Document:

EX-10.1

 Exhibit 10.1 
  

 
 MITEL NETWORKS CORPORATION

 2017 Omnibus Incentive Plan 

April 25, 2017, as amended May 3, 2017 
  

 

 Mitel Networks Corporation 

2017 Omnibus Incentive Plan 

ARTICLE I 
 PURPOSE

  

	1.1	 Purpose 

The purpose of this Plan is to assist the Company in attracting, retaining and motivating key employees, directors, officers and consultants
through performance related incentives, thereby advancing the interests of the Company and its shareholders. 
 ARTICLE II 

INTERPRETATION 
  

	2.1	 Definitions 

When used herein, unless the context otherwise requires, the following terms have the indicated meanings, respectively: 

“Affiliate” means a corporation or other entity that, directly or through one or more intermediaries,
controls, is controlled by or is under common control with, the Company; 
 “Award” means any Option,
Restricted Share Unit, Deferred Share Unit, Performance Share Unit, Performance Compensation Awards or Other Share-Based Award granted under this Plan; 

“Award Agreement” means a signed, written agreement between a Participant or a Director Participant and the
Company evidencing the terms and conditions on which an Award has been granted under this Plan; 
 “Black Out
Period” means the period of time during which the Company has imposed trading restrictions on its Insiders; 

“Board” means the board of directors of the Company; 

“Business Day” means a day, other than a Saturday or Sunday, on which the principal commercial banks in New
York City, New York are open for commercial business during normal banking hours; 
 “Change in Control”
means the happening of any of the following events: 
  

	 	(i)	 A change in the composition of the Board over a period of twelve consecutive months or less such that a
majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been
elected or nominated for election as Board members during 

  
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such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election or nomination; 

 

	 	(ii)	 The acquisition, directly or indirectly, by any person or related group of persons (other than the Company or
a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
securities of the Company representing more than 35% of the total combined voting power of the Company’s then outstanding securities pursuant to a tender or exchange offer made directly to the Company’s shareholders which the Board does
not recommend such shareholders accept. 

  

	 	(iii)	 A Corporate Transaction. 

 

	 	(iv)	 Notwithstanding the foregoing, in the case of an Award that constitutes
non-qualified deferred compensation subject to section 409A of the Code, the definition of “Change in Control” set forth above shall not apply, and the term “Change in Control” shall
instead mean a “change in the ownership or effective control” of the Company or “in the ownership of a substantial portion of the assets” of the Company within the meaning of section 409A(a)(2)(A)(v) of the Code and the
regulations and guidance issued thereunder, but only to the extent this substitute definition is necessary in order for the Award to comply with the requirements prescribed by section 409A of the Code. 

“Corporate Transaction” means: 
  

	 	(i)	 the consummation of a merger or consolidation of the Company with or into another entity or any other
corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were not
shareholders of the Company immediately prior to such merger, consolidation or other reorganization; or 

  

	 	(ii)	 the sale, assignment or other transfer of all or substantially all of the assets of the Company to a Person
other than a Subsidiary of the Company; 

 “Code” means the U.S. Internal Revenue Code of
1986, as amended from time to time, and the regulations promulgated under it; 
 “Common Shares” means the
common shares in the capital of the Company and any other securities of the Company or any Affiliate or any successor that may be so designated by the Committee; 

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

“Company” means Mitel Networks Corporation; 

  
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 “Consultant Participant” means an individual or a consultant
company, other than an Employee Participant or a Director Participant that: 
  

	 	(i)	 is engaged to provide services to the Company or a Subsidiary other than services provided in relation to a
distribution of securities of the Company or a Subsidiary; 

  

	 	(ii)	 provides the services under a written contract with the Company or a Subsidiary; and 

 

	 	(iii)	 spends or will spend a significant amount of time and attention on the affairs and business of the Company or
a Subsidiary, 

 and includes a Consultant Participant’s Permitted Assigns. For the purposes of this
definition, “consultant company” means, with respect to an individual consultant, either (i) a company of which the individual consultant is an employee or shareholder; or (ii) a partnership of which the individual
consultant is an employee or partner; 
 “Covered Employee” shall have the meaning set forth in Section
162(m)(3) of the Code; “Data” has the meaning set forth in Section 12.13 of this Plan; 
 “Date
of Grant” means, for any Award, the date specified by the Committee at the time it grants the Award (which, for greater certainty, shall be no earlier than the date on which the Committee meets for the purpose of granting such Award) or if
no such date is specified, the date upon which the Award was granted; 
 “Deferred Share Unit” or
“DSU” means a unit equivalent in value to a Common Share, credited by means of a bookkeeping entry in the books of the Company in accordance with Article 5; 

“Director Participant” means a director of the Company who is not an employee of the Company or a Subsidiary
and includes a Director Participant’s Permitted Assigns; 
 “Director’s Option” means an Option
granted to a Director Participant; 
 “Disabled” or “Disability” occurs when the
Participant or Director Participant is entitled to receive payments under the Company’s long-term disability insurance plan, if one is in effect for such Participant at the time. If there is no long term disability insurance plan in effect,
then Disability shall occur when the Participant or Director Participant is unable to perform his duties hereunder as a result of illness or mental or physical injury for a period of at least 180 days, as determined in accordance with procedures
established by the Committee for purposes of this Plan; 
 “Distribution Date” means (i) in the case of
a Director Participant, the date on which the Director Participant ceases to be a member of the Board or, in the case of a Participant, the Termination Date (the “Separation Date”); or (ii) such later date as elected by the
Participant or Director Participant provided that in no event shall a Participant or Director Participant be permitted to elect a date which is later than the last Business Day of the calendar year following the calendar year in which the Separation
Date occurs. An election for a Distribution Date described in (ii) above will only be valid if it is delivered 

  
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to the Corporate Secretary of the Company prior to the Separation Date in the form prescribed for such purposes by the Company, provided that such election may not be made by a Participant or
Director Participant who is a U.S. Taxpayer; 
 “Employee Participant” means a current full-time or
part-time employee of the Company or a Subsidiary (other than a Director Participant or a Consultant Participant) and includes an Employee Participant’s Permitted Assigns; 

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended from time to time; 

“Exercise Notice” means a notice in writing, in the form acceptable to the Company, signed by a Participant or
a Director Participant holding an Option and stating the Participant’s or Director Participant’s intention to exercise a particular Option; 

“Exercise Price” means the price at which a Common Share may be purchased pursuant to the exercise of an
Option; 
 “Exercise Period” means the period of time during which an Option granted under this Plan may be
exercised (provided however that the Exercise Period may not exceed 10 years from the relevant Date of Grant); 

“Fair Market Value” means, with respect to any Common Share at a particular date, the closing price on the
Nasdaq Global Market or, if the Common Shares are also listed on the Toronto Stock Exchange, the market or exchange where the majority of the trading volume and value of the Common Shares occurs on such date (or if such Common Shares did not trade
on such exchange on such day, the closing price on the most recent trading day); provided that in the event that such Common Shares are not then listed on such stock exchange, the Fair Market Value shall be determined based on the closing price of
such Common Shares on any stock exchange in Canada or the United States on which such Common Shares are then listed on the particular date (or if such Common Shares did not trade on such exchange on such day, the closing price on the most recent
trading day ); and further provided that in the event that such Common Shares are not then listed on any stock exchange in Canada or the United States, the Fair Market Value shall be determined by the Board in its sole discretion; 

“Incentive Stock Option” means an option granted under Section 4.6 of the Plan that meets the
requirements of Section 422 of the Code or any successor provision and is designated as such in the applicable Award Agreement; 

“Individual Optionee” means an Optionee who is an individual or the individual of which the Optionee is a
Permitted Assign, as the case may be; 
 “Insider” has the meaning set forth in the TSX Rules; 

“NI 45-106” means National Instrument
45-106 Prospectus and Registration Exemptions of the Canadian Securities Administrators, as amended from time to time; 

“Non Qualified Stock Option” means an option granted under Article 4 of the Plan that is not intended to be or
does not meet the requirements of an Incentive Stock Option. Any stock option granted by the Committee that is not designated as an Incentive Stock 

  
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 Option in the applicable Award Agreement will be deemed a Non Qualified Stock
Option; 
 “Option” means a right to purchase Common Shares under this Plan; 

“Optionee” means a Participant or a Director Participant who holds one or more Options under this Plan; 

“Optionee’s Employer” means the Company or such Subsidiary as is or, if the Optionee has ceased to be
employed by the Company or such Subsidiary, was the Optionee’s Employer; 
 “Other Share-Based Award”
means any right granted under Section 8.1 of this Plan; 
 “Participant” means an Employee
Participant or a Consultant Participant but not a Director Participant; 
 “Performance Compensation Award”
means the Award described in Section 7.5; 
 “Performance Goals” means performance goals based on one
or more of the following criteria: (i) earnings including operating income, earnings before or after taxes, earnings before or after interest, depreciation, amortization, or extraordinary or special items or book value per share (which may
exclude nonrecurring items); (ii) pre-tax income or after-tax income; (iii) earnings per Common Share (basic or diluted); (iv) operating profit; (v) revenue,
revenue growth or rate of revenue growth; (vi) return on assets (gross or net), return on investment, return on capital, or return on equity; (vii) returns on sales or revenues; (viii) operating expenses; (ix) stock price
appreciation or cumulative annual stock price appreciation; (x) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital;
(xi) implementation or completion of critical projects or processes; (xii) economic value created; (xiii) cumulative earnings per share growth; (xiv) operating margin or profit margin; (xv) Common Share price or total
shareholder return; (xvi) cost targets, reductions and savings, productivity and efficiencies; (xvii) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration, geographic business
expansion, customer satisfaction, employee satisfaction, human resources management, supervision of litigation, information technology, and goals relating to acquisitions, divestitures, joint ventures and similar transactions, and budget
comparisons; (xviii) personal professional objectives, including any of the foregoing performance goals, the implementation of policies and plans, the negotiation of transactions, the development of long term business goals, formation of joint
ventures, research or development collaborations, and the completion of other corporate transactions; and (xix) any combination of, or a specified increase in, any of the foregoing. Where applicable, the Performance Goals may be expressed in
terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company, a Subsidiary, or a division or strategic business
unit of the Company, or may be applied to the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined by the Committee. The Performance Goals may include a threshold level of
performance below which no payment will be made (or no vesting will occur), levels of performance at which 

  
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specified payments will be made (or specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur). The
Committee is authorized at any time during the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), or at any time thereafter (but only to the extent the exercise of
such authority after such period would not cause the Performance Compensation Awards or Performance Share Unit Awards granted to any Covered Employee to fail to qualify as “performance-based compensation” under Section 162(m) of the Code),
in its sole and absolute discretion, to adjust or modify the calculation of a Performance Goal for such Performance Period in order to prevent the dilution or enlargement of the rights of Participants based on the following events: (a) asset
write-downs; (b) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (c) any reorganization and restructuring programs; (d) extraordinary nonrecurring items as
described in Accounting Principles Board Opinion No. 30 (or any successor or pronouncement thereto) and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual
report to shareholders for the applicable year; (e) acquisitions or divestitures; (f) any other specific unusual or nonrecurring events, or objectively determinable category thereof; (g) foreign exchange gains and losses; (h) a
change in the Company’s fiscal year; 
 “Performance Period” means the one or more periods of time not
less than one fiscal quarter in duration, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance
Compensation Award or Performance Share Unit. 
 “Performance Share Unit” or “PSU” means
any right granted under Section 7.1 of the Plan; 
 “Permitted Assign” has the meaning assigned to that
term in NI 45-106; 
 “Person” includes an individual, sole
proprietorship, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, and a natural person in his or her capacity as trustee, executor, administrator or other legal representative;

 “Plan” means this Mitel Networks Corporation 2017 Omnibus Incentive Plan, as amended from time to time;

 “Re-Price” means any of the following (or any other action that
has the same effect as any of the following): (1) changing the terms of an Award to lower its exercise price (other than on account of capital adjustments resulting from share splits, etc., as described in Section 11.2 hereof),
(2) any other action that is treated as a repricing under generally accepted accounting principles, and (3) repurchasing for cash or canceling an Award in exchange for another Award at a time when its exercise price is greater than the
Fair Market Value of the underlying Stock, unless the cancellation and exchange occurs in connection with an event set forth in Article 10. 

“Restricted Share Unit” or “RSU” means a right to receive cash or a Common Share

  
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granted, as determined by the Committee, under Section 6.1 of this Plan; 

“Securities Act” means the United States Securities Act of 1933, as amended from time to time; 

“Security Based Compensation Arrangement” has the meaning given to that term in the TSX Rules; 

“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning
with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain 
 “Termination Date” means, in the case of a Participant or Director Participant whose employment or
term of office or engagement with the Company or an Affiliate terminates: 
  

	 	(i)	 by reason of the Participant’s or Director Participant’s death, the date of death; or

  

	 	(ii)	 for any reason whatsoever other than death, the later of: 

 

	 	(A)	 in the case of a Participant, the last day of the minimum statutory notice period, if any, to which that
Participant is entitled upon such termination pursuant to applicable employment and/or labour standards legislation; 

  

	 	(B)	 the date designated by the Company or the Affiliate, as the case may be, as the last day of the
Participant’s or Director Participant’s employment or term of office or engagement with the Company or the Affiliate, as the case may be; and 

provided that in the case of termination by reason of voluntary resignation by the Participant or Director Participant, such
date shall not be earlier than the date that notice of resignation was received from such Participant or Director Participant; 
  

	 	(iii)	 the date of consummation of a sale, divestiture, spin-off, or other
similar transaction with respect to a Company Affiliate where such Participant is employed by or provides services to such Company Affiliate as at the date of the consummation, unless the Participant’s employment or service is transferred to
another entity that would constitute a Company Affiliate immediately following such transaction. 

 and
“Termination Date” in any such case specifically does not mean the date on which any period of contractual or common law notice, reasonable notice, salary continuation or deemed employment that the Company or the Affiliate, as the
case may be, may be required at law to provide to a Participant would expire; 
 “TSX Rules” means Part VI
of the Company Manual of the Toronto Stock Exchange, as 

  
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amended from time to time; and 
 “U.S. Taxpayer”
shall mean a Participant or Director Participant who is a U.S. citizen, U.S. permanent resident or U.S. tax resident for purposes of the Code. 
  

	2.2	 Interpretation 

 

	 	(a)	 Whenever the Board or, where applicable, the Committee is to exercise discretion in the administration of this
Plan, the term “discretion” means the sole and absolute discretion of the Board or the Committee, as the case may be. 

  

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

  

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

  

	 	(d)	 Whenever any payment is to be made or action is to be taken on a day which is not a Business Day, such payment
shall be made or such action shall be taken on the next following Business Day. 

  

	 	(e)	 In this Plan, a Person is considered to be “controlled” by a Person if:

  

	 	(i)	 in the case of a Person, 

 

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

  

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

  

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

  

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

  
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 ARTICLE III 

ADMINISTRATION 
  

	3.1	 Administration 

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

  

	 	(a)	 determine the individuals to whom grants under the Plan may be made; 

 

	 	(b)	 make grants of Awards under the Plan relating to the issuance of Common Shares (including any combination of
Options, Deferred Share Units, Restricted Share Units, Performance Share Units or Other Share-Based Awards) in such amounts, to such Persons and, subject to the provisions of this Plan, on such terms and conditions as it determines including without
limitation: 

  

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

 

	 	(ii)	 the conditions under which: 

 

	 	(A)	 Awards may be granted to Participants or Director Participants; or 

 

	 	(B)	 other Awards may be forfeited to the Company, 

including any conditions relating to the attainment of specified Performance Goals; 

 

	 	(iii)	 the Exercise Price, and/or price to be paid by a Participant or Director Participant in connection with the
granting of Awards; 

  

	 	(iv)	 the time or times when each Option becomes exercisable and, subject to Section 4.3, the duration of the
Exercise Period; 

  

	 	(v)	 whether restrictions or limitations are to be imposed on the Common Shares issuable pursuant to grants of
Awards, and the nature of such restrictions or limitations, if any; and 

  

	 	(vi)	 any acceleration of exercisability or vesting, extending the post-termination exercise period of Options (but
not beyond the original expiry date) or waiver of termination regarding any Award, in situations addressing Change in Control, Corporation Transaction, death, Disability or certain terminations of service, based on such factors as the Board may
determine; 

  

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

  

	 	(d)	 make all other determinations and take all other actions necessary or advisable for the implementation and
administration of this Plan. 

 The Board’s determinations and actions within its authority under this Plan are
conclusive and binding on the Company and all other Persons. The day-to-day administration of the Plan may be 

  
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delegated to such officers and employees of the Company or of a Subsidiary as the Board determines. 
  

	3.2	 Delegation to Committee 

To the extent permitted by applicable law and the Company’s articles, the Board may, from time to time, delegate to a committee (the
“Committee”) of the Board all or any of the powers conferred on the Board under the Plan. In connection with such delegation, the Committee will exercise the powers delegated to it by the Board in the manner and on the terms
authorized by the Board. Any decision made or action taken by the Committee arising out of or in connection with the administration or interpretation of this Plan in this context is final and conclusive. Notwithstanding any such delegation or any
reference to the Committee in this Plan, the Board may also take any action and exercise any powers that the Committee is authorized to take or has power to exercise under this Plan. To the extent applicable in respect of certain Awards granted to a
Participant who is a Covered Employee, such Committee shall be composed of not less than two directors of the Company, neither of whom shall be employees of the Company or its Affiliates and each of whom shall otherwise be “outside
directors” for the purposes of Section 162(m) of the Code. Further, to the extent the Company wishes to have a “Qualified Plan” as defined in Rule 16b-3(b)(4), such Committee shall be composed
of not less than two directors of the Company, each of whom are “non-employee directors” for purposes of Section 16 of the Exchange Act and
Rule 16b-3 thereunder. 
  

	3.3	 Eligibility 

All Participants and Director Participants are eligible to participate in the Plan, subject to subsections 9.1(e) and 9.2(g). Eligibility to
participate does not confer upon any Participant or Director Participant any right to receive any grant of an Award pursuant to the Plan. The extent to which any Participant or Director Participant is entitled to receive a grant of an Award pursuant
to the Plan will be determined in the sole and absolute discretion of the Committee, provided however that the following restrictions shall also apply to this Plan, together with all other Security Based Compensation Arrangements of the Company:

  

	 	(a)	 the number of Common Shares issuable to Insiders, at any time, under all Security Based Compensation
Arrangements, shall not exceed 10% of issued and outstanding Common Shares; and 

  

	 	(b)	 the number of Common Shares issued to Insiders, within any one year period, under all Security Based
Compensation Arrangements, shall not exceed 10% of issued and outstanding Common Shares. 

 If the Company repurchases
Common Shares for cancellation such that the tests in Section 3.3(a) or (b) are not met following such repurchase, this shall not constitute non-compliance under the Plan for any Awards then outstanding.

  

	3.4	 Total Common Shares Available/Share Limits 

 

	 	(a)	 Subject to Section 3.4(b), the aggregate number of Common Shares that may be issued for all purposes pursuant
to the Plan must not exceed 9,000,000 Common Shares. No grant may be made under the Plan if such grant would result in the issuance of Common Shares in excess of the above-noted limit. From within the aggregate number of Common Shares above, the
aggregate number of Common 

  
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Shares that may be issued for purposes of the grant of Incentive Stock Options pursuant to the Plan must not exceed 9,000,000 Common Shares. 

 

	 	(b)	 For purposes of computing the total number of Common Shares available for grant under the Plan, Common Shares
subject to any Award (or any portion thereof) that has expired or is forfeited, cancelled or otherwise terminated prior to the issuance or transfer of such Common Shares and Common Shares subject to an Award (or portion thereof) that is settled in
cash in lieu of settlement in Common Shares shall again be available for grant under the Plan. In addition, Shares that are exchanged by a Participant or withheld by the Company as full or partial payment in connection with the exercise or
settlement of an Option shall not be available for subsequent Awards under the Plan. 

  

	 	(c)	 Individual Award Limits 

 

	 	(i)	 Subject to adjustment pursuant to Article 11, no Participant shall receive a grant of Awards covering, in the
aggregate in excess of 2,500,000 shares (including shares issuable pursuant to Options) during any calendar year. 

  

	 	(ii)	 Subject to adjustment pursuant to Article 11, no Director Participant shall receive a grant of cash and
Awards, in the aggregate with a grant date value in excess of $400,000 U.S. dollars during any calendar year, provided however that a non-employee director who is newly elected as a director shall be eligible
to receive a grant of cash and Awards with a value in the aggregate up to $700,000 U.S. dollars in such in such initial year; and provided further that any advance election by a Director Participant to receive an Award of DSUs instead of cash for
director fees shall not count against such limit. 

  

	 	(iii)	 The maximum amount that can be paid in any calendar year to any Participant pursuant to a cash Performance
Compensation Award described in Section 7.5 shall be $5,000,000 U.S dollars. 

  

	3.5	 Award Agreements 

All grants of Awards under this Plan will be evidenced by Award Agreements. Award Agreements will be subject to the applicable provisions of
this Plan and will contain such provisions as are required by this Plan and any other provisions that the Committee may direct. Any one officer of the Company is authorized and empowered to execute and deliver, for and on behalf of the Company, an
Award Agreement to each Participant or Director Participant granted an Award pursuant to this Plan. 
  

	3.6	 Conditions of Grant 

Each Participant or Director Participant will, when requested by the Company, sign or acknowledge and deliver all such documents relating to
the granting of Awards or exercise of Options which the Company deems necessary or desirable, and shall be deemed to have accepted such award by electronic acknowledgement through the stock plan administration procedures established by the Company.

  

	3.7	 Non-transferability of Awards 

  
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 Subject to Section 9.1, Awards granted under this Plan may only be exercised during the
lifetime of the Participant or Director Participant by such Participant or Director Participant personally. No assignment or transfer of Awards, whether voluntary, involuntary, by operation of law or otherwise, vests any interest or right in such
Awards whatsoever in any assignee or transferee (except that a Participant or Director Participant may transfer Awards (other than Incentive Stock Options) to Permitted Assigns in a manner consistent with applicable tax and securities laws) and
immediately upon any assignment or transfer, or any attempt to make the same, such Awards will terminate and be of no further force or effect. Further, an Incentive Stock Option shall not be transferrable other than by will or by the law of descent
and distribution and shall be exercisable during the life time of the Participant, only by the Participant. If any Participant or Director Participant has transferred Awards to a corporation pursuant to this Section 3.7, such Awards will
terminate and be of no further force or effect if at any time the transferor should cease to own all of the issued shares of such corporation. 
  

	3.8	 Minimum Vesting Requirements. 

Notwithstanding any provision of the Plan to the contrary, the Committee shall not award more than 5% of the total common Shares available
pursuant to Section 3.4 pursuant to Awards that are scheduled to vest in less than 12 months of the date of grant, subject, in each case, to the Committee’s authority under the Plan to vest Awards earlier, as the Committee deems
appropriate as permitted by Section 3.1(b) hereof. This Section 3.8 shall not apply to awards of DSUs received by a Participant pursuant to an advance election by a Director to receive an Award of DSUs instead of cash for vested director fees
or an advance election by an Employee Participant to receive an Award of DSUs instead of vested cash compensation. 
 ARTICLE IV 

GRANT OF OPTIONS 
  

	4.1	 Grant of Options 

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

	4.2	 Exercise Price 

The Exercise Price will be as determined by the Committee but in any event will be no less than the Fair Market Value on the Date of Grant. The
Committee may not Re-Price outstanding Options unless there is approval by the Company shareholders. 
  

	4.3	 Term of Options 

Subject to any accelerated termination as permitted by the Committee or as otherwise set forth in this Plan, each Option, unless otherwise
specified by the Committee, expires on the seventh (7th) anniversary of the Date of Grant (provided that if such expiry would otherwise be during or immediately after a Black Out Period, then the expiry shall be extended until ten (10) Business
Days following the expiration of the Black Out Period); provided that in no event will the Exercise Period of an Option exceed ten (10) years from its Date of Grant. 

The Committee shall have the authority to condition the grant or vesting of Options upon the

  
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attainment of specified Performance Goals, or such other factors (which may vary as between Options) as the Committee may determine in its sole discretion. 

 

	4.4	 Exercise of Options 

Unless otherwise specified by the Committee at the time of granting an Option and reflected in an Award Agreement, and except as otherwise
provided in this Plan, each Option will vest and be exercisable as to one-quarter of the Common Shares which are subject to such Option, on the date which is twelve months after the Date of Grant, and
thereafter, one-sixteenth of such original quantity of Common Shares will vest quarterly on each subsequent three-month anniversary of the Date of Grant, the final
one-sixteenth of such Common Shares to vest on the fourth (4th) anniversary of the Date of Grant. 

Once an instalment vests and becomes exercisable, it remains exercisable until expiration or termination of the Option, unless otherwise
specified by the Committee in connection with the grant of such Option or otherwise as specified herein. Each Option may be exercised at any time or from time to time, in whole or in part, for up to the total number of Common Shares with respect to
which it is then exercisable. The Committee has the right to accelerate the date upon which any instalment of any Option becomes exercisable. 

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

	4.5	 Payment of Exercise Price 

The Exercise Notice must be accompanied by payment in full of the Exercise Price in respect of the Common Shares to be purchased. The Exercise
Price must be fully paid by cash, certified cheque, bank draft or money order payable to the Company. No Common Shares will be issued or transferred until full payment therefor has been received by the Company. As soon as practicable after receipt
of any Exercise Notice and full payment of the Exercise Price, the Company will issue such Common Shares to the Participant or Director Participant, as the case may be. 
  

	4.6	 Incentive Stock Options 

The following provisions will apply only to Incentive Stock Options granted under the Plan: 

 

	 	(a)	 No Incentive Stock Option may be granted to any Employee Participant who, at the time such Option is granted,
(i) is not an employee of the Company or a Subsidiary or (ii) owns securities possessing more than ten percent (10%) of the total combined voting power of all classes of securities of the Company or of any Subsidiary, except that with
respect to provision (ii) hereof such an Option may be granted to such an Employee if, at the time the Option is granted, the exercise price is at least one hundred ten percent (110%) of the Fair Market Value of the Common Shares subject to the
Option, and the Option by its terms is not exercisable after the expiration of five (5) years from the Date of Grant; and 

  

	 	(b)	 To the extent that the aggregate Fair Market Value of the Common Shares with respect to which Incentive Stock
Options (without regard to this subsection) are exercisable for the first time by any individual during any calendar year (under all plans of the Company and its Affiliates) exceeds U.S. $100,000, such Options will be treated as Non Qualified Stock
Options. This subsection will be applied 

  
 14 

	 	 
by taking Options into account in the order in which they were granted. If some but not all Options granted on any one day are subject to this subsection, then such Options will be apportioned
between Incentive Stock Option and Non Qualified Stock Option treatment in such manner as the Committee will determine. The maximum number of Common Shares that may be issued under Incentive Stock Options granted under the Plan shall be equal to the
number of Common Shares available for issuance pursuant to Section 3.4 of the Plan. 

  

	4.7	 Special Rule Applicable to U.S. Taxpayers 

With respect to Options granted to Participants or Director Participants who are U.S. Taxpayers, Common Shares shall constitute “stock of
the service recipient” within the meaning of Section 409A of the Code if such Participant or Director Participant performs services for any Affiliate that is at least fifty percent (50%) owned by the Company. 

ARTICLE V 
 GRANT OF
DEFERRED SHARE UNITS 
  

	5.1	 Number of Deferred Share Units 

The Committee may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Committee may
prescribe, grant Deferred Share Units to any Participant or Director Participant. 
 All Deferred Share Units received by a Participant or
Director Participant shall be credited to an account maintained for the Participant or the Director Participant on the books of the Company, as of the Date of Grant. The award of Deferred Share Units for a calendar year to a Participant or Director
Participant shall be evidenced by an Award Agreement or such other documentation pursuant to Company practices. 
  

	5.2	 Distribution of Deferred Share Units 

A Participant or Director Participant shall receive, on the Distribution Date, a lump sum payment in cash equal to the number of Deferred Share
Units recorded in the Participant’s or Director Participant’s account on the Distribution Date multiplied by the Fair Market Value, less any applicable withholding taxes. At the option of the Committee, the Company may settle the Deferred
Share Units in Common Shares. Upon payment in full of the value of the Deferred Share Units, whether in cash or in Common Shares, the Deferred Share Units shall be cancelled. 

  
 15 

	5.3	 Death of Participant Prior to Distribution 

Upon the death of a Participant or Director Participant prior to the distribution of the Deferred Share Units credited to the account of such
Participant or Director Participant under the Plan, a cash payment shall be made to the estate of such Participant or Director Participant on or about the sixtieth (60th) day after the death of the Participant or Director Participant or on a later
date elected by the Participant’s or Director Participant’s estate, in the form prescribed for such purposes by the Company and delivered to the Corporate Secretary no later than twenty (20) days after the Company is notified of the
death of the Participant or Director Participant, provided that such date is no later than the last Business Day of the calendar year following the calendar year in which the Participant or Director Participant dies. Notwithstanding the foregoing,
and to the extent necessary to comply with the requirements of Section 409A of the Code, upon the death of a Participant or a Director Participant who is a U.S. Taxpayer, such cash payment shall be made on the thirtieth (30th) day after such
Participant’s or Director Participant’s death or as soon as practicable thereafter and no subsequent deferral of the payment may be made. Such cash payment shall be equivalent to the amount which would have been paid to the Participant or
Director Participant pursuant to and subject to Section 5.2, calculated on the basis that the day on which the Participant or Director Participant dies, or the date elected by the estate, as applicable, is the Distribution Date. Upon payment in
full of the value of all of the Deferred Share Units that become payable under this Section 5.3, the Deferred Share Units shall be cancelled. 

ARTICLE VI 
 GRANT OF
RESTRICTED SHARE UNITS 
  

	6.1	 Grant of RSUs 

The Committee may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Committee may
prescribe, grant RSUs to any Participant or any Director Participant. 
  

	6.2	 Terms of RSUs 

The Committee shall have the authority to condition the grant of RSUs upon the attainment of specified Performance Goals, or such other factors
(which may vary as between awards of RSUs) as the Committee may determine in its sole discretion. 
  

	6.3	 Vesting of RSUs 

The Committee shall have the authority to determine at the time of grant, in its sole discretion subject to this Plan, the duration of the
vesting period and other vesting terms applicable to the grant of RSUs, which terms shall be set out in the applicable Award Agreement. 
  

	6.4	 Share Certificates 

Unless otherwise specified in the Award Agreement, as soon as practicable following the expiry of the applicable vesting period, or at such
later date as may be determined by the Committee in its sole discretion, a share certificate representing the Common Shares issuable pursuant to the RSUs shall be registered in the name of the Participant or Director Participant, or as the
Participant or Director Participant may direct, subject to applicable securities laws. 

  
 16 

 ARTICLE VII 

PERFORMANCE SHARE UNITS 
  

	7.1	 Grant of Performance Share Units 

The Committee may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Committee may
prescribe, grant Performance Share Units to any Participant. Each Performance Share Unit will consist of a right, (i) denominated or payable in cash, Common Shares, other securities or other property, and (ii) which will confer on the
holder thereof rights valued as determined by the Committee and payable to, or exercisable by, the holder of the Performance Share Unit, in whole or in part, upon the achievement of such Performance Goals during such Performance Periods as the
Committee will establish. 
  

	7.2	 Value of Performance Share Units 

The initial value of a Performance Share Unit will be established by the Committee at the Date of Grant and, to the extent related to Common
Shares, other securities or other property will initially be equal to 100% of the Fair Market Value of a Common Share or the fair market value (as determined by the Board) of such other security or such other property on the Date of Grant. 

 

	7.3	 Terms of Performance Share Units 

Subject to the terms of the Plan and any applicable Award Agreement, the Performance Goals to be achieved during any Performance Period, the
length of any Performance Period, the amount of any Performance Share Unit granted, the termination of a Participant’s employment and the amount of any payment or transfer to be made pursuant to any Performance Share Unit will be determined by
the Committee and by the other terms and conditions of any Performance Share Unit. 
  

	7.4	 Performance Goals 

The Committee will issue Performance Goals within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum
period allowed under Section 162(m) of the Code). The Performance Goals may be based upon the achievement of Company-wide, divisional or individual goals, or any other basis determined by the Committee. Notwithstanding the foregoing, to the extent
deemed desirable by the Committee, in the case of a Covered Employee, the Committee shall establish only the Performance Goals of the type set forth in Section 2.1. 
  

	7.5	 Performance Compensation Awards 

 

	 	(a)	 General 

The Committee shall have the authority, at the time of grant of any Award described in this Plan (other than Options granted
with an exercise price equal to or greater than the Fair Market Value per share of Common Share on the Grant Date), to determine whether such Award shall be “qualified performance-based compensation” under Section 162(m) of the Code. In
addition, the Committee shall have the authority to make an Award of a cash bonus to any Participant and designate such Award as a Performance Compensation Award in order to qualify such Award as “performance-based compensation” under
Section 162(m) of the Code. 

  
 17 

	 	(b)	 Eligibility 

The Committee will, in its sole discretion, designate within the first 90 days of a Performance Period (or, if longer or
shorter, within the maximum period allowed under Section 162(m) of the Code) which Participants will be eligible to receive Performance Compensation Awards in respect of such Performance Period. However, designation of a Participant eligible to
receive an Award hereunder for a Performance Period shall not in any manner entitle the Participant to receive payment in respect of any Performance Compensation Award for such Performance Period. The determination as to whether such Participant
becomes entitled to payment in respect of any Performance Compensation Award shall be decided solely in accordance with the provisions of this Section 7.5. Moreover, designation of a Participant eligible to receive an Award hereunder for a
particular Performance Period shall not require designation of such Participant eligible to receive an Award hereunder in any subsequent Performance Period and designation of one person as a Participant eligible to receive an Award hereunder shall
not require designation of any other person as a Participant eligible to receive an Award hereunder in such period or in any other period. 
  

	 	(c)	 Discretion of Committee with Respect to Performance Compensation Awards 

With regard to a particular Performance Period, the Committee shall have full discretion to select the length of such
Performance Period (provided any such Performance Period shall be not less than one fiscal quarter in duration), the type(s) of Performance Compensation Awards to be issued, the measurement criteria that will be used to establish the Performance
Goal(s), the kind(s) and/or level(s) of the Performance Goal (s) that is (are) to apply to the Company. Within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m) of the
Code), the Committee shall, with regard to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to each of the matters enumerated in the immediately preceding sentence of this Section
7.5(c) and record the same in writing. 
  

	 	(d)	 Payment of Performance Compensation Awards 

 

	 	(i)	 Condition to Receipt of Payment 

Unless otherwise provided by the Committee, a Participant must be employed by the Company on the date of payment to be
eligible for payout in respect of a Performance Compensation Award for such Performance Period. 
  

	 	(ii)	 Limitation 

A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent that the
measurement factors established by the Committee as applied against the Performance Goals determines that all or some portion of such Participant’s Performance Compensation Award has been earned for the Performance Period. 

 

	 	(iii)	 Certification 

Following the completion of a Performance Period, the Committee shall review and certify in writing whether, and to what
extent, the Performance 

  
 18 

 
Goals for the Performance Period have been achieved and, if so, calculate and certify in writing the amount of the Performance Compensation Awards earned for the period based upon the Performance
Formula. The Committee shall then determine the actual size of each Participant’s Performance Compensation Award for the Performance Period and, in so doing, may apply Negative Discretion in accordance with
Section 7. 1.1(d)(iv) hereof, if and when it deems appropriate. 
  

	 	(iv)	 Use of Discretion 

In determining the actual size of an individual Performance Compensation Award for a Performance Period, the Committee may
reduce or eliminate the amount of the Performance Compensation Award earned under the Performance Goals in the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction or elimination is appropriate. The
Committee shall not have the discretion to (A) grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance Goals for such Performance Period have not been attained or (B) increase a
Performance Compensation Award above the maximum amount payable under Section 1.1(d)(i) of the Plan. 
  

	 	(v)	 Timing of Award Payments 

Performance Compensation Awards granted for a Performance Period shall be paid to Participants as soon as administratively
practicable following completion of the certifications required by this Section 7.5 . 
 ARTICLE VIII 

OTHER SHARE-BASED AWARDS 
  

	8.1	 Other Share-Based Awards 

The Committee may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Committee may
prescribe, grant Other Share-Based Awards to any Participant. Each Other Share-Based Award will consist of a right (1) which is other than an Award or right described in Article 4, 5, 6 or 7 above and (2) which is denominated or payable
in, valued in whole or in part by reference to, or otherwise based on or related to, Common Shares (including, without limitation, securities convertible into Common Shares) as are deemed by the Committee to be consistent with the purposes of the
Plan; provided, however, that such right will comply with applicable law. Subject to the terms of the Plan and any applicable Award Agreement, the Committee will determine the terms and conditions of Other Share-Based Awards. Common Shares or other
securities delivered pursuant to a purchase right granted under this Section 8.1 will be purchased for such consideration, which may be paid by such method or methods and in such form or forms, including, without limitation, cash, Common
Shares, other securities, other Awards, other property, or any combination thereof, as the Committee will determine. 
 ARTICLE IX

 TERMINATION OF EMPLOYMENT 

  
 19 

	9.1	 Death or Disability 

Subject to Section 5.3, and unless otherwise specified in an Award Agreement, if a Participant or Director Participant dies or becomes
Disabled while an employee, officer or director of or consultant to the Company or an Affiliate: 
  

	 	(a)	 the executor or administrator of the Participant’s or Director Participant’s estate or the
Participant or Director Participant, as the case may be, may exercise Options of the Participant or Director Participant. The number of Options exercisable shall equal: 

 

	 	(i)	 the number of Options that were exercisable at the Termination Date; plus 

 

	 	(ii)	 a portion of the next instalment of the Options due to vest equal to the number of Options next due to vest
multiplied by a fraction the numerator of which is the number of days elapsed since the date of vesting of the last instalment of the Options (or if none have vested, the Date of Grant) to the Termination Date and the denominator of which is the
number of days between the date of vesting of the last instalment of the Option (or if none have vested, the Date of Grant) and the date of vesting of the next instalment of the Option; 

 

	 	(b)	 the right to exercise such Options terminates on the earlier of: (i) the date that is twelve months after
the Termination Date; and (ii) the date on which the Exercise Period of the particular Option expires. Subject to subsection (a), any Options held by the Participant or Director Participant that are not yet exercisable at the Termination Date
immediately expire and are cancelled on the Termination Date; 

  

	 	(c)	 except for Performance Compensation Awards, a portion of the next instalment of any other Awards due to vest
shall immediately vest, such portion to equal the number of Awards next due to vest multiplied by a fraction the numerator of which is the number of days elapsed since the date of vesting of the last instalment of the Awards (or if none have vested,
the Date of Grant) to the Termination Date and the denominator of which is the number of days between the date of vesting of the last instalment of the Awards (or if none have vested, the Date of Grant) and the date of vesting of the next instalment
of the Awards; 

  

	 	(d)	 subject to subsection (c), any other Awards held by the Participant or Director Participant that are not yet
vested at the Termination Date are immediately forfeited to the Company on the Termination Date; and 

  

	 	(e)	 such Participant’s or Director Participant’s eligibility to receive further grants of Awards under
the Plan ceases as of the Termination Date. 

  

	9.2	 Termination of Employment or Services 

 

	 	(a)	 Where a Participant’s or Director Participant’s employment or term of office or engagement with the
Company or an Affiliate terminates by reason of the Participant’s death or Disability or, in the case of a Director Participant, the Director Participant’s death or Disability, then the provisions of Section 9.1 will apply.

  
 20 

	 	(b)	 Where a Participant’s employment or term of office or engagement terminates by reason of a
Participant’s resignation, then unless otherwise specified in the Award Agreement, any Options held by the Participant that are exercisable at the Termination Date continue to be exercisable by the Participant until the earlier of: (A) the
date that is 30 days after the Termination Date; and (B) the date on which the Exercise Period of the particular Option expires. Any Options held by the Participant that are not yet exercisable at the Termination Date immediately expire and are
cancelled on the Termination Date, and any other Awards held by the Participant that are not yet vested at the Termination Date are immediately forfeited to the Company on the Termination Date. 

 

	 	(c)	 Where a Participant’s employment or term of office or engagement terminates by reason of termination by
the Company or an Affiliate without cause (as determined by the Committee in its sole discretion) (whether such termination occurs with or without any or adequate notice or reasonable notice, or with or without any or adequate compensation in lieu
of such notice), then, unless otherwise specified in the Award Agreement, any Options held by the Participant that are exercisable at the Termination Date continue to be exercisable by the Participant until the earlier of: (A) the date that is
90 days after the Termination Date; and (B) the date on which the Exercise Period of the particular Option expires. Any Options held by the Participant that are not yet exercisable at the Termination Date immediately expire and are cancelled on
the Termination Date, and any other Awards held by the Participant that are not yet vested at the Termination Date are immediately forfeited to the Company on the Termination Date. 

 

	 	(d)	 Where a Participant’s employment or term of office or engagement is terminated by the Company or an
Affiliate for cause (as determined by the Committee in its sole discretion), or, in the case of a Consultant Participant, for breach of contract (as determined by the Committee in its sole discretion), then any Options held by the Participant at the
Termination Date (whether or not exercisable) immediately expire and are cancelled on the Termination Date, and any other Awards held by the Participant at the Termination Date (whether or not vested) are immediately forfeited to the Company on the
Termination Date. 

  

	 	(e)	 Where a Director Participant’s term of office is terminated for breach by the Director Participant of his
or her fiduciary duty to the Company (as determined by the Committee in its sole discretion), then any Options held by the Director Participant at the Termination Date (whether or not exercisable) immediately expire and are cancelled on the
Termination Date, and any other Awards held by the Director Participant at the Termination Date (whether or not vested) are immediately forfeited to the Company on the Termination Date. 

 

	 	(f)	 Where a Director Participant’s term of office terminates for any reason other than death or Disability of
the Director Participant or a breach by the Director Participant of his or her fiduciary duty to the Company (as determined by the Committee in its sole discretion), the Committee or the Board may, in its sole discretion, at any time prior to or
following the Termination Date, (A) permit the exercise of any or all Options held by the Director Participant, whether or not 

  
 21 

	 	 
exercisable at the Termination Date, in the manner and on the terms authorized by the Board, provided that neither the Committee nor the Board shall, in any case, authorize the exercise of an
Option pursuant to this Section beyond the date on which the Exercise Period of the particular Option expires; and (B) provide for the vesting of any or all other Awards held by a Director Participant on the Termination Date.

  

	 	(g)	 The eligibility of a Participant or Director Participant to receive further grants under the Plan ceases as of
the date that the Company or an Affiliate, as the case may be, provides the Participant or Director Participant with written notification that the Participant’s employment or term of office, or the Director Participant’s term of office, as
the case may be, is terminated, notwithstanding that such date may be prior to the Termination Date. 

  

	 	(h)	 Unless the Committee, in its sole discretion, otherwise determines, at any time and from time to time, Awards
are not affected by a change of employment arrangement within or among the Company or a Subsidiary for so long as the Participant continues to be an employee of the Company or a Subsidiary, including without limitation a change in the employment
arrangement of a Participant whereby such Participant becomes a Director Participant. 

  

	9.3	 Incentive Stock Options 

Notwithstanding anything to the contrary in this Article 9, in the case of an Incentive Stock Option, any Incentive Stock Options held by a
U.S. Taxpayer that are exercisable at the Termination Date continue to be exercisable by the U.S. Taxpayer until the earlier of: (A) the date that is three months after the Termination Date; (B) the date on which the Exercise Period of the
particular Incentive Stock Option expires; or (C) any shorter post-Termination Date exercise period as is set forth in this Article 9 or in the U.S. Taxpayer’s Award Agreement. 

ARTICLE X 
 CHANGE IN
CONTROL 
  

	10.1	 Corporate Transaction/Change in Control 

 

	 	(a)	 Corporate Transaction. In the event that the Company is a party to a Corporate Transaction, outstanding
Awards shall be subject to the applicable agreement of merger, reorganization, or sale of assets. Such agreement may provide, without limitation, for 

  

	 	i.	 the continuation of an outstanding Award by the Company (if the Company is the surviving corporation),

  

	 	ii.	 the assumption or substitution of outstanding Options, or other Awards by the surviving corporation or its
parent, except that the exercise price and the number and nature of shares issuable upon exercise of any such Option, will be adjusted appropriately pursuant to Section 424(a) of the Code, 

 

	 	iii.	 the assumption of outstanding Award Agreements by the surviving corporation or its parent,

  
 22 

	 	iv.	 the replacement of outstanding Options, and other Awards with a cash incentive program of the surviving
corporation which preserves the spread existing on the unvested portions of such outstanding Awards at the time of the transaction and provides for subsequent payout in accordance with the same vesting provisions applicable to those Awards,

  

	 	v.	 or for the cancellation of outstanding Options, and other Awards, with or without consideration,

 in all cases without the consent of the Participant. 

 

	 	(b)	 Acceleration. The Committee may determine, at the time of grant of an Award or thereafter, that in the
event of a Change of Control, such Award shall become fully or partially vested as to all Common Shares subject to such Award. 

  

	 	(c)	 Dissolution. To the extent not previously exercised or settled, Options, and other Awards shall
terminate immediately prior to the dissolution or liquidation of the Company. 

  

	10.2	 Parachute Payments 

If a Participant or Director Participant is entitled to receive payments that would qualify as excess “parachute payments” under
Section 280G of the Code, those payments shall be reduced by the necessary amount so that the Participant or Director Participant is not subject to excise tax under Section 4999 of the Code if such reduction would result in the Participant or
Director Participant receiving a greater after-tax payment. If a reduction is necessary, cash payments shall first be reduced, beginning with the payment that is scheduled to be paid the latest and continuing
to reduce earlier scheduled payments, followed by reduction in full value Share Awards, and then Options. 
 ARTICLE XI 

SHARE CAPITAL ADJUSTMENTS 
  

	11.1	 General 

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

 

	11.2	 Reorganization of Company’s Capital 

Should the Company effect a subdivision or consolidation of Common Shares or any similar capital reorganization or a payment of a stock
dividend (other than a stock dividend that is in lieu of a cash dividend), or should any other change be made in the capitalization of the Company, 

  
 23 

 
amalgamation, combination, arrangement, merger or other transaction or reorganization involving the Company and occurring by exchange of Common Shares, by sale or lease of assets or otherwise, in
each case that does not constitute a Change in Control then: (a) the number of Common Shares that may be acquired on the vesting of outstanding Awards or the exercise of any outstanding Options; and/or (b) the Exercise Price of any
outstanding Options; and/or (c) the terms of any Other Award in order to preserve proportionately the rights and obligations of the Participants or Director Participants holding such Awards, shall be proportionately adjusted, subject to any
required action by the Board or the stockholders of the Company and in compliance with applicable securities laws, and the number of Common Shares issuable under the Plan shall be correspondingly adjusted. 

 

	11.3	 Immediate Exercise of Awards 

Where the Board determines that the steps provided in Sections 11.2 would not preserve proportionately the rights, value and obligations of the
Participants or Director Participants holding such Awards in the circumstances or otherwise determines that it is appropriate: 
  

	 	(a)	 the Board may permit the immediate exercise of any outstanding Options that are not otherwise exercisable, and
the immediate vesting of any unvested Awards; and 

  

	 	(b)	 if the Board takes the step contemplated in (a) above, the Board may also authorize the Company, to the
extent permitted under applicable laws, to 

 offer to purchase any Options from any Participant or Director Participants
for a price equal to the difference between the Fair Market Value of the underlying Common Shares and the Exercise Price of the Options. 
  

	11.4	 Issue by Company of Additional Shares 

Except as expressly provided in this Article 11, neither the issue by the Company of shares of any class or securities convertible into or
exchangeable for shares of any class, nor the conversion or exchange of such shares or securities, affects, and no adjustment by reason thereof is to be made with respect to: (a) the number of Common Shares that may be acquired as a result of a
grant of Awards or upon the exercise of any outstanding Options; or (b) the Exercise Price of any outstanding Options. 
  

	11.5	 Fractions 

No fractional Common Shares will be issued on the exercise of an Option or the grant of an Award. Accordingly, if, as a result of any
adjustment under Section 11.2 a Participant or Director Participant would become entitled to a fractional Common Share, the Participant or Director Participant has the right to acquire only the adjusted number of full Common Shares and no
payment or other adjustment will be made with respect to the fractional Common Shares which shall be disregarded. 
 ARTICLE XII 

MISCELLANEOUS PROVISIONS 
  

	12.1	 Legal Requirement 

  
 24 

 The Company is not obligated to grant any Awards, issue any Common Shares or other securities,
make any payments or take any other action if, in the opinion of the Board, in its sole discretion, such action would constitute a violation by a Participant, Director Participant or the Company of any provision of any applicable statutory or
regulatory enactment of any government or government agency or the requirements of any stock exchange upon which the Common Shares may then be listed. 
  

	12.2	 Participants’ Entitlement 

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

	12.3	 Withholding Taxes 

The granting or vesting of each Award and exercise of each Option granted under this Plan is subject to the condition that if at any time the
Committee determines, in its discretion, that the satisfaction of withholding tax or other withholding liabilities is necessary or desirable in respect of such grant, vesting or exercise, such exercise is not effective unless such withholding has
been effected to the satisfaction of the Committee. In such circumstances, the Committee may require that the withholding tax obligation be satisfied by any of the following methods or by a combination of such methods: 

 

	 	(a)	 the tendering by the Participant or Director Participant of cash payment to the Company in an amount less than
or equal to the total withholding tax obligation; or 

  

	 	(b)	 permitting the Participant to direct the Company to withhold from the Common Shares otherwise due to the
Participant or Director Participant such number of Common Shares having a Fair Market Value, determined as of the date the withholding tax obligation arises, less than or equal to the amount of the total withholding tax obligation in the relevant
jurisdiction; or 

  

	 	(c)	 the withholding by the Company from any cash payment otherwise due to the Participant or Director Participant
such amount of cash as is less than or equal to the amount of the total withholding tax obligation; 

 provided, however,
that the sum of any cash so paid or withheld and the Fair Market Value of any Common Shares so withheld is sufficient to satisfy the total withholding tax obligation. Any such additional payment is due no later than the date on which any amount with
respect to the Award or exercised Option is required to be remitted to the relevant tax authority by the Company or an Affiliate, as the case may be. 
  

	12.4	 Rights of Participant 

No Participant or Director Participant has any claim or right to be granted an Award (including, without limitation, an Option granted in
substitution for any Option that has expired pursuant to the terms of this Plan) and the granting of any Award is not to be construed as giving a 

  
 25 

 
Participant or Director Participant a right to remain as an employee, consultant or director of the Company or an Affiliate. No Participant or Director Participant has any rights as a shareholder
of the Company in respect of Common Shares issuable on the exercise of any Option or issuable pursuant to any other Award until the allotment as a book entry representing the delivery or the issuance to such Participant or Director Participant of
certificates representing such Common Shares. 
  

	12.5	 Other Incentive Awards 

The Committee shall have the right to grant other incentive awards based upon Common Shares under this Plan to Participants or Director
Participants in accordance with applicable laws and regulations and subject to regulatory approval, including without limitation the approval of the Toronto Stock Exchange and Nasdaq (to the extent the Company has any securities listed on the
particular exchange), having such terms and conditions as the Committee may determine, including without limitation the grant of Common Shares based upon certain conditions and the grant of securities convertible into Common Shares. 

 

	12.6	 Termination 

The Plan will terminate on the earliest of: (i) the date upon which no further Common Shares remain available for issuance under the Plan
and no Options or other Awards remain outstanding; and (ii) the acceleration of the vesting, if any, of Options and other Awards pursuant to Section 10.1 upon the occurrence of a Change in Control, unless renewed for such further period
and upon such terms and conditions as the Committee may determine, but in all events the Plan will automatically terminate on April 25, 2027, being the tenth anniversary of the effective date of the Plan. 

 

	12.7	 Amendment 

  

	 	(a)	 Subject to the rules and policies of any stock exchange on which the Common Shares are listed and applicable
law, the Board may, without notice or shareholder approval, at any time or from time to time, amend the Plan for the purposes of: 

  

	 	(i)	 making any amendments to the general vesting provisions of each Option, PSU, RSU or other Award, including
accelerating the vesting conditions in situations addressing Change in Control, Corporation Transaction, death, Disability or certain terminations of service, based on such factors as the Board may determine; 

 

	 	(ii)	 making any amendments to the general term of each Option provided that no Option held by an Insider may be
extended beyond its original expiry date, and no Option may be exercised after the tenth (10th) anniversary of the Date of Grant; 

  

	 	(iii)	 making any amendments to the provisions set out in Article 9; 

 

	 	(iv)	 making any amendments to add covenants of the Company for the protection of Participants or Director
Participants, as the case may be, provided that the Board shall be of the good faith opinion that such additions will not be materially prejudicial to the rights or interests of the Participants or Director Participants, as the case may be;

  
 26 

	 	(v)	 making any amendments not inconsistent with the Plan as may be necessary or desirable with respect to matters
or questions which, in the good faith opinion of the Board, having in mind the best interests of the Participants and Director Participants, it may be expedient to make, including amendments that are desirable as a result of changes in law in any
jurisdiction where a Participant or Director Participant resides, provided that the Board shall be of the opinion that such amendments and modifications will not be materially prejudicial to the interests of the Participants and Director
Participants; or 

  

	 	(vi)	 making such changes or corrections which, on the advice of counsel to the Company, are required for the
purpose of curing or correcting any ambiguity or defect or inconsistent provision or clerical omission or mistake or manifest error, provided that the Board shall be of the opinion that such changes or corrections will not be prejudicial to the
rights and interests of the Participants or Director Participants. 

  

	 	(b)	 Subject to Section 10.1, the Board shall not materially alter or impair any rights or increase any
obligations with respect to an Award previously granted under the Plan without the consent of the Participant or Director Participant, as the case may be. 

  

	 	(c)	 Notwithstanding any other provision of this Plan, none of the following amendments shall be made to this Plan
without approval of the Toronto Stock Exchange and Nasdaq (to the extent such consent is required and the Company has any securities listed on the particular exchange) and the approval of shareholders in accordance with the requirements of such
exchange(s): 

  

	 	(i)	 amendments to the Plan which would increase the number of Common Shares issuable under the Plan, except
pursuant to the provisions in the Plan, including Section 11.2, which permit the Board to make adjustments in the event of transactions affecting the Company or its capital; 

 

	 	(ii)	 amendments to the Plan which would increase the number of Common Shares issuable to Insiders, except in
connection with a Change in Control or pursuant to the provisions in the Plan, including Sections 11.2, which permit the Board to make adjustments in the event of transactions affecting the Company or its capital; 

 

	 	(iii)	 amendments to the Plan which would increase the number of Common Shares issuable to Director Participants
under the Plan, otherwise than in accordance with the terms of this Plan; 

  

	 	(iv)	 amendments that would extend the Exercise Period of any Options held by Insiders, beyond the Exercise Period
otherwise determined in accordance with this Plan (except the automatic extension of Options which otherwise would expire during or immediately after a Blackout Period as provided in this Plan); 

 

	 	(v)	 amendments that would extend the expiry of an Option to be beyond ten

  
 27 

	 	 
years from its date of grant; 

  

	 	(vi)	 amendments that would reduce the Exercise Price of any Options held by Insiders (for this purpose, a
cancellation or termination of an Option of a Participant or Director Participant prior to its expiry date for the purpose of reissuing an Option to the same Participant or Director Participant within three (3) months of such cancellation or
termination with a lower exercise price shall be treated as an amendment to reduce the exercise price of an Option), except for the purpose of maintaining Option value in connection with a Change in Control or pursuant to the provisions in the Plan,
including Sections 11.2, which permit the Board to make adjustments in the event of transactions affecting the Company or its capital; 

  

	 	(vii)	 the addition of any form of financial assistance to a Participant or Director Participant;

  

	 	(viii)	 amendments that would permit Options or rights under the Plan to be transferred other than for normal estate
settlement purposes; 

  

	 	(ix)	 amendments to this Section 12.7; and 

 

	 	(x)	 amendments for which the applicable exchange rules require shareholder approval. 

Any amendment that would cause an Award held by a U.S. Taxpayer to fail to comply with Section 409A of the Code shall be null and void ab
initio. 
  

	12.8	 Section 409A of the Code 

This Plan will be construed and interpreted to be exempt from the requirements of Section 409A of the Code, however, to the extent that Awards
are not so exempt, then Awards will be construed and interpreted to comply with Section 409A of the Code to the extent required to avoid the imposition of the additional tax under Section 409A of the Code. The Company reserves the right to amend
this Plan to the extent it reasonably determines is necessary in order to preserve the intended tax consequences of this Plan in light of Section 409A of the Code and any regulations or guidance under that section. In no event will the Company be
responsible if Awards under this Plan result in adverse tax consequences to a U.S. Taxpayer under Section 409A of the Code. Notwithstanding any provisions of the Plan to the contrary, in the case of any “specified employee” within the
meaning of Section 409A of the Code who is a U.S. Taxpayer, distributions of non-qualified deferred compensation under Section 409A of the Code made in connection with a “separation from service”
within the meaning set forth in Section 409A of the Code may not be made prior to the date which is six months after the date of separation from service (or, if earlier, the date of death of the U.S. Taxpayer). Any amounts subject to a delay in
payment pursuant to the preceding sentence shall be paid as soon practicable following such six- month anniversary of such separation from service. 

 

	12.9	 Requirement of Notification of Election Under Section 83(b) of the Code 

If a Participant or Director Participant, in connection with the acquisition of Common Shares under the Plan, is permitted under the terms of
the Award Agreement to make the election 

  
 28 

 
permitted under Section 83(b) of the Code (i.e., an election to include in gross income in the year of transfer the amounts specified in Section 83(b) of the Code notwithstanding the continuing
transfer restrictions) and the Participant or Director Participant makes such an election, the Participant or Director Participant shall notify the Company of such election within ten (10) days of filing notice of the election with the Internal
Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code. 
  

	12.10	 Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code

 If any Participant shall make any disposition of Common Shares issued pursuant to the exercise of an Incentive Stock
Option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions), such Participant shall notify the Company of such disposition within ten (10) days thereof. 

 

	12.11	 Indemnification 

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

 

	12.12	 Participation in the Plan 

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

 

	12.13	 Participant Information and Consent to Data Transfer 

Each Participant shall provide the Company with all information (including personal information) required by the Company in order to administer
the Plan. By participating in the Plan, the Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data by and among, as applicable, the Company, any
Affiliate and any third party administrator retained by the Company for the exclusive purpose of implementing, administering and managing the Plan and all entitlements under the Plan. The Participant understands that the Company and/or Affiliates
hold certain personal information, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or
directorships held in the Company, the Affiliates and details of any entitlements under the Plan, for the purpose of implementing, administering and managing the Plan (collectively, 

  
 29 

 
“Data”). The Participant understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these
recipients may be located in the Participant’s country or elsewhere, and that the recipient’s country may have different data privacy laws and protections from the Participant’s country. The Participant understands that he or she may
have the right, if residing in a particular jurisdiction to request a list with the names and addresses of any potential recipients of the Data by contacting the local human resources representative. The Participant authorizes the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the awards granted under the Plan. The Participant understands that Data will be held only as long as is
necessary to implement, administer and manage the Participant’s entitlements under the Plan and comply with applicable laws. The Participant understands that he or she may have the right, if residing in a particular jurisdiction, at any time,
to view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human
resources representative. The Participant understands, however, that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of the Participant’s
refusal to consent or withdrawal of consent, the Participant understands that he or she may contact the applicable local human resources representative. 

  
 30 

	12.14	 International Participants 

With respect to Participants or Director Participants who reside or work outside Canada and the United States, the Board may, in its sole
discretion, amend, or otherwise modify, without shareholder approval, the terms of the Plan or Awards with respect to such Participants or Director Participants in order to conform such terms with the provisions of local law, and the Committee may,
where appropriate, establish one or more sub-plans to reflect such amended or otherwise modified provisions. 
  

	12.15	 Clawback or Recoupment Policy 

All Awards shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or
required by law during the term of Participant’s employment or other service with the Company that is applicable to executive officers, employees, directors or other service providers of the Company, and in addition to any other remedies
available under such policy and applicable law, may require the cancellation of outstanding Awards and the recoupment of any gains realized with respect to Awards. 
  

	12.16	 Effective Date 

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

	12.17	 Governing Law 

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

  
 31Exhibit 10.1

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (this “Agreement”) made as of the 15th day of May, 2017, by and among Peter B. Johnston, (hereinafter referred to as the “Interim CEO”), and Tronox LLC, a Delaware limited liability company, having its principal place of business at 263 Tresser Boulevard, Suite 1100, Stamford, CT 06901 (hereinafter referred to as the “Company”).

1.             Employment; Immigration.

(a)           Employment.  The Company hereby employs the Interim CEO and the Interim CEO agrees to work for the Company during the Term (as defined below) of and upon the terms and conditions set forth in this Agreement.

(b)           Immigration Law Compliance.  The Interim CEO shall have or obtain legal authorization to work in the United States.  An I-9 Employment Eligibility Verification Form (the “I-9 Form”) verifying identity and authorization to work must be completed and signed within three (3) business days of the Effective Date (as defined below).  It is the Interim CEO’s responsibility to keep the Company informed of all relevant changes to the Interim CEO’s visa status.

2.             Term.  The term of this Agreement (the “Term”) shall be for a period beginning on May 15, 2017 (the “Effective Date”) and continuing until the earlier of (i) the one-year anniversary of the Effective Date, or (ii) the appointment by the Board of Directors of the Company (the “Board”) of a successor Chief Executive Officer and the commencement of service by such successor in such capacity, unless earlier terminated in accordance with Section 7 of this Agreement.

3.             Position and Duties.  The Interim CEO shall serve as Chief Executive Officer of the Company.  In such capacity, the Interim CEO shall have the duties, responsibilities and authorities customarily associated with the position of Chief Executive Officer of the Company, in companies the size and nature of the Company.  The Interim CEO shall report directly to the Boards of Directors of the Company.  The Interim CEO agrees to serve, without additional compensation, as a member of the Board and/or as an officer of any Affiliate (as defined in Section 15(c) below) of the Company.  The Interim CEO shall devote his full business time, attention and energies to the business of the Company and its Affiliates and the performance of his duties hereunder.  The Interim CEO shall not, without the prior written consent of the Company, directly or indirectly, during the Term, render services, for compensation or otherwise, to or for any other person or firm; provided that nothing herein shall be interpreted to preclude Interim CEO from participating as an officer or director of, or advisor to, (i) any charitable or other tax exempt or civic organization on which the Interim CEO is serving as of the date of this Agreement and has previously notified the Board in writing, (ii) a reasonable number of other companies, subject to the advance approval of the Board, and (iii) civic, charitable, educational, religious, public interest or public service boards, but only  to the extent the activities set forth in clauses (i), (ii) and (iii), taken together, do not materially interfere with the performance of the Interim CEO’s duties and responsibilities hereunder and such activities do not adversely reflect on the reputation of the Company or conflict with the business goals of the Company, as determined in the sole discretion of the Board.  The Interim CEO may also manage his personal and family investments, to the extent such activities do not materially interfere with the performance of his duties and responsibilities hereunder.

 

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4.             Place of Performance.  The Interim CEO shall be based primarily at the Company’s principal executive offices, currently located in Stamford, Connecticut, or such other Company location as may be reasonably required by the Board.  The Interim CEO understands and agrees that he may be required to travel from time to time for business purposes.

5.             Board.  The parties hereby acknowledge that (i) for so long as the Interim CEO serves as Chief Executive Officer of the Company in accordance with this Agreement, he shall be not be deemed an independent member of the Board of the Company, and (ii) provided the Interim CEO has served as the Chief Executive Officer of the Company for a period of less than one (1) year, then, upon ceasing to serve in such role and provided he otherwise remains a member of the Board of the Company, the Interim CEO shall be deemed an independent member of the Board of the Company.

6.             Compensation/Benefits.

(a)           Base Salary.  During the Term of this Agreement, the Company agrees to pay Interim CEO a base salary at the rate of US $1,000,000/year, less applicable deductions and withholdings (“Base Salary”).  This Base Salary may be increased based on the reasonable business judgment and in the sole discretion of the compensation committee of the Board (the “Compensation Committee”).  Such Base Salary shall be payable in accordance with the Company’s normal business practices or in such other amounts and at such other times as the parties may mutually agree.

(b)           Bonus.  Upon the completion of the Term of this Agreement, Interim CEO shall be eligible to receive a bonus (“Bonus”) in a target amount equal to the amount of Base Salary paid to him during the Term (e.g., if the Term is three months and Interim CEO receives total Base Salary payments of US $250,000, then his target bonus shall be US $250,000; if the Term is six months and Interim CEO receives total Base Salary payments of US $500,000, then his target bonus shall be US $500,000, etc.).  The Compensation Committee shall have the sole discretion to determine the actual amount of the Bonus and such Bonus may be paid at, above or below target; provided, however, that such Bonus shall not exceed US $1,000,000.

 

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(c)           Benefits/Vacation.  During the Term of this Agreement, the Company shall provide Interim CEO with such other benefits, including medical, dental, life insurance, retirement and other plans as are made generally available to senior executive employees of the Company from time to time, subject to the Interim CEO’s satisfaction of the applicable eligibility requirements.  The Interim CEO’s participation will be subject to the terms of the applicable plan documents and generally applicable Company policies.  The Interim CEO shall be entitled to paid vacation in accordance with the applicable policies of the Company, which shall be accrued and used in accordance with such policies.  Nothing in this Agreement shall be construed to require the Company to establish any benefit plans or to prevent the modification or termination of any benefit plans once established.

(d)           Expenses; Housing and Transportation Allowance.  During the Term of this Agreement, the Company shall reimburse Interim CEO for the reasonable business expenses incurred by Interim CEO in the course of performing his duties for the Company hereunder in accordance with the procedures then in place for such reimbursement.  In addition, the Company shall pay the Interim CEO a mutually agreed allowance to cover his reasonable housing and automobile expenses while living in Stamford, Connecticut in accordance with the policies and procedures then in place.

(e)           Travel to Australia.  The Company shall provide the Interim CEO with reimbursement for personal travel so that he can visit his family in Australia or have his family visit him in the United States.  Such reimbursement shall not exceed US $25,000 per calendar quarter.

7.             Early Termination.

(a)           Events of Termination.  The Interim CEO’s employment hereunder shall be terminated and, other than the obligations listed in Section 7(c), the Company’s obligations hereunder shall cease, including the obligation to pay compensation for any period after the date of termination.

(i)            Death:  without the necessity of notice, upon the death of the Interim CEO;

(ii)           By the Company:

		(A)	
upon the Disability of the Interim CEO, or

		(B)	
without Cause, or

		(C)	
with Cause.  In order to invoke a termination for Cause, (1) the Company must provide written notice to the Interim CEO stating the basis for the termination for “Cause,” and (2) as to clauses (A), (B) or (E) of Section 7(b)(ii), the Interim CEO has failed to cure the conduct that is the basis of the determination of Cause, to the extent curable, within fifteen (15) days of the giving of such notice.

 

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(iii)          By the Interim CEO:

		(A)	
upon thirty (30) days advance written notice, subject to Section 7(i), or

		(B)	
for Good Reason.  In order to invoke a termination for Good Reason, (A) the Interim CEO must provide written notice to the Company within thirty (30) days of the occurrence of any event of “Good Reason,” (B) the Company must fail to cure such event within thirty (30) days of the giving of such notice and (C) the Interim CEO must terminate employment within thirty (30) days following the expiration of the Company’s cure period.

(b)           Definitions.  As used herein, the following terms shall have the meanings set forth below:

(i)            the term “Disability” shall mean the inability of the Interim CEO efficiently to perform the essential functions of his job, even with reasonable accommodation, as a result of a disability or illness, as such terms are defined by the Americans with Disabilities Act, which inability is expected to exceed one hundred eighty (180) days (including weekends and holidays) in any three hundred sixty-five (365)-day period. “Disability” shall be determined by agreement of the Interim CEO’s treating physician and a physician appointed by the Company or, if such physicians cannot agree on Disability, they shall together appoint a third independent physician whose determination of Disability shall be final.  The Interim CEO shall make himself available for examination by the physician or physicians making the determination of Disability as the Company may reasonably request.

(ii)           The term “Cause” shall mean a finding by the Board that the Interim CEO has (A) acted with negligence or engaged in misconduct in connection with the performance of his duties hereunder, (B) engaged in an act of insubordination, (C) engaged in common law fraud against the Company or its employees, (D) been convicted of, or pleaded nolo contendere to, a crime (other than minor traffic violations), (E) acted against the best interests of the Company in a manner that has or could have a material adverse affect on the financial condition of the Company, as determined by the Board in its sole discretion, or (F) materially breached this Agreement.

(iii)          The term “Good Reason” shall mean (A) any material diminution in the Interim CEO’s title, duties or authority; (B) a reduction in the Interim CEO’s Base Salary; (C) the assignment of duties substantially inconsistent with the Interim CEO’s status as an executive officer of the Company; (D) any other material breach of this Agreement; or (E) the failure of the Company to obtain the assumption in writing of its obligations under this Agreement by any successor to all or substantially all of the assets of the Company after a merger, consolidation, sale or similar transaction in which such Agreement is not assumed by operation of law.

 

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(c)           Payments Upon Termination.

(i)            Upon the death or Disability of the Interim CEO, the Interim CEO or his estate or legal representative shall be entitled to all compensation and benefits earned but not yet paid to and including the date of termination, including (i) Base Salary, (ii) accrued and unused vacation and sick days, (iii) any amounts or benefits owing to the Interim CEO or to the Interim CEO’s beneficiaries under then applicable benefit plans of the Company (excluding any severance plan, program, agreement or arrangement) and (iv) reimbursement of expenses properly incurred by the Interim CEO prior to the date of termination (together, the “Accrued Benefits”).  In the event of the Interim CEO’s Disability, any amounts payable as compensation during the period of disability or illness shall be reduced by any amounts paid during such period under any disability plan or similar insurance of the Company.

(ii)           Upon termination of this Agreement by the Company for any reason other than death, disability or Cause, and upon termination of this Agreement by the Interim CEO for Good Reason, Interim CEO shall be entitled to (i) all Accrued Benefits,  and (ii) continuation of his Base Salary for the remainder of the Term (the “Salary Continuation”).  For the avoidance of doubt, termination of this Agreement by reason of the appointment by the Board of a successor Chief Executive Officer and the commencement of service by such successor in such capacity shall not be deemed early termination, and the Interim CEO shall only be entitled to payment of the Accrued Benefits in such event.

(iii)          Upon termination of this Agreement by the Company for Cause, upon termination of this Agreement by the Interim CEO without Good Reason, and upon the expiration of the Term of this Agreement, the Interim CEO shall be entitled to the Accrued Benefits and no other payments.

(d)           Timing of Payments.  The Interim CEO shall be paid the Base Salary through date of termination and accrued and unused vacation and sick days included in the Accrued Benefits promptly after the date of termination.  Except as set forth herein, following payment of the Accrued Benefits, and the Salary Continuation, if applicable, the Company shall have no further obligations to the Interim CEO or his estate or legal representative under this Agreement.

(e)           Release.  As a condition of receiving any and all amounts payable and benefits or additional rights provided pursuant to this Agreement, other than the Accrued Benefits, the Interim CEO must execute and deliver to the Company and not revoke a general release of claims in favor of the Company in substantially the form attached on Annex A hereto.  Such release must be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following the Interim CEO’s date of termination.  The Company shall deliver to the Interim CEO the appropriate form of release of claims for the Interim CEO to execute within ten (10) business days following the date of termination.

 

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(f)            Certain Payment Delays.  Notwithstanding anything to the contrary set forth herein, to the extent that the payment of any amount described in Section 7(c) constitutes “nonqualified deferred compensation” for purposes of Code Section 409A (as defined in Section 22(a) hereof), any such payment scheduled to occur during the first sixty (60) days following the termination of employment shalt not be paid until the first regularly scheduled pay period following the sixtieth (60th) day following such termination and shall include payment of any amount that was otherwise scheduled to be paid prior thereto.

(g)           No Offset.  The Interim CEO shall be under no obligation to seek other employment and there shall be no offset against amounts due to him on account of any remuneration or benefits provided by any subsequent employment he may obtain.

(h)           Resignations.  If the Interim CEO’s employment is terminated by the Company for Cause, or upon termination of this Agreement by the Interim CEO without Good Reason, the Interim CEO will resign as a director and officer of the Company and each of the Company’s Affiliates, as applicable, and from any other entity in which he is serving as a director or officer at the request of the Company.  Such resignations shall be effective no later than the date of termination of the Interim CEO’s employment with the Company.

8.             Employer’s Authority.  Interim CEO agrees to observe and comply with the rules and regulations of the Company as adopted by the Company’s Board of Directors respecting the performance of his duties and to carry out and perform orders, directions and policies communicated to him from time to time.

9.             Confidentiality, Non-Disclosure and Non-Competition.  The Company and the Interim CEO acknowledge and agree that during the Interim CEO’s employment with the Company, the Interim CEO will occupy a position of trust and confidence with respect to the affairs and business of the Company and the Company Affiliates and have access to and may assist in developing non-public information concerning trade secrets, know-how, software, developments, inventions, processes, technology, designs, financial data, strategic business plans or proprietary or confidential information, documents or materials in any form or media, including any of the foregoing relating to research, operations, finances, current and proposed products and services, vendors, customers, advertising and marketing and other non-public proprietary and confirmation information (collectively, “Confidential Information”).  The Interim CEO agrees that the following obligations are necessary to preserve the confidential and proprietary nature of Confidential Information and to protect the Company and the Company Affiliates against harmful solicitation of employees and customers, harmful competition and other actions by the Interim CEO that would result in serious adverse consequences for the Company and the Company Affiliates:

 

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(a)           Non-Disclosure. During and after the Interim CEO’s employment with the Company, the Interim CEO will not knowingly use, disclose, copy or transfer any Confidential Information other than as authorized in writing by the Company or within the scope of the Interim CEO’s duties with the Company as determined reasonably and in good faith by the Interim CEO. Anything herein to the contrary notwithstanding, the provisions of this Section shall not apply (i) when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with actual or apparent jurisdiction to order the Interim CEO to disclose or make accessible any information, provided that prior to any such disclosure the Interim CEO shall provide the Company with reasonable notice of the requirements to disclose and an opportunity to object to such disclosure and the Interim CEO shall cooperate with the Company at the Company’s sole expense in filing such objection; or (ii) as to information that becomes generally known to the public or within the relevant trade or industry other than due to the Interim CEO’s violation of this Section.

(b)           Materials. The Interim CEO will use Confidential Information only for normal and customary use in the Company’s business, as determined reasonably and in good faith by the Company. The Interim CEO will return to the Company all Confidential Information and copies thereof and all other property of the Company or any Company Affiliate at any time upon the request of the Company and in any event promptly after termination of Interim CEO’s employment. The Interim CEO agrees to identify and return to the Company any copies of any Confidential Information after the Interim CEO ceases to be employed by the Company. Anything to the contrary notwithstanding, nothing in this Section shall prevent the Interim CEO from retaining a home computer (provided all Confidential Information has been removed), papers and other materials of a personal nature, including diaries, calendars and Rolodexes, information relating to his compensation or relating to reimbursement of expenses, information that may be needed for tax purposes, and copies of plans, programs and agreements relating to his employment.

(c)           Non-Solicitation.  During the Term and for twelve (12) months thereafter, the Interim CEO shall not solicit, entice, persuade or induce any individual who is employed by the Company or the Company Affiliates (or who was so employed within six (6) months prior to the Interim CEO’s action) to terminate or refrain from continuing such employment or to become employed by or enter into contractual relations with any other individual or entity other than the Company or the Company Affiliates, and the Interim CEO shall not hire, directly or indirectly, for himself or any other person, as an employee, consultant or otherwise, any such person. Anything to the contrary notwithstanding, the Company agrees that (i) the Interim CEO’s responding to an unsolicited request from any former employee of the Company for advice on employment matters; and (ii) the Interim CEO’s responding to an unsolicited request for an employment reference regarding any former employee of the Company from such former employee, or from a third party, by providing a reference setting forth his personal views about such former employee, shall not be deemed a violation of this Section; in each case, to the extent the Interim CEO does not encourage the former employee to become employed by a company or business that employs the Interim CEO or with which the Interim CEO is otherwise associated (including, but not limited to, association as a sole proprietor, owner, employer, partner, principal, investor, joint venturer, shareholder, associate, employee, member, consultant, contractor, director or otherwise).

 

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(d)           Non-Competition.

(i)            During the Term and for twelve (12) months thereafter, the Interim CEO shall not, directly or indirectly, (A) solicit, service, or assist any individual, person, firm or entity other than the Company or the Company Affiliates in soliciting or servicing any person, business or entity for the purpose of providing and/or selling any products that are provided and/or sold by the Company or its subsidiaries, or performing any services that are performed by the Company or its subsidiaries, (B) interfere with or damage (or attempt to interfere with or damage) any relationship and/or agreement between the Company or the Company Affiliates and any customer or client thereof or (C) associate (including, but not limited to, association as a sole proprietor, owner, employer, partner, principal, investor, joint venturer, shareholder, associate, employee, member, consultant, contractor, director or otherwise) with any person, business or entity that engages in or owns or controls a significant interest in any person, business or entity that engages in competition with the Company or the Company Affiliates; provided, however, that Interim CEO may own, as a passive investor, securities of any such entity that has outstanding publicly traded securities so long as his direct holdings in any such entity shall not in the aggregate constitute more than one percent (1%) of the voting power of such entity. The Interim CEO acknowledges that this covenant has a unique, very substantial and immeasurable value to the Company, that the Interim CEO has sufficient assets and skills to provide a livelihood for the Interim CEO while such covenant remains in force and that, as a result of the foregoing, in the event that the Interim CEO breaches such covenant, monetary damages would be an insufficient remedy for the Company and equitable enforcement of the covenant would be proper.

(ii)           If the restrictions contained herein shall be determined by any court of competent jurisdiction to be unenforceable by reason of their extending for too great a period of time or over too great a geographical area or by reason of their being too extensive in any other respect, then such provisions shall be modified to be effective for the maximum period of time for which it may be enforceable and over the maximum geographical area as to which it may be enforceable and to the maximum extent in all other respects as to which it may be enforceable.

(e)           Conflicting Obligations and Rights.  The Interim CEO agrees to inform the Company of any apparent conflicts between the Interim CEO’s work for the Company and any obligations the Interim CEO may have to preserve the confidentiality of another’s proprietary information or related materials before using the same on the Company’s behalf. The Company shall receive such disclosures in confidence and consistent with the objectives of avoiding any conflict of obligations and rights or the appearance of any conflict of interest.

 

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(f)            Enforcement.  The Interim CEO acknowledges that in the event of any breach of this Section, the business interests of the Company and the Company Affiliates will be irreparably injured, the full extent of the damages to the Company and the Company Affiliates will be impossible to ascertain, monetary damages will not be an adequate remedy for the Company and the Company Affiliates, and the Company will be entitled to enforce this Agreement by a temporary, preliminary and/or permanent injunction or other equitable relief, without the necessity of posting bond or security, which the Interim CEO expressly waives. The Interim CEO understands that the Company may waive some of the requirements expressed in this Agreement, but that such a waiver to be effective must be made in writing and should not in any way be deemed a waiver of the Company’s right to enforce any other requirements or provisions of this Agreement. The Interim CEO agrees that each of the Interim CEO’s obligations specified in this Agreement is a separate and independent covenant and that the unenforceability of any of them shall not preclude the enforcement of any other covenants in this Agreement.

10.           Mutual Non-Disparagement.  During the Term and for the two (2) year period following the date of termination, the Interim CEO agrees not to make public statements or communications that disparage the Company or any of the Company Affiliates, their businesses, services, products or their affiliates or their current, former or future directors or executive officers (in their capacity as such), or with respect to any current or former director or executive officer or shareholder of the Company or any of the Company Affiliates (in their capacity as such). During the Term and for the two (2) year period following the date of termination, the Company, for itself and each of the Company Affiliates, and the Parent, for itself and each of the Parent’s subsidiaries and affiliates, agree to instruct its directors to not make public statements or communications that disparage the Interim CEO. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings).

11.           Execution, Delivery and Performance.  The execution, delivery and performance by the Interim CEO of this Agreement or any other agreement, instrument or document contemplated herein or hereby will not result in a breach of or conflict with any terms of any other agreement, instrument or document to which the Interim CEO is a party or by which the Interim CEO or his property is bound.  No consent or approval of any person or entity, other than those that have been obtained by the Interim CEO, is required for the Interim CEO to execute, deliver and perform its obligations under this Agreement or any agreement, instrument or document contemplated herein or hereby.

 

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12.           Indemnification.  During the Term and thereafter, the Company agrees to indemnify and hold the Interim CEO and the Interim CEO’s heirs and representatives harmless, to the maximum extent permitted by law, against any and all damages, costs, liabilities, losses and expenses (including reasonable attorneys’ fees) as a result of any claim or proceeding (whether civil, criminal, administrative or investigative), or any threatened claim or proceeding (whether civil, criminal, administrative or investigative), against the Interim CEO that arises out of or relates to the Interim CEO’s service as an officer, director or employee, as the case may be, of the Company, or the Interim CEO’s service in any such capacity or similar capacity with an Affiliate or other entity at the request of the Company, both prior to and after the Commencement Date, and to promptly advance to the Interim CEO or the Interim CEO’s heirs or representatives such expenses upon written request with appropriate documentation of such expense upon receipt of an undertaking by the Interim CEO or on the Interim CEO’s behalf to repay such amount if it shall ultimately be determined that the Interim CEO is not entitled to be indemnified by the Company.  During the Term and thereafter, the Company also shall provide the Interim CEO with coverage under its current directors’ and officers’ liability policy to the same extent that it provides such coverage to its other executive officers.  If the Interim CEO has any knowledge of any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or investigative, as to which the Interim CEO may request indemnity under this provision, the Interim CEO will give the Company prompt written notice thereof; provided that the failure to give such notice shall not affect the Interim CEO’s right to indemnification.  The Company shall be entitled to assume the defense of any such proceeding and the Interim CEO will use reasonable efforts to cooperate with such defense.  To the extent that the Interim CEO in good faith determines that there is an actual or potential conflict of interest between the Company and the Interim CEO in connection with the defense of a proceeding, the Interim CEO shall so notify the Company and shall be entitled to separate representation at the Company’s expense by counsel selected by the Interim CEO (provided that the Company may reasonably object to the selection of counsel within ten (10) business days after notification thereof) which counsel shall cooperate, and coordinate the defense, with the Company’s counsel and minimize the expense of such separate representation to the extent consistent with the Interim CEO’s separate defense.  This Section shall continue in effect after the termination of the Interim CEO’s employment or the termination of this Agreement.

13.           Notices.  Any notice permitted or required hereunder shall be deemed sufficient when hand-delivered or mailed by certified mail, postage prepaid, return receipt requested or delivered by nationally recognized overnight courier service and addressed if to the Company at the address indicated above and if to the Interim CEO at the address indicated below (or to such other address as may be provided by written notice received at least five (5) business days prior to the hand delivery or mailing of any such notice).

14.           Survival.  The provisions of Sections 7, 8, 9, 10, 11, 12, 15, 16, 17, 18, 19, 20, 21 and 22 hereof and this Section 14 shall survive the termination of employment of the Interim CEO.  In addition, all obligations of the Company to make payments hereunder shall survive any termination of this Agreement on the terms and conditions set forth herein.

 

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15.           Miscellaneous.  (a)  This Agreement, together with the other agreements referenced herein, (i) constitutes the entire agreement between the parties concerning the subjects hereof, there being no representations, warranties or commitments except as set forth herein, and supersedes and replaces all other agreements related to the subject matter hereof, (ii) shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns, (iii) may be executed in one or more counterparts, each of which shall be an original and all of which shall be deemed to constitute one and the same instrument (iv) may not be assigned by Interim CEO without the prior written consent of the Company, and (v) may be assigned by the Company to any Affiliate of the Company or to the successors or assigns of the Company, provided such successors or assigns carry on substantially the Company’s business as conducted at the time of assignment and shall be binding upon, and inure to the benefit of, any such Affiliate, successor or assign.

(b)           Headings herein are for convenience of reference only and shall not define, limit or interpret the contents hereof.

(c)           As used herein, the term “Affiliate” shall mean any individual or entity controlling, controlled by or under common control with the Company, or any officer or director of the Company, now or in the future, including without limitation, partnerships, limited liability companies or joint ventures in which the Company or any Affiliate acquires a controlling interest.

16.           Amendment; Waiver.  This Agreement may be amended, modified or supplemented by the mutual consent of the parties in writing, but no oral amendment, modification or supplement shall be effective.  No waiver of any provision of this Agreement or any breach hereunder shall be deemed a waiver of any other provision or subsequent breach, nor shall any such waiver constitute a continuing waiver.  Delay or failure of any party to insist on strict performance or observance of any provision of this Agreement or to exercise any rights or remedies hereunder shall not be deemed a waiver.  Any waiver shall be effective only if in writing and signed by the waiving party. .

17.           Severability.  The provisions of this Agreement are severable.  The invalidity of any provision shall not affect the validity of any other provision.

18.           Governing Law.  This Agreement shall be construed and regulated in all respects under the internal laws of the State of Connecticut, without reference to conflicts of laws rules.

19.           Rights Cumulative.  The rights and remedies set forth in this Agreement are in addition to, and cumulative with, any rights or remedies of the parties at law or in equity.

 

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20.           Arbitration.  In the event of any dispute between the parties, including but not limited to any claims arising from or related to this Agreement or the termination of this Agreement, any claims related to the Interim CEO’s employment or the termination of the Interim CEO’s employment, or any claims arising under the state and federal laws governing employment (including without limitation discrimination claims), such dispute will be determined, upon the written re-quest of either party, by binding arbitration under the auspices of and pursuant to the Employment Dispute Resolution Rules of the American Arbitration Association.  Such arbitration shall be conducted in Stamford, Connecticut before a single arbitrator.  The arbitrator will have no power to add to, subtract from, or modify any of the terms of this Agreement except that a provision otherwise invalid, illegal or unenforceable shall be modified or subtracted from to the least extent necessary to make it valid, legal and en-forceable.  The decision of the arbitrator shall be final and may be en-forced by any court of competent jurisdiction, and both parties hereto consent to the personal jurisdiction of the state and federal courts of Connecticut for such purposes.  Notwithstanding the foregoing, the Company shall be entitled to seek injunctive relief against the Interim CEO in the state and federal courts of Connecticut for any breach or threatened breach of any provisions of this Agreement.  In addition, in the event that the Company prevails in any such action for injunctive relief, the Interim CEO shall be liable to the Company for all of its attorneys’ fees and legal costs incurred in such action, as well as all damages or other remedies available at law.

21.           Withholding.  The Company may withhold from any benefit payment under this Agreement all federal, state, city or other taxes or other amounts as shall be required pursuant to any law or governmental regulation or ruling.

22.           Section 409A.

(a)           The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  If the Interim CEO notifies the Company (with specificity as to the reason therefor) that the Interim CEO believes that any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause the Interim CEO to incur any additional tax or interest under Code Section 409A and the Company concurs with such belief or the Company (without any obligation whatsoever to do so) independently makes such determination, the Company shall, after consulting with the Interim CEO, reform such provision to attempt to comply with Code Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Code Section 409A.  To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall he made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Interim CEO and the Company of the applicable provision without violating the provisions of Code Section 409A.

 

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(b)           A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If the Interim CEO is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall be made or provided at the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service” of the Interim CEO, and (B) the date of the Interim CEO’s death, to the extent required under Code Section 409A.  Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 22(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Interim CEO in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

(c)           To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Interim CEO, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

(d)           For purposes of Code Section 409A, the Interim CEO’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the solo discretion of the Company.

(e)           Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

 

[Balance of page intentionally left blank]

 

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IN WITNESS WHEREOF, this Agreement is entered into as of the date and year first above written.

	 	
TRONOX LLC

	 	 	 
	 	
By:

	
/s/ Richard L. Muglia

	 	
Name:

	
Richard L. Muglia

	 	
Title:

	
Senior Vice President and General

	 	 	
Counsel

	 	 	 
	 	
INTERIM CEO

	 	 	 
	 	
/s/ Peter B. Johnston

	 	
Peter B. Johnston

	 	
Address:

 

[Signature Page to Interim CEO Employment Agreement]

 

Annex A

GENERAL RELEASE

I, Peter B. Johnston, in consideration of and subject to the performance by Tronox LLC (together with its parent companies, including without limitation Tronox Limited, and subsidiaries, the “Company”), of its obligations under Section 7 of the Interim CEO Employment Agreement, dated as of [●] (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its respective affiliates and subsidiaries and all present, former and future directors, officers, agents, representatives, employees, successors and assigns of the Company and/or its respective affiliates and subsidiaries and direct or indirect owners (collectively, the “Released Parties”) to the extent provided herein (this “General Release”).  The Released Parties are intended third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder.  Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1.             I understand that, other than the Accrued Benefits, the payments or benefits paid or granted to me under Section 7 of the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled.  I understand and agree that I will not receive the payments and benefits specified in Section 7 of the Agreement, other than the Accrued Benefits, unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter or breach this General Release.  Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates.

 

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2.             Except as provided in Section 4 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ lees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company and/or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, ever had, now have, or hereafter may have, by reason of any matter, cause, or thing whatsoever, from the beginning of my initial dealings with the Company to the date of this General Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to my employment relationship with Company, the terms and conditions of that employment relationship, and the termination of that employment relationship (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993: the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts, including but not limited to the Connecticut Fair Employment Practices Act (“CFEPA”), the Connecticut Family and Medical Leave Act (“CFMLA”), the Connecticut wage and hour statutes; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for unpaid wages, unpaid bonuses, unpaid vacation time, unpaid overtime (other than the “Accrued Benefits” as that term in the Agreement) or  costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).  I understand and intend that this General Release constitutes a general release of all claims and that no reference herein to a specific form of claim, statute or type of relief is intended to limit the scope of this General Release.

3.             I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by Section 2 above.

4.             I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release.  I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

 

5.             I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief.  Notwithstanding the foregoing, I acknowledge that I am not waiving and am not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding.

 

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6.             In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied.  I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied.  I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement.  I further agree that in the event that I should bring a Claim seeking damages against the Company, or in the event that I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law.  I further agree that I am not aware of any pending claim, or of any facts that could give rise to a claim, of the type described in Section 2 as of the execution of this General Release.

7.             I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8.             I agree that I will forfeit all amounts payable by the Company pursuant to the Agreement if I challenge the validity of this General Release.  I also agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys’ fees, and return all payments received by me pursuant to the Agreement on or after the termination of my employment.

9.             I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel that I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone.

10.           Any non-disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), or any other self-regulatory organization or governmental entity.

11.           I hereby acknowledge that of Sections 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21 and 22 of the Agreement shall survive my execution of this General Release.

12.           I represent that I am not aware of any Claim by me, and I acknowledge that I may hereafter discover Claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in Section 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

 

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13.           Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way ailed to any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

14.           Whenever possible, each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.  This General Release constitutes the complete and entire agreement and understanding among the parties, and supersedes any and all prior or contemporaneous agreements, commitments, understandings or arrangements, whether written or oral, between or among any of the parties, in each ease concerning the subject matter hereof.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT;

		(i)	
I HAVE READ IT CAREFULLY;

		(ii)	
I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF TIIE CIVIL RIGHTS ACT OF 1964, AS AMENDED, THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF’ 1990, AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

		(iii)	
I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

		(iv)	
I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE, SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

		(v)	
I HAVE HAD AT LEAST [21][45] DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED [21][45]-DAY PERIOD;

 

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		(vi)	
I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

		(vii)	
I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

		(viii)	
I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

IN WITNESS WHEREOF, the undersigned have duly executed and delivered this General Release; or have caused this General Release to be duly executed and delivered on their behalf.

	 	
TRONOX LLC

	 	 
	 	 	 	 
	 	
By:

		 	
	 	 	
Name:

	 	
Date

	 	 	
Title:

	 	 
	 	 	 	 	 
	 	
INTERIM CEO

	 	 
	 	 	 	 	 
	 		 	 
	 	
Peter B. Johnston

	 	
Date

 

 

-5-

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