Document:

exv10w2

 

EXHIBIT 10.2

RESTATED EXECUTIVE INVESTMENT

SHARE PURCHASE PLAN

COTT CORPORATION

EXECUTIVE INVESTMENT SHARE PURCHASE PLAN

(2007 RESTATEMENT)

ARTICLE I

INTRODUCTION

1.1     Purpose and Restatement Effective Date. The Company previously established the Plan,
effective as of the Effective Date, for the purpose of rewarding Eligible Employees of Cott
Corporation and its affiliates who achieve their respective Annual Performance Targets. The Plan is
hereby amended and restated in its entirety as of the Restatement Effective Date. The Plan, as
amended and restated herein, shall only apply to Benefit Amounts granted for Fiscal Years beginning
on or after the Restatement Effective Date.

1.2     Shareholder Approval. Notwithstanding Section 1.1, the amended and restated Plan shall
not be deemed effective unless it is approved by a majority of the Company’s shareholders at the
Company’s next annual shareholder meeting held after the Restatement Effective Date.

1.3     Formula Plan. The Plan is intended as a “formula plan” within the meaning of the NYSE
shareholder approval rules that were approved by the Securities and Exchange Commission on June 30,
2003, and contains an evergreen formula for annual increases in the total number of Common Shares
that can be purchased for Benefiting Active Participants if they achieve subsequent years’ Annual
Performance Targets.

1.4     Plan Document. Each new Active Participant shall be given a copy of the Plan document.
Thereafter, Participants may request a copy of the Plan document and any amendments thereto from
the Committee.

ARTICLE II

DEFINITIONS

     The following capitalized terms shall have the meanings set forth in this Article II. Any use
of the singular shall include the plural and the plural the singular, as applicable to the context
in which the terms are used.

2.1     “Account” means, with respect to a Benefiting Active Participant, the account
established by the Trustee to record the number of Common Share Units and amount of cash credited
to such Benefiting Active Participant for a Fiscal Year pursuant to Sections 4.5 and 6.1.
Notwithstanding anything contained herein to the contrary, a Participant shall have no right to the
Common Shares Units or cash credited to his or her Account until such Common Shares Units or cash
are distributed to him or her pursuant to the provisions of Article VII or Article VIII hereof,
respectively.

2.2     “Active Participant” means an Eligible Employee who has been designated by the
Committee as eligible to participate in the Plan for the Fiscal Year.

2.3     “Annual Performance Targets” means, with respect to each Fiscal Year, the performance
targets established by the Committee for an Eligible Employee, which targets shall be established
in writing by the Committee within the first 90 days of such Fiscal Year.

2.4     “Benefit Amount” means the amount (stated in terms of Canadian dollars) determined by
the Committee, in its sole discretion, as the benefit granted under the Plan to a Benefiting Active
Participant for a Fiscal Year.

2.5     “Benefiting Active Participant” means, with respect to a Fiscal Year, an Active
Participant who remains employed by an Employer as of such Fiscal Year End.

2.6     “Board” means the Board of Directors of the Company.

 

 

2.7     “Canadian Participant” means a Participant who is taxable under the laws of Canada.

2.8     “Change of Control” means: (i) a consolidation, merger or amalgamation of the Company
with or into any other corporation whereby the voting shareholders of the Company immediately prior
to such event receive less than 50% of the voting shares of the consolidated, merged or amalgamated
corporation; (ii) a sale by the Company of all or substantially all of the Company’s undertakings
and assets; or (iii) a proposal by or with respect to the Company being made in connection with a
liquidation, dissolution or winding-up of the Company. Notwithstanding the foregoing, with respect
to U.S. Participants, an event shall not constitute a “change in control” unless the event
constitutes a “change in control event” within the meaning of proposed or final regulations issued
by the United States Department of Treasury under Code Section 409A.

2.9     “Code” means the United States Internal Revenue Code of 1986, as amended.

2.10     “Committee” means the Human Resources and Compensation Committee of the Board.

2.11     “Common Share Unit” means a unit representing the right to receive one Common Share.

2.12     “Common Shares” means the common shares in the capital of the Company.

2.13     “Company” means Cott Corporation, a corporation amalgamated under the laws of Canada.

2.14     “CSU Account” means the portion of a Participants’ Account attributable to Fiscal Year
CSU Contributions.

2.15     “Deferred Cash Account” means, in respect of Canadian Participants only, the portion
of such Participant’s Account attributable to Fiscal Year Cash Contributions.

2.16     “Distribution Event” means the earliest of (i) a Participant’s death, Permanent
Disability, Normal Retirement or termination of employment (whether for cause or without cause),
(ii) a Change of Control, or (iii) the prior occurrence of an Unforeseeable Emergency.

2.17     “Distribution Date” means, in respect of any Common Share Unit, the last business day
of the third Fiscal Year following the Fiscal Year in respect of which such Common Share Unit was
earned.

2.18     “EISP Custodial Fund” means the trust fund established under the EISP Custodial Trust
Agreement.

2.19     “EISP Custodial Trust Agreement” means the agreement, as amended and restated
effective January 4, 2004 (formerly known as the Employee Savings Plan Trust Agreement that was
originally effective January 2, 2002), by and among the Company, the Trustee and the Agent (as
defined therein) pursuant to which Common Shares and any income attributable thereto are held by
the Trustee.

2.20     “EISP Fund” means the trust fund established under the Executive Investment Share
Purchase Plan Trust Agreement, which for purposes of the Plan constitutes an “Employee Benefit
Plan” as defined under the Tax Act.

2.21     “Effective Date” means January 4, 2004.

2.22     “Eligible Employee” means an Employee who is among a select group of management
Employees and who is designated by the Employer in its sole discretion as eligible to participate
in the Plan.

2.23     “Employee” means a full-time or part-time employee of an Employer.

2.24     “Employer” means the Company, Cott Beverages Inc., Cott Beverages Limited and any
other affiliate designated as an Employer by the Committee.

2.25     “Executive Investment Share Purchase Plan Trust Agreement” means the agreement
effective January 4, 2004, by and among the Company, the Trustee and the Agent (as defined therein)
to carry out the purposes of the

 

 

Plan in respect of Common Shares purchased by the Trustee and any income attributable thereto in
accordance with the terms of the Plan.

2.26     “Fiscal Year” means the 12-month period beginning the first Sunday following the
Saturday that was the last Saturday in December and ending on the Fiscal Year End.

2.27     “Fiscal Year Cash Contribution” means, in respect of Canadian Participants only, that
portion of a Canadian Benefiting Active Participant’s Benefit Amount that such Benefiting Active
Participant has elected to have contributed for a Fiscal Year to the EISP Fund in the form of cash.

2.28     “Fiscal Year Contribution” means the sum of a Benefiting Active Participant’s Fiscal
Year Cash Contribution and Fiscal Year CSU Contribution for a Fiscal Year.

2.29     “Fiscal Year CSU Contribution” means the portion of the Benefit Amount that a
Benefiting Active Participant has elected to have contributed for a Fiscal Year to the EISP Fund in
the form of Common Share Units.

2.30     “Fiscal Year End” means, with respect to each Fiscal Year, the last Saturday in
December of a calendar year, or such other date as determined by the Board.

2.31     “Matching Shares” means Common Shares contributed by the Company to a Participant’s
account under the EISP Custodial Fund in accordance with the terms of this Plan.

2.32     “Normal Retirement” means retirement from office or employment with an Employer (at
the election of the Employee and as agreed to by the Employer) coincident with or following the
Employee’s attainment of age 55.

2.33     “NYSE” means the New York Stock Exchange.

2.34     “Participant” means any current Employee, Active Participant or Terminated Participant
who has an Account under the Plan.

2.35     “Performance Cycle” means a three-Fiscal Year period, commencing the first day of each
Fiscal Year, over which performance is measured for the purpose of determining a Participant’s
eligibility to earn any Matching Shares.

2.36     “Performance Goals” shall mean the criteria and objectives determined by the Committee
in its discretion pursuant to the Plan, which shall be satisfied or met during the applicable
Performance Cycle as a condition precedent to a Participant earning Matching Shares. Such criteria
and objectives may include earnings before interest and taxes; earnings before interest, taxes,
depreciation and amortization; operating income; net operating income after tax; pre-tax or
after-tax income; cash flow; net earnings; earnings per share; share price performance; return on
assets; return on equity; return on invested capital; tangible net asset growth; any combination of
the foregoing; or any other financial criteria and objectives determined by the Committee in its
discretion.

2.37     “Permanent Disability” means the complete and permanent incapacity of a Participant,
as determined by a licensed medical practitioner approved by the Committee, due to a medically
determinable physical or mental impairment which prevents such Participant from performing
substantially all of the essential duties of his or her office or employment. Notwithstanding the
foregoing, a U.S. Participant will not be considered to have suffered a Permanent Disability unless
the U.S. Participant is determined to be “disabled” within the meaning of Code Section
409A(a)(2)(C).

2.38     “Plan” means the Cott Corporation Executive Investment Share Purchase Plan, as amended
and restated herein and as subsequently amended from time to time.

2.39     “Prevailing Market Price” means the price at which the Trustee can purchase Common
Shares on the Toronto Stock Exchange on any date of purchase.

2.40     “Restatement Effective Date” means December 31, 2006.

 

 

2.41     “Tax Act” means the Income Tax Act (Canada) and all regulations and policies made
thereunder, as amended or restated from time to time. Any reference in the Agreement to a provision
of the Tax Act includes any successor provision thereto.

2.42     “Term” means the ten-year period beginning on the Effective Date and ending on the
Fiscal Year End of the 10th year.

2.43     “Terminated Participant” means a Participant who has incurred a Termination Date and
shall include, where the context requires, the personal representative(s) of a Participant.

2.44     “Termination Date” means the Participant’s last day of active service with his or her
Employer (determined without regard to any notice of termination owing pursuant to statute,
regulation, agreement or common law).

2.45     “Trust Agreements” means, collectively, the Executive Investment Share Purchase Plan
Trust Agreement and the EISP Custodial Trust Agreement.

2.46     “Trustee” means the trustee to be appointed under the Trust Agreements.

2.47     “U.S. Participant” means a Participant who is taxable under the laws of the United States.

2.48     “Unforeseeable Emergency” shall have the meaning set forth in Code Section 409A(a)(2)(B)(ii).

ARTICLE III

PARTICIPATION

3.1     Enrolment for Fiscal Year. Active Participants for a Fiscal Year who were Eligible
Employees on or before the immediately preceding Fiscal Year End shall be automatically enrolled in
the Plan effective as of the first day of such Fiscal Year. Eligible Employees who are designated
as Active Participants for a Fiscal Year following the first day of such Fiscal Year shall be
automatically enrolled in the Plan as of the date of such designation.

3.2     Annual Performance Targets. No later than 90 days following the commencement of a
Fiscal Year, each Active Participant will be informed of his or her Annual Performance Targets for
such Fiscal Year.

3.3     Active Participant Elections.

	 	(a)	 	On or before (i) the last day of the preceding Fiscal Year, if the Benefit
Amount does not qualify as “performance-based compensation” (within the meaning of Code
Section 409A(a)(4)(B)(iii)), or (ii) the date that is six (6) months before the end of
a Fiscal Year, if the Benefit Amount does qualify as performance-based compensation (or
such later date as the Company may determine for Active Participants other than U.S.
Participants), each Active Participant must irrevocably elect, on a form provided by
the Company, to have all or a portion of any Benefit Amount to which he or she becomes
entitled for such Fiscal Year (i) contributed to the EISP Fund and credited to his or
her Account as a Fiscal Year Contribution; or (ii) paid to him or her in the form of
cash following the end of the Fiscal Year. An Active Participant who fails to make the
election required by this Section 3.3 shall be deemed to have elected to have his or
her entire Benefit Amount paid to him or her in the form of cash following the end of
the Fiscal Year.
	 
	 	(b)	 	Canadian Participants shall also be required to allocate any Fiscal Year
Contribution to which he or she becomes entitled for a Fiscal Year between a Fiscal
Year Cash Contribution and a Fiscal Year CSU Contribution and shall notify the Company
of such allocation during the 20-day period following the Fiscal Year End of such
Fiscal Year.

ARTICLE IV

OPERATION OF THE PLAN

4.1     Determination of Benefits. Within 120 days after each Fiscal Year End, the Committee
shall determine in respect of such Fiscal Year:

 

 

(a)     the Benefiting Active Participants;

(b)     the Benefit Amount to be awarded to each Benefiting Active Participant for such Fiscal
Year;

(c)     the amount of each Benefiting Active Participant’s Benefit Amount, if any, that the
Benefiting Active Participant has elected to have contributed to the EISP Fund as a Fiscal
Year CSU Contribution pursuant to Section 3.3;

(d)     in respect of Canadian Participants only, the amount of each Canadian Benefiting Active
Participant’s Benefit Amount, if any, that the Benefiting Active Participant has elected to
have contributed to the EISP Fund as a Fiscal Year Cash Contribution pursuant to Section
3.3(b); and

(e)     the amount of each Benefiting Active Participants’ Benefit Amount, if any, that the
Benefiting Active Participant has elected to receive as an immediate cash distribution
pursuant to Section 3.3.

4.2     Performance Goals. Within the first 89 days of each Performance Cycle, the Committee
shall, in its discretion, (i) establish in writing for such Performance Cycle the specific
Performance Goals as the Committee believes are relevant to the Company’s overall business
objectives and that are to be attained in order to earn Matching Shares for such Performance Cycle;
and (ii) instruct senior People management to notify each Participant in writing of the established
Performance Goals for such Performance Cycle.

4.3     Contribution to EISP Fund. No later than 30 days following the determinations by the
Committee under Section 4.1, the Company shall:

(a)     either contribute the aggregate Fiscal Year Contributions to the EISP Fund and seek
reimbursement from the other participating Employers, or cause each Employer to contribute
its respective share of such Fiscal Year Contributions to the EISP Fund, such share
representing the portion of such Fiscal Year Contributions attributable to the Employer’s
Benefiting Active Participants for such Fiscal Year; and

(b)     forward to the Trustee a list of the Benefiting Active Participants, their respective
Fiscal Year Contributions determined under Section 4.1(c) and the amount, if any, to be
credited to their respective CSU Accounts and Deferred Cash Accounts.

4.4     Purchase of Common Shares.

(a)     Common Shares Purchased for Fiscal Year: As soon as practicable after the aggregate
Fiscal Year CSU Contributions are contributed to the EISP Fund, the Trustee shall purchase
the maximum number of Common Shares that can be purchased on the Toronto Stock Exchange with
such Fiscal Year CSU Contributions at the Prevailing Market Price.

(b)     Maximum Number of Common Shares for Fiscal Year: Notwithstanding the foregoing, in no
event shall the number of Common Shares purchased under the Plan with respect to a Fiscal
Year exceed the maximum number of Common Shares that could be purchased under the Plan for
the immediately preceding Fiscal Year plus 1.5% of the total number of Common Shares
outstanding as of the first day of such Fiscal Year.

(c)     Applicable Law. The purchase of Common Shares by the Trustee shall at all times and in
all respects comply with all applicable law, including, without limitation, the rules,
regulations and by-laws of the Toronto Stock Exchange, and the policies and regulations of
applicable securities regulatory authorities.

4.5     Crediting of Common Share Units to Participants’ Accounts. As soon as practicable after
the completion of the purchase of Common Shares pursuant to Section 4.4(a) above, the Trustee shall
credit each Benefiting Active Participant’s CSU Account with that number of Common Share Units
equal to the quotient obtained by dividing such Benefiting Active Participant’s Fiscal Year CSU
Contribution by the average per Common Share price at which such Common Shares were purchased by
the Trustee.

 

 

4.6     Distributions of Non-Deferred Benefit Amounts. If a Benefiting Active Participant has
elected to receive all or a portion of his or her Benefit Amount in the form of an immediate cash
distribution pursuant to Section 3.3, the Committee shall distribute such amount to the Benefiting
Active Participant as soon as practicable following the determination of the Benefiting Active
Participant’s Benefit Amount by the Committee.

4.7     Return of Fiscal Year Contributions. If a Fiscal Year CSU Contribution or Fiscal Year
Cash Contribution is made to a Participant’s Account under a mistake of fact (to include, without
limitation, the fact whether shareholder approval as required by Section 1.2 has been properly
obtained), the amount of such contribution due solely to such mistake of fact shall be returned to
the contributing Employer before the end of the Fiscal Year in which it was made, and the
Participant’s Account shall be adjusted accordingly.

ARTICLE V

VESTING OF COMMON SHARE UNITS

5.1     Full Vesting. Common Share Units allocated to a Benefiting Active Participant’s Account
shall be fully vested and nonforfeitable at all times; provided, however, that Benefiting Active
Participants shall not be entitled to receive payment of such Common Share Units except in
accordance with Article VII.

ARTICLE VI

ALLOCATION AND VESTING OF FISCAL YEAR CASH CONTRIBUTIONS

6.1     Allocation of Fiscal Year Cash Contributions. Following receipt of the Fiscal Year Cash
Contributions made pursuant to Section 4.1(d), the Trustee shall allocate to the Deferred Cash
Account of each Canadian Benefiting Active Participant the amount, if any, of each such Canadian
Benefiting Active Participant’s Benefit Amount for such Fiscal Year that such Canadian Benefiting
Active Participant elected to have contributed to the EISP Fund as a Fiscal Year Cash Contribution
pursuant to Section 3.3(b).

6.2     Full Vesting. Amounts allocated to a Canadian Benefiting Active Participant’s Deferred
Cash Account shall be fully vested and nonforfeitable at all times; provided, however, that
Canadian Benefiting Active Participants shall not be entitled to receive payment of such amounts
except in accordance with Article VIII.

6.3     No Earnings Credited. No interest or other earnings shall be credited to Deferred Cash
Accounts.

ARTICLE VII

DISTRIBUTIONS FROM CSU ACCOUNTS

7.1     Payment for Common Share Units.

(a)     Subject to Section 7.6 with respect to certain U.S. Participants, on the Distribution
Date or upon a prior Distribution Event, a Benefiting Active Participant shall have that
number of Common Shares equal to the number of Common Share Units applicable to such
Distribution Date allocated to his or her CSU Account distributed from the EISP Fund,
registered in the Participant’s name and transferred to the Participant’s account under the
EISP Custodial Fund.

(b)     Until distributed to the Participant, the Trustee shall hold all such Common Shares in
accordance with the terms of the EISP Custodial Trust Agreement.

7.2     Matching Shares.

(a)     Upon completion of the Performance Cycle, the Committee shall certify in writing whether
the Performance Goals for such Performance Cycle were attained.

(b)     Subject to Section 7.2(c), if: (i) the Participant has not received a distribution of
Common Share Units from his or her Account prior to the Distribution Date applicable to such
Common Share Units and has been an Employee from the date such Common Share Units were
credited to such Participant’s CSU Account up to and including such Distribution Date; and
(ii) the Committee has certified that the Performance Goals for the Performance Cycle ending
on the most recent Fiscal Year End have been

 

 

attained, the Company shall contribute an equal number of Matching Shares to the
Participant’s account under the EISP Custodial Fund. Any contribution of Matching Shares in
respect of a Performance Cycle under this Section 7.2(b) shall be made within 60 days
following the last day of such Performance Cycle.

(c)     Unless otherwise determined by the Committee, in its sole discretion, failure to attain
the Performance Goals for a Performance Cycle shall result in the failure to earn any of the
Matching Shares eligible to be earned in respect of such Performance Cycle. In the event of
a Distribution Event prior to the completion of a Performance Cycle, the Committee shall
have the discretion to contribute to a Participant’s account under the EISP Custodial Fund
all of the Matching Shares eligible to be contributed to such account in respect of such
Performance Cycle, or such lesser number of Matching Shares (including zero) as the
Committee may determine in its discretion.

7.3     Withdrawal of Common Shares. A Participant may, at any time and from time to time, by a
written notice to the Company in the form approved by the Committee, request, subject to Section
7.5, the delivery to him or her of the certificates representing all or a portion of the Common
Shares held in the Participant’s EISP Custodial Fund account.

7.4     Payout of EISP Custodial Account at Termination. A Terminated Participant must deliver
written direction, in the manner prescribed by the Committee, to the Committee within ninety (90)
days following his or her Termination Date to request delivery to him or her of share certificates
evidencing all such Common Shares. If a Terminated Participant fails to deliver such written
direction to the Committee within said ninety (90)-day period, the Committee, subject to Section
7.5, shall instruct the Trustee to deliver to the Terminated Participant the share certificates
evidencing all of the Common Shares credited to the Terminated Participant’s account as of the
Termination Date.

7.5     No Partial Shares. Only certificates representing whole Common Shares shall be
delivered under Sections 7.3 and 7.4. If a Participant is entitled to a fraction of a Common Share,
such entitlement shall be satisfied by payment of the cash equivalent of such fraction, determined
in accordance with Section 7.2.

7.6     Delayed Distribution to Certain U.S. Participants. Notwithstanding any provision herein
to the contrary, if a U.S. Participant is a “specified employee” (within the meaning of Code
Section 409A(a)(2)(B)(i) and the proposed or final regulations issued by the United States Treasury
Department thereunder), no distribution of Common Share Units may be made with respect to such U.S.
Participant pursuant to Section 7.1(a), before the date that is six (6) months after the date on
which such U.S. Participant “separated from service” (within the meaning of Code Section
409A(a)(2)(A)(i)) from his or her Employer for reasons other than death.

ARTICLE VIII

DISTRIBUTIONS FROM DEFERRED CASH ACCOUNTS

8.1     Distribution Date. If a Canadian Benefiting Active Participant elects pursuant to
Section 3.3(b) to have all or a portion of his or her Benefit Amount contributed to the EISP Fund
as a Fiscal Year Cash Contribution, such Benefit Amount (less tax withholding) shall be distributed
to the Benefiting Active Participant on the last business day of the third Fiscal Year following
the Fiscal Year in respect of which such Benefit Amount was earned. Subject to Section 8.2, a
Benefiting Active Participant shall not be entitled to distribution of his or her Deferred Cash
Account prior to the last business day such Fiscal Year.

8.2     Accelerated Distribution. Notwithstanding the provisions of Section 8.1, upon the
occurrence of a Distribution Event, the portion of a Canadian Participant’s Benefit Amount held in
his or her Deferred Cash Account (less tax withholding) shall be distributed to the Canadian
Participant within 90 days of such event but in no event later than the last business day of the
third Fiscal Year following the Fiscal Year in respect of which such Benefit Amount was earned.

ARTICLE IX

TAX MATTERS

9.1     Obligation to Withhold. If, for any reason whatsoever, the Trustee and/or an Employer
becomes obligated to withhold and/or remit to any applicable tax authority (whether domestic or
foreign) any amount in connection

 

 

with this Plan in respect of a Participant, then the Trustee or the Employer, as the case may be,
shall provide written notice of such obligation to the Participant and shall make the necessary
arrangements, as acceptable to the Trustee or the Employer, in connection with the amount which
must be withheld and/or remitted.

9.2     UK Taxation. If, for any reason whatsoever, the Trustee and/or an Employer becomes
obligated to make any tax payment or primary Class 1 national insurance contribution in the United
Kingdom, in either case in respect of the acquisition of Common Shares by a Participant pursuant to
this Plan or otherwise in relation to the Common Shares so acquired or in respect of amounts
payable or attributed to a Participant in accordance with this Plan (the “UK Tax Liability”), then,
by virtue of his or her participation in the Plan, each Participant acknowledges that the Trustee
and/or the Employer shall be entitled to recover all such amounts from the Participant by
deduction, withholding or by any other means whatsoever. For the avoidance of doubt, the Company,
another Employer (or an agent instructed by the Company or such other Employer) or the Trustee
shall be entitled to retain, out of the aggregate number of Common Shares to which the Participant
would otherwise be entitled pursuant to the Plan, and sell as agent for the Participant such number
of Common Shares as in the opinion of the Company or such other Employer will realise an amount
equivalent to the UK Tax Liability and to pay such proceeds to the appropriate Employer to
reimburse it for the UK Tax Liability. The Company may also require a Participant to enter into a
written agreement providing for the recovery of employer’s national insurance contributions from
the Participant in respect of the acquisition of Common Shares by the Participant pursuant to the
Plan.

ARTICLE X

AMENDMENT, TERMINATION AND ADMINISTRATION

10.1     Right to Amend and Terminate.

(a)     General Right. Except as restricted by Section 10.2: (i) the Committee or the
Board may amend any provisions of the Plan or Trust Agreements at any time, and (ii) the
Committee or Board may terminate the Plan at any time prior to expiration of the Term.

(b)     No Shareholder Approval. Notwithstanding Section 10.1(a), in the event
shareholder approval is not obtained as required by Section 1.2 the Plan shall be deemed
null and void as of the date of the Company’s annual shareholder meeting described in
Section 1.2.

10.2     Restrictions. Notwithstanding Section 10.1(a), no amendment or termination of the Plan
shall divest any Participant of his or her existing rights under the Plan with respect to the
Common Shares Units allocated or allocable to his or her accounts without the prior written consent
of the Participant. No amendment of the Plan or Trust Agreements shall affect the rights and duties
of the Trustee without its prior written consent. Upon the termination of the Plan, no distribution
may be made to any U.S. Participant except as permitted by Code Section 409A and the proposed or
final regulations issued by the United States Treasury Department thereunder.

10.3     Plan Administration. The Committee or the Board may by resolution make, amend, or
repeal at any time and from time to time such rules or regulations not inconsistent herewith as it
may deem necessary or advisable for the proper administration and operation of this Plan. In
particular, the Board may delegate to any officers of an Employer such administrative duties and
powers as it may see fit with respect to this Plan.

10.4     Plan Interpretation. Any questions of interpretation of the Plan will be submitted to
the Committee for resolution. Any resolution of such a question of interpretation of the Plan by
the Committee shall be final in all respects, and in particular, shall not be subject to any
appeals whatsoever.

10.5     Authorized Officers. Two officers of the Company, one of whom must be the Chief
Executive Officer, the Chief Financial Officer, the Chief People Officer, or the Chief Legal
Officer, are hereby authorized to sign and execute all instruments and documents and do all things
necessary or desirable for carrying out the provisions of the Plan and Trust Agreements. The
Trustee shall be entitled to rely on a certificate of any one of the Chief Executive Officer, the
Chief Financial Officer, the Chief People Officer or the Chief Legal Officer as to any of the
following matters:

(a)     the date an Active Participant commences participation in the Plan;

 

 

(b)     a Participant’s Termination Date; and

(c)     the date of death, Normal Retirement, or Permanent Disability of any Participant.

ARTICLE XI

GENERAL

11.1     Governing Law. The Plan and the Trust Agreements are established under the laws of the
Province of Ontario and the rights of all parties and the construction and effect of each and every
provision of this Plan and the Trust Agreements shall be according to the laws of the Province of
Ontario and the laws of Canada applicable therein.

11.2     Binding and Assignment. This Plan and the Trust Agreements shall inure to the benefit
of and be binding upon Cott, its successors and assigns. The interest hereunder of any Participant
shall not be transferable or alienable by such Participant either by assignment or in any other
manner whatsoever and, during his or her lifetime, shall be vested only in him or her, but, upon
such Participant’s death, shall inure to the benefit of and be binding upon the personal
representatives of the Participant, except as otherwise provided by applicable law.

11.3     Plan Non-Contractual.

(a)     No Employment Rights. Nothing contained in this Plan shall be construed as
promise to any person of continued employment with an Employer, and nothing contained in
this Plan shall be construed as an agreement or commitment on the part of an Employer to
continue the employment or the rate of compensation of any person for any period. Following
the Effective Date, all Employees of an Employer shall remain subject to discharge to the
same extent as if the Plan had never been put into effect.

(b)     No Rights Absent Shareholder Approval. In the event it is deemed that the Plan
is not effective and nullified pursuant to Sections 1.2 and 10.1, each Active Participant
shall thereupon be deemed to have a zero dollar ($0.00) Benefit Amount and to have no
existing rights under the Plan.

11.4     Account Statements. A Participant will be provided with a summary of his or her
accounts under the Plan at least as frequently as annually.exv4w1

 

Exhibit 4.1

SECOND SUPPLEMENTAL INDENTURE

          SECOND SUPPLEMENTAL INDENTURE, dated as of May 5, 2007, between Crum & Forster Holdings Corp.,
a Delaware corporation (the “Company”), and The Bank of New York, as trustee under the
Indenture referred to below (the “Trustee”).

W I T N E S S E T H :

          WHEREAS, the Company and the Trustee heretofore executed and delivered an Indenture, dated as
of June 5, 2003, as amended by a First Supplemental Indenture dated as of June 30, 2003 (the
“Indenture”), providing for the issuance of the 10 3/8% Senior Notes due 2013 (the
“Notes”) of the Company (capitalized terms used herein but not otherwise defined have the
meanings ascribed thereto in the Indenture);

          WHEREAS, Section 9.2 of the Indenture provides that the Company and the Trustee may amend or
supplement the Indenture with the consent of the Holders of at least a majority in principal amount
of the Notes then outstanding;

          WHEREAS, the Company desires to amend certain provisions of the Indenture, as set forth in
Article I hereof;

          WHEREAS, the Holders of at least a majority in principal amount of the Notes outstanding have
consented to the amendments effected by this Second Supplemental Indenture; and

          WHEREAS, this Second Supplemental Indenture has been duly authorized by all necessary
corporate action on the part of each of the Company and the Trustee;

          WHEREAS, all other acts and proceedings required by law and by the Indenture to make this
Second Supplemental Indenture a valid and binding agreement for the purposes expressed herein, in
accordance with its terms, have been done and performed;

          NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Company and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders as follows:

 

 

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ARTICLE I

Amendments to the Indenture

          Section 1.1 Amendments to Articles One, Four, Five, Six and Eight.

          (a) Section 4.3 (Reports) shall be deleted in its entirety and shall be replaced with
the following:

          “The Issuer shall comply with Section 314(a)(1) of the TIA.”

          (b) Section 4.4 (Compliance Certificate) shall be deleted in its entirety and shall be
replaced with the following:

          “The Issuers and the Guarantors shall comply with Section 314(a)(4) of the TIA.”

     (c) the Company shall be released from its obligations under the following sections of
the Indenture, each of which shall be deleted in its entirety and shall be replaced with
“[intentionally omitted]”: Section 4.5 (Taxes); Section 4.6 (Stay, Extension and Usury
Laws); Section 4.7 (Limitation on Restricted Payments); Section 4.8 (Limitation on Dividend
and Other Payment Restrictions Affecting Subsidiaries); Section 4.9 (Limitation on
Incurrence of Additional Indebtedness); Section 4.10 (Limitation on Asset Sales); Section
4.11 (Limitation on Transactions with Affiliates); Section 4.12 (Limitation on Liens);
Section 4.13 (Maintenance of Corporate Separateness); Section 4.14 (Offer to Repurchase Upon
Change of Control); Section 4.15 (Payments for Consent); Section 4.16 (Limitation on
Preferred Stock of Restricted Subsidiaries and Common Stock of Insurance Subsidiaries);
Section 4.17 (Conduct of Business);

     (d) Section 5.1 (Merger, Consolidation, or Sale of Assets) shall be amended by deleting
in its entirety each of clauses (2) and (3) of the first paragraph and the second, fifth and
sixth paragraphs;

     (e) Section 6.1 (Events of Default) shall be amended by deleting all references to
“Significant Subsidiary” and by deleting in its entirety each of clauses (d) and (e);

     (f) Section 8.4 (Conditions to Legal or Covenant Defeasance) shall be amended by
deleting in its entirety each of clauses (4) and (5);

 

 

-3-

     (g) failure to comply with the terms of any of the covenants or provisions of the
Indenture deleted hereby shall no longer constitute a default or an Event of Default under the Indenture and shall no longer have any other consequence under the
Indenture; and

     (h) all definitions set forth in Section 1.1 of the Indenture that relate to defined
terms used solely in covenants or sections deleted hereby are deleted in their entirety.

ARTICLE II

Miscellaneous

          Section 2.1 Effectiveness of Second Supplemental Indenture. This Second Supplemental
Indenture shall become effective as of 12:01 a.m. on the date set forth in the first paragraph
hereof upon the execution and delivery of this Second Supplemental Indenture by the Company and the
Trustee in accordance with the provisions of Sections 9.2 and 9.6 of the Indenture. From and after
the effective time of this Second Supplemental Indenture, the Indenture shall be amended and
supplemented in accordance herewith, and this Second Supplemental Indenture shall form a part of
the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and
delivered under the Indenture shall be bound hereby and thereby. Prior to May 7, 2007, the Company
may terminate this Second Supplemental Indenture upon written notice to the Trustee (it being
understood that the Company, subsequent thereto, will enter into a substitute supplemental
indenture).

          Section 2.2 Indenture Remains in Full Force and Effect. Except as supplemented or
amended hereby, all provisions in the Indenture shall remain in full force and effect.

          Section 2.3 Indenture and Second Supplemental Indenture Construed Together. This
Second Supplemental Indenture is an indenture supplemental to the Indenture, and the Indenture and
this Second Supplemental Indenture shall henceforth be read and construed together.

          Section 2.4 Confirmation and Preservation of Indenture. The Indenture as supplemented
or amended by this Second Supplemental Indenture is in all respects confirmed and preserved.

          Section 2.5 Conflict with Trust Indenture Act. If any provision of this Second
Supplemental Indenture limits, qualifies or conflicts with any provision of the TIA that is
required under the TIA to be part of and govern any provision of this Second Supplemental
Indenture, the provision of the TIA shall control. If any provision of this

 

 

-4-

Second Supplemental Indenture modifies or excludes any provision of the TIA that may be so
modified or excluded, the provision of the TIA shall be deemed to apply to the Indenture as so
modified or to be excluded by this Second Supplemental Indenture, as the case may be.

          Section 2.6 Severability. In case any provision in this Second Supplemental Indenture
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

          Section 2.7 Benefits of Second Supplemental Indenture. Nothing in this Second
Supplemental Indenture or the Notes, express or implied, shall give to any Person, other than the
parties hereto and thereto and their successors hereunder and thereunder and the Holders of the
Notes, any benefit of any legal or equitable right, remedy or claim under the Indenture, this
Second Supplemental Indenture or the Notes.

          Section 2.8 Successors. All agreements of the Company in this Second Supplemental
Indenture shall bind its successors. All agreements of the Trustee in this Second Supplemental
Indenture shall bind its successors.

          Section 2.9 Certain Duties and Responsibilities of the Trustee. In entering into this
Second Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of
the Indenture and the Notes relating to the conduct or affecting the liability or affording
protection to the Trustee, whether or not elsewhere herein so provided.

          Section 2.10 Governing Law. This Second Supplemental Indenture shall be governed by,
and construed in accordance with, the laws of the State of New York.

          Section 2.11 Multiple Originals. The parties may sign any number of copies of this
Second Supplemental Indenture, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

          Section 2.12 Headings. The Article and Section headings herein are inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.

          Section 2.13 The Trustee. The Trustee shall not be responsible in any manner for or
in respect of the validity or sufficiency of this Second Supplemental Indenture or for or in
respect of the recitals contained herein, all of which are made by the Company.

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed as of the date first written above.

	 	 	 	 	 	 	 
	 	 	CRUM & FORSTER HOLDINGS CORP.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Mary Jane Robertson
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mary Jane Robertson
	 

	 	 	 	Title:
	 	EVP, CFO & Treasurer
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,

as Trustee

	 
	 	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	 
	 

	 	 	 	Title:
	 	 

[Signature Page for Supplemental Indenture]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed as of the date first written above.

	 	 	 	 	 	 	 
	 	 	CRUM & FORSTER HOLDINGS CORP.
	 
	 	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	 
	 

	 	 	 	Title:
	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,

as Trustee

	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Robert A. Massimillo
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robert A. Massimillo
	 

	 	 	 	Title:
	 	Vice President

[Signature Page for Supplemental Indenture]

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