Document:

Amended and Restated Shareholder Rights Plan Agreement

 Exhibit 4.2 
 AMENDED AND RESTATED 
 SHAREHOLDER RIGHTS PLAN AGREEMENT 
 BETWEEN 
 OPEN TEXT CORPORATION

 and 
 COMPUTERSHARE
INVESTOR SERVICES 
 as Rights Agent 
 Dated as of December 6, 2007 
 (amending and restating the Shareholder Rights Plan Agreement dated as of November 1, 2004)

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		  	 ARTICLE 1
 DEFINITIONS
	  	
			
	 1.1
	  	Definitions	  	2
	 1.2
	  	Currency	  	12
	 1.3
	  	Acting Jointly or in Concert	  	12
	 1.4
	  	Control	  	12
	 1.5
	  	Holder of Rights and Trust Units	  	12
	 1.6
	  	References to this Agreement	  	12
		  	 ARTICLE 2
 THE RIGHTS
	  	
			
	 2.1
	  	Legend on Common Share Certificates	  	13
	 2.2
	  	Initial Exercise Price; Exercise of Rights; Detachment of Rights	  	13
	 2.3
	  	Adjustments to Exercise Price; Number of Rights	  	15
	 2.4
	  	Date on Which Exercise is Effective	  	18
	 2.5
	  	Execution, Authentication, Delivery and Dating of Rights Certificates	  	18
	 2.6
	  	Registration, Registration of Transfer and Exchange	  	18
	 2.7
	  	Mutilated, Destroyed, Lost and Stolen Rights Certificates	  	19
	 2.8
	  	Persons Deemed Owners	  	19
	 2.9
	  	Delivery and Cancellation of Certificates	  	19
	 2.10
	  	Agreement of Rights Holders	  	20
		  	 ARTICLE 3
 ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS
	  	
			
	 3.1
	  	Flip-in Event	  	20
		  	 ARTICLE 4
 THE RIGHTS AGENT
	  	
			
	 4.1
	  	General	  	21
	 4.2
	  	Merger, Amalgamation or Consolidation or Change of Name of Rights Agent	  	22
	 4.3
	  	Duties of Rights Agent	  	23
	 4.4
	  	Change of Rights Agent	  	24
		  	 ARTICLE 5
 MISCELLANEOUS
	  	
			
	 5.1
	  	Redemption and Termination	  	24
	 5.2
	  	Expiration	  	26
	 5.3
	  	Issuance of New Rights Certificates	  	26
	 5.4
	  	Supplements and Amendments	  	26
	 5.5
	  	Fractional Rights and Fractional Shares	  	28
	 5.6
	  	Rights of Action	  	28
	 5.7
	  	Holder of Rights Not Deemed a Shareholder	  	28
	 5.8
	  	Notice of Proposed Actions	  	29
	 5.9
	  	Notices	  	29
	 5.10
	  	Costs of Enforcement	  	30
	 5.11
	  	Successors	  	30
	 5.12
	  	Benefits of this Agreement	  	30
	 5.13
	  	Descriptive Headings	  	30

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 5.14
	  	Governing Law	  	30
	 5.15
	  	Language	  	30
	 5.16
	  	Counterparts	  	30
	 5.17
	  	Severability	  	31
	 5.18
	  	Effective Date	  	31
	 5.19
	  	Shareholder Review	  	31
	 5.20
	  	Regulatory Approvals	  	31
	 5.21
	  	Declaration as to Non-Canadian and Non-U.S. Holders	  	31
	 5.22
	  	Determinations and Actions by the Board of Directors	  	32

  

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 AMENDED AND RESTATED SHAREHOLDER RIGHTS PLAN AGREEMENT 
 THIS AMENDED AND RESTATED SHAREHOLDER RIGHTS PLAN AGREEMENT made as of December 6, 2007 (amending and restating the Shareholder Rights Plan
Agreement dated as of November 1, 2004). 
 BETWEEN: 
 OPEN TEXT CORPORATION, a body corporate organized under the laws of Ontario (hereinafter referred to as the “Corporation”) 
 OF THE FIRST PART 
 - and - 
 COMPUTERSHARE INVESTOR SERVICES, a trust company incorporated under the laws of Canada (hereinafter referred to as the “Rights
Agent”) 
 OF THE SECOND PART 
 WHEREAS the board of directors of the Corporation (the “Board of Directors”) has determined that it is advisable to continue the rights plan by adopting an amended and restated shareholder rights plan to take effect
immediately upon receipt of approval of the Independent Shareholders to effect the continued distribution of rights under the shareholders rights plan dated as of November 1, 2004 (the “Original Plan”) as further amended and
restated herein (the “Rights Plan”) to ensure, to the extent possible, that all shareholders of the Corporation are treated fairly in connection with any take-over offer or bid for the common shares of the Corporation, and to ensure
that the Board of Directors is provided with sufficient time to evaluate unsolicited take-over bids and to explore and develop alternatives to maximize shareholder value; 
 AND WHEREAS, in order to continue the Rights Plan, the Board of Directors has: 
  

	 	(a)	confirmed the issuance of one right (a “Right”) in respect of each Common Share (as hereinafter defined) outstanding at the close of business on November 1,
2004 (the “Record Time”), such issuance having been made to shareholders of record at the Record Time; and 

  

	 	(b)	confirmed and authorized the issuance of one Right in respect of each Common Share issued after the Record Time and prior to the earlier of the Separation Time (as hereinafter
defined) and the Expiration Time (as hereinafter defined); 

 AND WHEREAS each Right entitles the holder thereof, after the
Separation Time, to purchase securities of the Corporation pursuant to the terms and subject to the conditions set forth herein; 
 AND
WHEREAS the Corporation desires to confirm the appointment of the Rights Agent to act on behalf of the Corporation, and the Rights Agent is willing to so act, in connection with the issuance, transfer, exchange and replacement of Rights Certificates
(as hereinafter defined), the exercise of Rights and other matters referred to herein; 

 NOW THEREFORE in consideration of the premises and the respective agreements set forth herein, the
parties hereby agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
  

	1.1	Definitions 

 For purposes of this Agreement, the
following terms have the meanings indicated: 
  

	 	(a)	“Acquiring Person” shall mean any Person who is the Beneficial Owner of 20% or more of the outstanding Common Shares of the Corporation; provided, however, that the
term “Acquiring Person” shall not include: 

  

	 	(i)	the Corporation or any Subsidiary of the Corporation; 

  

	 	(ii)	any Person who becomes the Beneficial Owner of 20% or more of the outstanding Common Shares of the Corporation as a result of any one or a combination of: 

 

	 	(A)	an acquisition or redemption by the Corporation of Common Shares of the Corporation which, by reducing the number of Common Shares outstanding, increases the proportionate number of
Common Shares Beneficially Owned by such Person to 20% or more of the Common Shares of the Corporation then outstanding; 

  

	 	(B)	share acquisitions made pursuant to a Permitted Bid (“Permitted Bid Acquisitions”); 

  

	 	(C)	 share acquisitions (1) in respect of which the Board of Directors has waived the application of Section 3.1 pursuant to subsections 5.1(b), 5.1(c) or
5.1(d); or (2) which were made on or prior to the Effective Date; or (3) which were made pursuant to a dividend reinvestment plan of the Corporation; or (4) pursuant to the receipt or exercise of rights issued by the Corporation to
all the holders of the Common Shares (other than holders resident in a jurisdiction where such distribution is restricted or impracticable as a result of applicable law) to subscribe for or purchase Common Shares or Convertible Securities, provided
that such rights are acquired directly from the Corporation and not from any other person and provided that the Person does not thereby acquire a greater percentage of Common Shares or Convertible Securities so offered than the Person’s
percentage of Common Shares or Convertible Securities beneficially owned immediately prior to such acquisition; or (5) pursuant to a distribution by the Corporation of Common Shares or Convertible Securities made pursuant to a prospectus,
provided that the Person does not thereby acquire a greater percentage of Common Shares or Convertible Securities so offered than the Person’s percentage of Common Shares or Convertible Securities beneficially owned immediately prior to such
acquisition; or (6) pursuant to a distribution by the Corporation of Common Shares or Convertible Securities by way of a private placement or a securities exchange take-over bid circular or upon the exercise by an individual employee of stock
options granted under a stock option plan of the Corporation or rights to purchase securities granted under a share purchase plan of the Corporation, provided that (i) all necessary stock exchange approvals for such private placement, stock
option plan or share purchase plan have been obtained and such private placement, stock option plan or share purchase plan complies with the terms and conditions of such approvals 

  

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and (ii) such Person does not become the Beneficial Owner of more than 25% of the Common Shares outstanding immediately prior to the distribution, and
in making this determination, the Common Shares to be issued to such Person in the distribution shall be deemed to be held by such Person but shall not be included in the aggregate number of outstanding Common Shares immediately prior to the
distribution; or (7) pursuant to an amalgamation, merger or other statutory procedure requiring shareholder approval (“Exempt Acquisitions”); 

  

	 	(D)	the acquisition of Common Shares upon the exercise of Convertible Securities received by such Person pursuant to a Permitted Bid Acquisition, Exempt Acquisition or a Pro Rata
Acquisition (as defined below) (“Convertible Security Acquisitions”); or 

  

	 	(E)	acquisitions as a result of a stock dividend, a stock split or other event pursuant to which such Person receives or acquires Common Shares or Convertible Securities on the same
pro rata basis as all other holders of Common Shares of the same class (“Pro Rata Acquisitions”); 

 provided, however, that if a Person shall become the Beneficial Owner of 20% or more of the Common Shares of the Corporation then outstanding by reason of any one or a combination of (i) share acquisitions or redemptions by the
Corporation or (ii) Permitted Bid Acquisitions or (iii) Exempt Acquisitions or (iv) Convertible Security Acquisitions or (v) Pro Rata Acquisitions and, after such share acquisitions or redemptions by the Corporation, Permitted
Bid Acquisitions, Exempt Acquisitions, Convertible Security Acquisitions or Pro Rata Acquisitions, such Person subsequently becomes the Beneficial Owner of more than an additional 1.00% of the number of Common Shares of the Corporation outstanding
other than pursuant to any one or a combination of share acquisitions or redemptions of shares by the Corporation, Permitted Bid Acquisitions, Exempt Acquisitions, Convertible Security Acquisitions or Pro Rata Acquisitions, then as of the date of
any such acquisition such Person shall become an “Acquiring Person”; 
  

	 	(iii)	for a period of 10 days after the Disqualification Date, any Person who becomes the Beneficial Owner of 20% or more of the outstanding Common Shares as a result of such Person
becoming disqualified from relying on clause 1.1(e)(B) solely because such Person makes or announces an intention to make a Take-over Bid, either alone, through such Person’s Affiliates or Associates or by acting jointly or in concert with any
other Person. For the purposes of this definition, “Disqualification Date” means the first date of public announcement that any Person is making or intends to make a Take-over Bid, either alone, through such Person’s Affiliates
or Associates or by acting jointly or in concert with any other Person; 

  

	 	(iv)	an underwriter or member of a banking or selling group that becomes the Beneficial Owner of 20% or more of the Common Shares in connection with a distribution of securities by way
of prospectus or private placement; or 

  

	 	(v)	a Person (a “Grandfathered Person”) who is the Beneficial Owner of 20% or more of the outstanding Common Shares of the Corporation as at the Record Time, provided,
however, that this exception shall not be, and shall cease to be, applicable to a Grandfathered Person in the event that such Grandfathered Person shall, after the Record Time: (1) cease to own 20% or more of the outstanding Common Shares or
(2) become the Beneficial Owner (other than pursuant to any one or a combination of (A) share acquisitions or redemptions by the Corporation or (B) Permitted Bid Acquisitions (C) Exempt Acquisitions or (D) Convertible
Security Acquisition or (E) Pro Rata Acquisitions) of additional Common Shares constituting more than 1% of the number of Common Shares outstanding as at the Record Time. 

  

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	 	(b)	“Affiliate”, used to indicate a relationship with a specified Person, shall mean a Person that directly, or indirectly through one or more intermediaries, controls,
or is controlled by, or is under common control with, such specified Person. 

  

	 	(c)	“Amendment Date” means December 6, 2007. 

  

	 	(d)	“Associate” of a specified individual shall mean any individual to whom such specified individual is married or with whom such specified individual is living in a
conjugal relationship, outside marriage, or any relative of such specified individual or said spouse who has the same home as such specified individual. 

  

	 	(e)	A Person shall be deemed the “Beneficial Owner”, and to have “Beneficial Ownership”, of, and to “Beneficially Own”:

  

	 	(i)	any securities as to which such Person or any of such Person’s Affiliates or Associates is the owner at law or in equity; 

  

	 	(ii)	any securities as to which such Person or any of such Person’s Affiliates or Associates has the right to acquire (A) upon the exercise of any Convertible Securities, or
(B) pursuant to any agreement, arrangement or understanding, in either case where such right is exercisable within a period of 60 days and whether or not on condition or the happening of any contingency (other than (1) customary agreements
with and between underwriters and banking group or selling group members with respect to a distribution to the public or pursuant to a private placement of securities, or (2) pursuant to a pledge of securities in the ordinary course of
business); and 

  

	 	(iii)	any securities which are Beneficially Owned within the meaning of clauses 1.1(e)(i) or (ii) above by any other Person with which such Person is acting jointly or in concert;

 provided, however, that a Person shall not be deemed the “Beneficial Owner”, or to have “Beneficial
Ownership” of, or to “Beneficially Own”, any security: 
  

	 	(A)	where (1) the holder of such security has agreed to deposit or tender such security pursuant to a Permitted Lock-up Agreement to a Take-over Bid made by such Person or any of
such Person’s Affiliates or Associates or any other Person referred to in clause 1.1(e)(iii), or (2) such security has been deposited or tendered pursuant to a Take-over Bid made by such Person or any of such Person’s Affiliates or
Associates or any other Person referred to in clause 1.1(e)(iii), in each case until the earliest time at which any such tendered security is accepted unconditionally for payment or exchange or is taken up and paid for; 

  

	 	(B)	 where such Person, any of such Person’s Affiliates or Associates or any other Person referred to in clause 1.1(e)(iii), holds such security provided that
(1) the ordinary business of any such Person (the “Investment Manager”) includes the management of investment funds for others and such security is held by the Investment Manager in the ordinary course of such business in the
performance of such Investment Manager’s duties for the account of any other Person, including the acquisition or holding of securities for non-discretionary accounts held on behalf of a client by a broker or dealer registered under applicable
securities laws, or (2) such Person (the “Trust Company”) is licensed to carry on the business of a trust company under applicable laws and, as such, acts as trustee or administrator or in a similar capacity in relation to the
estates of deceased or incompetent Persons or in relation to other accounts and holds such security in the ordinary course of such duties for the estates of deceased or 

  

 - 4 - 

	 	 
incompetent Persons or for such other accounts, or (3) such Person (the “Plan Trustee”) is the administrator or trustee of one or more
pension funds or plans (each a “Plan”) registered under applicable laws and holds such security for the purposes of its activity as such, or (4) such Person is a Plan or is a Person established by statute (the
“Statutory Body”) for purposes that include, and the ordinary business or activity of such Person includes the management of investment funds for employee benefit plans, pension plans, insurance plans (other than plans administered
by insurance companies) or various public bodies, or (5) such Person is a Crown agent or agency or (6) such Person (the “Manager”) is the manager or trustee of a mutual fund (“Mutual Fund”) that is
registered or qualified to issue its securities to investors under the securities laws of any province of Canada or the laws of the United States of America or is a Mutual Fund; provided in any of the above cases, that the Investment Manager, the
Trust Company, the Plan Trustee, the Plan, the Statutory Body, the Crown agent or agency, the Manager or the Mutual Fund, as the case may be, is not then making a Take-over Bid or has not announced a current intention to make a Take-over Bid, other
than an Offer to Acquire Common Shares or other securities pursuant to a distribution by the Corporation or by means of ordinary market transactions (including pre-arranged trades entered into in the ordinary course of business of such Person)
executed through the facilities of a stock exchange, securities quotation system or organized over-the-counter market, alone, through its Affiliates or Associates or by acting jointly or in concert with any other Person;

  

	 	(C)	because such Person is a client of or has an account with the same Investment Manager as another Person on whose account the Investment Manager holds such security, or where such
Person is a client of or has an account with the same Trust Company as another Person on whose account the Trust Company holds such security, or where such Person is a Plan and has a Plan Trustee who is also a Plan Trustee for another Plan on whose
account the Plan Trustee holds such security; 

  

	 	(D)	where such Person is (i) a client of an Investment Manager and such security is owned at law or in equity by the Investment Manager, or (ii) an account of a Trust Company
and such security is owned at law or in equity by the Trust Company, or (iii) a Plan and such security is owned at law or in equity by the Plan Trustee; or 

  

	 	(E)	where such Person is the registered holder of securities as a result of carrying on the business of or acting as a nominee of a securities depositary. 

 For purposes of this Agreement, the percentage of Common Shares Beneficially Owned by any Person, shall be and be deemed to be the product determined by
the formula: 
 100 x A/B 
 Where:

  

	 	A =	the number of votes for the election of all directors generally attaching to the Common Shares Beneficially Owned by such Person; and 

  

	 	B =	the number of votes for the election of all directors generally attaching to all outstanding Common Shares. 

  

 - 5 - 

 For the purposes of the foregoing formula, where any Person is deemed to Beneficially Own unissued Common
Shares which may be acquired pursuant to Convertible Securities, such Common Shares shall be deemed to be outstanding for the purpose of calculating the percentage of Common Shares Beneficially Owned by such Person in both the numerator and the
denominator, but no other unissued Common Shares which may be acquired pursuant to any other outstanding Convertible Securities shall, for the purposes of that calculation, be deemed to be outstanding. 
  

	 	(f)	“Business Day” shall mean any day other than a Saturday, Sunday or a day that is treated as a holiday at the Corporation’s principal executive offices in
Waterloo, Canada. 

  

	 	(g)	“Business Corporations Act” shall mean the Canada Business Corporations Act, R.S.C. 1985, c. C-44, as amended, and the regulations thereunder, and any
comparable or successor laws or regulations thereto. 

  

	 	(h)	“Canadian-U.S. Exchange Rate” shall mean on any date the inverse of the U.S. Canadian Exchange Rate. 

  

	 	(i)	“Canadian Dollar Equivalent” of any amount which is expressed in United States dollars shall mean on any day the Canadian dollar equivalent of such amount
determined by reference to the Canadian-U.S. Exchange Rate on such date. 

  

	 	(j)	“close of business” on any given date shall mean the time on such date (or, if such date is not a Business Day, the time on the next succeeding Business Day) at
which the office of the transfer agent for the Common Shares in the City of Toronto (or, after the Separation Time, the offices of the Rights Agent in the City of Toronto) becomes closed to the public. 

  

	 	(k)	“Common Shares of the Corporation” and “Common Shares” shall mean the common shares in the capital stock of the Corporation as constituted as at
the Amendment Date and any other share of the Corporation into which such common shares may be subdivided, consolidated, reclassified or changed from time to time. 

  

	 	(l)	“Competing Permitted Bid” means a Take-over Bid that: 

  

	 	(i)	is made after a Permitted Bid or another Competing Permitted Bid has been made and prior to the expiry of the Permitted Bid or another Competing Permitted Bid;

  

	 	(ii)	satisfies all components of the definition of a Permitted Bid other than the requirements set out in clause (ii) of that definition; and 

  

	 	(iii)	contains, and the take-up and payment for securities tendered or deposited is subject to, an irrevocable and unqualified provision that no Common Shares will be taken up or paid for
pursuant to the Take-over Bid prior to the close of business on the date that is no earlier than the later of (1) the earliest date on which Common Shares may be taken up or paid for under any Permitted Bid or Competing Permitted Bid that is
then in existence and (2) 35 days (or such other minimum period of days as may be prescribed by applicable law in Ontario) after the date of the Take-over Bid constituting the Competing Permitted Bid. 

  

	 	(m)	“Convertible Securities” means, at any time, any securities issued by the Corporation from time to time (other than the Rights) carrying any exercise, conversion or
exchange right pursuant to which the holder thereof may acquire Common Shares or other securities which are convertible into or exercisable or exchangeable for Common Shares. 

  

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	 	(n)	“Convertible Security Acquisitions” has the meaning set forth in the definition of “Acquiring Person” herein. 

  

	 	(o)	“Co-Rights Agents” shall have the meaning set forth in subsection 4.1(a). 

  

	 	(p)	“Effective Date” shall mean the close of business on November 1, 2004. 

  

	 	(q)	“Exempt Acquisition” has the meaning set forth in the definition of “Acquiring Person” herein. 

  

	 	(r)	“Exercise Price” shall mean, as of any date after the Amendment Date, the price at which a holder may purchase the securities issuable upon exercise of one whole
Right in accordance with the terms hereof and, subject to adjustment thereof in accordance with the terms hereof, the Exercise Price shall be: 

  

	 	(i)	until the Separation Time, an amount equal to three times the Market Price, from time to time, per Common Share; and 

  

	 	(ii)	from and after the Separation Time, an amount equal to three times the Market Price, as at the Separation Time, per Common Share. 

  

	 	(s)	“Expansion Factor” shall have the meaning set forth in subsection 2.3(a)(x). 

  

	 	(t)	“Expiration Time” shall mean the earlier of: 

  

	 	(i)	the Termination Time; and 

  

	 	(ii)	the termination of the annual meeting of the shareholders of the Corporation in the year 2010; 

 provided, however, that if the resolution referred to in Section 5.19 is approved by Independent Shareholders in accordance with Section 5.19 at
or prior to such annual meeting, “Expiration Time” means the earlier of (i) the Termination Time and (ii) the termination of the annual meeting of the shareholders of the Corporation in the year that is three years after
the year in which such approval occurs. 
  

	 	(u)	“Fiduciary” shall mean a trust company registered under the trust company legislation of Canada or any province thereof, a trust company organized under the laws of
any state of the United States, a portfolio manager registered under the securities legislation of one or more provinces of Canada or an investment adviser registered under the United States Investment Advisers Act of 1940 or any other securities
legislation of the United States or any state of the United States. 

  

	 	(v)	A “Flip-in Event” shall mean a transaction occurring subsequent to the date of this Agreement as a result of which any Person shall become an Acquiring Person
provided, however, that a Flip-in Event, shall be deemed to occur at the close of business on the tenth day (or such later day as the Board of Directors of the Corporation may determine) after the Stock Acquisition Date. 

  

	 	(w)	 “Independent Shareholders” shall mean holders of outstanding Common Shares of the Corporation excluding (i) any Acquiring Person; or
(ii) any Person (other than a Person referred to in clause 1.1(e)(B)) that is making or has announced a current intention to make a Take-over Bid for Common Shares of the Corporation (including a Permitted Bid or a Competing Permitted Bid) but
excluding any such Person if the Take-over Bid so announced or made by such Person has been withdrawn, terminated or expired; or (iii) any Affiliate or Associate of such Acquiring Person or a Person referred to in clauses (ii) or (iii); or
(iv) any Person acting jointly or in concert with such Acquiring Person or a Person referred to in clause (ii); or (v) a Person who is a trustee of any employee benefit plan, share purchase plan, deferred profit sharing plan or any similar
plan 

  

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or trust for the benefit of employees of the Corporation or a Subsidiary of the Corporation, unless the beneficiaries of the plan or trust direct the manner
in which the Common Shares are to be voted or direct whether the Common Shares are to be tendered to a Take-over Bid. 

  

	 	(x)	“Market Price” per security of any securities on any date of determination shall mean the average of the daily Closing Price Per Security of such securities
(determined as described below) on each of the 20 consecutive Trading Days through and including the Trading Day immediately preceding such date; provided, however, that if an event of a type analogous to any of the events described in
Section 2.3 hereof shall have caused the price used to determine the Closing Price Per Security on any Trading Day not to be fully comparable with the price used to determine the Closing Price Per Security on such date of determination or, if
the date of determination is not a Trading Day, on the immediately preceding Trading Day, each such price so used shall be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order to
make it fully comparable with the price per security used to determine the Closing Price Per Security on such date of determination or, if the date of determination is not a Trading Day, on the immediately preceding Trading Day. The “Closing
Price Per Security” of any securities on any date shall be: 

  

	 	(i)	the closing board lot sale price or, if such price is not available, the average of the closing bid and asked prices, for such securities as reported by the securities exchange or
national securities quotation system on which such securities are listed or admitted for trading on which the largest number of such securities were traded during the most recently completed calendar year; 

  

	 	(ii)	if, for any reason, none of such prices is available on such date or the securities are not listed or admitted to trading on a securities exchange or on a national securities
quotation system, the last sale price, or in case no sale takes place on such date, the average of the high bid and low asked prices for such securities in the over-the-counter market, as quoted by any reporting system then in use (as selected by
the Board of Directors); or 

  

	 	(iii)	if the securities are not listed or admitted to trading as contemplated in clause 1.1(x)(i) or (ii), the average of the closing bid and asked prices as furnished by a professional
market maker making a market in the securities provided, however, that if on any such date the Closing Price Per Security cannot be determined in accordance with the foregoing, the Closing Price Per Security of such securities on such date shall
mean the fair value per share of such securities on such date as determined in good faith by an internationally recognized investment dealer or investment banker with respect to the fair value per share of such securities. 

The Market Price, shall be expressed in Canadian dollars and, if initially determined in respect of any day forming part of the 20 consecutive Trading
Day period in question in United States dollars, such amount shall be translated into Canadian dollars at the Canadian Dollar Equivalent thereof. 
  

	 	(y)	“1933 Securities Act” shall mean the Securities Act of 1933 of the United States, as amended, and the rules and regulations thereunder, and any
comparable or successor laws or regulations thereto. 

  

	 	(z)	“1934 Exchange Act” shall mean the Securities Exchange Act of 1934 of the United States, as amended, and the rules and regulations thereunder, and any
comparable or successor laws or regulations thereto. 

  

	 	(aa)	“Offer to Acquire” shall include: 

  

	 	(i)	an offer to purchase, or a solicitation of an offer to sell, Common Shares; and 

  

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	 	(ii)	an acceptance of an offer to sell Common Shares, whether or not such offer to sell has been solicited; 

 or any combination thereof, and the Person accepting an offer to sell shall be deemed to be making an offer to acquire to the Person that made the offer
to sell. 
  

	 	(bb)	“Offeror’s Securities” means Common Shares Beneficially Owned on the date of an Offer to Acquire by any Person who is making a Take-over Bid and
“Offeror” means a Person who has announced a current intention to make or is making a Take-over Bid. 

  

	 	(cc)	“Permitted Bid” means a Take-over Bid made by a Person by means of a Take-over Bid circular and which also complies with the following additional provisions:

  

	 	(i)	the Take-over Bid is made to all holders of record of Common Shares, other than the Offeror; 

  

	 	(ii)	the Take-over Bid shall contain, and the provisions for the take-up and payment for Common Shares tendered or deposited thereunder shall be subject to, an irrevocable and
unqualified condition that no Common Shares shall be taken up or paid for pursuant to the Take-over Bid prior to the close of business on a date which is not less than 60 days following the date of the Take-over Bid; 

  

	 	(iii)	the Take-over Bid shall contain irrevocable and unqualified provisions that, unless the Take-over Bid is withdrawn, Common Shares may be deposited pursuant to the Take-over Bid at
any time prior to the close of business on the date of first take-up or payment for Common Shares and that all Common Shares deposited pursuant to the Take-over Bid may be withdrawn at any time prior to the close of business on such date;

  

	 	(iv)	the Take-over Bid shall contain an irrevocable and unqualified condition that more than 50% of the outstanding Common Shares held by Independent Shareholders, determined as at the
close of business on the date of first take-up or payment for Common Shares under the Take-over Bid, must be deposited to the Take-over Bid and not withdrawn at the close of business on the date of first take-up or payment for Common Shares; and

  

	 	(v)	the Take-over Bid shall contain an irrevocable and unqualified provision that in the event that more than 50% of the then outstanding Common Shares held by Independent Shareholders
shall have been deposited to the Take-over Bid and not withdrawn as at the close of business on the date of first take-up or payment for Common Shares under the Take-over Bid, the Offeror will make a public announcement of that fact and the
Take-over Bid will remain open for deposits and tenders of Common Shares for not less than 10 Business Days from the date of such public announcement; 

 provided that if a Take-over Bid constitutes a Competing Permitted Bid, the term “Permitted Bid” shall also mean the Competing Permitted Bid. 
  

	 	(dd)	“Permitted Bid Acquisitions” has the meaning set forth in the definition of “Acquiring Person” herein. 

  

	 	(ee)	“Permitted Lock-up Agreement” means an agreement (the “Lock-up Agreement”) between a Person and one or more holders of Common Shares (each such
holder herein referred to as a “Locked-up Person”) (the terms of which are publicly disclosed and a copy of which is made available to the public (including the Corporation) not later than the date of the Lock-up Bid (as defined
below), or if the Lock-up Bid has been made prior to the date of the Lock-up Agreement not later than the first Business Day following the date of the Lock-up Agreement) pursuant to which each Locked-up Person agrees to deposit or tender the Common
Shares held by such holder to a Take-over Bid (the “Lock-up Bid”) made by the Person or any of such Person’s Affiliates or Associates or any other Person referred to in clause 1.1(e)(iii), provided that:

  

	 	(i)	the Lock-up Agreement permits the Locked-up Person to withdraw its Common Shares from the Lock-up Agreement in order to deposit or tender the Common Shares to another Take-over Bid
or to support another transaction prior to the Common Shares being taken up and paid for under the Lock-up Bid at a price or value per Common Share that exceeds the price or value per Common Share offered under the Lock-up Bid; or

  

 - 9 - 

	 	(ii)	the Lock-up Agreement permits the Locked-up Person to withdraw its Common Shares from the Lock-up Agreement in order to deposit or tender the Common Shares to another Take-over Bid
or to support another transaction prior to the Common Shares being taken up and paid for under the Lock-up Bid at an offering price for each Common Share that exceeds by as much as or more than a specified amount (the “Specified
Amount”) the offering price for each Common Share contained in or proposed to be contained in the Lock-up Bid and that does not by its terms provide for a Specified Amount that is greater than 7% of the offering price contained in or
proposed to be contained in the Lock-up Bid; 

 and, for greater clarity, the agreement may contain a right of first refusal or
require a period of delay to give the Person who made the Lock-up Bid an opportunity to match a higher price in another Take-over Bid or transaction or other similar limitation on a Locked-up Person’s right to withdraw Common Shares from the
agreement, so long as the limitation does not preclude the exercise by the Locked-up Person of the right to withdraw Common Shares during the period of the other Take-over Bid or transaction; and 
  

	 	(iii)	no “break-up” fees, “top-up” fees, penalties, expenses or other amounts that exceed in aggregate the greater of: 

  

	 	(A)	2.5% of the price or value of the consideration payable under the Lock-up Bid to a Locked-up Person; and 

  

	 	(B)	50% of the amount by which the price or value of the consideration received by a Locked-up Person under another Take-over Bid or transaction exceeds the price or value of the
consideration that the Locked-up Person would have received under the Lock-up Bid; 

 shall be payable by such Locked-up Person
if the Locked-up Person fails to deposit or tender Common Shares to the Lock-up Bid, or withdraws Common Shares previously tendered thereto in order to deposit or tender such Common Shares to another Take-over Bid or support another transaction.

  

	 	(ff)	“Person” shall mean any individual, firm, partnership, association, trust, trustee, personal representative, body corporate, corporation, unincorporated
organization, syndicate or other entity. 

  

	 	(gg)	“Pro Rata Acquisition” has the meaning set forth in the definition of “Acquiring Person” herein. 

  

	 	(hh)	“Record Time” shall mean the close of business on November 1, 2004. 

  

	 	(ii)	“Redemption Price” has the meaning set forth in subsection 5.1(a) herein. 

  

	 	(jj)	“Rights Certificate” shall mean, after the Separation Time, the certificate representing the Rights substantially in the form of Exhibit A hereto;

  

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	 	(kk)	“Securities Act” shall mean the Securities Act (Ontario), R.S.O. 1990, c. S-5, and the rules and regulations thereunder, each as may be amended from
time to time, and any comparable or successor laws, rules or regulations thereto. 

  

	 	(ll)	“Separation Time” shall mean the close of business on the tenth Business Day after the earlier of: 

  

	 	(i)	the Stock Acquisition Date; 

  

	 	(ii)	the date of the commencement of, or first public announcement of the intent of any Person (other than the Corporation or any Subsidiary of the Corporation) to commence a Take-over
Bid (other than a Take-over Bid which is a Permitted Bid so long as such Take-over Bid continues to satisfy the requirements of a Permitted Bid), provided that, if any Take-over Bid referred to in this clause (ii) expires, is cancelled,
terminated or otherwise withdrawn prior to the Separation Time, such Take-over Bid shall be deemed, for purposes of this subsection 1.1(ll), never to have been made; and 

  

	 	(iii)	the date upon which a Permitted Bid ceases to be a Permitted Bid; 

 or such later date as may be determined by the Board of Directors acting in good faith provided that, if the Board of Directors determines pursuant to Section 5.1 to waive the application of Section 3.1 to a Flip-in Event, the
Separation Time in respect of such Flip-in Event shall be deemed never to have occurred. 
  

	 	(mm)	“Stock Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include, without limitation, a report filed
pursuant to Section 101 of the Securities Act or Section 13(d) under the 1934 Exchange Act) by the Corporation or an Acquiring Person that a Person has become an Acquiring Person. 

  

	 	(nn)	“Subsidiary” of any specified Person shall mean any corporation or other entity controlled by such specified Person. 

  

	 	(oo)	“Take-over Bid” means an Offer to Acquire Common Shares or securities convertible into Common Shares, where the Common Shares subject to the Offer to Acquire,
together with the Common Shares into which the securities subject to the Offer to Acquire are convertible, and the Offeror’s Securities, constitute in the aggregate 20% or more of the outstanding Common Shares at the date of the Offer to
Acquire. 

  

	 	(pp)	“Termination Time” shall mean the time at which the right to exercise Rights shall terminate pursuant to Section 5.1, 5.18 or 5.19 hereof.

  

	 	(qq)	“Trading Day”, when used with respect to any securities, shall mean a day on which the securities exchange or national securities quotation system on which such
securities are listed or admitted to trading on which the largest number of such securities were traded during the most recently completed calendar year is open for the transaction of business or, if the securities are not listed or admitted to
trading on any securities exchange, a Business Day. 

  

	 	(rr)	“U.S. Canadian Exchange Rate” shall mean on any date: 

  

	 	(i)	if on such date the Bank of Canada sets an average noon spot rate of exchange with a conversion of one United States dollar into Canadian dollars, such rate;

  

	 	(ii)	in any other case, the rate for such date for the conversion of one United States dollar into Canadian dollars which is calculated in the manner which shall be determined by the
Board of Directors from time to time acting in good faith. 

  

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	 	(ss)	“U.S. Dollar Equivalent” of any amount which is expressed in Canadian dollars shall mean on any day the United States dollar equivalent of such amount determined by
reference to the U.S.-Canadian Exchange Rate on such date. 

  

	1.2	Currency 

 All sums of money which are referred to
in this Agreement are expressed in lawful money of Canada. 
  

	1.3	Acting Jointly or in Concert 

 For purposes of this
Agreement, a Person is acting jointly or in concert with another Person if such Person has any agreement, arrangement or understanding (whether formal or informal and whether or not in writing) with such other Person to acquire, or Offer to Acquire,
any Common Shares of the Corporation (other than (A) customary agreements with and between underwriters and banking group or selling group members with respect to a distribution of securities by way of prospectus or private placement, or
(B) pursuant to a pledge of securities in the ordinary course of business). 
  

	1.4	Control 

 A Person is “controlled”
by another Person or two or more other Persons acting jointly or in concert if: 
  

	 	(a)	in the case of a body corporate, securities entitled to vote in the election of directors of such body corporate carrying more than 50% of the votes for the election of directors
are held, directly or indirectly, by or for the benefit of the other Person or Persons acting jointly or in concert and the votes carried by such securities are entitled, if exercised, to elect a majority of the board of directors of such body
corporate; or 

  

	 	(b)	in the case of a Person which is not a body corporate, more than 50% of the voting or equity interests of such entity are held, directly or indirectly, by or for the benefit of the
other Person or Persons 

 and “controls”, “controlling” and “under common control with”
shall be interpreted accordingly. 
  

	1.5	Holder of Rights and Trust Units 

 As used in this
Agreement, unless the context otherwise requires, the term “holder” of any Rights shall mean the registered holder of such Rights (or, prior to the Separation Time, the associated Common Shares). 
  

	1.6	References to this Agreement 

 In this Agreement,
unless otherwise provided herein and unless the context otherwise requires, references to “this Agreement”, “herein”, “hereby” and “hereunder” mean this Amended and Related
Shareholder Rights Plan Agreement dated as of December 6, 2007 between the Corporation and the Rights Agent as amended and supplemented from time to time. 
  

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 ARTICLE 2 
 THE RIGHTS 
  

	2.1	Legend on Common Share Certificates 

 Certificates
for the Common Shares, including without limitation Common Shares issued upon the conversion of Convertible Securities, issued after the Record Time but prior to the earlier of the Separation Time and the Expiration Time shall evidence one Right for
each Common Share represented thereby and, commencing as soon as reasonably practicable after the Record Time, shall have impressed on, printed on, written on or otherwise affixed to them (i) the legend set forth in Section 2.1 of the
Original Plan, which legend shall be deemed to be amended for all purposes to read the same as the following legend, or (ii) the following legend: 
 Until the Separation Time (as defined in the Rights Agreement referred to below), this certificate also evidences and entitles the holder hereof to certain Rights as set forth in an Amended and Restated Shareholder
Rights Plan Agreement dated as of December 6, 2007 (amending and restating the Shareholder Rights Plan Agreement dated as of November 1, 2004), as such may from time to time be amended, restated, varied or replaced (the “Rights
Agreement”), between Open Text Corporation (the “Corporation”) and Computershare Investor Services as Rights Agent, the terms of which are hereby incorporated herein by reference and, a copy of which is on file at the registered
office of the Corporation. In certain circumstances, as set forth in the Rights Agreement, such Rights may be amended, redeemed, may expire, may become void (if, in certain cases, they are “Beneficially Owned” by an “Acquiring
Person”, as such terms are defined in the Rights Agreement, or a transferee thereof) or may be evidenced by separate certificates and may no longer be evidenced by this certificate. The Corporation will mail or arrange for the mailing of a copy
of the Rights Agreement to the holder of this certificate without charge as soon as practicable, after the receipt of a written request therefor. 
 Certificates representing Common Shares that are issued and outstanding at the Record Time or the Amendment Date shall evidence one Right for each Common Share evidenced thereby notwithstanding the absence of the foregoing legend, until the
earlier of the Separation Time and the Expiration Time. 
  

	2.2	Initial Exercise Price; Exercise of Rights; Detachment of Rights 

  

	 	(a)	Subject to adjustment as herein set forth, each Right will entitle the holder thereof, after the Separation Time, to purchase, for the Exercise Price, or its U.S. Dollar
Equivalent as at the Business Day immediately preceding the day of exercise of the Right, one Common Share. Notwithstanding any other provision of this Agreement, any Rights held by the Corporation or any of its Subsidiaries shall be void.

  

	 	(b)	Until the Separation Time, 

  

	 	(i)	no Right may be exercised; and 

  

	 	(ii)	each Right will be evidenced by the certificate for the associated Common Share and will be transferable only together with, and will be transferred by a transfer of, such
associated share. 

  

	 	(c)	 After the Separation Time and prior to the Expiration Time, the Rights (i) may be exercised; and (ii) will be transferable independent of Common Shares.
Promptly following the Separation Time the Rights Agent will mail to each holder of record of Common Shares as of the Separation Time and, in respect of each Convertible Security converted into Common Shares after the Separation Time and prior to
the Expiration Time promptly after such conversion to the holder so converting (other than an Acquiring Person and, in respect of any Rights Beneficially Owned by such Acquiring Person which are not held of record by such Acquiring Person, the
holder of record of such Rights) at such holder’s address as shown by the records of the Corporation (the Corporation hereby agreeing to furnish copies of such records to the Rights Agent for this purpose), (x) a Rights Certificate with
registration particulars appropriately completed, representing the number of Rights held by such holder at the Separation Time and having such marks of identification or designation and such legends, summaries or endorsements printed thereon as the
Corporation may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any 

  

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rule or regulation of any stock exchange or securities quotation system on which the Rights may from time to time be listed or traded, or to conform to
usage, and (y) a disclosure statement describing the Rights. 

  

	 	(d)	Rights may be exercised in whole or in part on any Business Day (or on any other day which, in the city at which an Election to Exercise (as hereinafter defined) is duly submitted
to the Rights Agent in accordance with this Agreement, is not a Saturday, Sunday or a day that is treated as a holiday in such city) after the Separation Time and prior to the Expiration Time by submitting to the Rights Agent (at its office in the
City of Toronto, Canada or at any other office of the Rights Agent in the cities designated from time to time for that purpose by the Corporation), the Rights Certificate evidencing such Rights together with an Election to Exercise (an
“Election to Exercise”) substantially in the form attached to the Rights Certificate duly completed, accompanied by payment by certified cheque, banker’s draft or money order payable to the order of the Rights Agent, of a sum
equal to the Exercise Price multiplied by the number of Rights being exercised and a sum sufficient to cover any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of Rights Certificates or
the issuance or delivery of certificates for Common Shares in a name other than that of the holder of the Rights being exercised. 

  

	 	(e)	Upon receipt of a Rights Certificate, with a duly completed Election to Exercise (which does not indicate that the holder so exercising is an Acquiring Person) accompanied by
payment as set forth in subsection 2.2(d) above, the Rights Agent will thereupon promptly: 

  

	 	(i)	requisition from the transfer agent or any co-transfer agent of the Common Shares certificates for the number of Common Shares to be purchased (the Corporation hereby irrevocably
authorizing its transfer agent to comply with all such requisitions); 

  

	 	(ii)	when appropriate, requisition from the Corporation the amount of cash to be paid in lieu of issuing fractional Common Shares and, after receipt, deliver such cash to or to the order
of the registered holder of the Rights Certificate; 

  

	 	(iii)	after receipt of the Common Share certificates, deliver the same to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be
designated by such holder; and 

  

	 	(iv)	tender to the Corporation all payments received on exercise of the Rights. 

  

	 	(f)	In case the holder of any Rights shall exercise less than all the Rights evidenced by such holder’s Rights Certificate, a new Rights Certificate evidencing the Rights remaining
unexercised will be issued by the Rights Agent to such holder or to such holder’s duly authorized assigns. 

  

	 	(g)	The Corporation covenants and agrees that it will: 

  

	 	(i)	take all such action as may be necessary and within its power to ensure that all shares delivered upon exercise of Rights shall, at the time of delivery of the certificates for such
shares (subject to payment of the Exercise Price), be duly and validly authorized, executed, issued and delivered and fully paid and non-assessable; 

  

	 	(ii)	take all such action as may be necessary and within its power to comply with any applicable requirements of the Business Corporations Act, the Securities Act, the
securities acts or comparable legislation of each of the other provinces of Canada, the 1933 Securities Act and the 1934 Exchange Act, and the rules and regulations thereunder or any other applicable law, rule or regulation, in
connection with the issuance and delivery of the Rights Certificates and the issuance of any shares upon exercise of Rights; 

  

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	 	(iii)	use reasonable efforts to cause all shares issued upon exercise of Rights to be listed on the principal exchanges or traded in the over-the-counter markets on which the shares were
traded immediately prior to the Stock Acquisition Date; 

  

	 	(iv)	cause to be reserved and kept available out of its authorized and unissued Common Shares the number of Common Shares that, as provided in this Agreement, will from time to time be
sufficient to permit the exercise in full of all outstanding Rights; and 

  

	 	(v)	pay when due and payable any and all Canadian and United States federal, provincial, and state transfer taxes (for greater certainty not including any income taxes or capital gains
of the holder or exercising holder or any liability of the Corporation to withhold tax) and charges which may be payable in respect of the original issuance or delivery of the Rights Certificates or certificates for shares, provided that the
Corporation shall not be required to pay any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of Rights Certificates or the issuance or delivery of certificates for shares in a name other
than that of the holder of the Rights being transferred or exercised. 

  

	2.3	Adjustments to Exercise Price; Number of Rights 

 The Exercise Price, the number and kind of securities subject to purchase upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 2.3. 
  

	 	(a)	In the event the Corporation shall at any time after the Amendment Date and prior to the Expiration Time: 

  

	 	(i)	declare or pay a dividend on the Common Shares payable in Common Shares (or other capital stock or securities exchangeable for or convertible into or giving a right to acquire
Common Shares or other capital stock) other than pursuant to any optional stock dividend program, dividend reinvestment plan or a dividend payable on Common Shares in lieu of a regular periodic cash dividend; 

  

	 	(ii)	subdivide or change the then outstanding Common Shares into a greater number of Common Shares; 

  

	 	(iii)	combine or change the then outstanding Common Shares into a smaller number of Common Shares; or 

  

	 	(iv)	issue any Common Shares (or other capital stock or securities exchangeable for or convertible into or giving a right to acquire Common Shares or other capital stock) in respect of,
in lieu of or in exchange for existing Common Shares in a reclassification, amalgamation, merger, statutory arrangement or consolidation, 

 the Exercise Price and the number of Rights outstanding, or, if the payment or effective date therefor shall occur after the Separation Time, the securities purchasable upon exercise of Rights shall be adjusted in the
manner set forth below. If the Exercise Price and number of Rights outstanding are to be adjusted (x) the Exercise Price in effect after such adjustment shall be equal to the Exercise Price in effect immediately prior to such adjustment divided
by the number of Common Shares (or other capital stock) (the “Expansion Factor”) that a holder of one Common Share immediately prior to such dividend, subdivision, change, combination or issuance would hold thereafter as a result
thereof and (y) each Right held prior to such adjustment shall become that number of Rights equal to the Expansion Factor, and the adjusted number of Rights will be deemed to be allocated among the Common Shares with respect to which the
original Rights were associated (if they remain outstanding) and the shares issued in respect of such dividend, subdivision, change, combination or issuance, so that each such Common Share (or other capital 

  

 - 15 - 

 
stock) will have exactly one Right associated with it. If the securities purchasable upon exercise of Rights are to be adjusted, the securities purchasable
upon exercise of each Right after such adjustment will be the number of securities that a holder of the securities purchasable upon exercise of one Right immediately prior to such dividend, subdivision, change, combination or issuance would hold
thereafter as a result thereof. If after the Amendment Date and prior to the Expiration Time the Corporation shall issue any shares of capital stock other than Common Shares in a transaction of a type described in clause 2.3(a)(i) or (iv), shares of
such capital stock shall be treated herein as nearly equivalent to Common Shares as may be practicable and appropriate under the circumstances and the Corporation and the Rights Agent agree to amend this Agreement in order to effect such treatment.
If an event occurs which would require an adjustment under both this Section 2.3 and Section 3.1 hereof, the adjustment provided for in this Section 2.3 shall be in addition to and shall be made prior to any adjustment required
pursuant to Section 3.1 hereof. Adjustments pursuant to subsection 2.3(a) shall be made successively, whenever an event referred to in subsection 2.3(a) occurs. 
 In the event the Corporation shall at any time after the Amendment Date and prior to the Separation Time issue any Common Shares otherwise than in a transaction referred to in the preceding paragraph, each such Common
Share so issued shall automatically have one new Right associated with it, which Right shall be evidenced by the certificate representing such Common Share. 
  

	 	(b)	In the event the Corporation shall at any time after the Amendment Date and prior to the Expiration Time fix a record date for the making of a distribution to all holders of Common
Shares of rights or warrants entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Common Shares (or securities convertible into or exchangeable for or carrying a right to purchase or
subscribe for Common Shares) at a price per Common Share (or, if a security convertible into or exchangeable for or carrying a right to purchase or subscribe for Common Shares, having a conversion, exchange or exercise price (including the price
required to be paid to purchase such convertible or exchangeable security or right per share)) less than 90% of the Market Price per Common Share on such record date, the Exercise Price shall be adjusted in the manner set forth below. The Exercise
Price in effect after such record date shall equal the Exercise Price in effect immediately prior to such record date multiplied by a fraction, of which the numerator shall be the number of Common Shares outstanding on such record date plus the
number of Common Shares which the aggregate offering price of the total number of Common Shares so to be offered (and/or the aggregate initial conversion, exchange or exercise price of the convertible or exchangeable securities or rights so to be
offered (including the price required to be paid to purchase such convertible or exchangeable securities or rights)) would purchase at such Market Price and of which the denominator shall be the number of Common Shares outstanding on such record
date plus the number of additional Common Shares to be offered for subscription or purchase (or into which the convertible or exchangeable securities or rights so to be offered are initially convertible, exchangeable or exercisable). In case such
subscription price is satisfied in whole or in part by consideration in a form other than cash the value of such consideration shall be as determined in good faith by the Board of Directors whose determination shall be described in a statement filed
with the Rights Agent and shall be binding on the Rights Agent and the holders of Rights. 

 Such adjustment shall be made
successively whenever such a record date is fixed. For purposes of this paragraph (b), the granting of the right to purchase Common Shares pursuant to any dividend or interest reinvestment plan and/or any Common Share purchase plan providing for the
reinvestment of dividends or interest payable on securities of the Corporation and/or the investment of periodic optional payments and/or employee benefit or similar plans (so long as such right to purchase is in no case evidenced by the delivery of
rights or warrants) shall not be deemed to constitute an issue of rights or warrants by the Corporation; provided, however, that in the case of any dividend or interest reinvestment plan, the right to purchase Common Shares is at a price per share
of not less than 90% of the current market price per share (determined as provided in such plans) of the Common Shares. 
  

 - 16 - 

	 	(c)	In the event the Corporation shall at any time after the Amendment Date and prior to the Expiration Time fix a record date for the making of a distribution to all holders of Common
Shares of evidences of indebtedness or assets (other than a regular periodic cash dividend or a dividend paid in Common Shares) or rights or warrants entitling them to subscribe for or purchase Common Shares (or Convertible Securities in respect of
Common Shares) at a price per Common Share (or, in the case of a Convertible Security in respect of Common Shares having a conversion or exercise price per share (including the price required to be paid to purchase such Convertible Security) less
than 90% of the Market Price per Common Share on such record date (excluding those referred to in subsection 2.3(b)), the Exercise Price shall be adjusted in the manner set forth below. The Exercise Price in effect after such record date shall equal
the Exercise Price in effect immediately prior to such record date less the fair market value (as determined in good faith by the Board of Directors of the Corporation) of the portion of the assets, evidences of indebtedness, rights or warrants so
to be distributed applicable to each of the securities purchasable upon exercise of one Right (such determination to be described in a statement filed with the Rights Agent shall be binding on the Rights Agent and the holders of the Rights). Such
adjustment shall be made successively whenever such a record date is fixed. 

  

	 	(d)	Each adjustment made pursuant to this Section 2.3 shall be made as of: 

  

	 	(i)	the payment or effective date for the applicable dividend, subdivision, change, combination or issuance, in the case of an adjustment made pursuant to paragraph (a) above; and

  

	 	(ii)	the record date for the applicable dividend or distribution, in the case of an adjustment made pursuant to paragraph (b) or (c) above, 

 subject to readjustment to reverse the same if such distribution shall not be made. 
  

	 	(e)	In the event the Corporation shall at any time after the Amendment Date and prior to the Expiration Time issue any shares of capital stock (other than Common Shares), or rights or
warrants to subscribe for or purchase any such capital stock, or securities convertible into or exchangeable for any such capital stock, in a transaction referred to in clause (a)(i) or (a)(iv) above, or if the Corporation shall take any other
action (other than the issue of Common Shares) which might have a negative effect on the holders of Rights, if the Board of Directors acting in good faith determines that the adjustments contemplated by paragraphs (a), (b) and (c) above
are not applicable or will not appropriately protect the interests of the holders of Rights, the Corporation may determine what other adjustments to the Exercise Price, number of Rights and/or securities purchasable upon exercise of Rights would be
appropriate and, if the adjustments contemplated by paragraphs (a), (b) and (c) above are applicable, notwithstanding such paragraphs, the adjustments so determined by the Corporation, rather than adjustments contemplated by paragraphs
(a), (b) and (c) above, shall be made. The Corporation and the Rights Agent shall amend this Agreement in accordance with subsections 5.4(b) and 5.4(c), as the case may be, to provide for such adjustments. 

  

	 	(f)	Each adjustment to the Exercise Price made pursuant to this Section 2.3 shall be calculated to the nearest cent. Whenever an adjustment to the Exercise Price is made pursuant
to this Section 2.3, the Corporation shall: 

  

	 	(i)	promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment; and 

  

	 	(ii)	promptly file with the Rights Agent and with each transfer agent for the Common Shares a copy of such certificate and mail a brief summary thereof to each holder of Rights who
requests a copy. 

  

 - 17 - 

 Failure to file such certificate or cause such summary to be mailed as aforesaid, or any defect therein,
shall not affect the validity of any such adjustment or change. 
  

	 	(g)	Subject to Section 5.3, irrespective of any adjustment or change in the securities purchasable upon exercise of the Rights, the Rights Certificates theretofore and thereafter
issued may continue to express the securities so purchasable that were expressed in the initial Rights Certificates issued hereunder. 

  

	2.4	Date on Which Exercise is Effective 

 Each person in
whose name any certificate for Common Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Common Shares represented thereby, and such certificate shall be dated, the date upon
which the Rights Certificate evidencing such Rights was duly surrendered (together with a duly completed Election to Exercise) and payment of the Exercise Price for such Rights (and any applicable transfer taxes and other governmental charges
payable by the exercising holder hereunder) was made; provided, however, that if the date of such surrender and payment is a date upon which the Common Share transfer books of the Corporation are closed, such person shall be deemed to have become
the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Common Share transfer books of the Corporation are open. 
  

	2.5	Execution, Authentication, Delivery and Dating of Rights Certificates 

  

	 	(a)	The Rights Certificates shall be executed on behalf of the Corporation by any one of its Chairman of the Board, the President, the Chief Executive Officer, the Chief Financial
Officer, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Corporation. The signature of any of these officers on the Rights Certificates may be manual or facsimile. Rights Certificates
bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Corporation shall bind the Corporation, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
countersignature and delivery of such Rights Certificates. Promptly after the Corporation learns of the Separation Time, the Corporation will notify the Rights Agent of such Separation Time and will deliver Rights Certificates executed by the
Corporation to the Rights Agent for countersignature, and the Rights Agent shall countersign (manually or by facsimile signature in a manner satisfactory to the Corporation) and mail such Rights Certificates to the holders of the Rights pursuant to
subsection 2.2(c) hereof. No Rights Certificate shall be valid for any purpose until countersigned by the Rights Agent as aforesaid. 

  

	 	(b)	Each Rights Certificate shall be dated the date of countersignature thereof. 

  

	2.6	Registration, Registration of Transfer and Exchange 

  

	 	(a)	The Corporation will cause to be kept a register (the “Rights Register”) in which, subject to such reasonable regulations as it may prescribe, the Corporation will
provide for the registration and transfer of Rights. The Rights Agent is hereby appointed “Rights Registrar” for the purpose of maintaining the Rights Register for the Corporation and registering Rights and transfers of Rights as herein
provided. In the event that the Rights Agent shall cease to be the Rights Registrar, the Rights Agent will have the right to examine the Rights Register at all reasonable times. 

  

	 	(b)	After the Separation Time and prior to the Expiration Time, upon surrender for registration of transfer or exchange of any Rights Certificate, and subject to the provisions of
subsection 2.6(d) below, the Corporation shall execute, and the Rights Agent shall countersign and deliver, in the name of the holder or the designated transferee or transferees, as required pursuant to the holder’s instructions, one or more
new Rights Certificates evidencing the same aggregate number of Rights as did the Rights Certificates so surrendered. 

  

 - 18 - 

	 	(c)	All Rights issued upon any registration of transfer or exchange of Rights Certificates shall be the valid obligations of the Corporation, and such Rights shall be entitled to the
same benefits under this Agreement as the Rights surrendered upon such registration of transfer or exchange. 

  

	 	(d)	Every Rights Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to
the Corporation or the Rights Agent, as the case may be, duly executed by the holder thereof or such holder’s attorney duly authorized in writing. As a condition to the issuance of any new Rights Certificate under this Section 2.6, the
Corporation may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. 

  

	2.7	Mutilated, Destroyed, Lost and Stolen Rights Certificates 

  

	 	(a)	If any mutilated Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, the Corporation shall execute and the Rights Agent shall countersign and deliver
in exchange therefor a new Rights Certificate evidencing the same number of Rights as did the Rights Certificate so surrendered. 

  

	 	(b)	If there shall be delivered to the Corporation and the Rights Agent prior to the Expiration Time (i) evidence of ownership of any Rights Certificate, (ii) evidence to
their satisfaction of the destruction, loss or theft of any Rights Certificate and (iii) such security or indemnity as may be required by each of them in their sole discretion to save each of them and any of their agents harmless, then, in the
absence of notice to the Corporation or the Rights Agent that such Rights Certificate has been acquired by a bona fide purchaser, the Corporation shall execute and upon its request the Rights Agent shall countersign and deliver, in lieu of any such
destroyed, lost or stolen Rights Certificate, a new Rights Certificate evidencing the same number of Rights as did the Rights Certificate so destroyed, lost or stolen. 

  

	 	(c)	As a condition to the issuance of any new Rights Certificate under this Section 2.7, the Corporation may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Rights Agent) connected therewith. 

  

	 	(d)	Every new Rights Certificate issued pursuant to this Section 2.7 in lieu of any destroyed, lost or stolen Rights Certificate shall evidence an original additional contractual
obligation of the Corporation, whether or not the destroyed, lost or stolen Rights Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other
Rights, duly issued hereunder. 

  

	2.8	Persons Deemed Owners 

 The Corporation, the Rights
Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person, in whose name a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) is registered as the absolute owner thereof and
of the Rights evidenced thereby for all purposes whatsoever. 
  

	2.9	Delivery and Cancellation of Certificates 

 All
Rights Certificates surrendered upon exercise or for redemption, registration of transfer or exchange shall, if surrendered to any Person other than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly cancelled by
the Rights Agent. The Corporation may at any time deliver to the Rights Agent for cancellation any Rights Certificates previously countersigned and delivered hereunder which the Corporation may have acquired in any manner whatsoever, and all Rights
Certificates so delivered shall be promptly cancelled by the Rights Agent. No Rights Certificate shall be countersigned in lieu of or in exchange for any Rights Certificates cancelled as provided in this Section 2.9, except as expressly
permitted by this Agreement. The Rights Agent shall, subject to applicable law, destroy all cancelled Rights Certificates and deliver a certificate of destruction to the Corporation. 
  

 - 19 - 

	2.10	Agreement of Rights Holders 

 Every holder of Rights
by accepting the same consents and agrees with the Corporation and the Rights Agent and with every other holder of Rights: 
  

	 	(a)	to be bound by and subject to the provisions of this Agreement, as amended from time to time in accordance with the terms hereof, in respect of all Rights held;

  

	 	(b)	that, prior to the Separation Time, each Right will be transferable only together with, and will be transferred by a transfer of, the associated Common Share;

  

	 	(c)	that, after the Separation Time, the Rights Certificates will be transferable only on the Rights Register as provided herein; 

  

	 	(d)	that prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) for registration of transfer, the Corporation, the
Rights Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on such Rights Certificate or the associated Common Share certificate made by anyone other than the Corporation or the Rights Agent) for all purposes
whatsoever, and neither the Corporation nor the Rights Agent shall be affected by any notice to the contrary; 

  

	 	(e)	that such holder of Rights has waived his right to receive any fractional Rights or any fractional shares upon exercise of a Right (except as provided herein);

  

	 	(f)	that, subject to the provisions of Section 5.4, without the approval of any holder of Rights or Common Shares and upon the sole authority of the Board of Directors acting in
good faith this Agreement may be supplemented or amended from time to time as provided herein; and 

  

	 	(g)	that, notwithstanding anything in this Agreement to the contrary, neither the Corporation nor the Rights Agent shall have any liability to any holder of a Right or any other Person
as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or
administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation. 

 ARTICLE 3 
 ADJUSTMENTS TO THE RIGHTS
IN THE EVENT OF CERTAIN TRANSACTIONS 
  

	3.1	Flip-in Event 

  

	 	(a)	 Subject to subsections 3.1(b), 5.1(b), 5.1(c) and 5.1(d), hereof, in the event that prior to the Expiration Time a Flip-in Event shall occur, the Corporation shall
take such action as shall be necessary to ensure and provide, within 10 Business Days thereafter or such longer period as may be required to satisfy the requirements of the applicable securities acts or comparable legislation so that, except as
provided below, each Right shall thereafter constitute the right to purchase from the Corporation, upon exercise thereof in accordance with the terms hereof, that number of Common Shares of the Corporation having an aggregate Market Price on the
date of consummation or occurrence of such Flip-in Event equal to twice the Exercise Price for an amount 

  

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in cash equal to the Exercise Price, (such right to be appropriately adjusted in a manner analogous to the applicable adjustment provided for in
Section 2.3 in the event that after such date of consummation or occurrence an event of a type analogous to any of the events described in Section 2.3 shall have occurred with respect to such Common Shares). 

 

	 	(b)	Notwithstanding the foregoing or any other provisions of this Agreement, upon the occurrence of any Flip-in Event, any Rights that are or were Beneficially Owned on or after the
earlier of the Separation Time or the Stock Acquisition Date by: 

  

	 	(i)	an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of an
Acquiring Person); or 

  

	 	(ii)	a transferee, direct or indirect, of an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with, an Acquiring Person
or any Affiliate or Associate of an Acquiring Person) in a transfer made after the date hereof, whether or not for consideration, that the Board of Directors acting in good faith has determined is part of a plan, arrangement or scheme of an
Acquiring Person, (or any Affiliate or Associate of an Acquiring Person) that has the purpose or effect of avoiding clause (i) of this subsection 3.1(b), 

 shall become void and any holder of such Rights (including transferees) shall thereafter have no right, to exercise such Rights under any provision of
this Agreement and shall not have any other rights whatsoever in respect of such Rights, whether under any provision of this Agreement or otherwise. 
  

	 	(c)	Any Rights Certificate that represents Rights Beneficially Owned by a Person described in either clauses (i) or (ii) of subsection 3.1(b) or transferred to any nominee of
any such Person, and any Rights Certificate issued upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain the following legend: 

 “The Rights represented by this Rights Certificate were Beneficially Owned by a Person who was an Acquiring Person or who was an Affiliate or an
Associate of an Acquiring Person (as such terms are defined in the Rights Agreement) or was acting jointly or in concert with any of them. This Rights Certificate and the Rights represented hereby shall become void in the circumstances specified in
subsection 3.1(b) of the Rights Agreement.”, 
 provided that the Rights Agent shall not be under any responsibility to ascertain the
existence of facts that would require the imposition of such legend but shall be required to impose such legend only if instructed to do so by the Corporation or if a holder fails to certify upon transfer or exchange in the space provided on the
Rights Certificate that such holder is not an Acquiring Person, an Affiliate or Associate thereof or a Person acting jointly or in concert with any of them. 
 ARTICLE 4 
 THE RIGHTS AGENT 
  

	4.1	General 

  

	 	(a)	 The Corporation hereby appoints the Rights Agent to act as agent for the Corporation and the holders of Rights in accordance with the terms and conditions hereof,
and the Rights Agent hereby accepts such appointment. The Corporation may from time to time appoint such co-Rights Agents (the “Co-Rights Agents”) as it may deem necessary or desirable. In the event the Corporation appoints one or
more Co-Rights Agents, the respective duties of the Rights Agent and Co-Rights Agents shall be as the Corporation may determine with the approval of the Rights Agent and Co- 

  

 - 21 - 

	 	 
Rights Agent. The Corporation agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on
demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the execution and administration of this Agreement and the exercise and performance of its duties hereunder. The Corporation also agrees to
indemnify the Rights Agent, its directors, officers, employees and agents for, and to hold them harmless against, any loss, liability, cost, claim, action, damage or expense, incurred without negligence, bad faith or wilful misconduct on the part of
the Rights Agent or its directors, officers, employees and agents for anything done, suffered or omitted by the Rights Agent in connection with the acceptance, execution and administration of this Agreement and the exercise and performance of its
duties hereunder, including the costs and expenses of defending against any claim of liability, which right to indemnification will survive the termination of this Agreement or the resignation or removal of the Rights Agent.

  

	 	(b)	The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its administration of this
Agreement in reliance upon any certificate for Common Shares, Rights Certificate, certificate for other securities of the Corporation, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper person or persons. 

  

	 	(c)	The Corporation shall inform the Rights Agent, in a reasonably timely manner, of events which may materially affect the administration of this Agreement by the Rights Agent. At any
time, upon request, the Corporation shall provide to the Rights Agent an incumbency certificate with respect to the current directors and officers of the Corporation. 

  

	4.2	Merger, Amalgamation or Consolidation or Change of Name of Rights Agent 

  

	 	(a)	Any corporation into which the Rights Agent or any successor Rights Agent may be merged or amalgamated or with which it may be consolidated, or any corporation resulting from any
merger, amalgamation or consolidation to which the Rights Agent or any successor Rights Agent is a party or any corporation succeeding to the shareholder or stockholder services business of the Rights Agent or any successor Rights Agent, will be the
successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor Rights Agent
under the provisions of Section 4.4 hereof. In case, at the time such successor Rights Agent succeeds to the agency created by this Agreement, any of the Rights Certificates have been countersigned but not delivered, any such successor Rights
Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates have not been countersigned, any successor Rights Agent may
countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates will have the full force provided in the Rights Certificates and in
this Agreement. 

  

	 	(b)	In case at any time the name of the Rights Agent is changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may
adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates
either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

  

 - 22 - 

	4.3	Duties of Rights Agent 

 The Rights Agent undertakes
the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Corporation and the holders of Rights Certificates, by their acceptance thereof, shall be bound: 
  

	 	(a)	The Rights Agent may consult with legal counsel (who may be legal counsel for the Corporation), and the opinion of such counsel will be full and complete authorization and
protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion; the Rights Agent may also, with the approval of the Corporation (such approval not to be unreasonably withheld) and at the
expense of the Corporation, consult with such other experts as the Rights Agent shall consider necessary or appropriate to properly carry out the duties and obligations imposed under this Agreement and the Rights Agent shall be entitled to act and
rely in good faith on the advice of any such expert. 

  

	 	(b)	Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary or desirable that any fact or matter be proved or established by the Corporation
prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by a person believed
by the Rights Agent to be the Chairman of the Board, the President, the Chief Executive Officer, the Chief Financial Officer, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Corporation and
delivered to the Rights Agent; and such certificate will be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate.

  

	 	(c)	The Rights Agent will be liable hereunder only for its own negligence, bad faith or wilful misconduct. 

  

	 	(d)	The Rights Agent will not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the certificates for Common Shares or the Rights
Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and will be deemed to have been made by the Corporation only. 

  

	 	(e)	The Rights Agent will not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due authorization, execution and
delivery hereof by the Rights Agent) or in respect of the validity or execution of any Common Share certificate or Rights Certificate (except its countersignature thereof); nor will it be responsible for any breach by the Corporation of any covenant
or condition contained in this Agreement or in any Rights Certificate; nor will it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to subsection 3.1(b) hereof) or any adjustment required
under the provisions of Section 2.3 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of
Rights after receipt of the certificate contemplated by Section 2.3 describing any such adjustment); nor will it by any act hereunder be deemed to make any representation or warranty as to the authorization of any Common Shares to be issued
pursuant to this Agreement or any Rights or as to whether any Common Shares will, when issued, be duly and validly authorized, executed, issued and delivered and fully paid and non-assessable. 

  

	 	(f)	The Corporation agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts,
instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

  

	 	(g)	 The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any person believed by the
Rights Agent to be the 

  

 - 23 - 

	 	 
Chairman of the Board, the President, the Chief Executive Officer, the Chief Financial Officer, any Vice President, the Secretary or any Assistant Secretary
or the Treasurer or any Assistant Treasurer of the Corporation, and to apply to such persons for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in reliance upon
instructions of any such person; it is understood that instructions to the Rights Agent shall, except where circumstances make it impracticable or the Rights Agent otherwise agrees, be given in writing and, where not in writing, such instructions
shall be confirmed in writing as soon as reasonably possible after the giving of such instructions. 

  

	 	(h)	The Rights Agent and any shareholder or stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in Common Shares, Rights or other securities of the
Corporation or become pecuniarily interested in any transaction in which the Corporation may be interested, or contract with or lend money to the Corporation or otherwise act as fully and freely as though it were not Rights Agent under this
Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Corporation or for any other legal entity. 

  

	 	(i)	The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and
the Rights Agent will not be answerable or accountable for any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss to the Corporation resulting from any such act, omission, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment thereof. 

  

	4.4	Change of Rights Agent 

 The Rights Agent may resign
and be discharged from its duties under this Agreement upon 60 days’ notice (or such lesser notice as is acceptable to the Corporation) in writing mailed to the Corporation and to each transfer agent of Common Shares by registered or
certified mail, and to the holders of the Rights in accordance with Section 5.9. The Corporation may remove the Rights Agent upon 30 days’ notice in writing given to the Rights Agent and to each transfer agent of the Common Shares (by
personal delivery, or registered or certified mail). If the Rights Agent should resign or be removed or otherwise become incapable of acting, the Corporation will appoint a successor to the Rights Agent. If the Corporation fails to make such
appointment within a period of 30 days after such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent, then the resigning Rights Agent, at the expense of the Corporation,
or any holder of any Rights may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Corporation or by such a court, shall be a corporation incorporated under
the laws of Canada or a province thereof authorized to carry on the business of a trust company in the Province of Ontario. After appointment, the successor Rights Agent will be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall, upon the receipt of all outstanding fees and expenses, deliver and transfer to the successor Rights Agent any property at the time held
by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Corporation will file notice thereof in writing with the predecessor
Rights Agent and each transfer agent of the Common Shares, and mail a notice thereof in writing to the holders of the Rights. Failure to give any notice provided for in this Section 4.4, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 ARTICLE 5 
 MISCELLANEOUS 
  

	5.1	Redemption and Termination 

  

	 	(a)	 The Board of Directors acting in good faith may, with the prior consent of holders of Common Shares or of the holders of Rights given in accordance with subsection
5.1(f) or 5.1(g), as the case may be, at any time prior to the occurrence of a Flip-in Event as to which the application of Section 3.1 has not been waived pursuant to the provisions of this Section 5.1, elect to redeem all 

  

 - 24 - 

	 	 
but not less than all of the then outstanding Rights at a redemption price of $0.000001 per Right appropriately adjusted in a manner analogous to the
applicable adjustment provided for in Section 2.3 in the event that an event of the type analogous to any of the events described in Section 2.3 shall have occurred (such redemption price being herein referred to as the “Redemption
Price”). 

  

	 	(b)	The Board of Directors acting in good faith may, with the prior consent of the holders of Common Shares given in accordance with subsection 5.1(f), determine, at any time prior to
the occurrence of a Flip-in Event as to which the application of Section 3.1 has not been waived pursuant to this Section 5.1, if such Flip-in Event would occur by reason of an acquisition of Common Shares otherwise than pursuant to a
Take-over Bid made by means of a Take-over Bid circular to all holders of record of Common Shares and otherwise than in the circumstances set forth in subsection 5.1(d), to waive the application of Section 3.1 to such Flip-in Event. In the
event that the Board of Directors proposes such a waiver, the Board of Directors shall extend the Separation Time to a date subsequent to and not more than ten Business Days following the meeting of shareholders called to approve such waiver.

  

	 	(c)	The Board of Directors acting in good faith may, prior to the occurrence of a Flip-in Event as to which the application of Section 3.1 has not been waived under this clause,
determine, upon prior written notice to the Rights Agent, to waive the application of Section 3.1 to that Flip-in Event provided that the Flip-in Event would occur by reason of a Take-over Bid made by means of a Take-over Bid circular sent to
all holders of record of Common Shares; further provided that if the Board waives the application of Section 3.1 to such a Flip-in Event, the Board of Directors shall be deemed to have waived the application of Section 3.1 to any other
Flip-in Event occurring by reason of any Take-over Bid made by means of a Take-over Bid circular to all holders of record of Common Shares which is made prior to the expiry of any Take-over Bid in respect of which a waiver is, or is deemed to have
been, granted under this subsection 5.1(c). 

  

	 	(d)	The Board of Directors acting in good faith may, in respect of any Flip-in Event waive the application of Section 3.1 to that Flip-in Event, provided that both of the following
conditions are satisfied: 

  

	 	(i)	the Board of Directors has determined that the Acquiring Person became an Acquiring Person by inadvertence and without any intent or knowledge that it would become an Acquiring
Person; and 

  

	 	(ii)	such Acquiring Person has reduced its Beneficial Ownership of Common Shares such that at the time of waiver pursuant to this subsection 5.1(d) it is no longer an Acquiring Person.

  

	 	(e)	Where, pursuant to a Permitted Bid, a Competing Permitted Bid or a Take-over Bid in respect of which the Board of Directors has waived, or is deemed to have waived, pursuant to
subsection 5.1(c), the application of Section 3.1, a Person acquires outstanding Common Shares, then the Board of Directors shall immediately upon the consummation of such acquisition without further formality and without any approval under
subsections 5.4(b) or (c) be deemed to have elected to redeem the Rights at the Redemption Price. 

  

	 	(f)	If a redemption of Rights pursuant to subsection 5.1(a) or a waiver of a Flip-in Event pursuant to subsection 5.1(b) is proposed at any time prior to the Separation Time, such
redemption or waiver shall be submitted for approval to the holders of Common Shares. Such approval shall be deemed to have been given if the redemption or waiver is approved by the affirmative vote of a majority of the votes cast by Independent
Shareholders represented in person or by proxy at a meeting of such holders duly held in accordance with applicable laws and the Corporation’s by-laws. 

  

	 	(g)	 If a redemption of Rights pursuant to subsection 5.1(a) is proposed at any time after the Separation Time, such redemption shall be submitted for approval to the
holders of Rights. Such approval shall be deemed to have been given if the redemption is approved by holders of Rights by a 

  

 - 25 - 

	 	 
majority of the votes cast by the holders of Rights represented in person or by proxy at and entitled to vote at a meeting of such holders. For the purposes
hereof, each outstanding Right (other than Rights which are Beneficially Owned by any Person referred to in clauses (i) to (v) inclusive of the definition of Independent Shareholders) shall be entitled to one vote, and the procedures for
the calling, holding and conduct of the meeting shall be those, as nearly as may be, which are provided in the Corporation’s by-laws and the Business Corporations Act with respect to meetings of shareholders of the Corporation.

  

	 	(h)	Where a Take-over Bid that is not a Permitted Bid is withdrawn or otherwise terminated after the Separation Time has occurred and prior to the occurrence of a Flip-in Event, the
Board may elect to redeem all the outstanding Rights at the Redemption Price. Upon such redemption, all of the provisions of this Agreement shall continue to apply as if the Separation Time had not occurred and it shall be deemed not to have
occurred and the Corporation shall be deemed to have issued replacement Rights to the holders of its then outstanding Common Shares, subject to and in accordance with the provisions of this Agreement. 

  

	 	(i)	If the Board of Directors elects or is deemed to have elected to redeem the Rights, and, in circumstances where subsection 5.1(a) is applicable, such redemption is approved by the
holders of Common Shares or the holders of Rights in accordance with subsection 5.1(f) or (g), as the case may be, the right to exercise the Rights will thereupon, without further action and without notice, terminate and the only right thereafter of
the holders of Rights will be to receive the Redemption Price. 

  

	 	(j)	Within 10 Business Days of the Board of Directors electing or having been deemed to have elected to redeem the Rights or, if subsection 5.1(a) is applicable within 10 Business Days
after the holders of Common Shares or the holders of Rights have approved a redemption of Rights in accordance with subsection 5.1(f) or 5.1(g), as the case may be, the Corporation shall give notice of redemption to the holders of the then
outstanding Rights by mailing such notice to each such holder at its last address as it appears upon the register of the Rights Agent or, prior to the Separation Time, on the register of the transfer agent for the Common Shares. Any notice which is
mailed in the manner herein provided will be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. The Corporation may not redeem,
acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 5.1 or in connection with the purchase of Common Shares prior to the Separation Time. 

  

	 	(k)	The Corporation shall give prompt written notice to the Rights Agent of any waiver of the application of Section 3.1 made by the Board of Directors under this Section 5.1.

  

	5.2	Expiration 

 No Person shall have any rights
pursuant to this Agreement or in respect of any Right after the Expiration Time, except the Rights Agent as specified in subsection 4.1(a) of this Agreement. 
  

	5.3	Issuance of New Rights Certificates 

 Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Corporation may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by the Board of Directors to
reflect any adjustment or change in the number of or kind or class of shares purchasable upon exercise of Rights made in accordance with the provisions of this Agreement. 
  

	5.4	Supplements and Amendments 

  

	 	(a)	 The Corporation may make amendments to this Agreement to correct any clerical or typographical error or which are required to maintain the validity of this
Agreement as a result of any change in 

  

 - 26 - 

	 	 
any applicable legislation, rules or regulations thereunder. The Corporation may, prior to the date of the shareholders’ meeting referred to in
Section 5.18, supplement, amend, vary, rescind or delete any of the provisions of this Agreement without the approval of any holders of Rights or Common Shares (provided that such action would not materially adversely affect the interests of
the holders of Rights generally) where the Board of Directors acting in good faith deems such action necessary or desirable. Notwithstanding anything in this Section 5.4 to the contrary, no such supplement or amendment shall be made to the
provisions of Article 4 except with the written concurrence of the Rights Agent to such supplement or amendment. 

  

	 	(b)	Subject to subsection 5.4(a), the Corporation may, with the prior consent of the holders of Common Shares, obtained as set forth below, at any time prior to the Separation Time,
supplement, amend, vary, rescind or delete any of the provisions of this Agreement and the Rights (whether or not such action would materially adversely affect the interests of the holders of Rights generally). Such consent shall be deemed to have
been given if the action requiring such approval is authorized by the affirmative vote of a majority of the votes cast by Independent Shareholders present or represented at and entitled to be voted at a meeting of the holders of Common Shares duly
called and held in compliance with applicable laws and the articles and by-laws of the Corporation. 

  

	 	(c)	The Corporation may, with the prior consent of the holders of Rights, at any time on or after the Separation Time, supplement, amend, vary, rescind or delete any of the provisions
of this Agreement and the Rights (whether or not such action would materially adversely affect the interests of the holders of Rights generally), provided that no such amendment, variation or deletion shall be made to the provisions of Article 4
except with the written concurrence of the Rights Agent thereto. Such consent shall be deemed to have been given if such amendment, variation or deletion is authorized by the affirmative votes of the holders of Rights present or represented at and
entitled to be voted at a meeting of the holders held in accordance with subsection 5.4(d) and representing 50% plus one of the votes cast in respect thereof. 

  

	 	(d)	Any approval of the holders of Rights shall be deemed to have been given if the action requiring such approval is authorized by the affirmative votes of the holders of Rights
present or represented at and entitled to be voted at a meeting of the holders of Rights and representing a majority of the votes cast in respect thereof. For the purposes hereof, each outstanding Right (other than Rights which are void pursuant to
the provisions hereof) shall be entitled to one vote, and the procedures for the calling, holding and conduct of the meeting shall be those, as nearly as may be, which are provided in the Corporation’s by-laws and the Business Corporations
Act with respect to meetings of shareholders of the Corporation. 

  

	 	(e)	Any amendment made by the Corporation to this Agreement pursuant to subsection 5.4(a) other than any amendment to correct any clerical or typographical error shall:

  

	 	(i)	if made before the Separation Time, be submitted to the shareholders of the Corporation at the next meeting of shareholders and the shareholders may, by the majority referred to in
subsection 5.4(b), confirm or reject such amendment; and 

  

	 	(ii)	if made after the Separation Time, be submitted to the holders of Rights at a meeting to be called for on a date not later than immediately following the next meeting of
shareholders of the Corporation and the holders of Rights may, by resolution passed by the majority referred to in subsection 5.4(d), confirm or reject such amendment. 

 Any such amendment shall be effective from the date of the resolution of the Board of Directors adopting such amendment, until it is confirmed or rejected
or until it ceases to be effective (as described in the next sentence) and, where such amendment is confirmed, it continues in effect in the form so confirmed. If such amendment is rejected by the shareholders or the holders of Rights or is not
submitted to the shareholders or holders of Rights as required, then such amendment shall cease to be effective from and after the termination of the meeting at which it was rejected or to 

  

 - 27 - 

	 	 
which it should have been but was not submitted or from and after the date of the meeting of holders of Rights that should have been but was not held, and no
subsequent resolution of the Board of Directors to amend this Agreement to substantially the same effect shall be effective until confirmed by the shareholders or holders of Rights as the case may be. 

  

	 	(f)	The Corporation shall be required to provide the Rights Agent with notice in writing of any such amendment, recission or variation to this Agreement as referred to in this
Section 5.4 within five days of effecting such amendment, recission or variation. 

  

	 	(g)	Any supplement or amendment to this Agreement pursuant to subsection 5.4(b) through 5.4(e) shall be subject to the receipt of any requisite approval or consent from any governmental
or regulatory authority having jurisdiction over the Corporation, including without limitation any requisite approval of stock exchanges on which the Common Shares are listed. 

  

	5.5	Fractional Rights and Fractional Shares 

  

	 	(a)	The Corporation shall not be required to issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. After the Separation Time there shall be
paid to the registered holders of the Rights Certificates with regard to which fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the Market Price of a whole Right in lieu of such fractional Rights as of
the date such fractional Rights would otherwise be issuable. The Rights Agent shall have no obligation to make any payments in lieu of fractional Rights unless the Corporation shall have provided the Rights Agent with the necessary funds to pay in
full all amounts payable in accordance with subsection 2.2(e). 

  

	 	(b)	The Corporation shall not be required to issue fractional Common Shares upon exercise of the Rights or to distribute certificates which evidence fractional Common Shares. In lieu of
issuing fractional Common Shares, the Corporation shall pay to the registered holder of Rights Certificates at the time such Rights are exercised as herein provided, an amount in cash equal to the same fraction of the Market Price of one Common
Share at the date of such exercise. The Rights Agent shall have no obligation to make any payments in lieu of fractional Common Shares unless the Corporation shall have provided the Rights Agent with the necessary funds to pay in full all amounts
payable in accordance with subsection 2.2(e). 

  

	5.6	Rights of Action 

 Subject to the terms of this
Agreement, rights of action in respect of this Agreement, other than rights of action vested solely in the Rights Agent, are vested in the respective holders of the Rights; and any holder of any Rights, without the consent of the Rights Agent or of
the holder of any other Rights, may, on such holder’s own behalf and for such holder’s own benefit and the benefit of other holders of Rights, enforce, and may institute and maintain any suit, action or proceeding against the Corporation
to enforce, or otherwise act in respect of, such holder’s right to exercise such holder’s Rights, or Rights to which he is entitled, in the manner provided in this Agreement and in such holder’s Rights Certificate. Without limiting
the foregoing or any remedies available to the holders of Rights it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the
obligations under, and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this Agreement. 
  

	5.7	Holder of Rights Not Deemed a Shareholder 

 No
holder, as such, of any Rights shall be entitled to vote, receive dividends or be deemed for any purpose the holder of Common Shares or any other securities which may at any time be issuable on the exercise of Rights, nor shall anything contained
herein or in any Rights Certificate be construed to confer upon the holder of any Rights, as such, any of the rights of a shareholder of the Corporation or any right to vote for the election of directors or upon any matter submitted to shareholders
at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in Section 5.8 hereof), or to receive dividends or subscription rights
or otherwise, until such Rights, or Rights to which such holder is entitled, shall have been exercised in accordance with the provisions hereof. 
  

 - 28 - 

	5.8	Notice of Proposed Actions 

 In case the Corporation
shall propose after the Separation Time and prior to the Expiration Time: 
  

	 	(a)	to effect or permit (in cases where the Corporation’s permission is required) any Flip-in Event; or 

  

	 	(b)	to effect the liquidation, dissolution or winding up of the Corporation or the sale of all or substantially all of the Corporation’s assets, 

 then, in each such case, the Corporation shall give to each holder of a Right, in accordance with Section 5.9 hereof, a notice of such proposed action, which shall
specify the date on which such Flip-in Event, liquidation, dissolution, or winding up is to take place, and such notice shall be so given at least 10 Business Days prior to the date of taking of such proposed action by the Corporation. 

 

	5.9	Notices 

 Notices or demands to be given or made in
connection with this Agreement by the Rights Agent or by the holder of any Rights to or on the Corporation shall be sufficiently given or made if delivered or sent by mail, postage prepaid or by fax (with, in the case of fax, an original copy of the
notice or demand sent by first class mail, postage prepaid, to the Corporation following the giving of the notice or demand by fax), addressed (until another address is filed in writing with the Rights Agent) as follows: 
  

			
	Open Text Corporation
	185 Columbia Street West
	Waterloo, Ontario
	N2L 5Z5	  	
	Attention:	  	Chief Executive Officer
	Fax:	  	519-888-6763

 Notices or demands to be given or made in connection with this Agreement by the Corporation or by the holder of
any Rights to or on the Rights Agent shall be sufficiently given or made if delivered or sent by mail, postage prepaid, or by fax (with, in the case of fax, an original copy of the notice or demand sent by first class mail, postage prepaid, to the
Rights Agent following the giving of the notice or demand by fax), addressed (until another address is filed in writing with the Corporation) as follows: 
  

			
	Computershare Investor Services
	100 University Avenue, 9th Floor
	Toronto, Ontario
	M5J 2Y1	  	
	Attention:	  	General Manager, Client Services
	Fax:	  	416-981-9800

 Notices or demands to be given or made in connection with this Agreement by the Corporation or the Rights Agent to
or on the holder of any Rights shall be sufficiently given or made if delivered or sent by first class mail, postage prepaid, or by fax (with, in the case of fax, an original copy of the notice or demand sent by first class mail, postage prepaid, to
such holder following the giving of the notice or demand by fax), addressed to such holder at the address of such holder as it appears upon the register of the Rights Agent or, prior to the Separation Time, on the register of the Corporation for the
Common Shares. 
 Any notice given or made in accordance with this Section 5.9 shall be deemed to have been given and to have been received on the day
of delivery, if so delivered, on the third Business Day (excluding each day during which there exists any general interruption of postal service due to strike, lockout or other cause) following the mailing thereof, 

  

 - 29 - 

 
if so mailed, and on the day of faxing (provided such sending is during the normal business hours of the addressee on a Business Day and if not, on the first
Business Day thereafter). Each of the Corporation and the Rights Agent may from time to time change its address for notice by notice to the other given in the manner aforesaid. 
 If mail service is or is threatened to be interrupted at a time when the Corporation or the Rights Agent wishes to give a notice or demand hereunder to or on the holders of the Rights, the Corporation or the Rights
Agent may, notwithstanding the foregoing provisions of this Section 5.9, give such notice by means, of publication once in each of two successive weeks in the business section of The Globe and Mail and, so long as the Corporation has a transfer
agent in the United States, in a daily publication in the United States designated by the Corporation, or in such other publication or publications as may be designated by the Corporation and notice so published shall be deemed to have been given on
the date on which the first publication of such notice in any such publication has taken place. 
  

	5.10	Costs of Enforcement 

 The Corporation agrees that
if the Corporation fails to fulfil any of its obligations pursuant to this Agreement, then the Corporation will reimburse the holder of any Rights for the costs and expenses (including legal fees) incurred by such holder in actions to enforce his
rights pursuant to any Rights or this Agreement. 
  

	5.11	Successors 

 All the covenants and provisions of
this Agreement by or for the benefit of the Corporation or the Rights Agent shall bind and enure to the benefit of their respective successors and assigns hereunder. 
  

	5.12	Benefits of this Agreement 

 Nothing in this
Agreement shall be construed to give to any Person other than the Corporation, the Rights Agent and the holders of the Rights any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of the Corporation, the Rights Agent and the holders of the Rights. 
  

	5.13	Descriptive Headings 

 Descriptive headings appear
herein for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 
  

	5.14	Governing Law 

 This Agreement and each Right issued
hereunder shall be deemed to be a contract made under the laws of the Province of Ontario and for all purposes shall be governed by and construed in accordance with the laws of such Province applicable to contracts to be made and performed entirely
within such Province. 
  

	5.15	Language 

 Les parties aux présentes ont
exigé que la présente convention ainsi que tous les documents et avis qui s’y rattachent et/ou qui en découleront soient rédigés en langue anglaise. The parties hereto have required that this Agreement and all
documents and notices related thereto and/or resulting therefrom be drawn up in the English language. 
  

	5.16	Counterparts 

 This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
  

 - 30 - 

	5.17	Severability 

 If any term or provision hereof or
the application thereof to any circumstance is, in any jurisdiction and to any extent, invalid or unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable the remaining terms and provisions hereof or the application of such term or provision to circumstances other than those as to which it is held invalid or unenforceable. 
  

	5.18	Effective Date 

 Notwithstanding its amendment and
restatement as of the date hereof, this Agreement (subject to receipt of the approval of the Independent Shareholders as set forth below) is effective from the Effective Date and replaces and supersedes the Original Plan. If this Agreement is not
approved by resolution passed by a majority of the votes cast by Independent Shareholders who vote in respect of reconfirmation of the Original Plan as amended and restated herein at a meeting of shareholders to be held not later than the date on
which the 2007 annual meeting of shareholders of the Corporation terminates, then the Original Plan and this Agreement and all outstanding Rights shall terminate and be void and of no further force and effect on and from that date which is the
earlier of (a) the date of termination of the meeting called to consider the confirmation of the Original Plan as amended and restated herein under this Section 5.18, and (b) the date of termination of the 2007 annual meeting of
shareholders of the Corporation. 
  

	5.19	Shareholder Review 

 At or prior to the annual
meeting of the shareholders of the Corporation in 2010, provided that a Flip-in Event has not occurred prior to such time, the Board of Directors shall submit a resolution ratifying the continued existence of this Agreement to the Independent
Shareholders for their consideration and, if thought advisable, approval. Unless the majority of the votes cast by Independent Shareholders who vote in respect of such resolution are voted in favour of the continued existence of this Agreement, the
Board of Directors shall, immediately upon the confirmation by the Chairman of such shareholders’ meeting of the results of the votes on such resolution and without further formality, be deemed to elect to redeem the Rights at the Redemption
Price. 
  

	5.20	Regulatory Approvals 

 Any obligation of the
Corporation or action or event contemplated by this Agreement shall be subject to the receipt of any requisite approval or consent from any governmental or regulatory authority. Without limiting the generality of the foregoing, any issuance or
delivery of debt or equity securities (other than non-convertible debt securities) of the Corporation upon the exercise of Rights and any amendment or supplement to this Agreement shall be subject to the prior consent of the Toronto Stock Exchange
or any other exchange upon which the Common Shares of the Corporation may be listed. 
  

	5.21	Declaration as to Non-Canadian and Non-U.S. Holders 

 If in the opinion of the Board of Directors (who may rely upon the advice of counsel), any action or event contemplated by this Agreement would require compliance with the securities laws or comparable legislation of a jurisdiction outside
Canada and the United States of America, its territories and possessions, the Board of Directors acting in good faith may take such actions as it may deem appropriate to ensure that such compliance is not required, including without limitation
establishing procedures for the issuance to a Canadian resident Fiduciary of Rights or securities issuable on exercise of Rights, the holding thereof in trust for the Persons entitled thereto (but reserving to the Fiduciary or to the Fiduciary and
the Corporation, as the Corporation may determine, absolute discretion with respect thereto) and the sale thereof and remittance of the proceeds of such sale, if any, to the Persons entitled thereto. In no event shall the Corporation or the Rights
Agent be required to issue or deliver Rights or securities issuable on exercise of Rights to Persons who are citizens, residents or nationals of any jurisdiction other than Canada and a province or territory thereof and the United States of America
and any state thereof in which such issue or delivery would be unlawful without registration of the relevant Persons or securities for such purposes. 
  

 - 31 - 

	5.22	Determinations and Actions by the Board of Directors 

 All actions and determinations (including all omissions with respect to the foregoing) which are done or made by the Board of Directors pursuant to this Agreement, in good faith, shall not subject any member of the Board of Directors to any
liability whatsoever to the holders of the Rights. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
as of the date first above written. 
  

			
	OPEN TEXT CORPORATION
		
	PER:	 	 “John Trent”

	Name:	 	John Trent
	Title:	 	SVP, General Counsel and Assistant Secretary
		
	PER:	 	 “James D. Clarke”

	Name:	 	James D. Clarke
	Title:	 	Deputy General Counsel and Assistant Secretary
	
	COMPUTERSHARE INVESTOR SERVICES
		
	PER:	 	 “Grace Rebelo”

	Name:	 	Grace Rebelo
	Title:	 	Relationship Manager, Client Services
		
	PER:	 	 “Sohail Tahir”

	Name:	 	Sohail Tahir
	Title:	 	Relationship Manager, Client Services

  

 - 32 - 

 EXHIBIT A 
 FORM OF RIGHTS CERTIFICATE 
  

			
	Certificate No. __________	  	__________  Rights
		  	

 THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE CORPORATION, ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. IN CERTAIN CIRCUMSTANCES (SPECIFIED IN SUBSECTION 3.1(b) OF THE RIGHTS AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR TRANSFEREE OF AN ACQUIRING PERSON OR ITS AFFILIATES OR ASSOCIATES (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT) OR ANY PERSON ACTING JOINTLY OR IN CONCERT WITH ANY OF THEM MAY BECOME VOID . 
 Rights Certificate 
 This certifies that
                                        is the
registered holder of the number of Rights set forth above, each of which entitles the registered holder thereof, subject to the terms, provisions and conditions of the Amended and Restated Shareholder Rights Plan Agreement dated as of
December 6, 2007 (amending and restating the Amended and Restated Shareholder Rights Plan Agreement dated as of November 1, 2004), as such may from time to time be amended, restated, varied or replaced, (the “Rights
Agreement”) between Open Text Corporation, a corporation organized under the laws of Ontario (the “Corporation”), and Computershare Investor Services, a trust company incorporated under the laws of Canada, as Rights Agent
(the “Rights Agent”), which term shall include any successor Rights Agent under the Rights Agreement, to purchase from the Corporation at any time after the Separation Time (as such term is defined in the Rights Agreement) and prior
to the ExpirationTime (as such term is defined in the Rights Agreement), one fully paid common share of the Corporation (a “Common Share”) at the Exercise Price referred to below, upon presentation and surrender of this Rights
Certificate together with the Form of Election to Exercise duly executed to the Rights Agent at its principal office in the City of Toronto or in such other cities as may be designated by the Corporation from time to time. Until adjustment thereof
in certain events as provided in the Rights Agreement, the Exercise Price shall be: (i) until the Separation Time, an amount equal to three times the Market Price (as such term is defined in the Rights Agreement), from time to time, per Common
Share; and (ii) from and after the Separation Time, an amount equal to three times the Market Price, as at the Separation Time, per Common Share. 
 In certain circumstances described in the Rights Agreement, the number of Common Shares which each Right entitles the registered holder thereof to purchase shall be adjusted as provided in the Rights Agreement.

 This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement which terms, provisions and
conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities thereunder of the
Rights Agent, the Corporation and the holders of the Rights Certificates. Copies of the Rights Agreement are on file at the registered office of the Corporation and are available upon written request. 
 This Rights Certificate, with or without other Rights Certificates, upon surrender at any of the offices of the Rights Agent designated for such purpose,
may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing an aggregate number of Rights equal to the aggregate number of Rights evidenced by the Rights Certificate or Rights Certificates surrendered. If
this Rights Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 
 Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Corporation at a redemption price of
$0.000001 per Right, subject to adjustment in certain events, under certain circumstances at its option. 
 No fractional Common Shares will
be issued upon the exercise of any Rights evidenced hereby, but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 

 No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of Common Shares or of any other securities which may at any time be issuable upon the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof,
as such, any of the Rights of a shareholder of the Corporation or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting shareholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by this Rights Certificate shall have been
exercised as provided in the Rights Agreement. 
 This Rights Certificate shall not be valid or obligatory for any purpose until it shall
have been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the proper officers of the Corporation and its corporate
seal. 
  

			
	Date:	 	  

	
	OPEN TEXT CORPORATION
		
	By:	 	  

		 	Authorized Officer
	
	Countersigned:
	
	COMPUTERSHARE INVESTOR SERVICES
		
	By:	 	  

		 	Authorized Signature

  

 - 2 - 

 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such holder desires to transfer the Rights represented by this Rights Certificate.) 
  

			
	 FOR VALUE RECEIVED
	  	  

			
		
	hereby sells, assigns and transfers to	  	  

		  	(Please print name and address of transferee)

 the Rights represented by this Rights Certificate, together with all right, title and interest therein, and hereby
irrevocably constitutes and appoints
                                        as
attorney, to transfer the within Rights on the books of the Corporation, with full power of substitution. 
 Dated: 
  

					
	Signature Guaranteed:	 		  	  

		 		  	Signature
			
		 		  	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever.)

 Signature must be guaranteed by a Canadian Schedule 1 chartered bank, a major Canadian trust company, a member of
a recognized stock exchange or a member of a recognized Medallion Program (STAMP, MSP or SEMP). 
  
  
  
 (To be completed if true) 
 The undersigned hereby represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not, and, to the
knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or by any Person acting jointly or in concert with any of the foregoing (all capitalized terms are used as defined in the
Rights Agreement). 
  

									
	Dated:	 	  
	 		  	Signature:	  	  

				
		 		 		  	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change
whatsoever.)

 NOTICE 
 In the event the certification set forth above in the Form of Election to Exercise is not completed upon exercise of the Right(s) evidenced hereby or in the event that the certification set forth above in the Form of
Assignment is not completed upon the assignment of the Right(s) evidenced hereby, the Corporation will deem the Beneficial Owner of the Right(s) evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof or a
Person acting jointly or in concert with any of them (each as defined in the Rights Agreement) and, in the case of an assignment, will affix a legend to that effect on any Rights Certificates issued in exchange for this Rights Certificate.

 (To be attached to each Rights Certificate) 
 FORM OF ELECTION TO EXERCISE 
 TO: OPEN TEXT CORPORATION 
 The undersigned hereby irrevocably elects to exercise
                                        whole
Rights represented by the attached Rights Certificate to purchase the Common Shares (or other securities or property) issuable upon the exercise of such Rights and requests that certificates for such shares (or other, securities or title to such
property) be issued in the name of: 
  

					
		 	  
	 	
		 	(Name)	 	
			
		 	  
	 	
		 	(Street)	 	
			
		 	  
	 	
		 	(City and State or Province)	 	
			
		 	  
	 	
		 	(Country, Postal Code or Zip Code)	 	
			
		 	  
	 	
		 	SOCIAL INSURANCE, SOCIAL SECURITY OR OTHER TAXPAYER IDENTIFICATION NUMBER	 	

 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for
the balance of such Rights shall be registered in the name of and delivered to: 
  

					
		 	  
	 	
		 	(Name)	 	
			
		 	  
	 	
		 	(Street)	 	
			
		 	  
	 	
		 	(City and State or Province)	 	
			
		 	  
	 	
		 	(Country, Postal Code or Zip Code)	 	
			
		 	  
	 	
		 	SOCIAL INSURANCE, SOCIAL SECURITY OR OTHER TAXPAYER IDENTIFICATION NUMBER	 	

 Dated: 
  

			
	Signature Guaranteed:	  	  

		  	Signature
		
		  	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever.)

 Signature must be guaranteed by a Canadian Schedule 1 chartered bank, a major Canadian trust company, a member of
a recognized stock exchange or a member of a recognized Medallion Program (STAMP, MSP or SEMP). 
  
  
  
 (To be completed if true) 
 The undersigned hereby represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not, and, to the
knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or by any Person acting jointly or in concert with any of the foregoing (all capitalized terms are used as defined in the
Rights Agreement). 
  

							
	 Dated:
	 	  
	  	Signature:	  	  

 NOTICE 
 In the event the certification set forth above in the Form of Election to Exercise is not completed upon exercise of the Right(s) evidenced hereby or in the event that the certification set forth above in the Form of Assignment is not
completed upon the assignment of the Right(s) evidenced hereby, the Corporation will deem the Beneficial Owner of the Right(s) evidenced by this Rights Certificate to be an Acquiring Person, an Affiliate or Associate thereof or a Person acting
jointly or in concert with any of them (each as defined in the Rights Agreement) and, in the case of an assignment, will affix a legend to that effect on any Rights Certificates issued in exchange for this Rights Certificate. 
  

 - 2 -2009 Annual Incentive Plan

 Exhibit 10.1 
 SEARS HOLDINGS CORPORATION 
 2009 ANNUAL INCENTIVE PLAN 
 SECTION 1 
 GENERAL

 1.1. Purpose. The Sears Holdings Corporation 2009 Annual Incentive Plan (the “AIP”) is a performance-based
incentive program. The purpose of the AIP is to reward eligible employees of Sears Holdings Corporation (the “Company”) and its participating subsidiaries and affiliates (collectively referred to as “Employers”), for sustained
Company fiscal performance. The AIP is established under, and constitutes a part of, the Sears Holdings Corporation Umbrella Incentive Program (the “UIP”), which UIP was previously approved by shareholders. Both (a) Awards (as defined
in Section 9) structured to satisfy the requirements for “performance-based compensation” outlined in regulations issued under Section 162(m) of the Internal Revenue Code (“Code”), and (b) Awards not so structured,
may be issued hereunder. The effective date of the AIP is April 28, 2009, which is the date the Compensation Committee (as defined in Section 9) adopted the AIP (the “Effective Date”). 
 1.2. Operation, Administration and Definitions. The operation and administration of the AIP, including the Awards made under the AIP, shall
be subject to the provisions of Section 7. Capitalized terms in the AIP shall be defined in the provision in which a term first appears or as set forth in Section 9. 
 1.3. Participating Employers. Each Employer whose eligible employee’s are covered by the AIP may be referred to herein as a
“Participating Employer”. Participating Employers are listed on Appendix A. 
 SECTION 2 
 PARTICIPATION 
 2.1.
Eligible Employee. Except as provided herein, the term “Eligible Employee” means all: (a) salaried employees and (b) “corporate hourly employees”, of any Employer, including the Company, which is a
Participating Employer. “Corporate hourly employees” refer to hourly employees employed at a Support Center (as defined in Section 9). Subject to the terms and conditions of the AIP, the Senior Corporate Compensation Executive (as
defined in Section 9) shall determine Eligible Employee status, except as determined by the Compensation Committee, in accordance with subsection 7.1. Eligible Employees are “Participants” in the AIP. 
 2.2. New Hires; Changes in Status; Promotions and Demotions. 
 (a) New Hires. The Senior Corporate Compensation Executive, the Compensation Committee, or an authorized representative of
either, as applicable, shall determine whether and when an employee who is a new hire is an Eligible Employee. The terms and conditions of any Award for such an individual shall be (i) based on the Target Annual Incentive for the new
hire’s incentive-eligible position and (ii) subject to a fraction, the numerator of which is the number of full days on active payroll (except as otherwise provided in Section 6.2) during the Performance Period (as defined in
subsection 3.1) that the Eligible Employee was a Participant in the AIP and the denominator of which is the number of full days in the Performance Period. 

 2009 AIP 
  

 (b) Changes in Status. The Senior Corporate Compensation Executive or
the Compensation Committee, as applicable, shall determine whether and when an employee who has a change in status becomes or ceases to be an Eligible Employee during the Performance Period. The terms and conditions of any Award for such an
individual shall be (i) based on the Target Annual Incentive for the incentive-eligible position and (ii) subject to a fraction, the numerator of which is the number of full days on active payroll (except as otherwise provided in
Section 6.2) during the Performance Period that the Eligible Employee was a Participant in the AIP and the denominator of which is the number of full days in the Performance Period. 
 (c) Promotion. If a Participant is promoted, the Award for such an individual shall be based on a pro-ration, whereby the Target
Annual Incentive for the new position will apply to the remainder of the Performance Period and the Target Annual Incentive for the immediately preceding incentive-eligible position will apply to the portion of the Performance Period immediately
preceding the effective date of the promotion, subject to subsection 3.2. Notwithstanding the foregoing, in no event will positive discretion be applied to any Award that has been designated as intended to meet the requirements of Code
Section 162(m) (and the regulations issued thereunder) with respect to the Performance Period or as of the payment date (as defined under subsection 5.1). 
 (d) Demotions. If a Participant is demoted, the Award for such an individual shall be based on a pro-ration, whereby the Target
Annual Incentive for the new incentive-eligible position (if any) will apply only to the remainder of the Performance Period and the Target Annual Incentive for the immediately preceding incentive-eligible position will apply only to the portion of
the Performance Period immediately preceding the effective date of the demotion, subject to subsection 3.2. 
 SECTION 3 
 ANNUAL INCENTIVE AWARDS 
 3.1.
Annual Incentive Awards. Except as provided herein, the Senior Corporate Compensation Executive shall determine, in its sole discretion, the “Target Annual Incentive” (as defined herein) for each Participant. Notwithstanding
the forgoing, the Compensation Committee shall approve the Target Annual Incentives and the Awards for Executives (as defined in Section 9) under its purview. 
 (a) A “Target Annual Incentive” shall refer to the percentage of a Participant’s rate of base pay during the Performance
Period, which may be reflected as a percentage of base pay or flat dollar amount. 
 (b) The “Target Incentive
Award” shall consist of a commitment by the Company to distribute, at the time specified in, and in accordance with the applicable provisions of, Section 5 below, a dollar amount based on a Participant’s Target Annual Incentive and
based on actual performance of the Company and the Participant, as compared to established performance goals described in Section 4 below. The Target Incentive Award shall be subject to pro-ration (if applicable) and certification of the
calculation of the final Award amount by the Senior Corporate Compensation Executive or the Compensation Committee, as applicable. 
  

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 (c) The “Annual Incentive Award” shall refer to the final annual portion of
a Participant’s Target Incentive Award payable on the payment date (as defined in subsection 5.1 below). 
 (d) Any
Annual Incentive Award shall be satisfied by a distribution in accordance with Section 5 and subject to Sections 6 and 7. 
 3.2.
Adjustments based on Status Changes during Performance Period. Notwithstanding anything in the AIP to the contrary, with respect to Awards that are not designated as intended to meet the requirements of “performance-based
compensation” under Code Section 162(m) (and the regulations issued thereunder) and prior to the settlement of any Award, if the Target Annual Incentive for a new incentive-eligible position (including if due to promotion or demotion) is
lower or higher than the Target Annual Incentive for a Participant’s immediately prior position, the Participant’s Target Incentive Award may be adjusted by the Senior Corporate Compensation Executive or the Compensation Committee, as
applicable, to ensure that the overall target cash compensation (i.e., the sum of base pay and Target Annual Incentive) for the new position is comparable to the overall target cash compensation for the immediately prior position. 
 3.3. Performance Period. The “Performance Period” refers to the applicable Fiscal Year (as defined in Section 9). The amount
of an Award, if any, shall be determined following completion of the Performance Period in accordance with this Section 3 and Section 4. 
 3.4. Pro-ration. 
 (a) The Annual Incentive Award of a Participant who experiences a status change or
position change shall be pro-rated based on the number of days worked on active payroll in each incentive-eligible position during the Performance Period. 
 (b) The Annual Incentive Award of a Participant who experiences a demotion or promotion shall be pro-rated based on the Target Annual Incentives in effect during the Performance Period, subject to Sections 2.2 and 3.2
above. 
 (c) The Annual Incentive Award of a Participant who experiences a disability or death, as described in subsections
6.1(b) and (c) respectively, shall be pro-rated based upon a fraction, the numerator of which is the number of days worked on active payroll in an incentive-eligible position during the Performance Period and the denominator of which is the
number of days in the Performance Period. 
 (d) The Annual Incentive Award of a Participant who experiences an unpaid leave
of absence during the Performance Period shall be pro-rated in accordance with subsection 6.2(a). 
 SECTION 4 
 GOALS AND PERFORMANCE 
 4.1.
Company Goals. The financial performance goals, which are approved by the Senior Corporate Compensation Executive or the Compensation Committee, as applicable, shall include the following levels of performance. 
  

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 (a) EBITDA 
 (i) EBITDA. EBITDA shall be the financial performance goal for Participants who are under a Support Business Unit (as defined in
Section 9) and whose position cannot be tied directly, as determined by the Senior Corporate Compensation Executive or the Compensation Committee (as applicable), to a Business Unit (as defined in Section 9). Subject to adjustment, if any,
in accordance with paragraph (iv) of this subsection 4.1(a), “EBITDA” refers to earnings before interest, taxes, depreciation and amortization for the Performance Period computed as operating income appearing on the Company’s
statement of operations for the applicable reporting period, other than Sears Canada (referred to as the “Domestic Company”), less depreciation and amortization and gains/(losses) on sales of assets. In addition, it is adjusted to exclude
significant litigation or claim judgments or settlements (defined as matters which are $1,000,000 or more) including the costs related thereto; the effect of purchase accounting and changes in accounting methods; gains, losses and costs associated
with acquisitions, divestitures and store closures; integration costs that are disclosed as merger related; and restructuring activities. If after the Effective Date, the Domestic Company acquires assets or an entity that has associated EBITDA
(measured using the same principles as those described in the preceding provisions of this paragraph (i)) in its last full fiscal year prior to the acquisition, of greater than or equal to $100,000,000, any EBITDA associated with such assets or
entity (after its acquisition) and during the Performance Period shall be disregarded in determining EBITDA under this paragraph (i). 
 (ii) Threshold EBITDA. “Threshold EBITDA” reflects the minimum EBITDA that must be achieved with respect to Awards based on EBITDA, which shall be equal to the greater of: (1) eighty
percent (80%) of Target EBITDA or (2) the actual EBITDA for the 2007 fiscal year capped at ninety percent (90%) of Target EBITDA. 
 (iii) Target EBITDA. Subject to adjustment, if any, in paragraph (iv) immediately below, “Target EBITDA” refers to the target level of EBITDA, for the Performance Period, established by the
Compensation Committee consistent with Company strategy, in accordance with paragraph (i) above of this subsection 4.1(a). 
 (iv) Adjustments to Target EBITDA. The EBITDA incentive target contemplates that the Domestic Company remains approximately the same size over the Performance Period. If, after the beginning of the Performance Period, Domestic
Company divests itself of assets or an entity that has associated EBITDA (measured using the same principles as those described in paragraph (i) above of this subsection 4.1(a)) in its last full fiscal year prior to the divestiture of greater
than or equal to $100,000,000, Target EBITDA for the Performance Period will be decreased by actual EBITDA of such assets or entity for the portion of such assets’ or entity’s last full fiscal year prior to the divestiture corresponding to
the portion of the Performance Period (in which the divestiture occurs) remaining after the divestiture occurs. 
  

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 (b) Business Operating Profit. 
 (i) Business Operating Profit. Business Operating Profit shall be the financial performance goal for Participants who are under a
Business Unit and Participants who are under a Support Business Unit but whose position can be tied directly, as determined by the Senior Corporate Compensation Executive or the Compensation Committee (as applicable), to a Business Unit.
“Business Operating Profit” refers to earnings before interest, taxes, and depreciation for each Business Unit as reported on the Company’s domestic internal operating statements, and generally consists of merchandise gross profit,
vendor allowances/subsidy included in margin, return-to-vendor mark-outs, allocated zero percent (0%) finance promotion costs, product quality costs, inventory shrink, margin on service revenue, and business-specific expenses such as marketing,
rent, logistics, IT projects, store and payroll and other intra-company expenses. 
 (ii) Threshold Business Operating
Profit. “Threshold Business Operating Profit” reflects the minimum applicable Business Operating Profit that must be achieved with respect to Awards based on Business Operating Profit, which shall be equal to the greater of:
(1) eighty percent (80%) of the applicable Target Business Operating Profit or (2) the actual applicable Business Operating Profit for the 2007 fiscal year capped at ninety percent (90%) of the applicable Target Business
Operating Profit. 
 (iii) Target Business Operating Profit. “Target Business Operating Profit” refers to the
target level of the applicable Business Operating Profit for the Performance Period, which varies by the Business Unit and as established and approved by the Compensation Committee, consistent with Company strategy, in accordance with paragraph
(i) above of this subsection 4.1(b). 
 (c) Variable Store Contribution Profit. 
 (i) Variable Store Contribution Profit. Variable Store Contribution Profit shall be the financial performance goal for Participants
who are under a Sears Full-Line Store (including the great indoors), Kmart Store or any other retail unit (referred to collectively herein as “Retail Units”), as determined by the Senior Corporate Compensation Executive. “Variable
Store Contribution Profit” refers to the “variable profit contribution” balance reported on the system-generated store Profit & Loss Statement and generally consists of store gross margin less expenses categorized as variable
at a store level, such as payroll, benefits, advertising, supplies and certain operating costs. This performance goal does not apply to any Executive. 
 (ii) Threshold Variable Store Contribution Profit. “Threshold Variable Store Contribution Profit” reflects the minimum applicable Variable Store Contribution Profit that must be achieved with respect
to Awards based on a Variable Store Contribution Profit, which shall be equal to eighty percent (80%) of the applicable Target Variable Store Contribution Profit for a Sears Full-Line Store (including the great indoors) or a Kmart Store but
shall vary for all other Retail Units. 
  

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 (iii) Target Variable Store Contribution Profit. “Target Variable Store
Contribution Profit” refers to the target level of the Variable Store Contribution Profit for the Performance Period, which varies by the Retail Units and as established and approved by the Senior Corporate Compensation Executive, consistent
with Company strategy, in accordance with paragraph (i) above of this subsection 4.1(c). 
 4.2. Company Performance.
Company performance is determined based on certain financial measurements including the following applicable measurements, which shall be applied to a Participant based upon his or her Assignment. 
 (a) EBITDA Performance. 
 (i) Threshold Payout. Subject to Participant performance and Sections 5 and 6, if Threshold EBITDA is met, sixty percent (60%) of a Target Incentive Award shall be paid to a Participant for whom EBITDA is
the performance measure. 
 (ii) Target Payout. Subject to Participant performance and Sections 5 and 6, if Target
EBITDA is met, one hundred percent (100%) of a Target Incentive Award shall be paid to a Participant for whom EBITDA is the performance measure. 
 (iii) If EBITDA performance falls between the Threshold EBITDA and the Target EBITDA payout levels, the adjustment to an Award shall be determined by straight-line interpolation. 
 (iv) Subject to Participant performance and Sections 5 and 6, with respect to a Participant for whom EBITDA is the performance measure, if
EBITDA performance exceeds the Target EBITDA, a percentage of the Target Incentive Award shall be paid equal to one hundred percent (100%) plus two percent (2%) for each one percent (1%) by which EBITDA performance exceeds Target
EBITDA. There is no maximum payout percentage. 
 (b) Business Operating Profit. 
 (i) Threshold Payout. Subject to Participant performance and Sections 5 and 6, if the applicable Threshold Business Operating
Profit is met, sixty percent (60%) of a Target Incentive Award shall be paid to a Participant for whom Business Operating Profit is the performance measure. 
 (ii) Target Payout. Subject to Participant performance and Sections 5 and 6, if the applicable Target Business Operating Profit is
met, one hundred percent (100%) of a Target Incentive Award shall be paid to a Participant for whom Business Operating Profit is the performance measure. 
  

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 (iii) If the applicable Business Operating Profit performance falls between the
applicable Threshold and Target payout levels, the adjustment to an Award shall be determined by straight-line interpolation. 
 (iv) Subject to Participant performance and Sections 5 and 6, with respect to a Participant for whom Business Operating Profit is the performance measure, if the applicable Business Operating Profit performance exceeds the Target Business
Operating Profit, a percentage of the Target Incentive Award shall be paid equal to one hundred percent (100%) plus two percent (2%) for each one percent (1%) by which the applicable Business Operating Profit performance exceeds the
applicable Target Business Operating Profit. There is no maximum payout percentage. 
 (c) Variable Store Contribution
Profit. 
 (i) Payout under Target. Subject to Participant performance and for Sears Full-Line Stores (including
the great indoors) and Kmart Stores their Location Balanced Scorecard performance, and Sections 5 and 6, with respect to a Participant for whom Variable Store Contribution Profit is the performance measure, if at least the applicable Threshold
Variable Store Contribution Profit but not the Target Variable Store Contribution Profit is met, payout of a Target Incentive Award shall be based on the following schedule: 
 (A) With respect to Participants under a Sears Full-Line Store (including the great indoors) or a Kmart Store: 
  

				
	 % of Target
	  	% Payout	 
	 80% - 92%
	  	20	%
	 93%
	  	40	%
	 94%
	  	60	%
	 95%
	  	80	%

 In this case, if the applicable Variable Store Contribution Profit performance is above
ninety-five (95%) of Target Variable Store Contribution Profit but below Target Variable Store Contribution Profit payout levels, the adjustment to an Award shall be determined by straight-line interpolation. 
 (B) With respect to all other Retail Units, the payout level(s) for performance under Target shall be as determined by the Senior
Corporate Compensation Executive in accordance with Section 4.4 below. 
 (ii) Target Payout. Subject to
Participant performance and for Sears Full-Line Stores (including the great indoors) and Kmart Stores their Location Balanced Scorecard performance, and Sections 5 and 6, if the applicable Target Variable Store Contribution Profit is met, one
hundred percent (100%) of a Target Incentive Award shall be paid to a Participant for whom Variable Store Contribution Profit is the performance measure. 
  

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 (iii) Subject to Participant performance and for Sears Full-Line Stores (including
the great indoors) and Kmart Stores their Location Balanced Scorecard performance, and Sections 5 and 6, if the applicable Variable Store Contribution Profit performance exceeds the applicable Target Variable Store Contribution Profit, the maximum
payout percentage shall be as determined by the Senior Corporate Compensation Executive. 
 4.3. Participant and Team
Performance. 
 (a) Individual Modifier. Except as provided in subsection (a)(ii) herein, the Senior Corporate
Compensation Executive or the Compensation Committee, as applicable, shall have the discretion to apply an individual performance modifier to a Participant’s Annual Incentive Award, which enables the Award to be modified, positively or
negatively, based on individual Participant or team performance, subject to the following: 
 (i) An individual modifier may
be applied to modify a Participant’s Annual Incentive Award as follows: 
  

					
	 Performance
	  	Annual Rating	  	Modifier
	 Exceeds Expectation
	  	5	  	+ 0% to 25%
	 Above Average
	  	4	  	+ 0% to 15%
	 Average
	  	3	  	No adjustment
	 Below Average
	  	2	  	- 25%
	 Poor Performance
	  	1	  	- 100%

 (ii) The individual modifier shall not apply to the portion of an Award
attributable to any portion of the Performance Period during which a Participant is an Executive (as defined in Section 9), and in no event will positive discretion be applied to any Award for a Participant who is a “covered employee”
within the meaning of Code Section 162(m) (and the regulations issued thereunder) with respect to the Performance Period or as of the payment date (as defined under subsection 5.1). 
 (iii) Notwithstanding the forgoing, the Award payable to any Participant under a Retail Unit shall be subject to the applicable maximum
payout percentage, if any, as determined by the Senior Corporate Compensation Executive. 
 (b) Location Balanced
Scorecard. The Senior Corporate Compensation Executive shall apply the results of the Location Balanced Scorecard to qualify or modify the Annual Incentive Award of Participants under a Sears Full-Line Store (including the great indoors) or
Kmart Store, provided such units have met its applicable Threshold Variable Store Contribution Profit, subject to the following: 
 (i) The Location Balanced Scorecard results will apply to qualify or modify these Participants’ Annual Incentive Award as follows: 
 (A) Award payouts will be subject to reduction for scores lower than 100%, based on the Location Balanced Scorecard results. 
  

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 (B) There will be no Award payout of to Participants for whom the Location Balanced
Scorecard results are below 75%. 
 (ii) “Location Balanced Scorecard” refers to an internal rating scorecard which
measures elements that a Sears Full-Line Store (including the great indoors) or Kmart Store team can control and for which the team can be held accountable, including getting stores to standard, executing core processes, customer relations,
associate relations and managing expenses. 
 (iii) The Senior Corporate Compensation Executive shall have the discretion to
apply an individual performance modifier described in subsection 4.3(a) above to the Annual Incentive Award of Participants under a Sears Full-Line Store (including the great indoors) or Kmart Store, which enables the Award to be modified,
positively or negatively, based on individual Participant performance. 
 (iv) Notwithstanding the forgoing, the Award payable
to any Participant under a Retail Unit shall be subject to the applicable maximum payout percentage, if any, as determined by the Senior Corporate Compensation Executive. 
 4.4. Other Financial Performance Metrics. In addition to the financial performance goals and measures described above, other financial goals and measures shall be established to measure the contribution
or profit of business units, other than Business Units as defined in Section 9. The threshold and target amounts and related payout percentages for these other financial measures were generally established utilizing the criteria, as described
in subsection 4.1(a) and (b) and subsection 4.2(a) and (b) above. Notwithstanding the foregoing, for certain Participants a different threshold performance percentage (than those provided for under subsections 4.1(a) and (b)) may apply
based upon such Participants’ business unit, as well as difference payout percentages and maximum payouts. The applicability of any other performance measure referred to in this Section 4.4 to a Participant will depend on his or her
business unit and Assignment. 
 4.5. Additional Requirements. All Annual Incentive Awards awarded under the AIP are subject to
the provisions of Sections 5, 6 and 7. 
 SECTION 5 
 DISTRIBUTION 
 5.1. Time of
Payment. Subject to Sections 6 and 7, the Annual Incentive Awards that are payable under the AIP, based on the Awards and payout formulas described at Sections 3 and 4, shall be distributed immediately after the Compensation Committee has
certified the attainment of the performance goals and the Compensation Committee or the Senior Corporate Compensation Executive, as appropriate, has determined the amount to be paid to each Participant, which shall in no event be later than the date
which is two and one-half (2 1/2) months after the last day of the 2009 Fiscal Year. Notwithstanding anything herein to the
contrary, such distributions shall be made no later than required by Code Section 409A to avoid treatment of the AIP as a deferred compensation plan under Code Section 409A. The date as of which payment is made in accordance with this
subsection 5.1 is referred to herein as the “payment date.” 
  

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 5.2. Form of Payment. An Annual Incentive Award shall generally be satisfied by a
single, lump sum cash payment to the Participant, provided, however, that, at the discretion of the Committee, the Company may elect, by such deadline as specified under uniform and nondiscriminatory rules established by the Committee, to satisfy
such Annual Incentive Award by payment of shares of Company common stock (“Stock”) in lieu of cash, or a combination of cash and shares of Stock. The number of shares of Stock shall be equal to (i) the amount of the Award to be paid
in stock in accordance with this subsection 5.2, divided by (ii) the Fair Market Value of a share of Stock, on the principal securities exchange or market on which the shares are then listed or admitted, on the business day immediately
preceding the date of distribution or, if the Stock is not traded on that date, on the next preceding date on which Stock was traded; provided that issuance of any shares of Stock in accordance with this subsection 5.2 shall be contingent on the
availability of shares of Stock under any shareholder-approved plan of the Company providing for the issuance of Stock in satisfaction of the Awards hereunder (which in no event shall be an employee stock purchase plan). 
 5.3. Termination of Employment and Other Provisions. All distributions are subject to the provisions of Sections 6 and 7, below.

 SECTION 6 
 TERMINATION OF EMPLOYMENT; LEAVE OF ABSENCE; REINSTATEMENT 
 Any Award payable under this Section 6 shall be
payable in accordance with Section 5. 
 6.1. Termination of Employment. If a Participant incurs a termination of
employment before the payment date (as defined in Section 5.1 above), the effect of termination of employment on a Participant’s right to receive an Award under the AIP shall depend on the reason for the termination, as described in this
subsection 6.1. 
 (a) Voluntary Termination or Involuntary Termination. In the event that prior to the payment date of
an Award, a Participant (i) voluntarily terminates employment (for any reason other than due to permanent and total disability, as defined in the Company’s long-term disability program, regardless of whether the Participant is covered by
such program) or (ii) is involuntarily terminated for any reason (other than death) prior to the payment date of an Award, such Participant shall forfeit his or her Award, except as prohibited by law. For the avoidance of doubt, if a
Participant retires prior to the payment date of an Award, such Participant shall forfeit his or her Award. 
 (b)
Disability. In the event that prior to the payment date of an Award, a Participant suffers a permanent and total disability (as defined in the Company’s long-term disability program, regardless of whether the Participant is
covered by such program) while employed by the Company or an Employer resulting in termination or retirement, subject to Section 7 below, such Participant shall be entitled to a distribution of the Award that would otherwise be payable to the
Participant under Sections 3 and 4 above, pro-rated based upon a fraction, the numerator of which is the number of full days worked on active payroll in an incentive-eligible position during the Performance Period and the denominator of which is the
number of days in the Performance Period (or the number of days remaining in the Performance Period after the individual is assigned to an incentive-eligible position). 
  

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 (c) Death. In the event that a Participant dies while employed by a
Participating Employer but prior to the payment date of his or her Award, the estate of such Participant shall be entitled to a distribution of the Award, if any, payable in cash that would otherwise be payable to the Participant under Sections 3
and 4 above, pro-rated based upon a fraction, the numerator of which is the number of full days worked on active payroll in an incentive-eligible position during the Performance Period and the denominator of which is the number of full days in the
Performance Period (or the number of days remaining in the Performance Period after the individual is assigned to an incentive-eligible position). 
  

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 6.2. Leave of Absence.  
 (a) General. In the event that a Participant is on an unpaid leave of absence any time during the Performance Period or at the time
of the payment date, subject to paragraphs (b) and (c) immediately below and Section 7, such Participant shall be entitled to a distribution of the Award that would otherwise be payable to the Participant under Sections 3 and 4 above,
pro-rated based upon a fraction, the numerator of which is the number of full days worked on active payroll in an incentive-eligible position during the Performance Period and the denominator of which is the number of days in the Performance Period.

 (b) Short-Term Disability. In the event that a Participant is on a leave of absence due to short-term disability
(including, for purposes of the AIP, paid maternity leave) any time during the Performance Period, subject to paragraphs (c) below and Section 7), the period of the leave of absence shall be treated as time on active payroll and will be
credited toward the determination of the Participant’s Award and the Participant shall be entitled to payment of the Award in accordance with Section 5, even if the Participant is on the short-term disability leave of absence as of the
payment date. 
 (c) Salary Continuation. In the event that a Participant is receiving salary continuation under a
severance or non-compete agreement or a Company-sponsored transition pay or severance pay plan as of the payment date, such Participant shall forfeit his or her Award. 
 6.3. Reinstatement. If a Participant who forfeited his or her Award as a result of a termination of employment is reinstated or rehired during the Performance Period, any Award attributable to the
portion of the Performance Period prior to the termination of employment shall remain forfeited. Notwithstanding the foregoing, such a Participant shall be eligible for an Award based on a fraction, the numerator of which is the number of days
worked on active payroll in an incentive-eligible position on or after the date of reinstatement or rehire during the Performance Period and the denominator of which is the number of days in the Performance Period. 
 SECTION 7 
 OPERATION AND
ADMINISTRATION 
 7.1. Compensation Committee and Senior Corporate Compensation Executive. 
 (a) Compensation Committee. Notwithstanding paragraph (b) immediately below, the Compensation Committee: 
 (i) Shall approve the Target Annual Incentives and the Awards for Executives under its purview; 
 (ii) Notwithstanding paragraph (b) below, with respect to Executives under its purview, shall have the authority and discretion to
establish the terms, conditions, restrictions, and other provisions of such Awards, including without limitation the financial performance goals and the performance measures for each such Executive’s Assignment in accordance with
Section 4, and (subject to the restrictions imposed by Section 8) to amend, cancel, or suspend Awards, subject to the requirements of Code Section 162(m), if applicable; 
  

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 (iii) May make additional changes to the AIP that it deems appropriate for the
effective administration of the AIP; provided however, that these changes may not increase the benefits to which Participants may become entitled under the AIP nor change the pre-established measures or goals that have been approved, except as
explicitly provided in the AIP; and 
 (iv) Shall be responsible for all other duties and responsibilities allocated to the
Compensation Committee under the terms and conditions of the AIP. 
 (b) Senior Corporate Compensation Executive.
Except as provided in paragraph (a) immediately above, the Senior Corporate Compensation Executive: 
 (i) Shall
Determine the Target Annual Incentive for each Participant; 
 (ii) Shall have the authority to control and manage the
operation and administration of the AIP; 
 (iii) Shall be responsible for the day-to-day administration of the AIP, including
without limitation the exception process described in Section 7.2 below; 
 (iv) Subject to the other provisions of the
AIP, have the authority and discretion to determine the time or times of receipt of Awards, to establish the terms, conditions, restrictions, and other provisions of such Awards, and (subject to the restrictions imposed by Section 8) to amend,
cancel, or suspend Awards, subject to the requirements of Code Section 162(m), if applicable; and 
 (v) Shall be
responsible for all other duties and responsibilities allocated to the Senior Corporate Compensation Executive under the terms and conditions of the AIP. 
 (c) Any determinations by the Compensation Committee or the Senior Corporate Compensation Executive, as applicable, regarding this AIP are binding on all Participants. 
 (d) The Senior Corporate Compensation Executive and the Compensation Committee, as appropriate, shall have the authority and discretion to
interpret the AIP, to establish, amend, and rescind any rules and regulations relating to the AIP and to make all other determinations that may be necessary or advisable for the administration of the AIP. 
 7.2. Incentive Exceptions. The Senior Corporate Compensation Executive shall have the authority to receive and consider requests by
Business Units of the Participating Employers for an exception to an established performance measures due to circumstances outside of the business unit’s control. The Senior Corporate Compensation Executive may establish a procedure for
reviewing and approving or rejecting an exception. Any exception determination shall be binding. In no event will positive discretion be applied, by the Compensation Committee or the Senior Corporate Compensation Executive, to any Award that has
been designated 

  

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as intended to meet the requirements of Code Section 162(m) (and the regulations issued thereunder) with respect to the Performance Period or as of the
payment date (as defined under subsection 5.1).  
 7.3. Discretion. Notwithstanding Section 7.2 or anything in the
AIP to the contrary, with respect to Awards that are not designated as intended to meet the requirements of “performance-based compensation” under Code Section 162(m) (and the regulations issued thereunder) and prior to the settlement
of any Award, the Compensation Committee or the Senior Corporate Compensation Executive, as applicable, may change the pre-established measures and goals that have been approved for such Award and increase or reduce the amount of such Award.

 7.4. Tax Withholding. All distributions under the AIP are subject to withholding of all applicable taxes. In the case of
Awards under the AIP that are settled in shares of Stock, if any, the Senior Corporate Compensation Executive or the Compensation Committee, as applicable, may condition the delivery of any shares or other benefits under the AIP on satisfaction of
the applicable withholding obligations. To the extent permitted by the Senior Corporate Compensation Executive or the Compensation Committee, as applicable, such withholding obligations may be satisfied: (a) through cash payment by the
Participant; (b) through the surrender of shares of Stock which the Participant already owns (provided, however, that to the extent shares described in this paragraph (b) are used to satisfy more than the minimum statutory withholding
obligation, as described below, then, except as otherwise provided by the Senior Corporate Compensation Executive or the Compensation Committee, as applicable, payments made with shares of Stock in accordance with this paragraph (b) shall be
limited to shares held by the Participant for not less than six months prior to the payment date (or such other period of time as the Company’s accountants may require)); or (c) through the surrender of shares of Stock to which the
Participant is otherwise entitled under the AIP, provided, however, that such shares under this paragraph (c) may be used to satisfy not more than the Company’s minimum statutory withholding obligation (based on minimum statutory
withholding rates for Federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). 
 7.5. Source of Awards. In the case of Awards under the AIP that are settled in shares of Stock, such shares shall be distributed under a stock plan adopted by the Company and approved by the shareholders thereof that provides
for the issuance of Stock in satisfaction of Awards hereunder, (which in no event shall be an employee stock purchase plan.) In the event of any conflict between this document and such stock plan, the provisions of the stock plan shall govern.

 7.6. Settlement of Awards. The obligation to make payments and distributions with respect to Awards may be satisfied through
cash payments, the delivery of shares of Stock, or a combination thereof, as provided under subsection 5.2, subject, in the case of settlement in shares, to the terms of the stock plan under which the Stock is issued. Satisfaction of any such
obligations under an Award, which is sometimes referred to as the “settlement” of the Award, may be subject to such conditions, restrictions and contingencies as the Senior Corporate Compensation Executive or the Compensation Committee, as
appropriate, shall determine. Each Employer shall be liable for payment of an Award due under the AIP with respect to any Participant to the extent that such benefits are attributable to the services rendered for that Employer by the Participant.
Any disputes relating to liability of an Employer for payment of an Award shall be resolved by the Senior Corporate Compensation Executive or the Compensation Committee, as appropriate. 
  

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 7.7. Transferability. Except as otherwise provided by the Senior Corporate Compensation
Executive, Awards under the AIP are not transferable except as designated by the Participant by will or by the laws of descent and distribution. 
 7.8. Form and Time of Elections. Unless otherwise specified herein, any election required or permitted to be made by any Participant or other person entitled to benefits under the AIP, and any permitted modification, or
revocation thereof, shall be in writing filed with the Senior Corporate Compensation Executive at such times, in such form, and subject to such restrictions and limitations, not inconsistent with the terms of the AIP, as the Senior Corporate
Compensation Executive shall require. 
 7.9. Action by Company or Employer. Any action required or permitted to be taken under
the AIP by the Company or any other Employer shall be by resolution of its board of directors, or by action of one or more members of the board of directors of such company (including a committee of the board) who are duly authorized to act for such
board with respect to the applicable action, or (except to the extent prohibited by applicable law or applicable rules of any securities exchange or similar entity) by a duly authorized officer of such company. 
 7.10. Gender and Number. Where the context admits, words in any gender shall include any other gender, words in the singular shall include
the plural and the plural shall include the singular. 
 7.11. Limitation of Implied Rights. 
 (a) Neither a Participant nor any other person shall, by reason of participation in the AIP, acquire any right in or title to any assets,
funds or property of the Company or any Employer whatsoever, including, without limitation, any specific funds, assets, or other property which the Company or any Employer, in its sole discretion, may set aside in anticipation of a liability under
the AIP. A Participant shall have only a contractual right to the cash, if any, payable under the AIP, unsecured by any assets of the Company or any Employer, and nothing contained in the AIP shall constitute a guarantee that the assets of the
Company or any Employer shall be sufficient to pay any benefits to any person. 
 (b) The AIP does not constitute a contract
of employment, and status as a Participant shall not give any Eligible Employee the right to be retained in the employ of the Company or any Employer, nor any right or claim to any benefit under the AIP, unless such right or claim has specifically
accrued and vested under the terms of the AIP. 
 7.12. Evidence. Evidence required of anyone under the AIP may be by
certificate, affidavit, document or other information, which the person charged with acting on such evidence considers pertinent and reliable, and which has been signed, made or presented by the proper party or parties. 
 7.13. Information to be Furnished. The Company and the Participating Employers shall furnish the Senior Corporate Compensation Executive
and the Compensation Committee with such data and information as it determines may be required for it to discharge its duties. The records of the Company and the Participating Employers as to an employee’s or Participant’s employment,

  

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 2009 AIP 
  

 
termination of employment, leave of absence, reemployment, and compensation shall be conclusive on all persons unless determined to be incorrect.
Participants and other persons entitled to benefits under the AIP must furnish the Senior Corporate Compensation Executive or the Compensation Committee, as appropriate, such evidence, data or information as the Senior Corporate Compensation
Executive or the Compensation Committee considers desirable to carry out the terms of the AIP, subject to any applicable privacy laws. 
 SECTION 8 
 AMENDMENT AND TERMINATION 
 The Company may amend or terminate the AIP at any time and for any reason in its sole discretion. Notwithstanding the foregoing, no amendment may be
made, without the consent of the shareholders of the Company, that would cause any Awards intended to meet the requirements of “performance-based compensation” under Code 162(m) and the regulations thereunder, to cease to be deductible
under Code Section 162(m). Further, notwithstanding anything herein to the contrary, (a) no amendment shall be made that would cause the AIP not to comply with the requirements of Code Section 409A or any other applicable law or rule
of any applicable securities exchange or similar entity, and (b) the AIP and any Award thereunder may be amended without Participant consent to the extent that the Compensation Committee (or its authorized representative) determines such
amendment necessary to cause the AIP or Award to comply with the requirements of Code Section 409A or any other applicable law or rule of any applicable securities exchange or similar entity. 
 SECTION 9 
 DEFINED TERMS 

 9.1. In addition to the other definitions contained herein, the following definitions shall apply: 
 (a) Assignment. The term “Assignment” refers to the performance goals and measure(s) (under subsections 4.1 and 4.2) that
have been assigned by the Senior Corporate Compensation Executive or the Compensation Committee, as appropriate, to a Participant, based upon position, location and/or business unit. Assignment also includes the weight of each performance measure
assigned to the Participant. 
 (b) Award. The term “Award” or “Awards” refers to any Annual
Incentive Award(s) awarded under the AIP. 
 (c) Business Unit. The capitalized term “Business Unit” shall
refer, individually, to each Operating Business Unit, the Real Estate Business Unit, the Brands Business Unit or the Online Business Unit; or collectively to all of these Business Units. 
 (d) Compensation Committee. The term “Compensation Committee” refers to the Compensation Committee of the Board of
Directors of Sears Holdings Corporation. 
 (e) Code. The term “Code” means the Internal Revenue Code of
1986, as amended from time to time (and the regulations issued thereunder). A reference to any provision of the Code shall include reference to any successor provision of the Code (and the regulations issued thereunder). 
  

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 2009 AIP 
  

 (f) Executive. The term “Executive” refers to any employee of an
Employer who holds a position of senior vice president or higher of Sears Holdings Corporation (not of any subsidiary or affiliate) or any employee who is an executive officer under Section 16(b) of the Securities and Exchange Act of 1934 with
respect to Sears Holdings Corporation. 
 (g) Fair Market Value. The term “Fair Market Value” shall mean the
reported closing price of a share of Stock on the principal securities exchange or market on which the Stock is then listed or admitted to trading. 
 (h) Fiscal Year. The capitalized term “Fiscal Year” refers to the twelve (12) month period beginning on February 1, 2009 and ending on January 30, 2010 (i.e., the Saturday closest to
January 31 of calendar year 2010). 
 (i) Retail Units. The term “Retail Units” refers collectively to
each Sears Full-Line Store (including the great indoors), Kmart Store and all other retail units, which are not a Business Unit or Support Business Unit as defined herein. 
 (j) Senior Corporate Compensation Executive. The term “Senior Corporate Compensation Executive” refers to the Senior Vice
President of Human Resources (i.e., the most senior human resources officer of the Company), or if he or she has explicitly delegated his or her duties with respect to the AIP, as provided herein, then the Senior Corporate Compensation Executive
shall refer to such authorized representative to whom the duties of administering the AIP have been delegated. 
 (k)
Support Center. For purposes of determining which corporate hourly employees are Eligible Employees under the AIP, the term “Support Center” refers to business units at the following corporate locations: (i) Hoffman Estates,
Illinois, (ii) Troy, Michigan, (iii) Dodgeville, Wisconsin, (iv) Tucker, Georgia, (v) Dallas, Texas, (vi) New York Design Center facilities in New York, (vii) SHIP in Longwood, Florida, and (viii) SRAC in
Wilmington, Delaware, which cannot be tied specifically to any one Business Unit. Employees on a Support Center overhead account may, however, be further categorized as determined by the Senior Corporate Compensation Executive or the Compensation
Committee (as applicable), under a Business Unit (as defined herein) or other business units instead of under a Support Business Unit (as defined immediately below), if they can be tied specifically to such unit. 
 (l) Support Business Unit. The term “Support Business Unit” shall refer to business units tied to a Support Center that
service multiple business units and cannot be tied specifically to any one Business Unit or Retail Units. 
  

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 2009 AIP 
  

 SECTION 10 
 EXPIRATION OF AIP 
 The AIP shall expire, subject to earlier termination pursuant to
Section 8, on the date on which all Annual Incentive Awards (if any) are paid in full or would have been payable in accordance with the provisions of the AIP. 
 *                                        
*                                        *

 IN WITNESS WHEREOF, the Compensation Committee of the Board of Directors of Sears
Holdings Corporation has caused this AIP to be executed effective as of the date first stated above, by the undersigned officer of Sears Holdings Corporation on this 1st day of May, 2009. 
  

			
	SEARS HOLDINGS CORPORATION
		
	By:	 	 /s/ William R. Harker

		 	William R. Harker
	Title:	 	 SVP, HR, General Counsel and Corporate Secretary

  

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 2009 AIP 
  

 SEARS HOLDINGS CORPORATION 
 2009 ANNUAL INCENTIVE PLAN 
 APPENDIX A 
 Participating Employers 
 (As of
April 28, 2009) 
  

	1.	Sears Holdings Corporation 

  

	2.	Sears Holdings Management Corporation 

  

	3.	Sears, Roebuck and Co. 

  

	 	•	 	 Excluding Orchard Supply Hardware Stores Corporation 

  

	4.	Kmart Holding Corporation 

 FIRST AMENDMENT 
 TO THE 
 SEARS HOLDINGS CORPORATION 
 2009 ANNUAL INCENTIVE PLAN 
 Pursuant to the amendment authority reserved to Sears Holdings Corporation under Section 8 of the Sears Holdings Corporation 2009 Annual Incentive Plan (“Plan”), which authority was delegated by a March 27, 2007
resolution of the Board of Directors of Sears Holdings Corporation to the Sears Holdings Corporation Administrative Committee (“Administrative Committee”), the Plan is hereby amended in the following respects, effective as of the first day
of the Performance Period (as such term is defined under Section 3.3 of the Plan): 
 1. The Plan is amended by replacing each reference
therein to “Variable Store Contribution Profit” with “Store Variable Profit Contribution”. 
 2. Subsection 4.1(c)(i) of
the Plan is amended by deleting it in its entirety and inserting the following new subjection (i) in its place: 
 “(i) Store Variable Profit Contribution. Store Variable Profit Contribution shall be the financial performance goal for Participants who are under a Sears Full-Line Store, Kmart Store or any other retail unit (referred to
collectively herein as “Retail Units”), as determined by the Senior Corporate Compensation Executive. “Store Variable Profit Contribution” refers to the “variable profit contribution” balance reported on the
system-generated store Profit & Loss Statement and generally consists of store gross margin less expenses categorized as variable at a store level, such as payroll, benefits, advertising, supplies and certain operating costs. This
performance goal does not apply to any Executive.” 
 3. Subsection 4.1(c)(ii) of the Plan is amended by deleting it in its entirety and
inserting the following new subjection (ii) in its place: 
 “(ii) Threshold Store Variable Profit
Contribution. “Threshold Store Variable Profit Contribution” reflects the minimum applicable Store Variable Profit Contribution that must be achieved with respect to Awards based on a Store Variable Profit Contribution, which shall be
equal to eighty percent (80%) of the applicable Target Store Variable Profit Contribution for a Sears Full-Line Store or a Kmart Store but shall vary for all other Retail Units.” 
 4. Subsection 4.2(c)(i) of the Plan is amended by deleting the introductory language thereof in its entirety (and retaining subsections (i)(A) and
(i)(B)) and inserting the following new introductory language in its place: 
 “(i) Payout under Target. Subject
to Participant performance and for Sears Full-Line Stores and Kmart Stores their Location Balanced Scorecard performance, and Sections 5 and 6, with respect to a Participant for whom Store Variable Profit Contribution is the performance measure, if
at least the applicable Threshold Store Variable Profit Contribution but not the Target Store Variable Profit Contribution is met, payout of a Target Incentive Award shall be based on the following schedule:” 
  

 20 

 5. Subsection 4.2(c)(ii)(A) of the Plan is amended by deleting the introductory language thereof in its
entirety and inserting the following new introductory language in its place: 
 “(A) With respect to Participants under a
Sears Full-Line Store or a Kmart Store:” 
 6. Subsection 4.2(c)(ii) of the Plan is amended by deleting it in its entirety and inserting
the following new subjection (ii) in its place: 
 “(ii) Target Payout. Subject to Participant performance
and for Sears Full-Line Stores and Kmart Stores their Location Balanced Scorecard performance, and Sections 5 and 6, if the applicable Target Store Variable Profit Contribution is met, one hundred percent (100%) of a Target Incentive Award
shall be paid to a Participant for whom Store Variable Profit Contribution is the performance measure.” 
 7. Subsection 4.2(c)(iii) of
the Plan is amended by deleting it in its entirety and inserting the following new subjection (iii) in its place: 
 “(iii) Subject to Participant performance and for Sears Full-Line Stores and Kmart Stores their Location Balanced Scorecard performance, and Sections 5 and 6, if the applicable Store Variable Profit Contribution performance exceeds the
applicable Target Store Variable Profit Contribution, the maximum payout percentage shall be as determined by the Senior Corporate Compensation Executive.” 
 8. Subsection 4.3(b) of the Plan is amended by deleting the introductory language thereof in its entirety and inserting the following new introductory language in its place: 
 “(b) Location Balanced Scorecard. The Senior Corporate Compensation Executive shall apply the results of the Location Balanced
Scorecard to qualify or modify the Annual Incentive Award of Participants under a Sears Full-Line Store or Kmart Store, provided such units have met its applicable Threshold Store Variable Profit Contribution, subject to the following:”

 9. Subsection 4.3(b)(ii) of the Plan is amended by deleting it in its entirety and inserting the following new subjection (ii) in its
place: 
 “(ii) “Location Balanced Scorecard” refers to an internal rating scorecard which measures elements
that a Sears Full-Line Store or Kmart Store team can control and for which the team can be held accountable, including getting stores to standard, executing core processes, customer relations, associate relations and managing expenses.”

 10. Subsection 4.3(b)(iii) of the Plan is amended by deleting it in its entirety and inserting the following new subjection (iii) in
its place: 
 “(iii) The Senior Corporate Compensation Executive shall have the discretion to apply an individual
performance modifier described in subsection 4.3(a) above to the Annual Incentive Award of Participants under a Sears Full-Line Store or Kmart Store, which enables the Award to be modified, positively or negatively, based on individual Participant
performance.” 
  

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 11. Subsection 9.1(i) of the Plan is amended by deleting it in its entirety and inserting the following
new subjection (i) in its place: 
 “(i) Retail Units. The term “Retail Units” refers collectively
to each Sears Full-Line Store, Kmart Store and all other retail units, which are not a Business Unit or Support Business Unit as defined herein.” 
 12. Except as amended herein, the Plan is hereby confirmed in all other respects. 
 IN WITNESS WHEREOF,
the Sears Holdings Corporation Administrative Committee has caused this Amendment to be executed, effective as of April 28, 2009 (the original Effective Date of the Plan), by the undersigned member of the Sears Holdings Corporation
Administrative Committee, on this 27th day of May, 2009. 
  

			
	SEARS HOLDINGS CORPORATION
		
	By:	 	 /s/ William K. Phelan

	Title:	 	 Member, SHC Administrative Committee

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