Document:

ex1022rabbitrustagreemen

.. ,. .· ~ ' :.• .~ .,. 't ... .. • RABBITRUSTAGREEMENT State Street Corporation (the "Company''), U.S. Trust Company, National .· Association (the "Trustee") and Mercer Human Resource LLC (the "Consulting Firm'') have, as of the Effective Date set forth in Section 17 below entered, into this grantor trust agreement (this "Agreement"), there b)" amending and restating the trust· agreement dated as of December 6, 1996 (with Wachovia Bank of North Carolina, N.A. as trustee) and the trust thereunder established with respect to the Company's non qualified deferred compensation and/or severance or incentive plans and arrangements included in the list set forth in Exhibit A attached hereto (the "Plans"). · · · · · · · --. ·· · __ ,,' WHEREAS the Compa..ny and certain of its direct and indirect subsidiaries (together, the "Employer'') maintain the Plans for the benefit of employees and former employees ofthe·Employer and their beneficiaries (each such subsidiary, to· the extent of its employees ·participating in the Plans, being hereinafter referred to as a "Subsidiary''); and . . . . . . WHEREAS the Company has previously established a revocable grantor trust ... to assist it and its Subsidiaries in meeting their obligations under the Plans; and WHEREAS the Company desires to amend the trust agreement under which the aforesaid trust has been maintained and to replace the trustee thereunder with ( the Trustee first named above; and WHEREAS it is the intention of the parties that the Trust as continued hereunder shall continue to constitute an unfunded arrangement for purposes of Title I of the Employee Retirement Income Security Act of.1974_("ERISA"); NOW, THEREFORE, the parties do hereby continue the Trust and agree that the Trust shall be comprised, held and disposed of as follows: . . Section 1. Continuation of Trust (a) The existing. assets of the Trust, as the same may be augmented from time ~o time~ shall constitute the assets of the Trust to be held, administered and disposed of by the Trustee as provided in this Agreement. (b) The Trust hereby continued shall be revocable by the Company until the occurrence of a Change in Control (as defined in Section 13). Upon the occurrence of a Change in Control, the Trust shall be irrevocable e_xcept as provided herein. (c) The Trust is intended to be a grantor trust within. the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of· 1986, as amended (the "Code"), and shall be -construed accordingly. Prior to 

 

... ' ' . -·~ ( (d) (e) (f) such time as the Trust becomes irrevocable, the Company shall be the grantor of the Trust. From and after such time as the Trust becomes irrevocable pursuant to subsection (b) above, it shall (unless the Company specifies otherwise) be deemed to consist of subtrusts, one for each employer's obligations under the Plans, which subtrusts together shall constitute the Trust (and all references herein to the Trust shall be deemed . . to include a reference to such subtrusts or to the relevant subtrust, as the context requires), and the Company and its Subsidiaries shall be deemed the grantors of the Trust, each in respect of its obligations under the Plans; · provided, that at all times and notwithstanding any other provision of this Agreement, the Company shall be treated as a grantor with respect to so much ofthe assets ofthe Trust as consistofstock.ofthe Company. The immediately preceding proviso shall be construed in a manner c~nsistent with preserving the benefits described in IRS Notice 2000-56 (as the same may be modified, but only so long as such requirements, as originally set forth or as so modified, are in effect). The Company and its Subsidiaries, e~ch to the extent treated as a grantor of the Trust. maintained hereunder; are hereinafter referred to as. the "Grantors." The principal of the Trust, and any earnings thereon (the ''Trust Fund'') shall be held separate and apart from the Grantors' other funds and shall be used exclusively for the uses. and purposes of Plan participants and the Grantors' general creditors as herein set forth. Plan participants and tbeir · beneficiaries shall have no preferred claim on, and no beneficial ownership interest in, any ~ssets of the Trust. Any rights created under the Plans and . this Agreement shall be mere uns~cured contractual rights of Plan participants and their beneficiaries against the Company and its Subsidiaries in accordance with the Plans. Any assets heltfby the Trust will · .. be subject to the claims of the Grantors' general creditors under federal and . . state law in the event the relevant Grantor is Insolvent, as defined iri Section 3(a) .herein. The Company, in its sole discretion, may at any time and from time to time make or cause to be made additional deposits of cash or other property bi trust with the Trustee to augment the principal to be held, administered and disposed of by the Trustee as provided in this Agreement. Neither the · Trustee nor any Plan participant or beneficiary shall have any right or duty . to compel such additional deposits or determine the sufficiency thereof. The Company shall take reasonable steps to ensure that each Plan and this Trust shall have characteristics supporting a determination that they form an arrangement constituting an unfunded plan maintained for the purpose of providing deferred compensation to a select group of management or highly compensated employees for purposes ofTitle I ofERISA.:. Section 2. Payments to Plan Participants and Their Beneficiaries 2 

 

.. . ~ -·· .... "-- ( ( (a) Prior to a Change in Control the Company shall deliver to the Trustee a schedule (the "Payment Schedule").that indicates the amounts payable in respect of each Plan participant (and his or her beneficiaries) and that provides a formula or other instructions reasonably acceptable to the Trustee for determining the amounts so payable, the form in which such amounts are to be paid (as provided for or available under the Plan), and the time of commencement for the payment of such amounts. The Consulting· Firm or, prior to a Change in Control, the Company, shall make such . amendments to the Payment Schedule as may be necessary from time to time to ensure that it is complete and accurate; provided, that prior to a Change in Control such amendments shall be made only at such time or times as· the Company in its discreti~n deems necessary or appropriate and following a Change i.n Control such amendments shall not be required~ be made more frequently than quarterly; and further provided, that the Consulting Finn shall make such an amendment to update the Payment Schedule not more than thirty (30) days after receiving notice pursuant hereto that a Change in· Control has occurred; and further provided, that the Consulti~g Firuis . obligation to make any such amendment shall be subject to its having received the information it reasonably determines to be necessary to make such amendment. The Company shall provide the Consulting Firm with all information necessary to keep the Payment Schedule up to date on at least a quarterly basis, and in any event within five bush1ess days.after the occurrence of a Change in Control. Upon application bY. a Plan participant or beneficiary for a benefit under the Plans, the Consulting Firm shall update the Payment Schedule with respect to the individual participant or· beneficiary and notify the Trustee of the updated amount. Except as otherwise provided herein, the Trustee shall make payments to the Plan · participants and their beneficiaries in accordance with such Payment Schedule. The .Trustee or its agent shall not be required to make any determination for which the Company or the Consulting Firm ha~· not provided payment information reasonably requested by the Trustee. (b) The Trustee shall make provision for the reporting and withholding of any · federal taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and shall pay amounts · withheld to the appropriate taxing a~thorities or determin~ that such amounts have been reported, withheld and paid by the Company. The Trustee shall make provision for the reporting and withholding of any state or local taxes that may be required with respect to the payment of benefits in accordance with such instructions as it shall receive from the Consulting Firm. (c) The Company shall from time to time pay taxes of any and all kinds whatsoever that at any time are lawfully levied or assessed upon or become payable in respect oft~e Trust Fund, the income or any property forming a 3 

 

( ( . (d) part thereof or any security transaction _pertaining thereto. To the extent that any taxes lawfully levied or ass·essed upon the Trust Fund are not paid _by the Company, the Trustee shall have the power to pay such taxes out of the Trust Fund and shall seek reimbursement from the Company. Prior to making any payme)lt, the Trustee may require such releases or other documents from any lawful taxing authority as it shall deem necessary~ The Trustee shall contest the validity of taxes in any manner deemed appropriate by the Company or its counsel, but at the Company's expense, and only if it has received an indemnity bond or other security satisfactory to it to pay any such expenses. ·The Trustee shall not be liable for any non-payment· of tax when it distributes an interest hereunder on directio:ris from the Company or the Consulting Firm.. The- Company or its Subsidiaries may make payment of benefits directly to Plan participants .or their beneficiaries as they become· due under the terms . of the Plan, subject to reimbursement in accordance .with Section 4. The. Company shall notify the Trustee of· its decision to have ·benefits paid· directly, prior to the time amount~ are payable to participants or their · beneficiaries. If the Company fails so to notify the Trustee,· or if~ at any time following a Change in Control, the Trustee receives notice ~om a Plan participant or beneficiary tliat the Company and its Subsidiaries b,ave failed . to make a payment when due, the Trustee shall promptly make payment (and any subsequent payments, if the missed payment was one of a series) in accordance with the Payment Schedule •. . . In addition, if the principal of the Trust, and any earnings thereon, are not sufficient to make payments of benefits in accordance with the terms. of the Plan, the Company and its Subsidiaries shallmake the balance of each. such payment as it falls due. The Trustee shall notify the Company where principal and earnings are not sufficient. . . . . (e) ·.Notwithstanding anything·contained in this Agreement to the contrary,. if at · any time the Trust is finally determined by the Internal Revenue Service (the "IRS") not to be a "grantor trust" with the result that the income of the Trus~ Fund is not treated. as income of the Company or its Subsidiaries pursuant to Sections 671. through 679 of the Code, or if a tax is finally determined by the IRS to be payable by one or more-participants or beneficiaries with respect· to any interest in the Plan or the Trust Fund prior to payment of such interest to such participant or beneficiary and by reason of the Trust, then the Trust shall immediately terminate. The Trustee shall ilnm.ediately . distribute such interest in a lump sum to each participant or beneficiary entitled thereto regardless of whether such participant's· employment ·has terminated and regardless.ofform and time of payments specified in or pursuant to the Plan as directed·by the Company. Any remainb:ig assets (less any expenses or costs due under Section 9 of this Agreement) shall then be \ . . . 4 

 

' - ( paid by the Trustee to the Company in such amounts, and in the manner instructed by the Company. Section 3~ Trustee Responsibility Regarding Payments to Trust Beneficiary Whim Grantor is Insolvent (a) The Trustee shall cease payment of b~nefits to Plan participants and their beneficiaries if a Grantor is "'nsolvent". A Grantor shall be considered ''lnsolv~nt" for purposes of this Agreement if (i) it is unable to pay its de.bts as they become due, or· (ii) it is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. (b) .At all times during the continuance ofthis Trust, as provided in Section l(d) hereof, the principal and income of the Trust shall be subject to claims of general creditors of the Grantors under federal and state law as set forth below. · (1) Each Gran to.- shall have the duty to inform the Trustee in writing of its Insolvency. If a person claiming to be a creditor of a Grantor· notifies the Trustee that the Grantor has become Insolvent, the Trus~e shall provide the Grantor with a copy of such writing and absent the Grantor's provision of an independent expert's opinion satisfactory to the Trustee that the Grantor is not Insolvent, the Trustee shall discontinue payment of benefits to Plan participants" or their beneficiaries as described at (3) below. (2) Unless the Trustee has actual knowledge of a Grantor's Insolvency, or has received notice from the Grantor or a person claiming to be a creditor alleging that the Grantor is Insolvent, the Trustee shall have no duty to inquire whether the Grantor is Insolvent~ (3) If at any time the Trustee has received a written notice containing information_ or allegations described ~n Section 3(b)(l) that a Grantor with respect to any subtrust (or to the Trust, if no subtrusts exist) is Insolvent, the Trustee shall discontinue payments to Plan participants ·or their beneficiaries from such subtrust or Trust, as the case may be, and shall hold the assets of the subtrust or Trust, as the case-may be, for the benefit of the Grantor's general creditors. Nothing in this Agreement shall in any way diminish any rights of Plan participants or their beneficiaries to pursue their rights as general creditors of a Grantor with respect to benefits due under the Plans or otherwise. (4) The Trustee shall resume. the payment of benefits to Plan participants or their beneficiaries in accordance with Section 2 of this Agreement . only after it has. been demonstrated to the Trustee's satisfaction that the Grantors are not Insolvent (or are no longer Insolvent). s 

 

-·, " ( ( (c) Provided that there are sufficient assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to Section 8(b) hereof and subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Plan participa~ts or their beneficiaries under the terms of the Plan for the. period of such discontinuance, less the aggregate amount of any payments made to Plan participants or their beneficiaries by the Company and its Subsidiaries in lieu of the payments provided for hereunder during any such period of discontinuance. Section 4. Payments to _the Company and its Subsidiaries. Except as provided in Section 3 hereof and this Section 4, following a Change in Control. the Company shall have no right or power to direct the Trustee.to retur~­ to the Company or its Subsidiaries or to divert to others any of the Trust assets before all payments of benefits have been made to Plan participants and theh ·benefichwies pursuant to the terms of the Plans. Notwithstanding the foregoing, (i) the Company may cause any or all of the assets of the Trust to be withdrawn· prior to a Change in Control; (ii) following a Change in Control, upon presentation to the Trustee of evidence satisfactory to the Trustee that.the Company or a S1,1bsidiary has paid a benefit directly pursuant to Section 2(d), and upon request by the Company, the Trustee shall reimburse the Company or the Subsidiary for the amount of such payment out of available assets of the Trust; (iii) the Company may at any time substitute or cause to be substituted Trust assets for assets of equivalent value, subject, however, to the Trustee's consent in the case of any such substitution attempted after a Change in Control; and (iv) at any time from anci after a Change in Control, the Company may withdraw or ~a use to be withdrawn assets of the Trust · within the limits. specified in SeCtion 14. Section 5. Investment Authority The Trustee shall have, without exclusion, all powers conferred on the Trustee by applicable law, unless expressly provided otherwise herein, and all rights associated with assets of t~e Tnist shall be exercised by the Trustee, and shall in no event be exercisable by or rest with participants; provided, that the Company shall .. have the right (but not the obligation) to direct the manner in which the Trustee shall invest the Trust Fund by delivering to the Trustee, from time to time prior to a . Change in Control, written investment guidelines, which the Trustee shall follow (to the extent consistent with its duties under applicable law) until stlch investment . guidelines are revoked or _modified by an instrument in writing delivered to the Trustee prior to a Change in Con trot Subject to the foregoing, the Trustee shan have full power and authority to invest and reinvest the Trust Fund hi any investment permitted by law, exercising the judgment and care that persons of· prudence, discretion and intelligence would exercise under the circumstances the~ . . . 6 

 

•, .. '•' , __ prevailing considering the probable income and. safety of their capital, including, ( · without limiting the generality of the foregoing, the power: · ( (a) · To invest and reinvest the Trust Fund, together with the income therefrom, in eolnmon stock, preferred stock, mutual funds, bonds, mortgages, notes, time certificates of deposit, commercial paper and other evidences of indebtedness (including those issued by the Trustee or any of its affiliates), other securities, policies oflife insurance, annuity contracts, options to buy or sell securities or other assets, and other property of any kind (personal, real or :Mixed, and tangible or intangible); (b) To deposit or invest all or any 11art of the assets of the Trust Fund in savings accounts or certificates of deposit or other deposits which bear a reasonable interest rate in a bank, including the commercial department of the Trustee, if such bank is supervised by the United States or any state; (e) To_hold, manage, improve and control all property, real or-personal, forming part of the Trust Fund and to. sell, convey'· transfer, exchange, partition, lease for any.terln, even extending beyond the duration of this Trull!t, and otherwise dispose of the same from time to time in such manner, for such consideration and upon such terms and conditions as the Trustee shall determine; (d) To have, respecting securities, all the rights, powers and privileges of an . owner, including the power to give proxies, pay assessment~;; and other sums deemed by the Trustee to be neee~;sary for the protection of' the Trust Fund, to vote any corporate stock either in person or by proxy, with or without power of substitution for any purpose; to participate in voting trusts, pooling agreements, foreclosures~ reorganizations, consolidations, mergers and liquidations and, in connection therewith, to deposit securities with 'and transfer title to any protective or other eonlmittee under such terms as the Trustee may deem advisable; to exercise or sell stock subsedptions. or conversion rights; and regardless of any limitation elsewhere in this document relative to investment by the Trustee, to accept and retain as an investment any seeuritie·s or other property received through the exercise of any of the foregoing powers; (e) To hold in cash, without liability for interest, such portion of the Trust Fund . which, in its diser~tionary determination, shall be reasonable under the circumstances, pending investments or payments of expenses, or the distribution of benefits; (f) To take such actions as may be necessary or desirable to protect the Trust Fund fromloss due to the default on mortgages held in the Trust, including the appointment of agents or trustees in such other jurisdictions as may . seem desirable, to transfer property to such agents or trustees, to grant such 7 

 

.. ( ( (g) (h) (i) .. (j) (k) powers as are necessary or desirable to protect the Trust or its assets, to direct such agents or trustees, or to delegate such power to direct and to remove such agents or trustees; To employ such agents, including investment advisors, custodians, sub custodians and counsel as may be reasonably necessary and to pay them reasonable compensation; to settle, compromise or abandon all claims and demands in favor of or against the Trust assets; To cause title to property of the Trust to be issued, held or registered in the. individual name of the Trustee or in the name of its nominee(s) or agents, or in such form that title will pass by delivery; · To exercise all ot the further rights, powers, options and privileges granted, provided for or vested in trustees generally under the laws of the State of California, so that powers conferred upon the Trustee herein shall not be in limitation of any authority conferred by law, but shall be in addition thereto; To borrow money from any source (including the.Trustee) and to execute promissory notes, mortgages, or other obligations and to pledge or mortgage any Trust assets as security; To lend certificates representing stocks, bonds, or other securities to any brokerage or other firm selected by the Trustee; (I) To institute, compromise and defend actions and proceedings; to pay or contest any claim; to settle a claim by or .against the Trustee by compromise, arbitration, or otherwise to release, in whole or in part, any claim belonging·; ·· to the Trust to the extent that the claim is uncollectible; (m) To use securities, depositories or custodians and to allow such securities as may be held by a depository or custodian to be registered in the name of such depository or its nominee or in the name of such custodian or its nominee; (n) To invest the Trust Fund from time to time in one or more investment funds, which funds shall be registered under the Investment Company Act ofi940 (including companies with respect to which the Trustee or an affiliate is the investment adviser or provides other services); (o) To invest in stock or other securities of the Company and to retain such · stock to the ·extent consistent with such investment guidelines as the Company may deliver to the Trustee; provided, that with respect to any such investment the requirements of IRS Notice 2000-56 (as the same inay be modified, but only so long as.such requirements, as originally set forth or as so modified, are in effect) shall be satisfied; and 8 

 

.. ... ( ( (p) To do all other acts necessary or desirable.for the proper administration of the Trust Fund, as if the Trustee were the absolute owner thereof. However, nothing in this section shall be construed to mean the Trustee assumes any respc:msibility for the performance of any investment made by the Trustee in its capacity as trustee under this Agreement. Notwithstanding any powers granted to the Trustee pursuant to this Agreement or applicable law,-the . Trustee shall not have any power that could give this Trust the objective of carrying on a business and dividing the gains ~herefrom within the meaning of Section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the Code. Section 6. Disposition ·of Income During the term of this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested, except as the same may be. disbursed in accordance with the terms ofthisAgreement~ Section 7. Accounting by the Trustee and the Consulting Firm, etc. (a) The Trustee shall keep accurate and detailed records of all inyestments, receipts, disbursements, and all other transactions required· to be :in,ade, including such specific J:"ecords as s·hall be agreed upon in writing between the Company and the Trustee. Within 120 days following the close of each calendar year and within ·120 days after the removal or resignation of the Trustee, the Trustee shall deliver to the Company a written a_ccount of its administration of the Trust during such year or during the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions (b) ·. effected by it, including a description of all securities and investinents purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately), and. showing all cash, securities and other property held in the Trust at the end of such year or as of the date of such removal or resignation, as the case may be. The Company shall fu.rnish the Consulting Firm and the Trustee with copies of the ·Plans and any and all amendments thereto. The Company shall · · promptly provide the Consulting Firm with any and all information that the Consulting Firm reasonably requests or that the Company believes would be useful to the Consulting Firm in carrying out its duties hereunder, and shall promptly update such information as and if it changes. The Company shall also use its reasonable best efforts to cause each Plan participant or . beneficiary to provide the Consulting Firm with all information that it may reasonably request in order to determine the amount of any payments· due to the participant or beneficiary under the Plan. Section 8. Responsibility of the Trustee and the Consulting Firm. 9 

 

-· --· ' ' . - :. ( ( (a) The Trustee shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a· like character and with like aims. · (b) It is intended by the parties hereto that the Co.nsulting Firm !!!hall not be a fiduciary :With respect to the Trust or any Plan. (c) · The Trustee and the Consulting Firm may consult with legal counsel ·(who may also, but need not, be counsel for the Company or its Subsidiaries) generally with respect to any of their duties or obligations hereunder, and the Trustee may hire agents, accountants, actuaries, investment advisors, financial consultants or other professionals to assist it in perforniing any of its duties or obligations hereunder. The Trustee and the Consulting Firm. shall incur no liability to any person for acting or refraining from acting in accordance with the advice of any such counsel, agent, accountant, actuary,· investment advisor, financial consultant or other professional reasonably . consulted or hired in accordance with the foregoing. (d) If an insurance policy is held as an asset of the Trust, the Trustee shall have no power to name a beneficiary of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy to a different form) other than. to a successor Trustee, or to loan to any person the proceeds Qf any · borrowing against such policy; provided, that nothing herein shall be . construed as limiting the Trustee's ability to assign any such policy (or loan any borrowing thereunder) to, or to name as beneficiary under such policy, the Company or a Subsidiary in accordance with a transaction contemplated by Section 3 or Section 4. The Trustee shall not be liable for the failtire or inability of an insurance company to pay the proceeds of any policy when due. (e) The Company shall indemnify and. hold each of the Trustee arid the Consulting Firm harmless from and against all loss or liability (including . expenses and reasonable attorneys' fees), to which it may· be subject by reason of its: (i) taking or refraining from taking any action under and in accordance with this Agreement, including, without limitation, the appointment of a successor Trustee by the Consulting Firm or the appointment of a successor Consulting Firm by the Trustee; (ii)· relying upon a certification of an authorized representative of the Company, or (in the case of the Trustee) the Consulting Firm, with respect to any inst~ction, · direction, written investment guidelines or approval of the Company, until a. subsequent certification is filed with it; (iii) actin:g upon any instrument,. certificate, or paper reasonably believed by it to be genuine and to be signed or presented by the proper person or persons (and neither the Trustee nor the Consulting Firm shall be under any duty to make any investigation or 10 

 

• < ( inquiry as to a:ny statement contained in any such writing -but may accept the same as conclusive evidence of the t~uth and accuracy of the statements therein contained); and (iv) in the case of the Trustee, making distributions in ac~ordance with the terms of this Agreement and information or directions furnished to the Trustee by Plan participants or beneficiaries, the Consulting Fb·m orthe Company; provided, however that the foregoing indemnity shall not apply to claims or liabilities resulting from or arising out of the 'Trustee's or the Consulting Firm's (as the case may he) negligence or willful misconduct. In the event the Trustee or the Consulting Firm undertakes (with the consent of the Company, in the case of any actions taken prior to a Change in Control) or is a defendant b1 any litigation arising in connection with this Agreement, the Company shall indemnify it against its actual and p~ospective costs, expenses and liability, including reasonable attorney's fees which fees and expenses shall be paid monthly in. arrears by the. Company to or on behalf of the Trustee following the Company's receipt . of notice of such legal expenses. Notwithstanding the foregoing, in the event that , liability, cost or expense incurred by the Trustee is determined to be attributable to the Trustee's negljgence or willful misconduct-in ~onnection with its execution of its duties under the Trust Agreement, the Trustee will promptly reimburse the Company for the legal fees and e~penses which have been previously paid on behalf of the Trustee by the Company. (f) · The Company has represented to the Trustee that each Plan qualifies as either (i) an excess benefit plan within the meaning of Section 4(b) of ERISA or (ii) a "top-hat" plan maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees, which is exempt from the provisions of Part 4 of Title I of ERISA (an "exempt plan''). The Trustee is entering into this Agreement in reliance upon the Company's representation. ·Accordingly, in the event that any Plan fails to qualify as an exempt plan, then notwithstanding any other provision of this Agreement to the contrary, the . Company will indemnify and.hold the Trustee harmless from all liabilities;. · damages, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses). that the Trustee incurs as a result of a breach of fiduciary duty u11der ERISA arising from any action taken, or omitted to be taken, by the Trustee in good faith in accordance with this Agr.eement and in reasonable reliance on the Company's representation as to the exempt plan status of the Plans, other than any such liability, damage, cost or expense that results from or arises out of the Trustee's negligence or willful niisconduct. (g) All releases·and indemnities provided in this Agreement shall surVive the termination of this Agreement. Section 9. Compensation and Expenses of Trustee and Consulting Firm 11 

 

--- .. ' : ( ( The Trustee and the Consulting Firm shall each be entitled to such reasonable compe:Q.sation for its services as shall be agreed upon between the Company and the Trustee or the Consulting Firm, as the case may. be. The Trustee and the Consulting Firm shall also be entitled to receive their reasonable expenses incurred in discharging their duties hereunder. Such compensation and expenses shall be paid by the Company or a Subsidiary, and if not so paid shall be paid by the. Trustee from the assets of the Trust. Section 10. Resignation and Removal of Trustee . (a) The Trustee may resign at any time by written notice to the Company, which shall be effective sixty (60) days after r~ceipt of such notice unless the Company and the Trustee agree otherwise. (b) The. Trustee may be removed by the Company on sixty (60) days written notice or upon shorter written notice accepted by the Trustee. (c) Upon resignation or removal of the Trustee and appointment of a successor· (d) Trustee, all assets shall subsequently be transferred to the successor Trustee • . T4e transfer shall be completed within 90 days after. receipt of notice of successor trustee's acceptance of appoin~ment. · If the Trustee resigns or is removed, another bank or trust company· shall be appointed as successor trustee. Before a Change in Control such appointment shall be made by the Company. From and after a Change in . Control any such appointment shall be made by the Consulting Firm, subject to the minimum standards set forth in Exhibit B hereto. The Company shall · promptly notify the Consulting Firm of the name and address of a successor trustee appointed by it, and the Consulting Firm shall promptly notify Plan participants and bene~ciaries of the name and address of every successor . trustee appointed or otherwise serving following a Change in Control. Each . appointment shall be effective when accepted in writing by the new trustee, who shall have all of the rights and powers of the former trustee, including.· ownership rights in the Trust assets upon transfer of same to the new trustee. The former trustee shall execute any instrument necessary or reasonably requested by the Company or the suc.cessor trustee to evidence the transfer .. If no appointment of a successor trustee has been made pursuant to this subsection, the Trustee may apply to a court of competent jurisdiction for appointment ot a successor or for instructions. All e:xpenses of the Trustee in. connection with the proceeding shall be allowed as · administrative expenses-of the Trust. (e) The successor trustee need not examine the records and acts of any prior trustee and may retain or dispose of existing Trust assets, subject to Sections 7 and 8 hereof. The successor· trustee shall not be responsible for any claim or liability resulting from any action or inaction of any prior tr1,1stee or from 12 

 

. , . . . - ( ( any other past event, or any condition existing at the time it becomes successor trustee. Section 11. Resignation and Removal of Consulting Firm (a) The Consulting Firm may resign at any time. by written notice to the Company, which shall be effective sixty (60) days after receipt of such notice unless the Company and the Consulting Firm agree otherwise. (b) The Consulting Firm may be removed by the Company at any time prior to a Change in Control on sixty (60) days written notice or upon shorter written notice accepted by the Consulting Firm. (c) · · · Upon resignation or removal of the Consulting Firm in accordance with (a) or (b) above, a iirm of compensation or retirement plan consultants or . certified public accountants shall be appointed the successor Consulting Firm. Before a Change in Control, such appointm~nt shall be made by the Company, and after a Change in Control it.shall be made by the Trustee, subject to such minimum standards and gUidelines as the Company shall have prescribed prior to the Change in Control. The Consulting Firm shall thereupon deliver to the successor Consulting Firm all records and documents in its possession as may. be reasonably required to enable the successor Consulting Firm properly to carry out its duties under this · Agreement. The Company and the Trustee shall each PI'omptly notify the Qther of the name and address of a successor Consulting Firm appointed by it, and a successor Consulting Firm, if appointed or otherwise serving following a Change in Control, shall promptly notify the Plan participants and beneficiaries of its appointment, name and address. Section 12. Amendment or Termination (a) . This. Agreement may be amended by a written instrument executed by the Trustee and the ·company. Any such amendment that increases the obligations of or otherwise adversely affects the Consulting Firm shall not be effective unless the Consulting Firm consents in writing; provided, that the . Company and the Trustee reserve the right, prior to a Change in Control and· · upon notice 'C;o the Consulting Firm, but without the consent of the Consulting Fir~ to reduce or eliminate the Consulting Firm's role prospectively~ From and after a Change in Control, (i) this Agreement may not be amended in any manner adverse to any Plan pa.rticipant or beneficiary unless such participant or beneficiary gives his or her signed . · consent to the amendment; provided, that the following shall not be deemed adverse to any Plan participant or beneficiary for purposes of this clause (i): . an amendment to combine or eliminate subtrusts or create new subtrusts within the Trust, and an amendment that is deemed necessary (as evidenced by the execution of any such amendment by the Company and the Trustee), 13 

 

. ~ .. - . ' •. ( ( (b) consistent with the irrevocable status of the Trust, to ensure insofar as is. possible that neither the Trust nor any portion thereof constitutes a "funding'' for tax or ERISA purposes; (ii) the Payment Schedule may not be ame~ded except by the Consulting Firm in accordance with Section 2(a); and (iii) Exhibit A may not be amended unless such aniendment is approved by a majority of all Plan participants (and beneficiaries of deceased participants), including in such majority Plan participants (and beneficiaries of deceased participants) with Plan benefits exceeding, in aggregate present value (as reasonably determined by the Consulting Firm), one half (50%) of the total. present value of all benefits payable under the -Plans. No amendment shall conflict with the terms of the Plan or shall make the Trust revocable after .it has become irrevocable in accordance with Section 1(b) hereof. The Company may revoke or terminate the Trust at any time prior t~ a Change in Control. From and after a Change in Control, the Trust shall.not terminate until the date on which Plan participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan. Upon termination of the Trust, any assets remaining in the Trust shall be returned to the Grantors; provided, that any stock. of the Company then held in the Trust shall be returned to the Company. Such remaining assets shall be paid by the Trustee in such amounts and in the manner instructed by the. Company, whereupon the Trustee shall be released and discharged from all obligations hereunder. From and after the date of termination, and until final distribution of the Trust Fund, the Trustee shall continue to have all of the powers provided herein as are necessary or expedient for the orderly liquidation and distribution of the Trust Fund. Section 13. Definition of Change in Control As used herein, the term Change in Control shall mean the occurrence of any of the following: (i) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1984, as amended (the "Exchange Act")) (a "Person") of beneficial ownership (within the meaning of Rule 18d-8 promulgated under the Exchange Act) of 25% or more of either (i) the then outstanding shares ofStock (the· "Outstanding Company Stock") or (ii) the combined voting power of the then outstanding voting securities of t;he Company entitled to "Outstanding Company Voting Securities"); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the Company, (B) any acquisition . by the Company, (C) any acquisition by ariy employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a . transaction which complies with clauses (A), (B) and (C) or subsection (iii) ·below; or 14 

 

(._ ( (ii) individuals who, as of the d.ate hereof, constitute the Board (the "Incumbent Board") cease for any reason or constitu~e at least a majority of th~ Board; provided, however, that any individual becoming a director ·subsequent to the date hereof whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbel)t Board, but excluding; for this purpose, any such individual whose initial assumption of office occurs as a result of an action or a threatened election contest with respect to the elect. on or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf Qf a Person other than the Board;or · (iii) · consummation of a reorganization, merger or col)solidation or sale or other disposition of all or substantially all of the assets of the Company (a "Business Combination''), in each case, unle·ss, following such Business · Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Stock and the . Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, · respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote · generally in the election of directors, as the case may be, of the ·corporation resulting from sucJt Business Combination (including, without limitation, a corporation which as a result. of such transaction owns -the Company.or all or . substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, · immediately prior to such Business Combination of the Outstanding Comp~y Stock and Outstanding Company_Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 25% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting. securities of such corporation except to the extent that such ownership · existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of · the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or · (iv) approval by the shareholders. of the Company of a complete liquidation or dissolution of the Company. Section 14. Change In Control Provisions 15 

 

•. The following provisions relating to a Change in Control shall apply ( notwithstanding any proVision contained herein to the contrary: ( (a) The Company shall have the duty to notify the Trustee and the Consulting Firm whenever a Change hi Control occurs; provided, that if a Change in · Control has occurred, it shall be treated as having occurred for purposes of this Agreement notwithstanding any failure by the Company to give such notice. If, notwithstanding the absence of noti~e by the Company as described in the first sentence of this Section 14(a), the Trustee receives credible information (from Plan participants or beneficiaries or otherwise) that a Change in Control has occurred, the Trustee shall so notify the Company (including a copy contemporaneously delivered to the G.eneral · Counsel of the Company) and the .Consulting Firm stating that it bas received such information and reciting the provisions of this Section 14(a). If the Company thereafter delivers to the Tr~stee and the Consulting Firm an opinion of independent legal counsel to the Company (which opinion may be based upon representations of fact, as long as counsel does not know that such ·representations are untrue) st~ting that a Change in Control has not occurred, no Change in Control will be deemed to have occurred for purposes of this Agreement; provided, that until the delivery of such an opinion, unless the Trustee shall have deterniined to its satisfaction that no Change in · Control has occurred, the Company shall not be authorized to revoke the Trust or to take any action to recover assets therefrom to the extent such action would not have been permitted following_ a Change in Control. (b) . Following the occurrence of a Change in Control, the Trustee shall deternune in its sole and absolute discretion, and shall give the Company and the Consulting Firm notice of, the "Trust Asset Value" (as herei~after defined) and the Consulting Firm shall determine, and give the Company and the Trustee notice of, the "Required Assets" (as hereinafter defined). Such determinations . · shall be made, b1 each case as of the most recent "Measurement· Date'' (as hereinafter defined), as soon as practical following, and in all events within thirty days following receipt of notice of, the date of the Change in Control, and thereafter not less frequently than annually. In the case of the computation of the ~equired Assets, such determinations shall be based upon· the most recent information available to the Consulting Firm pursuant to Section 2(a). · (c) Following the occurrence of a Change in Control, the Company shall contribute or cause to be contributed to the Trust, in cash, the excess (if any) of the Required Assets over the Trust Asset Value as of each Measurement Date beginning with the Change in Control, plus interest at the Applicable ··Federal Rate (as hereinafter defined) from such Measurement Date through. the Hate of contribution, within three business days after receiving noti.ce thereof. 16 

 

~~~ ~ ( ( (d) The Company sha.ll have the right to withdraw, or to cause to be withdrawn by itself or by one or more Subsidiaries, assets from the Trust in accordance with this Section 14(d). The Company may exercise this right of withdrawal by giving the Trustee and the Consulting Firm notice of its desire to do so and directing the Trustee to distribute to it and/or to one or more of its Subsidiaries all or any portion of the assets comprising the Trust Fund~ and the Trustee shall so distribute such assets as promptly as practicable; provided, that no such distribution shall be made after a Change in Control . (regardless of when the Company's notice of exercise is given) to the extent that the Trust Asset Value ·~s of the most recent Measurement Date betore such distribution is made, adjusted to reflect such distribt~tion, would be less than 120 percent of the Required Assets determined as of such Measurement Date. (e) For purposes of this Agreement: (i) The "Applicable Federal Rate" as of any date means the applicable federal rate (as det.ermined under Secti<>n 1274(d) of:tb,e Code) in effect on that date. Unless specified herein to the contrary, the applicabie . federal rate shall be the applicable long term federal rate as determined under Section 1274(d) of the Ce>de. (ii) The term ."Measurement Date" nieans the last day of each calendar year or the date a Change in Control occurs; (iii) The term "Required Assets" means the present value, as of the Measurement Date, of the sum of (x) the inaximum aggregate amount. that could become payable te> participants and beneficiaries under the Plans if their employment terminated on the six-month anniver.sary of the Measurement Date, and (y) an estimate of the expenses reasonably likely to be incurred by the Trust from the Measurement Date. through such six-month anniversary, including without limitation the Trustee's and Consuiting Firm's fees as estimated by the Trustee and the Consulting Firm, respectively. In determining the present value of. any benefit under a Plan, the Consulting Firm shall use the interest rate in effect for purposes of the Plan on the Measurement Date or, if it produces a larger present value, the interest rate that the Consulting Firm reasonably expects to be in·effect on such six-month anniversary, based upon market conditions at the time the detenillna1;ion is being made; and (iv) The term "Trust Asset Value" means the aggregate net fair n:utrket value of the assets of the Trust Fund as of the relevant Measurement Date. Section 15. Legal Defense Fund 17 

 

.. -~ .. . . : ( ( (a) The Trustee shall establish within the Trust Fund a separate fund,· hereinafter ~eferred to as a "Legal Defe~se Fund". The Legal Defense Fund shall consist of such portions of its contributions to its Trust as the Company. shall specify in writing at the time of contribution, together with all income, gains and losses an(! proceeds from the investment, reinvestment and sale thereof, less all payments therefrom and expenses charged thereto in accQrdance with the provisions of this Agreement. Subject to Section 8, the Legal Defense Fund shall be held and administered by the ·Trustee for the purpose of defraying the costs and expenses incurred by participants and beneficiaries assoCiated with the enforcement of their rights under the Plans by litigation or other legal action·and the Trustee in performing its duties under this Section. · (b) The Legal Defense Fund shall be maintained and administered as a separate segregated account, provided, however, that the assets of the Legal Defense . Fund may be commingled with all other assets of the same· Trust, and with the assets of any other Trust, solely for investment purposes. (c) . . If, at any time after a Change in Control, legal proceedings are brought. against the Trustee by the Company or another party seeking to invalidate any of the provisions of this Agreement as they relate to the· Trust, or seeking to enjoin the Trustee from paying any amounts from any.Trust or from taking any other action otherwise. required or permitted to be taken by the Trustee under this Agreement with respect to any Trust, the Trustee shall take all steps that may be necessary in such proceedlng to uphold the . validity and enforceability of the provisions of this Agreement as they relate to such Trust. The Trustee shall be empowered to retain· counsel and other appropriate experts, including actuaries and accountants; to assist it in making any determination under this Section 15. All. costs and expenses incurred by the Trustee in connection with any such proceeding (including, without limitation, the payment of reasonable fees, costs and disbursements of any counsel, actuaries, accountants or other experts retained by· the Trustee in connection with such.proceeding) shall be charged to and paid. froni the Legal Defense Fund. To the extent the Trustee's legal :Cees and expenses exceed the amount available in the Legal Defense FUnd, Such fees and· expenses shall be pa1d by the Trustee from the assets of the Trust Fund. (d) If, at any time after a Change in Control, a participant or beneficiary notifies. the Trustee in writing that the Company or any Subsidiary has refused to pay a claim asserted by such participant or beneficiary -under any Plan, the participant or beneficiary ("Claimant'') may demand payrilent from the Legal Defense Fund with respect to expenses incurred in connection with the initiation or defense of any litigation or other legal action by or against the Company or the Subsidiary. Such demand shall be made in writing by delivering to the Trustee within 90 days of the date the Claimant incurs such expenses (i) a certification signed by the· Claimant that the Company or the Subsidiary is in default in paying its obligations under the Plan, and (ii) 18 . 

 

•' ·. ( ( (e) (f) (g) itemizing in reasonable detail in a form acceptable to the Trustee the expenses payable by the Legal Defense Fund. A participant's ~r beneficiary's right to claim against the Legal Defense Fund or to be reimbursed therefrom. shall be subject to such additional limitations, conditions and preclusions, if any, as the. Compan;r may prescribe by notice to the Trustee prior to the Change in Control. In the event that on the date a Claimant's expenses are to be paid from the Legal Defense Fund other expenses payable from such fund have been claimed but not yet paid and the aggregate amount of all claims exceeds the amount available in the Legal Defense Fund, the Company shall be obligated to make an additional contribution to the Legal Defense Fund. In the event the Company fails to make such additional contribution, the Tru:stee shall promptly advise the Claimant and shall only pay that portion of the amount of the claim which is determined by multiplying such Claimant's claim by a fraction, the numerator of which is the amount held in the Legal Defense Fund and the denominator or which is the aggregate ·of the claims made by all Claimants. · · · . . . . . .. ·. . Notwithstanding any provision herein to the contrary, the Trustee shall be required to act under this Section only to the extent there are sufficient amounts available in the Legal Defense Fund to defray the· costs and expenses·the Trustee reasonably anticipates will be incurred in connection with such action. The Company's Legal Defense Fund shall continue to be held and ad:Ministered by the Trustee for the purposes described in J~ection 15 until such time as all benefits to whicb all participants are entitled under all Plans shall have been paid in full to such participants or their beneficiaries. Any balance then remaining in the Legal Defense Fund shill be distributed to the Company. Section 16 ·Miscellaneous (a) Any proyision of this Agreement prohibited by law shall be ineffect.ive to tbe exte;nt of any such prohibition, without invalidating the remaining· provisions heJ,"eof. ·· (b) Benefits payable to Plan participants and their beneficiaries under this Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged~ encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process. (c) This Agreement shall be governed by and construed in accordance with the laws of the .State of California .. 19 

 

. ' (d) c (e) ( This Agreement shall be binding on, and the powers granted to the Company, the Consulting Firm and the Trustee, respectively, shall be exercisable by the. respective successors and assigns ofthe Company, the Consulting Firm and the T..-ustee •. Any corporation that succeeds to substantially all of the business of the Trustee by merger, consolidation, purchase or otherwise shall upon succession and without appointment or other action by the Company be and become successor Trustee hereunder. Any communication to the Consulting Firm or the Trustee, including any . . notice, direction, designation, certification, order, instruction or objection, . shall be in writing (including for this purpose e-mail, fax or similar paperless transmissions) and signed (including equivalent· authentications used in · connection with paperless transmissions) by the person authorized under the applicable Plan or the Agreement. Each of the Consulting Firm and the Truste.e shall be fully protected and indemnified by the Company against any loss or liability incurred, other than as .a result of it$ negligence or willful misconduct, in acting in accordance with such written communications. Any notice required or permitted to ])e given hereunder shall be deemed given it written and hand delivered, mailed, postage prepaid, certified mail, retUrn receipt requested or transmitted by facsimile to the· Company, the Consulting Firm or the Trustee at the following address or such other address as a party may specify: (i) if to the Company: State Street Corporation 225 Franklin Street Boston, MA 02110 Attention: General Counsel Facsimile No. (617) 664-4006 (ii) If to the Consulting Firm: Mercer Human Resource LLC 2000 Clarendon Street Boston, MA 02116-5089 (iii) · If to the Trustee: U. S. Trust Company, N.A. 515 S. Flower Street, Suite 2800 Los Angeles, CA 90071-2291 Facsimile No. (213) 488-1366 20 

 

( c .. . (f) Attention: Dennis Kunisaki Any obligation of the Company and/or the Trust to pay the Trustee amounts pursuant to any provision of this Agreement shall survive any amendment or terniination hereof or the Trustee's resignation or removal. Section 17. Effective Df!,te. The effective date of this Agreement shall be June 1, 2002. IN WITNESS WHEREOF the Company and the Trustee have signed this Agreement . as of ~he date first written above. STATE STREET CORPORATION Title: .Zf-:\~~~ . . ~ ..r..:L't .... :..o • .:t U.S. TRUST COMPANY, NATIONAL ASSOCIATION By:·,~··· . Title:'~ lku. ~· MERCER HUMAN RESOURCE LLC By:~OOJL~ ... ----~-H---. . Title: __ .-.~f..,;_r",;.,t.;"'~rk~r-=al~.'-· - .. ___ _ 21 

 

... ( ( . ' . ' . EXIDBIT A List of Plans State Street Corporation Supplemental Executive Retirement Plan (SERP) State. Street Corporation Supplemental Defined Benefit Pension Plan (SUPER SERP) 22 

 

'· ( ' . ..,,1, .. . 1. 2. 3. 4. 5. 6. EXHIBITB Minimum Standards for Successor Trustee The successor trustee must not be affiliated with the Company or any company, entity or group that acquires the Company pursuant to a Change in Control. · · The successor trustee must provide trust services to ten or more nonqualified trusts where the trust arrangement (commonly referred to as a "rabbi trust") does not affect the. status of any underlying Jionqualified plan as an unfunded plan maintained for the purpose of providing deferred compensation for · select management and highly· compensated employees. for purposes of Title I of ERISA. The successor trustee must have at least $25 billion in assets under trustee custodianship. The successor trustee must ha~e at least $5. billion in assets under discretionary investment management. The successor trustee must have more than one investment product and several classes of assets under management. The successor trustee's investment products must have competitive performance (net of fees), in the sole and absolute judgment ofthe Consulting · Firm, relative to market and peer group indices. 7. The successor trustee must have been in the business of providing trust services to both nonqualified and qualified.plans for a period·oflO years immediately prior to its selection. · Notwithstanding the seven minimum standards set forth in this Schedule B, the Consulting Firm may waive any one or more of these minimum standards if the Consulting Firm, in its sole and absolute discretion, determines that any such standard or standards can :not reasonably be satisfied. 23Exhibit 10.7

 

GRANT AGREEMENT

 

RITCHIE BROS. AUCTIONEERS INCORPORATED

 

AMENDED AND RESTATED

SENIOR EXECUTIVE RESTRICTED SHARE UNIT
PLAN

 

This Grant Agreement is made as of the
date set out in Schedule A hereto and is made between the undersigned “Participant” (the “Participant”),
being an employee of Ritchie Bros. Auctioneers Incorporated (the “Corporation”) or a subsidiary of the Corporation
(which employer is herein referred to as the “Employer”) designated pursuant to the terms of the Amended and Restated
Senior Executive Restricted Share Unit Plan of the Corporation (which Plan, as the same may from time to time be modified, supplemented
or amended and in effect is herein referred to as the “Plan”), and the Corporation. Capitalized terms used and not
otherwise defined herein shall have the meaning ascribed to them in the Plan.

 

In consideration of the grant or award
of Restricted Share Units made to the Participant pursuant to the Plan (the receipt and sufficiency of which are hereby acknowledged),
the Participant hereby agrees and confirms that:

 

		1.	The Participant has received a copy of the Plan and has read, understands and agrees to be bound
by the provisions of the Plan.

 

		2.	The Participant accepts and consents to and shall be deemed conclusively to have accepted and consented
to all terms and conditions of the Plan and all actions or decisions made by the Board or the Committee or any person to whom the
Committee may delegate administrative powers and duties under the Plan, in relation to the Plan, which provisions and consent shall
also apply to and be binding on the Beneficiaries, other legal representatives, other beneficiaries and successors of the Participant.

 

		3.	On the grant date (or, if applicable, grant dates) set out in Schedule A hereto, the Participant
was granted Restricted Share Units in such number as is set out in such Schedule A, which grant is evidenced by this Grant
Agreement.

 

		4.	The Restricted Share Units evidenced by this Grant Agreement, and all Restricted Share Units referred
to in Section 4.2 of the Plan in respect of such Restricted Share Units, shall vest at the time and in the manner, and subject
to the restrictions and conditions, as are set out in Schedule A hereto (including any Exhibit thereto), which forms part
of this Grant Agreement.

 

		5.	Pursuant to the provisions of the Plan, if the Participant ceases to be an employee of the Corporation
or an Affiliate for any reason, notwithstanding any provision of any employment agreement between the Participant and the Corporation
or any Affiliate, the Participant shall not have any right to be awarded any additional RSUs after the last day of active employment
of the Participant on which the Participant actually performs the duties of the Participant’s position and shall not have
any right to damages in respect of any loss of any right to be awarded RSUs after the last day of active employment of the Participant.
In addition, pursuant to the provisions of the Plan, if the Participant ceases to be an employee of the Corporation or an Affiliate,
in certain circumstances RSUs recorded in the Participant’s RSU Account that have not vested shall not vest and shall be
forfeited and cancelled without payment. In other circumstances, unvested RSUs are not forfeited, but payment in respect of such
RSUs following vesting in accordance with the provisions of the Plan may be prorated to reflect the percentage of the Vesting Period
during which the Participant was actually employed.

 

    	 

     

    

 

		6.	As set out in the Plan, subject to the right of a Participant to designate one or more Beneficiaries
entitled to receive benefits under the Plan following the death of the Participant as expressly set out in the Plan, the Participant
may not assign or transfer any right or interest under the Plan or any RSUs granted to the Participant or any right to payment
or benefits under the Plan, except to the extent otherwise required by Applicable Laws and except by will or by the laws of succession
or descent and distribution.

 

		7.	As set out in the Plan, the Plan may be amended by the Board or the Committee from time to time.

 

		8.	The Plan includes provisions pursuant to which the Corporation and, if applicable, its Affiliates
may withhold, or cause to be withheld, and deduct, or cause to be deducted, from any payment under the Plan and otherwise, a sufficient
amount to cover Applicable Tax Withholdings, and take other action to satisfy obligations for payment of Applicable Tax Withholdings,
including authority to withhold or receive property and make cash payments in respect thereof, and to require, prior to making
any payment under the Plan, payment by the recipient to satisfy tax obligations.

 

		9.	The Participant will at all times act in strict compliance with Applicable Laws and all rules and
policies of the Corporation, including any insider trading policy of the Corporation in effect at the relevant time, applicable
to the Participant in connection with the Plan and the Participant’s RSUs and will furnish to the Corporation all information
and documentation or undertakings as may be required to permit compliance with applicable laws. The Participant acknowledges, agrees
and consents to information being disclosed or provided to others as contemplated in the Plan.

 

		10.	The Participant acknowledges that, if the Corporation is not the Participant’s Employer,
the Employer has validly authorized and appointed the Corporation to enter into this Grant Agreement as the agent of the Employer.

 

The validity, construction and effect of
this Grant Agreement shall be determined in accordance with the laws of British Columbia and the laws of Canada applicable therein.

 

Words used herein which are defined in
the Plan shall have the respective meanings ascribed to them in the Plan.

 

This Agreement shall enure to the benefit
and be binding upon the Corporation, the Employer and their respective successors, and on the Participant and the Participant’s
legal representatives, beneficiaries and successors.

 

	
        

        REVOCABLE BENEFICIARY DESIGNATION*

        The Participant designates the following Beneficiary or Beneficiaries of the Participant for the purposes of the Plan.

        The Participant reserves the right to change the designation of Beneficiaries or alter this designation as provided in the Plan.

	o   Initial Designation	o    Beneficiary Change  The Participant hereby revokes any previous designation and appoints the following each as a revocable Beneficiary of the Participant for the purposes of the Plan.
	Given Names and Initial	Last Name	Relationship to Employee	% Allocation	Phone #
	 	 	 	 	 
	Given Names and Initial	Last Name	Relationship to Employee	% Allocation	Phone #
	 	 	 	 	 
	Given Names and Initial	Last Name	Relationship to Employee	% Allocation	Phone #
	 	 	 	 	 

 

    	2

     

    

 

	CHANGE OF BENEFICIARY NAME OR PHONE NUMBER 

Use this section ONLY when the Participant is reporting a change in a current Beneficiary’s
name or phone number.
	o The
    Participant hereby requests that the records under the Plan reflect the following change of name or phone number of a
    Beneficiary of the Participant.  
	FROM	Given Names and Initial	Last Name	Relationship to Employee	Phone #
	 	 	 	 
	TO	Given Names and Initial	Last Name	Relationship to Employee	Phone #
	 	 	 	 

* The ability to designate Beneficiaries
for the purposes of the Plan is included solely for the convenience of the Participant. The designation is for the purposes of
entitlement to receive benefits under the Plan following the death of the Participant. Neither the Company nor the Employer makes
any representation regarding the validity or effectiveness of any Beneficiary designation, including, without limitation, in relation
to potential claims or rights of creditors or a Participant’s estate planning. The Participant should consult with the Participant’s
own advisors regarding designation or change of Beneficiaries.

 

IN WITNESS WHEREOF Ritchie Bros. Auctioneers
Incorporated, on its own behalf and, if the Corporation is not the Employer, on behalf of and as agent for the Employer, has executed
and delivered this Grant Agreement, and the Participant has signed, sealed and delivered this Grant Agreement, as of the date first
above written.

 

	RITCHIE BROS. AUCTIONEERS 

INCORPORATED	 	RITCHIE BROS. AUCTIONEERS 

INCORPORATED, as agent for the Employer
	 	 	 
	Per:	 	 	Per:	 
	 	 	 
	Per:	 	 	Per:	 

 

I,                                                        
hereby confirm that I have reviewed the terms of this Grant Agreement 

 

NAME OF PARTICIPANT

and I accept and agree to be bound by those
terms.

 

    	3

     

    

 

	 	 	 	(seal)
	 	 	SIGNATURE OF PARTICIPANT 	 
	 	 	 	 
	 	 	 	 
	Witness*	 	 	 
	 	 	 	 
	 	 	 	 
	Witness*	 	 	 

 

 

* If the Participant is completing the
Beneficiary Designation or changing Beneficiaries, the Participant should sign this Grant Agreement in the presence of two witnesses
present at the same time, which witnesses should sign while the Participant is present.

 

    	4

     

    

 

Schedule A
to Grant Agreement

 

	1.      Name of Participant:	 

 

	2.      Date of Grant Agreement:	 

 

	3.      Number of Restricted Share Units Granted:	 

 

	4.      Date of Grant:	 

 

	5.      Vesting Period and Vesting Conditions:

 

		(a)	Vesting Period [Insert as applicable. Examples follow.]

 

[The Vesting Period in respect
of 100% of the RSUs granted hereunder shall commence on ___________________, the effective date of the grant or award of such RSUs,
and shall end on ___________________, the third anniversary of the effective date of the grant or award, less one day. The RSUs
shall become vested on the last day of the Vesting Period, provided the Participant has remained continuously employed by the Corporation
or an Affiliate through the last day of the Vesting Period.]

 

[The Vesting Period in respect
of all of the RSUs granted hereunder shall commence on ___________________, the effective date of the grant or award of such RSUs,
and shall end on the dates indicated below with respect to each separate tranche. The RSUs shall become vested on the last day
of the Vesting Period applicable to such RSUs, provided the Participant has remained continuously employed by the Corporation or
an Affiliate through the last day of the applicable Vesting Period.

 

	
        

        Number (or percent) of RSUs to Vest on

        Last Day of Vesting Period
	Last Day of Vesting Period
	Tranche 1 – [e.g. 33% of total RSUs awarded]	[e.g. first anniversary of the effective date]
	Tranche 2 – [e.g. 33% of the total RSUs awarded	[e.g. second anniversary of the effective date]
	Tranche 3 – [e.g. 34% of the total RSUs awarded	[e.g. third anniversary of the effective date, less one day]

 

<end>]

 

		(b)	Termination without Cause

 

Except as otherwise determined by the Board
or Committee from time to time, in their sole discretion, in the event of the termination by the Corporation or an Affiliate of
the Participant’s employment with the Corporation or an Affiliate other than for Cause, including termination by the Corporation
or an Affiliate of the Corporation of the Participant’s employment (A) following the making of a declaration of a court of
competent jurisdiction that the Participant is incapable of managing the Participant’s own affairs by reason of mental infirmity
or the appointment of a committee to manage the Participant’s affairs, or (B) following the Participant becoming substantially
unable, by reason of a condition of physical or mental health, for a period of three consecutive months or more, or at different
times for more than six months in any one calendar year, to perform the duties of the Participant’s position, all unvested
Restricted Share Units recorded in the Participant’s RSU Account shall continue to vest as contemplated in the Plan, and
will be settled and paid out as soon as practicable following the end of the Vesting Period applicable to the RSUs as set forth
herein, and:

 

    	A-1 

     

    

 

		(i)	the Participant will be entitled to receive payment pursuant to the provisions of Article 6 of
the Plan in respect of all RSUs recorded in the Participant’s RSU Account as at the last day of active employment of the
Participant that had vested as at the last day of active employment of the Participant, and such payment shall occur as soon as
practical following the end of the Vesting Period applicable to such RSUs; and

 

		(ii)	the Participant will be entitled to receive payment pursuant to the provisions of ARTICLE 6 of
the Plan in respect of all RSUs recorded in the Participant’s RSU Account as at the last day of active employment of the
Participant that vest after the last day of active employment of such Participant, provided that the payment provided pursuant
to section 6.1 shall be prorated to reflect the percentage of the Vesting Period which the period, commencing on the Grant
Date and ending on the last day of active employment of such Participant, bears to the Vesting Period, determined in accordance
with Section 7.1(b) of the Plan.

 

		(c)	Termination with Cause

 

Except as otherwise determined by the Board
or Committee from time to time, in their sole discretion, in the event of the termination by the Corporation or an Affiliate of
the Participant’s employment for Cause:

 

		(i)	the Participant will be entitled to receive payment pursuant to the provisions of Article 6 of
the Plan in respect of all RSUs recorded in the Participant’s RSU Account as at the last day of active employment of the
Participant that had vested as at the last day of active employment of the Participant, and such payment shall occur as soon as
practical following the end of the Vesting Period applicable to such RSUs; and

 

		(ii)	all RSUs recorded in the Participant’s RSU Account as at the last day of active employment
of the Participant that had not vested prior to the last day of active employment of the Participant shall not vest and shall be
forfeited and cancelled without payment.

 

		(d)	Resignation

 

Except as otherwise determined by the Board
or Committee from time to time, in their sole discretion, in the event of the voluntary termination by the Participant of the Participant’s
employment with the Corporation or an Affiliate:

 

		(i)	the Participant will be entitled to receive payment pursuant to the provisions of Article 6 of
the Plan in respect of all RSUs recorded in the Participant’s RSU Account as at the last day of active employment of the
Participant that had vested as at the last day of active employment of the Participant, and such payment shall occur as soon as
practical following the end of the Vesting Period applicable to such RSUs; and

 

		(ii)	all RSUs recorded in the Participant’s RSU Account as at the last day of active employment
of the Participant that had not vested prior to the last day of active employment of the Participant shall not vest and shall be
forfeited and cancelled without payment.

 

    	A-2 

     

    

 

		(e)	Retirement

 

Except as otherwise determined by the Board
or Committee from time to time, in their sole discretion, in the event of the termination by the Participant of the Participant’s
employment with the Corporation or an Affiliate as a result of the Retirement of the Participant, all unvested RSUs recorded in
the Participant’s RSU Account shall continue to vest as contemplated in the Plan, and will be settled and paid out as soon
as practicable following the end of the Vesting Period applicable to the RSUs as set forth herein, and:

 

		(i)	the Participant will be entitled to receive payment pursuant to the provisions of Article 6 of
the Plan in respect of all RSUs recorded in the Participant’s RSU Account as at the last day of active employment of the
Participant that had vested as at the last day of active employment of the Participant, and such payment shall occur as soon as
practical following the end of the Vesting Period applicable to such RSUs; and

 

		(ii)	the Participant will be entitled to receive payment pursuant to the provisions of ARTICLE 6 of
the Plan in respect of all RSUs recorded in the Participant’s RSU Account as at the last day of active employment of the
Participant (and, if applicable, any RSUs referred to in section 4.2 credited to the Participant’s RSU Account after
such last day of active employment in relation to any RSUs recorded in such Participant’s RSU Account as at such last day
of active employment) that vest after the last day of active employment of such Participant,

 

		(f)	Death

 

Except as otherwise determined by the Board
or Committee from time to time, in its sole discretion, in the event of termination of the Participant’s employment with
the Corporation or an Affiliate as a result of the death of the Participant, all unvested RSUs recorded in the Participant’s
RSU Account shall continue to vest as contemplated in the Plan and will be settled and paid out as soon as practicable following
the end of the Vesting Period applicable to such RSUs in a lump sum payment in cash, net of all Applicable Tax Withholdings, in
accordance with Section 7.5 of the Plan:

 

		(i)	the Beneficiary or legal representatives of the Participant will be entitled to receive payment
pursuant to the provision of Article 6 of the Plan in respect of all RSUs recorded in such Participant’s RSU Account as at
the date of death that had vested as at the date of death; and

 

		(ii)	the Beneficiary or legal representative of the Participant will be entitled to receive payment
pursuant to the provisions of Article 6 of the Plan in respect of all RSUs recorded in the Participant’s RSU Account as at
the date of death (and, if applicable, any RSUs referred to in section 4.2 of the Plan credited to the Participant’s RSU
Account after the date of death in relation to any RSUs recorded in such Participant’s RSU Account as at the date of death)
that vest after the date of death.

 

		(g)	Change of Control

 

If the Participant’s employment with
the Corporation or an Affiliate is terminated (A) by the Corporation or Affiliate, other than for Cause, upon a Change of Control
or within two years following a Change of Control, or (B) by the Participant for Good Reason upon a Change of Control or within
one year following a Change of Control:

 

    	A-3 

     

    

 

		(i)	the Participant will be entitled to receive payment pursuant to the provisions of Article 6 of
the Plan in respect of all Vested RSUs recorded in the Participant’s RSU Account as at the date of such termination of employment
(before giving effect to section 7.8(b) of the Plan); and

 

		(ii)	notwithstanding section 5.1 of the Plan or any determination made pursuant to section 5.2 of the
Plan, all RSUs recorded in the RSU Account of the Participant as at the date of the termination of employment shall vest as at
such date and the provisions of Article 6 of the Plan shall not apply in respect of such RSUs and the Corporation will pay to the
Participant a cash payment in the amount equal to the number of such Vested RSUs multiplied by the Fair Market Value of one Common
Share as at the date of vesting, payable by a lump sum payment in cash, net of all Applicable Tax Withholding, directly to the
Participant, within 30 days of the date of the termination, provided that if a U.S. Participant is a specified employee within
the meaning of Section 409A of the Internal Revenue Code at the time of the termination of employment, the payment will be delayed
six months in accordance with Section 6.6(b) of the Plan, to the extent it is applicable.

 

The RSUs shall be in respect of services
to be performed by the Participant in the current calendar year in which the RSUs are granted or awarded and shall be in addition
to and not in substitution for or in lieu of ordinary salary and wages received by such Participant in respect of services to the
Participant’s Employer.

 

		(h)	General

 

The foregoing is subject to the provisions
of the Plan regarding authority of the Committee to administer the Plan, including, without limitation, to construe and interpret
any provisions of the Plan and decide all questions of fact arising in connection with such construction and interpretation and
make such determinations and take such steps and actions as may be directed or permitted by the Plan and take such actions and
steps in connection with the administration of the Plan as the Committee, in its discretion, may consider necessary and desirable,
and regarding the discretion of the Committee to make changes or adjustments as the Committee may consider equitable and regarding
waiver of restrictions with respect to vesting criteria, conditions, limitations or restrictions, with respect to any RSU granted
or awarded to any Participant (including reducing or eliminating any Vesting Period originally determined) and permitting acceleration
of vesting of any or all RSUs or determining that any RSU has vested, in whole or in part and regarding amendment of the Plan,
provided that with respect to RSUs of U.S. Participants, such actions will be in accordance with Section 6.6 of the Plan.

 

    	A-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]