Document:

EX-4.9

EXHIBIT 4.9

[FORM OF PREFERRED SECURITIES GUARANTEE]

 

PREFERRED SECURITIES GUARANTEE AGREEMENT

[Navigators Capital Trust I/II]

Dated as of                           ,      

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.1 Definitions and Interpretation
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II TRUST INDENTURE ACT
	 	 	5	 
	 
	 	 	 	 
	SECTION 2.1 Trust Indenture Act; Application
	 	 	5	 
	SECTION 2.2 Lists of Holders of Securities
	 	 	5	 
	SECTION 2.3 Reports by the Preferred Guarantee Trustee
	 	 	5	 
	SECTION 2.4 Periodic Reports to Preferred Guarantee Trustee
	 	 	5	 
	SECTION 2.5 Evidence of Compliance with Conditions Precedent
	 	 	6	 
	SECTION 2.6 Events of Default; Waiver
	 	 	6	 
	SECTION 2.7 Event of Default; Notice
	 	 	6	 
	SECTION 2.8 Conflicting Interests
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III POWERS, DUTIES AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE
	 	 	6	 
	 
	 	 	 	 
	SECTION 3.1 Powers and Duties of the Preferred Guarantee Trustee
	 	 	6	 
	SECTION 3.2 Certain Rights of Preferred Guarantee Trustee
	 	 	8	 
	SECTION 3.3 Not Responsible for Recitals or Issuance of Preferred Securities Guarantee
	 	 	11	 
	 
	 	 	 	 
	ARTICLE IV PREFERRED GUARANTEE TRUSTEE
	 	 	11	 
	 
	 	 	 	 
	SECTION 4.1 Preferred Guarantee Trustee; Eligibility
	 	 	11	 
	SECTION 4.2 Appointment, Removal and Resignation of Preferred Guarantee Trustee
	 	 	11	 
	 
	 	 	 	 
	ARTICLE V GUARANTEE
	 	 	12	 
	 
	 	 	 	 
	SECTION 5.1 Guarantee
	 	 	12	 
	SECTION 5.2 Waiver of Notice and Demand
	 	 	12	 
	SECTION 5.3 Obligations Not Affected
	 	 	13	 
	SECTION 5.4 Rights of Holders
	 	 	13	 
	SECTION 5.5 Guarantee of Payment
	 	 	14	 
	SECTION 5.6 Subrogation
	 	 	14	 
	SECTION 5.7 Independent Obligations
	 	 	14	 
	 
	 	 	 	 
	ARTICLE VI LIMITATION OF TRANSACTIONS; SUBORDINATION
	 	 	14	 
	 
	 	 	 	 
	SECTION 6.1 Limitation of Transactions
	 	 	14	 
	SECTION 6.2 Ranking
	 	 	15	 

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	 	 	Page	 
	ARTICLE VII TERMINATION
	 	 	15	 
	 
	 	 	 	 
	SECTION 7.1 Termination
	 	 	15	 
	 
	 	 	 	 
	ARTICLE VIII INDEMNIFICATION
	 	 	15	 
	 
	 	 	 	 
	SECTION 8.1 Exculpation
	 	 	15	 
	SECTION 8.2 Indemnification
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	16	 
	 
	 	 	 	 
	SECTION 9.1 Successors and Assigns
	 	 	16	 
	SECTION 9.2 Amendments
	 	 	16	 
	SECTION 9.3 Notices
	 	 	17	 
	SECTION 9.4 Benefit
	 	 	17	 
	SECTION 9.5 Governing Law
	 	 	17	 
	SECTION 9.6 Waiver of Jury Trial
	 	 	18	 
	SECTION 9.7 Force Majeure
	 	 	18	 

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PREFERRED SECURITIES GUARANTEE AGREEMENT

          This GUARANTEE AGREEMENT (the “Preferred Securities Guarantee”), dated as of                           ,                     ,
is executed and delivered by The Navigators Group, Inc., a Delaware corporation (the “Guarantor”),
and The Bank of New York Mellon, a New York banking corporation, as trustee (the “Preferred
Guarantee Trustee”), for the benefit of the Holders (as defined herein) from time to time of the
Preferred Securities (as defined herein) of [Navigators Capital Trust I/II], a Delaware statutory
trust (the “Issuer”).

          WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”), dated
as of                           ,                     , among the trustees of the Issuer named therein, the Guarantor, as Depositor,
and the holders from time to time of undivided beneficial interests in the assets of the Issuer,
the Issuer is issuing on the date hereof                      preferred securities, having an aggregate
liquidation amount of $                    , designated the      %                      Preferred Securities (the
“Preferred Securities”);

          WHEREAS, the Preferred Securities will be issued by the Issuer and the proceeds thereof,
together with the proceeds from the issuance of the Issuer’s Common Securities (as defined below),
will be used to purchase the Debentures (as defined in the Declaration) of the Guarantor which will
be deposited with The Bank of New York Mellon, as Property Trustee under the Declaration, as trust
assets; and

          WHEREAS, as incentive for the Holders to purchase the Preferred Securities, the Guarantor
desires irrevocably and unconditionally to agree, to the extent set forth in this Preferred
Securities Guarantee, to pay to the Holders of the Preferred Securities the Guarantee Payments (as
defined herein) and to make certain other payments on the terms and conditions set forth herein.

          [WHEREAS, the Guarantor is also executing and delivering a guarantee agreement (the “Common
Securities Guarantee”) in substantially identical terms to this Preferred Securities Guarantee for
the benefit of the holders of the Common Securities (as defined herein), except that if an Event of
Default (as defined in the Indenture), has occurred and is continuing, the rights of holders of the
Common Securities to receive Guarantee Payments under the Common Securities Guarantee are
subordinated to the rights of Holders of Preferred Securities to receive Guarantee Payments under
this Preferred Securities Guarantee.]

          NOW, THEREFORE, in consideration of the purchase by each Holder of Preferred Securities, which
purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and
delivers this Preferred Securities Guarantee for the benefit of the Holders.

ARTICLE I

DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation

          In this Preferred Securities Guarantee, unless the context otherwise requires:

 

 

	 	(a)	 	Capitalized terms used in this Preferred Securities Guarantee
but not defined in the preamble above have the respective meanings assigned to
them in this Section 1.1;
	 
	 	(b)	 	a term defined anywhere in this Preferred Securities Guarantee
has the same meaning throughout;
	 
	 	(c)	 	all references to “the Preferred Securities Guarantee” or “this
Preferred Securities Guarantee” are to this Preferred Securities Guarantee as
modified, supplemented or amended from time to time;
	 
	 	(d)	 	all references in this Preferred Securities Guarantee to
Articles and Sections are to Articles and Sections of this Preferred Securities
Guarantee, unless otherwise specified;
	 
	 	(e)	 	a term defined in the Trust Indenture Act has the same meaning
when used in this Preferred Securities Guarantee, unless otherwise defined in
this Preferred Securities Guarantee or unless the context otherwise requires;
and
	 
	 	(f)	 	a reference to the singular includes the plural and vice versa.

          “Affiliate” has the same meaning as given to that term in Rule 405 of the Securities Act of
1933, as amended, or any successor rule thereunder. An Affiliate of the Guarantor shall not be
deemed to include the Issuer.

          “Authorized Officer” of a Person means any Person that is authorized to bind such Person.

          “Business Day” means any day other than a Saturday or Sunday or any day on which banking
institutions in the City of New York, New York are authorized or required by any applicable law to
close.

          “Common Securities” means the securities representing common undivided beneficial interests in
the assets of the Issuer.

          “Corporate Trust Office” means the office of the Preferred Guarantee Trustee at which the
corporate trust business of the Preferred Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this Agreement is located at 101
Barclay Street, Floor 8 West, New York, New York 10286, Attention: Corporate Trust Administration,
or such other address as the Preferred Guarantee Trustee may designate from time to time by notice
to the Guarantor, or the principal corporate trust office of any successor Preferred Guarantee
Trustee (or such other address as such successor Trustee may designate from time to time by notice
to the Guarantor).

          “Covered Person” means any Holder or beneficial owner of Preferred Securities.

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          “Debentures” means the series of subordinated debt securities of the Guarantor designated the
     % Subordinated Deferrable Interest Debentures due                           ,                     held by the Property
Trustee (as defined in the Declaration) of the Issuer.

          “Event of Default” means a default by the Guarantor on any of its payment or other obligations
under this Preferred Securities Guarantee, provided, however, that, except with respect to a
default in payment of any Guarantee Payments, the Guarantor shall have received notice of default
and shall not have cured such default within 60 days after receipt of such notice.

          “Guarantee Payments” means the following payments or distributions, without duplication, with
respect to the Preferred Securities, to the extent not paid or made by the Issuer: (i) any accrued
and unpaid Distributions (as defined in the Declaration) that are required to be paid on such
Preferred Securities to the extent the Issuer shall have funds available therefor, (ii) the
redemption price, including all accrued and unpaid Distributions to the date of redemption (the
“Redemption Price”) to the extent the Issuer has funds available therefor, with respect to any
Preferred Securities called for redemption by the Issuer, and (iii) upon a voluntary or involuntary
dissolution, winding-up or termination of the Issuer (other than in connection with the
distribution of Debentures to the Holders in exchange for Preferred Securities as provided in the
Declaration), the lesser of (a) the aggregate of the liquidation amount of $                     per Preferred
Security and all accrued and unpaid Distributions on the Preferred Securities to the date of
payment, to the extent the Issuer shall have funds available therefor, and (b) the amount of assets
of the Issuer remaining available for distribution to Holders after the liquidation of the Issuer
(other than in connection with the distribution of subordinated debt securities to the Holders of
the Preferred Securities of the Issuer in exchange for Preferred Securities as provided in the
Declaration) (in either case, the “Liquidation Distribution”). [If an event of default under the
Indenture has occurred and is continuing, the rights of holders of the Common Securities to receive
payments under the Common Securities Guarantee Agreement are subordinated to the rights of Holders
of Preferred Securities to receive Guarantee Payments.]

          “Holder” shall mean any holder, as registered on the books and records of the Issuer of any
Preferred Securities; provided, however, that, in determining whether the holders of the requisite
percentage of Preferred Securities have given any request, notice, consent or waiver hereunder,
“Holder” shall not include the Guarantor, the Preferred Guarantee Trustee or any Affiliate of the
Guarantor or the Preferred Guarantee Trustee.

          “Indemnified Person” means the Preferred Guarantee Trustee, any Affiliate of the Preferred
Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees,
representatives, nominees, custodians or agents of the Preferred Guarantee Trustee.

          “Indenture” means the Subordinated Indenture, dated as of                           ,      , between the
Guarantor (the “Debenture Issuer”) and The Bank of New York Mellon, as trustee, and any indenture
supplemental thereto pursuant to which certain subordinated debt securities of the Debenture Issuer
are to be issued to the Property Trustee of the Issuer.

          “Majority in liquidation amount of the Securities” means, except as provided by the Trust
Indenture Act, a vote by Holder(s) of Preferred Securities, voting separately as a class, of more
than 50% of the liquidation amount (including the stated amount that would be paid on

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redemption, liquidation or otherwise, plus accrued and unpaid Distributions to the date upon
which the voting percentages are determined) of all Preferred Securities.

          “Officers’ Certificate” means, with respect to any Person, a certificate signed by two
Authorized Officers of such Person. Any Officers’ Certificate delivered with respect to compliance
with a condition or covenant provided for in this Preferred Securities Guarantee shall include:

	 	(a)	 	a statement that each officer signing the Officers’ Certificate
has read the covenant or condition and the definition relating thereto;
	 
	 	(b)	 	a brief statement of the nature and scope of the examination or
investigation undertaken by each officer in rendering the Officers’
Certificate;
	 
	 	(c)	 	a statement that each such officer has made such examination or
investigation as, in such officer’s opinion, is necessary to enable such
officer to express an informed opinion as to whether or not such covenant or
condition has been complied with; and
	 
	 	(d)	 	a statement as to whether, in the opinion of each such officer,
such condition or covenant has been complied with.

          “Person” means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint stock company, limited liability company, trust, unincorporated
association, or government or any agency or political subdivision thereof, or any other entity of
whatever nature.

          “Preferred Guarantee Trustee” means The Bank of New York Mellon, a New York banking
corporation, until a Successor Preferred Guarantee Trustee has been appointed and has accepted such
appointment pursuant to the terms of this Preferred Securities Guarantee and thereafter means each
such Successor Preferred Guarantee Trustee.

          “Responsible Officer” means, with respect to the Preferred Guarantee Trustee, any officer
within the corporate trust department of the Preferred Guarantee Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any
other officer of the Preferred Guarantee Trustee who customarily performs functions similar to
those performed by the Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this
Preferred Securities Guarantee.

          “Successor Preferred Guarantee Trustee” means a successor Preferred Guarantee Trustee
possessing the qualifications to act as Preferred Guarantee Trustee under Section 4.1.

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

          “Trust Securities” means the Common Securities and the Preferred Securities.

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ARTICLE II

TRUST INDENTURE ACT

SECTION 2.1 Trust Indenture Act; Application

          (a) This Preferred Securities Guarantee is subject to the provisions of the Trust Indenture
Act that are required to be part of this Preferred Securities Guarantee and shall, to the extent
applicable, be governed by such provisions; and

          (b) if and to the extent that any provision of this Preferred Securities Guarantee limits,
qualifies or conflicts with the duties imposed by Section 310 to 317, inclusive, of the Trust
Indenture Act, such imposed duties shall control.

SECTION 2.2 Lists of Holders of Securities

          (a) The Guarantor shall provide the Preferred Guarantee Trustee with a list, in such form as
the Preferred Guarantee Trustee may reasonably require, of the names and addresses of the Holders
of the Preferred Securities (“List of Holders”) as of such date, (i) within 1 Business Day after
January 1 and June 30 of each year, and (ii) at any other time within 30 days of receipt by the
Guarantor of a written request for a List of Holders as of a date no more than 14 days before such
List of Holders is given to the Preferred Guarantee Trustee; provided, that the Guarantor shall not
be obligated to provide such List of Holders at any time the List of Holders does not differ from
the most recent List of Holders given to the Preferred Guarantee Trustee by the Guarantor. The
Preferred Guarantee Trustee may destroy any List of Holders previously given to it on receipt of a
new List of Holders.

          (b) The Preferred Guarantee Trustee shall comply with its obligations under Sections 311(a),
311(b) and Section 312(b) of the Trust Indenture Act.

SECTION 2.3 Reports by the Preferred Guarantee Trustee

          Within 60 days after May 15 of each year, the Preferred Guarantee Trustee shall provide to the
Holders of the Preferred Securities such reports as are required by Section 313 of the Trust
Indenture Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture
Act. The Preferred Guarantee Trustee shall also comply with the requirements of Section 313(d) of
the Trust Indenture Act. The Guarantor will promptly notify the Preferred Guarantee Trustee in
writing when the Preferred Securities are listed on any stock exchange and of any delisting
thereof.

SECTION 2.4 Periodic Reports to Preferred Guarantee Trustee

          The Guarantor shall provide to the Preferred Guarantee Trustee, the Securities and Exchange
Commission and the Holders such documents, reports and information as required by Section 314 (if
any) and the compliance certificate required by Section 314 of the Trust Indenture Act in the form,
in the manner and at the times required by Section 314 of the Trust Indenture Act.

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SECTION 2.5 Evidence of Compliance with Conditions Precedent

          The Guarantor shall provide to the Preferred Guarantee Trustee such evidence of compliance
with any conditions precedent, if any, provided for in this Preferred Securities Guarantee that
relate to any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given by an officer pursuant to Section 314(c)(1) may be
given in the form of an Officers’ Certificate.

SECTION 2.6 Events of Default; Waiver

          The Holders of a Majority in liquidation amount of Preferred Securities may, by vote, on
behalf of the Holders of all of the Preferred Securities, waive any past Event of Default and its
consequences. Upon such waiver, any such Event of Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose of this Preferred
Securities Guarantee, but no such waiver shall extend to any subsequent or other default or Event
of Default or impair any right consequent thereon.

SECTION 2.7 Event of Default; Notice

          (a) The Preferred Guarantee Trustee shall, within 90 days after the occurrence of an Event of
Default, transmit by mail, first class postage prepaid, to the Holders of the Preferred Securities,
notices of all Events of Default actually known to a Responsible Officer of the Preferred Guarantee
Trustee, unless such defaults have been cured before the giving of such notice, provided, that,
except in the case of a default in the payment of a Guarantee Payment, the Preferred Guarantee
Trustee shall be protected in withholding such notice if and so long as [the Board of Directors,
the executive committee or a trust committee of directors and/or] a Responsible Officer of the
Preferred Guarantee Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders of the Preferred Securities.

          (b) The Preferred Guarantee Trustee shall not be deemed to have knowledge of any Event of
Default unless the Preferred Guarantee Trustee shall have received written notice, or of which a
Responsible Officer of the Preferred Guarantee Trustee charged with the administration of the
Declaration shall have obtained actual knowledge.

SECTION 2.8 Conflicting Interests

          The Declaration shall be deemed to be specifically described in this Preferred Securities
Guarantee for the purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.

ARTICLE III

POWERS, DUTIES AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE

SECTION 3.1 Powers and Duties of the Preferred Guarantee Trustee

          (a) This Preferred Securities Guarantee shall be held by the Preferred Guarantee Trustee for
the benefit of the Holders of the Preferred Securities, and the Preferred Guarantee Trustee shall
not transfer this Preferred Securities Guarantee to any Person except a

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Holder of Preferred Securities exercising his or her rights pursuant to Section 5.4(b) or to a
Successor Preferred Guarantee Trustee on acceptance by such Successor Preferred Guarantee Trustee
of its appointment to act as Successor Preferred Guarantee Trustee. The right, title and interest
of the Preferred Guarantee Trustee shall automatically vest in any Successor Preferred Guarantee
Trustee, and such vesting and cessation of title shall be effective whether or not conveyancing
documents have been executed and delivered pursuant to the appointment of such Successor Preferred
Guarantee Trustee.

          (b) If an Event of Default actually known to a Responsible Officer of the Preferred Guarantee
Trustee has occurred and is continuing, the Preferred Guarantee Trustee shall enforce this
Preferred Securities Guarantee for the benefit of the Holders of the Preferred Securities.

          (c) The Preferred Guarantee Trustee, before the occurrence of any Event of Default and after
the curing of all Events of Default that may have occurred, shall undertake to perform only such
duties as are specifically set forth in this Preferred Securities Guarantee, and no implied
covenants shall be read into this Preferred Securities Guarantee against the Preferred Guarantee
Trustee. In case an Event of Default has occurred (that has not been cured or waived pursuant to
Section 2.6) and is actually known to a Responsible Officer of the Preferred Guarantee Trustee, the
Preferred Guarantee Trustee shall exercise such of the rights and powers vested in it by this
Preferred Securities Guarantee, and use the same degree of care and skill in its exercise thereof,
as a prudent person would exercise or use under the circumstances in the conduct of his or her own
affairs.

          (d) No provision of this Preferred Securities Guarantee shall be construed to relieve the
Preferred Guarantee Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that:

          (i) prior to the occurrence of any Event of Default and after the curing or waiving of
all such Events of Default that may have occurred:

     (A) the duties and obligations of the Preferred Guarantee Trustee shall be
determined solely by the express provisions of this Preferred Securities Guarantee,
and the Preferred Guarantee Trustee shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this Preferred
Securities Guarantee, and no implied covenants or obligations shall be read into
this Preferred Securities Guarantee against the Preferred Guarantee Trustee; and

     (B) in the absence of bad faith on the part of the Preferred Guarantee Trustee,
the Preferred Guarantee Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Preferred Guarantee Trustee and conforming
to the requirements of this Preferred Securities Guarantee; but in the case of any
such certificates or opinions that by any provision hereof are specifically required
to be furnished to the Preferred Guarantee Trustee, the Preferred Guarantee Trustee
shall be under a duty to examine the same to

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determine whether or not they conform to the requirements hereof or thereof
(but need not confirm or investigate the accuracy of mathematical calculations or
other facts stated therein).

     (ii) the Preferred Guarantee Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer of the Preferred Guarantee Trustee, unless it shall
be proved that the Preferred Guarantee Trustee was negligent in ascertaining the pertinent
facts upon which such judgment was made;

     (iii) the Preferred Guarantee Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the direction of the
Holders of not less than a Majority in liquidation amount of the Preferred Securities
relating to the time, method and place of conducting any proceeding for any remedy available
to the Preferred Guarantee Trustee, or exercising any trust or power conferred upon the
Preferred Guarantee Trustee under this Preferred Securities Guarantee; and

     (iv) no provision of this Preferred Securities Guarantee shall require the Preferred
Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of its rights or
powers, if the Preferred Guarantee Trustee shall have reasonable grounds for believing that
the repayment of such funds or liability is not reasonably assured to it under the terms of
this Preferred Securities Guarantee or indemnity, satisfactory to the Preferred Guarantee
Trustee, against such risk or liability is not reasonably assured to it.

SECTION 3.2 Certain Rights of Preferred Guarantee Trustee

          (a) Subject to the provisions of Section 3.1:

     (i) the Preferred Guarantee Trustee may conclusively rely, and shall be fully protected
in acting or refraining from acting upon, any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document believed by it to be genuine
and to have been signed, sent or presented by the proper party or parties;

     (ii) any direction or act of the Guarantor contemplated by this Preferred Securities
Guarantee shall be sufficiently evidenced by an Officers’ Certificate;

     (iii) whenever, in the administration of this Preferred Securities Guarantee, the
Preferred Guarantee Trustee shall deem it desirable that a matter be proved or established
before taking, suffering or omitting any action hereunder, the Preferred Guarantee Trustee
(unless other evidence is herein specifically prescribed) may, in the absence of bad faith
on its part, request and conclusively rely upon an Officers’ Certificate which, upon receipt
of such request, shall be promptly delivered by the Guarantor;

     (iv) the Preferred Guarantee Trustee shall have no duty to see to any recording, filing
or registration of any instrument (or any rerecording, refiling or registration thereof);

8

 

     (v) the Preferred Guarantee Trustee may consult with counsel of its selection, and the
advice or opinion of such counsel with respect to legal matters shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in accordance with such advice or opinion. Such counsel may be
counsel to the Guarantor or any of its Affiliates and may include any of its employees. The
Preferred Guarantee Trustee shall have the right at any time to seek instructions concerning
the administration of this Preferred Securities Guarantee from any court of competent
jurisdiction;

     (vi) the Preferred Guarantee Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Preferred Securities Guarantee at the request or
direction of any Holder, unless such Holder shall have provided to the Preferred Guarantee
Trustee security and indemnity satisfactory to the Preferred Guarantee Trustee, against the
costs, expenses (including attorneys’ fees and expenses and the expenses of the Preferred
Guarantee Trustee’s agents, nominees or custodians) and liabilities that might be incurred
by it in complying with such request or direction, including such reasonable advances as may
be requested by the Preferred Guarantee Trustee; provided that, nothing contained in this
Section 3.2(a)(vi) shall be taken to relieve the Preferred Guarantee Trustee, upon the
occurrence of an Event of Default, of its obligation to exercise the rights and powers
vested in it by this Preferred Securities Guarantee;

     (vii) the Preferred Guarantee Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Preferred Guarantee Trustee, in its
discretion, may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Preferred Guaranty Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and premises of
the Guarantor, personally or by agent or attorney at the sole cost of the Guarantor and
shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation;

     (viii) the Preferred Guarantee Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through agents, nominees,
custodians or attorneys, and the Preferred Guarantee Trustee shall not be responsible for
any misconduct or negligence on the part of any agent or attorney appointed with due care by
it hereunder;

     (ix) any action taken by the Preferred Guarantee Trustee or its agents hereunder shall
bind the Holders of the Preferred Securities, and the signature of the Preferred Guarantee
Trustee or its agents alone shall be sufficient and effective to perform any such action and
no third party shall be required to inquire as to the authority of the Preferred Guarantee
Trustee to so act or as to its compliance with any of the terms and provisions of this
Preferred Securities Guarantee, both of which shall be conclusively evidenced by the
Preferred Guarantee Trustee’s or its agent’s taking such action;

9

 

     (x) whenever in the administration of this Preferred Securities Guarantee the Preferred
Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing
any remedy or right or taking any other action hereunder, the Preferred Guarantee Trustee
(i) may request instructions from the Holders of a Majority in liquidation amount of the
Preferred Securities, (ii) may refrain from enforcing such remedy or right or taking such
other action until such instructions are received, and (iii) shall be protected in
conclusively relying on or acting in accordance with such instructions;

     (xi) except as otherwise expressly provided by this Preferred Securities Guarantee, the
Preferred Guarantee Trustee shall not be under any obligation to take any action that is
discretionary under the provisions of this Preferred Securities Guarantee;

     (xii) the Preferred Guarantee Trustee shall not be liable for any action taken,
suffered or omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by this Preferred
Securities Guarantee;

     (xiii) in no event shall the Preferred Guarantee Trustee be responsible or liable for
special, indirect, or consequential loss or damage of any kind whatsoever (including, but
not limited to, loss of profit) irrespective of whether the Preferred Guarantee Trustee has
been advised of the likelihood of such loss or damage and regardless of the form of action;

     (xiv) the Preferred Guarantee Trustee shall not be deemed to have notice of any default
or Event of Default unless a Responsible Officer of the Preferred Guarantee Trustee has
actual knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Preferred Guarantee Trustee at the Corporate Trust Office of the
Preferred Guarantee Trustee, and such notice references the Preferred Securities and this
Preferred Securities Guarantee;

     (xv) the rights, privileges, protections, immunities and benefits given to the
Preferred Guarantee Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Preferred Guarantee Trustee in each of its
capacities hereunder, and each agent, custodian and other Person employed to act hereunder;
and

     (xvi) the Preferred Guarantee Trustee may request that the Guarantor deliver a
certificate setting forth the names of individuals and/or titles of officers authorized at
such time to take specified actions pursuant to this Preferred Securities Guarantee.

          (b) No provision of this Preferred Securities Guarantee shall be deemed to impose any duty or
obligation on the Preferred Guarantee Trustee to perform any act or acts or exercise any right,
power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be
illegal, or in which the Preferred Guarantee Trustee shall be unqualified or incompetent in
accordance with applicable law, to perform any such act or acts or to exercise any

10

 

such right, power, duty or obligation. No permissive power or authority available to the
Preferred Guarantee Trustee shall be construed to be a duty.

SECTION 3.3 Not Responsible for Recitals or Issuance of Preferred Securities Guarantee

          The recitals contained in this Preferred Securities Guarantee shall be taken as the statements
of the Guarantor, and the Preferred Guarantee Trustee does not assume any responsibility for their
correctness. The Preferred Guarantee Trustee makes no representation as to the validity or
sufficiency of this Preferred Securities Guarantee.

ARTICLE IV

PREFERRED GUARANTEE TRUSTEE

SECTION 4.1 Preferred Guarantee Trustee; Eligibility

          (a) There shall at all times be a Preferred Guarantee Trustee which shall:

     (i) not be an Affiliate of the Guarantor; and

     (ii) be a corporation organized and doing business under the laws of the United States
of America or any State or Territory thereof or of the District of Columbia, or a
corporation or Person permitted by the Securities and Exchange Commission to act as an
institutional trustee under the Trust Indenture Act, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least 50 million U.S.
dollars ($50,000,000), and subject to supervision or examination by Federal, State,
Territorial or District of Columbia authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the supervising or
examining authority referred to above, then, for the purposes of this Section 4.1(a)(ii),
the combined capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published.

          (b) If at any time the Preferred Guarantee Trustee shall cease to be eligible to so act under
Section 4.1(a), the Preferred Guarantee Trustee shall immediately resign in the manner and with the
effect set out in Section 4.2(c).

          (c) If the Preferred Guarantee Trustee has or shall acquire any “conflicting interest” within
the meaning of Section 310(b) of the Trust Indenture Act, the Preferred Guarantee Trustee and
Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

SECTION 4.2 Appointment, Removal and Resignation of Preferred Guarantee Trustee

          (a) Subject to Section 4.2(b), the Preferred Guarantee Trustee may be appointed or removed
without cause at any time by the Guarantor except during an Event of Default.

          (b) The Preferred Guarantee Trustee shall not be removed in accordance with Section 4.2(a)
until a Successor Preferred Guarantee Trustee has been appointed and has

11

 

accepted such appointment by written instrument executed by such Successor Preferred Guarantee
Trustee and delivered to the Guarantor.

          (c) The Preferred Guarantee Trustee appointed to office shall hold office until a Successor
Preferred Guarantee Trustee shall have been appointed or until its removal or resignation. The
Preferred Guarantee Trustee may resign from office (without need for prior or subsequent
accounting) by an instrument in writing executed by the Preferred Guarantee Trustee and delivered
to the Guarantor, which resignation shall not take effect until a Successor Preferred Guarantee
Trustee has been appointed and has accepted such appointment by instrument in writing executed by
such Successor Preferred Guarantee Trustee and delivered to the Guarantor and the resigning
Preferred Guarantee Trustee.

          (d) If no Successor Preferred Guarantee Trustee shall have been appointed and accepted
appointment as provided in this Section 4.2 within 60 days after delivery of an instrument of
removal or resignation, the Preferred Guarantee Trustee resigning or being removed may petition any
court of competent jurisdiction for appointment of a Successor Preferred Guarantee Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a
Successor Preferred Guarantee Trustee.

          (e) No Preferred Guarantee Trustee shall be liable for the acts or omissions to act of any
Successor Preferred Guarantee Trustee.

          (f) Upon termination of this Preferred Securities Guarantee or removal or resignation of the
Preferred Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to the Preferred
Guarantee Trustee all amounts accrued to the date of such termination, removal or resignation.

ARTICLE V

GUARANTEE

SECTION 5.1 Guarantee

          The Guarantor irrevocably and unconditionally agrees to pay in full, on a subordinated basis,
to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the
Issuer), as and when due, regardless of any defense, right of set-off or counterclaim that the
Issuer may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied
by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer
to pay such amounts to the Holders.

SECTION 5.2 Waiver of Notice and Demand

          The Guarantor hereby waives notice of acceptance of this Preferred Securities Guarantee and of
any liability to which it applies or may apply, presentment, demand for payment, any right to
require a proceeding first against the Preferred Guarantee Trustee, the Issuer or any other Person
before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice
of redemption and all other notices and demands.

12

 

SECTION 5.3 Obligations Not Affected

          The obligations, covenants, agreements and duties of the Guarantor under this Preferred
Securities Guarantee shall in no way be affected or impaired by reason of the happening from time
to time of any of the following:

          (a) the release or waiver, by operation of law or otherwise, of the performance or observance
by the Issuer of any express or implied agreement, covenant, term or condition relating to the
Preferred Securities to be performed or observed by the Issuer;

          (b) the extension of time for the payment by the Issuer of all or any portion of the
Distributions, Redemption Price, Liquidation Distribution or any other sums payable under the terms
of the Preferred Securities or the extension of time for the performance of any other obligation
under, arising out of, or in connection with, the Preferred Securities (other than an extension of
time for payment of Distributions, Redemption Price, Liquidation Distribution or other sum payable
that results from the extension of any interest payment period on the Debentures or any extension
of the maturity date of the Debentures permitted by the Indenture);

          (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce,
assert or exercise any right, privilege, power or remedy conferred on the Holders pursuant to the
terms of the Preferred Securities, or any action on the part of the Issuer granting indulgence or
extension of any kind;

          (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the
Issuer or any of the assets of the Issuer;

          (e) any invalidity of, or defect or deficiency in, the Preferred Securities;

          (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or

          (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a guarantor, it being the intent of this Section 5.3 that the obligations
of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances.

          There shall be no obligation of the Holders to give notice to, or obtain consent of, the
Guarantor with respect to the happening of any of the foregoing.

SECTION 5.4 Rights of Holders

          (a) The Holders of a Majority in liquidation amount of the Preferred Securities have the right
to direct the time, method and place of conducting of any proceeding for any remedy available to
the Preferred Guarantee Trustee in respect of this Preferred Securities Guarantee or exercising any
trust or power conferred upon the Preferred Guarantee Trustee under this Preferred Securities
Guarantee.

13

 

          (b) If the Preferred Guarantee Trustee fails to enforce such Preferred Securities Guarantee,
any Holder of Preferred Securities may institute a legal proceeding directly against the Guarantor
to enforce the Preferred Guarantee Trustee’s rights under this Preferred Securities Guarantee,
without first instituting a legal proceeding against the Issuer, the Preferred Guarantee Trustee or
any other person or entity. The Guarantor waives any right or remedy to require that any action be
brought first against the Issuer or any other person or entity before proceeding directly against
the Guarantor.

SECTION 5.5 Guarantee of Payment

          This Preferred Securities Guarantee creates a guarantee of payment and not of collection.

SECTION 5.6 Subrogation

          The Guarantor shall be subrogated to all (if any) rights of the Holders of Preferred
Securities against the Issuer in respect of any amounts paid to such Holders by the Guarantor under
this Preferred Securities Guarantee; provided, however, that the Guarantor shall not (except to the
extent required by mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all
cases as a result of payment under this Preferred Securities Guarantee, if, at the time of any such
payment, any amounts are due and unpaid under this Preferred Securities Guarantee. If any amount
shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the Holders.

SECTION 5.7 Independent Obligations

          The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Preferred Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this
Preferred Securities Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 5.3 hereof.

ARTICLE VI

LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 Limitation of Transactions

          So long as any Preferred Securities remain outstanding, if there shall have occurred an Event
of Default or an event of default under the Declaration, then (a) the Guarantor shall not declare
or pay any dividend on, make any distributions with respect to, or redeem, purchase, acquire or
make a liquidation payment with respect to, any of its capital stock (other than (i) dividends or
distributions in common stock of the Guarantor, (ii) redemptions or repurchases of any rights, or
the declaration of a dividend of any rights, or the issuance of any security under any existing and
future rights plan of the Guarantor, (iii) purchases or acquisitions of shares of Common Stock in
connection with the satisfaction by the Guarantor of its obligations under any employee benefit
plans, (iv) as a result of a reclassification of the

14

 

Guarantor’s capital stock or the exchange or conversion of one class or series of the
Guarantor’s capital stock for another class or series of the Guarantor’s capital stock or (v) the
purchase of fractional interests in shares of the Guarantor’s capital stock pursuant to the
conversion or exchange provisions of such capital stock of the Guarantor or the security being
converted or exchanged) or make any guarantee payments with respect to the foregoing and (b) the
Guarantor shall not make any payment of interest, principal or premium, if any, on or repay,
repurchase or redeem any debt securities (including guarantees) issued by the Guarantor which rank
pari passu with or junior to the Debentures.

SECTION 6.2 Ranking

          This Preferred Securities Guarantee will constitute an unsecured obligation of the Guarantor
and will rank (i) subordinate and junior in right of payment to all other liabilities of the
Guarantor, (ii) pari passu with the most senior preferred or preference stock now or hereafter
issued by the Guarantor and with any guarantee now or hereafter entered into by the Guarantor in
respect of any preferred or preference stock of any Affiliate of the Guarantor, and (iii) senior to
the Guarantor’s Common Stock.

ARTICLE VII

TERMINATION

SECTION 7.1 Termination

          This Preferred Securities Guarantee shall terminate upon (i) full payment of the Redemption
Price of all Preferred Securities, (ii) upon the distribution of the Debentures to the Holders of
all of the Preferred Securities or (iii) upon full payment of the amounts payable in accordance
with the Declaration upon liquidation of the Issuer. Notwithstanding the foregoing, this Preferred
Securities Guarantee will continue to be effective or will be reinstated, as the case may be, if at
any time any Holder of Preferred Securities must restore payment of any sums paid under the
Preferred Securities or under this Preferred Securities Guarantee.

ARTICLE VIII

INDEMNIFICATION

SECTION 8.1 Exculpation

          (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise
to the Guarantor or any Covered Person for any loss, damage or claim incurred by reason of any act
or omission performed or omitted by such Indemnified Person in good faith in accordance with this
Preferred Securities Guarantee and in a manner that such Indemnified Person reasonably believed to
be within the scope of the authority conferred on such Indemnified Person by this Preferred
Securities Guarantee or by law, except that an Indemnified Person shall be liable for any such
loss, damage or claim incurred by reason of such Indemnified Person’s negligence or willful
misconduct with respect to such acts or omissions.

          (b) An Indemnified Person shall be fully protected in relying in good faith upon the records
of the Guarantor and upon such information, opinions, reports or statements presented to the
Guarantor by any Person as to matters the Indemnified Person reasonably

15

 

believes are within such other Person’s professional or expert competence and who has been
selected with reasonable care by or on behalf of the Guarantor, including information, opinions,
reports or statements as to the value and amount of the assets, liabilities, profits, losses, or
any other facts pertinent to the existence and amount of assets from which Distributions to Holders
of Preferred Securities might properly be paid.

SECTION 8.2 Indemnification

          The Guarantor agrees to indemnify each Indemnified Person for, and to hold each Indemnified
Person harmless against, any and all loss, liability, damage, claim or expense incurred without
negligence or bad faith on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and expenses (including
reasonable legal fees and expenses) of defending itself against, or investigating, any claim or
liability in connection with the exercise or performance of any of its powers or duties hereunder.
The obligation to indemnify as set forth in this Section 8.2 shall survive the termination of this
Preferred Securities Guarantee.

ARTICLE IX

MISCELLANEOUS

SECTION 9.1 Successors and Assigns

          All guarantees and agreements contained in this Preferred Securities Guarantee shall bind the
successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to
the benefit of the Holders of the Preferred Securities then outstanding. Except in connection with
a consolidation, merger or sale involving the Guarantor that is permitted under Article Five of the
Indenture and pursuant to which the assignee agrees in writing to perform the Guarantor’s
obligations hereunder, the Guarantor shall not assign its obligations hereunder.

SECTION 9.2 Amendments

          Except with respect to any changes that do not adversely affect the rights of Holders in any
material respect (in which case no consent of Holders will be required), this Preferred Securities
Guarantee may only be amended with the prior approval of the Holders of at least a Majority in
liquidation amount (including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages are
determined) of all the outstanding Preferred Securities. The provisions of Section 12.2 of the
Declaration with respect to meetings of Holders of the Securities apply to the giving of such
approval.

16

 

SECTION 9.3 Notices

          All notices provided for in this Preferred Securities Guarantee shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or mailed by first class
mail, as follows:

          (a) If given to the Preferred Guarantee Trustee, at the Preferred Guarantee Trustee’s mailing
address set forth below (or such other address as the Preferred Guarantee Trustee may give notice
of to the Holders of the Preferred Securities):

The Bank of New York Mellon

101 Barclay Street, Floor 8W

New York, New York 10286

Attention: Corporate Trust Administration

Telephone: (212) 815-5360

Facsimile: (212) 815-5704

          (b) If given to the Guarantor, at the Guarantor’s mailing address set forth below (or such
other address as the Guarantor may give notice of to the Holders of the Preferred Securities):

The Navigators Group, Inc.

Reckson Executive Park

6 International Drive

Rye Brook, New York 10573

Attention: Francis W. McDonnell, Senior Executive Vice President and
Chief Financial Officer

Facsimile No: (914) 933-6033

          (c) If given to any Holder of Preferred Securities, at the address set forth on the books and
records of the Issuer.

          All such notices shall be deemed to have been given when received in person, telecopied with
receipt confirmed, or mailed by first class mail, postage prepaid except that if a notice or other
document is refused delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered on the date of such
refusal or inability to deliver.

SECTION 9.4 Benefit

          This Preferred Securities Guarantee is solely for the benefit of the Holders of the Preferred
Securities and, subject to Section 3.1(a), is not separately transferable from the Preferred
Securities.

SECTION 9.5 Governing Law

          THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF

17

 

THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

SECTION 9.6 Waiver of Jury Trial

          EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS DECLARATION, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

SECTION 9.7 Force Majeure

          In no event shall the Preferred Guarantee Trustee be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or
indirectly, forces beyond its control, including, without limitation, strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

18

 

          THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and year first above written.

	 	 	 	 	 
	 	THE NAVIGATORS GROUP, INC.,

as Guarantor

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK MELLON,

as Preferred Guarantee Trustee

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of Preferred Securities Guaranteeexv4w1

Exhibit 4.1

UTi Worldwide Inc.

2009 Long-Term Incentive Plan

 

Plan Document

 

1. Establishment, Purpose, and Types of Awards. UTi Worldwide Inc. (the “Company”)
hereby establishes this equity-based incentive compensation plan to be known as the “UTi Worldwide
Inc. 2009 Long-Term Incentive Plan” (hereinafter referred to as the “Plan”), for the
following purposes: (a) to enhance the Company’s ability to attract highly qualified personnel; (b)
to strengthen its retention capabilities; (c) to enhance the long-term performance and
competitiveness of the Company; and (d) to align the interests of Participants with those of the
Company’s shareholders.

     (a) Effective Date. This Plan shall become effective upon the date adopted by the Board of
Directors of the Company; provided that no Awards shall be granted hereunder until the Plan has
been approved by a vote of a majority of the votes cast at a duly held meeting of the Company’s
shareholders (or by such other shareholder vote that the Committee determines to be sufficient for
the issuance of Shares and Awards according to the Company’s governing documents and Applicable
Law).

     (b) Awards. The Plan permits the granting of the following types of Awards according to the
Sections of the Plan listed here:

	 	 	 	 
	 	Section 5

	 	Stock Options
	 	Section 6

	 	Share Appreciation Rights (SARs)
	 	Section 7

	 	Restricted Shares, Restricted Share Units (RSUs), and
Unrestricted Shares
	 	Section 8

	 	Deferred Share Units (DSUs)
	 	Section 9

	 	Performance Awards

     (c) Appendices. Incorporated by reference and thereby part of the Plan are the terms set
forth in the following appendices:

	 	 	 	 
	 	Appendix I

	 	Definitions
	 	Appendix II

	 	Special U.S. provisions regarding tax and securities compliance

     (d) Effect on Other Plans, Awards, and Arrangements. This Plan is not intended to affect and
shall not affect any stock options, equity-based compensation, or other benefits that the Company
or its Affiliates may have provided, or may separately provide in the future, pursuant to any
agreement, plan, or program that is independent of this Plan. Notwithstanding the foregoing,
effective upon shareholder approval of this Plan, no further awards shall be granted under the
Company’s 2004 Long-Term Incentive Plan.

 

 

2. Defined Terms. Terms in the Plan and any Appendix that begin with an initial capital
letter have the defined meaning set forth in Appendix I, unless the context indicates a different
meaning.

3. Shares Subject to the Plan. Subject to adjustment pursuant to Section 13 below, a total
of 6,250,000 Shares shall be available for issuance under the Plan. The Shares deliverable
pursuant to Awards shall be authorized, but unissued Shares, or Shares that the Company otherwise
holds in treasury or in trust. Any Shares subject to an Award that is settled in cash rather than
in Shares, or subject to an Award that expires or is forfeited, cancelled or otherwise terminated
without the issuance of some or all of the Shares subject to the Award will again be available for
future Awards to the extent of such cash settlement, or non-issuance due to expiration, forfeiture,
cancellation or termination. In addition, previously-issued Shares that are not related to a
particular Award (e.g., Shares already owned by a Participant) and Shares subject to an Award that
are tendered or withheld by the Company in payment of all or part of the exercise price of such
Award or in satisfaction of applicable Withholding Taxes shall be added to the number of Shares
available for issuance under the Plan. Further, and to the extent permitted under Applicable Laws:
(i) the maximum number of Shares available for delivery under the Plan shall not be reduced by any
Shares issued under the Plan through the settlement, assumption, or substitution of outstanding
awards or obligations to grant future awards in connection with the acquisition by the Company (or
an Affiliate of the Company) of another entity; and (ii) the maximum number of Shares available for
delivery under the Plan shall be increased by the number of shares available for issuance under any
shareholder approved plan of an entity acquired by the Company or an Affiliate of the Company (as
such number has been equitably adjusted by the Committee to give effect to the acquisition).

4. Eligibility.

     (a) General Rule. Awards may only be made to Eligible Persons (as determined for each Award
on its Grant Date). Each Award shall be evidenced by an Award Agreement that sets forth its Grant
Date and all other terms and conditions of the Award, that is signed on behalf of the Company (or
delivered by an authorized agent through an electronic medium), and that, if required by the
Committee, is signed by the Eligible Person as an acceptance of the Award. The grant of an Award
shall not obligate the Company or any Affiliate to continue the employment or service of any
Eligible Person, or to provide any future Awards or other remuneration at any time thereafter.

     (b) Limits on Individual Awards. During any calendar year, no Participant may receive Options
and SARs under the Plan that relate to more than 1,000,000 Shares, subject to adjustment pursuant
to Section 13 below.

     (c) Replacement Awards. Subject to Applicable Laws (including any associated shareholder
approval requirements), the Committee may, in its sole discretion and upon such terms as it deems
appropriate, require as a condition for granting an Award that an Eligible Person surrender for
cancellation some or all Awards that have previously been granted under this Plan or otherwise. An
Award conditioned upon such surrender may or may not be the same type of Award, may cover the same
(or a lesser or greater) number of Shares as such surrendered Award, may have other terms that are
determined without regard to the terms or conditions of such surrendered Award, and may contain any
other terms that the Committee deems appropriate. Except in connection with a Change in Control,
Options or SARs with a per Share exercise price (as adjusted pursuant to Section 13 below) higher
than Fair Market Value may not be cancelled under this Section 4(c) without the approval of the
Company’s shareholders.

2

 

5. Stock Options.

     (a) Grants. The Committee may grant Options to Eligible Persons pursuant to Award Agreements
setting forth terms and conditions that are not inconsistent with the Plan, and that may include
vesting or other requirements for the right to exercise the Option; provided that —

     (i) the exercise price for Shares subject to purchase through exercise of an Option
shall not be less than 100% of the Fair Market Value of the underlying Shares on the Grant
Date; and

     (ii) no Option shall be exercisable for a term ending more than ten years after its
Grant Date.

     (b) Method of Exercise. Subject to Section 14 below, Options may be exercised by the
Participant (or his guardian or personal representative) giving notice to the Company pursuant to
procedures established by the Company for the exercise of Options. Such notice shall state the
number of Shares the Participant has elected to purchase under the Option and the method by which
the exercise price and any applicable Withholding Taxes will be paid. The exercise price and
Withholding Taxes may be paid in cash or check payable to the Company (in U.S. dollars), or to the
extent that the Committee or the terms of an Award Agreement expressly permit, all or any part of
the exercise price or Withholding Taxes may be satisfied —

     (i) by delivery or attestation of Shares (valued at their Fair Market Value) that are
subject to the Option being exercised or that the Participant already owns;

     (ii) by delivery of a properly executed exercise notice with irrevocable instructions
to a broker to deliver to the Company the amount necessary to pay the exercise price or
Withholding Taxes from the sale or proceeds of a loan from the broker with respect to the
sale of Shares or a broker loan secured by Shares; or

     (iii) by a combination of (i) and (ii).

An Award Agreement for an Option may provide that, if, on the date upon which such Option or any
portion thereof is to expire, Fair Market Value exceeds the per Share exercise price of such Option
and if such Option or portion thereof that will expire is otherwise exercisable, the Option shall
be automatically exercised by delivery of Shares that are subject to such Option in satisfaction of
the exercise price and any applicable Withholding Taxes.

     (c) Exercise of an Unvested Option. The Committee in its sole discretion may allow a
Participant to exercise an unvested Option, in which case the Shares then issued shall be
Restricted Shares having analogous vesting restrictions to the unvested Option.

     (d) Termination of Continuous Service. The Committee may establish and set forth in the
applicable Award Agreement the terms and conditions on which an Option shall remain exercisable
following termination of a Participant’s Continuous Service. Except to the extent an Award
Agreement specifically provides otherwise, an Option shall be exercisable, only to the extent the
Participant was entitled to exercise such Option at the date of terminating Continuous Service,
only until the “Option Termination Date” determined pursuant to the following table:

3

 

	 	 	 
	Reason for terminating Continuous Service	 	Option Termination Date
	 
	 	 
	(i) By the Company for Cause, or what
would have been Cause if the Company had
known all of the relevant facts.

	 	Termination of the
Participant’s Continuous
Service, or when Cause first
existed if earlier.
	 
	 	 
	(ii) Disability of the Participant.

	 	Within one year after
termination of the
Participant’s Continuous
Service.
	 
	 	 
	(iii) Retirement of the Participant after
age 60 with 5 years or more of Continuous
Service.

	 	Within one year after
termination of the
Participant’s Continuous
Service.
	 
	 	 
	(iv) Death of the Participant during
Continuous Service or within 90 days
thereafter.

	 	Within one year after
termination of the
Participant’s Continuous
Service.
	 
	 	 
	(v) Other than due to Cause or the
Participant’s Disability, Retirement, or
Death.

	 	Within 90 days after
termination of the
Participant’s Continuous
Service.

     Notwithstanding the foregoing, in no event may any Option be exercised after the expiration of
the Option term as set forth in the Award Agreement. To the extent that a Participant is not
entitled to exercise an Option at the date of his or her termination of Continuous Service, or if
the Participant (or other person entitled to exercise the Option) does not exercise the Option to
the extent so entitled within the time specified in the Award Agreement or above (as applicable),
the Option shall terminate and the Shares underlying the unexercised portion of the Option shall
revert to the Plan and become available for future Awards.

     (e) Buyout. If a Participant so elects, the Committee may cancel an Option in exchange for a
payment to a Participant in cash, cash equivalents, new Awards, or Shares, at such time and on such
terms and conditions as the Committee shall have established and communicated to the Participant;
provided, however, that, except in connection with a Change in Control, the per Share exercise
price of any Option cancelled pursuant to this Section 5(e) (as adjusted pursuant to Section 13
below) shall not be greater than the Fair Market Value of a Share on such date unless the terms of
the cancellation of such Option are approved by the shareholders of the Company. In addition, but
subject to Section 4(c) above and to any shareholder approval requirement of Applicable Law, if the
Fair Market Value for Shares subject to an Option is more than 33% below their exercise price for
more than 30 consecutive business days, the Committee may unilaterally terminate and cancel the
Option by providing each affected Participant with either cash or a new Award that has (i) a value
equal to that of the vested portion of the Option being cancelled (with value being uniformly
determined as of the buyout date in accordance with the methodology that the Company generally uses
for financial accounting purposes for its Awards), (ii) vesting terms not less favorable to the
Participant than the Option being cancelled, and (iii) any other terms and conditions that the
Committee may set forth in the Award Agreement for the new Award; subject, except in connection
with a Change in Control, to shareholder approval of any cash payments or new Awards or other
program involving the cancellation of Options in exchange for Option grants having a lower exercise
price.

4

 

6. SARs.

     (a) Grants. The Committee may grant SARs to Eligible Persons pursuant to Award Agreements
setting forth terms and conditions that are not inconsistent with the Plan; provided that:

     (i) the exercise price for the Shares subject to each SAR shall not be less than 100%
of the Fair Market Value of the underlying Shares on the Grant Date;

     (ii) no SAR shall be exercisable for a term ending more than ten years after its Grant
Date; and

     (iii) each SAR shall, except to the extent a SAR Award Agreement provides otherwise, be
subject to the provisions of Section 5(d) relating to the effect of a termination of
Participant’s Continuous Service and shall be subject to the provisions of Section 5(e)
relating to buyouts, in each case with “SAR” being substituted for “Option.”

     (b) Settlement. Subject to Section 14 below, a SAR shall entitle the Participant, upon
exercise of the SAR, to receive Shares having a Fair Market Value on the date of exercise equal to
the product of the number of Share as to which the SAR is being exercised, and the excess of (i)
the Fair Market Value, on such date, of the Shares covered by the exercised SAR, over (ii) an
exercise price designated in the SAR Award Agreement. Notwithstanding the foregoing, a SAR Award
Agreement may limit the total settlement value that the Participant will be entitled to receive
upon the SAR’s exercise, and may provide for settlement either in cash or in any combination of
cash or Shares that the Committee may authorize pursuant to an Award Agreement. An Award Agreement
for a SAR may provide that, if, on the date upon which such SAR or any portion thereof is to
expire, the Fair Market Value exceeds the per Share exercise price of such SAR and if such SAR or
portion thereof that will expire is otherwise exercisable, the SAR shall be automatically exercised
and settled pursuant to this Section 6(b).

     (c) SARs related to Options. The Committee may grant SARs either concurrently with the grant
of an Option or with respect to an outstanding Option, in which case the SAR shall extend to all or
a portion of the Shares covered by the related Option and have an exercise price not less than the
exercise price of the related Option. A SAR related to an Option shall entitle the Participant who
holds the related Option, upon exercise of the SAR and surrender of the related Option, or portion
thereof, to the extent the SAR and related Option each were previously unexercised, to receive
payment of an amount determined pursuant to Section 6(b) above.

7. Restricted Shares, RSUs, and Unrestricted Share Awards.

     (a) Grant. The Committee may grant Restricted Share, RSU, or Unrestricted Share Awards to
Eligible Persons, in all cases pursuant to Award Agreements setting forth terms and conditions that
are not inconsistent with the Plan. The Committee shall establish as to each Restricted Share or
RSU Award the number of Shares deliverable or subject to the Award (which number may be determined
by a written formula), and the period or periods of time (the “Restriction Period”) at the
end of which all or some restrictions specified in the Award Agreement shall lapse and the
Participant shall receive unrestricted Shares (or cash to the extent provided in the Award
Agreement) in settlement of the Award. Such restrictions may include, without limitation,
restrictions concerning voting rights and transferability and such restrictions may lapse
separately or

5

 

in combination at such times and pursuant to such circumstances or based on such criteria as
selected by the Committee, including, without limitation, criteria based on the Participant’s
duration of employment, directorship or consultancy with the Company, individual, group, or
divisional performance criteria, Company performance, or other criteria selection by the Committee.
The Committee may make Restricted Share and RSU Awards with or without the requirement for payment
of cash or other consideration. In addition, the Committee may grant Awards hereunder in the form
of Unrestricted Shares which shall vest in full upon the Grant Date or such other date as the
Committee may determine or which the Committee may issue pursuant to any program under which one or
more Eligible Persons (selected by the Committee in its sole discretion) elect to pay for such
Shares or to receive Unrestricted Shares in lieu of cash bonuses that would otherwise be paid.

     (b) Vesting and Forfeiture. The Committee shall set forth in an Award Agreement granting
Restricted Shares or RSUs, the terms and conditions under which the Participant’s interest in the
Restricted Shares or the Shares subject to RSUs will become vested and non-forfeitable. Except as
set forth in the applicable Award Agreement or the Committee otherwise determines, upon termination
of a Participant’s Continuous Service for any reason, the Participant shall forfeit his or her
Restricted Shares and RSUs to the extent the Participant’s interest therein has not vested on or
before such termination date; provided that if a Participant purchases Restricted Shares and
forfeits them for any reason, the Company shall return the purchase price to the Participant to the
extent either set forth in an Award Agreement or required by Applicable Laws.

     (c) Certificates for Restricted Shares. Unless otherwise provided in an Award Agreement, the
Company shall hold certificates representing Restricted Shares and dividends (whether in Shares or
cash) that accrue with respect to them until the restrictions lapse, and the Participant shall
provide the Company with appropriate stock powers endorsed in blank. The Participant’s failure to
provide such stock powers within ten days after a written request from the Company shall entitle
the Committee to unilaterally declare a forfeiture of all or some of the Participant’s Restricted
Shares.

     (d) Issuance of Shares upon Vesting. As soon as practicable after vesting of a Participant’s
Restricted Shares (or of the right to receive Shares underlying RSUs), the Company shall deliver to
the Participant, free from vesting restrictions, one Share for each surrendered and vested
Restricted Share (or deliver one Share free of the vesting restriction for each vested RSU), unless
an Award Agreement provides otherwise and subject to Section 10 below regarding Withholding Taxes.
No fractional Shares shall be distributed, and cash shall be paid in lieu thereof.

     (e) Dividends Payable on Vesting. Whenever Shares are deliverable to a Participant (or
duly-authorized transferee) pursuant to Section 7(d) above as a result of the vesting of a
Restricted Share or RSU Award, the Participant or his or her duly authorized transferee shall also
be entitled to receive, with respect to each Share then vesting, a number of Shares equal to the
sum of —

     (i) any per-Share dividends which were declared and paid in Shares to the Company’s
shareholders of record between the Grant Date and the date Shares are delivered to the
Participant pursuant to the particular vesting event for the Award; and

     (ii) the Shares that the Participant could have purchased at their Fair Market Value on
the payment date of any cash dividends if the Participant had received such cash dividends
with respect to each Restricted Share, or Share subject to an RSU, between the

6

 

Grant Date and the date Shares are delivered to the Participant pursuant to the
particular vesting event for the Award.

     (f) Deferral Elections for RSUs. To the extent specifically provided in an Award Agreement, a
Participant may irrevocably elect, in accordance with Section 8 below, to defer the receipt of all
or a percentage of the Shares that would otherwise be transferred to the Participant upon the
vesting of an RSU Award. If the Participant makes this election: (i) the Company shall credit the
Shares subject to the election, and any associated dividends, to a DSU account established pursuant
to Section 8 below on the date such Shares and any associated dividends would otherwise have been
delivered to the Participant pursuant to Sections 7(d) and 7(e) above, and (ii) any vesting that
would have occurred within the 12-month period following the date of the Participant’s election
shall occur on the 12-month anniversary of such election, provided that vesting may occur
immediately upon the Participant’s death or Disability if so provided in the Award Agreement.

8. DSUs.

     (a) Grants of DSUs. The Committee may make DSU awards to any Eligible Persons pursuant to
Award Agreements, regardless of whether or not there is a deferral of compensation, and may permit
select Eligible Persons to irrevocably elect, on a form provided by and acceptable to the Committee
(the “Election Form”), to forego the receipt of cash or other compensation (including the
Shares deliverable pursuant to any RSU Award) and in lieu thereof to have the Company credit to an
internal Plan account a number of DSUs having a Fair Market Value equal to the Shares and other
compensation deferred. These credits will be made at the end of each calendar quarter (or other
period determined by the Committee) during which compensation is deferred. Unless the Company
sends an Eligible Person a written notice rejecting an Election Form within five business days
after the Company receives it, an Election Form shall take effect on the first day of the next
calendar year (or on the first day of the next calendar month in the case of an initial election
within 30 days after a Participant becomes first eligible to defer hereunder) after its delivery to
the Company. Notwithstanding the foregoing sentence, a Participant’s Election Form will be
ineffective with respect to any compensation that the Participant earns before the date on which
the Election Form takes effect.

     (b) Vesting. Unless an Award Agreement expressly provides otherwise, each Participant shall
be 100% vested at all times in any Shares subject to DSUs.

     (c) Issuances of Shares. Unless an Award Agreement or the Committee expressly provides
otherwise, the Company shall settle a Participant’s DSU Award, by delivering one Share for each
DSU, in five substantially equal annual installments that are issued before the last day of each of
the five calendar years that end after the date on which the Participant’s Continuous Service ends
for any reason, subject to —

     (i) the Participant’s right to elect a different form of distribution, only on a form
provided by and acceptable to the Committee, that permits the Participant to select any
combination of a lump sum and annual installments that are triggered by, and completed
within ten years following, the last day of the Participant’s Continuous Service; and

     (ii) the Company’s acceptance of the Participant’s distribution election form executed
at the time the Participant elects to defer the receipt of Shares or other

7

 

compensation pursuant to Section 8(a), provided that the Participant may change a
distribution election through any subsequent election that (I) the Participant delivers to
the Company at least one year before the date on which distributions are otherwise scheduled
to commence pursuant to the Participant’s initial distribution election, and (II) defers the
commencement of distributions by at least five years from the originally scheduled
distribution commencement date.

     Fractional shares shall not be issued, and instead shall be paid out in cash.

     (d) Dividends. Unless otherwise provided in an Award Agreement, whenever Shares are issued to
a Participant pursuant to Section 9(c) above, the Participant shall also be entitled to receive,
with respect to each Share issued, a number of Shares determined in a manner consistent with
Section 7(e) above (but by reference to the period from the Grant Date of the DSU to its settlement
through the issuance of Shares to the Participant).

     (e) Emergency Withdrawals. In the event that a Participant suffers an unforeseeable emergency
within the contemplation of this Section, the Participant may apply to the Committee for an
immediate distribution of all or a portion of the Participant’s DSUs. The unforeseeable emergency
must result from a sudden and unexpected illness or accident of the Participant, the Participant’s
spouse, or a dependent of the Participant, casualty loss of the Participant’s property, or other
similar extraordinary and unforeseeable conditions beyond the control of the Participant. The
Committee shall, in its sole and absolute discretion, determine whether a Participant has a
qualifying unforeseeable emergency, may require independent verification of the emergency, and may
determine whether or not to provide the Participant with cash or Shares. The amount of any
distribution hereunder shall be limited to the amount necessary to relieve the Participant’s
unforeseeable emergency plus amounts necessary to pay taxes reasonably anticipated as a result of
the distribution. The number of Shares subject to the Participant’s DSU Award shall be reduced by
any Shares distributed to the Participant and by a number of Shares having a Fair Market Value on
the date of the distribution equal to any cash paid to the Participant pursuant to this Section.

     (f) Unsecured Rights to Deferred Compensation. A Participant’s right to DSUs shall at all
times constitute an unsecured promise of the Company to pay benefits as they come due. The right
of the Participant (or the Participant’s duly-authorized transferee) to receive benefits hereunder
shall be solely an unsecured claim against the general assets of the Company. Neither the
Participant nor the Participant’s duly-authorized transferee shall have any claim against or rights
in any specific assets, Shares, or other funds of the Company.

9. Performance Awards.

     (a) Performance Awards. Subject to the limitations set forth in paragraph (b) hereof, the
Committee may in its discretion grant Performance Awards, including Performance Units, to any
Eligible Person that (i) have substantially the same financial benefits and other terms and
conditions as Options, SARs, RSUs, or DSUs, and/or (ii) are settled only in cash. A Performance
Award is an Award which is based on the achievement of specific goals with respect to the Company
or any Affiliate or the individual performance of the Participant, or any combination thereof, over
a specified period of time. All Performance Awards shall be made pursuant to Award Agreements
setting forth terms and conditions that are not inconsistent with the Plan.

8

 

     (b) Deferral Elections. At any time prior to the date that is both at least six months before
the close of a Performance Period (or shorter or longer period that the Committee selects) with
respect to a Performance Award and at which time vesting or payment is substantially uncertain to
occur, the Committee may permit a Participant who is a member of a select group of management or
highly compensated employees to irrevocably elect, on a form provided by and acceptable to the
Committee, to defer the receipt of all or a percentage of the cash or Shares that would otherwise
be transferred to the Participant upon the vesting of such Award. If the Participant makes this
election, the cash or Shares subject to the election, and any associated interest and dividends,
shall be credited to an account established pursuant to Section 8 hereof on the date such cash or
Shares would otherwise have been released or issued to the Participant pursuant to this Section.

10. Taxes; Withholding.

     (a) General. As a condition to the issuance or distribution of Shares pursuant to the Plan,
the Participant (or in the case of the Participant’s death, the person who succeeds to the
Participant’s rights) shall make such arrangements as the Company may require for the satisfaction
of any applicable federal, state, local or foreign withholding tax obligations that may arise in
connection with the Award and the issuance of Shares. The Company shall not be required to issue
any Shares until such obligations are satisfied. If the Committee allows the withholding or
surrender of Shares to satisfy a Participant’s tax withholding obligations, the Committee shall not
allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for
applicable tax purposes, including payroll taxes.

     (b) Surrender of Shares. If permitted by the terms of an Award Agreement or the Committee, in
its discretion, a Participant may satisfy the minimum statutory tax withholding and employment tax
obligations associated with an Award by surrendering Shares to the Company (including Shares that
would otherwise be issued pursuant to the Award) that have a Fair Market Value determined as of the
date that the amount of tax to be withheld is to be determined under Applicable Law.

     (c) Income Taxes and Deferred Compensation. Participants are solely responsible and liable
for the satisfaction of any federal state, province, or local taxes that may arise in connection
with Awards (including, for Participants subject to taxation in the United States, any taxes
arising under Section 409A of the Code, except to the extent otherwise specifically provided in a
written agreement with the Company). Neither the Company nor any of its employees, officers,
directors, or service providers shall have any obligation whatsoever to pay such taxes, to prevent
Participants from incurring them, or to mitigate or protect Participants from any such tax
liabilities. In the absence of any other arrangement, an Employee shall be deemed to have directed
the Company to withhold or collect from his or her cash compensation an amount sufficient to
satisfy such tax obligations from the next payroll payment or payments otherwise payable after the
date of the exercise of an Award.

11. Non-Transferability of Awards.

     (a) General. Except as set forth in this Section 11, Awards may not be sold, pledged,
assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws
of descent or distribution. The designation of a death beneficiary by a Participant will not
constitute a transfer. An Award may be exercised, during the lifetime of the holder of an Award,
only by such

9

 

holder, the duly-authorized legal representative of a Participant who is Disabled, or a
transferee permitted by this Section 11.

     (b) Limited Transferability Rights. Notwithstanding anything else in this Section 11, the
Committee may in its discretion provide that an Award may be transferred, on such terms and
conditions as the Committee deems appropriate, either (i) by instrument to the Participant’s
“Immediate Family” (as defined below), (ii) by instrument to an inter vivos or testamentary trust
(or other entity) in which the Award is to be passed to the Participant’s designated beneficiaries,
or (iii) by gift to charitable institutions. Any transferee of the Participant’s rights shall
succeed and be subject to all of the terms of this Award Agreement and the Plan. “Immediate
Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, and shall include adoptive relationships.

     (c) Death. In the event of the death of a Participant, any outstanding Awards issued to the
Participant shall automatically be transferred to the Participant’s Beneficiary (or, if no
Beneficiary is designated or surviving, to the person or persons to whom the Participant’s rights
under the Award pass by will or the laws of descent and distribution).

12. Modification of Awards and Substitution of Options. Within the limitations of the
Plan, the Committee may modify an Award to accelerate the rate at which an Option or SAR may be
exercised (including without limitation permitting an Option or SAR to be exercised in full without
regard to the installment or vesting provisions of the applicable Award Agreement or whether the
Option or SAR is at the time exercisable, to the extent it has not previously been exercised), to
accelerate the vesting of any Award, to extend or renew outstanding Awards, to accept the
cancellation of outstanding Awards to the extent not previously exercised, or to make any other
changes that would be allowed under the Plan for a new Award. However, except in connection with a
Change in Control or as approved by the shareholders of the Company, the Committee may not cancel
an outstanding Option or SAR whose exercise price per Share is greater than Fair Market Value at
the time of cancellation for the purpose of reissuing the Option or SAR to the Participant at a
lower exercise price, granting a replacement award of a different type, or exchanging the Award for
a cash payment, or otherwise allow for a “repricing” of Options or SARs within the meaning of
federal securities laws applicable to proxy statement disclosures. Notwithstanding the foregoing
provision, no modification of an outstanding Award shall materially and adversely affect a
Participant’s rights thereunder unless either (i) the Participant provides written consent, or (ii)
before a Change in Control, the Committee determines in good faith that the modification is not
materially adverse to the Participant.

13. Change in Capital Structure; Change in Control; Etc.

     (a) Changes in Capitalization. In the event of a Share dividend, Share split, or combination
of Shares, Share exchange, recapitalization, merger in which the Company is the surviving
corporation, spin-off or split-off of an Affiliate, extraordinary cash dividend or other change in
the Company’s capital stock (including, but not limited to, the creation or issuance to
shareholders generally of rights, options or warrants for the purchase of capital stock of the
Company), the number and kind of Shares or securities of the Company to be subject to the Plan and
to Awards then outstanding or to be granted, any and all maximum limits on the number of Shares
that may be

10

 

delivered under the Plan, any exercise price for Awards, and other relevant provisions shall
be equitably adjusted by the Committee.

     (b) Change in Control. In the event of a Change in Control but subject to the terms of any
Award Agreements or any employment or other similar agreement between the Company or any of its
Affiliates and a Participant then in effect, to the extent outstanding Awards are neither being
assumed nor replaced with substantially equivalent Awards by the surviving or successor corporation
or a parent or subsidiary of such surviving or successor corporation (the “Successor Corporation”),
the Committee may in its sole and absolute discretion and authority, without obtaining the approval
or consent of the Company’s shareholders or any Participant with respect to his or her outstanding
Awards, take one or more of the following actions (with respect to any or all of the Awards, and
with discretion to differentiate between individual Participants and Awards for any reason):

     (i) accelerate the vesting of Awards so that Awards shall vest (and, to the extent
applicable, become exercisable) as to the Shares that otherwise would have been unvested and
provide that repurchase rights of the Company with respect to Shares issued pursuant to an
Award shall lapse as to the Shares subject to such repurchase right;

     (ii) arrange or otherwise provide for the payment of cash or other consideration to
Participants in exchange for the satisfaction and cancellation of outstanding Awards (with
the Committee determining the amount payable to each Participant based on the Fair Market
Value, on the date of the Change in Control, of the Award being cancelled, based on any
reasonable valuation method selected by the Committee); or

     (iii) terminate all or some Awards upon the consummation of the transaction, provided
that the Committee shall provide for vesting of such Awards in full as of a date immediately
prior to consummation of the Change in Control. To the extent that an Award is not
exercised prior to consummation of a transaction in which the Award is not being assumed or
substituted, such Award shall terminate upon such consummation.

To the extent that any Award is assumed or substituted by a Successor Corporation, unless otherwise
provided in an Award Agreement or in any employment or other similar agreement between the Company
or any of its Affiliates and a Participant then in effect, in the event a Participant is
Involuntarily Terminated on or within 12 months (or other period either set forth in an Award
Agreement) following a Change in Control, then such Award shall accelerate and become fully vested
(and become exercisable in full in the case of Options and SARs), and any repurchase right
applicable to any Shares shall lapse in full, unless an Award Agreement provides for a more
restrictive acceleration or vesting schedule or more restrictive limitations on the lapse of
repurchase rights or otherwise places additional restrictions, limitations and conditions on an
Award. The acceleration of vesting and lapse of repurchase rights provided for in the previous
sentence shall occur immediately prior to the effective date of the Participant’s Involuntary
Termination, unless an Award Agreement provides otherwise.

     (c) Dissolution or Liquidation. In the event of the dissolution or liquidation of the Company
other than as part of a Change in Control, each Award will terminate immediately prior to the
consummation of such action, subject to the ability of the Committee to exercise any discretion
authorized in the case of a Change in Control.

11

 

14. Laws and Regulations.

     (a) General Rules. This Plan, the grant of Awards, the exercise of Options and SARs, and the
obligations of the Company hereunder (including those to pay cash or to deliver, sell or accept the
surrender of any of its Shares or other securities) shall be subject to all Applicable Laws. In
the event that any Shares are not registered under any Applicable Law prior to the required
delivery of them pursuant to Awards, the Company may require, as a condition to their issuance or
delivery, that the persons to whom the Shares are to be issued or delivered make any written
representations and warranties (such as that such Shares are being acquired by the Participant for
investment for the Participant’s own account and not with a view to, for resale in connection with,
or with an intent of participating directly or indirectly in, any distribution of such Shares) that
the Committee may reasonably require, and the Committee may in its sole discretion include a legend
to such effect on the certificates representing any Shares issued or delivered pursuant to the
Plan.

     (b) Black-out Periods. Notwithstanding any contrary terms within the Plan or any Award
Agreement, the Committee shall have the absolute discretion to impose a “blackout” period on the
exercise of any Option or SAR, as well as the settlement of any Award, with respect to any or all
Participants (including those whose Continuous Service has ended) to the extent that the Committee
determines that doing so is either desirable or required in order to comply with applicable
securities laws, provided that, if any blackout period occurs, the term of any Option or SAR shall
not expire until the earlier of (i) 30 days after the blackout period ends or (ii) the Option’s or
SAR’s expiration date but only if within 30 days thereafter the Company makes a cash payment to
each affected Participant in an amount equal to the value of the Option or SAR (as determined by
the Committee) immediately before its expiration to the extent then vested and exercisable.

     (c) No Shareholder Rights. Neither a Participant nor any transferee of a
Participant shall have any rights as a shareholder of the Company with respect to any Shares
underlying any Award until the date of issuance of a share certificate to a Participant or a
transferee of a Participant for such Shares in accordance with the Company’s governing instruments
and Applicable Law. Prior to the issuance of Shares pursuant to an Award, a Participant shall not
have the right to vote or to receive dividends or any other rights as a shareholder with respect to
the Shares underlying the Award, notwithstanding its exercise in the case of Options and SARs. No
adjustment will be made for a dividend or other right that is determined based on a record date
prior to the date the stock certificate is issued, except as otherwise specifically provided for in
this Plan.

     (d) Local Law Adjustments and Sub-plans. To facilitate the making of any grant of an Award
under this Plan, the Committee may adopt rules and provide for such special terms for Awards to
Participants who are located within the United States, foreign nationals, or who are employed by
the Company or any Affiliate outside of the United States of America as the Committee may consider
necessary or appropriate to accommodate differences in local law, tax policy or custom. Without
limiting the foregoing, the Company is specifically authorized to adopt rules and procedures
regarding the conversion of local currency, taxes, withholding procedures and handling of stock
certificates which vary with the customs and requirements of particular countries. The Company may
adopt sub-plans and establish escrow accounts and trusts, and settle Awards in cash in lieu of
shares, as may be appropriate, required or applicable to particular locations and countries.

15. Termination, Rescission and Recapture of Awards.

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     (a) Each Award under the Plan is intended to align the Participant’s long-term interests with
those of the Company. Accordingly, to the extent expressly provided in an Award Agreement, the
Company may terminate any outstanding, unexercised, unexpired, unpaid, or deferred Awards
(“Termination”), rescind any exercise, payment or delivery pursuant to the Award
(“Rescission”), or recapture any Shares (whether restricted or unrestricted) or proceeds
from the Participant’s sale of Shares issued pursuant to an Award (“Recapture”), if the
Participant, during his or her Continuous Service or within one year after the termination of his
or her Continuous Service, engages in activity which: (i) constitutes a material breach of the
terms of any applicable patent, proprietary information, confidentiality, non-disclosure,
intellectual property, secrecy or other similar agreement between the Participant and the Company
or any of its Affiliates; (ii) constitutes the breach of the terms of any non-solicitation,
non-competition or similar agreement between the Participant and the Company or any of its
Affiliates; or (iii) is materially prejudicial to the interests of the Company and constitutes a
breach of a fiduciary duty to the Company or its Affiliates.

     (b) Within ten days after receiving notice from the Company of any such activity described in
subclauses (i), (ii) or (iii) in Section 15(a) above, the Participant shall deliver to the Company
the Shares acquired pursuant to the Award, or, if Participant has sold the Shares, the gain
realized, or payment received as a result of the rescinded exercise, payment, or delivery;
provided, that if the Participant returns Shares that the Participant purchased pursuant to the
exercise of an Option (or the gains realized from the sale of such Shares), the Company shall
promptly refund the exercise price, without interest, that the Participant paid for the Shares.
Any payment by the Participant to the Company pursuant to this Section shall be made either in cash
or by returning to the Company the number of Shares that the Participant received in connection
with the rescinded exercise, payment, or delivery.

     (c) Notwithstanding the foregoing provisions of this Section 15, the Company has sole and
absolute discretion not to require Termination, Rescission and/or Recapture, and its determination
not to require Termination, Rescission and/or Recapture with respect to any particular act by a
particular Participant or particular Award shall not in any way reduce or eliminate the Company’s
authority to require Termination, Rescission and/or Recapture with respect to any other act or
Participant or Award. Nothing in this Section shall be construed to impose obligations on the
Participant to refrain from engaging in lawful competition with the Company after the termination
of employment that does not violate subclauses (i), (ii) or (iii) of Section 15(a) above.

     (d) All administrative and discretionary authority given to the Company under this Section
shall be exercised by such person or committee (including without limitation the Committee) as the
Committee may designate from time to time.

     (e) If any provision within this Section 15 is determined to be unenforceable or invalid under
any Applicable Law, such provision will be applied to the maximum extent permitted by Applicable
Law, and shall automatically be deemed amended in a manner consistent with its objectives and any
limitations required under Applicable Law. Notwithstanding the foregoing, but subject to any
contrary terms expressly set forth in any Award Agreement, this Section 15 shall not be applicable
to any Participant from and after his or her termination of Continuous Service after a Change in
Control.

16. Recoupment of Awards. To the extent expressly provided in an Award Agreement, and to
the extent permitted by Applicable Law, the Committee may in its sole and absolute discretion,

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without obtaining the approval or consent of the Company’s shareholders or of any Participant,
require that a Participant reimburse the Company for all or any portion of any Awards granted to
him or her under this Plan (“Reimbursement”), or the Committee may require the Termination
or Rescission of, or the Recapture associated with, any Award, if and to the extent—

     (a) the granting, vesting, or payment of such Award (or portion thereof) was predicated upon
the achievement of certain financial results that were subsequently the subject of a material
financial restatement;

     (b) in the Committee’s view the Participant engaged in fraud or misconduct that caused a
calculation that later proves to be materially inaccurate or partially caused the need for a
material financial restatement by the Company or any Affiliate; and

     (c) a lower granting, vesting, or payment of such Award would have occurred based upon the
conduct described in clause (b) of this Section.

In each instance, the Committee may, to the extent practicable and allowable under Applicable Laws,
require Reimbursement, Termination or Rescission of, or Recapture relating to, any such Award
granted to a Participant.

  17. Administration of the Plan. The Committee shall administer the Plan in accordance with
its terms, provided that the Board may act in lieu of the Committee on any matter. The Committee
shall hold meetings at such times and places as it may determine and shall make such rules and
regulations for the conduct of its business as it deems advisable. In the absence of a duly
appointed Committee, the Board shall function as the Committee for all purposes of the Plan.

     (a) Committee Composition. The Board shall appoint the members of the Committee. If and to
the extent permitted by Applicable Law, the Committee may authorize one or more executive officers
to make Awards to Eligible Persons other than themselves. The Board may at any time appoint
additional members to the Committee, remove and replace members of the Committee with or without
Cause, and fill vacancies on the Committee however caused.

     (b) Powers of the Committee. Subject to the provisions of the Plan, the Committee shall have
the authority, in its sole discretion:

     (i) to grant Awards and to determine Eligible Persons to whom Awards shall be granted
from time to time, and the number of Shares, units, or dollars to be covered by each Award;

     (ii) to determine, from time to time, the Fair Market Value of Shares;

     (iii) to determine, and to set forth in Award Agreements, the terms and conditions of
all Awards, including any applicable exercise or purchase price, the installments and
conditions under which an Award shall become vested (which may be based on performance),
terminated, expired, cancelled, or replaced, and the circumstances for vesting acceleration
or waiver of forfeiture restrictions, and other restrictions and limitations;

14

 

     (iv) to approve the forms of Award Agreements and all other documents, notices and
certificates in connection therewith which need not be identical either as to type of Award
or among Participants;

     (v) to construe and interpret the terms of the Plan and any Award Agreement, to
determine the meaning of their terms, and to prescribe, amend, and rescind rules and
procedures relating to the Plan and its administration;

     (vi) to the extent consistent with the purposes of the Plan and without amending the
Plan, to modify, to cancel, or to waive the Company’s rights with respect to any Awards, to
adjust or to modify Award Agreements for changes in Applicable Law, and to recognize
differences in foreign law, tax policies, or customs;

     (vii) in the event that the Company establishes for itself, or uses the services of a
third party to establish, an automated system for the documentation, granting, settlement,
or exercise of Award, such as a system using an internet website or interactive voice
response, to implement paperless documentation, granting, settlement, or exercise of Awards
by a Participant may be permitted through the use of such an automated system; and

     (viii) to make all interpretations and to take all other actions that the Committee may
consider necessary or advisable to administer the Plan or to effectuate its purposes.

     Subject to Applicable Law and the restrictions set forth in the Plan, the Committee may
delegate administrative functions to individuals who are Directors or Employees.

     (c) Action by Committee. Each member of the Committee is entitled to, in good faith, rely or
act upon any report or other information furnished to that member by an officer or other employee
of the Company or any Affiliate, the Company’s independent certified public accounts, or any
executive compensation consultant or other professional retained by the Company to assist in the
administration of the Plan.

     (d) Deference to Committee Determinations. The Committee shall have the discretion to
interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion it deems to
be appropriate in its sole discretion, and to make any findings of fact needed in the
administration of the Plan or Award Agreements. The Committee’s prior exercise of its
discretionary authority shall not obligate it to exercise its authority in a like fashion
thereafter. The Committee’s interpretation and construction of any provision of the Plan, or of
any Award or Award Agreement, and all determination the Committee makes pursuant to the Plan shall
be final, binding, and conclusive. The validity of any such interpretation, construction,
decision or finding of fact shall not be given de novo review if challenged in court, by
arbitration, or in any other forum, and shall be upheld unless clearly made in bad faith or
materially affected by fraud.

     (e) No Liability; Indemnification. Neither the Board nor any Committee member, nor any Person
acting at the direction of the Board or the Committee, shall be liable for any act, omission,
interpretation, construction or determination made in good faith with respect to administering or
interpreting the Plan, any Award or any Award Agreement on behalf of the Company. The Company and
its Affiliates shall pay or reimburse any member of the Committee, as well as any Director,
Employee, or Consultant who in good faith takes action on behalf of the Plan, for all

15

 

expenses incurred with respect to the Plan, and to the full extent allowable under Applicable
Law shall indemnify each and every one of them for any claims, liabilities, and costs (including
reasonable attorney’s fees) arising out of their good faith performance of duties on behalf of the
Plan. The Company and its Affiliates may, but shall not be required to, obtain liability insurance
for this purpose.

18. Governing Law. The terms of this Plan shall be governed by the laws of the British
Virgin Islands, without regard to its conflict of laws rules.

19. Plan Termination or Amendment.

     If not sooner terminated by the Board, this Plan shall terminate at the close of business on
the date ten years after its effective date as determined under Section 1(a) above. No Awards
shall be made under the Plan after its termination. The Board may amend or terminate the Plan as
it shall deem advisable; provided that no change shall be made that increases the total number of
Shares reserved for issuance pursuant to Awards granted under the Plan (except pursuant to Section
13 above) unless such change is authorized by the shareholders of the Company. A termination or
amendment of the Plan shall not, without the consent of the Participant, adversely and materially
affect a Participant’s rights under an Award previously granted to him or her. Notwithstanding the
foregoing, the Committee may amend the Plan to comply with changes in tax or securities laws or
regulations, or in the interpretation thereof. Furthermore, the Board may not amend the Plan
without shareholder approval to allow for either (i) a “repricing” within the meaning of federal
securities laws applicable to proxy statement disclosures, except a repricing in connection with a
Change in Control or which is otherwise approved by the shareholders, or (ii) the cancellation of
an outstanding Option or SAR whose exercise price is greater than Fair Market Value at the time of
cancellation for the purpose of reissuing the Option or SAR to the Participant at a lower exercise
price, granting a replacement award of a different type or in exchange for a cash payment, except a
cancellation and reissuance, grant of a replacement award or cash payment in connection with a
Change in Control.

20. Relationship to other Benefits. No payment pursuant to the Plan shall be taken into
account in determining any benefits under any pension, retirement, savings, profit sharing, group
insurance, welfare or other benefit plan of the Company or any Affiliate except to the extent
otherwise expressly provided in writing in such other plan or an agreement thereunder.

21. Expenses. The expenses of administering the Plan shall be borne by the Company and its
Affiliates.

16

 

UTi Worldwide Inc.

2009 Long-Term Incentive Plan

 

Appendix I: Definitions

 

As used in the Plan, the following terms have the meanings indicated when they begin with initial
capital letters within the Plan:

     “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly controls or is controlled by or under common control with such Person. For the purposes
of this definition, “control,” when used with respect to any Person, means the possession, direct
or indirect, of the power to direct or cause the direction of the management and policies of such
Person or the power to elect directors, whether through the ownership of voting securities, by
contract or otherwise; and the terms “affiliated,” “controlling” and “controlled” have meanings
correlative to the foregoing.

     “Applicable Law” means the legal requirements relating to the administration of
options and share-based plans under any applicable laws of the United States, any other country,
and any provincial, state, or local subdivision, any applicable stock exchange or automated
quotation system rules or regulations, as such laws, rules, regulations and requirements shall be
in place from time to time.

     “Award” means any award made pursuant to the Plan, including awards made in the form
of an Option, a SAR, a Restricted Share, a RSU, an Unrestricted Share, a DSU, or a Performance
Award, or any combination thereof, whether alternative or cumulative.

     “Award Agreement” means any document, whether in writing or through an electronic
medium, setting forth the terms of an Award that has been authorized by the Committee. The
Committee shall determine the form or forms of documents to be used, and may change them from time
to time for any reason, including different documents as may be appropriate or applicable for
particular locations and countries.

     “Beneficiary” means the person or entity designated by the Participant, in a form
approved by the Company, to exercise the Participant’s rights with respect to an Award or receive
payment or settlement under an Award after the Participant’s death.

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

     “Cause” will have the meaning set forth in any employment agreement between the
Company or any of its Affiliate and the Participant then in effect. In the absence of such an
agreement, “Cause” will exist if the Participant is terminated from employment or other service
with the Company or an Affiliate for any of the following reasons: (i) the Participant’s willful
failure to substantially perform his or her duties and responsibilities to the Company or
deliberate violation of a material Company policy; (ii) the Participant’s commission of any
material act or acts of fraud, embezzlement, dishonesty, or other willful misconduct; (iii) the
Participant’s material unauthorized

17

 

use or disclosure of any proprietary information or trade secrets of the Company or any other
party to whom the Participant owes an obligation of nondisclosure as a result of his or her
relationship with the Company; or (iv) Participant’s willful and material breach of any of his or
her obligations under any written agreement or covenant with the Company. The foregoing
definition does not in any way limit the Company’s ability to terminate a Participant’s employment
or consulting relationship at any time, and the term “Company” will be interpreted herein to
include any Affiliate or successor thereto, if appropriate.

     “Change in Control” shall be deemed to have occurred if:

     (i) a sale, transfer, or other disposition of all or substantially all of the assets
and properties of the Company is closed or consummated;

     (ii) any “person,” “entity” or “group” (within the meaning of Section 13(d)(3) and
14(d)(2)) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other
than the Company or any majority owned subsidiary of the Company, becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the combined voting
power of the Company’s then outstanding securities that have the right to vote in the
election of directors generally; provided, however, that the following shall not constitute
a “Change in Control” for purposes of this subclause (ii):

     (A) any acquisition directly from the Company (excluding any acquisition
resulting from the exercise of a conversion or exchange privilege in respect of
outstanding convertible or exchangeable securities); or

     (B) any acquisition by an employee benefit plan (or related trust) sponsored or
maintained by the Company or any entity controlled by the Company;

     (iii) during any period of two consecutive years during the term of the Plan,
individuals who at the beginning of such period constitute the Board of Directors of the
Company cease for any reason to constitute at least a majority thereof, unless the election
of each director who was not a director at the beginning of such period has been approved in
advance by directors representing at least two-thirds of the directors then in office who
were directors at the beginning of the period but excluding any director whose initial
assumption of office occurred as a result of an actual or threatened solicitation of proxies
or consents by or on behalf of any Person other than the Board of Directors of the Company;
or

     (iv) the shareholders of the Company approve a plan or proposal of liquidation of the
Company, or a merger, reorganization, or consolidation involving the Company is closed or
consummated, other than a merger, reorganization, or consolidation in which holders of the
combined voting power of the Company’s then outstanding securities that have the right to
vote in the election of directors generally immediately prior to such transaction own,
either directly or indirectly, fifty percent (50%) or more of the combined voting power of
the securities entitled to vote in the election of directors generally of the merged,
reorganized or consolidated entity (or its parent company) immediately following such
transaction in substantially the same proportions among such holders as immediately prior to
such transaction.

18

 

     “Committee” means one or more committees or subcommittees of the Board appointed by
the Board to administer the Plan in accordance with Section 17 above. With respect to any decision
involving an Award intended to satisfy the requirements of Section 162(m) of the Code, the
Committee shall consist of two or more Directors of the Company who are “outside directors” within
the meaning of Section 162(m) of the Code. With respect to any decision relating to a Reporting
Person, the Committee shall consist of two or more directors who are “non-employee directors”
within the meaning of Rule 16b-3. Unless otherwise determined by the Board, the Committee shall be
the Compensation Committee of the Board or its successor.

     “Company” means UTi Worldwide Inc., a British Virgin Islands corporation; provided,
however, that in the event the Company reincorporates to another jurisdiction, all references to
the term “Company” shall refer to the Company in such new jurisdiction.

     “Consultant” means any person (other than an Employee or Director), including an
advisor, who is engaged by the Company or any Affiliate to render services and is compensated for
such services.

     “Continuous Service” means a Participant’s period of service in the absence of any
interruption or termination, as an Employee, Director, or Consultant. Continuous Service shall not
be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other
leave of absence approved by the Committee, provided that such leave is for a period of not more
than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from time to time; (iv)
changes in status from Director to advisory director or emeritus status; or (v) transfers between
locations of the Company or between the Company and its Affiliates. Changes in status between
service as an Employee, Director, and a Consultant will not constitute an interruption of
Continuous Service if the individual continues to perform bona fide services for the Company. The
Committee shall have the discretion to determine whether and to what extent the vesting of any
Awards shall be tolled during any paid or unpaid leave of absence; provided, however, that in the
absence of such determination, vesting for all Awards shall be tolled during any such unpaid leave
(but not for a paid leave).

     “Deferred Share Units” or “DSUs” mean Awards pursuant to Section 8 of the
Plan.

     “Director” means a member of the Board, or a member of the board of directors of an
Affiliate.

     “Disabled” shall have the meaning set forth in any employment agreement between the
Company or any of its Affiliates and the Participant then in effect (and shall include the term
“Disability” if that term is so defined in such employment agreement). In the absence of such an
agreement, “Disabled” shall mean a condition under which a Participant —

     (i) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, or

     (ii) is, by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period

19

 

of not less than 12 months, received income replacement benefits for a period of not
less than 3 months under an accident or health plan covering employees of the Company or an
Affiliate of the Company.

     “Eligible Person” means any Consultant, Director, or Employee and includes
non-Employees to whom an offer of employment has been or is being extended.

     “Employee” means any person whom the Company or any Affiliate classifies as an
employee (including an officer) for employment tax purposes, whether or not that classification is
correct. The payment by the Company of a director’s fee to a Director shall not be sufficient to
constitute “employment” of such Director by the Company.

     “Employer” means the Company and each Affiliate that employs one or more Participants.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” as of any date (the “Determination Date”) means: (i) the closing
price of a Share on the New York Stock Exchange, the American Stock Exchange or the NASDAQ Global
Select Market (collectively, the “Exchange”) on the Determination Date, or, if shares were not
traded on the Determination Date, then on the nearest preceding trading day during which a sale
occurred; or (ii) if such stock is not traded on the Exchange but is otherwise traded in the
over-the-counter market, the mean between the representative bid and asked prices for a Share on
the Determination Date; or (iii) if subsections (i) or (ii) do not apply, the fair market value of
a Share established in good faith by the Board or the Committee based on relevant facts and
circumstances.

     “Grant Date” means the later of (i) the date designated as the “Grant Date” within an
Award Agreement, and (ii) date on which the Committee determines the key terms of an Award,
provided that as soon as reasonably practical thereafter the Committee both notifies the Eligible
Person of the Award and enters into an Award Agreement with the Eligible Person.

     “Involuntary Termination” shall mean, to the extent there is an employment agreement
between the Company or any of its Affiliates and a Participant then in effect and subject to the
terms of such employment agreement, a termination of a Participant’s employment on or after a
Change in Control (i) by the Participant for “Good Reason” (as defined in any such employment
agreement), or (ii) by the Company or its Affiliates without cause or other than upon death or
disability which termination entitles such Participant to accelerated or extended severance
benefits pursuant to his or her employment agreement. In the absence of such an agreement,
“Involuntary Termination” means a termination of a Participant’s Continuous Service under the
following circumstances occurring on or after a Change in Control: (i) termination without Cause by
the Company or an Affiliate or successor thereto, as appropriate; or (ii) voluntary termination by
the Participant, if: (1) the Participant voluntarily terminates Continuous Service within 60 days
of one of the following conditions arising without the Participant’s consent: (A) a material
reduction in the Participant’s job responsibilities, provided that neither a mere change in title
alone nor reassignment to a substantially similar position shall constitute a material reduction in
job responsibilities; (B) an involuntary relocation of the Participant’s work site to a facility or
location more than 25 miles from the Participant’s principal work site at the time of the Change in
Control; or (C) a material reduction in Participant’s total compensation other than as part of an
reduction by the same percentage amount in the compensation of all other similarly-situated
Employees or Directors; (2) the

20

 

Participant gives the Company or an Affiliate written notice of the existence of one or more
of the conditions listed in (A) through (C) within ten days of the initial existence of the
condition; and (3) the Company or Affiliate fails to cure such condition within 30 days following
receipt of such written notice by the Participant.

     “Option” means a right to purchase Shares granted under the Plan, at a price
determined in accordance with the Plan.

     “Participant” means any Eligible Person who holds an outstanding Award.

     “Performance Awards” mean Awards granted pursuant to Section 9.

     “Performance Unit” means an Award granted pursuant to Section 9(a) of the Plan which
may be paid in cash, in Shares, or such combination of cash and Shares as the Committee in its sole
discretion shall determine.

     “Person” means any natural person, association, trust, business trust, cooperative,
corporation, general partnership, joint venture, joint-stock company, limited partnership, limited
liability company, real estate investment trust, regulatory body, governmental agency or
instrumentality, unincorporated organization or organizational entity.

     “Plan” means this UTi Worldwide Inc. 2009 Long-Term Incentive Plan (including the
Appendices hereto).

     “Recapture” and “Rescission” have the meaning set forth in Section 15 of the
Plan.

     “Reimbursement” has the meaning set forth in Section 16 of the Plan.

     “Reporting Person” means an Employee, Director, or Consultant who is subject to the
reporting requirements set forth under Rule 16b-3.

     “Restricted Share” means a Share awarded with restrictions imposed under Section 7.

     “Restricted Share Unit” or “RSU” means a right granted to a Participant to
receive Shares or cash upon the lapse of restrictions imposed under Section 7.

     “Retirement” means a Participant’s termination of employment after age 65.

     “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from time
to time, or any successor provision.

     “Share” means an ordinary share, no par value, of the Company, as adjusted in
accordance with Section 13 of the Plan.

     “SAR” or “Share Appreciation Right” means a right to receive amounts awarded
under Section 6.

     “Unrestricted Shares” mean Shares awarded without restrictions pursuant to Section 7
of the Plan.

21

 

     “Withholding Taxes” means the aggregate minimum amount of federal, state, local and
foreign income, payroll and other taxes that the Company and any Affiliates are required to
withhold in connection with any Award.

22

 

UTi Worldwide Inc.

2009 Long-Term Incentive Plan

 

Appendix II: U.S. Sub-Plan

 

          With the exception of part F below which relates to Performance Awards and applies to all
Participants, this Appendix II applies to any Awards that are made to Eligible Persons who are
residents of the United States of America (“U.S.”) and who are or may become subject to U.S. tax
(i.e. income tax and/or social security tax) as a result of Awards granted under the UTi Worldwide
Inc. 2009 Long-Term Incentive Plan (the “Plan”). Terms herein that begin with initial
capital letters have the special definition set forth in the Plan.

          This Appendix II shall be read in conjunction with the Plan and is subject to the terms and
conditions of the Plan; provided that, to the extent that the terms and conditions of the Plan
differ from or conflict with the terms of this Appendix II, the following terms of this Appendix II
shall prevail:

	A.	 	Additional or Modified Definitions. Appendix I of the Plan shall be modified as
follows:

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

“Incentive Stock Option” or “ISO” means, an Option that qualifies for
favorable income tax treatment under Code Section 422.

“Non-ISO” means an Option not intended to qualify as an Incentive Stock Option, as
designated in the applicable Award Agreement.

“Ten Percent Holder” means a person who owns (within the meaning of Code Section
422) stock representing more than ten percent (10%) of the combined voting power of all
classes of stock of the Company.

B. Authorization for ISOs. In order to permit the granting of ISOs, Section 5 of Plan
shall be modified by adding the following subsection (f) at the end thereof:

     (f) Special ISO Provisions. The following provisions shall control any grants of
Options that are denominated as ISOs.

     (i) Grants of ISOs. The Committee may grant ISOs only to Employees
(including officers who are Employees) of the Company or an Affiliate that is a
“parent corporation” or “subsidiary corporation” within the meaning of Section 424
of the Code. Each Option that is intended to be an ISO must be designated in the
Award Agreement as an ISO, provided that any Option designated as an ISO will be a
Non-ISO to the extent the Option fails to meet the requirements of Code Section 422.
In the case of an ISO, the Committee shall determine the acceptable methods of
payment on the Date of Grant and it shall be included in the applicable Award
Agreement.

23

 

     (ii) Maximum Limit. The number of Shares that are available for ISO
Awards not exceed 6,250,000 Shares (as adjusted pursuant to Section 13 of the Plan),
and shall be determined, to the extent required under the Code, by reducing the
number of Shares designated in Section 3 of the Plan by the number of Shares issued
pursuant to Awards, provided that any Shares that are subject to Awards issued under
the Plan and forfeited back to the Plan before an issuance of Shares shall be
available for issuance pursuant to future ISO Awards.

     (iii) $100,000 Limit. To the extent that the aggregate Fair Market
Value of Shares with respect to which Options designated as ISOs first become
exercisable by a Participant in any calendar year (under this Plan and any other
plan of the Company or any Affiliate) exceeds U.S. $100,000, such excess Options
shall be treated as Non-ISOs. For purposes of determining whether the U.S. $100,000
limit is exceeded, the Fair Market Value of the Shares subject to an ISO shall be
determined as of the Grant Date. In reducing the number of Options treated as ISOs
to meet the U.S. $100,000 limit, the most recently granted Options shall be reduced
first. In the event that Section 422 of the Code is amended to alter the limitation
set forth therein, the limitation of this paragraph shall be automatically adjusted
accordingly.

     (iv) Grants to 10% Holders. In the case of an Incentive Stock Option
granted to an Employee who is a Ten Percent Holder on the Date of Grant, the term of
the Incentive Stock Option shall not exceed five years from the Date of Grant, and
the exercise price shall be at least 110% of the Fair Market Value of the underlying
Shares on the Grant Date. In the event that Section 422 of the Code is amended to
alter the limitations set forth therein, the limitation of this paragraph shall be
automatically adjusted accordingly.

     (v) Substitution of Options. Notwithstanding any other provisions of
the Plan, in the event the Company or an Affiliate acquires (whether by purchase,
merger or otherwise) all or substantially all of outstanding capital stock or assets
of another corporation or in the event of any reorganization or other transaction
qualifying under Code Section 424, the Committee may, in accordance with the
provisions of that Section, substitute ISOs for ISOs under the plan of the acquired
company provided (i) the excess of the aggregate Fair Market Value of the Shares
subject to an ISO immediately after the substitution over the aggregate exercise
price of such shares is not more than the similar excess immediately before such
substitution, and (ii) the new ISO does not give additional benefits to the
Participant, including any extension of the exercise period.

       (vi) Notice of Disqualifying Dispositions. By executing an
ISO Award Agreement, each Participant agrees to notify the Company in writing
immediately after the Participant sells, transfers or otherwise disposes of any
Shares acquired through exercise of the ISO, if such disposition occurs within the
earlier of (i) two years of the Grant Date, or (ii) one year after the exercise of
the ISO being exercised. Each Participant further agrees to provide any information
about a disposition of

24

 

Shares as may be requested by the Company to assist it in complying with any
applicable tax laws.

C. SARs. Section 6 of the Plan shall be modified through addition of the following
sentence at the end of Section 6(d):

Any SAR granted in tandem with an ISO will contain such terms as may be required to comply
with the provisions of Code Section 422.

D. Restricted Shares or RSUs. Section 7 of the Plan shall be modified by adding the
following paragraph at its end:

     (g) Section 83(b) Elections. To the extent expressly permitted by an Award Agreement
or the Committee, a Participant may make an election under Code Section 83(b) (the
“Section 83(b) Election”) with respect to Restricted Shares. A Participant who has
received RSUs may, within ten days after receiving the RSU Award, provide the Committee with
a written notice of his or her desire to make Section 83(b) Election with respect to the
Shares subject to such RSUs. The Committee may in its discretion convert the Participant’s
RSUs into Restricted Shares, on a one-for-one basis, in full satisfaction of the
Participant’s RSU Award. The Participant may then make a Section 83(b) Election with
respect to those Restricted Shares; provided that the Participant’s Section 83(b) Election
will be invalid if not filed with the Company and the appropriate U.S. tax authorities
within 30 days after the Grant Date of the RSUs replaced by the Restricted Shares.

E. DSUs. Section 8 of the Plan shall be modified as follows:

Section 8(a) shall be modified through addition of the following sentence at its end:

For any Participant who is subject to U.S. income taxation, the Committee shall only
authorize deferral elections pursuant to Section 8 (i) under written procedures, and using
written election forms, that satisfy the requirements of Code Section 409A, and (ii) shall
only be made by Eligible Persons who are Directors, Consultants, or members of a select
group of management or highly compensated Employees (within the meaning of the Code).

Section 8(e) of the Plan shall be modified through addition of the following at its end:

For all DSUs granted to Participants who are U.S. taxpayers, the term “unforeseeable
emergency” shall be interpreted in accordance with Section 409A of the Code, and the term
“dependent” shall be interpreted in accordance with Section 152(a) of the Code.

Section 8 of the Plan shall be modified through addition of the following at its end:

     (g) Termination of Service. For purposes of Section 8 of the Plan, a Participant’s
“Continuous Service” shall only end when the Participant incurs a “separation from service”
within the meaning of Treasury Regulations §1.409A-1(h). A Participant shall be considered
to have experienced a termination of Continuous Service when the facts and circumstances
indicate that either (i) no further services will be performed for the Company or any
Affiliate after a certain date, or (ii) that the level of bona fide services the Participant
will perform

25

 

after such date (whether as an Employee, Director, or Consultant) are reasonably expected to
permanently decrease to no more than 25% of the average level of bona fide services
performed by such Participant (whether as an Employee, Director, or Consultant) over the
immediately preceding 36-month period (or full period of services to the Company and its
Affiliates if the Participant has been providing such services for less than 36 months).

F. Performance Awards. Section 9 of the Plan shall be modified by adding the following
paragraphs after Section 9(b):

     (c) Performance Compensation Awards. Subject to the limitations set forth in Section 9
and in this Appendix II.F., the Committee may, at the time of grant of a Performance Unit,
designate such Award as a “Performance Compensation Award” (payable in cash or
Shares) in order that such Award constitutes “qualified performance-based compensation”
under Code Section 162(m), in which event the Committee shall have the power to grant such
Performance Compensation Award upon terms and conditions that qualify it as “qualified
performance-based compensation” within the meaning of U.S. Code Section 162(m). With
respect to each such Performance Compensation Award, the Committee shall establish, in
writing within the time required under Code Section 162(m), a “Performance Period,”
“Performance Measure(s)”, and “Performance Formula(e)” (each such term being
defined below). A Participant shall be eligible to receive payment in respect of a
Performance Compensation Award only to the extent that the Performance Measure(s) for such
Award is achieved and the Performance Formula(e) as applied against such Performance
Measure(s) determines that all or some portion of such Participant’s Award has been earned
for the Performance Period. As soon as practicable after the close of each Performance
Period, the Committee shall review and certify in writing whether, and to what extent, the
Performance Measure(s) for the Performance Period have been achieved and, if so, determine
and certify in writing the amount of the Performance Compensation Award to be paid to the
Participant and, in so doing, may use negative discretion to decrease, but not increase, the
amount of the Award otherwise payable to the Participant based upon such performance.

     (d) Limitations on Awards. The maximum Performance Award and the maximum Performance
Compensation Award that any one Participant may earn in any one Performance Period shall not
together exceed 1,000,000 Shares, as adjusted pursuant to Section 13 below (or, for
Performance Units to be settled in cash, U.S. $3,000,000).

     (e) Definitions.

     (i) “Performance Formula” means, for a Performance Period, one or more
objective formulas or standards established by the Committee for purposes of
determining whether or the extent to which an Award has been earned based on the
level of performance attained or to be attained with respect to one or more
Performance Measure(s). Performance Formulae may vary from Performance Period to
Performance Period and from Participant to Participant and may be established on a
stand-alone basis, in tandem or in the alternative.

     (ii) “Performance Measure” means one or more of the following selected by the
Committee to measure Company, Affiliate, and/or business unit performance

26

 

for a Performance Period, whether in absolute or relative terms (including,
without limitation, terms relative to a peer group or index):

	 	 	 
	cash flow (before or after dividends)

	 	earnings per share (including, without
limitation, earnings before interest, taxes,
depreciation and amortization)
	 
	 	 
	stock price

	 	return on equity
	 
	 	 
	shareholder return or total shareholder return

	 	return on capital (including without

limitation return on total capital or return

on invested capital)
	 
	 	 
	return on investment

	 	return on assets or net assets
	 
	 	 
	market capitalization

	 	economic value added
	 
	 	 
	debt leverage (debt to capital)

	 	revenue
	 
	 	 
	sales or net sales

	 	backlog
	 
	 	 
	income, pre-tax income or net income

	 	operating income or pre-tax profit
	 
	 	 
	operating profit, net operating profit or 

economic profit

	 	gross margin, operating margin or profit margin
	 
	 	 
	return on operating revenue or return on 

operating assets

	 	cash from operations
	 
	 	 
	operating ratio

	 	operating revenue
	 
	 	 
	market share improvement

	 	general and administrative expenses
	 
	 	 
	customer service

	 	new production introductions
	 
	 	 
	product line enhancements

	 	strategic mergers or acquisitions
	 
	 	 
	working capital

	 	research
	 
	 	 
	licensing

	 	litigation
	 
	 	 
	human resources

	 	information services
	 
	 	 
	sales of assets of Affiliates or business units
	 	 

     Each such measure shall be, to the extent applicable, determined in accordance
with generally accepted accounting principles as consistently applied by the Company
(or such other standard applied by the Committee) and, if so determined by the
Committee, and in the case of a Performance Compensation Award, to the extent
permitted under Code Section 162(m), adjusted to omit the effects of extraordinary
items, gain or loss on the disposal of a business segment, unusual or infrequently
occurring events and transactions and cumulative effects of changes in accounting
principles. Performance Measures may vary from Performance Period to Performance
Period and from Participant to Participant, and may be established on a stand-alone
basis, in tandem or in the alternative.

27

 

     (iii) “Performance Period” means one or more periods of time (of not less than
one fiscal year of the Company), as the Committee may designate, over which the
attainment of one or more Performance Measure(s) will be measured for the purpose of
determining a Participant’s rights in respect of an Award.

G. Taxes; Withholding. In order to conform with Code Section 409A, Section 10 of the Plan
shall be modified by inserting the following at the end thereof:

To the extent that the committee determines that any Award granted under the Plan is subject
to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the
terms and conditions required by Section 409A of the Code. To the extent applicable, the
Plan and Award Agreements shall be interpreted in accordance with Section 409A of the code
and Department of Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be issued after
the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event
that following the effective date of the committee determines that any Award may be subject
to Section 409A of the code and related Department of Treasury guidance (including such
Department of Treasury guidance as may be issued after the Effective Date), the Committee
may adopt such amendments to the Plan and the applicable Award Agreement or adopt other
policies and procedures (including amendments, policies and procedures with retroactive
effect), or take any other actions, that the Administrator determines are necessary or
appropriate to (a) exempt the Award from Section 409A of the code and/or preserve the
intended tax treatment of the benefits provided with respect to the Award, or (b) comply
with the requirements of Section 409A of the code and related Department of Treasury
guidance and thereby avoid the application of any penalty taxes under such Section.

The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to
any payments not yet made to a Holder pursuant to an Award, nothing contained in the Plan or
any Award Agreement shall give the Holder any rights that are greater than those of a
general creditor of the Company or any Affiliate of the Company.

28

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