Document:

Non-Competition & Confidentiality Agreement dated February 20, 2006, Gary Yusko

 Exhibit 10.39 
 

 
 Alloy, Inc. 
 Non-Competition and Confidentiality Agreement 
 February 20, 2006 
 Gary J. Yusko 
 9 Nottingham Road 
 Livingston, NJ 07039 
 Dear Gary:

 In order to accept your offer of employment with Alloy Inc., a Delaware corporation (the “Company”), you must sign and return this
Non-Competition and Confidentiality Agreement (the “Agreement”). 
 As you know, Alloy has by letter made you an offer of employment
which sets forth the terms and conditions of your proposed employment with Alloy, including your initial pay and benefits. 
 In consideration of the
employment currently offered to you by Alloy, you agree to the following: 
  

	1.	Confidentiality: 

 Alloy and each entity,
directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Alloy (each, an “Affiliate”), have developed, use and maintain trade secrets and other confidential and proprietary
information including, without limitation, training materials, product information, personnel information relating to their employees, operating procedures, marketing information, profit and loss and other financial information, inventory strategy,
product costs, gross profit margins, selling strategies, client lists, supplier information, and customer information (the “Confidential Information”), and Alloy and its Affiliates have taken and shall continue to take, and expects
you to take, all reasonable measures to protect the confidentiality of such Confidential Information. It is understood that for purposes of this Agreement, “Confidential Information” does not include information that (i) is in the
public domain at the time of your receipt thereof, (ii) otherwise becomes public other than as a result of your breach of your obligations hereunder, (iii) is rightfully received from a third party without any obligation of confidentiality
to Alloy or any Affiliate or (iv) is independently developed by you. 
 151 W 26th Street • New York, New York 10001 • 212.244.4307 • 212.329.8444 [fax] • www.alloymarketing.com 

 

 
 You acknowledge that, during your employment with Alloy, you will have direct access to and knowledge of the
Confidential Information, and you acknowledge that if you become employed or affiliated with any competitor of Alloy in violation of your obligations in Section 2 of this Agreement, it is possible that you would disclose the Confidential
Information to such competitor. You covenant and agree that all such Confidential Information is and shall remain the sole property of Alloy and/or its Affiliates, as applicable, and that you will hold in strictest confidence, and will not (except
as required in the course of your employment with Alloy) disclose to any business, firm, entity or person, either directly or indirectly, any of the Confidential Information. You further agree that you will return all such Confidential Information
(regardless of how it is maintained) and any copies thereof to Alloy within three days of the termination of your employment, whether voluntary or involuntary and regardless of the reason for termination. The terms of this paragraph are in addition
to, and not in lieu of any legal or other contractual obligations that you may have relating to the protection of the Confidential Information. The terms of this paragraph shall survive indefinitely the termination of this Agreement and/or your
employment with Alloy. 
 The Company recognizes that the existing severance agreement between you and Westwood One through the end of calendar 2006 is not
covered by this noncompetition agreement. It is understood by both parties that this is the continuance of a severance payout and does not interfere with your ability to fulfill the CFO responsibilities. 
  

	2.	Non-Competition. 

 You acknowledge that Alloy
and its Affiliates have invested substantial time, money and resources in the development and retention of their respective customers, accounts and Confidential Information. You acknowledge and agree that any and all “goodwill” associated
with any customer or account of Alloy or any of its Affiliates belongs exclusively to Alloy and/or its Affiliates, as the case may be. You further acknowledge and agree that, during the course of your performing services for Alloy will, and its
Affiliates may, furnish, disclose or make available to you confidential and proprietary information related to Alloy’s and its Affiliates’ business(es) and that Alloy and/or one or more Affiliates may provide you with unique and
specialized training. You also acknowledge that such confidential information and such training have been developed and will be developed by Alloy and/or one or more Affiliates through the expenditure by Alloy and/or one or more Affiliates of
substantial time, effort and money and that all such confidential information and training could be used by you to compete with Alloy and/or one or more Affiliates. 
 151 W 26th Street • New York, New York 10001 • 212.244.4307 •
212.329.8444 [fax] • www.alloymarketing.com 

 

 
 In recognition of this, you covenant and agree as follows: 
 2.1 Definition of Competitive Business. You understand and acknowledge that Alloy’s and its Affiliates’ business interests are
world-wide because Alloy’s and its Affiliates’ products and/or services are sold in countries around the world and Alloy’s and its Affiliates’ competitors similarly operate from and market their products and/or services in many
locations around the world. As used in this Agreement (i) the term “Company Business” means the nontraditional media and marketing businesses primarily targeting the youth market engaged in by Alloy or any of its Affiliates at
any time anywhere in the world during your employment by Alloy and (ii) the term “Competitive Business” means any Company Business engaged in by any third party anywhere in the world. 
 2.2 Non-Competition. From the date hereof until the date that is the first anniversary date of the termination of your employment with Alloy (or
any Affiliate, as applicable and whichever is later) (the “Restricted Period”), you shall not, directly or indirectly, without the prior written consent of Alloy, individually or in partnership with, as part of a joint venture with,
or otherwise in conjunction in any other manner with any other entity: 
  

	 	(a)	be engaged in any manner whatsoever, including, without limitation, as an employee, employer, owner, partner, consultant, adviser, principal, agent, stockholder, member or
proprietor, in any Competitive Business; 

  

	 	(b)	either individually or on behalf of or through any third party, solicit, divert or appropriate or attempt to solicit, divert or appropriate, for the purpose of competing with any
Company Business, any customers or patrons of any Company Business, or any prospective customers or patrons with respect to which Alloy or any Affiliate has developed or made a sales presentation (or similar offering of services); or

  

	 	(c)	advise, invest in, lend money to, guarantee the debts or obligations of, or otherwise have any other financial interest in any Competitive Business. Notwithstanding the foregoing,
you shall be permitted to make wholly passive investments in any publicly held Competitive Business, provided that my direct and indirect ownership shall not exceed 1 % (by voting power) of the aggregate ownership interests in the entity
conducting such Competitive Business. 

 151 W 26th Street • New York, New York 10001 • 212.244.4307 • 212.329.8444 [fax] • www.alloymarketing.com 

 

 
  

	3.	No Solicitation. 

 3.1. No Solicitation of
Employees. You acknowledge the importance to the business carried on by Alloy and its Affiliates of the human resources engaged and developed by such entities. Accordingly, during the Restricted Period, you covenant and agree that you shall not,
directly or indirectly, induce or solicit or assist any third party in inducing or soliciting any employee or consultant of Alloy or any Affiliate to leave Alloy or any Affiliate or to accept employment or engagement elsewhere. Alloy acknowledges
that placing advertisements soliciting employees of the type then employed by Alloy or its Affiliates in newspapers, Internet job sites and similar media generally accessible to the public shall not be deemed to be a breach of this Section.

 3.2. No Solicitation of Clients and Suppliers. You acknowledge the importance to the business carried on by Alloy and its
Affiliates of the client and supplier relationships developed by it and them and the unique opportunity that your employment or engagement and your access to the Confidential Information offers to interfere with these relationships. Accordingly, you
covenant and agree that you shall not after the termination of your employment or engagement with Alloy, directly or indirectly, contact or solicit any person who you know to be a prospective, current or former client or supplier of Alloy or any
Affiliate for the purpose of selling to such client or buying from such supplier any Company Business products or services. 
  

	4.	Provisions Necessary and Reasonable: 

 You
agree that (i) the provisions of Sections 1, 2 and 3 are necessary and reasonable to protect Alloy’s and its Affiliates’ Confidential Information and goodwill; (ii) the specific time, geography and scope provisions set forth in
Section 2 are reasonable and necessary to protect Alloy’s and its Affiliates’ business interests; and (iii) in the event of your breach of any of your agreements set forth in Sections 1, 2 and 3, Alloy and its Affiliates would
suffer substantial irreparable harm and that such corporations would not have an adequate remedy at law for such breach. In recognition of the foregoing, you agree that in the event of a breach or threatened breach of any of these covenants, in
addition to such other remedies as Alloy or any Affiliate may have at law, without posting any bond or security, Alloy or any Affiliate shall be entitled to seek and obtain equitable relief, in the form of specific performance, or temporary,
preliminary or permanent injunctive relief, or any other equitable remedy which then may be available. The seeking of such injunction or order shall not affect Alloy’s or any Affiliate’s right to seek and obtain damages or other equitable
relief on account of any such actual or threatened breach. 
 151 W 26th Street • New York, New York 10001 • 212.244.4307 • 212.329.8444 [fax] • www.alloymarketing.com 

 

 
  

	5.	Choice of Law; Enforceability; Waiver of Jury Trial: 

 You acknowledge that a substantial portion of Alloy’s business is based out of and directed from the State of New York, where Alloy maintains its principal offices and administer all employee compensation and benefits. You also
acknowledge that during the course of your employment with Alloy you will have substantial contacts with New York. 
 This Agreement shall be
deemed to have been made in the State of New York, shall take effect as an instrument under seal within New York, and the validity, interpretation and performance of this Agreement shall be governed by, and construed in accordance with, the internal
law of New York, without giving effect to conflict of law principles. The parties further acknowledge that the last act necessary to render this Agreement enforceable is its execution by Alloy in New York, and that the Agreement thereafter shall be
maintained in New York. The parties agree that any action, demand, claim or counterclaim relating to the terms and provisions of this Agreement, or to its breach, shall be commenced in New York in a court of competent jurisdiction. The parties
further acknowledge that venue shall exclusively lie in New York and that material witnesses and documents would be located in New York. The parties further agree that any action, demand, claim or counterclaim shall be resolved by a judge alone, and
the parties hereby waive and forever renounce the right to a trial before a civil jury. 
  

	6.	Miscellaneous: 

 (a) You acknowledge and
agree that should you transfer between or among any Affiliates of Alloy or Alloy, wherever situated, or otherwise become employed by any Affiliate of Alloy or Alloy, or be promoted or reassigned to functions other than your present functions, the
terms of this Agreement including, but not limited to, Sections 1, 2 and 3 hereof, shall continue to apply with full force. Alloy may also assign its rights and obligations hereunder to any person or entity who succeeds to all or substantially all
of Alloy’s business or that aspect of Alloy’s business in which you are principally involved. Your rights and obligations under this Agreement may not be assigned by you without the prior written consent of Alloy. 
 (b) If any provision of this Agreement is held by a court of law to be illegal, overly broad or otherwise unenforceable in duration, geographical
coverage, substantive scope, or otherwise, that provision will be narrowed to the broadest term permitted by applicable law and enforced as so narrowed, and such court is hereby given express authority by the undersigned to modify the offending
provisions hereof and/or to delete specific words and phrases (“blue- pencilling”) without the signature or prior consent of the undersigned to the extent necessary to make them enforceable to the fullest extent permitted under applicable
law, and in its reduced or blue-pencilled form such provision shall then be enforced. Additionally, each provision of this Agreement restricting your activities in any way is intended to be separate from and enforceable separately from each such
other provision. 
 151 W 26th Street • New York, New York 10001 • 212.244.4307 • 212.329.8444 [fax]
• www.alloymarketing.com 

 

 
 (c) No amendment, waiver or revocation of this Agreement of any kind shall be effective unless supported by a
written instrument executed by you and an authorized officer of Alloy. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a
waiver of any such right, power or remedy of the party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy,
shall preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other
available remedies. No notice to or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand. 
 (d) You hereby acknowledge that you have had adequate opportunity to review these terms and conditions and to reflect upon and consider the terms and conditions of this Agreement. You further acknowledge that you fully understand its terms
and have voluntarily executed this Agreement and that the restrictions placed on you by this Agreement are reasonably necessary to protect Alloy’s and any Affiliate’s interests and will not preclude you from being gainfully employed in a
suitable capacity following the termination of your employment given your general knowledge and experience. 
 (e) The headings and captions
of the various subdivisions of this Agreement are for convenience of reference only and shall in no way modify, or affect the meaning or construction of any of the terms or provisions hereof. 
 (f) This Agreement may be executed in one or more counterparts, and by different parties hereto on separate counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. 
 (g) All statements, representations, warranties,
covenants and agreements in this Agreement shall be binding on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement shall be construed to create any
rights or obligations except among the parties hereto, and no person or entity shall be regarded as a third-party beneficiary of this Agreement. 
 151 W 26th Street • New York, New York 10001 • 212.244.4307 • 212.329.8444 [fax] •
www.alloymarketing.com 

 

 
 Kindly acknowledge your acceptance of this Agreement by signing both copies of this letter where indicated. 
  

			
	ALLOY, INC.
		
		 	/s/ James Johnson
	By:	 	James Johnson
	Title:	 	COO

 Dated: 3/1/06 
  

			
	ACCEPTED AND AGREED:
	
	/s/ Gary J. Yusko
	Print Name:	 	 Gary J. Yusko

 Dated: 3/1/06 
 151 W 25th Street • New York, New York 10001 • 212.244.4307 •
212.329.8444 [fax] • www.alloymarketing.comBombardier Recreational Products Inc. - Exhibit 4.8 - Prepared By TNT
Filings Inc.

   

  Exhibit 4.8 - 

  
  AMENDED J.A. BOMBARDIER (J.A.B.) INC.
  

  MANAGEMENT OPTION PLAN, 

  DATED FEBRUARY 1, 2006
  

  
   

              
            
          
        
      
    
  
   

  

  
 

  	 
	 
	 
	
      J.A. Bombardier (J.A.B.) Inc.
	
      Amended and Restated Management Option Plan
	
      February 1, 2006
	 
	 
	 

  

J.A. Bombardier (J.A.B.) Inc. 

Management Option Plan 

ARTICLE 1 

PURPOSE 

1.1 
Purpose 

The purpose of this Plan is to advance the
interests of J.A. Bombardier (J.A.B.) Inc. (the "Corporation") and its
subsidiaries by enhancing their ability to attract and retain employees,
managers and directors, to reward such individuals for their contributions and
to encourage such individuals to take into account the long-term interests of
the Corporation and its subsidiaries through their participation in the
Corporation's share capital by receiving Class B Shares. 

ARTICLE 2 

INTERPRETATION 

2.1 
Definitions 

When used herein the following terms have the following
meanings, respectively: 

"Adverse Claim" means any
pledge, charge, lien, security interest, mortgage, adverse claim or other
encumbrance of any kind or character; 

"Affiliate"
or "Affiliated" means:

(a)
with respect to any specified
Person other than a natural Person, any other Person which directly or
indirectly through one or more intermediaries controls, or is controlled by, or
is under common control with, such specified Person (for the purposes of this
definition, "control" (including, with correlative meanings, the terms
"controlling," "controlled by" and "under common control with"), as used with
respect to any Person other than a natural Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise); and 

(b)
with respect to any natural
Person, any natural Person who is a Member of the Immediate Family of such
natural Person. 

"Board"
means the board of directors of the Corporation; 

"Call Notice"
has the meaning set forth in Section 4.7 (b) of this Plan. 

"Call
Option" has the meaning set forth in Section 4.7 (a) of this Plan. 

"Canadian Securities Authorities"
means any of The British Columbia Securities Commission, Alberta Securities
Commission, Saskatchewan Securities Commission, The 

- 2 -

Manitoba Securities
Commission, Ontario Securities Commission, Commission des valeurs mobilières du
Québec, Justice Securities Administration (New Brunswick), Nova Scotia
Securities Commission, Registrar of Securities (Prince Edward Island), Director
of Securities (Government of Newfoundland and Labrador), Registrar of Securities
(Northwest Territories Justice Securities Registry), Registrar of Securities
(Yukon Justice), Nunavut Legal Registries, and any of their successors. 

"Canadian
Securities Laws" means the securities legislation of each of the provinces
and territories of Canada, as amended from time to time, and the rules,
regulations, blanket orders and orders having application to the Corporation and
forms made or promulgated under that legislation and the policies, instruments,
bulletins and notices of one or more of the Canadian Securities Authorities.

"Cause" means,
with respect to any Participant, the following events or conditions, (i) (other
than by reason of Disability) the willful failure to perform, or gross
negligence in the performance of, the Participant's material duties and
responsibilities to the Corporation or any of its subsidiaries, or willful
failure to follow or carry out any reasonable material direction of the Board,
and the continuance of such failure or gross negligence for a period of thirty
days after written notice to such Participant; (ii) the material breach by such
Participant of any agreement to which such Participant and the Corporation or
any of its subsidiaries are party, which breach continues for thirty days after
written notice to Participant; (iii) the commission of fraud, embezzlement,
theft, sexual harassment or other material dishonesty by Participant; (iv) the
conviction of Participant of, or plea by Participant of nolo contendere to, any
felony or any other crime involving dishonesty or moral turpitude; and (v) any
other intentional action or intentional omission that involves a material breach
of fiduciary obligation on the part of such Participant or otherwise could
reasonably be expected to have a material adverse effect upon the business,
interests, or reputation of the Corporation or any of its subsidiaries. 

"Change of Control"
means the first Transfer resulting in 50% or more of the then outstanding Class
A Shares of the Corporation being held by any Person or group of Persons acting
in concert (other than the Investors and their Affiliates and other than an
underwriter in connection with a Public Offering); 

"Class A Shares"
means the Class A Common Shares in the capital of the Corporation; 

"Class B Shares"
means the Class B Common Shares in the capital of the Corporation; 

"Committee" has
the meaning set forth in Section 3.2 of this Plan; 

"Common Shares" means the
common shares of the Corporation (including the Class A Shares and the Class B
Shares); 

"Corporation" has the meaning
set forth in Section 1.1 of this Plan; 

"Date of Grant"
means, for any Option, the date upon which the Option was granted; 

- 3 -

"Director" means a member of
the Board or of the board of directors of an Affiliated company; 

"Disabled" or "Disability"
means, for purposes of the Plan only, the inability of an Optionee to perform
substantially all of such Optionee's duties and responsibilities to the
Corporation and its Affiliates as a result of any illness, injury, accident or
condition of either a physical or psychological nature suffered by such Optionee,
with or without reasonable accommodation, for 180 consecutive days, as
determined by a physician selected by the Corporation to whom the Optionee has
no reasonable objection. 

"Electing Purchaser" has the
meaning set forth in Section 4.7(c) of this Plan; 

"Exercise Notice" means
a notice in writing, in the form set out in Schedule A, signed by an Optionee
and stating the Optionee's intention to exercise a particular Option; 

"Exercise Price" means
the price at which a Class B Share may be purchased pursuant to the exercise of
an Option; 

"Exercise 
Period" means the period of time during which an Option granted under this
Plan may be exercised (provided however that the Exercise Period may not exceed
10 years from the relevant Date of Grant); 

"Initial Public
Offering" means the first sale of Common Shares (whether in a primary
offering of new shares or a secondary offering of issued and outstanding shares)
to an underwriter for reoffering to the public in a Public Offering pursuant to
(i) an effective registration statement filed with the SEC on Form S-1 (or any
successor form), (ii) a preliminary and final prospectus filed with any Canadian
Securities Authority under Canadian Securities Laws or (iii) comparable
mechanics under the securities laws of any other jurisdiction; 

"Investors" has the meaning set
forth in the Shareholders Agreement; 

"Member of the
Immediate Family" means, with respect to any individual, each spouse
(whether by marriage or civil union) or common law partner (as defined in the 
Income Tax Act (Canada)) or child or other descendants (whether by birth or
adoption) of such individual, each spouse (whether by marriage or civil union)
or common law partner (as defined in the Income Tax Act (Canada)) of any
of the aforementioned individuals, each trust created solely for the benefit of
one or more of the aforementioned Persons and their spouses and each custodian
or guardian of any property of one or more of the aforementioned Persons in his
capacity as such custodian or guardian. 

"Option" means a
non-assignable, non-transferable right to purchase Class B Shares under this
Plan; 

"Optionee" means a Participant
who has been granted one or more Options; 

"Option Agreement" means
a signed, written agreement between an Optionee and the Corporation evidencing
the terms and conditions on which an Option has been granted. 

- 4 -

"Participant"
means a Director or an officer of the Corporation or of an Affiliated company, a
current full-time or part-time employee or contract employee of the Corporation
or of an Affiliated company. "Participant" includes Registered Retirement
Savings Plans or Registered Retirement Income Funds established by or for the
Director, officer or individual employee (or under which such individual is the
beneficiary) and a subsidiary entity of such individual; 

"Person" means
any individual, partnership, corporation, company, association, trust, joint
venture, limited liability company, unincorporated organization, entity or
division, or any government, governmental department or agency or political
subdivision thereof; 

"Plan" means this Management
Option Plan; 

"Public
Offering" a public offering and sale of Common Shares for cash pursuant to (i)
an effective registration statement under the United States Securities Act of
1933, as in effect from time to time, (ii) a preliminary and final
prospectus filed with any Canadian Securities Authority under Canadian
Securities Laws or (iii) comparable mechanics under the securities laws of any
other jurisdiction. 

"Retirement"
means retirement from active employment with the Corporation and an Affiliated
company at or after age 65 or at or after such earlier age and upon the
completion of such years of service as the Board may specify; 

"Remaining Shares" has the
meaning set forth in Section 4.7(c) of this Plan; 

"Shareholder Call Group" has
the meaning set forth in Section 4.7(a) of this Plan; 

"Shareholders
Agreement" means the
Unanimous Shareholders Agreement dated as of December 18, 2003 among the
Corporation, Bombardier Recreational Products Inc. and the shareholders of the
Corporation; 

"Subject Shares" has the
meaning set forth in Section 4.7 of this Plan; and 

"Termination
Date" means in the
case of a Participant whose employment or term of office with the Corporation or
an Affiliated company terminates in the circumstances set out in Section 4.6(b)
or 4.6(c), the date that is designated by the Corporation or an Affiliated
company, as the case may be, as the last day of the Optionee's employment or
term of office with the Corporation or the Affiliated company, as the case may
be, provided that in the case of termination of employment by voluntary
resignation by the Optionee, such date shall not be earlier than the date notice
of resignation was given, and "Termination Date" specifically does not mean the
date on which any period of reasonable notice that the Corporation or the
Affiliated company (as the case may be) may be required at law to provide to the
Optionee, would expire. 

2.2 
Interpretation 

(a)
Whenever the Board or, where
applicable, the Committee is to exercise discretion in the administration of the
terms and conditions of this Plan, the term 

- 5 -

"discretion" means the sole and
absolute discretion of the Board or the Committee, as the case may be. 

(b)
As used herein, the terms
"Article", "Section", "Subsection" and "clause" mean and refer to the specified
Article, Section, Subsection and clause of this Plan, respectively. 

(c)
Words importing the singular
include the plural and vice versa and words importing any gender include any
other gender. 

(d)
In this Plan, a Person is
considered to be a "subsidiary entity" of another Person if: 

(i)
it is controlled by, 

(A)
that other, or 

(B)
that other and one or more
Persons, each of which is controlled by that other, or 

(C)
two or more Persons, each of which is controlled by that other; or 

(ii) it is a subsidiary entity of a Person
that is that other's subsidiary entity. 

(e) In this Plan, a Person is considered
to be "controlled" by a Person if: (i) 
in the case of a Person, 

(A)
voting securities of the
first-mentioned Person carrying more than 50% of the votes for the election of
directors are held, otherwise than by way of security only, by or for the
benefit of the other Person, and 

(B)
the votes carried by the
securities are entitled, if exercised, to elect a majority of the directors of
the first-mentioned Person; 

(ii)
in the case of a partnership
that does not have directors, other than a limited partnership, the
second-mentioned Person holds more than 50% of the interests in the partnership;
or 

(iii)
in the case of a limited
partnership, the general partner is the second-mentioned Person. 

(f)
Unless otherwise specified,
all references to money amounts are to Canadian currency. 

- 6 -

ARTICLE 3 

ADMINISTRATION 

3.1 
Administration 

Subject to Section 3.2, this Plan will be administered by the
Board and the Board has sole and complete authority, in its discretion, to:

(a)
determine the individuals
(from among the Participants) to whom Options may be granted; 

(b)
grant Options in such amounts
and, subject to the provisions of this Plan, on such terms and conditions as it
determines including: 

(i)
the time or times at which
Options may be granted; 

(ii)
the Exercise Price, which
will not be less than the fair market value of the Common Shares subject to the
Option determined as of the date of grant; 

(iii)
the time or times when each
Option vests and becomes exercisable and, subject to Section 4.2, the duration
of the Exercise Period; 

(iv)
whether restrictions or
limitations are to be imposed on the Class B Shares and the nature of such
restrictions or limitations (including, without limitation, the conditions of
exercise set forth in Section ARTICLE 4); and 

(v)
any acceleration of
exercisability or waiver of termination regarding any Option, based on such
factors as the Board may determine; 

(c)
interpret this Plan and
adopt, amend and rescind administrative guidelines and other rules and
regulations relating to this Plan; and 

(d)
make all other
determinations, settle all controversies and disputes that may arise under this
Plan and take all other actions necessary or advisable for the implementation
and administration of this Plan. 

The Board's determinations and actions under
this Plan are conclusive and binding on the Corporation and all other Persons.
The day-to-day administration of the Plan may be delegated to such officers and
employees of the Corporation or of an Affiliated company as the Board
determines. 

3.2 
Delegation to Committee 

To the extent permitted by applicable law, the
Board may, from time to time, delegate to a committee (the "Committee")
of the Board all or any of the powers conferred on the Board under the Plan. In
such event, the Committee will exercise the powers delegated to it by the Board
in the manner and on the terms authorized by the Board. Any decision made or
action taken by the Committee arising out of or in connection with the
administration or interpretation of this Plan in this context is final and
conclusive. 

- 7 -

3.3 
Eligibility 

All Participants are eligible to participate
in the Plan, subject to Sections 4.51(b) and 4.6(d). Eligibility to participate
does not confer upon any Participant any right to be granted Options pursuant to
the Plan. The extent to which any Participant is entitled to be granted Options
pursuant to the Plan will be determined in the sole and absolute discretion of
the Board. 

3.4 
Total Class B Shares Subject to
Options 

(a)
The aggregate number of Class
B Shares that may be issued pursuant to the exercise of Options must not exceed
28,400,000. 

(b)
No Option may be granted if
such grant would have the effect of causing the total number of Class B Shares
subject to Options to exceed any of the total numbers of Class B Shares reserved
for issuance pursuant to the exercise of Options and set forth in Section
3.4(a). Subject to applicable law and the provisions of the Shareholders
Agreement, the Board may, in its discretion, amend the Plan to increase such
numbers of Class B Shares without notice to any Optionees. 

(c)
To the extent Options
terminate for any reason prior to exercise in full or are cancelled (with the
consent of the Optionee), the Class B Shares subject to such Options shall be
added back to the applicable number of Class B Shares reserved for issuance
under the Plan and such Class B Shares will again become available for grant
under this Plan as set forth in Section 3.4(a). 

3.5 
Option Agreements 

All grants of Options under Section 4.1 of this Plan will be
evidenced by Option Agreements. Such Option Agreements will be subject to the
applicable provisions of this Plan and contain such provisions as are required
by this Plan and any other provisions that the Board may, in its discretion,
direct. Any one officer of the Corporation is authorized and empowered to
execute and deliver, for and on behalf of the Corporation, an Option Agreement
to each Optionee. 

3.6 
Non-transferability 

Subject to Section 4.5 and except as
specifically provided in an Option Agreement approved by the Board, Options
granted under this Plan may only be exercised during the lifetime of the
Optionee by such Optionee personally. No assignment or transfer of Options,
whether voluntary, involuntary, by operation of law or otherwise, vests any
interest or right in such Options whatsoever in any assignee or transferee
(except that an Optionee may transfer Options to a corporation in respect of
which the Optionee is the sole shareholder) and immediately upon any assignment
or transfer, or any attempt to make the same, such Options will terminate and be
of no further force or effect. If any Optionee (the "Original Optionee")
has transferred Options to a corporation pursuant to this Section 3.6, such
Options will terminate and be of no further force or effect if at any time the
Original Optionee should cease to own all of the issued shares of such
corporation other than by reason of death. 

- 8 -

ARTICLE 4 

GRANT OF OPTIONS 

4.1 
Grant of Options 

The Board may, from time to time, subject to the provisions of this Plan and
such other terms and conditions as the Board may prescribe, grant Options to any
Participant. 

4.2 
Expiration of Options 

Subject to any accelerated termination as set
forth in this Plan (including, without limitation, as provided in Sections 4.5,
4.6 and 4.7), each Option expires on the 10th anniversary of the Date
of Grant. 

4.3 
Vesting, Conditions of Exercise and
Exercise Period 

The Board may determine the time or times at
which an Option will vest and become exercisable. Once an instalment has vested
and become exercisable, it remains exercisable until expiration or termination
of the Option, unless otherwise specified by the Board in the Option Agreement
entered into in connection with the grant of such Option. Each Option or
instalment may be exercised at any time or from time to time, in whole or in
part, for up to the total number of Class B Shares with respect to which it is
then exercisable. The Board has the right to accelerate the date upon which any
instalment of any Option becomes exercisable notwithstanding the vesting
schedule set forth in such Option, regardless of any adverse or potentially
adverse tax consequences resulting from such acceleration. 

Subject to the provisions of this Plan and any Option
Agreement, Options shall be exercised by means of a fully completed Exercise
Notice delivered to the Corporation. 

4.4 
Payment of Exercise Price 

The Exercise Notice must be accompanied by payment in full of
the purchase price for the Class B Shares to be purchased. The Exercise Price
must be fully paid in cash or by certified cheque, bank draft or money order
payable to the Corporation or by such other means as might be specified from
time to time by the Board. No Class B Shares will be issued or transferred until
full payment therefor has been received by the Corporation. As soon as
practicable after receipt of any Exercise Notice and full payment, the
Corporation will deliver to the Optionee a certificate or certificates
representing the acquired Class B Shares. 

4.5 
Exercise upon Retirement, Death or
Disability of Optionee 

If a Participant dies or becomes Disabled
while an employee, director or officer of the Corporation or an Affiliated
company or if the employment or term of office of the Optionee with the
Corporation or an Affiliated company terminates due to Retirement: 

(a)
the executor or administrator
of the Optionee's estate or the Optionee, as the case may be, may exercise any
Options of the Optionee to the extent that the Options were exercisable at the
date of such death, Disability or Retirement and the right to exercise such
Options terminates on the earlier of: (i) in the case of the Optionee's death,
the date that is 365 days from the date of the Optionee's death, 

- 9 -

and in the case of
Optionee's Disability or Retirement, the date that is 90 days from the date of
the Optionee's Disability or Retirement; and (ii) the date on which the Exercise
Period of the particular Option expires. Any Options held by the Optionee that
were not exercisable at the date of death, Disability or Retirement immediately
expire and are cancelled on such date; and 

(b)
such Optionee's eligibility
to receive further grants of Options under the Plan ceases as of the date of the
Optionee's death, Disability or Retirement, as the case may be. 

4.6 
Exercise upon Termination of
Employment or Services 

(a)
Where, in the case of a
Participant, an Optionee's employment or term of office with the Corporation or
an Affiliated company ceases by reason of the Optionee's death, Disability or
Retirement, then the provisions of Section 4.5 will apply. 

(b)
Where, in the case of a
Participant, an Optionee's employment or term of office terminates by reason of
termination by the Corporation or an Affiliated company without Cause (whether
such termination occurs with or without any or adequate reasonable notice, or
with or without any or adequate compensation in lieu of such reasonable notice),
then any Options held by the Optionee that are exercisable at the Termination
Date continue to be exercisable by the Optionee until the earlier of: (A) the
date that is 60 days after the Termination Date; and (B) the date on which the
Exercise Period of the particular Option expires. Any Options held by the
Optionee that are not exercisable at the Termination Date immediately expire and
are cancelled on the Termination Date. 

(c)
Where, in the case of a
Participant, an Optionee's employment or term of office terminates by reason of
(i) termination by the Corporation or an Affiliated company for Cause or (ii)
voluntarily resignation by the Optionee, then any Options held by the Optionee,
whether or not exercisable at the Termination Date, immediately expire and are
cancelled on such date or at a time as may be determined by the Board, in its
sole discretion. 

(d)
An Optionee's eligibility to
receive further grants of Options under the Plan ceases as of the date that the
Corporation or an Affiliated company, as the case may be, provides the Optionee
with written notification that the Optionee's employment or term of office, as
the case may be, is terminated, notwithstanding that such date may be prior to
the Termination Date. 

(e)
Unless the Board, in its
discretion, otherwise determines, at any time and from time to time, Options are
not affected by a change of employment within or among the Corporation or an
Affiliated company for so long as the Participant continues to be an employee,
director or officer of the Corporation or an Affiliated company, as the case may
be. 

- 10 -

4.7 
Call on Optionee Stock 

(a)
Except as otherwise set forth in any Option Agreement, upon any Participant's
termination of employment with the Corporation and its subsidiaries for any
reason, the Corporation shall have the right to purchase (a "Call Option")
all or any portion of the securities which is obtained by such Participant
through the exercise of an option (the "Subject Shares") or originally
issued to such Participant but held by one or more permitted transferees under
the Shareholders Agreement (collectively, the "Shareholder
Call Group"). The repurchase price shall be paid in cash; provided, however,
that at the election of the Corporation the Corporation may pay the repurchase
price in part in cash and in part in notes as follows: 

(i)
the Corporation will pay a
portion of the repurchase price in cash in an amount not less than the amount of
tax required to be paid by the Seller in respect to the year of repurchase in
connection with the repurchase, such amount to be reasonably determined in good
faith by the Corporation on the basis of the highest income tax rate applicable
to taxpayers of the applicable type in the jurisdiction in question, 

(ii)
the Corporation will issue a
promissory note in the aggregate principal amount equal to the balance of the
repurchase price, the principal amount of which note will be due and payable in
three equal annual installments, the first such installment becoming due and
payable on the first anniversary of the issuance of such note, and interest will
accrue thereon at a rate 8% per annum and be payable in cash annually in
arrears, in each case subject to the provisions of clause (iii) below, and

(iii) 
notwithstanding any of the
provisions of any promissory note issued under Section 4.7(a)(ii), including
without limitation, the stated maturity of such note and the stated date on
which interest payments are due, cash payments in respect of such promissory
note will not become due and payable until such time as such payment can be made
without violating any debt financing agreement to which the Corporation or any
of its subsidiaries is, from time to time, a party. 

Except as otherwise
provided herein or the Option Agreement, the repurchase price per share pursuant
to the Call Option shall be the fair market value of such share at the time of
repurchase pursuant to the Call Option. Except as otherwise provided in the
Option Agreement, if a Participant's employment is terminated by the Corporation
for Cause, the repurchase price per share will be equal to the lesser of: (A)
the original purchase price of such shares as reduced (but not below $.01 per
share) to account for any amounts paid by the Corporation in respect of
dividends or distributions relating to the Subject Shares and (B) the fair
market value of such share at the time of repurchase pursuant to the Call
Option. For purposes of this Section 4.7, fair market value of the shares shall
be determined by the Board in good faith, taking into account all material facts
then actually known to the Board. 

- 11 -

(b)
The Corporation may exercise the Call Option by providing written notice of such
exercise (the "Call Notice") to the applicable Shareholder Call Group
within 60 days after the later of (i) the effectiveness of the termination of
employment and (ii) the 180th day after any stock option held by the
applicable Participant could have been exercised. The Call Notice shall state
that the Corporation has elected to exercise the Call Option, and the number and
expected repurchase price of the Subject Shares with respect to which the Call
Option is being exercised. In such event, closing of the share sale pursuant to
the Call Option shall take place at such time and place as the Corporation shall
specify by notice to the Participant
which will be no later than 30 days after the date of the Corporation's
notice of exercise of the Call Option. At the closing of such sale, the holder
of Subject Shares to be sold shall deliver the certificates evidencing the
shares to be purchased by the Corporation duly endorsed, or with stock (or
equivalent) powers duly endorsed, for transfer with signature guaranteed, free
and clear of any liens or encumbrances, with any stock (or equivalent) transfer
tax stamps affixed, against payment of the repurchase price required by this
Section 4.7. In the event that such holder of Subject Shares fail to deliver
such certificates to the Corporation on the date specified by the Corporation
for the closing, the Corporation may cancel such Subject Shares on the books and
records of the Corporation and deposit such repurchase price in a separate bank
account for the benefit of such holders, which the Corporation shall release to
such holders upon receipt of such share certificates. The delivery of a
certificate or certificates for Subject Shares by any Person selling Subject
Shares pursuant to any Call Option shall be deemed a representation and warranty
by such Person that: (i) such Person has full right, title and interest in and
to such Subject Shares; (ii) such Person has all necessary power and authority
and has taken all necessary action to sell such Subject Shares as contemplated;
(iii) such Subject Shares are free and clear of any and all liens or
encumbrances and (iv) there is no Adverse Claim with respect to such Subject
Shares. 

(c)
If the Corporation elects not to exercise its Call Option or does not elect to
purchase all of the Subject Shares, the Corporation shall deliver a notice to
the Investors notifying the Investors of its election within 60 days after the
later of (i) the effectiveness of the termination of employment and (ii) the 180th
day after any stock option held by the applicable Participant could have been
exercised. The Investors shall have a second option to purchase any of the
Subject Shares which are not purchased by the Corporation or its assignee (the "Remaining
Shares") on the same term and conditions described above. Each Investor may
elect to purchase (each, an "Electing Purchaser") any number of the
Remaining Shares by providing a written notice thereof to the applicable
Participant within 90 days
after the later of (i) the effectiveness of the termination of employment and
(ii) the 180th day after any stock option held by the applicable
Participant shall have been exercised; provided however, the number of Remaining
Shares to be purchased by each Electing Purchaser shall be determined as
follows: 

(i)
First, each Electing
Purchaser shall be allocated a number of Remaining Shares equal to the lesser of
(A) the number of Remaining Shares as to which the Electing Purchaser elected to
purchase or (B) such Electing 

- 12 -

Purchaser's pro rata
share of such Remaining Shares based on the number of Class A Shares owned by
such Electing Purchaser as of immediately prior to the expiration of the period
for submitting election notices, and 

(ii)
the balance, if any, shall be
offered and allocated to Electing Purchasers to the extent they express (or in
the election notice expressed) a willingness to purchase additional Remaining
Shares (and, in the case of oversubscription for such additional Remaining
Shares, shall be allocated among Electing Purchasers in such manner as they may
agree, or absent agreement pro rated in accordance with their respective
ownership of Class A Shares as of immediately prior to the expiration of the
period for submitting election notices). 

(d)
Neither the Corporation nor
any Person directly or indirectly affiliated with the Corporation (in each case
whether as a shareholder, director, officer, manager, employee, agent or
otherwise) shall have any duty or obligation to affirmatively disclose to any
Participant or other Person, and none of the Participants or other Persons shall
have any right to be advised of, any material information regarding the
Corporation or otherwise at any time prior to, upon, or in connection with any
termination of his/her employment by the Corporation and its subsidiaries upon
the exercise of any Call Option or any purchase of the Subject Shares in
accordance with the terms hereof. 

(e)
The provisions of this
Section 4.7 shall expire on the occurrence of an Initial Public Offering or
Change of Control. 

4.8 
Discretion to Permit Exercise 

Notwithstanding the provisions of Sections 4.5 and 4.6, the
Board may, in its discretion, at any time prior to or following the events
contemplated in such sections and in any Option Agreement, permit the exercise
of any or all Options held by the Optionee in the manner and on the terms
authorized by the Board, provided that the Board will not, in any case,
authorize the exercise of an Option pursuant to this section beyond the
expiration of the Exercise Period of the particular Option. 

4.9 
Change of Control 

Except as otherwise set forth in any Option
Agreement, in the event of any Change of Control transaction in which there is
an acquiring or surviving entity, the Board may provide for substitute or
replacement options of similar value from, or the assumption of outstanding
Options by, the acquiring or surviving entity or one or more of its
subsidiaries, any such substitution, replacement or assumption to be on such
terms as the Board in good faith determines; provided, however, that in
the event of a Change of Control transaction the Board may take, as to any
outstanding Option, any one or more of the following actions: 

(a)
provide that any or all
Option shall thereupon terminate; provided that any such outstanding Options
that have vested shall remain exercisable until consummation of such Change of
Control; 

- 13 -

(b)
make any outstanding Option
exercisable in full. 

4.10
Shareholders Agreement 

Each Optionee must, at the time of exercising
an Option, sign and deliver a counterpart and acknowledgement to the
Shareholders Agreement (if such Optionee is not already a party thereto and if
such Shareholders Agreement is still in effect) in the form attached as Schedule
B to this Plan. Each Optionee acknowledges that the Shareholders Agreement
restricts transfers of Class B Shares.

4.11
Conditions of Exercise 

Each Optionee will, when requested by the
Corporation, sign and deliver all such documents relating to the granting or
exercise of Options which the Corporation deems necessary or desirable. 

ARTICLE 5 

SHARE CAPITAL ADJUSTMENTS 

5.1 
General 

The existence of any Options does not affect in any way the
right or power of the Corporation or its shareholders to make, authorize or
determine any adjustment, recapitalization, reorganization or any other change
in the Corporation's capital structure or its business, or any amalgamation,
combination, merger or consolidation involving the Corporation, to create or
issue any bonds, debentures, Common Shares or other securities of the
Corporation or to determine the rights and conditions attaching thereto, to
effect the dissolution or liquidation of the Corporation or any sale or transfer
of all or any part of its assets or business, or to effect any other corporate
act or proceeding, whether of a similar character or otherwise, whether or not
any such action referred to in this section would have an adverse effect on this
Plan or any Option granted hereunder. 

5.2 
Reorganization of Corporation's
Capital 

Should the Corporation effect a subdivision or consolidation
of Common Shares or any similar capital reorganization or a payment of a stock
dividend (other than a stock dividend that is in lieu of a cash dividend), or
should any other change be made in the capitalization of the Corporation that,
in the opinion of the Board, would warrant the replacement of any existing
Options in order to adjust: (a) the number of Common Shares that may be acquired
on the exercise of any outstanding Options; and/or (b) the Exercise Price of any
outstanding Options in order to preserve proportionately the rights and
obligations of the Optionees, the Board will authorize such steps to be taken as
may be equitable and appropriate to that end. 

5.3 
Other Events Affecting the
Corporation 

In the event of an amalgamation, combination, merger or other
reorganization involving the Corporation by exchange of Class B Shares, by sale
or lease of assets or otherwise, that, in the opinion of the Board, warrants the
replacement of any existing Options in order to adjust: (a) the number of Class
B Shares that may be acquired on the exercise of any outstanding Options; or (b)
the Exercise Price of any outstanding Options in order to preserve
proportionately the rights 

- 14 -

and obligations of the Optionees, the Board will authorize
such steps to be taken as may be equitable and appropriate to that end. 

5.4 
Immediate Exercise of Awards 

Where the Board determines that the steps provided in
Sections 5.2 and 5.3 would not preserve proportionately the rights and
obligations of the Optionees in the circumstances or otherwise determines that
it is appropriate, the Board may permit the immediate exercise of any
outstanding Options that are not otherwise exercisable. 

5.5 
Issue by Corporation of Additional
Shares 

Except as expressly provided in this Article 5, neither the
issue by the Corporation of shares of any class or securities convertible into
or exchangeable for shares of any class, nor the conversion or exchange of such
shares or securities, affects, and no adjustment by reason thereof is to be made
with respect to: (a) the number of Class B Shares that may be acquired on the
exercise of any outstanding Options; or (b) the Exercise Price of any
outstanding Options. 

5.6 
Fractions 

No fractional Class B Shares will be issued on the exercise
of an Option. Accordingly, if, as a result of any adjustment under Sections 5.2
to 5.4 inclusive, an Optionee would become entitled to a fractional Common
Share, the Optionee has the right to acquire only the adjusted number of full
Class B Shares and no payment or other adjustment will be made with respect to
the fractional Class B Shares so disregarded. 

5.7 
Conditions of Exercise 

The Plan and each Option are subject to the
requirement that if at any time the Board determines that the listing,
registration or qualification of the Class B Shares subject to such Option upon
any stock exchange or under any provincial, state or federal law, or the consent
or approval of any governmental body, stock exchange or of the holders of the
Class B Shares generally, is necessary or desirable, as a condition of, or in
connection with, the granting of such Option or the issue or purchase of Class B
Shares thereunder, no such Option may be granted or exercised in whole or in
part unless such listing, registration, qualification, consent or approval has
been effected or obtained free of any conditions not acceptable to the Board.
The Optionees shall, to the extent applicable, cooperate with the Corporation in
relation to such listing, registration, qualification, consent or other approval
and shall have no claim or cause of action against the Corporation or any of its
officers or directors as a result of any failure by the Corporation to obtain or
to take any steps to obtain any such registration, qualification or approval.

ARTICLE 6 

MISCELLANEOUS PROVISIONS 

6.1 
Legal Requirement 

The Corporation is not obligated to grant any Options, issue
any Class B Shares or other securities, make any payments or take any other
action if, in the opinion of the Board, in its sole discretion, such action
would constitute a violation by an Optionee or the Corporation of any 

- 15 -

provision of any applicable statutory or regulatory enactment
of any government or government agency. 

6.2 
Optionee's Entitlement 

Except as otherwise provided in this Plan, Options previously
granted under this Plan, whether or not then exercisable, are not affected by
any change in the relationship between, or ownership of, the Corporation and an
Affiliated company. For greater certainty, all Options remain valid and
exercisable in accordance with the terms and conditions of this Plan and are not
affected by reason only that, at any time, an Affiliated company ceases to be an
Affiliated company. 

6.3 
Withholding Taxes 

The exercise of each Option granted under this Plan is
subject to the condition that if at any time the Corporation determines, in its
discretion, that the satisfaction of withholding tax or other withholding
liabilities is necessary or desirable in respect of such exercise, such exercise
is not effective unless such withholding has been effected to the satisfaction
of the Corporation. In such circumstances, the Corporation may require that an
Optionee pay to the Corporation, in addition to and in the same manner as the
Exercise Price for the Class B Shares, such amount as the Corporation is obliged
to remit to the relevant taxing authority in respect of the exercise of the
Option. Any such additional payment is due no later than the date as of which
any amount with respect to the Option exercised first becomes includable in the
gross income of the Optionee for tax purposes. 

6.4 
Rights of Participant/Optionee

No Participant has any claim or right to be granted an Option
(including, without limitation, an Option granted in substitution for any Option
that has expired pursuant to the terms of this Plan), and the granting of any
Option is not to be construed as giving an Optionee a right to remain in the
employ of the Corporation or an Affiliated company. No Optionee has any rights
as a shareholder of the Corporation in respect of Common Shares issuable on the
exercise of rights to acquire Common Shares under any Option (including, without
limitation, the payment of dividends or other distributions) until the allotment
and issuance to the Optionee of certificates representing such Common Shares.
The loss of existing or potential profit in Options granted under this Plan
shall not constitute an element of damages in the event of termination of an
Optionee's employment or service in any office or otherwise. 

6.5 
Termination; Amendment 

(a)
The Plan will terminate and,
for greater certainty, all unexercised Options shall terminate and expire on the
date upon which no further Class B Shares remain available for issuance pursuant
to Options which may be granted under the Plan and no Options remain outstanding
unless renewed for such further period and upon such terms and conditions as the
Board may determine. 

(b)
The Board may, without
notice, at any time or from time to time, amend, suspend or terminate this Plan
or any provisions hereof in such respects as it, in its sole discretion,
determines appropriate. No such amendment, suspension or termination of this
Plan, without the consent of any Optionee or the 

- 16 -

representatives of his
or her estate, as applicable, alters or impairs any rights or obligations
arising from any Option previously granted to an Optionee under this Plan.

6.6 
Indemnification 

Every Director will at all times be indemnified and saved
harmless by the Corporation from and against all costs, charges and expenses
whatsoever including any income tax liability arising from any such
indemnification, that such Director may sustain or incur by reason of any
action, suit or proceeding, taken or threatened against the Director, otherwise
than by the Corporation, for or in respect of any act done or omitted by the
Director in respect of this Plan, such costs, charges and expenses to include
any amount paid to settle such action, suit or proceeding or in satisfaction of
any judgement rendered therein. 

6.7 
Participation in the Plan 

The participation of any Participant in the Plan is entirely
voluntary and not obligatory and shall not be interpreted as conferring upon
such Participant any rights or privileges other than those rights and privileges
expressly provided in the Plan. In particular, participation in the Plan does
not constitute a condition of employment nor a commitment on the part of the
Corporation to ensure the continued employment of such Participant. The Plan
does not provide any guarantee against any loss which may result from
fluctuations in the market value of the Class B Shares. The Corporation does not
assume responsibility for the income or other tax consequences for the
Participants and they are advised to consult with their own tax advisors. 

6.8 
Effective Date 

This Plan becomes effective on a date to be determined by the Board. 

6.9 
Language 

The parties have expressly requested that this
Plan and all related documents be drafted in English only. 
Les parties ont expressément requis que
ce regime et tous les documents qui s'y rattachent soient rédigés en anglais
seulement. 

6.10
Governing Law 

This Plan is created under and is to be governed, construed and administered
in accordance with the laws of the Province of Quebec and the laws of Canada
applicable therein. 

SCHEDULE A 

Stock Option Plan Exercise Notice Form -
Options 

I, ____________________________, hereby exercise the option
(print name) to purchase
__________________Class B Shares of 
 _______________(the "Corporation") at a purchase price of $
___________per Common Share. This Exercise Notice is delivered in respect of the
option to purchase _______________Class B Shares of the Corporation that was
granted to me on _________________pursuant to the Option Agreement entered into
between the Corporation and me. In connection with the foregoing, I enclose
cash, a certified cheque, bank draft or money order payable to the Corporation
in the amount of $________________ as full payment for the Class B Shares to be
received upon exercise of the Option. 

 

	_______________________________	_______________________________
	Date	Optionee's Signature

SCHEDULE B 

Form of Counterpart and Acknowledgement 

  Acknowledgement and Counterpart to the
  Shareholders Agreement between dated as of December 18, 2003, among J.A.
  Bombardier (J.A.B.) Inc. (the "Corporation"), Bombardier Recreational Products
  Inc., and shareholders of the Corporation, as the same may be amended,
  restated or replaced (the "Agreement"). 

The undersigned agrees to be bound, at the
time he or she acquires shares of the Corporation, by all the provisions of the
Agreement including, without limitation, all covenants, agreements, obligations,
representations and warranties made by a Manager in the Agreement and will be
entitled to all the benefits and entitlements of a Manager under the Agreement,
except as otherwise set out therein, and the Agreement will apply to the
undersigned mutatis
mutandis without further action by the undersigned or any party thereto.
This Option and any securities issued upon exercise of this Option constitute
Management Shares as defined in the Agreement. The undersigned confirms that he
or she has received a copy of the Agreement or have been given the opportunity
to review the Agreement, and has obtained, or has had the opportunity to obtain,
independent legal advice prior to entering into this agreement and
acknowledgement. (DATED
this __________ day of _________________, _______. 

	_____________________________	_____________________________
	Witness:	Optionee:

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