliance with this Article 2, all registration
and filing fees, all fees and expenses associated with filings required to be made with FINRA (including, if applicable, the reasonable
fees and expenses of any “qualified independent underwriter” and of its counsel), as may be required by the rules and
regulations of FINRA, fees and expenses of compliance with securities or “blue sky” laws (including reasonable fees and disbursements
of counsel in connection with “blue sky” qualifications of the Registrable Shares), rating agency fees, printing expenses
(including expenses of printing certificates for the Registrable Shares and of printing prospectuses), messenger and delivery expenses,
the fees and expenses incurred in connection with any listing or quotation of the Registrable Shares, fees and expenses of counsel for
BBUC and its independent auditors (including the expenses of any special audit or “cold comfort” letters required by or incident
to such performance), the fees and expenses of any special experts retained by BBUC in connection with such registration, and the fees
and expenses of other persons retained by BBUC, will be borne by BBUC (unless paid by a security holder that is not a Holder for whose
account the registration is being effected) whether or not any Registration Statement or Prospectus becomes Effective; provided, however,
that any underwriting discounts, commissions, or fees attributable to the sale of the Registrable Shares will be borne by the Holders
pro rata on the basis of the number of Shares so registered and the fees and expenses of any counsel, accountants, or other persons retained
or employed by any Holder will be borne by such Holder.

 

    	 	17	 

     

    

 

		2.7	Indemnification

 

2.7.1            BBUC
agrees to indemnify and reimburse, to the fullest extent permitted by law, each seller of Registrable Shares, and each of its employees,
advisors, agents, representatives, partners, officers, and directors and each Person who Controls such seller and any agent or investment
advisor thereof (collectively, the “Seller Affiliates”) (a) against any and all losses, claims, damages, liabilities,
and expenses, joint or several (including, without limitation, reasonable attorneys’ fees and disbursements except as limited by
Section 2.7.3) based upon, arising out of, related to or resulting from any untrue or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus or any amendment thereof or supplement thereto, or any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein not misleading, (b) against any and
all loss, liability, claim, damage, and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any
litigation or investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based
upon, arising out of, related to or resulting from any such untrue statement or omission or alleged untrue statement or omission, and
(c) against any and all costs and expenses (including reasonable fees and disbursements of counsel) as may be reasonably incurred
in investigating, preparing, or defending against any litigation, or investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever based upon, arising out of, related to or resulting from any such untrue statement or omission
or alleged untrue statement or omission, or violation of the Securities Laws, to the extent that any such expense or cost is not paid
under subparagraph (a) or (b) above; except insofar as any such statements are made in reliance upon and in strict conformity
with information furnished in writing to BBUC by such seller or any Seller Affiliate for use therein or arise from such seller’s
or any Seller Affiliate’s failure to deliver a copy of the Registration Statement or Prospectus or any amendments or supplements
thereto after BBUC has furnished such seller or Seller Affiliate with a sufficient number of copies of the same. The reimbursements required
by this Section 2.7.1 will be made by periodic payments during the course of the investigation or defense, as and when bills are
received or expenses incurred.

 

2.7.2            In
connection with any Registration Statement or Prospectus in which a seller of Registrable Shares is participating, each such seller will
furnish to BBUC and/or BBU in writing such information and affidavits as BBUC and/or BBU reasonably requests for use in connection with
any such Registration Statement or Prospectus, as applicable, and, to the fullest extent permitted by law, each such seller will indemnify
BBUC, BBU and each of their respective employees, advisors, agents, representatives, partners, officers and directors and each Person
who Controls BBUC or BBU, as applicable (excluding such seller or any Seller Affiliate) and any agent or investment advisor thereof against
any and all losses, claims, damages, liabilities, and expenses (including, without limitation, reasonable attorneys’ fees and disbursements
except as limited by Section 2.7.3) resulting from any untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement or Prospectus, as applicable, or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the
extent that such untrue statement or alleged untrue statement or omission or alleged omission is contained in any information or affidavit
so furnished in writing by such seller or any of its Seller Affiliates specifically for inclusion in the Registration Statement or Prospectus,
as applicable; provided that the obligation to indemnify will be several, not joint and several, among such sellers of Registrable Shares,
and the liability of each such seller of Registrable Shares will be in proportion to, and will be limited to, the net amount received
by such seller from the sale of Registrable Shares pursuant to such Registration Statement or Prospectus, as applicable; provided, however,
that such seller of Registrable Shares shall not be liable in any such case to the extent that prior to the filing of any such Registration
Statement or Prospectus, as applicable, or amendment thereof or supplement thereto, such seller has furnished in writing to BBUC and/or
BBU information expressly for use in such Registration Statement or Prospectus, as applicable, or any amendment thereof or supplement
thereto which corrected or made not misleading information previously furnished to BBUC and/or BBU.

 

    	 	18	 

     

    

 

2.7.3            Any
Person entitled to indemnification hereunder will (a) give prompt written notice to the indemnifying party of any claim with respect
to which it seeks indemnification (provided that the failure to give such notice shall not limit the rights of such Person) and (b) unless
in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist
with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to
the indemnified party; provided, however, that any person entitled to indemnification hereunder shall have the right to employ separate
counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such person
unless (i) the indemnifying party has agreed to pay such fees or expenses, (ii) the indemnifying party shall have failed to
assume the defense of such claim and employ counsel reasonably satisfactory to such person, or (iii) such counsel has been retained
due to a conflict as described below. If such defense is not assumed by the indemnifying party as permitted hereunder, the indemnifying
party will not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will
not be unreasonably withheld or delayed). If such defense is assumed by the indemnifying party pursuant to the provisions hereof, such
indemnifying party shall not settle or otherwise compromise the applicable claim unless (A) such settlement or compromise contains
a full and unconditional release of the indemnified party without any admission of liability on the part of such indemnified party or
(B) the indemnified party otherwise consents in writing. An indemnifying party who is not entitled to, or elects not to, assume the
defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying
party with respect to such claim (together with appropriate local counsel), unless in the reasonable judgment of any indemnified party,
a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim,
in which event the indemnifying party shall be obligated to pay the reasonable fees and disbursements of such additional counsel or counsels.

 

    	 	19	 

     

    

 

2.7.4            Each
party hereto agrees that, if for any reason the indemnification provisions contemplated by Section 2.7.1 or Section 2.7.2 are
unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities, or expenses
(or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, liabilities, or expenses (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the actions which resulted
in the losses, claims, damages, liabilities or expenses as well as any other relevant equitable considerations. The relative fault of
such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by such indemnifying
party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.7.4
were determined by pro rata allocation (even if the Holders or any underwriters or all of them were treated as one entity for such purpose)
or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 2.7.4.
The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities, or expenses (or actions in
respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified
party in connection with investigating or, except as provided in Section 2.7.3, defending any such action or claim. Notwithstanding
the provisions of this Section 2.7.4, no Holder shall be required to contribute an amount greater than the dollar amount by which
the net proceeds received by such Holder with respect to the sale of any Registrable Shares exceeds the amount of damages which such Holder
has otherwise been required to pay by reason of any and all untrue or alleged untrue statements of material fact or omissions or alleged
omissions of material fact made in any Registration Statement or Prospectus, as applicable, or any amendment thereof or supplement thereto
related to such sale of Registrable Shares. No person guilty of fraudulent misrepresentation shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations in this Section 2.7.4 to contribute
shall be several in proportion to the amount of Registrable Shares registered by them and not joint.

 

2.7.5            If
indemnification is available under this Section 2.7, the indemnifying parties shall indemnify each indemnified party to the full
extent provided in Section 2.7.1 and Section 2.7.2 without regard to the relative fault of said indemnifying party or indemnified
party or any other equitable consideration provided for in Section 2.7.4 subject, in the case of the Holders, to the limited dollar
amounts set forth in Section 2.7.2.

 

    	 	20	 

     

    

 

2.7.6            The
indemnification and contribution provided for under this Agreement will remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party or any officer, director, or controlling Person of such indemnified party and will survive
the transfer of securities.

 

		2.8	Transfer of Registration Rights

 

The rights of each Holder
under this Agreement may, in the Holder’s discretion, be assigned, in whole or in part, to any direct or indirect transferee of
all or any portion of such Holder’s Registrable Shares who agrees in writing to be subject to and bound by all the terms and conditions
of this Agreement. For greater certainty, in the case of a transfer of less than all of such Holder’s Registrable Shares, no such
assignment will limit or otherwise impair the transferor’s rights under this Agreement.

 

		2.9	Current Public Information

 

BBUC will file the reports
required to be filed by it under applicable Securities Laws (or, if BBUC is not required to file such reports, will, upon the request
of the Holders, make publicly available other information) and will take such further action as any of the Holders may reasonably request,
all to the extent required from time to time to enable the Holders to sell Registrable Securities without registration under, and subject
to the limitations of, applicable Securities Laws. Upon the reasonable request of any Holder, BBUC will deliver to such parties a written
statement as to whether it has complied with such requirements and will, at its expense, forthwith upon the request of any such Holder,
deliver to such Holder a certificate, signed by an officer, stating (a) BBUC’s name, address and telephone number (including
area code), (b) BBUC’s Internal Revenue Service identification number and Business Number issued by the Canada Revenue Agency,
(c) BBUC’s SEC and SEDAR file numbers, (d) the number of Shares outstanding as shown by the most recent report or statement
published by BBUC, and (e) whether BBUC has filed the reports required to be filed under the applicable Securities Laws for a period
or at least ninety (90) days prior to the date of such certificate and in addition has filed the most recent annual report required to
be filed thereunder.

 

		2.10	Preservation of Rights

 

BBUC will not directly or
indirectly (a) grant any registration rights to third parties which are more favorable than or inconsistent with the rights granted
hereunder or (b) enter into any agreement, take any action, or permit any change to occur, with respect to its securities that violates
or subordinates the rights expressly granted to the Holders in this Agreement.

 

		2.11	Obligations of BBU

 

Whenever any Holder has requested
that any Registrable Shares be registered in accordance with the terms of this Agreement, BBU shall (i) cooperate with BBUC to satisfy
BBUC’s obligations pursuant to this Agreement and participate in the preparation, as necessary, of a Registration Statement and/or
Prospectus by BBUC and (ii) take any and all such actions as may be required under this Agreement and/or applicable Securities Laws
to register the underlying limited partnership units of BBU that may be issued upon an exchange, redemption or purchase of Shares, or
as a result of the liquidation, dissolution or winding up of BBUC or BBU. The provisions of the registration rights agreement between
BBU and Brookfield dated June 1, 2016 (as amended, the “BBU-Brookfield Registration Rights Agreement”), other
than sections 2.1.1(b)(i) and 2.1.1(b)(ii) thereof, shall apply to the registration of any underlying limited partnership units
of BBU that may be delivered by Brookfield to a holder of Shares upon an exchange of Shares, mutatis mutandis, and the preparation
of a Registration Statement and/or Prospectus by BBU in connection therewith shall be deemed to be a “Demand Registration”
under the BBU-Brookfield Registration Rights Agreement without the need for Brookfield to take any further action thereunder.

 

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Article 3

 

TERMINATION

 

		3.1	Termination

 

The Holders may exercise the
registration rights granted hereunder in such manner and proportions as they shall agree among themselves. The registration rights hereunder
shall cease to apply to any particular Registrable Shares when: (a) a Registration Statement or Prospectus, as applicable, with respect
to the sale of such Shares (or other securities) shall have become Effective and such Shares shall have been disposed of in accordance
with such Registration Statement or Prospectus, as applicable; (b) such Shares (or other securities) shall have been sold to the
public pursuant to an exemption under applicable Securities Laws; (c) such Shares (or other securities) shall have been otherwise
transferred, new certificates for them not bearing a legend restricting further transfer shall have been delivered by BBUC and subsequent
public distribution of them shall not require registration under applicable Securities Laws; (d) such Shares (or other securities)
shall have ceased to be outstanding; or (e) such Registrable Shares are eligible for sale pursuant to Rule 144(b)(1) (without
the requirement for BBUC to be in compliance with the current public information required under Rule 144) under the U.S. Securities
Act. BBUC shall promptly upon the request of any Holder furnish to such Holder evidence of the number of Registrable Shares then outstanding.

 

Article 4

 

MISCELLANEOUS

 

		4.1	Enurement

 

This Agreement will enure
to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

 

    	 	22	 

     

    

 

		4.2	Notices

 

Any notice or other communication
required or permitted to be given hereunder will be in writing and will be given by prepaid first-class mail, by facsimile or other means
of electronic communication, including e-mail, or by hand-delivery as hereinafter provided. Any such notice or other communication, if
mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lockout or
otherwise, will be deemed to have been received on the fourth Business Day after the post-marked date thereof, or if sent by facsimile
or other means of electronic communication, will be deemed to have been received on the Business Day following the sending, or if delivered
by hand 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. In the event of a general discontinuance of postal service due to strike,
lock-out or otherwise, notices or other communications will be delivered by hand or sent by facsimile or other means of electronic communication
and will be deemed to have been received in accordance with this section. Notices and other communications will be addressed as follows:

 

4.2.1       if
to Brookfield:

 

Brookfield Asset
Management Inc.

Brookfield Place,
181 Bay Street

Suite 300,
P.O. Box 762

Toronto, Ontario
M5J 2T3

 

Attention:     Chief
Legal Officer

 

4.2.2       if
to BBUC:

 

Brookfield Business Corporation

250 Vesey Street, 15th Floor

New York, NY 10281-1023

 

Attention:     Chief
Financial Officer

 

4.2.3       if
to BBU:

 

Brookfield Business Partners L.P.

73 Front Street, 5th Floor

Hamilton HM12, Bermuda

 

Attention:     Chief
Financial Officer

 

or to such other addresses as a party may from
time to time notify the other in accordance with this Section 4.2.

 

If to any other Holder, the
address indicated for such Holder in BBUC’s stock transfer records with copies, so long as Brookfield owns any Registrable Shares,
to Brookfield as provided above.

 

    	 	23	 

     

    

 

		4.3	Authority

 

Each of the parties hereto
represents to the other that (a) it has the corporate power and authority to execute, deliver and perform this Agreement, (b) the
execution, delivery and performance of this Agreement by it has been duly authorized by all necessary corporate action and no such further
action is required, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid
and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and general equity principles.

 

		4.4	Further Assurances

 

Each of the parties hereto
will promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things
as the other party hereto may reasonably require from time to time for the purpose of giving effect to this Agreement and will use commercially
reasonable efforts and take all such steps as may be reasonably within its power to implement to their full extent the provisions of this
Agreement.

 

		4.5	Counterparts

 

This Agreement may be signed
in counterparts and each of such counterparts will constitute an original document and such counterparts, taken together, will constitute
one and the same instrument.

 

    	 	24	 

     

    

 

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

 

	 	BROOKFIELD ASSET MANAGEMENT INC.
	 	 
	 	By:	/s/
    Kathy Sarpash
	 	 	Name:Kathy Sarpash

Title:Senior Vice President

 

	 	Brookfield BUSINESS CORPORATION
	 	 
	 	By:	/s/
    A.J. Silber
	 	 	Name:A.J. Silber

Title:Director

 

	 	Brookfield BUSINESS PARTNERS L.P., by its general partner, BROOKfield BUSINESS L.P., by its general partner, BROOKFIELD BUSINESS PARTNERS LIMITED
	 	 
	 	By:	/s/
    James Bodi
	 	 	Name:James Bodi

Title:Vice President

 

    	 	25scl-ex101_6.htm

Exhibit 10.1

STEPAN COMPANY

2022 EQUITY INCENTIVE Compensation PLAN

1.Purpose.  The purpose of this Plan is to permit award grants to non-employee Directors and officers, other employees and service providers of the Company and its Subsidiaries and to provide to such persons incentives and rewards for service and/or performance. 

2.Definitions.  As used in this Plan:

(a)“Appreciation Right” means a right granted pursuant to Section 5 of this Plan.

(b)“Base Price” means the price to be used as the basis for determining the Spread upon the exercise of an Appreciation Right.

(c)“Board” means the Board of Directors of the Company.

(d) “Cause” means, unless such term or an equivalent term is otherwise defined by the applicable Evidence of Award or other written agreement between a Participant and the Company or a Subsidiary, any of the following, as reasonably determined by the Company: (i) conviction of, or plea of nolo contendere to, a felony (excluding motor vehicle violations); (ii) theft or embezzlement, or attempted theft or embezzlement, of money or property or assets of the Company or any Subsidiary; (iii) illegal use of drugs; (iv) material breach of any employment-related undertakings provided in a writing signed by the Participant; (v) gross negligence or willful misconduct in the performance of the Participant’s duties to the Company or any Subsidiary; (vi) breach of any fiduciary duty owed to the Company or any Subsidiary including, without limitation, engaging in competitive acts while employed by the Company or any Subsidiary; or (vii) the Participant’s willful refusal to perform the assigned duties for which the Participant is qualified as directed by the Participant’s supervising officer or the Board; provided, that in the case of any event constituting Cause within clauses (iv) through (vii) that is curable by the Participant (as reasonably determined by the Company), the Participant has been given written notice by the Company or a Subsidiary of such event said to constitute Cause, describing such event in reasonable detail, and has not cured such action within ten (10) days of such written notice as reasonably determined by the Company. For purposes of this definition of Cause, action or inaction by the Participant shall not be considered “willful” unless done or omitted by the Participant (x) intentionally or not in good faith, and (y) without reasonable belief that the Participant’s action or inaction was in the best interests of the Company or any applicable Subsidiary, and shall not include failure to act by reason of total or partial incapacity due to physical or mental illness. For the avoidance of doubt, if the Participant is eligible for retirement, but grounds exist to terminate the Participant’s employment with the Company or a Subsidiary for Cause, then for purposes of this Plan, the Participant will not be treated as having retired from the Company or a Subsidiary, but will instead be treated as having been terminated by the Company or a Subsidiary for Cause.

1

(e)“Change in Control” has the meaning set forth in Section 12 of this Plan.

(f)“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations thereunder, as such law and regulations may be amended from time to time.

(g)“Committee” means the Compensation and Development Committee of the Board (or its successor(s)), or any other committee of the Board designated by the Board to administer this Plan pursuant to Section 10 of this Plan.

(h)“Common Shares” means the shares of common stock, par value $1.00 per share, of the Company or any security into which such common stock may be changed by reason of any transaction or event of the type referred to in Section 11 of this Plan.

(i)“Company” means Stepan Company, a Delaware corporation, and its successors.

(j) “Date of Grant” means the date provided for by the Committee on which a grant of Option Rights, Appreciation Rights, Performance Shares, Performance Units, or other awards contemplated by Section 9 of this Plan, or a grant or sale of Restricted Stock, Restricted Stock Units, or other awards contemplated by Section 9 of this Plan, will become effective (which date will not be earlier than the date on which the Committee or the Board takes action with respect thereto).

(k)“Director” means a member of the Board.

(l)“Effective Date” means the date this Plan is approved by the Stockholders.

(m)“Evidence of Award” means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee or the Board that sets forth the terms and conditions of the awards granted under this Plan.  An Evidence of Award may be in an electronic medium, may be limited to notation on the books and records of the Company and, unless otherwise determined by the Committee, need not be signed by a representative of the Company or a Participant. 

(n)“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time.

(o) “Good Reason” means, unless such term or an equivalent term is otherwise defined by the applicable Evidence of Award or other written agreement between a Participant and the Company or a Subsidiary, the occurrence of any of the following events without the Participant’s consent: (i) any material reduction in the Participant’s duties, responsibilities or authority; provided, however, that for purposes of this clause (i), neither of (x) a change in the Participant’s supervisor or the number or identity of the Participant’s direct reports, nor (y) a change in the Participant’s title, duties, responsibilities or authority as a result of a realignment or restructuring of the Company or its organizational chart, shall be deemed by itself to materially reduce the Participant’s duties, responsibilities or authority, as long as the 

2

Participant continues to report to either the supervisor to whom he or she reported immediately prior to the realignment or restructuring, or a supervisor of equivalent responsibility and authority; (ii) a material reduction in the Participant’s base salary, or (iii) the relocation of the Participant’s principal place of employment more than fifty (50) miles from its location immediately prior to such relocation. For purposes of this definition of “Good Reason,” notwithstanding the above, the occurrence of any of the events described above will not constitute Good Reason unless the Participant gives the Company written notice within thirty (30) days after the initial occurrence of any of such events that the Participant believes that such event constitutes Good Reason, the Company thereafter fails to cure any such event within sixty (60) days after receipt of such notice. In addition, the Participant must actually terminate employment within thirty (30) days following the end of the cure period described in the preceding sentence in order for such termination of employment to be considered a termination for Good Reason. 

(p)“Incentive Stock Option” means an Option Right that is intended to qualify as an “incentive stock option” under Section 422 of the Code or any successor provision.

(q)“Management Objectives” means the performance objective or objectives established pursuant to this Plan for Participants who have received grants of Performance Shares, Performance Units or, when so determined by the Committee, Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, dividend equivalents or other awards pursuant to this Plan and may include, but are not limited to, objectives related to earnings before interest, taxes, depreciation and amortization, income or net income (loss) (either before or after interest, taxes, depreciation and/or amortization), earnings, changes in the market price of Common Shares, funds from operations or similar measures, sales, revenue (including recurring revenue), growth in revenue, mergers, acquisitions or other strategic transactions, divestitures, financings, operating income (loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital, return on invested capital, return on investments, assets, return on assets, net asset turnover, debt (including debt reduction), return on operating revenue, working capital, regulatory compliance, improvement of financial ratings, annual spend or license annual spend, equity investments, investing activities and financing activities (or any combination thereof) stockholder returns, dividend ratio, orders, return on sales, marketing, gross or net profit levels, productivity, volumes produced and/or transported, margins, leverage ratio, coverage ratio, strategic business objectives (including operating efficiency, geographic business expansion goals, partnerships, customer/client satisfaction, talent recruitment and retention, productivity ratios, product quality, sales of new products, employee turnover, supervision of information technology), operating efficiency, productivity, product innovation, number of customers, customer satisfaction and related metrics, individual performance, quality improvements, growth or growth rate, intellectual property, expenses or costs (including cost reduction programs), budget comparisons, implementation of projects or processes, formation of joint ventures, research and development collaborations, marketing or customer service collaborations, employee engagement and satisfaction, diversity and other human capital and culture metrics, environmental and social measures, information technology, technology development, human resources management, litigation, research and development, working capital, earnings (loss) per Common Share, and market share, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group.  If the Committee determines that a change in the business, operations, 

3

corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the Management Objectives unsuitable, the Committee may in its discretion modify such Management Objectives or the goals or actual levels of achievement regarding the Management Objectives, in whole or in part, as the Committee deems appropriate and equitable.

(r)“Market Value per Share” means, as of any particular date, the average of the opening price and closing price of a Common Share as reported for that date on the New York Stock Exchange or, if the Common Shares are not then listed on the New York Stock Exchange, on any other national securities exchange on which the Common Shares are listed, or if there are no sales on such date, on the next preceding trading day during which a sale occurred.  If there is no regular public trading market for the Common Shares, then the Market Value per Share shall be the fair market value as determined in good faith by the Committee.  The Committee is authorized to adopt another fair market value pricing method provided such method is stated in the applicable Evidence of Award and is in compliance with the fair market value pricing rules set forth in Section 409A of the Code.

(s)“Optionee” means the optionee named in an Evidence of Award evidencing an outstanding Option Right.

(t)“Option Price” means the purchase price payable on exercise of an Option Right.

(u)“Option Right” means the right to purchase Common Shares upon exercise of an option granted pursuant to Section 4 of this Plan.

(v)“Participant” means a person who is selected by the Committee to receive benefits under this Plan and who is at the time (i) a non-employee Director, (ii) an officer or other employee of the Company or any Subsidiary, or (iii) a person, including a consultant, who provides services to the Company or any Subsidiary that are equivalent to those typically provided by an employee (provided that such person satisfies the Form S-8 definition of an “employee”).  

(w)“Performance Period” means, in respect of a Performance Share or Performance Unit, a period of time established pursuant to Section 8 of this Plan within which the Management Objectives relating to such Performance Share or Performance Unit are to be achieved.

(x)“Performance Share” means a bookkeeping entry that records the equivalent of one Common Share awarded pursuant to Section 8 of this Plan, and may be payable in cash, Common Shares, or a combination thereof.

(y)“Performance Unit” means a bookkeeping entry award granted pursuant to Section 8 of this Plan that records a unit equivalent to $1.00 or such other value as is determined by the Committee, and may be payable in cash, Common Shares, or a combination thereof.

(z)“Plan” means this Stepan Company 2022 Equity Incentive Compensation Plan, as may be amended or amended and restated from time to time.

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(aa)“Predecessor Plan” means the Company’s 2011 Incentive Compensation Plan, as amended.

(bb) “Replacement Award” means an equity award granted in replacement of an outstanding award under this Plan in connection with a Change in Control that, as determined by the Committee (as constituted immediately prior to such Change in Control), preserves the existing value of the outstanding award and has terms and conditions (including a vesting schedule) that are at least as favorable to the Participant as the terms and condition in effect immediately prior to such Change in Control, provided that an equity award granted in replacement of an outstanding award that is subject to Management Objectives shall be deemed a Replacement Award only if (i) it is subject to only time-based vesting and (ii) its value is determined at the target level of the Management Objectives applicable to the outstanding award it replaces.

(cc)“Restricted Stock” means Common Shares granted or sold pursuant to Section 6 of this Plan as to which neither the substantial risk of forfeiture nor the prohibition on transfers has expired.

(dd)“Restricted Stock Units” means an award made pursuant to Section 7 of this Plan of the right to receive Common Shares, cash or a combination thereof at the end of the applicable Restriction Period.

(ee)“Restriction Period” means the period of time during which Restricted Stock Units are subject to restrictions, as provided in Section 7 of this Plan.

(ff)“Spread” means the excess of the Market Value per Share on the date when an Appreciation Right is exercised over the Base Price provided for with respect to the Appreciation Right.

(gg)“Stockholder” means an individual or entity that owns one or more Common Shares.

(hh)“Subsidiary” means a corporation, company or other entity (i) more than 50% of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture, limited liability company, or unincorporated association or other similar entity), but more than 50% of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company; provided, however, that for purposes of determining whether any person may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” means any corporation in which the Company at the time owns or controls, directly or indirectly, more than 50% of the total combined Voting Power represented by all classes of stock issued by such corporation.

(ii)“Voting Power” means, at any time, the combined voting power of the then-outstanding securities entitled to vote generally in the election of Directors in the case of the Company, or members of the board of directors or similar body in the case of another entity.

5

3.Shares Available Under this Plan.

(a)Maximum Shares Available Under this Plan.  

	
 
	
(i)
	
Subject to adjustment as provided in Section 11 of this Plan and the share counting rules set forth in Section 3(b) of this Plan, the number of Common Shares available under this Plan for awards of (A) Option Rights or Appreciation Rights, (B) Restricted Stock, (C) Restricted Stock Units, (D) Performance Shares or Performance Units, (E) awards contemplated by Section 9 of this Plan, or (F) dividend equivalents paid with respect to awards made under this Plan will not exceed in the aggregate (x) 500,000 Common Shares, plus (y) the total number of Common Shares remaining available for awards under the Predecessor Plan as of the Effective Date, plus (z) Common Shares that are subject to awards granted under this Plan or the Predecessor Plan that are added (or added back, as applicable) to the aggregate number of Common Shares available under this Section 3(a)(i) pursuant to the share counting rules of this Plan.  Such shares may be shares of original issuance or treasury shares or a combination of the foregoing.

	
 
	
(ii)
	
Subject to the share counting rules set forth in Section 3(b) of this Plan, the aggregate number of Common Shares available under Section 3(a)(i) of this Plan will be reduced by one Common Share for every one Common Share subject to an award granted under this Plan.

(b)Share Counting Rules.  

	
 
	
(i)
	
Except as provided in Section 22 of this Plan or herein, if any award granted under this Plan (in whole or in part) is cancelled or forfeited, expires, is settled for cash or is unearned, the Common Shares subject to such award will, to the extent of such cancellation, forfeiture, expiration, cash settlement or unearned amount, again be available under Section 3(a)(i) above.

	
 
	
(ii)
	
If, after the Effective Date, any Common Shares subject to an award granted under the Predecessor Plan are forfeited, or an award granted under the Predecessor Plan is cancelled or forfeited, expires, is settled for cash or is unearned (in whole or in part), the Common Shares subject to such award will, to the extent of such cancellation, forfeiture, expiration, cash settlement or unearned amount, be available for awards under this Plan.

	
 
	
(iii)
	
Notwithstanding anything to the contrary contained herein:  (A) Common Shares withheld by the Company, tendered or otherwise used in payment of the Option Price of an Option Right 

6

	
 
		
(or the option price of an option granted under the Predecessor Plan) will not be added (or added back, as applicable) to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan; (B) Common Shares withheld by the Company, tendered or otherwise used to satisfy tax withholding with respect to awards will not be added (or added back, as applicable) to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan; (C) Common Shares subject to a share-settled Appreciation Right that are not actually issued in connection with the settlement of such Appreciation Right on the exercise thereof will not be added (or added back, as applicable) to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan; and (D) Common Shares reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Option Rights will not be added (or added back, as applicable) to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan.

	
 
	
(iv)
	
If, under this Plan, a Participant has elected to give up the right to receive cash compensation in exchange for Common Shares based on fair market value, such Common Shares will not count against the aggregate limit under Section 3(a)(i) of this Plan.

(c)Limit on Incentive Stock Options.  Notwithstanding anything in this Section 3 or elsewhere in this Plan to the contrary, and subject to adjustment as provided in Section 11 of this Plan, the aggregate number of Common Shares actually issued or transferred by the Company upon the exercise of Incentive Stock Options will not exceed 500,000 Common Shares.

(d)Non-Employee Director Compensation Limit. Notwithstanding anything to the contrary contained in this Plan, in no event will any non-employee Director in any one calendar year be granted compensation for such service having an aggregate maximum value (measured at the Date of Grant as applicable, and calculating the value of any awards based on the grant date fair value for financial reporting purposes) in excess of $500,000 (or, for a non-executive chair of the Board, $1,000,000).

(e)Minimum Vesting Requirement.  Notwithstanding any other provision of this Plan (outside of this Section 3(e)) to the contrary, awards granted under this Plan (other than cash-based awards) shall vest no earlier than the first anniversary of the applicable Date of Grant; provided, that the following awards shall not be subject to the foregoing minimum vesting requirement: any (i) awards granted in connection with awards that are assumed, converted or substituted pursuant to Section 22(a) of this Plan; (ii) Common Shares delivered in lieu of fully vested cash obligations; (iii) awards to non-employee Directors that vest on the earlier of the one-year anniversary of the applicable Date of Grant and the next annual meeting of Stockholders which is at least 50 weeks after the immediately preceding year’s annual meeting of Stockholders; and (iv) any additional awards the Committee or the Board may grant, up to a maximum of 5% of the available share reserve authorized for issuance under this Plan pursuant 

7

to Section 3(a)(i) (subject to adjustment under Section 11). Nothing in this Section 3(e) or otherwise in this Plan, however, shall preclude the Committee, in its sole discretion, from (x) providing for continued vesting or accelerated vesting for any award under this Plan upon certain events, including in connection with or following a Participant’s death, disability, or termination of service or a Change in Control, or (y) exercising its authority under Section 18(c) at any time following the grant of an award.

4.Option Rights.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to Participants of Option Rights.  Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)Each grant will specify the number of Common Shares to which it pertains subject to the limitations set forth in Section 3 of this Plan.

(b)Each grant will specify an Option Price per share, which (except with respect to awards under Section 22 of this Plan) may not be less than the Market Value per Share on the Date of Grant.

(c)Each grant will specify whether the Option Price will be payable (i) in cash or by check acceptable to the Company or by wire transfer of immediately available funds, (ii) by the actual or constructive transfer to the Company of Common Shares owned by the Optionee having a value at the time of exercise equal to the total Option Price, (iii) subject to any conditions or limitations established by the Committee, by the withholding of Common Shares otherwise issuable upon exercise of an Option Right pursuant to a “net exercise” arrangement (it being understood that, solely for purposes of determining the number of treasury shares held by the Company, the Common Shares so withheld will not be treated as issued and acquired by the Company upon such exercise), (iv) by a combination of such methods of payment, or (v) by such other methods as may be approved by the Committee.

(d)To the extent permitted by law, any grant may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker on a date satisfactory to the Company of some or all of the shares to which such exercise relates.

(e)Each grant will specify the period or periods of continuous service by the Optionee with the Company or any Subsidiary, if any, that is necessary before any Option Rights or installments thereof will vest.  Option Rights may provide for continued vesting or the earlier vesting of such Option Rights, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(f)Any grant of Option Rights may specify Management Objectives regarding the vesting of such rights.

(g)Option Rights granted under this Plan may be (i) options, including, without limitation, Incentive Stock Options, that are intended to qualify under particular provisions of the Code, (ii) options that are not intended to so qualify, or (iii) combinations of the foregoing.  Incentive Stock Options may only be granted to Participants who meet the definition of “employees” under Section 3401(c) of the Code.

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(h)No Option Right will be exercisable more than 10 years from the Date of Grant.  The Committee may provide in any Evidence of Award for the automatic exercise of an Option Right upon such terms and conditions as established by the Committee.

(i)Option Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

(j)Each grant of Option Rights will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

5.Appreciation Rights.

(a)The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to any Participant of Appreciation Rights.  An Appreciation Right will be the right of the Participant to receive from the Company an amount equal to the total Spread at the time of exercise for all of the Common Shares as to which the Appreciation Right is being exercised.

(b)Each grant of Appreciation Rights may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

	
 
	
(i)
	
Each grant may specify that the amount payable on exercise of an Appreciation Right will be paid by the Company in cash, Common Shares or any combination thereof.

	
 
	
(ii)
	
Each grant will specify the period or periods of continuous service by the Participant with the Company or any Subsidiary, if any, that is necessary before the Appreciation Rights or installments thereof will vest.  Appreciation Rights may provide for continued vesting or the earlier vesting of such Appreciation Rights, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

	
 
	
(iii)
	
Any grant of Appreciation Rights may specify Management Objectives regarding the vesting of such Appreciation Rights.

	
 
	
(iv)
	
Appreciation Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

	
 
	
(v)
	
Each grant of Appreciation Rights will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

9

(c)Also, regarding Appreciation Rights:

	
 
	
(i)
	
Each grant will specify in respect of each Appreciation Right a Base Price, which (except with respect to awards under Section 22 of this Plan) may not be less than the Market Value per Share on the Date of Grant; and

	
 
	
(ii)
	
No Appreciation Right granted under this Plan may be exercised more than 10 years from the Date of Grant. The Committee may provide in any Evidence of Award for the automatic exercise of an Appreciation Right upon such terms and conditions as established by the Committee.

6.Restricted Stock.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the grant or sale of Restricted Stock to Participants.  Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)Each such grant or sale will constitute an immediate transfer of the ownership of Common Shares to the Participant in consideration of the performance of services, entitling such Participant to voting, dividend and other ownership rights (subject in particular to Section 6(g) of this Plan), but subject to the substantial risk of forfeiture and restrictions on transfer hereinafter described.

(b)Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.

(c)Each such grant or sale will provide that the Restricted Stock covered by such grant or sale will be subject to a “substantial risk of forfeiture” within the meaning of Section 83 of the Code for a period to be determined by the Committee on the Date of Grant or until achievement of Management Objectives referred to in Section 6(e) of this Plan.  

(d)Each such grant or sale will provide that during or after the period for which such substantial risk of forfeiture is to continue, the transferability of the Restricted Stock will be prohibited or restricted in the manner and to the extent prescribed by the Committee on the Date of Grant (which restrictions may include, without limitation, rights of repurchase or first refusal of the Company or provisions subjecting the Restricted Stock to a continuing substantial risk of forfeiture while held by any transferee).

(e)Any grant of Restricted Stock may specify Management Objectives regarding the vesting of such Restricted Stock.

(f)Notwithstanding anything to the contrary contained in this Plan, Restricted Stock may provide for continued vesting or the earlier vesting of such Restricted Stock, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

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(g)Any such grant or sale of Restricted Stock may require that any and all dividends or other distributions paid thereon during the period of such restrictions be automatically deferred and/or reinvested in additional Restricted Stock, which will be subject to the same restrictions as the underlying award. For the avoidance of doubt, any dividends or other distributions shall accrue and only be paid to the extent the corresponding portion of the award of Restricted Stock becomes vested.

(h)Each grant or sale of Restricted Stock will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.  Unless otherwise directed by the Committee, (i) all certificates representing Restricted Stock will be held in custody by the Company until all restrictions thereon will have lapsed, together with a stock power or powers executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such shares or (ii) all Restricted Stock will be held at the Company’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such Restricted Stock.

7.Restricted Stock Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting or sale of Restricted Stock Units to Participants.  Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)Each such grant or sale will constitute the agreement by the Company to deliver Common Shares or cash, or a combination thereof, to the Participant in the future in consideration of the performance of services, but subject to the fulfillment of such conditions (which may include the achievement of Management Objectives) during the Restriction Period as the Committee may specify.  

(b)Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.

(c)Notwithstanding anything to the contrary contained in this Plan, Restricted Stock Units may provide for continued vesting or the earlier lapse or other modification of the Restriction Period, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(d)During the Restriction Period, the Participant will have no right to transfer any rights under his or her award and will have no rights of ownership in the Common Shares deliverable upon payment of the Restricted Stock Units and will have no right to vote them, but the Committee may, at or after the Date of Grant, authorize the payment of dividend equivalents on such Restricted Stock Units on a deferred and contingent basis, either in cash or in additional Common Shares; provided, however, that dividend equivalents or other distributions on Common Shares underlying Restricted Stock Units shall be deferred until, and paid contingent upon, the vesting of such Restricted Stock Units. For the avoidance of doubt, any dividends, dividend equivalents or other distributions shall accrue and only be paid to the extent the corresponding portion of the award of Restricted Stock Units becomes vested.

11

(e)Each grant or sale of Restricted Stock Units will specify the time and manner of payment of the Restricted Stock Units that have been earned.  Each grant or sale will specify that the amount payable with respect thereto will be paid by the Company in Common Shares or cash, or a combination thereof.

(f)Each grant or sale of Restricted Stock Units will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

8.Performance Shares and Performance Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting of Performance Shares and Performance Units.  Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

(a)Each grant will specify the number or amount of Performance Shares or Performance Units to which it pertains, which number or amount may be subject to adjustment to reflect changes in compensation or other factors.

(b)The Performance Period with respect to each grant of Performance Shares or Performance Units will be such period of time as will be determined by the Committee, which may be subject to continued vesting or earlier lapse or other modification, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

(c)Each grant of Performance Shares or Performance Units will specify Management Objectives regarding the earning of the award.

(d)Each grant will specify the time and manner of payment of Performance Shares or Performance Units that have been earned.  Any grant may specify that the amount payable with respect thereto may be paid by the Company in cash, in Common Shares, in Restricted Stock or Restricted Stock Units or in any combination thereof.

(e)The Committee may, on the Date of Grant of Performance Shares or Performance Units, provide for the payment of dividend equivalents to the holder thereof either in cash or in additional Common Shares, which dividend equivalents will be subject to deferral and payment on a contingent basis based on the Participant’s earning and vesting of the Performance Shares or Performance Units, as applicable, with respect to which such dividend equivalents are paid. For the avoidance of doubt, any dividends, dividend equivalents or other distributions shall accrue and only be paid to the extent the corresponding portion of the award of Performance Shares or Performance Units becomes vested.

(f)Each grant of Performance Shares or Performance Units will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

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9.Other Awards.

(a)Subject to applicable law and the applicable limits set forth in Section 3 of this Plan, the Committee may authorize the grant to any Participant of Common Shares or such other awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Common Shares or factors that may influence the value of such shares, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Common Shares, purchase rights for Common Shares, awards with value and payment contingent upon performance of the Company or specified Subsidiaries, affiliates or other business units thereof or any other factors designated by the Committee, and awards valued by reference to the book value of the Common Shares or the value of securities of, or the performance of specified Subsidiaries or affiliates or other business units of the Company.  The Committee will determine the terms and conditions of such awards.  Common Shares delivered pursuant to an award in the nature of a purchase right granted under this Section 9 will be purchased for such consideration, paid for at such time, by such methods, and in such forms, including, without limitation, Common Shares, other awards, notes or other property, as the Committee determines.

(b)The Committee may authorize the grant of Common Shares as a bonus, or may authorize the grant of other awards in lieu of obligations of the Company or a Subsidiary to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements (including Common Shares granted to a Director upon such Director’s election to receive Common Shares in lieu of cash or other consideration), subject to such terms as will be determined by the Committee in a manner that complies with Section 409A of the Code.

(c)The Committee may, on or after the Date of Grant, authorize the payment of dividends or dividend equivalents on awards granted under this Section 9 on a deferred and contingent basis, either in cash or in additional Common Shares; provided, however, that dividend equivalents or other distributions on Common Shares underlying awards under this Section 9 shall be deferred until and paid contingent upon the earning and vesting of such awards.

(d)Each grant of an award under this Section 9 will be evidenced by an Evidence of Award.  Each such Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve, and will specify the time and terms of delivery of the applicable award. For the avoidance of doubt, any dividends, dividend equivalents or other distributions shall accrue and only be paid to the extent the corresponding portion of the award becomes vested.

(e)Notwithstanding anything to the contrary contained in this Plan, awards under this Section 9 may provide for the earning or vesting of, or earlier elimination of restrictions applicable to, such award, including in the event of the retirement, death, disability or termination of employment or service of a Participant or in the event of a Change in Control.

10.Administration of this Plan.

(a)This Plan will be administered by the Committee; provided, however, that notwithstanding anything in this Plan to the contrary, the Board may grant awards under this 

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Plan to non-employee Directors and administer this Plan with respect to such awards.  The Committee may from time to time delegate all or any part of its authority under this Plan to a subcommittee thereof.  To the extent of any such delegation, references in this Plan to the Committee will be deemed to be references to such subcommittee.

(b)The interpretation and construction by the Committee of any provision of this Plan or of any Evidence of Award (or related documents) and any determination by the Committee pursuant to any provision of this Plan or of any such agreement, notification or document will be final and conclusive.  No member of the Committee shall be liable for any such action or determination made in good faith.  In addition, the Committee is authorized to take any action it determines in its sole discretion to be appropriate subject only to the express limitations contained in this Plan, and no authorization in any Plan section or other provision of this Plan is intended or may be deemed to constitute a limitation on the authority of the Committee.

(c)To the extent permitted by law, the Committee may delegate to one or more of its members or to one or more officers of the Company, or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee, the subcommittee, or any person to whom duties or powers have been delegated as aforesaid, may employ one or more persons to render advice with respect to any responsibility the Committee, the subcommittee or such person may have under this Plan.  The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as the Committee:  (i) designate employees to be recipients of awards under this Plan; and (ii) determine the size of any such awards; provided, however, that (A) the Committee will not delegate such responsibilities to any such officer for awards granted to an employee who is an officer (for purposes of Section 16 of the Exchange Act), a Director, or more than 10% “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Committee in accordance with Section 16 of the Exchange Act; (B) the resolution providing for such authorization shall set forth the total number of Common Shares such officer(s) may grant; and (C) the officer(s) will report periodically to the Committee regarding the nature and scope of the awards granted pursuant to the authority delegated.

11.Adjustments.  The Committee shall make or provide for such adjustments in the number of and kind of Common Shares covered by outstanding Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units granted hereunder and, if applicable, in the number of and kind of Common Shares covered by other awards granted pursuant to Section 9 of this Plan, in the Option Price and Base Price provided in outstanding Option Rights and Appreciation Rights, respectively, and in other award terms, as the Committee, in its sole discretion, exercised in good faith, determines is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (a) any extraordinary cash dividend, stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing.  Moreover, in the event of any such transaction or event or in the event of a Change in Control, 

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the Committee may provide in substitution for any or all outstanding awards under this Plan such alternative consideration (including cash), if any, as it, in good faith, may determine to be equitable in the circumstances and shall require in connection therewith the surrender of all awards so replaced in a manner that complies with Section 409A of the Code.  In addition, for each Option Right or Appreciation Right with an Option Price or Base Price, respectively, greater than the consideration offered in connection with any such transaction or event or Change in Control, the Committee may in its discretion elect to cancel such Option Right or Appreciation Right without any payment to the person holding such Option Right or Appreciation Right.  The Committee shall also make or provide for such adjustments in the numbers of shares specified in Section 3 of this Plan as the Committee in its sole discretion, exercised in good faith, determines is appropriate to reflect any transaction or event described in this Section 11; provided, however, that any such adjustment to the number specified in Section 3(c) of this Plan will be made only if and to the extent that such adjustment would not cause any Option Right intended to qualify as an Incentive Stock Option to fail to so qualify.

12.Change in Control.  

(a) Except as otherwise provided for in an Evidence of Award, upon a Change in Control:

	
 
	
(i)
	
if a Replacement Award is not granted in respect of an outstanding award: 

	
 
	
(1)
	
all such awards that have been earned but not paid shall become immediately payable in cash;

	
 
	
(2)
	
all such awards shall become fully exercisable;

	
 
	
(3)
	
all restrictions applicable to all such awards shall terminate or lapse; and

	
 
	
(4)
	
Management Objectives (if any) applicable to any award that has not yet been earned shall be deemed satisfied at the performance level that provides for a target payout.

	
 
	
(ii)
	
If an outstanding Award is replaced with a Replacement Award, all such Replacement Awards shall remain outstanding and be governed by such terms and conditions; provided, however, if within two (2) years following the Change in Control a Participant’s employment or service on the Board is terminated by the Company or a Subsidiary without Cause, or if a Participant terminates his or her employment for Good Reason, all such Replacement Awards shall become fully exercisable and all restrictions applicable to all such Replacement Awards shall terminate or lapse.

(b)For purposes of this Plan, except as may be otherwise prescribed by the Committee in an Evidence of Award made under this Plan, a “Change in Control” will be 

15

deemed to have occurred upon the occurrence (after the Effective Date) of any of the following events:

(i)the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of voting securities of the Company where such acquisition causes such Person to own 35% or more of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of Directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not be deemed to result in a Change in Control: (A) any acquisition directly from the Company that is approved by the Incumbent Board (as defined in subsection (ii) below), (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (D) any acquisition by any corporation pursuant to a transaction that complies with clauses (A), (B) and (C) of subsection (iii) below; provided, further, that if any Person’s beneficial ownership of the Outstanding Company Voting Securities reaches or exceeds 35% as a result of a transaction described in clause (A) or (B) above, and such Person subsequently acquires beneficial ownership of additional voting securities of the Company, such subsequent acquisition shall be treated as an acquisition that causes such Person to own 35% or more of the Outstanding Company Voting Securities; and provided, further, that if at least a majority of the members of the Incumbent Board determines in good faith that a Person has acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of the Outstanding Company Voting Securities inadvertently, and such Person divests as promptly as practicable a sufficient number of shares so that such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) less than 35% of the Outstanding Company Voting Securities, then no Change in Control shall have occurred as a result of such Person’s acquisition;

(ii)individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board” as modified by this subsection (ii)) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a Director subsequent to the Effective Date whose election, or nomination for election by the Stockholders, was approved by a vote of at least a majority of the Directors then comprising the Incumbent Board (either by specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for Director, without objection to such nomination) shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest or the use of any proxy access procedures in the Company’s organizational documents with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(iii)the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another corporation or other transaction (“Business Combination”) excluding, however, such a Business Combination pursuant to which (A) the individuals and entities who were the beneficial owners of the Outstanding Company Voting Securities immediately prior to 

16

such Business Combination beneficially own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (B) no Person (excluding any employee benefit plan (or related trust) of the Company, the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of the entity resulting from such Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

(iv)approval by the Stockholders of a complete liquidation or dissolution of the Company except pursuant to a Business Combination that complies with clauses (A), (B) and (C) of subsection (iii) above.

13.Detrimental Activity and Recapture Provisions.  Awards granted under this Plan shall be subject to, as applicable, Company’s clawback policy, and any Evidence of Award may provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any gain related to an award, or other provisions intended to have a similar effect, upon such terms and conditions as described in such clawback policy.  In addition, notwithstanding anything in this Plan to the contrary, any Evidence of Award or such clawback policy may also provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any Common Shares issued under and/or any other benefit related to an award, or other provisions intended to have a similar effect, upon such terms and conditions as may be required under Section 10D of the Exchange Act and any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which the Common Shares may be traded.

14.Accommodations for Participants of Different Nationalities.  In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide for such special terms for awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States of America or who provide services to the Company or any Subsidiary under an agreement with a foreign nation or agency, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom.  Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of this Plan (including sub-plans, which are to be considered part of this Plan) as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan.  No such special terms, supplements, amendments or restatements, however, will include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the Stockholders.  Any 

17

such special terms, supplements, sub plans, or alternative versions of this Plan approved by the Committee may be attached as exhibits to this Plan.

15.Transferability.

(a)Except as otherwise determined by the Committee, no Option Right, Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, award contemplated by Section 9 of this Plan or dividend equivalents paid with respect to awards made under this Plan will be transferable by the Participant except (i) if it is made by the Participant for no consideration to Immediate Family Members or to a bona fide trust, partnership or other entity controlled by and for the benefit of one or more Immediate Family Members (“Immediate Family Members” mean the Participant’s spouse, children, stepchildren, parents, stepparents, siblings (including half brothers and sisters), in-laws, and other individuals who have a relationship to the Participant arising because of legal adoption; however, no transfer may be made to the extent that transferability would cause Form S-8 or any successor form thereto not to be able to register Common Shares related to an award) or (ii) by will or the laws of descent and distribution.  In no event will any such award granted under this Plan be transferred for value.  Where transfer is permitted, references to “Participant” shall be construed, as the Committee deems appropriate, to include any permitted transferee to whom such award is transferred. Except as otherwise determined by the Committee, Option Rights and Appreciation Rights will be exercisable during the Participant’s lifetime only by him or her or, in the event of the Participant’s legal incapacity to do so, by his or her guardian or legal representative acting on behalf of the Participant in a fiduciary capacity under state law or court supervision.

(b)The Committee may specify on the Date of Grant that part or all of the Common Shares that are (i) to be issued or transferred by the Company upon the exercise of Option Rights or Appreciation Rights, upon the termination of the Restriction Period applicable to Restricted Stock Units or upon payment under any grant of Performance Shares or Performance Units or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer referred to in Section 6 of this Plan, will be subject to further restrictions on transfer, including minimum holding periods.

16.Withholding Taxes.  To the extent that the Company is required to withhold federal, state, local or foreign taxes or other amounts in connection with any payment made or benefit realized by a Participant or other person under this Plan, and the amounts available to the Company for such withholding are insufficient, it will be a condition to the receipt of such payment or the realization of such benefit that the Participant or such other person make arrangements satisfactory to the Company for payment of the balance of such taxes or other amounts required to be withheld, which arrangements may include relinquishment of a portion of such benefit.  With respect to Participants who are “officers” subject to Section 16 of the Exchange Act, if the Participant’s benefit is to be received in the form of Common Shares, then, unless otherwise determined by the Committee, the Company will withhold from the Common Shares required to be delivered to the Participant, Common Shares having a value equal to the amount required to be withheld under applicable income and employment tax laws.  With respect to Participants who are not “officers” subject to Section 16 of the Exchange Act, if the Participant’s benefit is to be received in the form of Common Shares, then, the Company may withhold from the Common Shares required to be delivered to the Participant, Common Shares 

18

having a value equal to the amount required to be withheld under applicable income and employment tax laws.  The Common Shares used for tax or other withholding will be valued at an amount equal to the fair market value of such Common Shares on the date the benefit is to be included in Participant’s income.  In no event will the fair market value of the Common Shares to be withheld and delivered pursuant to this Section 16 exceed the minimum amount required to be withheld, unless (i) an additional amount can be withheld and not result in adverse accounting consequences and (ii) such additional withholding amount is authorized by the Committee.  Participants will also make such arrangements as the Company may require for the payment of any withholding tax or other obligation that may arise in connection with the disposition of Common Shares acquired upon the exercise of Option Rights.

17.Compliance with Section 409A of the Code.  

(a)To the extent applicable, it is intended that this Plan and any grants made hereunder comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants.  This Plan and any grants made hereunder will be administered in a manner consistent with this intent.  Any reference in this Plan to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. 

(b)Neither a Participant nor any of a Participant’s creditors or beneficiaries will have the right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable under this Plan and grants hereunder to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a Participant’s benefit under this Plan and grants hereunder may not be reduced by, or offset against, any amount owed by a Participant to the Company or any of its Subsidiaries. 

(c)If, at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (i) the Participant will be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (ii) the Company makes a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it, without interest, on the tenth business day of the seventh month after such separation from service. 

(d)Solely with respect to any award that constitutes nonqualified deferred compensation subject to Section 409A of the Code and that is payable on account of a Change in Control (including any installments or stream of payments that are accelerated on account of a Change in Control), a Change in Control shall occur only if such event also constitutes a “change in the ownership,” “change in effective control,” and/or a “change in the ownership of a substantial portion of assets” of the Company as those terms are defined under Treasury  

19

Regulation §1.409A-3(i)(5), but only to the extent necessary to establish a time and form of payment that complies with Section 409A of the Code, without altering the definition of Change in Control for any purpose in respect of such award.

(e)Notwithstanding any provision of this Plan and grants hereunder to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of the Code, the Company reserves the right to make amendments to this Plan and grants hereunder as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code.  In any case, a Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or for a Participant’s account in connection with this Plan and grants hereunder (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its affiliates will have any obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

18.Amendments.

(a)The Board may at any time and from time to time amend this Plan in whole or in part; provided, however, that if an amendment to this Plan, for purposes of applicable stock exchange rules and except as permitted under Section 11 of this Plan, (i) would materially increase the benefits accruing to Participants under this Plan, (ii) would materially increase the number of securities which may be issued under this Plan, (iii) would materially modify the requirements for participation in this Plan, or (iv) must otherwise be approved by the Stockholders in order to comply with applicable law or the rules of the New York Stock Exchange or, if the Common Shares are not traded on the New York Stock Exchange, the principal national securities exchange upon which the Common Shares are traded or quoted, all as determined by the Board, then, such amendment will be subject to Stockholder approval and will not be effective unless and until such approval has been obtained.

(b)Except in connection with a corporate transaction or event described in Section 11 of this Plan or in connection with a Change in Control, the terms of outstanding awards may not be amended to reduce the Option Price of outstanding Option Rights or the Base Price of outstanding Appreciation Rights, or cancel outstanding “underwater” Option Rights or Appreciation Rights (including following a Participant’s voluntary surrender of “underwater” Option Rights or Appreciation Rights) in exchange for cash, other awards or Option Rights or Appreciation Rights with an Option Price or Base Price, as applicable, that is less than the Option Price of the original Option Rights or Base Price of the original Appreciation Rights, as applicable, without Stockholder approval.  This Section 18(b) is intended to prohibit the repricing of “underwater” Option Rights and Appreciation Rights and will not be construed to prohibit the adjustments provided for in Section 11 of this Plan.  Notwithstanding any provision of this Plan to the contrary, this Section 18(b) may not be amended without approval by the Stockholders.

(c)If permitted by Section 409A of the Code, but subject to the paragraph that follows, including in the case of termination of employment or service, or in the case of unforeseeable emergency or other circumstances or in the event of a Change in Control, to the extent a Participant holds an Option Right or Appreciation Right not immediately exercisable in 

20

full, or any Restricted Stock as to which the substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any Restricted Stock Units as to which the Restriction Period has not been completed, or any Performance Shares or Performance Units which have not been fully earned, or any dividend equivalents or other awards made pursuant to Section 9 of this Plan subject to any vesting schedule or transfer restriction, or who holds Common Shares subject to any transfer restriction imposed pursuant to Section 15(b) of this Plan, the Committee may, in its sole discretion, provide for continued vesting or accelerate the time at which such Option Right, Appreciation Right or other award may vest or be exercised or the time at which such substantial risk of forfeiture or prohibition or restriction on transfer will lapse or the time when such Restriction Period will end or the time at which such Performance Shares or Performance Units will be deemed to have been fully earned or the time when such transfer restriction will terminate or may waive any other limitation or requirement under any such award.

(d)Subject to Section 18(b) of this Plan, the Committee may amend the terms of any award theretofore granted under this Plan prospectively or retroactively. Except for adjustments made pursuant to Section 11 of this Plan, no such amendment will materially impair the rights of any Participant without his or her consent.  The Board may, in its discretion, terminate this Plan at any time.  Termination of this Plan will not affect the rights of Participants or their successors under any awards outstanding hereunder and not exercised in full on the date of termination.

19.Governing Law.  This Plan and all grants and awards and actions taken hereunder will be governed by and construed in accordance with the internal substantive laws of the State of Delaware.

20.Effective Date/Termination.  This Plan will be effective as of the Effective Date. No grants will be made on or after the Effective Date under the Predecessor Plan, except that outstanding awards granted under the Predecessor Plan will continue unaffected following the Effective Date.  No grant will be made under this Plan on or after the tenth anniversary of the Effective Date, but all grants made prior to such date will continue in effect thereafter subject to the terms thereof and of this Plan.  For clarification purposes, the terms and conditions of this Plan shall not apply to or otherwise impact previously granted and outstanding awards under the Predecessor Plan, as applicable (except for purposes of providing for Common Shares under such awards to be added to the aggregate number of Common Shares available under Section 3(a)(i) of this Plan pursuant to the share counting rules of this Plan).

21.Miscellaneous Provisions.

(a)The Company will not be required to issue any fractional Common Shares pursuant to this Plan.  The Committee may provide for the elimination of fractions or for the settlement of fractions in cash.

(b)This Plan will not confer upon any Participant any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate such Participant’s employment or other service at any time.

21

(c)Except with respect to Section 21(e) of this Plan, to the extent that any provision of this Plan would prevent any Option Right that was intended to qualify as an Incentive Stock Option from qualifying as such, that provision will be null and void with respect to such Option Right.  Such provision, however, will remain in effect for other Option Rights and there will be no further effect on any provision of this Plan.

(d)No award under this Plan may be exercised by the holder thereof if such exercise, and the receipt of cash or stock thereunder, would be, in the opinion of counsel selected by the Company, contrary to law or the regulations of any duly constituted authority having jurisdiction over this Plan.

(e)Absence on leave approved by a duly constituted officer of the Company or any of its Subsidiaries will not be considered interruption or termination of service of any employee for any purposes of this Plan or awards granted hereunder.

(f)No Participant will have any rights as a shareholder with respect to any shares subject to awards granted to him or her under this Plan prior to the date as of which he or she is actually recorded as the holder of such shares upon the stock records of the Company.

(g)The Committee or the Board may condition the grant of any award or combination of awards authorized under this Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant.

(h)Except with respect to Option Rights and Appreciation Rights, the Committee or the Board may permit Participants to elect to defer the issuance of Common Shares under this Plan pursuant to such rules, procedures or programs as it may establish for purposes of this Plan and which are intended to comply with the requirements of Section 409A of the Code.  The Committee or the Board also may provide that deferred issuances and settlements include the payment or crediting of dividend equivalents or interest on the deferral amounts.

(i)If any provision of this Plan is or becomes invalid, illegal or unenforceable in any jurisdiction, or would disqualify this Plan or any award under any law deemed applicable by the Committee, such provision will be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the Committee, it will be stricken and the remainder of this Plan will remain in full force and effect.  Notwithstanding anything in this Plan or an Evidence of Award to the contrary, nothing in this Plan or in an Evidence of Award prevents a Participant from providing, without prior notice to the Company, information to governmental authorities regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental authorities regarding possible legal violations, and for purpose of clarity a Participant is not prohibited from providing information voluntarily to the Securities and Exchange Commission pursuant to Section 21F of the Exchange Act.

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22.Stock-Based Awards in Substitution for Awards Granted by Another Company.  Notwithstanding anything in this Plan to the contrary:

(a)Awards may be granted under this Plan in substitution for or in conversion of, or in connection with an assumption of, stock options, stock appreciation rights, restricted stock, restricted stock units or other stock or stock-based awards held by awardees of an entity engaging in a corporate acquisition or merger transaction with the Company or any Subsidiary.  Any conversion, substitution or assumption will be effective as of the close of the merger or acquisition, and, to the extent applicable, will be conducted in a manner that complies with Section 409A of the Code. The awards so granted may reflect the original terms of the awards being assumed or substituted or converted for and need not comply with other specific terms of this Plan, and may account for Common Shares substituted for the securities covered by the original awards and the number of shares subject to the original awards, as well as any exercise or purchase prices applicable to the original awards, adjusted to account for differences in stock prices in connection with the transaction.

(b)In the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary merges has shares available under a pre-existing plan previously approved by stockholders and not adopted in contemplation of such acquisition or merger, the shares available for grant pursuant to the terms of such plan (as adjusted, to the extent appropriate, to reflect such acquisition or merger) may be used for awards made after such acquisition or merger under this Plan; provided, however, that awards using such available shares may not be made after the date awards or grants could have been made under the terms of the pre-existing plan absent the acquisition or merger, and may only be made to individuals who were not employees or directors of the Company or any Subsidiary prior to such acquisition or merger.  

(c)Any Common Shares that are issued or transferred by, or that are subject to any awards that are granted by, or become obligations of, the Company under Sections 22(a) or 22(b) of this Plan will not reduce the Common Shares available for issuance or transfer under this Plan or otherwise count against the limits contained in Section 3 of this Plan.  In addition, no Common Shares that are issued or transferred by, or that are subject to any awards that are granted by, or become obligations of, the Company under Sections 22(a) or 22(b) of this Plan will be added to the aggregate limit contained in Section 3(a)(i) of this Plan.

 

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