Document:

exv10w2

 

Exhibit
10.2

COAL
SALES
ORDER 

THIS COAL SALES ORDER (“Order”) dated April 18, 2007 confirms the sale of coal by Westmoreland
Resources, Inc. (“WRI”) to Red Trail Energy, LLC (“Buyer”) pursuant to the following terms and
conditions.

	 	 	 
	ORDER NUMBER:     Red Trail WRI-#001-2007
	 
	 	 
	SOURCE:

	 	The source of the coal to be delivered hereunder shall be from the Westmoreland Resources, Inc. (“WRI”)
Absaloka Mine, located at Sarpy Creek, Montana.
	 
	 	 
	TERM:

	 	April 18, 2007 through May 31, 2007.
	 
	 	 
	QUANTITY:

	 	For the period April 18 through May 31, 2007, Buyer will purchase and WRI shall sell two unit
trains of coal from the WRI’s Absaloka Mine.
	 
	 	 
	 

	 	The total quantity of coal delivered during April 18 through May 31, 2007 will not exceed 25,000 tons.
	 
	 	 
	 

	 	For purposes of this Order, a “ton” shall mean 2,000 pounds avoirdupois.
	 
	 	 
	DELIVERY DATE & SCHEDULE:
	 
	 	 
	 

	 	Buyer and WRI shall coordinate and agree upon the delivery schedule in a prompt manner based on the needs
of Buyer and availability of coal at the Absaloka Mine.
	 
	 	 
	POINT OF
DELIVERY: The Point of Delivery for coal sold hereunder shall be
F.O.B. Mine, loaded into Buyer provided railcars. All title and risk
of loss shall transfer to Buyer upon loading into railcars.

	 
	 	 
	PRICE:

	 	US $11.25 per ton FOB Mine (“the Price”).
	 
	 	 
	QUALITY:

	 	Typical coal quality specifications are set forth below. Buyer acknowledges that the quality of actual coal
deliveries may vary based on industry standards from the typical specifications below. All qualities below
are on as As-Received basis.

	 	 	 	 	 
	Absaloka Mine	 	 	 	 
	Btu/lb
	 	 	8,675	 
	Sulfur
	 	 	0.64	%
	Na20 in Ash
	 	 	2.00	%
	Ash
	 	 	9.50	%

	 	 	 
	 

	 	The size of the coal provided hereunder shall be two inch by zero inch (2” x 0”) with a maximum oversize of
ten percent (10%). WRI will use commercially reasonable efforts to maintain a top size not to exceed three
inches (3”).
	 
	 	 
	BILLING:

	 	Buyer will be invoiced for coal to the address shown below unless Buyer otherwise advises WRI in writing of
a different address to which invoices should be mailed:
	 
	 	 
	 

	 	P.O. Box 11
	 

	 	Richardton, ND 58652
	 

	 	Telephone #: 701-974-3308
	 

	 	Telefax #: 701-974-3309
	 
	 	 
	PAYMENT:

	 	Buyer shall pay invoices within ten (10) days after the date of the invoice at the address provided on the
invoices, including by wire if requested by WRI. Invoices will be sent every two weeks.
	 
	 	 
	WEIGHTS:

	 	The weight of the coal shall be determined by WRI at the Mine by certified commercial weigh scale(s).

 

 

	 	 	 
	GENERAL TERMS AND CONDITIONS: The General Terms and Conditions are as attached.
	 
	 	 
	SALES AGENT:
Westmoreland Coal Sales Company shall be the exclusive sales agent for and on behalf of WRI for all purposes under this Order.

IN WITNESS WHEREOF, the parties hereto have caused this Order to be executed in duplicate by
their duly authorized representatives as of the day and year first above written.

	 	 	 	 	 	 
	 	Buyer: Red Trail Energy, LLC	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/
Mick J. Miller	 
	 

	 	Title:
	 	PRESIDENT	 
	 
	 	 	 	 	 
	 	WRI: Westmoreland Resources, Inc.	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas L. Rossetto	 
	 

	 	Title:
	 	President	 

 

 

GENERAL TERMS AND CONDITIONS

	1.	 	Title to and risk of loss of the coal shall pass to Buyer at the Point of Delivery.
	 
	2.	 	The term “force majeure” shall mean any cause beyond the control of the party affected
thereby, such as acts of God, strike, lockout, labor dispute, labor shortage, fire, flood,
war, riot, explosion, accident, car shortage, embargo, contingencies of transportation,
inability to secure supplies or fuel or power, breakdown of machinery or apparatus, regulation
or rule or law of any governmental authority, or any other cause, whether similar or
dissimilar to the aforestated causes and whether or not foreseen or foreseeable by the
parties, which wholly or partially prevents, interrupts or delays the performance by WRI or
Buyer of their respective obligations under this Order. A force majeure event affecting any of
WRI’s suppliers, including its mining contractor, shall be considered a force majeure event
affecting WRI. Settlement of a strike, lockout or other labor dispute shall be deemed beyond
the control of the party claiming excuse thereby regardless of the cause of, or the ability of
such party to settle, such dispute.
	 
	 	 	If because of force majeure either Buyer or WRI is unable to carry out its obligations under
this Order, except obligations to pay money to the other party, then the obligations of such
party shall be suspended to the extent made necessary by such force majeure and during its
continuance, provided such force majeure is eliminated insofar as possible and economically
practicable with all reasonable dispatch. Any deficiency in coal tonnage to be delivered under
this Order caused by such force majeure shall not be made up except by mutual consent of Buyer
and WRI.
	 
	3.	 	The coal sold hereunder may not be used at, or reconsigned to, any location other than
Buyer’s facility, without the prior written consent of WRI.
	 
	4.	 	WRI shall provide for sampling and analysis of the coal at the Mine in accordance with ASTM
standards. Buyer shall have the right to have a representative present during sampling at any
and all times to observe the sampling process. WRI will provide to Buyer one ASTM sample for
each train load, and WRI shall also provide by email to Buyer an electronic copy of WRI’s
quality analysis for each train load.
	 
	5.	 	Failure of the Buyer to pay for coal delivered in accordance with the terms hereof shall give
WRI the option to (a) suspend further shipments until all previous shipments are paid for, or
(b) cancel the Order upon written notice to Buyer, provided that Buyer shall have a thirty
(30) day cure period after receipt of a notice of cancellation hereunder. If in the judgment
of WRI, Buyer’s ability to perform hereunder has become impaired, WRI shall have the right,
upon notice to Buyer, to suspend further shipments until WRI receives adequate assurance of
Buyer’s performance. If such security is not furnished within ten (10) days after receipt of
such notice. WRI shall have the right to cancel this Order upon notice to Buyer.
	 
	6.	 	This Order shall not be assigned by either party without the prior written consent of the
other party, which consent shall not be unreasonably withheld. Notwithstanding the foregoing,
either party may assign this Order without such consent to a parent company, or any other
affiliate of the assigning party, or for purposes of securing indebtedness, but assignor shall
continue to be liable for its performance hereunder.
	 
	7.	 	A party’s failure to insist in any one or more instances upon strict performance of a
provision of, or to take advantage of any of its rights under this Order shall not be
construed as a waiver of such provision or right. No default of either party to this Order in
the performance of any of its covenants or obligations hereunder, except the obligation for
payment, shall result in a right to the other party to cancel this contract unless such
defaulting party shall fail to correct the default within thirty (30) days after written
notice of claim of such default has been given by the party claiming such default.
	 
	8.	 	Notice sent by facsimile, first class, certified or registered U.S. Mail, or a reputable over
night courier service, addressed to the party to whom such notice is given, at the address of
such party stated in this Order or to such other address (or facsimile number) as such party
may designate, shall be deemed sufficient notice in any case requiring notice under this
Order.
	 
	9.	 	EXCEPT AS EXPRESSLY STATED IN THIS ORDER, WRI MAKES NO WARRANTIES, WHETHER EXPRESS OR
IMPLIED, WRITTEN OR ORAL, ARISING FROM A COURSE OF DEALING, USAGE OF TRADE, OR OTHERWISE,
REGARDING MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUALITY, QUANTITY, OR OTHERWISE.
Neither party shall be liable for any punitive, special, incidental or consequential damages
(including without limitation, loss of profits or overhead), based upon breach of warranty or
of contract, negligence or any other theory of legal liability arising out of this Order;
provided, however, such limitation regarding incidental or consequential damages shall not
apply to any liability for third party claims for which WRI has indemnified Buyer pursuant to
paragraph 12 below, to the extent that Buyer has liability for such incidental or
consequential damages.
	 
	10.	 	The terms and conditions set forth in this Order are considered by both Buyer and WRI to be
CONFIDENTIAL. Neither party shall disclose any such information to any third party without the
advance written consent of the other party, except where such disclosure may be required by
law (including by rule or order of the Securities and Exchange Commission) or is necessary to
assert a claim or defense in judicial or administrative proceedings, in which event the party
desiring to make the disclosure shall advise the other party in advance in writing and shall
cooperate to the extent practicable to minimize the disclosure of any such information. If a
party believes that any disclosure of the terms of this Order are required by law, such party
shall (i) provide prompt written notice to the other party, and (ii) take such steps are
reasonably available to minimize the disclosure of the terms of this Order.
	 
	11.	 	This Order shall be governed in all respects by the law of the State of Montana, without regard
to its choice of laws provisions.

 

 

	12.	 	WRI shall be (i) liable to Buyer for, and (ii) indemnify and save harmless Buyer from and
against any and all claims made or brought by any third party in respect of, any damage, caused
by the negligent acts or omissions of WRI, to (a) Buyer’s or its contracted rail carriers’
equipment while on WRI’s property except to the extent such damage is caused by the negligence
of Buyer or its contracted rail carrier, and (b) Buyer’s equipment, including mobile railcars
and stationary equipment at Buyer’s coal combustion facility, to the extent said equipment is
damaged due to non-coal material having been interspersed with the coal prior to leaving WRI’s
mine property.
	 
	13.	 	This Order contains the entire agreement of the parties, is expressly limited to the terms
and conditions specifically set forth or incorporated by reference herein, supersedes all
prior communications between the parties regarding the subject matter of this Order and shall
be amended or modified only by agreement of the parties in writing. Should any provision of
this Order for any reason be declared invalid or unenforceable by an order of any court having
jurisdiction, such decision shall not affect the validity or enforceability of the remaining
provisions of this Order, and such provisions shall remain in full force and effect as if this
Order had been executed without the invalid or unenforceable provision.

#    #    #exv4w1

 

Exhibit 4.1

SXC HEALTH SOLUTIONS CORP.

2007 EMPLOYEE STOCK PURCHASE PLAN

ARTICLE 1 — Purpose

1.1 This 2007 Employee Stock Purchase Plan (the “Plan”) is intended to encourage share ownership by
all eligible employees of Systems Xcellence Inc. (the “Corporation”), a corporation existing under
the Canada Business Corporations Act, and its participating subsidiaries (as defined in Article 17)
so that they may share in the growth of the Corporation by acquiring or increasing their
proprietary interest in the Corporation. The Plan is designed to encourage eligible employees to
remain in the employ of the Corporation and its participating subsidiaries. The Plan is intended
to constitute an “employee stock purchase plan” within the meaning of Section 423(b) of the
Internal Revenue Code of 1986, as amended (the “Code”).

ARTICLE 2 — Administration of the Plan

2.1 The Plan may be administered by the Compensation Committee of the Board of Directors of the
Corporation (the “Committee”). Acts by a majority of the Committee, or acts reduced to or approved
in writing by a majority of the members of the Committee, shall be the valid acts of the Committee.

2.2 The interpretation and construction by the Committee of any provisions of the Plan or of any
option granted under it shall be final, unless otherwise determined by the Board of Directors. The
Committee may from time to time adopt such rules and regulations for carrying out the Plan as it
may deem best, provided that any such rules and regulations shall be applied on a uniform basis to
all employees under the Plan. No member of the Board of Directors or the Committee shall be liable
for any action or determination made in good faith with respect to the Plan or any option granted
under it.

2.3 In the event that there is no Committee available to administer the Plan, the Board of
Directors shall have all power and authority to administer the Plan. In such event, the word
“Committee” wherever used herein shall be deemed to mean the Board of Directors.

ARTICLE 3 — Eligible Employees

3.1 All employees of the Corporation or any of its participating subsidiaries whose customary
employment is more than 20 hours per week shall be eligible to receive options under the Plan to
purchase Common Shares (as defined in Article 4), and all eligible employees shall have the same
rights and privileges hereunder. Persons who are eligible employees on the first business day of
any Purchase Period (as defined in Article 5) shall receive their options as of such day. Persons
who become eligible employees after any date on which options are granted under the Plan shall be
granted options on the first day of the next succeeding Purchase Period on which options are
granted to eligible employees under the Plan. In no event, however, may an employee be granted an
option if such employee, immediately after the option was granted, would be treated as owning
shares possessing 5% or more of the total combined voting power or value of all classes of shares
of the Corporation or of any parent corporation or subsidiary corporation, as the terms “parent
corporation” and “subsidiary corporation” are defined in Section 424(e) and (f) of the Code. For
purposes of determining ownership under this paragraph, the rules of Section 424(d) of the Code
shall apply, and shares which the employee may purchase under outstanding options shall be treated
as shares owned by the employee.

3.2 Notwithstanding anything else contained herein, the number of common shares which may be issued
within any one-year period pursuant to the Plan and under any other employee stock purchase plans,
stock option plans or other share compensation arrangements of the Corporation to insiders (as
defined in the Securities Act (Ontario)) of the Corporation, or of any affiliate or subsidiary of
the Corporation, shall not exceed 10% of the Corporation’s total issued and outstanding common
shares.

 

 

ARTICLE 4 — Treasury Shares Subject to the Plan

4.1 The aggregate number of common shares in the capital of the Corporation (the “Common Shares”)
reserved for issuance from treasury pursuant to the Plan is 100,000, subject to adjustment as
provided in Article 12. If any option granted under the Plan shall expire or terminate for any reason without having been
exercised in full or shall cease for any reason to be exercisable in whole or in part, the
unpurchased Common Shares subject thereto shall again be available under the Plan.

ARTICLE 5 — Purchase Period and Share Options

5.1 The first period during which payroll deductions will be accumulated under the Plan shall
commence on June 1, 2007 and shall end on December 31, 2007. For the remainder of the duration of
the Plan, periods during which payroll deductions will be accumulated under the Plan shall consist
of the six month periods commencing on January 1 and July 1, and ending on June 30 and December 31
of each calendar year (each a “Purchase Period”).

5.2 Twice each year, on the first business day of each Purchase Period, subject to Section 5.5, the
Company will grant to each eligible employee who is then a participant in the Plan an option to
purchase on the last day of such Purchase Period (the “Purchase Date”), at the Option Price
hereinafter provided for, a maximum of 1,000 Common Shares, on the condition that such employee
remains eligible to participate in the Plan throughout the remainder of such Purchase Period. The
participant shall be entitled to exercise the option so granted only to the extent of the
participant’s accumulated payroll deductions on the Purchase Date. If the participant’s
accumulated payroll deductions on the last day of the Purchase Period would enable the participant
to purchase more than 1,000 Common Shares except for the 1,000—Common Share limitation, the excess
of the amount of the accumulated payroll deductions over the aggregate purchase price of the 1,000
Common Shares shall be promptly refunded to the participant by the Company, without interest. The
Option Price per Common Share for each Purchase Period shall be 95% of the Average Market Price (as
defined below) for the Common Shares on the Purchase Date, rounded up to the nearest cent (the
“Option Price”). The foregoing limitation on the number of shares subject to option and the Option
Price shall be subject to adjustment as provided in Article 12.

5.3 For purposes of the Plan, the term “Average Market Price” on any date means (i) the weighted
average trading price of the Common Shares on the trading day immediately preceding such day on the
national securities exchange or quotation system on which the greatest volume of trading of the
Common Shares in that period has occurred, if the Common Shares then traded on such securities
exchange or quotation system; or (ii) the average of the closing bid and asked prices last quoted
(on that date) by an established quotation service for over-the-counter securities, if the Common
Shares are not traded on a national exchange or quotation system; or (iii) if the Common Shares are
not publicly traded, the fair market value of the Common Shares as determined by the Committee
after taking into consideration all factors which it deems appropriate, including, without
limitation, recent sale and offer prices of the Common Shares in private transactions negotiated at
arm’s length.

5.4 For purposes of the Plan, the term “business day” means a day on which there is trading on the
NASDAQ Global Market or the aforementioned securities exchange on which the greatest volume of
trading of the Common Shares in the respective period has occurred, whichever is applicable
pursuant to the preceding paragraph; and if neither is applicable, a day that is not a Saturday,
Sunday or statutory holiday in the Province of Ontario.

5.5 No employee shall be granted an option which permits the employee’s right to purchase shares
under the Plan, and under all other Section 423(b) employee stock purchase plans of the Corporation
and any parent or subsidiary corporations, to accrue at a rate which exceeds $25,000 of fair market
value of such shares (determined on the date or dates that options on such shares were granted) for
each calendar year in which such option is outstanding at any time. The purpose of the limitation
in the preceding sentence is to comply with Section 423(b)(8) of the Code. If the participant’s
accumulated payroll deductions on the Purchase Date would otherwise enable the participant to
purchase Common Shares in excess of the Section 423(b)(8) limitation described in this paragraph,
the excess of the amount of the accumulated payroll deductions over the aggregate purchase price of
the shares actually purchased shall be promptly refunded to the participant by the Corporation,
without interest.

ARTICLE 6 — Exercise of Option

6.1 Each eligible employee who continues to be a participant in the Plan on the Purchase Date shall
be deemed to have exercised his or her option on such date and shall be deemed to have purchased
from the Corporation such number of full Common Shares reserved for the purpose of the Plan as the
participant’s accumulated payroll deductions on such date will pay for at the Option Price, subject
to the 1,000 Common Share limit of the option and the Section 423(b)(8) limitation described in
Article 5. If the individual is not a participant on the Purchase Date,

 

 

then he or she shall not be
entitled to exercise his or her option. Only full Common Shares may be purchased under the Plan.
Unused payroll deductions remaining in a participant’s account at the end of a Purchase Period by
reason of the inability to purchase a fractional share shall be carried forward to the next
Purchase Period.

ARTICLE 7 — Plan Enrollment

7.1 An eligible employee may enroll as a participant in the Plan in accordance with procedures
prescribed by the Committee, including by filling out, signing and delivering to the Corporation an
authorization in a form specified by the Committee:

	 	(a)	 	Stating the percentage to be deducted regularly from the employee’s pay;
	 
	 	(b)	 	Authorizing the purchase of Common Shares for the employee in each Purchase
Period in accordance with the terms of the Plan; and
	 
	 	(c)	 	Specifying the exact name or names in which Common Shares purchased for the
employee are to be issued as provided under Article 11 hereof.

7.2 Such authorization must be received by the Corporation at least ten days before the first day
of the next succeeding Purchase Period and shall take effect only if the employee is an eligible
employee on the first business day of such Purchase Period.

7.3 Unless a participant files a new authorization or withdraws from the Plan, the deductions and
purchases under the authorization the participant has on file under the Plan will continue
automatically from one Purchase Period to succeeding Purchase Periods as long as the Plan remains
in effect.

7.4 The Corporation will accumulate and hold for each participant’s account the amounts deducted
from his or her pay. No interest will be paid on these amounts.

ARTICLE 8 — Maximum Amount of Payroll Deductions

8.1 An amount equal to the elected percentage of the participant’s base salary excluding bonus,
commissions and special compensation (“Compensation”) shall be deducted on each regular payday
falling within the Purchase Period. The maximum rate of payroll deductions that an employee may
elect for any Purchase Period is 15% of the participant’s Compensation paid during such Purchase
Period. All amounts will be calculated on the participant’s gross Compensation and deducted from a
participant’s net Compensation on an after-tax basis.

ARTICLE 9 — Change in Payroll Deductions

9.1 A participant may, at any time during a Purchase Period, in accordance with procedures
prescribed by the Corporation, stop any further deductions from the participant’s Compensation for
the purchase of Common Shares pursuant to the Plan. A participant that stops payroll deductions in
any Purchase Period in accordance with the foregoing may not elect to participate further in the
Plan until the next Purchase Period except with the written consent of the Corporation.

ARTICLE 10 — Withdrawal from the Plan

10.1 A participant may withdraw from the Plan at any time prior to the last day of a Purchase
Period, in accordance with procedures prescribed by the Committee by delivering a withdrawal notice
to the Corporation in which event the Corporation will refund the amount of the participants
aggregate payroll deductions for that Purchase Period. In any given Purchase Period, a participant
who withdraws from the Plan will not be eligible to participate in the Plan until the next Purchase
Period.

10.2 To re-enter the Plan, an employee who has previously withdrawn must file a new authorization
at least ten days before the first day of the next Purchase Period in which he or she wishes to
participate. The employee’s re-entry into the Plan becomes effective at the beginning of such
Purchase Period, provided that he or she is an eligible employee on the first business day of the
Purchase Period.

 

 

ARTICLE 11 — Delivery of Common Shares to Custodial Accounts

11.1 Subject to Section 11.2, the Common Shares purchased by participants will be issued from
treasury by the Corporation’s transfer agent to a participant’s custodial account as soon as
practicable after each Purchase Date. Common Shares purchased under the Plan will be issued only
in the name of the participant (or, if his or her authorization so designates, in the name of the
participant and another person of legal age as joint tenants with rights
of survivorship). The custodial account of participants shall be maintained by a bank,
broker-dealer or similar custodian that has agreed to hold such shares for the accounts of the
respective participants. Fees and expenses of the bank, broker-dealer or similar custodian shall
be paid by the Corporation or allocated among the respective participants in such manner as the
Committee determines. A participant or his or her legal representative may withdraw Common Shares
from his or her custodial account at any time.

11.2 In lieu of issuing Common Shares from treasury or in combination with treasury issuances, the
Corporation may in its sole discretion elect to deliver to the administrative agent of the Plan, as
soon as practicable after each Purchase Date, sufficient additional funds to permit the purchase of
Common Shares in the open market on behalf of Plan participants, with instructions to deposit such
acquired shares in the custodial account of each applicable participant.

ARTICLE 12 — Adjustments

12.1 Upon the happening of any of the following described events, a participant’s rights under
options granted under the Plan shall be adjusted as hereinafter provided:

	 	(a)	 	In the event that the Common Shares shall be subdivided or consolidated into a
greater or smaller number of shares or if, upon a reorganization, split-up,
liquidation, recapitalization or the like of the Corporation, the Common Shares shall
be exchanged for other securities of the Corporation, each participant shall be
entitled, subject to the conditions herein stated, to purchase such number of Common
Shares or amount of other securities of the Corporation as were exchangeable for the
number of Common Shares that such participant would have been entitled to purchase
except for such action, and appropriate adjustments shall be made in the purchase price
per share to reflect such subdivision, consolidated or exchange; and
	 
	 	(b)	 	In the event the Corporation shall issue any of its shares as a stock dividend
upon or with respect to the shares of the class which shall at the time be subject to
option hereunder, each participant upon exercising such an option shall be entitled to
receive (for the purchase price paid upon such exercise) the shares as to which the
participant is exercising his or her option and, in addition thereto (at no additional
cost), such number of shares of the class or classes in which such stock dividend or
dividends were declared or paid, and such amount of cash in lieu of fractional shares,
as is equal to the number of shares thereof and the amount of cash in lieu of
fractional shares, respectively, which the participant would have received if the
participant had been the holder of the shares as to which the participant is exercising
his or her option at all times between the date of the granting of such option and the
date of its exercise.

12.2 Upon the happening of any of the foregoing events, the class and aggregate number of shares
set forth in Article 4 hereof which are subject to options which have been or may be granted under
the Plan and the limitations set forth in the second paragraph of Article 5 shall also be
appropriately adjusted to reflect the events specified in paragraphs (a) and (b) above.
Notwithstanding the foregoing, any adjustments made pursuant to paragraphs (a) or (b) shall be made
only after the Committee, based on advice of counsel for the Corporation, determines whether such
adjustments would constitute a “modification” (as that term is defined in Section 424 of the Code).
If the Committee determines that such adjustments would constitute a modification, or that such
change will constitute a change requiring shareholder approval, it may refrain from making such
adjustments.

12.3 If the Corporation is to be consolidated with or acquired by another entity in a merger, a
sale of all or substantially all of the Corporation’s assets or otherwise (an “Acquisition”), the
Committee or the board of directors of any entity assuming the obligations of the Corporation
hereunder (the “Successor Board”) shall, with respect to options then outstanding under the Plan,
either (i) make appropriate provision for the continuation of such options by arranging for the
substitution on an equitable basis for the shares then subject to such options (a) the
consideration payable with respect to the outstanding Common Shares in connection with the
Acquisition, (b) shares of the successor corporation, or a parent or subsidiary of such
corporation, or (c) such other securities as the Successor Board deems appropriate, the fair market
value of which shall not materially exceed the fair market value of the Common Shares subject to
such options immediately preceding the Acquisition; or (ii) terminate each

 

 

participant’s options in
exchange for a cash payment equal to the excess of (a) the fair market value on the date of the
Acquisition, of the number of Common Shares that the participant’s accumulated payroll deductions
as of the date of the Acquisition could purchase, at an option price determined with reference only
to the first business day of the applicable Purchase Period and subject to Code Section 423(b)(8)
and fractional-share limitations on the amount
of shares a participant would be entitled to purchase, over (b) the result of multiplying such
number of shares by such option price.

12.4 The Committee or Successor Board shall determine the adjustments to be made under this Article
12, and its determination shall be conclusive.

ARTICLE 13 — No Transfer or Assignment of Employee’s Rights

13.1 An option granted under the Plan or a participant’s right under the Plan may not be pledged,
assigned, encumbered or otherwise transferred for any reason, except by will or laws of descent and
distribution, and may be exercised, during the participant’s lifetime, only by the participant.
Any such attempt will be deemed to be a election by the participant to withdraw from the Plan in
accordance with Article 10.

ARTICLE 14 — Termination of Employee’s Rights

14.1 Whenever a participant ceases to be an eligible employee because of retirement, voluntary or
involuntary termination, resignation, layoff, discharge, death or for any other reason, his or her
rights under the Plan shall immediately terminate, and the Corporation shall promptly refund to the
participant or his or her personal representative, without interest, the entire balance of his or
her payroll deduction account under the Plan. Notwithstanding the foregoing, eligible employment
shall be treated as continuing intact while a participant is on sick leave or other bona fide leave
of absence, for up to 90 days, or for so long as the participant’s right to re-employment is
guaranteed either by statute or by contract, if longer than 90 days.

14.2 This Plan does not, directly or indirectly, create any right for the benefit of any employee
or class of employees to preferentially purchase any Common Shares under the Plan, or create in any
employee or class of employees any right with respect to continuation of employment by the
Corporation, and it shall not be deemed to interfere in any way with the Corporation’s right to
terminate, or otherwise modify, an employee’s employment at any time.

ARTICLE 15 — Termination and Amendments to Plan

15.1 Unless terminated sooner as provided below, the Plan shall terminate on January 1, 2017. The
Plan may be terminated at any time by the Corporation’s Board of Directors but such termination
shall not affect options then outstanding under the Plan. It will terminate in any case when all
or substantially all of the unissued Common Shares reserved for the purposes of the Plan have been
purchased. If at any time Common Shares reserved for the purpose of the Plan remain available for
purchase but not in sufficient number to satisfy all then unfilled purchase requirements, the
available shares shall be allocated pro rata among participants in proportion to the amount of
payroll deductions accumulated on behalf of each participant that would otherwise be used to
purchase Common Shares, and the Plan shall terminate. Upon such termination or any other
termination of the Plan, all payroll deductions not used to purchase Common Shares will be
refunded, without interest.

15.2 The Committee or the Board of Directors may from time to time adopt modifications or
amendments to the Plan without shareholder approval, provided that: (i) any such modification or
amendment does not cause the plan to no longer constitute an “employee stock purchase plan” within
the meaning of Section 423(b) of the Code and, (ii) the following modifications or amendments
require the approval of the shareholders of the Corporation:

	 	(a)	 	any amendment to the maximum aggregate number of Common Shares that may be
purchased under the Plan (other than as a result of adjustment pursuant to Article 12);
	 
	 	(b)	 	any amendment that would (i) increase the amount of the cash contribution that
may be made by the Corporation to the purchase of Common Shares by any employee
participating in the Plan, or (ii) increase the discount from Average Market Price of
Common Shares issued from treasury under the Plan;

 

 

	 	(c)	 	any amendment that would increase the maximum percentage of base salary during
any pay period or the maximum dollar amount in any one calendar year that any eligible
participant may direct be made, pursuant to the Plan, toward the purchase of Common
Shares on his or her behalf through payroll deductions;
	 
	 	(d)	 	any amendment that would increase the total number of Common Shares that may be
acquired by any one individual under the Plan or to any one insider of the Corporation,
as defined in the Securities Act (Ontario), (“Insider”) and the Insider’s associates;
	 
	 	(e)	 	any change to the eligible participants that would have the potential for
broadening or increasing Insider participation on the Plan;
	 
	 	(f)	 	any amendment that would increase the total number of Common Shares that may be
acquired by Insiders of the Corporation within a one-year period; and
	 
	 	(g)	 	any amendment to Section 3.2 hereof.

15.3 Any modification or amendment to the Plan that is not subject to shareholder approval pursuant
to section 15.3 may be implemented by the Corporation without shareholder approval, subject to any
approval required by the rules of any stock exchange on which the Common Shares are listed at the
time of such proposed modification or amendment and any other requirements of applicable law.

ARTICLE 16 — Limits on Sale of Shares Purchased under the Plan

16.1 The Plan is intended to provide Common Shares for investment and not for resale. The
Corporation does not, however, intend to restrict or influence any employee in the conduct of his
or her own affairs. An employee may, therefore, sell Common Shares purchased under the Plan at any
time the employee chooses, subject to compliance with any applicable federal, state and provincial
securities laws and regulations, subject to any restrictions imposed under Article 21 to ensure
that tax withholding obligations are satisfied; subject to compliance with the terms of the
Corporation’s Insider Trading Policy; and subject to any limitations imposed by the Board of
Directors with respect to any purchases made to such participants after notice of any such hold
requirement is imposed. THE EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE OF
THE COMMON SHARES.

ARTICLE 17 — Participating Subsidiaries

17.1 The term “participating subsidiary” shall mean any present or future subsidiary of the
Corporation, as that term is defined in Section 424(f) of the Code, which is designated from time
to time by the Board of Directors to participate in the Plan. The Board of Directors shall have
the power to make such designation before or after the Plan is approved by the shareholders.

ARTICLE 18 — Optionees Not Shareholders

18.1 Neither the granting of an option to an employee nor the deductions from his or her pay shall
constitute such employee a shareholder of the shares covered by an option until such shares have
been actually purchased by the employee. Notwithstanding the foregoing, the Corporation shall
deliver to each participant under this Plan who does not otherwise receive such materials (a) a
copy of the Corporation’s annual financial statements, together with management’s discussion and
analysis of financial condition and results of operations for the fiscal year, and (b) a copy of
all reports, proxy statements and other communications distributed to the Corporation’s security
holders generally.

ARTICLE 19 — Application of Funds

19.1 The proceeds received by the Corporation from the sale of Common Shares pursuant to options
granted under the Plan will be used for general corporate purposes.

 

 

ARTICLE 20 — Notice to Corporation of Disqualifying Disposition

20.1 By electing to participate in the Plan, each United States of America resident agrees to
notify the Corporation in writing immediately after the participant transfers Common Shares
acquired under the Plan, if such transfer occurs within two years after the first business day of
the Purchase Period in which such Common Shares was acquired. Each participant further agrees to
provide any information about such a transfer as may be requested by the Corporation or any
subsidiary corporation in order to assist it in complying with the tax laws. Such dispositions
generally are treated as “disqualifying dispositions” under Sections 421 and 424 of the Code, which
have certain tax consequences to participants and to the Corporation and its participating
subsidiaries.

ARTICLE 21 — Withholding of Additional Taxes

21.1 By electing to participate in the Plan, each participant acknowledges that the Corporation and
its participating subsidiaries are required to withhold taxes with respect to the amounts deducted
from the participant’s compensation and accumulated for the benefit of the participant under the
Plan, and each participant agrees that the Corporation and its participating subsidiaries may
deduct additional amounts from the participant’s compensation, when amounts are added to the
participant’s account, used to purchase Common Shares or refunded, in order to satisfy such
withholding obligations. Each participant further acknowledges that when Common Shares are
purchased under the Plan the Corporation and its participating subsidiaries may be required to
withhold taxes with respect to all or a portion of the difference between the fair market value of
the Common Shares purchased and their purchase price and any other taxable benefit arising from
participation in the Plan, and each participant agrees that such taxes may be withheld from
compensation otherwise payable to such participant. It is intended that tax withholding will be
accomplished in such a manner that the full amount of payroll deductions elected by the participant
under Article 7 will be used to purchase the Common Shares. However, if amounts sufficient to
satisfy applicable tax withholding obligations have not been withheld from compensation otherwise
payable to any participant, then, notwithstanding any other provision of the Plan, the Corporation
may withhold such taxes from the participant’s accumulated payroll deductions and apply the net
amount to the purchase of Common Shares, unless the participant pays to the Corporation, prior to
the exercise date, an amount sufficient to satisfy such withholding obligations. Each participant
further acknowledges that the Corporation and its participating subsidiaries may be required to
withhold taxes in connection with the disposition of Common Shares acquired under the Plan and
agrees that the Corporation or any participating subsidiary may take whatever action it considers
appropriate to satisfy such withholding requirements, including deducting from compensation
otherwise payable to such participant an amount sufficient to satisfy such withholding requirements
or conditioning any disposition of Common Shares by the participant upon the payment to the
Corporation or such subsidiary of an amount sufficient to satisfy such withholding requirements.
For purposes of this Article 21, “taxes” include all remuneration-related deductions, withholdings
and contributions required by any governmental authority.

ARTICLE 22 — Governmental Regulations

22.1 The Corporation’s obligation to sell and deliver Common Shares under the Plan is subject to
the approval of any governmental authority required in connection with the authorization, issuance
or sale of such shares. Government regulations and stock exchange requirements may impose
reporting or other obligations on the Corporation with respect to the Plan. For example, the
Corporation may be required to disclose the names of participants and the number of Common Shares
acquired under the Plan, or identify Common Shares issued under the Plan on its ownership records
and send tax information statements to employees and former employees who transfer title to such
Common Shares.

ARTICLE 23 — Governing Law

23.1 The validity and construction of the Plan shall be governed by the laws of Ontario, without
giving effect to the principles of conflicts of law thereof.

ARTICLE 24 — Approval of Board of Directors and Shareholders of the Corporation

24.1 This Plan shall be effective June 1, 2007, subject to approval by the holders of a majority of
the Common Shares of the Corporation. This Plan shall be subject to approval by the shareholders
of the Corporation in a manner that complies with Section 423(b)(2) of the Code and applicable
Canadian law. If such approvals do not occur prior to the end of the first Purchase Period under
the Plan, this Plan and all rights of participants under the Plan shall terminate, and all payroll
deductions of participants accumulated under the Plan will be promptly returned to the
participants.

ARTICLE 25 — Miscellaneous

25.1 All references to currency herein are to US funds unless otherwise indicated.

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