Document:

Receivablles Purchase Agreement, dated as of December 18, 2003

 Exhibit 10.14 
  
 RECEIVABLES PURCHASE AGREEMENT 
  
 Dated as of December 18, 2003 
  
 Among 
  
 BRP RECEIVABLES FUNDING, LLC  
  
 as the Seller 
  
 and

  
 BOMBARDIER CAPITAL INC. 
  
 as the initial Investor and Operating Agent 
  
 and 
  
 BOMBARDIER MOTOR CORPORATION OF AMERICA 
  
 BOMBARDIER NORDTRAC AB 
  
 BOMBARDIER NORDTRAC AS and 
  
 BOMBARDIER-NORDTRAC OY 
  
 as Originators and Servicers 
  
 and 
  
 BOMBARDIER RECREATIONAL
PRODUCTS INC.  
  
 as an Originator and as the Parent
Servicer 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 PRELIMINARY STATEMENT
	  	1
			
	 ARTICLE I
	  	 	  	 
		
	 DEFINITIONS
	  	1
	 SECTION 1.01.
	  	Certain Defined Terms	  	1
	 SECTION 1.02.
	  	Other Terms	  	19
			
	 ARTICLE II
	  	 	  	 
		
	 AMOUNTS AND TERMS OF THE PURCHASES
	  	19
	 SECTION 2.01.
	  	Purchase Facility	  	19
	 SECTION 2.02.
	  	Making Purchases	  	20
	 SECTION 2.03.
	  	Receivable Interest Computation	  	21
	 SECTION 2.04.
	  	Settlement Procedures	  	21
	 SECTION 2.05.
	  	Fees	  	24
	 SECTION 2.06.
	  	Payments and Computations, Etc.	  	24
	 SECTION 2.07.
	  	Dividing or Combining Receivable Interests	  	25
	 SECTION 2.08.
	  	Increased Costs	  	25
	 SECTION 2.09.
	  	Additional Yield on Receivable Interests Bearing a Eurodollar Rate	  	26
	 SECTION 2.10.
	  	Taxes	  	26
	 SECTION 2.11.
	  	True Sales	  	28
	 SECTION 2.12.
	  	Sharing of Payments	  	28
	 SECTION 2.13.
	  	Cutoff Date	  	29
			
	 ARTICLE III
	  	 	  	 
		
	 CONDITIONS OF PURCHASES
	  	29
	 SECTION 3.01.
	  	Conditions Precedent to Initial Purchase	  	29
	 SECTION 3.02.
	  	Conditions Precedent to All Purchases and Reinvestments	  	31
			
	 ARTICLE IV
	  	 	  	 
		
	 REPRESENTATIONS AND WARRANTIES
	  	32
	 SECTION 4.01.
	  	Representations and Warranties of the Seller	  	32
	 SECTION 4.02.
	  	Representations and Warranties of the Servicers	  	34
			
	 ARTICLE V
	  	 	  	 
		
	 COVENANTS
	  	35
	 SECTION 5.01.
	  	Covenants of the Seller	  	35
	 SECTION 5.02.
	  	Covenant of the Seller and the Originators	  	41

  

 i 

					
	 ARTICLE VI
	  	 
		
	 ADMINISTRATION AND COLLECTION OF POOL RECEIVABLES
	  	42
	 SECTION 6.01.
	  	Designation of Servicers	  	42
	 SECTION 6.02.
	  	Duties of Servicers	  	42
	 SECTION 6.03.
	  	Certain Rights of the Operating Agent	  	45
	 SECTION 6.04.
	  	Rights and Remedies	  	46
	 SECTION 6.05.
	  	Further Actions Evidencing Purchases	  	46
	 SECTION 6.06.
	  	Covenants of the Servicers and the Originators	  	47
	 SECTION 6.07.
	  	Indemnities by the Servicers	  	47
		
	 ARTICLE VII
	  	 
		
	 EVENTS OF TERMINATION
	  	48
	 SECTION 7.01.
	  	Events of Termination	  	48
		
	 ARTICLE VIII
	  	 
		
	 THE OPERATING AGENT
	  	52
	 SECTION 8.01.
	  	Authorization and Action	  	52
	 SECTION 8.02.
	  	Operating Agent’s Reliance, Etc.	  	52
	 SECTION 8.03.
	  	Business with Seller, any Servicer or any Obligor	  	52
	 SECTION 8.04.
	  	Investor’s Purchase Decision	  	52
		
	 ARTICLE IX
	  	 
		
	 INDEMNIFICATION
	  	53
	 SECTION 9.01.
	  	Indemnities by the Seller	  	53
		
	 ARTICLE X
	  	 
		
	 MISCELLANEOUS
	  	55
	 SECTION 10.01.
	  	Amendments, Etc.	  	55
	 SECTION 10.02.
	  	Notices, Etc.	  	55
	 SECTION 10.03.
	  	Assignability	  	56
	 SECTION 10.04.
	  	Costs and Expenses	  	56
	 SECTION 10.05.
	  	Waiver of Consequential Damages	  	56
	 SECTION 10.06.
	  	Confidentiality	  	57
	 SECTION 10.07.
	  	GOVERNING LAW	  	58
	 SECTION 10.08.
	  	Execution in Counterparts	  	58
	 SECTION 10.09.
	  	Survival of Termination	  	59
	 SECTION 10.10.
	  	Consent to Jurisdiction	  	59
	 SECTION 10.11.
	  	WAIVER OF JURY TRIAL	  	59
	 SECTION 10.12.
	  	Judgment	  	60
	 SECTION 10.13.
	  	Entire Agreement	  	60
	 SECTION 10:14.
	  	Language	  	60

  

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	 SCHEDULES
	  	 	    	 
			
	 SCHEDULE I
	  	-	    	Deposit Accounts
	 SCHEDULE II
	  	-	    	Addresses of Seller, Originators, Investor, Operating Agent and Servicers
	 SCHEDULE III
	  	-	    	Approved Obligors
			
	 	  	 	    	 ANNEXES

			
	 ANNEX A-1
	  	-	    	Form of Monthly Seller Report
	 ANNEX A-2
	  	-	    	Form of Weekly Seller Report
	 ANNEX B
	  	-	    	Form of U.S. Deposit Account Agreement
	 ANNEX C-l
	  	-	    	Form of Opinion(s) of Ropes & Gray LLP
	 ANNEX C-2
	  	-	    	Form of Opinion of Osler, Hoskin & Harcourt, LLP
	 ANNEX C-3
	  	-	    	Form of Opinion of Hannes Snellman Attorneys at Law Ltd.
	 ANNEX C-4
	  	-	    	Form of Opinion of Advokatfirman Vinge KB
	 ANNEX C-5
	  	-	    	Form of Opinion of Thommessen Krefting Greve Lund AS Advokatfirma
	 ANNEX D
	  	-	    	Form of Assignment and Acceptance
	 ANNEX E
	  	-	    	Form of Funds Transfer Letter
	 ANNEX F-l
	  	-	    	Form of Undertaking (Parent)
	 ANNEX F-2
	  	-	    	Form of Undertaking (Bombardier Motor)
	 ANNEX G
	  	-	    	Form of Notices to Obligors and Invoice Legends

  

 iii 

 RECEIVABLES 
 PURCHASE AGREEMENT 
  
 Dated as of
December 18, 2003 
  
 BRP RECEIVABLES FUNDING, LLC, a Delaware
limited liability company (the “Seller”), BOMBARDIER CAPITAL INC., a Massachusetts corporation, as an Investor and as operating agent (the “Operating Agent”) for the Investors, BOMBARDIER MOTOR CORPORATION OF
AMERICA, a Delaware corporation, as an Originator and a Servicer, BOMBARDIER NORDTRAC AB, a Swedish incorporated company, as an Originator and a Servicer, BOMBARDIER NORDTRAC AS, a Norwegian incorporated company, as an Originator and a Servicer,
BOMBARDIER-NORDTRAC OY, a Finnish limited liability company, as an Originator and a Servicer, and BOMBARDIER RECREATIONAL PRODUCTS INC., a Canadian corporation, as an Originator and the Parent Servicer, agree as follows: 
  
 PRELIMINARY STATEMENT. The Seller has acquired, and may continue to acquire,
Receivables from the Originators (as hereinafter defined). The Seller is prepared to sell undivided fractional ownership interests (referred to herein as “Receivable Interests”) in the Receivables. The Investors have agreed to
purchase such Receivable Interests on the terms set forth herein. Accordingly, the parties agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 SECTION 1.01. Certain Defined
Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
  
 “Adjusted Eurodollar Rate” means, for any Fixed Period, an
interest rate per annum equal to the rate per annum obtained by dividing (i) the Eurodollar Rate for such Fixed Period by (ii) a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for such Fixed Period. 
  
 “Adverse Claim” means a lien, security interest, mortgage,
pledge, assignment, hypothec, hypothecation, privilege, title retention or other charge or encumbrance. 
  
 “Affected Person” has the meaning specified in Section 2.08(a). 
  
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, is in control of, is
controlled by or is under common control with such Person or is a director or officer of such Person. 
  
 “Affiliated Obligor” means any Obligor that is an Affiliate of another Obligor. 
  

 “Alternate Base Rate” means a fluctuating interest rate per annum as shall be in effect
from time to time, which rate shall be at all times equal to the highest of: 
  
 (a) the rate of interest announced publicly by Citibank, N.A. in New York, New York, from time to time as Citibank, N.A.’s base rate; 
  
 (b) 1/2 of one percent above the latest three-week moving average of secondary market morning offering rates
in the United States for three-month certificates of deposit of major United States money market banks, such three-week moving average being determined weekly on each Monday (or, if such day is not a Business Day, on the next succeeding Business
Day) for the three-week period ending on the previous Friday by Citibank, N.A. on the basis of such rates reported by certificate of deposit dealers to and published by the Federal Reserve Bank of New York or, if such publication shall be suspended
or terminated, on the basis of quotations for such rates received by Citibank, N.A. from three New York certificate of deposit dealers of recognized standing selected by Citibank, N.A., in either case adjusted to the nearest 1/4 of one percent or,
if there is no nearest 1/4 of one percent, to the next higher 1/4 of one percent; and 
  
 (c) the Federal Funds Rate. 
  
 “Applicable Rate” for any Fixed Period for any Receivable Interest means an interest rate per annum equal to the Adjusted Eurodollar Rate
for such Fixed Period plus 4.0% plus (at any time when an Event of Termination shall exist) another 3.0%; provided, however, that in case of: 
  
 (i) any Fixed Period on or prior to the first day of which an Investor shall have notified the Operating Agent that the introduction of or
any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for such Investor to fund such Receivable Interest at the Applicable Rate set forth
above (and such Investor shall not have subsequently notified the Operating Agent that such circumstances no longer exist), or 
  
 (ii) any Fixed Period for a Receivable Interest the Capital of which allocated to the Investors is less than $500,000, 
  
 the “ Applicable Rate” for such Fixed Period shall be an interest rate per
annum equal to the Alternate Base Rate in effect from time to time during such Fixed Period plus 2.0% plus (at any time when an Event of Termination shall exist) another 2.0%; provided further that the Operating Agent and the Seller may agree
in writing from time to time upon a different “Applicable Rate”. 
  
 “Assignment and Acceptance” means an assignment and acceptance agreement entered into by an Investor, an Eligible Assignee and the Operating Agent, pursuant to which such Eligible Assignee may become
a party to this Agreement, in substantially the form of Annex D hereto, it being agreed that the Operating Agent will not amend the terms of Section 4, 

  

 2 

 
5a or 8 thereof without the consent of the Seller, which consent shall not be unreasonably withheld. 
  
 “BCI” means Bombardier Capital Inc., a Massachusetts
corporation, and any successor or permitted assign under Section 10.03 of BCI. 
  
 “BCI Subservicer Fee” has the meaning provided in Section 2.05(b) hereof. 
  
 “BCL” means Bombardier Capital Limited, a Quebec company. 
  
 “Bombardier Inc. Purchase Agreement” means the Purchase Agreement, dated December 2, 2003, between
Bombardier Inc. and Bombardier Recreational Products Inc. 
  
 “Bombardier Motor” means Bombardier Motor Corporation of America, a Delaware corporation. 
  
 “Bombardier Nordtrac AB” means Bombardier Nordtrac AB, a Swedish incorporated company with the Swedish registration number 5563537413.

  
 “Bombardier Nordtrac AS” means Bombardier
Nordtrac AS, a Norwegian incorporated company with Norwegian registration number 974394197. 
  
 “Bombardier-Nordtrac Oy” means Bombardier-Nordtrac Oy, a Finnish limited liability company, Business Identity Code 0703296-1. 
  
 “Business Day” means any day on which (i) banks are not authorized or required to close in New York City,
Montreal, Quebec or London, and (ii) if this definition of “Business Day” is utilized in connection with the Eurodollar Rate, dealings are carried out in the London interbank market. 
  
 “Canadian Dollars” means dollars in the lawful currency of
Canada. 
  
 “Capital” of any Receivable Interest
means the original amount paid to the Seller for such Receivable Interest at the time of its purchase by an Investor pursuant to this Agreement or such amount divided or combined in accordance with Section 2.07, in each case reduced from time to
time by Collections distributed on account of such Capital pursuant to Section 2.04(d); provided that if such Capital shall have been reduced by any distribution and thereafter all or a portion of such distribution is rescinded or must
otherwise be returned for any reason, such Capital shall be increased by the amount of such rescinded or returned distribution, as though it had not been made. 
  

“Collections” means, with respect to any Receivable, all cash collections and other cash proceeds of such Receivable, including,
without limitation, all cash proceeds of Related Security with respect to such Receivable, in each case received after December 12, 2003 and any Collection of such Receivable deemed to have been received pursuant to Section 2.04. 
  

 3 

 “Competitor” means any Person engaged, or whose direct or indirect parent (or any
Subsidiary thereof) or Subsidiaries or any sister corporation of any thereof are engaged, in a material respect in one of the same lines of business as the Parent or its Subsidiaries. 
  
 “Concentration Limit” for any Obligor means at any time 5% of the Net Receivables Pool Balance (such amount
being the “Normal Concentration Limit”); provided that (a) a special concentration limit shall be established for John Deere Inc., equal to 25% of the Net Receivables Pool Balance and (b) in the case of an Obligor with any
Affiliated Obligor, the Concentration Limit shall be calculated as if such Obligor and such Affiliated Obligor are one Obligor; provided further that in no event shall the aggregate Outstanding Balance of all Eligible Receivables
originated (a) by the Nordtrac Group in the Net Receivables Pool Balance at any time exceed an aggregate of $55,000,000 and (b) by Bombardier Motor and Bombardier Recreational Products Inc. in the Net Receivables Pool Balance at any time exceed an
aggregate of $60,000,000. 
  
 “Contract” means a
written agreement, invoice or purchase order between an Originator and an Obligor pursuant to or under which such Obligor shall be obligated to pay for goods or services from time to time (including, without limitation, an account, instrument,
installment sales contract, chattel paper or general intangible). 
  
 “Credit and Collection Policy” means those customary receivables credit and collection policies and practices of the Originators and the Seller in effect on the date of this Agreement as applied by such Originator or Seller
in the ordinary course of its lawful business, as such policies and procedures are modified from time to time in compliance with this Agreement, it being acknowledged in the case of the Parent that such policies and procedures refer to corresponding
policies and procedures of Bombardier Inc. as in effect on the date hereof. 
  
 “Debt” means (i) indebtedness for borrowed money, (ii) obligations evidenced by bonds, debentures, notes or other similar instruments, (iii) obligations to pay the deferred purchase price of property
or services, (iv) obligations as lessee under leases which shall have been or should be, in accordance with generally accepted accounting principles, recorded as capital leases, (v) obligations under direct or indirect guaranties in respect of, and
obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in clauses (i) through (iv) above and (vi) interest
rate swaps, currency hedges or other similar arrangements intended to protect a Person from fluctuations in interest rates or currency valuations. 
  
 “Debt Rating” for any Person means the rating by S&P or Moody’s of such Person’s long-term public senior unsecured
noncredit- enhanced debt. 
  
 “Defaulted
Receivable” means an Originator Receivable: 
  
 (i) as to which any payment, or part thereof, remains unpaid for 91 or more days from the original due date for such payment; 
  

 4 

 (ii) as to which the Obligor thereof (or any of the Obligor’s Affiliates obligated
thereon or owning any Related Security in respect thereof) has taken any action, or suffered any event to occur, of the type described in Section 7.0l (g); or 
  

(iii) which, consistent with the Credit and Collection Policy, would be written off the relevant Originator’s or the Seller’s
books as uncollectible within less than 91 days form the original due date for payment thereon. 
  
 “Deferred Purchase Price” has the meaning specified in the Originator Purchase Agreement. 
  
 “Deposit Account” means a post office box administered by a
Deposit Account Bank and/or an account maintained at a Deposit Account Bank, in each case as described in Schedule I. 
  
 “Deposit Account Agreement” means an agreement, in substantially the form of Annex B or with such changes therein as are appropriate for
use outside the United States as shall be reasonably satisfactory to the Operating Agent and its counsel. 
  
 “Deposit Account Bank” means any of the banks holding one or more Deposit Accounts. 
  
 “Diluted Receivable” means that portion (and only that
portion) of any Originator Receivable (a) which is reduced or canceled as a result of (i) any defective, rejected or returned merchandise or services or any failure by the Originator to deliver any merchandise or provide any services or otherwise to
perform under the underlying Contract, (ii) any change in the terms of or cancellation of, a Contract or any cash discount, discount for quick payment or other adjustment by the Originator which in any of the foregoing cases reduces the amount
payable by the Obligor on the related Originator Receivable (except any such change or cancellation resulting solely from the financial inability to pay or insolvency of the Obligor of such Originator Receivable) or (iii) any set-off by an Obligor
in respect of any claim by such Obligor as to amounts owed by it on the related Originator Receivable (whether such claim arises out of the same or a related transaction or an unrelated transaction), (b) the maturity of which is extended more than
once or for more than 30 days as permitted by Section 6.02(c), (c) which is, without duplication of the reductions or cancellations referred to in clause (a), subject to any specific dispute, offset, counterclaim or defense whatsoever (except the
discharge in bankruptcy of the Obligor thereof or any stay or defense arising solely as a result of applicable insolvency law affecting the Obligor) or (d) which is otherwise reduced by action or consent of the relevant Originator; provided
that Diluted Receivables are calculated assuming that all chargebacks are resolved in the Obligor’s favor. 
  
 “Dollar Equivalent” means, as of any date, the amount obtained by applying the rate for converting currency into Dollars at the 10:00
a.m. U.S. Federal Reserve spot rate of exchange for that currency. 
  
 “Dollars” or “$” means dollars in the lawful currency of the United States. 
  

 5 

 “E-Mail Seller Report” has the meaning specified in Section 6.02(g). 
  
 “Eligible Assignee” means Bombardier Capital Limited or any
of its Affiliates or any financial or other institution acceptable to the Operating Agent to which the Seller shall consent, such consent not to be unreasonably withheld or delayed, provided, that upon the occurrence of an Event of
Termination, the Seller’s consent shall not be required, unless the proposed assignee is a Competitor (but in such case Seller’s consent shall not be unreasonably withheld). 
  
 “Eligible Receivable” means, at any time, a Receivable: 
  
 (i) the Obligor of which has a billing address in the United
States (including, without limitation, Puerto Rico), Canada, Finland, Norway or Sweden; 
  
 (ii) the Obligor of which is not an Affiliate of any of the Originators; 
  
 (iii) which is not a Defaulted Receivable and the Obligor of which is not the Obligor of any Defaulted
Receivables which in the aggregate constitute 10% or more of the aggregate Outstanding Balance of all Receivables of such Obligor; 
  
 (iv) which, according to the Contract related thereto, is required to be paid in full either (A) within 90 days of the original billing
date therefor or (B) with respect to Pool Receivables originated by the Nordtrac Group, within not more than the lesser of (x) 180 days from the original billing date therefor and (y) the number of days from the original billing date therefor to and
including the first Business Day in the succeeding month of April; 
  
 (v) which is an obligation representing all or part of the sales price of merchandise or services within the meaning of Section 3(c)(5) of the Investment Company Act of 1940, as amended, and the nature of which is
such that its purchase with the proceeds of notes would constitute a “current transaction” within the meaning of Section 3(a)(3) of the Securities Act of 1933, as amended; 
  
 (vi) which (A) in the case of a Receivable originated by Bombardier Motor, is an “account” or
“chattel paper” within the meaning of Article 9 of the UCC of the applicable jurisdictions governing the perfection of the interest created by a Receivable Interest and (B) in the case of a Receivable originated by the Parent, is an
“account” or “chattel paper” within the meaning of the PPSA; 
  
 (vii) which (A) in the case of a Receivable originated by Bombardier Motor, is denominated and payable only in Dollars in the United
States, (B) in the case of a Receivable originated by the Parent, is denominated and payable only in Dollars or Canadian Dollars in the United States or Canada and (C) in the case of a Receivable originated by the Nordtrac Group, is denominated in
Swedish Kronor and payable only in Sweden, denominated in Norwegian Kroner and payable only in Norway or denominated in Euros and payable only in Finland; 
  

 6 

 (viii) which is in full force and effect and constitutes the legal, valid and binding
obligation of the Obligor of such Receivable and is not subject to any Adverse Claim other than Permitted Liens or any dispute, offset, counterclaim or defense whatsoever (except the potential discharge in bankruptcy of such Obligor), provided that
if a specific dispute, offset, counterclaim or defense has been asserted in an amount less than the Outstanding Balance of such Receivable, the portion of such Receivable in excess of such asserted amount shall continue to be an Eligible Receivable
(unless it fails to satisfy one of the other clauses of this definition of Eligible Receivable); 
  
 (ix) which, together with the invoice or purchase order related thereto, does not contravene in any material respect any laws, rules or
regulations applicable thereto (including, without limitation, laws, rules and regulations relating to usury, consumer protection, truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices
and privacy) and with respect to which none of the Seller, the relevant Originator or the Obligor is in violation of any such law, rule or regulation in any material respect; 
  
 (x) which arises under a Contract which does not contain a legally enforceable provision requiring the
Obligor thereunder to consent to the transfer, sale or assignment of the right to payment thereunder unless a written consent of the Obligor has been obtained; 
  

(xi) which was generated in the ordinary course of the relevant Originator’s business; 
  
 (xii) which has not been extended, rewritten or otherwise
modified from the original terms thereof except in accordance with Section 6.02(c) but nevertheless in all cases subject to being classified as a Diluted Receivable in accordance with the definition thereof; 
  
 (xiii) the transfer, sale or assignment of which does not
contravene any applicable law, rule or regulation; 
  
 (xiv) which satisfies all applicable requirements of the Credit and Collection Policy; 
  
 (xv) as to which, at or prior to the later of the date of this Agreement and the date five Business Days before such Receivable is
created, the Operating Agent has not notified the Seller that such Receivable is no longer acceptable for purchase by the Investors hereunder because (A) the relevant Obligor is in default under the terms of another financing arrangement with BCI or
BCL, (B) the relevant Obligor has applied for credit from BCI or BCL for an equipment or inventory based financing arrangement and BCI or BCL has declined to provide such credit in accordance with BCI’s or BCL’s customary credit policies
in effect at such time provided that this clause (B) shall not apply to (1) any refusal by BCI 

  

 7 

 
or BCL to increase the level of credit made available to an Obligor to which BCI or BCL is then already extending credit, (2) any determination by BCI or BCL
not to extend credit for any snowgrooming equipment financing arrangement due to insufficient manufacturer recourse being offered to support such arrangement or (3) any Obligors specifically listed on Schedule III hereto, (C) such Obligor is party
to one or more separate financing arrangements with BCI or BCL and is then in excess of the credit limit for such Obligor established by BCI or BCL for such Obligor in accordance with BCI’s or BCL’s customary credit policies in effect at
such time, provided that an Obligor which is a Johnson/Evinrude dealer shall not be deemed to have exceeded such credit limit to the extent attributable to Receivables arising from the sale of parts, clothing and accessories, or (D) the relevant
Obligor has been required to wind down or liquidate any separate financing arrangements with BCI or BCL, it being understood and agreed that from and after the time a Receivable is rendered ineligible by means of this clause (xv), all further
receivables of such Obligor will be deemed to be Excluded Receivables; 
  
 (xvi) as to which the relevant Originator has satisfied and fully performed all obligations required to be fulfilled by it (as evidenced by an invoice or other statement) and the amount of such Receivable (as
evidenced by said invoice or other statement) is not subject to any requirement that funds be reimbursed in the event of cancellation of the relevant Contract; 
  

(xvii) the related invoice of which complies with the notice and legend requirements of Section 6.02(k) hereof to the extent applicable
to such invoice; 
  
 (xviii) which is not a
“restocking” charge, order cancellation fee or other fee (other than Finance Charges) charged to Obligors; and 
  
 (xix) which is not a Receivable of the type described in clauses (g)(iii) or (j) of the definition of Excluded Receivable (without taking
account of the time periods referred to therein). 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
  
 “Euro” or “€” means the currency introduced at the start of the third stage of
European economic and monetary union pursuant to the Treaty establishing the European Community, as amended. 
  
 “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the Board of Governors of the Federal Reserve System,
as in effect from time to time. 
  
 “Eurodollar
Rate” means, for any Fixed Period, an interest rate per annum equal to (i) the interest rate per annum for deposits of Dollars for a maturity most nearly comparable to such Fixed Period which appears on page 3750 of the Dow Jones Telerate
Screen as of 11:00 A.M. (London time) on the second Business Day prior to the commencement of such Fixed 

  

 8 

 
Period or (ii) if the rate referred to in clause (i) above is not available on such day, the interest rate per annum for deposits of Dollars for a maturity
most nearly comparable to such Fixed Period which appears on the LIBO page of the Reuters Screen as of 11:00 A.M. (London time) on the second Business Day prior to the commencement of such Fixed Period or (iii) if the rates referred to in clauses
(i) and (ii) above are not available on such day or the rates quoted in accordance with clauses (i) or (ii) on said Screens are for interest periods of durations that are not comparable to such Fixed Period, the interest rate per annum equal to the
rate per annum at which Citibank, N.A. offers deposits of Dollars in the interbank market at or about 10:00 A.M. (New York City time) on the second Business Day prior to the commencement of such Fixed Period in an amount substantially equal to the
Capital associated with such Fixed Period, for delivery on the first day of such Fixed Period for the number of days comprised therein. 
  
 “Eurodollar Rate Reserve Percentage” of any Investor for any Fixed Period in respect of which Yield is computed by reference to the
Eurodollar Rate means the reserve percentage applicable two Business Days before the first day of such Fixed Period under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) (or if more
than one such percentage shall be applicable, the daily average of such percentages for those days in such Fixed Period during which any such percentage shall be so applicable) for determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve requirement) for such Investor with respect to liabilities or assets consisting of or including Eurocurrency Liabilities (or with respect to any other category of liabilities that
includes deposits by reference to which the interest rate on Eurocurrency Liabilities is determined) having a term equal to such Fixed Period. 
  
 “Event of Termination” has the meaning specified in Section 7.01. 
  
 “Excluded Receivable” means any of the following: (a) a receivable due to any Originator from any Person
which, at the time such receivable is invoiced, is an Affiliate of any Originator; (b) a receivable due from an Obligor who, at the time such receivable arises, also sells goods and/or services to the relevant Originator, unless such Obligor has, at
or prior to the time such receivable arises, waived in writing any right to setoff amounts due from the relevant Originator against such receivable due to such Originator; (c) a receivable which is payable in a currency other than Canadian Dollars,
Dollars, Swedish Kronor, Norwegian Kroner or Euros; (d) a receivable which if it were an Originator Receivable would be a Defaulted Receivable on the date of this Agreement; (e) a receivable which arises under a Contract which contains a provision
prohibiting the transfer, sale of assignment of the relevant Originator’s right to receive payments thereunder or is subject to a statute, rule or regulation requiring the Obligor thereunder to consent to the transfer, sale or assignment of the
rights of the relevant Originator to receive payments thereunder, unless consent to the sale contemplated hereby has been obtained; (f) any Receivable containing a confidentiality provision which would restrict performance contemplated by this
Agreement, where an appropriate consent or waiver thereunder has not been obtained; (g) any receivable owing (i) by the Federal Government of Canada or any federal agency or federal Crown corporation, (ii) by the Federal Government of the United
States, unless the relevant Originator has, at its expense, to the Operating Agent’s satisfaction, taken all steps necessary to comply with the Federal Assignment of Claims Act of 1940, as amended, and any other applicable law necessary to
effect the transfer of such receivable to the Seller and (iii) by any other Governmental Body, unless the relevant Originator, at its expense, has obtained, to the 

  

 9 

 
satisfaction of the Operating Agent, all consents required by the terms of the relevant Contract with such Governmental Body (whether or not such consent
requirement is enforceable) and otherwise complied with any applicable law necessary to effect the transfer of such receivable to the Seller hereunder so long as the Originator can separately track and segregate such receivable with respect to
consent and compliance requirements, provided that any such receivable originated after sixty (60) days from the date of this Agreement whether or not separately tracked and segregable shall be an Excluded Receivable; (h) any Receivable under a
Contract in respect of which a specific dispute has arisen as of the time of transfer; (i) in the case of any Receivable originated by the Parent or Bombardier Motor, the Obligor has a billing address outside the United States or Canada and the
Receivable is payable in a currency other than Canadian Dollars or Dollars; (j) any receivable to the extent it is paid immediately against presentation of the relevant invoice by a charge against the Obligor’s credit card, so long as the
Originator is able to separately track and segregate such receivable, provided that any such credit card receivable originated after ninety (90) days from the date of this Agreement, whether or not separately tracked and segregable, shall be an
Excluded Receivable, (k) any receivable that is paid by deduction against a cash advance previously paid to the relevant Originator, (1) any Receivable of a member of the Nordtrac Group where the Obligor is a natural person, sole proprietorship or
general partnership, unless otherwise approved by the Operating Agent, acting reasonably or (m) any receivable which is subject to any dealer floorplanning financing arrangement. 
  
 “Facility Termination Date” means the earliest of (a) June [•], 2005 or (b) the date determined
pursuant to Section 7.01 or (c) the date the Purchase Limit reduces to zero pursuant to Section 2.0 l(b). 
  
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Operating Agent from three Federal funds brokers of
recognized standing selected by it. 
  
 “Finance
Charge” means, with respect to any Receivable, any interest or charges owing by an Obligor in connection with such Receivable not having been paid on the due date thereof. 
  
 “Fiscal Month” means a period beginning at the close of business on the last Friday of any calendar month
and ending at the close of business on the last Friday of the succeeding calendar month, provided that if any such Friday is not a Business Day, such period shall begin and/or end (as applicable) at the close of business on the preceding Business
Day and provided further that in any calendar month which is also a quarter end, the close of business on the last Business Day of such month rather than the last Friday of such month shall be used to begin and end the relevant Fiscal Months.

  
 “Fixed Period” means, with respect to any
Receivable Interest, each successive period of one month, each such Fixed Period for such Receivable Interest to commence on the 

  

 10 

 
last day of the immediately preceding Fixed Period for such Receivable Interest (or, if there is no such Fixed Period, on the date of purchase of such
Receivable Interest); provided, however, that: 
  
 (i) any Fixed Period which would otherwise end on a day which is not a Business Day shall be extended to the next succeeding Business Day (provided, however, if Yield in respect of such Fixed Period is
computed by reference to the Eurodollar Rate, and such Fixed Period would otherwise end on a day which is not a Business Day, and there is no subsequent Business Day in the same calendar month as such day, such Fixed Period shall end on the next
preceding Business Day); and 
  
 (ii) in the case
of any Fixed Period for any Receivable Interest which commences before the Termination Date for such Receivable Interest and would otherwise end on a date occurring after such Termination Date, such Fixed Period shall end on such Termination Date
and the duration of each Fixed Period which commences on or after the Termination Date for such Receivable Interest shall be of such duration (including, without limitation, one day) as shall be selected by the Operating Agent or, in the absence of
any such selection, each period of thirty days from the last day of the immediately preceding Fixed Period. 
  
 “Funds Transfer Letter” means a letter in substantially the form of Annex E hereto executed and delivered by the Seller to the Operating
Agent, as the same may be amended or restated in accordance with the terms thereof. 
  
 “Governmental Body” means any federal, state, provincial, regional, municipal, local or other governmental or administrative authority, bureau, agency or regulatory body. 
  
 “GST” means all goods and services tax payable under Part IX
of the Excise Tax Act (Canada), all QST and all harmonized sales tax in the Provinces of Nova Scotia, Newfoundland and New Brunswick payable under the Excise Tax Act (Canada), as such statutes may be amended, modified, supplemented or
replaced from time to time, including any successor statute. 
  
 “Incipient Bankruptcy Event of Termination” means an event under Section 7.0l(g) which but for notice or lapse of time or both would constitute an Event of Termination. 
  
 “Incipient Event of Termination” means an event that but for
notice or lapse of time or both would constitute an Event of Termination. 
  
 “Indebtedness for Borrowed Money” means any obligation (whether present or future, actual or contingent, secured or unsecured, as principal, surety or otherwise) of a Person for the payment or
repayment of money borrowed or raised (whether or not for cash consideration), by whatever means, including obligations under or in respect of (a) deposits and financial leasing; (b) any letter of credit securing financial accommodation; (c)
promissory notes, certificates of deposit or like instruments (whether negotiable or otherwise); (d) acceptance credit, note purchase or bill acceptance or discounting facilities; or (e) like arrangements entered 

  

 11 

 
into by any Person in order to enable it to finance its operations or capital requirements; but excluding reimbursement obligations in respect of advance
payments made by or on behalf of third party customers in relation to purchase orders of the Parent or to one of its Subsidiaries. 
  
 “Indemnified Party” has the meaning specified in Section 9.01. 
  
 “Investor” means BCI and each Eligible Assignee that shall become a party to this Agreement pursuant to
Section 10.03. 
  
 “Investor Commitment” of any
Investor means, (a) with respect to BCI, $115,000,000 or such amount as reduced or increased by any Assignment and Acceptance entered into between BCI and other Investors; or (b) with respect to an Investor that has entered into an Assignment and
Acceptance, the amount set forth therein as such Investor’s Investor Commitment, in each case as such amount may be reduced or increased by an Assignment and Acceptance entered into between such Investor and an Eligible Assignee, and as may be
further reduced ( or terminated) pursuant to the next sentence. Any reduction (or termination) of the Purchase Limit pursuant to the terms of this Agreement shall reduce ratably (or terminate) each Investor’s Investor Commitment. 
  
 “Liquidation Day” means, for any Receivable Interest, (i)
each day during a Fixed Period for such Receivable Interest on which the conditions set forth in Section 3.02 were not satisfied or waived on the date of the relevant purchase or reinvestment, and (ii) each day which occurs on or after the
Termination Date for such Receivable Interest. 
  
 “Liquidation Fee” means, for any Fixed Period for which Yield is computed by reference to the Eurodollar Rate and a reduction of Capital is made for any reason on any day other than the last day of such Fixed Period, the
amount, if any, by which (A) the additional Yield (calculated without taking into account any Liquidation Fee or any shortened duration of such Fixed Period pursuant to clause (iii) of the definition thereof but excluding margin) which would have
accrued from the date of such repayment to the last day of such Fixed Period on the reductions of Capital of the Receivable Interest relating to such Fixed Period had such reductions remained as Capital, exceeds (B) the income, if any, received by
the Investors which hold such Receivable Interest from the investment of the proceeds of such reductions of Capital, it being understood and agreed that each relevant Investor agrees to take commercially reasonable measures, consistent with its
customary practices to minimize the amount of such Liquidation Fee. 
  
 “Maximum Purchaser Interest” means 85%. 
  
 “Monthly Seller Report” means a report in substantially the form of Annex A-l hereto and containing such additional information reasonably available to the Parent Servicer as the Operating Agent may reasonably request from
time to time, furnished by the Parent Servicer to the Operating Agent pursuant to Section 6.02(g). Without limiting the foregoing, the Seller Report shall include a measure of the level of Excluded Receivables during the relevant Fiscal Month,
broken down by Originator, as shall be reasonably satisfactory to the Operating Agent. 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  

 12 

 “Net Receivables Pool Balance” means at any time the Outstanding Balance of Eligible
Receivables then in the Receivables Pool reduced by the sum of (without duplication) (i) the aggregate amount by which the Outstanding Balance of Eligible Receivables of each Obligor then in the Receivables Pool exceeds the Concentration Limit for
such Obligor, (ii) the aggregate amount by which the Outstanding Balance of the Eligible Receivables then in the Receivables Pool of all Obligors of the Nordtrac Group and/or all Obligors of the Parent and Bombardier Motor exceeds the relevant
Concentration Limit for such Obligors; (iii) the aggregate amount of Collections (expressed as the Dollar Equivalent, if any such amount is in Canadian Dollars, Swedish Kronor, Norwegian Kroner or Euros) which have been received by the Servicers at
such time for payment on account of any Eligible Receivables, the Obligor of which has not been identified, and (iv) the aggregate Outstanding Balance of all Eligible Receivables in respect of which any credit memo issued by the Originator or the
Seller is outstanding at such time to the extent deemed Collections have not been paid pursuant to Section 2.04(e). 
  
 “Nordtrac Group” means, collectively, Bombardier Nordtrac AB, Bombardier Nordtrac AS and Bombardier-Nordtrac Oy. 
  
 “Norwegian Kroner” means the lawful currency of Norway.

  
 “Obligor” means a Person obligated to make
payments pursuant to a Contract. 
  
 “Operating
Agent’s Account” means the special account (account number 3752133837 for Dollars) of the Operating Agent named Bombardier-Capital Inventory Finance Division maintained at the office of the Bank of America in Dallas, TX ABA
#111-000-012. 
  
 “Originator” means each of
Bombardier Motor, Bombardier Nordtrac AB, Bombardier Nordtrac AS, Bombardier-Nordtrac Oy and the Parent. 
  
 “Originator Purchase Agreement” means the Purchase Agreement dated as of the date of this Agreement among the Originators, as sellers and
servicers, and the Seller, as purchaser. 
  
 “Originator
Receivable” means: 
  

	 	(a)	in the case of Bombardier Motor, all existing and hereafter arising indebtedness of an Obligor (including, without limitation, a claim, account, book debt, receivable, instrument,
installment sales contract, chattel paper or general intangible) to Bombardier Motor under a Contract created, generated or arising in the ordinary course of the business of Bombardier Motor of selling or providing goods and services under the name
of or in connection with its activities as conducted through its Utility Vehicles Division or its Outboard Engine Division, including the right to the payment of Finance Charges and other obligations of such Obligor with respect thereto;

  

 13 

	 	(b)	in the case of an Originator that is a member of the Nordtrac Group, all existing and hereafter arising indebtedness of an Obligor (including, without limitation, a claim, account,
book debt, receivable, instrument, installment sales contract, chattel paper or general intangible) to such Originator under a Contract created, generated or arising in the ordinary course of the business of the Originator of selling or providing
goods and services, including the right to the payment of Finance Charges and other obligations of such Obligor with respect thereto; 

  

	 	(c)	in the case of the Parent, 

  

	 	(i)	all existing and hereafter arising indebtedness of an Obligor (including, without limitation, a claim, account, book debt, receivable, instrument, installment sales contract,
chattel paper or general intangible) to the Parent under a Contract: 

  

	 	(A)	(x) created, generated or arising in the ordinary course of the business of Bombardier Inc. of selling or providing goods and services under the name of or in connection with the
activities conducted through its Utility Vehicles Division or its Outboard Engine Division and (y) acquired by the Parent (or any predecessor of the Parent) from Bombardier Inc.; or 

  

	 	(B)	created, generated or arising in the ordinary course of the business of the Parent of selling or providing goods and services under the name of or in connection with its activities
as conducted through its Utility Vehicles Division or its Outboard Engine Division; or 

  

	 	(ii)	all existing and hereafter arising indebtedness of John Deere Inc. (including, without limitation, a claim, account, book debt, receivable, instrument, installment sales contract,
chattel paper or general intangible) to the Parent under a Contract: 

  

	 	(A)	(x) between John Deere Inc. and Bombardier Inc. created, generated or arising in the ordinary course of the business of Bombardier Inc. of selling or providing goods and services to
John Deere Inc. and (y) acquired by the Parent (or any predecessor of the Parent) from Bombardier Inc.; and 

  

	 	(B)	 between John Deere Inc. and the Parent created, generated or arising in the ordinary course of the business of the Parent of selling or providing goods and services
to John Deere Inc.; and 

  

 14 

	 	 
in the case of (i) and (ii), including the right to the payment of all obligations of such Obligor with respect thereto but excluding Finance Charges payable
under the related Contract but including PST and GST payable under the related Contract; 

  
 provided, however, that the term “Receivable” shall not include any Excluded Receivable. For greater clarity, it is understood and agreed that any distinct new line of business added to any of
the businesses of an Originator referenced in the prior sentence after the date hereof shall not give rise to an Originator Receivable, unless otherwise agreed in writing by the Originators, the Seller and the Operating Agent and all filings
considered necessary or advisable in the reasonable judgment of the Operating Agent or its assignee are made. 
  
 “Other Companies” means the Originators, the Parent and all of their Subsidiaries except the Seller. 
  
 “Outstanding Balance” of any Receivable at any time means
the then outstanding principal balance thereof plus Finance Charges; provided, that to the extent that the amount of any Receivables is, under the terms of the applicable Contract, expressed in Canadian Dollars, Swedish Kronor, Norwegian
Kroner or Euros, such amount for the purposes of this definition shall be the Dollar Equivalent thereof at the relevant time. GST, PST, VAT and United States sales taxes which may be billed in connection with a Receivable are included in the
Outstanding Balance. Finance Charges which may be billed in connection with a Receivable originated by the Parent are not included in the Outstanding Balance. 
  

“Parent” means Bombardier Recreational Products Inc., a Canadian corporation. 
  
 “Parent Servicer” means at any time the Servicer then
authorized pursuant to Section 6.01 to perform the duties of the Parent Servicer. 
  
 “Percentage” of any Investor means, (a) with respect to BCI, the percentage set forth on the signature page to this Agreement, or such amount as reduced or increased by any Assignment and Acceptance
entered into with an Eligible Assignee, or (b) with respect to an Investor that has entered into an Assignment and Acceptance, the amount set forth therein as such Investor’s Percentage, or such amount as reduced or increased by an Assignment
and Acceptance entered into between such Investor and an Eligible Assignee. 
  
 “Permitted Liens” means: 
  
 (a) liens for taxes (including withholding taxes) and source deductions imposed by statutes, in each case, which are not yet due and delinquent or are being contested in good faith and for which the Person owing such
taxes or source deductions has taken an adequate reserve in accordance with applicable generally accepted accounting principles; 
  
 (b) with respect to the Parent only, liens arising out of judgements or awards with respect to which appeals or other proceedings for
review are being 

  

 15 

 
prosecuted in good faith and for the payment of which adequate reserves have been provided as required by applicable generally accepted accounting
principles. 
  
 “Person” means an individual,
partnership, corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
  
 “Pool Receivable” means a Receivable in the Receivables
Pool. 
  
 “PPSA” means, with respect to any
jurisdiction in Canada, the personal property security or similar legislation applicable in such jurisdiction, including with respect to the jurisdictions of Canada other than Quebec, the Personal Property Security Act applicable in such
jurisdictions, in each case as from time to time in effect. 
  
 “PST” means all taxes payable under the Retail Sales Tax Act (Ontario) or any similar statute of another jurisdiction of Canada, other than GST and QST. 
  
 “Purchase Limit” means $115,000,000, as such amount may be reduced pursuant to Section 2.0l(b). References
to the unused portion of the Purchase Limit shall mean, at any time, the Purchase Limit, as then reduced pursuant to Section 2.01 (b), minus the then outstanding Capital of Receivable Interests under this Agreement. 
  
 “QST” means the tax payable under the Act Respecting the
Quebec Sales Tax, R.S.Q. c.T-01, as amended. 
  
 “Receivable” means any account receivable of the Seller resulting from the provision or sale of goods or services by the Seller or any Originator in the normal course of business including any Originator Receivable which
has been acquired by the Seller from the relevant Originator by purchase pursuant to the Originator Purchase Agreement. 
  
 “Receivable Interest” means, at any time, an undivided percentage ownership interest in (i) all then outstanding Pool Receivables arising
prior to the time of the most recent computation or recomputation of such undivided percentage interest pursuant to Section 2.03, (ii) all Related Security with respect to such Pool Receivables, and (iii) all Collections with respect to, and other
proceeds of, such Pool Receivables. Such undivided percentage interest shall be computed as a fraction the numerator of which shall be the Capital of such Receivable Interest at the time of computation and the denominator of which shall be the sum
of (a) the Net Receivables Pool Balance, (b) the Collections on deposit in the Deposit Accounts (less the portion of Collections held pursuant to Section 2.04(b)(i)) at the time of computation and (c) any cash held in the Deposit Accounts as a
contribution to the capital of the Seller by Bombardier Motor. Each Receivable Interest shall be determined from time to time pursuant to the provisions of Section 2.03. 
  
 “Receivables Pool” means at any time the aggregation of each then outstanding Receivable. 
  

 16 

 “Related Security” means with respect to any Receivable 
  
 (i) all of the Seller’s interest in any goods
(including returned goods) relating to any sale giving rise to such Receivable; 
  
 (ii) all security interests or Adverse Claims and property subject thereto from time to time purporting to secure payment of such
Receivable, whether pursuant to the Contract related to such Receivable or otherwise, together with all financing statements or registration applications filed against an Obligor describing any collateral securing such Receivable; 
  
 (iii) all guaranties, insurance, letters of credit and other
agreements or arrangements (including rights under credit card agreements) of whatever character from time to time supporting or securing payment of such Receivable whether pursuant to the Contract related to such Receivable or otherwise; and

  
 (iv) the related invoices and purchase orders
issued pursuant to a related Contract and all other books, records and other information (including, without limitation, computer programs, tapes, discs, punch cards, data processing software and related property and rights) relating to such
Receivable and the related Obligor. 
  
 “S&P”
means Standard and Poor’s, a division of The McGraw-Hill Companies, Inc. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Secured Obligations” has the meaning given in Section 2.11 hereof. 
  
 “Seller Report” means the Monthly Seller Report and/or the Weekly Seller Report. 
  
 “Servicers” means at any time the Person or Persons then
authorized pursuant to Section 6.01 to administer and collect Pool Receivables, including the Parent Servicer. 
  
 “Servicer Bankruptcy Event” means a proceeding of the type described in Section 7.01(g) instituted by or against any Servicer (without
giving effect to any grace period provided therein). 
  
 “Servicer Fee” has the meaning specified in Section 2.05(a). 
  
 “Settlement Date” for any Receivable Interest means the last day of each Fixed Period for such Receivable Interest. 
  
 “Subsidiary” means any corporation or other entity or Person of which securities having ordinary voting
power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Seller or one or 

  

 17 

 
more Originators, as the case may be, or one or more Subsidiaries, or by the Seller or one or more Originators, as the case may be, and one or more
Subsidiaries. 
  
 “Swedish Kronor” means the
lawful currency of Sweden. 
  
 “Tangible Net
Worth” means at any time the excess of (i) the sum of (a) the product of (x) 100% minus the Discount (as such term is defined in the Originator Purchase Agreement) multiplied by (y) the Outstanding Balance of all Receivables other than
Defaulted Receivables plus (b) cash and cash equivalents of the Seller, minus (ii) the sum of (a) Capital plus (b) the Deferred Purchase Price. 
  
 “Termination Date” for any Receivable Interest means, in the case of a Receivable Interest owned by an Investor, the earlier of (i) the
Business Day which the Seller so designates by notice to the Operating Agent at least one Business Day in advance for such Receivable Interest and (ii) the Facility Termination Date. 
  
 “Transaction Document” means any of this Agreement, the Originator Purchase Agreement, the Deposit Account
Agreements, the Undertakings, the Letter Agreement referred to in Section 2.05(b) and all other agreements entered into (i) by an Originator, the Seller or an Originator, as Servicer with or in favor of any one or more of the Seller, the Operating
Agent or the Investors or (ii) among the Originators and the Seller, in each case relating to the transactions referred to in this Agreement. 
  
 “UCC” means the Uniform Commercial Code as from time to time in effect in the specified jurisdiction. 
  
 “Undertakings” means each of the Undertaking Agreements
dated as of the date hereof made by (a) the Parent in favor of the Seller and relating to obligations of Bombardier Motor and the Nordtrac Group and (b) Bombardier Motor in favor of the Seller and relating to the obligations of the Nordtrac Group,
substantially in the form of Annexes F-l and F-2, respectively, hereto. 
  
 “VAT” means any value added tax payable on Receivables originated by the Nordtrac Group. 
  
 “Weekly Seller Report” means a report substantially in the form of Annex A-2 hereto and containing such additional information reasonably
available to the Parent Servicer as the Operating Agent may reasonably request from time to time, furnished by the Parent Servicer to the Operating Agent pursuant to Section 6.02(g). 
  

 18 

 “Yield” means for each Receivable Interest for each Fixed Period, for each day during
such Fixed Period, 
  

											
	 	 	 	 	AR x C x	 	ED	 	+LF	 	 
	 	 	 	 	 	360	 	 	 
	 where:
	 	 	 	 	 	 	 	 	 	 
	 AR
	 	 =
	 	the Applicable Rate for such Receivable Interest for such Fixed Period
			
	 C
	 	 =
	 	the Capital of such Receivable Interest during such Fixed Period
			
	 ED
	 	 =
	 	the actual number of days elapsed during such Fixed Period
			
	 LF
	 	 =
	 	the Liquidation Fee, if any, for such Receivable Interest for such Fixed Period

  
 provided that no provision of
this Agreement shall require the payment or permit the collection of Yield in excess of the maximum permitted by applicable law; and provided further that Yield for any Receivable Interest shall not be considered paid by any
distribution to the extent that at any time all or a portion of such distribution is rescinded or must otherwise be returned for any reason. 
  
 SECTION 1.02. Other Terms. Subject to the following sentence, all accounting terms not specifically defined herein shall be construed in accordance
with U.S. generally accepted accounting principles. All terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article 9. References to any agreement or document herein
are to such agreement or document as amended, modified or restated from time to time in accordance with its terms, whether or not so specified. 
  
 ARTICLE II 
  
 AMOUNTS AND TERMS OF THE PURCHASES 
  
 SECTION 2.01. Purchase Facility. (a) On the terms and conditions hereinafter set forth, the Investors shall, ratably in accordance with their respective Investor Commitments, purchase Receivable Interests from
the Seller from time to time during the period from the date hereof to the Facility Termination Date. Under no circumstances shall the Investor be obligated to make any such purchase if after giving effect to such purchase the aggregate outstanding
Capital of Receivable Interests would exceed the Purchase Limit. 
  
 (b) The Seller may at any time, upon at least five Business Days’ notice to the Operating Agent, terminate the facility provided for in this Agreement in whole or, from time to time, reduce in part the unused portion of the Purchase
Limit; provided that each partial reduction shall be in the amount of at least $1,000,000 or an integral multiple thereof. 
  
 (c) The Operating Agent, on behalf of the Investors which own Receivable Interests, shall have the Collections attributable to such Receivable Interests
automatically 

  

 19 

 
reinvested pursuant to Section 2.04 in additional undivided percentage interests in the Pool Receivables resulting in a recomputation of such Receivable
Interests pursuant to Section 2.03. 
  
 (d) Provided no Event of
Termination or Incipient Event of Termination is continuing or would result, upon the request of the Seller, the Operating Agent shall remove an Originator (without releasing such Originator from any accrued obligations hereunder) and all thereafter
arising Originator Receivables originated by such Originator from this Agreement and the other Transaction Documents; provided that the Nordtrac Group shall only be removed as an entirety and shall constitute a single Originator for purposes
of this Section 2.01(d) and provided further that, upon the removal of such Originator from this Agreement and the other Transaction Documents, the Operating Agent on behalf of the Investors shall have the right as a condition to such removal to
require that all Receivables in the Receivables Pool originated by such Originator shall be simultaneously repurchased by any of the remaining Originators or its designee at a purchase price equal to the fair value (as agreed by such Originator and
the Operating Agent) of all Eligible Receivables originated by such removed Originator then in the Receivables Pool but not less than the sum of the Receivable Interests expressed as a percentage as of the date of removal multiplied by the
Outstanding Balance of all Eligible Receivables originated by such removed Originator then in the Receivables Pool, plus, in either case, all accrued but unpaid Yield on Capital respecting such Eligible Receivables. 
  
 SECTION 2.02. Making Purchases. (a) Each purchase of a Receivable
Interest by the Investors shall be made (i) on at least one Business Day’s notice, if Yield for such Receivable Interest is to be calculated based on the Alternate Base Rate, and (ii) on at least three Business Days’ notice, if Yield for
such Receivable Interest is to be calculated based on the Eurodollar Rate, in each case from the Seller to the Operating Agent. In no event shall more than one purchase be made in any one calendar month. Purchases after the initial Purchase shall
occur only on the first Business Day following delivery of the Monthly Seller Report pursuant to Section 6.02(g) for the prior reporting period. Each such notice of a purchase shall specify (i) the amount requested to be paid to the Seller (such
amount, which shall not be an amount between zero and less than $1,000,000, being referred to herein as the initial “Capital” of the Receivable Interest then being purchased) and (ii) the date of such purchase. 
  
 The Operating Agent shall promptly send notice of the proposed purchase to
all of the Investors concurrently by telecopier, telex or cable specifying the date of such purchase, each Investor’s Percentage multiplied by the aggregate amount of Capital of Receivable Interest being purchased and whether the Yield for the
Fixed Period for such Receivable Interest is calculated based on the Eurodollar Rate (which may be selected only if such notice is given at least three Business Days prior to the purchase date) or the Alternate Base Rate. 
  
 (b) On the date of each such purchase of a Receivable Interest, the Investors
shall, upon satisfaction of the applicable conditions set forth in Article III, make available to the Seller in same day funds an amount equal to the initial Capital of such Receivable Interest, at the account set forth in the Funds Transfer Letter.

  
 (c) Effective on the date of each purchase pursuant to this
Section 2.02 and each reinvestment pursuant to Section 2.04, the Seller hereby sells and assigns to the Operating Agent, for the benefit of the Investors, an undivided percentage ownership interest, to the extent 

  

 20 

 
of the Receivable Interest then being purchased, in each Pool Receivable then existing and in the Related Security and Collections with respect thereto.

  
 (d) Notwithstanding the foregoing, an Investor shall not be
obligated to make purchases under this Section 2.02 at any time in an amount which would exceed such Investor’s Investor Commitment less such Investor’s ratable share of the aggregate outstanding Capital, after giving effect to any
reductions of the Capital to be made on the date of such purchase (whether from the distribution of Collections or from the proceeds of purchases by the Investors). Each Investor’s obligation shall be several, such that the failure of any
Investor to make available to the Seller any funds in connection with any purchase shall not relieve any other Investor of its obligation, if any, hereunder to make funds available on the date of such purchase, but no Investor shall be responsible
for the failure of any other Investor to make funds available in connection with any purchase. 
  
 SECTION 2.03. Receivable Interest Computation. Each Receivable Interest shall be initially computed on its date of purchase. Thereafter until the Termination Date for such Receivable Interest, such Receivable
Interest shall be recomputed by the Parent Servicer on each day on which funds are withdrawn from the Deposit Accounts for reinvestment in Receivables pursuant to Section 2.04(b)(ii) and Section 2.04(c). Any Receivable Interest shall be computed as
of the day immediately preceding the Termination Date for such Receivable Interest and shall thereafter remain constant; provided, however, that from and after the date on which the Termination Date shall have occurred for all
Receivable Interests and until each Receivable Interest becomes zero in accordance with the next sentence, each Receivable Interest shall be calculated as the percentage equivalent of a fraction the numerator of which is the percentage representing
such Receivable Interest immediately prior to such date and the denominator of which is the sum of the percentages representing all Receivable Interests which were outstanding immediately prior to such date. Each Receivable Interest shall become
zero when Capital thereof and Yield thereon shall have been paid in full, and all other amounts owed by the Seller hereunder to the Investors or the Operating Agent are paid and the Parent Servicer shall have received the accrued Servicer Fee
thereon. 
  
 SECTION 2.04. Settlement Procedures. (a)
Collection of the Pool Receivables shall be administered by the Servicers, in accordance with the terms of Article VI of this Agreement. The Seller shall provide to the Servicers (if other than the Seller) on a timely basis all information needed
for such administration, including notice of the occurrence of any Liquidation Day and current computations of each Receivable Interest. 
  
 (b) The Parent Servicer shall allocate Collections on deposit in the Deposit Accounts in the following order of priority: 
  
 (i) with respect to each Receivable Interest, the Parent
Servicer shall hold in trust and segregate (by retention in the relevant Deposit Account) for the Investors that hold such Receivable Interest, out of the percentage of such Collections represented by such Receivable Interest, an amount equal to the
Yield, Servicer Fee and the BCI Subservicer Fee accrued through the date of allocation for such Receivable Interest and not previously set aside; 
  

 21 

 (ii) with respect to each Receivable Interest, if no Liquidation Day for such Receivable
Interest has occurred and is then continuing, the Parent Servicer shall apply the percentage of such Collections represented by such Receivable Interest (w) to reinvest with the Seller on behalf of the Investors that hold such Receivable Interest by
recomputation of such Receivable Interest pursuant to Section 2.03, (x) after accounting for such reinvestment, as may be required to prevent the aggregate Receivable Interest from exceeding the Maximum Purchaser Interest, to reduce the outstanding
Capital of such Receivable Interest, (y) in any combination of the allocations set forth in clauses (w) and (x), or (z) to further reduce the outstanding Capital of such Receivable Interest (after giving effect to clauses (w), (x) and (y));

  
 (iii) if a Liquidation Day for any one or
more Receivable Interests has occurred and is continuing, apply to the outstanding Capital of each such Receivable Interest and to any other amounts payable by the Seller hereunder (x) if such day is a Liquidation Day for less than all of the
Receivable Interests, the percentage of such Collections represented by such Receivable Interests, and (y) if such day is a Liquidation Day for all of the Receivable Interests, all of the remaining Collections (but not in excess of the Capital of
such Receivable Interests and any other amounts payable by the Seller hereunder); and 
  
 (iv) during such times as amounts are permitted to be reinvested in accordance with the foregoing subsection (ii) and Section 2.04(c),
release to the Seller for its own account any Collections remaining after application of subsection (i) and (ii) above and the distribution of such amounts pursuant to Section 2.04(c). 
  
 The Parent Servicer shall be responsible for the application of all Collections received in any Deposit Account in
accordance with the foregoing subsections (i) through (iv) on a Dollar Equivalent basis but may accomplish such application itself or jointly with one or more of the other Servicers. 
  
 (c) The Parent Servicer shall deposit into the Operating Agent’s Account, on the Settlement Date for each Receivable
Interest, Collections held for the Investors that relate to such Receivable Interest pursuant to Section 2.04(b)(i) in the amount of accrued Yield, Servicer Fee and BCI Subservicer Fee through the most recent completed Fixed Period ending on or
prior to such Settlement Date. The Parent Servicer shall make withdrawals from the Deposit Accounts pursuant to the allocations set forth in Sections 2.04(b)(ii), (iii) or (iv) on each Settlement Date and otherwise at its discretion but no less
frequently then weekly and shall deposit into the Operating Agent’s Account on the date of such withdrawal all amounts so withdrawn and not either applied to reinvestment in the Receivables or released to the Seller to the extent permitted by
Section 2.04(b)(iv). No withdrawal from the Deposit Accounts for reinvestment in Receivables and no release pursuant to Section 2.04(b)(iv) may occur if after giving effect to such reinvestment or release the sum of the Receivable Interests, each
expressed as a percentage, would be greater than the Maximum Purchaser Interest or an Event of Termination would be continuing. The Parent Servicer shall deposit any amounts paid pursuant to Section 2.0l(d) into the Operating Agent’s Account.

  

 22 

 (d) Upon receipt of funds deposited into the Operating Agent’s Account, the Operating Agent shall
distribute them as follows: 
  
 (i) if the date
of distribution is a Settlement Date, first, to the Investors in payment in full of all accrued Yield, second to BCI in payment in full of all accrued BCI Subservicer Fee, third to the Parent Servicer in payment in full of all accrued Servicer Fee,
fourth to such Investors in reduction to zero of all Capital, and fifth to such Investors or the Operating Agent in payment of any other amounts owed by the Seller hereunder; and 
  
 (ii) if the date of distribution is not a Settlement Date, first, to the Investors in payment in full of
such portion, if any, of accrued Yield as the Operating Agent in its discretion shall deem, second to such Investors in reduction to zero of all Capital, and third to such Investors or the Operating Agent in payment of any other amounts (including
accrued and unpaid Yield) owed by the Seller hereunder. 
  
 After
the Capital, Yield and BCI Subservicer Fee with respect to a Receivable Interest, and any other amounts payable by the Seller to the Investors or the Operating Agent hereunder, have been paid in full and any contingent obligations of the Operating
Agent under any Deposit Account Agreement have been released, all additional Collections with respect to such Receivable Interest shall be paid to the Seller for its own account. 
  
 (e) For the purposes of this Section 2.04: 
  
 (i) if on any day the Outstanding Balance of any Pool Receivable becomes (in whole or in part) a Diluted
Receivable, the Seller shall be deemed to have received on such day a Collection of such Pool Receivable in the amount of such Diluted Receivable; 
  
 (ii) if on any day any of the representations or warranties contained in Section 4.0l(h) is no longer true with respect to any Pool
Receivable, the Seller shall be deemed to have received on such day a Collection of such Pool Receivable in full; 
  
 (iii) except as provided in subsection (i) or (ii) of this Section 2.04(e), or as otherwise required by applicable law or the relevant
Contract, all Collections received from an Obligor of any Receivables shall be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting with the oldest such Receivable, unless such Obligor designates its
payment for application to specific Receivables; and 
  
 (iv) if and to the extent the Operating Agent or the Investors shall be required for any reason to pay over to an Obligor any amount received on its behalf hereunder, such amount shall be deemed not to have been so received but rather to
have been retained by the Seller and, accordingly, the Operating Agent or the Investors, as the case may be, shall have a claim against the Seller for such 

  

 23 

 
amount, payable when and to the extent that any distribution from or on behalf of such Obligor is made in respect thereof; 
  
 provided, that, so long as an Event of Termination has not occurred and is not
continuing, the Seller shall have no obligation to make any payment in respect of deemed Collections so long as the sum of the Receivable Interests, each expressed as a percentage, shall continue to be less than or equal to the Maximum Purchaser
Interest. 
  
 (f) All amounts payable by the Seller or any
Servicer under this Agreement to the Operating Agent for its own account or for the account of the Investors shall be paid in Dollars. The purchase price for Receivable Interests and all other amounts payable by the Investors under this Agreement
shall be payable in Dollars. 
  
 (g) While this Agreement is in
effect, the settlement procedures set forth in Section 2.04(c) shall prevail over the first sentence of Section 2.03 of the Originator Purchase Agreement. 
  
 SECTION 2.05. Fees, (a) The Operating Agent as agent for each Investor shall pay to the Servicers (other than the Parent Servicer) a single
aggregate fee (the “Servicer Fee”) of 1/4 of 1% per annum on the average daily Capital of each Receivable Interest owned by such Investor, from the date of purchase of such Receivable Interest until the later of the Termination Date
for such Receivable Interest or the date on which such Capital is reduced to zero, payable on the Settlement Date for such Receivable Interest. Upon three Business Days’ notice to the Operating Agent, the Parent Servicer (if not the Parent,
another Originator, the Seller or its designee or an Affiliate of the Seller) may elect on behalf of the Servicers to be paid, as such fee, another percentage per annum on the average daily Capital of such Receivable Interest, but in no event in
excess for all Receivable Interests relating to the Receivables Pool of 110% of the reasonable costs and expenses of the Servicers in administering and collecting the Receivables in the Receivables Pool. The Servicer Fee shall be payable to the
Parent Servicer for distribution pro rata to all the other Servicers only from Collections pursuant to, and subject to the priority of payment set forth in, Section 2.04. So long as the Parent is acting as the Parent Servicer hereunder, amounts paid
as the Servicer Fee pursuant to this Section 2.05(a) shall reduce, on a dollar-for-dollar basis, the obligation of the Seller to pay the “Servicer Fee” pursuant to Section 6.03 of the Originator Purchase Agreement, provided that such
obligation of the Seller shall in no event be reduced below zero. 
  
 (b) The Operating Agent on behalf of Bombardier Motor shall pay the BCI Subservicing Fee due to BCI under the Letter Agreement, dated the date hereof, between BCI and Bombardier Motor. 
  
 SECTION 2.06. Payments and Computations, Etc. (a) All amounts to be
paid or deposited by the Seller or any Servicer hereunder shall be paid or deposited no later than 11:00 A.M. (New York City time) on the day when due in same day funds to the Operating Agent’s Account. 
  
 (b) All computations of Yield, fees, and other amounts hereunder shall be
made in Dollars on the basis of a year of 360 days for the actual number of days (including the 

  

 24 

 
first but excluding the last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day other than a Business Day, such payment
or deposit shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of such payment or deposit. 
  
 SECTION 2.07. Dividing or Combining Receivable Interests. Either the Seller or the Operating Agent may, upon notice to the other party received at
least three Business Days prior to the last day of any Fixed Period in the case of the Seller giving notice, or up to the last day of such Fixed Period in the case of the Operating Agent giving notice, either (i) divide any Receivable Interest into
two or more Receivable Interests having aggregate Capital equal to the Capital of such divided Receivable Interest, or (ii) combine any two or more Receivable Interests originating on such last day or having Fixed Periods ending on such last day
into a single Receivable Interest having Capital equal to the aggregate of the Capital of such Receivable Interests. 
  
 SECTION 2.08. Increased Costs. (a) If any Investor, any entity which purchases or enters into a commitment to purchase Receivable Interests or
interests therein, or any of their respective Affiliates (each an “Affected Person”) determines that by reason of any change therein after the date of this Agreement compliance with any law or regulation or any guideline or request
from any central bank or other governmental authority (whether or not having the force of law) affects or would affect the amount of the capital required or expected to be maintained by such Affected Person and such Affected Person determines that
the amount of such capital is increased by or based upon the existence of any commitment to make purchases of or otherwise to maintain the investment in Pool Receivables or interests therein related to this Agreement or to the funding thereof and
other commitments of the same type, then, upon written demand by such Affected Person (with a copy to the Operating Agent), the Seller shall promptly, but in no event more than 10 Business Days after such demand, pay to the Operating Agent for the
account of such Affected Person (as a third-party beneficiary), from time to time as specified by such Affected Person, additional amounts sufficient to compensate such Affected Person in the light of such circumstances, to the extent that such
Affected Person reasonably determines such increase in capital to be allocable to the existence of any of such commitments. 
  
 (b) If, due to either (i) the introduction of or any change (other than any change by way of imposition or increase of reserve requirements referred to in
Section 2.09) in or in the interpretation of any law or regulation or (ii) compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law) issued or made after the date of this
Agreement, there shall be any increase in the cost to any Investor of agreeing to purchase or purchasing, or maintaining the ownership of Receivable Interests in respect of which Yield is computed by reference to the Eurodollar Rate, then, upon
written demand by such Investor (with a copy to the Operating Agent), the Seller shall promptly, but in no event more than 10 Business Days after such demand, pay to the Operating Agent, for the account of such Investor (as a third-party
beneficiary), from time to time as specified by such Investor, additional amounts sufficient to compensate such Investor for such increased costs. 
  
 (c) A certificate of the Affected Person setting forth such amount or amounts (including the basis of calculation of such amount or amounts) as shall be
necessary to compensate an Affected Person as specified in paragraph (a) or (b) above, as the case may be, 

  

 25 

 
shall be delivered to the Seller and shall constitute prima facie evidence of such compensation payable to such Affected Person in the absence of manifest
error. Such Affected Person shall also provide the Seller and the Operating Agent (if other than the Affected Person) a photocopy of the applicable law, rule, guideline, regulation, treaty or official directive. Such Affected Person shall be
entitled to be paid such additional compensation from time to time to the extent that the provisions of this Section 2.08 are then applicable notwithstanding that such Affected Person has previously been paid any additional compensation. Such
Affected Person shall make commercially reasonable efforts to limit the incidence of any such additional compensation, including seeking recovery for the account of the Seller, by appealing any assessment at the expense of the Seller upon the
Seller’s request, provided such Affected Person, in its sole determination, suffers no appreciable economic, legal, regulatory or other disadvantage. 
  
 SECTION 2.09. Additional Yield on Receivable Interests Bearing a Eurodollar Rate. The Seller shall pay to any Investor, so long as such
Investor shall be required under regulations of the Board of Governors of the Federal Reserve System to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities, additional Yield on the unpaid
Capital of each Receivable Interest of such Investor during each Fixed Period in respect of which Yield is computed by reference to the Eurodollar Rate, for such Fixed Period, at a rate per annum equal at all times during such Fixed Period to the
remainder obtained by subtracting (i) the Eurodollar Rate for such Fixed Period from (ii) the rate obtained by dividing such Eurodollar Rate referred to in clause (i) above by that percentage equal to 100% minus the Eurodollar Rate Reserve
Percentage of such Investor for such Fixed Period, payable on each date on which Yield is payable on such Receivable Interest. Such additional Yield shall be determined by such Investor and notice thereof given to the Seller through the Operating
Agent within 30 days after any Yield payment is made with respect to which such additional Yield is requested. A certificate as to such additional Yield submitted to the Seller and the Operating Agent by such Investor shall be conclusive and binding
for all purposes, absent manifest error. 
  
 SECTION 2.10.
Taxes. (a) Any and all payments and deposits required to be made hereunder or under any other Transaction Document by any Servicer, any Originator or the Seller shall be made free and clear of and without deduction for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding taxes that are imposed on an Affected Person by the United States (other than withholding taxes) and franchise taxes and
net income taxes (or equivalent taxes computed under alternative methods, at least one of which is based on net income) that are imposed on an Affected Person by the state or foreign jurisdiction under the laws of which such Affected Person is
organized or any political subdivision thereof (all such nonexcluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If any Servicer, any Originator or the Seller
shall be required by law to deduct any Taxes from or in respect of any sum payable or deposited hereunder to (or for the benefit of) any Affected Person, (i) the Seller shall make an additional payment to such Affected Person, in an amount
sufficient so that, after making all required deductions (including deductions applicable to additional sums payable under this Section 2.10), such Affected Person receives an amount equal to the sum it would have received had no such deductions
been made, (ii) the Seller or such Servicer, as the case may be, shall make such deductions and (iii) the Seller or such Servicer, as the case may be, 

  

 26 

 
shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. 
  
 (b) In addition, the Seller agrees to pay any present or future stamp or
other documentary taxes or any other excise or property taxes, charges or similar levies which arise from any payment made hereunder or under any other Transaction Document or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement or any other Transaction Document, other than U.S. federal taxes except for withholding taxes on interest (hereinafter referred to as “Other Taxes”). 
  
 (c) The Seller will indemnify each Affected Person for the full amount of
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.10 and excluding Taxes and Other Taxes resulting from such Affected Person’s gross negligence or
willful misconduct) paid by such Affected Person or deducted from any Collections (including any Taxes or amounts on account of Taxes deducted by any Obligor) and any liability (including penalties, interest and expenses) arising therefrom or with
respect thereto whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within thirty days from the date the Affected Person makes written demand therefor (and a copy of such demand shall be
delivered to the Operating Agent (if other than the Affected Person)). A certificate as to the amount of such indemnification submitted to the Seller and the Operating Agent (if other than the Affected Person) by such Affected Person, setting forth,
in reasonable detail, the basis for and the calculation thereof, shall be conclusive and binding for all purposes absent manifest error. 
  
 (d) Each Affected Person which is organized outside the United States (or, in the case of any Person which becomes an Affected Person after the date
hereof, on the date on which it so becomes an Affected Person with respect to any payments under this Agreement) shall, on or prior to the date hereof (or, in the case of any Person who becomes an Affected Person after the date hereof, on or prior
to the date on which it so becomes an Affected Person), deliver to the Seller such certificates, documents or other evidence, as required by the Internal Revenue Code of 1986, as amended or Treasury Regulations issued pursuant thereto, including
Internal Revenue Service Form W-8BEN or Form W-8ECI and any other certificate or statement of exemption required by Treasury Regulation Section 1.1441-1 or Section 1.1441-6(c) or any subsequent version thereof, properly completed and duly executed
by such Affected Person as will, insofar as the laws of the United States are applicable, permit such payments to be made without withholding. Each such Affected Person shall from time to time thereafter, upon written request from the Seller,
deliver to the Seller any new certificates, documents or other evidence as described in the preceding sentence as will, insofar as the laws of the United States are applicable, permit payments under this Agreement to be made without withholding or
at a reduced rate (but only so long as such Affected Person is legally able to do so). 
  
 (e) The Seller shall not be required to pay any amounts to any Affected Person in respect of Taxes and Other Taxes pursuant to paragraphs (a), (b) and (c) above to the extent the obligation to pay such amounts is
attributable to the failure by such Affected Person to comply with the provisions of paragraph (d) above; provided, however, that should an Affected Person become subject to Taxes because of its failure to deliver a form required
hereunder, the 

  

 27 

 
Seller and the applicable Servicer shall take such steps as such Affected Person shall reasonably request to assist such Affected Person to recover such
Taxes. 
  
 SECTION 2.11. True Sales. The parties intend the
transfers of Receivable Interests hereunder to be absolute conveyances by the Seller to the Investors that are absolute and irrevocable and that provide the Investors with the full benefits of ownership of the Receivable Interests, and the other
property of Seller referred to in clauses (A), (B), (C) and (D) below and (other than for tax purposes) none of the parties intend the transactions contemplated hereunder to be, or for any purpose to be characterized as, loans from the Investors to
the Seller. Without limiting or otherwise affecting the preceding sentence, for tax purposes, the transactions contemplated by this Agreement and the Originator Purchase Agreement will be treated as a financing by Bombardier Motor. The parties agree
that the foregoing sales of Receivable Interests constitute sales of “accounts” as described in the UCC, and that this Agreement shall create a security interest in favor of the Investors as the purchasers of the Receivable Interests.
Notwithstanding such intent, if the arrangements with respect to the Receivable Interests hereunder are deemed for any purpose to constitute a loan and not a purchase and sale of such Receivable Interests, it is the intention of the parties hereto
that this Agreement shall constitute a security agreement under applicable law, and accordingly, as collateral security for the performance by the Seller of all the terms, covenants and agreements on the part of the Seller (whether as Seller or
otherwise) to be performed under this Agreement or any document delivered in connection with this Agreement in accordance with the terms thereof, including the punctual payment when due of all obligations of the Seller hereunder or thereunder,
whether for indemnification payments, fees, expenses or otherwise (collectively, the “Secured Obligations”), the Seller hereby assigns to the Operating Agent for its benefit and the ratable benefit of the Investors, and hereby grants to
the Operating Agent for its benefit and the ratable benefit of the Investors, a security interest in, all of the Seller’s right, title and interest in and to (A) the Originator Purchase Agreement and the Undertakings, including, without
limitation, (i) all rights of the Seller to receive moneys due or to become due under or pursuant to the Originator Purchase Agreement or the Undertakings, (ii) all security interests and property subject thereto from time to time purporting to
secure payment of monies due or to become due under or pursuant to the Originator Purchase Agreement or the Undertakings, (iii) all rights of the Seller to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the
Originator Purchase Agreement or the Undertakings, (iv) claims of the Seller for damages arising out of or for breach of or default under the Originator Purchase Agreement or the Undertakings, and (v) the right of the Seller to compel performance
and otherwise exercise all remedies thereunder, (B) all Receivables, whether now owned and existing or hereafter acquired or arising, the Related Security with respect thereto and the Collections, including, without limitation, all accounts and
chattel paper (as those terms are defined in the UCC), including undivided interests in any of the foregoing, (C) the Deposit Accounts and (D) to the extent not included in the foregoing, all other proceeds of any and all of the foregoing.

  
 SECTION 2.12. Sharing of Payments. If any Investor (for
purposes of this Section only, referred to as a “Recipient”) shall obtain payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of the Capital of, or Yield on, any Receivable
Interest or portion thereof owned by it in excess of its ratable share of payments made on account of the Capital of, or Yield on, all of the Receivable Interests owned 

  

 28 

 
by the Investors (other than as a result of a payment of Liquidation Fee or different methods for calculating Yield), such Recipient shall forthwith purchase
from the Investors which received less than their ratable share participations in the Receivable Interests owned by such Persons as shall be necessary to cause such Recipient to share the excess payment ratably with each such other Person;
provided, however, that if all or any portion of such excess payment is thereafter recovered from such Recipient, such purchase from each such other Person shall be rescinded and each such other Person shall repay to the Recipient the
purchase price paid by such Recipient for such participation to the extent of such recovery, together with an amount equal to such other Person’s ratable share (according to the proportion of (a) the amount of such other Person’s required
payment to (b) the total amount so recovered from the Recipient) of any interest or other amount paid or payable by the Recipient in respect of the total amount so recovered. 
  
 SECTION 2.13. Cutoff Date. Notwithstanding the date of this Agreement, the initial purchase of Receivable Interests
hereunder shall apply to, and the initial monthly Seller Report to be provided shall be calculated with respect to, all Originator Receivables and Related Security outstanding at the close of business on December 12, 2003. All Collections in respect
thereof received after December 12, 2003 shall be subject to this Agreement. 
  
 ARTICLE III 
  
 CONDITIONS OF
PURCHASES 
  
 SECTION 3.01. Conditions Precedent to Initial
Purchase. The initial purchase of a Receivable Interest under this Agreement is subject to the conditions precedent that: 
  
 (a) The transactions contemplated by the Bombardier Inc. Purchase Agreement shall have been consummated on or before the date of such purchase; and

  
 (b) The Operating Agent shall have received on or before the
date of such purchase the following, each (unless otherwise indicated) dated such date, in form and substance satisfactory to the Operating Agent: 
  
 (i) Certified copies of the resolutions of the Board of Directors or equivalent body of the Seller and each of the Originators approving
this Agreement and any other Transaction Documents to which it is a party and certified copies of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement and any such other
Transaction Documents. 
  
 (ii) A certificate of
the Managing Director, Secretary or Assistant Secretary of the Seller and each of the Originators certifying the names and true signatures of the officers of the Seller and each of the Originators authorized to sign this Agreement, the other
Transaction Documents and the other documents to be delivered by it hereunder and thereunder. 
  

 29 

 (iii) Acknowledgment copies or time stamped receipt copies (or other satisfactory
evidence of filing) of proper financing statements, duly filed on or before the date of such initial purchase under the UCC and PPSA or other applicable law of all jurisdictions (other than the Province of Quebec) and copies of proper forms RG for
registration under the laws of the Province of Quebec, in each case that the Operating Agent may deem necessary or desirable in order to perfect or render opposable the ownership and security interests contemplated by this Agreement and the other
Transaction Documents. 
  
 (iv) Acknowledgment
copies or time stamped receipt copies of proper financing statements, if any, necessary to release all security interests and other rights of any Person in (i) the Receivables, Contracts or Related Security previously granted by the Seller or any
Originator and (ii) the collateral security referred to in Section 2.11 previously granted by the Seller including, (a) without limitation, the liens and charges currently registered with respect to Bombardier Nordtrac AB in Sweden and (b) UCC and
other equivalent forms executed by the Bank of Montreal as Administrative Agent under the Originators’ bank credit facility. 
  
 (v) Completed requests for information, dated on or before the date of such initial purchase, listing all effective financing statements
filed in the jurisdictions referred to in subsection (iii) above that name the Seller or any Originator as debtor, together with copies (except that copies will not be required for jurisdictions outside the United States) of such financing
statements (none of which shall cover any Receivables, Contracts, Related Security or the collateral security referred to in Section 2.11). 
  
 (vi) An executed copy of each of the Deposit Account Agreements. 
  
 (vii) A favorable opinion or opinions of (i) Ropes & Gray LLP, U.S. counsel for the Seller, Bombardier
Motor and the Parent, (ii) Osler, Hoskin & Harcourt, LLP, Canadian counsel for the Parent and (iii) Advokatfirman Vinge KB, Thommessen Krefting Greve Lund AS Advokatfirma and Hannes Snellman Attorneys at Law Ltd., Swedish, Norwegian and Finnish
counsel for the members of the Nordtrac Group, substantially in the forms of Annexes C-l, C-2, C-3, C-4 and C-5 hereto and as to such other matters as the Operating Agent may reasonably request. 
  
 (viii) The Funds Transfer Letter. 
  
 (ix) An executed copy of the Originator Purchase Agreement,
together with satisfactory evidence that all conditions precedent to the initial purchase thereunder have been satisfied. 
  
 (x) A copy of the by-laws or equivalent document of the Seller and each of the Originators, certified by the Manager, Secretary or
Assistant Secretary of the Seller or the relevant Originator, as the case may be. 
  

 30 

 (xi) A copy of the certificate or articles of incorporation or equivalent document of the
Seller and each of the Originators, certified as of a recent date by the Secretary of State or other appropriate official of the state or country of its organization, and a certificate as to the good standing of the Seller and each Originator from
such Secretary of State or other official, dated as of a recent date. 
  
 (xii) A letter from the Seller addressed to the Operating Agent setting forth, among other things, the Seller’s initial capital contribution and the amount of the Deferred Purchase Price immediately following the
initial purchase under the Originator Purchase Agreement. 
  
 (xiii) An executed copy of each of the Undertakings. 
  
 (xiv) Executed copies of letters from CT Corporation accepting its appointment as agent for service of process for Bombardier Nordtrac AB,
Bombardier Nordtrac AS, Bombardier-Nordtrac Oy, the Parent and the Servicers (other than Bombardier Motor) under any Transaction Document to which Bombardier Nordtrac AB, Bombardier Nordtrac AS, Bombardier-Nordtrac Oy, the Parent and such Servicers
are parties. 
  
 (xv) A Monthly Seller Report
prepared as of December 12, 2003. 
  
 (xvi) An
executed copy of a Repurchase Agreement among BCL, BCI, the Seller and the Originators, in respect of the termination of BCL’s financing of the Nordtrac Group’s Receivables. 
  
 SECTION 3.02. Conditions Precedent to All Purchases and Reinvestments. Each purchase (including the initial purchase)
and each reinvestment shall be subject to the further conditions precedent that (a) in the case of each purchase, the Parent Servicer shall have delivered to the Operating Agent all completed Seller Reports required to have been delivered pursuant
to Section 6.02(g) on or before such date and demonstrating that after giving effect to such purchase no Event of Termination or Incipient Event of Termination under Section 7.01 (h) would occur, (b) in the case of each reinvestment, the Parent
Servicer shall have delivered to the Operating Agent on or prior to the date of such reinvestment, in form and substance satisfactory to the Operating Agent, all Seller Reports required to have been delivered pursuant to Section 6.02(g) on or before
such date, (c) on the date of such purchase or reinvestment the following statements shall be true (and acceptance of the proceeds of such purchase or reinvestment shall be deemed a representation and warranty by the Seller and each Servicer (each
as to itself) that such statement is then true): 
  
 (i) The representations and warranties contained in Sections 4.01 and 4.02 are correct in all material respects on and as of the date of such purchase or reinvestment as though made on and as of such date, 
  
 (ii) No event has occurred and is continuing, or would
result from such purchase or reinvestment, that constitutes an Event of Termination or an Incipient Event of Termination, and 
  

 31 

 (iii) The Originators shall have sold to the Seller, pursuant to the Originator Purchase
Agreement, all Originator Receivables arising on or prior to such date, and 
  
 (d) The Operating Agent shall have received such other approvals, opinions or documents as it may reasonably request in connection with any changes in law or factual circumstances occurring after the date of this Agreement. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 4.01. Representations and Warranties of the Seller. The Seller hereby represents and warrants as follows: 
  
 (a) The Seller is a limited liability company duly formed, validly existing
and in good standing under the laws of Delaware, and is duly qualified to do business, and is in good standing, in every jurisdiction where the nature of its business requires it to be so qualified, unless the failure to so qualify would not have a
material adverse effect on (i) the interests of the Investors hereunder, (ii) the collectibility of the Receivables Pool, or (iii) the ability of the Seller to perform its obligations hereunder. 
  
 (b) The execution, delivery and performance by the Seller of the Transaction
Documents to which it is a party and the other documents to be delivered by it hereunder, including the Seller’s use of the proceeds of purchases and reinvestments, (i) are within the Seller’s limited liability company powers, (ii) have
been duly authorized by all necessary limited liability company action, (iii) do not contravene (1) the Seller’s charter or by-laws or equivalent documents, (2) any law, rule or regulation applicable to the Seller, (3) any contractual
restriction binding on or affecting the Seller or its property or (4) any order, writ, judgment, award, injunction or decree binding on or affecting the Seller or its property, and (iv) do not result in or require the creation of any lien, security
interest or other charge or encumbrance upon or with respect to any of its properties (except for the interest created pursuant to this Agreement). Each of the Transaction Documents has been duly executed and delivered by the Seller. 
  
 (c) No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Seller of the Transaction Documents or any other document to be delivered thereunder, except for the filing of UCC
financing statements which are referred to therein. 
  
 (d) Each
of the Transaction Documents constitutes the legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms. 
  
 (e) The opening pro forma balance sheet of the Seller as at December 18, 2003, giving effect to the initial purchase to be made under this Agreement, a
copy of which shall be furnished to the Operating Agent within 20 days after the date of this Agreement, fairly presents the pro forma financial condition of the Seller as at such date, in accordance with U.S. 

  

 32 

 
generally accepted accounting principles, and since December 18, 2003 there has been no material adverse change in the business, operations, property or
financial or other condition of the Seller. 
  
 (f) There is no
pending or threatened action, investigation or proceeding affecting the Seller before any court, governmental agency or arbitrator which may materially adversely affect the financial condition or operations of the Seller or the ability of the Seller
to perform its obligations under the Transaction Documents. 
  
 (g) No proceeds of any purchase or reinvestment will be used to acquire any equity security of a class which is registered pursuant to Section 12 of the Securities Exchange Act of 1934. 
  
 (h) Immediately prior to the purchase by the Investor, the Seller is the
legal and beneficial owner of the Pool Receivables, free and clear of any Adverse Claim other than Permitted Liens; upon each purchase or reinvestment, the Investors shall acquire a valid and perfected first priority undivided percentage ownership
or security interest to the extent of the pertinent Receivable Interest in each Pool Receivable then existing or thereafter arising and Collections with respect thereto. No effective financing statement or other instrument similar in effect covering
any Pool Receivable, any Contract related thereto or Collections with respect thereto is on file in any recording office, except those filed in favor of the Operating Agent relating to this Agreement and those filed by the Seller pursuant to the
Originator Purchase Agreement. Each Receivable characterized in any Seller Report or other written statement made by or on behalf of the Seller as an Eligible Receivable or as included in the Net Receivables Pool Balance is, as of the date of such
Seller Report or other statement, an Eligible Receivable or properly included in the Net Receivables Pool Balance. The Seller has not granted the right to any Person other than the Operating Agent to take dominion and/or control over any Deposit
Account at a future time or upon the occurrence of a future event. 
  
 (i) Each Seller Report (if prepared by the Seller or one of its Affiliates, or to the extent that information contained therein is supplied by the Seller or an Affiliate), information, exhibit, financial statement, document, book, record or
report furnished or to be furnished at any time by or on behalf of the Seller to the Operating Agent or the Investors in connection with this Agreement is or will be accurate in all material respects as of its date or (except as otherwise disclosed
to the Operating Agent or Investors, as the case may be, at such time) as of the date so furnished, and no such document contains or will contain any untrue statement of a material fact. 
  
 (j) The principal place of business and chief executive office of the Seller and the office where the Seller keeps its
records concerning the Pool Receivables are located at the address or addresses referred to in Section 5.01 (b). 
  
 (k) Each purchase of a Receivable Interest and each reinvestment of Collections in Pool Receivables will constitute (i) a “current transaction”
within the meaning of Section 3(a)(3) of the Securities Act of 1933, as amended, and (ii) a purchase or other acquisition of notes, drafts, acceptances, open accounts receivable or other obligations representing part or 

  

 33 

 
all of the sales price of merchandise, insurance or services within the meaning of Section 3(c)(5) of the Investment Company Act of 1940, as amended.

  
 (1) The Seller is not known by and does not use any tradename
or doing-business-as name. 
  
 (m) The Seller was formed on
December 9, 2003 and the Seller did not engage in any business activities prior to the date of this Agreement. The Seller has no Subsidiaries. 
  
 (n) (i) The fair value of the property of the Seller is greater than the total amount of liabilities, including contingent liabilities, of the Seller,
(ii) the present fair salable value of the assets of the Seller is not less than the amount that will be required to pay all probable liabilities of the Seller on its debts as they become absolute and matured, (iii) the Seller does not intend to,
and does not believe that it will, incur debts or liabilities beyond the Seller’s abilities to pay such debts and liabilities as they mature and (iv) the Seller is not engaged in a business or a transaction, and is not about to engage in a
business or a transaction, for which the Seller’s property would constitute unreasonably small capital. 
  
 (o) With respect to each Pool Receivable, the Seller shall have purchased such Pool Receivable from the relevant Originator in exchange for payment (made
by the Seller to such Originator in accordance with the provisions of the Originator Purchase Agreement) of cash, Deferred Purchase Price, increase in equity investment or a combination thereof in an amount which constitutes fair consideration and
reasonably equivalent value. Each such sale referred to in clause (ii) of the preceding sentence shall not have been made for or on account of an antecedent debt owed by an Originator to the Seller and no such sale is or may be voidable or subject
to avoidance under any section of the Federal Bankruptcy Code. 
  
 SECTION 4.02. Representations and Warranties of the Servicers. Each Servicer hereby represents and warrants as to itself as follows: 
  
 (a) Such Servicer is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of organization, and is
duly qualified to do business, and is in good standing (or, in the case of the Nordtrac Group, otherwise has proper authority to conduct business), in every jurisdiction where the nature of its business requires it to be so qualified, unless the
failure to so qualify would not have a material adverse effect on (i) the interests of the Investors hereunder, (ii) the collectibility of the Receivables Pool, or (iii) the ability of the Servicer to perform its obligations hereunder. 

 
 (b) The execution, delivery and performance by such Servicer of this
Agreement and any other documents to be delivered by it hereunder (i) are within such Servicer’s corporate powers, (ii) have been duly authorized by all necessary corporate action, (iii) do not contravene (1) such Servicer’s charter or
bylaws, (2) any law, rule or regulation applicable to the Servicer, (3) any contractual restriction binding on or affecting such Servicer or its property or (4) any order, writ, judgment, award, injunction or decree binding on or affecting such
Servicer or its property, and (iv) do not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its properties. This Agreement has been duly executed and delivered by such
Servicer. 
  

 34 

 (c) No authorization or approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for the due execution, delivery and performance by such Servicer of this Agreement or any other document to be delivered by it hereunder. 
  
 (d) This Agreement constitutes the legal, valid and binding obligation of such Servicer enforceable against the Servicer in
accordance with its terms. 
  
 (e) Since December 18, 2003 there
has been no material adverse change in the business, operations, property or financial or other condition of the Parent Servicer on a consolidated basis. 
  
 (f) There is no pending or, to such Servicer’s knowledge, threatened action, investigation or proceeding against such Servicer or any of its
Subsidiaries before any court, governmental agency or arbitrator which is reasonably expected to materially adversely affect the ability of such Servicer to perform its obligations under this Agreement, or which purports to affect the legality,
validity or enforceability of this Agreement. 
  
 (g) On the date
of each purchase and reinvestment (and after giving effect thereto), the sum of the Receivable Interests is not greater than the Maximum Purchaser Interest on such date. Each Receivable characterized in any Seller Report as an Eligible Receivable or
as included in the Net Receivables Pool Balance is, as of the date of such Seller Report, an Eligible Receivable or properly included in the Net Receivables Pool Balance. 
  
 ARTICLE V 
  
 COVENANTS 
  
 SECTION 5.01. Covenants of the Seller. Until the latest of the Facility Termination Date or the date on which no Capital of or Yield on any
Receivable Interest shall be outstanding or the date all other amounts owed by the Seller hereunder to the Investors or the Operating Agent are paid in full: 
  
 (a) Compliance with Laws, Etc. The Seller will comply in all material respects with all applicable laws, rules, regulations and orders and preserve
and maintain its corporate existence, rights, franchises, qualifications, and privileges except to the extent that the failure so to comply with such laws, rules and regulations or the failure so to preserve and maintain such rights, franchises,
qualifications, and privileges would not materially adversely affect the collectibility of the Receivables Pool or the ability of the Seller to perform its obligations under the Transaction Documents. 
  
 (b) Offices, Records, Name and Organization. The Seller will keep its
principal place of business and chief executive office and the office where it keeps its records concerning the Pool Receivables at the address of the Seller set forth under its name on Schedule II hereto or, upon 10 days’ prior written notice
to the Operating Agent, at any other locations within the United States. The Seller will not change its name or its jurisdiction of organization, unless (i) the Seller shall have provided the Operating Agent with at least 10 days’ 

  

 35 

 
prior written notice thereof and (ii) no later than the effective date of such change, all actions reasonably requested by the Operating Agent to protect and
perfect the interest in the Pool Receivables have been taken and completed. The Seller also will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Pool
Receivables and related Contracts in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all Pool Receivables
(including, without limitation, records adequate to permit the daily identification of each Pool Receivable and all Collections of and adjustments to each existing Pool Receivable). 
  
 (c) Performance and Compliance with Credit and Collection Policy. The Seller will, at its expense, timely and fully
comply and/or cause the Servicers or their subcontractors to timely and fully comply in all material respects with the Credit and Collection Policy in regard to each Pool Receivable. 
  
 (d) Sales, Liens, Etc. Except for the ownership and security interests created hereunder in favor of the Operating
Agent, the Seller will not sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect to, the Seller’s undivided interest in any Pool Receivable, related Contract
or Collections, or upon or with respect to any account to which any Collections of any Pool Receivable are sent, or assign any right to receive income in respect thereof. 
  
 (e) Extension or Amendment of Receivables. Except as provided in Section 6.02(c), the Seller will not extend, amend
or otherwise modify the terms of any Pool Receivable, or amend, modify or waive any term or condition of any Contract related thereto. 
  
 (f) Change in Business or Credit and Collection Policy. The Seller will not make any change in the character of its business or in the Credit and
Collection Policy that would, in either case, materially adversely affect the collectibility of the Receivables Pool or the ability of the Seller to perform its obligations under this Agreement. 
  
 (g) Deposit Accounts. The Seller will not terminate any Deposit
Account. 
  
 (h) Deposits to Deposit Accounts. Until
January 15, 2003, the Seller shall, and shall cause each Servicer (if it is the Parent or an Affiliate of the Parent) to, deposit all Collections which may be received by any Originator, the Seller or any Servicer in a Deposit Account no later than
2 Business Days (3 Business Days in the case of collections received in Canada) after receipt, and thereafter no later than the next Business Day Seller or a Servicer learns or should reasonably have learned of such receipt. No cash or cash proceeds
other than Collections of Receivables will be deposited or otherwise credited to any Deposit Account. 
  
 (i) Marking of Records. At its expense, the Seller will mark its master data processing records evidencing Pool Receivables with a legend
evidencing that Receivable Interests related to such Pool Receivables have been sold in accordance with this Agreement. 
  
 (j) Further Assurances. (i) The Seller agrees from time to time, at its expense, promptly to execute and deliver all further instruments and
documents, and to take all 

  

 36 

 
further actions, that may be necessary or desirable, or that the Operating Agent may reasonably request, to perfect, protect or more fully evidence the
Receivable Interests purchased under this Agreement, or to enable the Investors or the Operating Agent to exercise and enforce their respective rights and remedies under this Agreement. 
  
 (ii) The Seller authorizes the Operating Agent to file financing or continuation statements, and amendments
thereto and assignments thereof, relating to the Pool Receivables and the Related Security and the Collections with respect thereto, copies of which financing statements only shall be promptly provided to the Seller. 
  
 (k) Reporting Requirements. The Seller will provide to the Operating
Agent (in multiple copies, if requested by the Operating Agent) the following: 
  
 (i) as soon as available and in any event within 60 days after the end of each of the first three fiscal quarters of each fiscal year of
the Parent, an unaudited consolidated balance sheet of the Parent as of the end of such quarter and the related unaudited consolidated statements of income and statements of changes in financial position for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter, certified by the chief financial officer of the Parent; 
  
 (ii) as soon as available and in any event within 120 days after the end of each fiscal year of the Parent, the audited consolidated
balance sheet of the Parent as of the end of such fiscal year and the related statements of income and statements of changes in financial position for such fiscal year audited by independent public accountants of recognized standing; 
  
 (iii) as soon as available and in any event within 60 days
after the end of each of the first three fiscal quarters and within 120 days after the end of the fourth fiscal quarter of each fiscal year of the Seller, an unaudited balance sheet of the Seller as of the end of such quarter and the related
unaudited statements of income and statements of changes in financial position for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, certified by the chief financial officer of the Seller;

  
 (iv) promptly and in any event within five
Business Days after the occurrence of each Event of Termination or Incipient Bankruptcy Event of Termination of which the Seller has knowledge, a statement of the chief financial officer of the Seller setting forth details of such Event of
Termination or Incipient Bankruptcy Event of Termination and the action that the Seller has taken and proposes to take with respect thereto; 
  
 (v) promptly after the sending or filing thereof, copies of all material information that the Parent sends to any of its security holders,
and copies of all public registration statements, annual information forms, prospectuses and similar 

  

 37 

 
offering materials that the Parent or any of its Subsidiaries files with the SEC or any securities exchange in Canada; 
  
 (vi) promptly after the filing or receiving thereof, copies
of all reports and notices that the Seller or any Affiliate files under ERISA with the Internal Revenue Service or the Pension Benefit Guaranty Corporation or the U.S. Department of Labor or that the Seller or any Affiliate receives from any of the
foregoing or from any multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to which the Seller or any Affiliate is or was, within the preceding five years, a contributing employer, in each case in respect of the assessment of
withdrawal liability or an event or condition which could, in the aggregate, result in the imposition of liability on the Seller and/or any such Affiliate in excess of $5,000,000; 
  
 (vii) at least 10 days prior to any change in the name, head office or chief executive office or
jurisdiction of organization of any Originator, a notice setting forth the new name, head office or chief executive office or jurisdiction of organization and the effective date thereof; 
  
 (viii) promptly after the Seller obtains knowledge thereof, notice of any “Event of Termination”
or “Facility Termination Date” under the Originator Purchase Agreement; 
  
 (ix) so long as any Capital shall be outstanding, as soon as possible and in any event no later than the day of occurrence thereof, notice
that an Originator has stopped selling to the Seller, pursuant to the Originator Purchase Agreement, all newly arising Originator Receivables; 
  
 (x) at the time of the delivery of the financial statements provided for in clauses (i) and (ii) of this paragraph, a certificate of the
chief financial officer or the treasurer of the Seller to the effect that, to the best of such officer’s knowledge, no Event of Termination has occurred and is continuing or, if any Event of Termination has occurred and is continuing,
specifying the nature and extent thereof; 
  
 (xi) promptly after receipt thereof, copies of all notices received by the Seller from any Originator under the Originator Purchase Agreement; 
  
 (xii) such other information respecting the Receivables or the condition or operations, financial or otherwise, of the Seller as the
Operating Agent may from time to time reasonably request. 
  
 Reports and financial statements required to be delivered pursuant to clauses (i), (ii) and (v) of this Section 5.01(k) shall be deemed to have been delivered on the date on which the Parent posts such reports, or reports containing such
financial statements, on the Parent’s website on the Internet or when such reports, or reports containing such financial statements, are posted on the SEC’s website at www.sec.gov; provided that the Parent shall deliver paper copies

  

 38 

 
of the reports and financial statements referred to in clauses (i), (ii) and (v) of this Section 5.01 (k) to the Operating Agent or any Investor who requests
the Parent to deliver such paper copies until written notice to cease delivering paper copies is given by the Operating Agent or such Investor, as applicable. 
  

(l) Separateness. (i) The Seller shall at all times maintain at least one independent manager who (x) is not currently and has not been during
the five years preceding the date of this Agreement an officer, director or employee of an Affiliate of the Seller or any Other Company (except as an independent manager of an Affiliate of the Seller which is a bankruptcy-remote special purpose
entity), (y) is not a current or former officer or employee of the Seller and (z) is not a stockholder of any Other Company or any of their respective Affiliates. 
  
 (ii) The Seller shall not direct or participate in the management of any of the Other Companies’
operations. 
  
 (iii) The Seller shall conduct
its business from an office separate from that of the Other Companies (but which may be located in the same facility as one or more of the Other Companies). The Seller shall have stationery and other business forms and a mailing address and a
telephone number separate from that of the Other Companies. 
  
 (iv) The Seller shall at all times be adequately capitalized in light of its contemplated business. 
  
 (v) The Seller shall at all times provide for its own operating expenses and liabilities from its own funds except that common overhead
expenses may be shared by the Seller and the Other Companies on a basis reasonably related to use. 
  
 (vi) The Seller shall maintain its assets and transactions separately from those of the Other Companies and reflect such assets and
transactions in financial statements separate and distinct from those of the Other Companies and evidence such assets and transactions by appropriate entries in books and records separate and distinct from those of the Other Companies. The Seller
shall hold itself out to the public under the Seller’s own name as a legal entity separate and distinct from the Other Companies. The Seller shall not hold itself out as having agreed to pay, or as being liable, primarily or secondarily, for,
any obligations of the Other Companies. 
  
 (vii)
The Seller shall not maintain any joint account with any Other Company or become liable as a guarantor or otherwise with respect to any Debt or contractual obligation of any Other Company. 
  
 (viii) The Seller shall not make any payment or distribution
of assets with respect to any obligation of any Other Company or grant an Adverse Claim on any of its assets to secure any obligation of any Other Company. 
  
 (ix) The Seller shall not make loans, advances or otherwise extend credit to any of the Other Companies. 
  

 39 

 (x) The Seller shall maintain all appropriate organizational formalities in accordance
with the Delaware Limited Liability Company Act. 
  
 (xi) The Seller shall have bills of sale (or similar instruments of assignment) and, if appropriate, UCC-1 financing statements, with respect to all assets purchased from any of the Other Companies (in the case of the Receivables, as and to
the extent provided by the Originator Purchase Agreement). 
  
 (xii) The Seller shall not engage in any transaction with any of the Other Companies, except as permitted by this Agreement and as contemplated by the Originator Purchase Agreement. 
  
 (xiii) The Seller shall comply with (and cause to be true
and correct) each of the facts and assumptions contained in Part I (Assumptions of Fact) of the true sale and non-consolidation opinion of Ropes & Gray LLP delivered pursuant to Section 3.01(b)(vii) of this Agreement. 
  
 (m) Originator Purchase Agreement. The Seller will not amend, waive or
modify any provision of the Originator Purchase Agreement (provided that the Seller may extend the “Facility Termination Date” thereunder) or waive the occurrence of any “Event of Termination” under the Originator Purchase
Agreement, without in each case the prior written consent of the Operating Agent. The Seller will perform all of its obligations under the Originator Purchase Agreement in all material respects and will enforce the Originator Purchase Agreement in
accordance with its terms in all material respects. 
  
 (n)
Nature of Business. The Seller will not engage in any business other than the purchase of Receivables, Related Security and Collections from the Originators and the transactions contemplated by this Agreement. The Seller will not create or
form any Subsidiary. 
  
 (o) Mergers, Etc. The Seller will
not merge with or into or consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions), all or substantially all of its assets (whether now owned or hereafter acquired) to,
or acquire all or substantially all of the assets or capital stock or other ownership interest of, or enter into any joint venture or partnership agreement with, any Person, other than as contemplated by this Agreement and the Originator Purchase
Agreement. 
  
 (p) Distributions, Etc. The Seller will not
declare or make any dividend payment or other distribution of assets, properties, cash, rights, obligations or securities on account of any equity interests of the Seller, or return any capital to its members as such, or purchase, retire, defease,
redeem or otherwise acquire for value or make any payment in respect of any equity interests of the Seller or any warrants, rights or options to acquire any such interests, now or hereafter outstanding; provided, however, that the
Seller may declare and pay dividends on its equity interests to its members so long as (i) no Event of Termination shall then exist or would occur as a result thereof, (ii) such dividends are in compliance with all applicable law including the
Delaware Limited Liability Company Act, as amended, and (iii) such 

  

 40 

 
dividends have been approved by all necessary and appropriate limited liability company action of the Seller. 
  
 (q) Debt. The Seller will not incur any Debt, other than any Debt
incurred pursuant to this Agreement and the Deferred Purchase Price. 
  
 (r) Limited Liability Company Agreement. The Seller will not amend or delete Articles 3, 7, 15 and 19.1 of its amended and restated limited liability company agreement. 
  
 (s) Tangible Net Worth. The Seller will maintain Tangible Net Worth at all times equal to at least 3% of the
Outstanding Balance of the Receivables at such time. 
  
 SECTION
5.02. Covenant of the Seller and the Originators. Until the latest of the Facility Termination Date or the date on which no Capital of or Yield on any Receivable Interest shall be outstanding or the date all other amounts owed by the Seller
hereunder to the Investors or the Operating Agent are paid in full, the Seller and each Originator will, at their respective expense, from time to time during regular business hours as reasonably requested by the Operating Agent, permit the
Operating Agent or, as designated to the Seller and the Originators in writing, its agents or representatives (including independent public accountants, which may be the Seller’s or such Originator’s independent public accountants), (i) no
later than 60 days after the date of this Agreement, to conduct a post-closing audit of the Receivables Pool to determine compliance with this Agreement, (ii) in addition to the audit referred to in clause (i) above, no more than once each year
commencing January 1, 2004 (unless an Event of Termination has occurred and is continuing or a deficiency was discovered during the previous audit, in which case such limitation shall not apply), to conduct periodic audits of the Receivables, the
Related Security and the related books and records and collections systems of the Seller or such Originator, as the case may be, (iii) no more than once each year commencing January 1, 2004 (unless an Event of Termination has occurred and is
continuing or a deficiency was discovered during the previous audit referred to in clause (ii) above, in which case such limitation shall not apply), to examine and make copies of and abstracts from all books, records and documents (including,
without limitation, computer tapes and disks) in the possession or under the control of the Seller or such Originator, as the case may be, relating to Pool Receivables and the Related Security, including, without limitation, the Contracts related
thereto, subject, however, to any confidentiality restrictions, and (iv) to visit the offices and properties of the Seller or such Originator, as the case may be, for the purpose of examining such materials described in clause (ii) above, and to
discuss matters relating to Pool Receivables and the Related Security or the Seller’s or such Originator’s performance under the Transaction Documents or under the Contracts relating to Pool Receivables with any of the officers or
employees of the Seller or such Originator, as the case may be, having knowledge of such matters. The foregoing rights shall be exercised at such reasonable time or times as will not interfere with the normal operations of the Seller and the
Originators. In addition, upon the Operating Agent’s request no more than once per year commencing January 1, 2004, the Seller will, at its expense, appoint independent public accountants (which may be selected by the Operating Agent, if an
Event of Termination shall then exist or if an audit deficiency was discovered during the previous audit, and otherwise shall be selected by mutual agreement of the Operating Agent and the Seller and may be the Seller’s regular independent
public accountants), or utilize the Operating Agent’s representatives or auditors, to prepare and deliver to the Operating Agent a written report with 

  

 41 

 
respect to the Receivables and the Credit and Collection Policy (including, in each case, the systems, procedures and records relating thereto) on a scope
and in a form reasonably requested by the Operating Agent. 
  
 ARTICLE VI 
  
 ADMINISTRATION AND COLLECTION 

OF POOL RECEIVABLES 
  
 SECTION 6.01. Designation of Servicers. The servicing, administration and collection of the Pool Receivables shall be conducted by the Servicers so
designated hereunder from time to time. Until the Operating Agent gives notice to the Seller of the designation of a new Servicer in accordance with the provisions of the next sentence, (a) each Originator is hereby designated as, and hereby agrees
to perform the duties and obligations of, Servicer in respect of Pool Receivables originated by it pursuant to the terms hereof provided that the Parent Servicer will act as Servicer with respect to all Deposit Accounts maintained for the Nordtrac
Group and (b) the Parent is hereby designated as, and hereby agrees to perform the duties and obligations of, the Parent Servicer pursuant to the terms hereof. The Operating Agent may at any time after the occurrence and during the continuance of an
Event of Termination or an Incipient Bankruptcy Event of Termination or a Servicer Bankruptcy Event designate, upon at least ten days prior written notice to the Servicers (unless such Servicer is in insolvency, bankruptcy or arrangement proceeding,
in which case no such notice need be given), as Servicer any Person (including itself) to succeed all or any of the Servicers or any successor Servicer, if such Person shall consent and agree to the terms hereof. Any Servicer may, with the prior
consent of the Operating Agent (except that no consent is required if the subcontract is to another Originator), subcontract with any other Person or Persons (including an Originator or Originators) for the servicing, administration or collection of
the Pool Receivables. Any such subcontract shall not affect a Servicer’s liability for performance of its duties and obligations pursuant to the terms hereof, and any such subcontract shall automatically terminate upon designation of a
successor Servicer. 
  
 SECTION 6.02. Duties of Servicers.
(a) Each Servicer shall take or cause to be taken all such actions as may be necessary or advisable to collect each Pool Receivable originated by it from time to time, all in accordance with applicable laws, rules and regulations, with reasonable
care and diligence, and in accordance with the Credit and Collection Policy; provided, however, that the Servicers shall not be required (i) to perfect, render opposable, publish, make any filing or registration or take any other
action for the purposes of perfecting or otherwise rendering opposable against any Person any reservation of ownership contained or provided for in any Contract or invoice relating to any Receivable originated by it or (ii) to perfect, render
opposable, publish, make any filing or registration or take any other action under the laws of the domicile of any Obligor (other than the Quebec, Ontario, Delaware, Illinois and the District of Columbia laws) for the purposes of perfecting or
otherwise rendering opposable as against the Parent, or any third parties in relation to the Parent, the interests of the Purchaser in the Receivables, Related Security and Collections under this Agreement provided further that no later than January
31, 2004, the Parent Servicer shall effect filings contemplated by this clause (ii) in all other jurisdictions in the United States and Canada. The Seller and the Operating Agent hereby appoint the Servicers, from time to time designated pursuant to
Section 6.01, as 

  

 42 

 
agent for themselves and for the Investors to enforce their respective rights and interests in the Pool Receivables, the Related Security and. the
Collections with respect thereto. In performing its duties as Servicer, each Servicer shall exercise the same care and apply the same policies as it would exercise and apply if it owned such Receivables, except as otherwise provided in the
Transaction Documents. 
  
 (b) Each Servicer shall administer the
Collections in accordance with the procedures described in Section 2.04. 
  
 (c) If no Event of Termination or Incipient Bankruptcy Event of Termination shall have occurred and be continuing, but subject to Section 6.02(j), any Originator, while it is a Servicer (or while it is a subcontractor
to a Servicer under Section 6.01), may, in accordance with the Credit and Collection Policy, (i) extend the maturity of any Receivable one time for up to 30 days or (ii) adjust the Outstanding Balance of any Receivable, in each case as such
Originator deems appropriate to maximize Collections thereof; provided that if the maturity of any Receivable is extended more than once or for more than 30 days or the Outstanding Balance of any Receivable is reduced, such Receivable shall
be classified as a Diluted Receivable; provided further that the classification of any such Receivable as a Defaulted Receivable shall not be affected by any such extension. 
  
 (d) Each Servicer shall hold in trust for the Seller and each Investor, in accordance with their respective interests, all
documents, instruments and records (including, without limitation, computer tapes or disks) which evidence or relate to Pool Receivables. The Parent Servicer shall mark the Seller’s master data processing records evidencing the Pool Receivables
with a legend, acceptable to the Operating Agent, evidencing that Receivable Interests therein have been sold and, at the request of the Operating Agent, each Servicer shall after and during the continuance of an Event of Termination or an Incipient
Bankruptcy Event of Termination mark conspicuously (if not already done) each invoice evidencing each Pool Receivable originated by it and the related Contract with such a legend. 
  
 (e) Each Servicer shall, as soon as practicable following receipt, turn over to the Person entitled thereto any cash
collections or other cash proceeds received with respect to Receivables not constituting Pool Receivables. 
  
 (f) The Parent Servicer shall, from time to time at the request of the Operating Agent, furnish to the Operating Agent (promptly after any such request) a
calculation of the amounts held in trust for the Investors pursuant to Section 2.04. 
  
 (g) On the sixth Business Day before the end of each Fiscal Month, the Parent Servicer shall prepare and forward to the Operating Agent a Monthly Seller Report relating to the Receivable Interests outstanding on a day
that is not more than five calendar days prior to the delivery of such Monthly Seller Report provided that the first two Monthly Seller Reports required after the initial Monthly Seller Report may be prepared as of a day that is not more than six
Business Days prior to the delivery of such Monthly Seller Report. On the first Business Day of each week, the Parent Servicer shall prepare and forward to the Operating Agent a Weekly Seller Report relating to the Receivable Interests outstanding
on the last Business Day of the immediately preceding week. 
  

 43 

 The Parent Servicer shall transmit Seller Reports to the Operating Agent concurrently by facsimile and by
electronic mail (each an “E-Mail Seller Report”). Each E-Mail Seller Report shall be (A) formatted as the Operating Agent may reasonably designate from time to time and (B) sent to the Operating Agent at an electronic mail address
designated by the Operating Agent. 
  
 (h) No later than January
15, 2004, each Servicer will instruct the Obligors of the Receivables for which it is responsible to pay all Collections of such Receivables directly to a Deposit Account. Each Servicer shall deposit all Collections of Receivables received by it in
a Deposit Account within the time called for by Section 5.01 (h) and until it does so shall segregate and hold such Collections in trust for, and as agent on behalf of, the Operating Agent. 
  
 (i) No Servicer shall deposit or credit to any Deposit Account any cash or
cash proceeds other than Collections of Receivables. Each Servicer shall file all tax returns required by law to be filed by it with respect to the Receivables and shall promptly pay, remit or account for, as applicable, all sales taxes (including,
without limitation, VAT, PST, QST and GST) paid or owing by it in connection with any Receivables, except any such taxes which are not yet delinquent or are being diligently contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with applicable generally accepted accounting principles shall have been set aside on its books. 
  
 (j) Notwithstanding anything to the contrary contained herein, no Servicer (nor any Person to whom any Servicer delegates any of its responsibilities
hereunder) shall (nor has authority to) enter into contracts or other agreements in the name of the Operating Agent or any Investor; and no Servicer (nor any such delegee) is permitted to (or has authority to) establish an office or other fixed
place of business of the Operating Agent or any Investor in Canada, Finland, Norway or Sweden. To the extent any responsibilities of any Servicer hereunder involve or require such Person to enter into a contract or other agreement in the name of the
Operating Agent or any Investor, such servicing responsibility shall be fulfilled solely by Bombardier Motor, and such Person is authorised to take such action, but only from a place of business outside Canada, Finland, Norway and Sweden and such
Person may not delegate such responsibility except upon consent of the Operating Agent. 
  
 (k) Prior to January 15, 2004, each Servicer (other than Bombardier Motor and the Parent) will send notice of the sale under the Originator Purchase Agreement to each Obligor of a Receivable outstanding as of the date
hereof originated by it, such notices to be in each case substantially in the form designated for such Servicer on Annex G hereto. From and after January 15, 2004, each Servicer (other than Bombardier Motor and the Parent) shall mark each invoice
related to any Receivable originated by it in a prominent place with a legend substantially in the form designated for such Servicer on Annex G. 
  
 (1) The Parent Servicer shall within ten Business Days after the end of each of its fiscal quarters prepare and forward to the Operating Agent a listing
of all Obligors whose Receivables are as of the end of such fiscal quarter in the Receivables Pool in such detail as shall be reasonably acceptable to the Operating Agent. 
  

 44 

 (m) Bombardier Motor, in its role as Servicer hereunder, acting as agent for the Operating Agent for
purposes of Section 2.11 hereof, shall take and maintain possession of all original chattel paper associated with any Receivable originated by it and for which it is responsible and shall appropriately mark the same to reflect the Operating
Agent’s interest therein. 
  
 SECTION 6.03. Certain Rights
of the Operating Agent. (a) The Seller hereby transfers exclusive ownership and control and hereby grants a security in the Deposit Accounts to the Operating Agent as collateral security for the Secured Obligations. The Operating Agent shall not
take any action with respect to the Deposit Accounts (including under any Deposit Account Agreement) except under the circumstances described in the lead-in to Section 6.03(b). 
  
 (b) At any time following the designation of a Servicer other than an Originator pursuant to Section 6.01 or following and
during the continuance of an Event of Termination or an Incipient Bankruptcy Event of Termination or a Servicer Bankruptcy Event: 
  
 (i) The Operating Agent is authorized to deliver instructions to the Deposit Account Banks regarding disposition of funds in the Deposit
Accounts. 
  
 (ii) The Operating Agent may notify
the Obligors of Pool Receivables, at the Seller’s expense, of the ownership of Receivable Interests under this Agreement. 
  
 (iii) The Operating Agent may direct the Obligors of Pool Receivables that all payments thereunder be made directly to the Operating Agent
or its designee. 
  
 (iv) At the Operating
Agent’s request and at the Seller’s expense, the Seller and each Servicer shall (A) assemble all of the documents, instruments and other records (including, without limitation, computer tapes and disks) that evidence or relate to the Pool
Receivables and the related Contracts and Related Security, or that are otherwise necessary or desirable to collect the Pool Receivables which it services, and shall, subject to any confidentiality restrictions contained in such Contracts, make the
same available to the Operating Agent at a place selected by the Operating Agent or its designee, and (B) segregate all cash, checks and other instruments received by it from time to time constituting Collections of Pool Receivables in a manner
reasonably acceptable to the Operating Agent and, promptly upon receipt, remit all such cash, checks and instruments, duly indorsed or with duly executed instruments of transfer, to the Operating Agent or its designee. 
  
 (v) The Seller authorizes the Operating Agent to take any
and all steps in the Seller’s name and on behalf of the Seller that are necessary or commercially reasonable, in the determination of the Operating Agent, to collect amounts due under the Pool Receivables, including, without limitation,
endorsing the Seller’s 

  

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name on checks and other instruments representing Collections of Pool Receivables and enforcing the Pool Receivables and the Related Security. 
  
 SECTION 6.04. Rights and Remedies. (a) If any Servicer fails to
perform any of its obligations under this Agreement, the Operating Agent may (but shall not be required to), upon two Business Days’ prior notice to such Servicer if an Event of Termination or Incipient Bankruptcy Event of Termination shall
then exist, and otherwise, upon 10 days’ prior notice to such Servicer, itself perform, or cause performance of, such obligation; and the Operating Agent’s reasonable costs and expenses incurred in connection therewith shall be payable by
such Servicer. 
  
 (b) The Seller and the Originators shall
perform their respective obligations under the Contracts related to the Pool Receivables (insofar as such obligations relate to the Pool Receivables) to the same extent as if Receivable Interests had not been sold and the exercise by the Operating
Agent on behalf of the Investors of their rights under this Agreement shall not release the Servicers, the Originators or the Seller from any of their duties or obligations with respect to any Pool Receivables or related Contracts. Neither the
Operating Agent nor the Investors shall have any obligation or liability with respect to any Pool Receivables or related Contracts, nor shall any of them be obligated to perform the obligations of the Seller thereunder. 
  
 (c) In the event of any conflict between the provisions of Article VI of this
Agreement and Article VI of the Originator Purchase Agreement, the provisions of Article VI of this Agreement shall control. 
  
 SECTION 6.05. Further Actions Evidencing Purchases. Each Originator agrees from time to time, at its expense, to promptly execute and deliver all
further instruments and documents, and to take all further actions, that may be necessary or desirable, or that the Operating Agent may reasonably request, to perfect, protect or more fully evidence the Receivable Interests purchased hereunder, or
to enable the Investors or the Operating Agent to exercise and enforce their respective rights and remedies hereunder. Without limiting the foregoing, each Originator will (i) upon the request of the Operating Agent, execute and file such financing
or continuation statements, or amendments thereto, and such other instruments and documents, that may be reasonably necessary or desirable, or that the Operating Agent may reasonably request, to perfect, protect or evidence such Receivable
Interests; (ii) mark its master data processing records evidencing the Pool Receivables with a legend, reasonably acceptable to the Operating Agent, evidencing that Receivable Interests therein have been sold; and (iii) upon the request of the
Operating Agent after the occurrence and during the continuance of an Event of Termination or an Incipient Bankruptcy Event of Termination, mark conspicuously each invoice evidencing each Pool Receivable with such a legend. Each Originator
authorizes the Seller or the Operating Agent to file financing statements or other applicable registrations under the PPSA and the Civil Code of Quebec with respect to the Originator Purchase Agreement as permitted by the UCC, the PPSA and the Civil
Code of Quebec. The Seller authorizes the Operating Agent to file financing statements or other applicable registrations under the PPSA and the Civil Code of Quebec with respect to the Originator Purchase Agreement as permitted by the UCC, the PPSA
and the Civil Code of Quebec, including financing statements under the UCC in respect of all the assets of the Seller. 
  

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 SECTION 6.06. Covenants of the Servicers and the Originators. (a) Audits. Each Servicer
will, from time to time during regular business hours as reasonably requested by the Operating Agent, at such Servicer’s expense, permit the Operating Agent, or, as designated to such Servicer in writing, its agents or representatives
(including independent public accountants, which may be the Servicer’s independent public accountants), (i) no later than 60 days after the date of this Agreement, to conduct a post-closing audit of the Receivables Pool to determine compliance
with this Agreement, (ii) in addition to the audit referred to in clause (i) above, no more than once in each year commencing January 1, 2004 (unless an Event of Termination has occurred and is continuing or a deficiency was discovered during the
previous audit, in which case such limitation shall not apply), to conduct periodic audits of the Receivables, the Related Security and the related books and records and collections systems of such Servicer, (iii) no more than once each year
commencing January 1, 2004 (unless an Event of Termination shall have occurred and is continuing or a deficiency was discovered during the previous audit referred to in clause (ii) above, in which case such limitation shall not apply) to examine and
make copies of and abstracts from all books, records and documents (including, without limitation, computer tapes and disks) in the possession or under the control of such Servicer relating to Pool Receivables and the Related Security, including,
without limitation, the Contracts relating to Pool Receivables, subject however to any confidentiality restrictions, and (iv) to visit the offices and properties of such Servicer for the purpose of examining such materials described in clause (ii)
above, and to discuss matters relating to Pool Receivables and the Related Security or such Servicer’s performance hereunder with any of the officers or employees of such Servicer having knowledge of such matters. The foregoing rights shall be
exercised at such reasonable time or times as will not interfere with the normal operations of the Servicers. The rights of the Operating Agent under this Section 6.06(a) will be exercised in conjunction with the audit rights granted under Section
5.02, but only at the times the audit rights under Section 5.02 are exercised. 
  
 (b) Change in Credit and Collection Policy. Each Originator will not make any change in the Credit and Collection Policy that would impair the collectibility of any Pool Receivable or the ability of such
Originator or the Parent (if it is acting as a Servicer) to perform its obligations under this Agreement. 
  
 SECTION 6.07. Indemnities by the Servicers. Without limiting any other rights that the Operating Agent, any Investor, any of their respective
Affiliates or any of their respective officers, directors, employees or advisors (each, a “Special Indemnified Party”) may have hereunder or under applicable law, and in consideration of its appointment as Servicer, each Servicer
hereby agrees to indemnify each Special Indemnified Party from and against any and all claims, losses and liabilities (including reasonable attorneys’ fees) (all of the foregoing being collectively referred to as “Special Indemnified
Amounts”) arising out of or resulting from any of the following (excluding, however, (a) Special Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of such Special Indemnified Party, (b)
recourse for Receivables which are not collected, not paid or uncollectible solely on account of the insolvency, bankruptcy or financial inability to pay of the applicable Obligor or (c) any income taxes or any other tax or fee measured by net
income incurred by such Special Indemnified Party arising out of or as a result of this Agreement or the ownership of Receivable 

  

 47 

 
Interests or in respect of any Receivable or any related Contract unless it arises as a result of a breach by such Servicer of this Agreement, including
Section 6.02(j)): 
  
 (i) any representation made
or deemed made by such Servicer pursuant to Section 4.02(g) hereof which shall have been incorrect in any respect when made or any other representation or warranty or statement made or deemed made by such Servicer under or in connection with this
Agreement which shall have been incorrect in any material respect when made; 
  
 (ii) the failure by such Servicer to comply with any applicable law, rule or regulation with respect to any Pool Receivable or related Contract; 
  
 (iii) any failure of such Servicer to perform its duties or obligations in accordance with the provisions of
this Agreement; 
  
 (iv) the commingling of
Collections of Pool Receivables at any time by such Servicer with other funds; 
  
 (v) any action or omission by such Servicer reducing or impairing the rights of the Investors with respect to any Pool Receivable or the
value of any Pool Receivable; 
  
 (vi) any
determination after the date hereof, that any Investor or the Operating Agent has or is deemed to have a permanent establishment within Finland, Norway or Sweden solely or primarily as a result of the transactions contemplated hereby or any act or
failure to act of the Seller or such Servicer; 
  
 (vii) any claim brought by any Person other than a Special Indemnified Party arising from any activity by such Servicer or its Affiliates in servicing, administering or collecting any Receivable; or 
  
 (viii) any claim brought by any Person (other than BCI or
its Affiliates) arising out of the performance of subservicing activities by BCI. 
  
 ARTICLE VII 
  
 EVENTS OF
TERMINATION 
  
 SECTION 7.01. Events of Termination. If any
of the following events (“Events of Termination”) shall occur and be continuing: 
  
 (a) Any Servicer (i) shall fail to perform or observe any term, covenant or agreement under this Agreement (other than as referred to in clause (ii) or
(iii) of this subsection (a)) and such failure shall remain unremedied for five Business Days or (ii) shall fail to make when due any payment or deposit to be made by it under this Agreement which is to be applied to Capital or Yield (and if such
failure is with respect to Yield, such failure shall remain unremedied for one Business Day after the date such payment is due); or (iii) shall fail to deliver 

  

 48 

 
any Seller Report when required and such failure shall remain unremedied for one Business Day; or 
  
 (b) The Seller shall fail to make any payment required under Section 2.04(e)
and such failure remains unremedied for one Business Day after the Seller obtains actual knowledge or written notice from the Operating Agent thereof; or 
  
 (c) Any representation or warranty made or deemed made by the Seller, any Originator or any Servicer (or any of their respective officers) under or in
connection with this Agreement or any other Transaction Document or any information or report delivered by the Seller, any Originator or any Servicer pursuant to this Agreement or any other Transaction Document shall prove to have been incorrect or
untrue in any material respect when made or deemed made or delivered (unless either (i) such representation or warranty relates solely to one or more specific Pool Receivables and as of the second Business Day following the removal of such Pool
Receivables from the Net Receivables Pool Balance no Event of Termination under Section 7.01(h) shall exist or (ii) the breach of such representation or warranty is capable of being cured and is in fact cured (without any adverse impact on the
Operating Agent or the Investors or the collectibility of the Pool Receivables) within five Business Days after the first date on which the Seller obtains actual knowledge or receives written notice of such breach from the Operating Agent); or

  
 (d) The Seller or any Originator shall fail to perform or
observe any other term, covenant or agreement contained in this Agreement on its part to be performed or observed and any such failure shall remain unremedied for 10 Business Days after written notice thereof shall have been given to the Seller and
(in the case of a failure by any Originator) such Originator by the Operating Agent; or 
  
 (e) The Seller, the Parent or any Originator (i) fails to pay at maturity or, in the event a period of grace is provided, within any such applicable period of grace, any payment with respect to Indebtedness for
Borrowed Money or (ii) is in default under or fails to observe or perform any term, covenant or agreement contained in any agreement by which it is bound evidencing or securing Indebtedness for Borrowed Money and any grace period provided in such
agreement to remedy such default or failure has expired if the effect of such default or failure is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness for Borrowed Money; provided, that there shall only be an
Event of Termination under this Section 7.01(e) if the aggregate amount of Indebtedness for Borrowed Money which is not so paid and/or with respect to which such default or failure to observe or perform has occurred, exceeds U.S.$5,000,000 (or the
Dollar Equivalent amount in other currencies) and provided further that no Event of Termination shall be deemed to have occurred under this Section 7.01 (e) if the failure to pay or perform under the relevant agreement is waived,
rescinded or annulled in writing by the relevant creditor(s); or 
  
 (f) Any purchase or any reinvestment pursuant to this Agreement shall for any reason (other than pursuant to the terms hereof) cease to create, or any Receivable Interest shall for any reason cease to be, a valid and perfected first
priority undivided percentage ownership or security interest in each Pool Receivable, or the security interest created pursuant to Section 2.11 shall for any reason cease to be a valid and perfected first priority security 

  

 49 

 
interest in the Pool Receivables (unless such defect in creation, perfection or priority relates solely to one or more specific Pool Receivables and the
Seller either (i) cures such defect or (ii) pays a deemed Collection on account of such Pool Receivables pursuant to Section 2.04(e)(ii), in each case within two Business Days after the first date on which the Seller obtains actual knowledge of such
defect); or 
  
 (g) The Seller, the Parent, any Servicer (if it is
the Parent or an Affiliate of the Parent) or any Originator shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of
creditors; or any proceeding shall be instituted by or against the Seller, the Parent, any Servicer (if it is the Parent or an Affiliate of the Parent) or any Originator seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or arrangement of debts, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such
proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian
or other similar official for, it or for any substantial part of its property) shall occur; or any receiver, trustee, custodian or other similar official for the Seller, the Parent, any Servicer (if it is the Parent or an Affiliate of the Parent) or
any Originator or for any substantial part of its property shall be appointed, whether under private right or pursuant to any such proceeding; or the Seller, the Parent, any Servicer (if it is the Parent or an Affiliate of the Parent) or any
Originator shall take any corporate action to authorize any of the actions set forth above in this subsection (g); or 
  
 (h) The sum of the Receivable Interests, each expressed as a percentage, shall be greater than the Maximum Purchaser Interest as of the last Business Day
of any week and shall continue to be greater than the Maximum Purchaser Interest for two Business Days immediately following such day; or 
  
 (i) There shall have occurred any event which is reasonably expected to materially adversely affect the collectibility of the Receivables Pool generally
or the ability of the Seller, the Parent, any Originator or any Servicer to collect Pool Receivables or otherwise perform its obligations under the Transaction Documents (it being understood and agreed that (i) a downgrade in the Debt Rating of the
Parent, alone and in and of itself, shall not constitute a material adverse effect on the ability of the Parent to perform its obligations under the Transaction Documents and (ii) any deterioration in the credit quality of the Obligors is not an
event which may form the basis of an Event of Termination under this subsection (i)); or 
  
 (j) An “Event of Termination” or “Facility Termination Date” shall occur under the Originator Purchase Agreement, or the Originator Purchase Agreement shall cease to be in full force and effect; or

  
 (k) All of the outstanding limited liability company interests
of the Seller shall cease to be owned, directly or indirectly, by the Parent or the Originators; or at least 51% of the 

  

 50 

 
outstanding capital stock of the Originators (other than the Parent) shall cease to be owned, directly or indirectly, by the Parent; or 
  
 (1) Pursuant to a final judgment for an amount in excess of U.S.$5,000,000
(or the Dollar Equivalent amount in other currencies), a seizure, attachment, execution or any similar process is levied or enforced against the whole or a material portion of the assets of the Parent or any Originator and remains unsatisfied or is
not stayed or lifted within 45 days, unless such process is in good faith disputed by the Parent or such Originator and, if it be so disputed, non-payment shall not, in the reasonable opinion of the Operating Agent, have a material adverse effect on
the ability of the Parent or such Originator to perform its obligations under any Transaction Document or the interest of the Operating Agent or any Investor in any significant portion of the Pool Receivables; or 
  
 (m) (i) the Parent or Bombardier Motor shall fail to make any payment
required by its Undertaking, or (ii) the Parent or Bombardier Motor shall fail to perform or observe any other term, covenant or agreement contained in its Undertaking and any such failure shall remain unremedied for 10 Business Days after written
notice thereof shall have been given to the Seller by the Operating Agent, or (iii) either Undertaking shall cease to be in full force and effect; or 
  
 (n) After the date hereof, any Investor or the Operating Agent shall determine, acting reasonably, that it has or is deemed to have a permanent
establishment within Canada, Finland, Norway or Sweden solely or primarily as a result of the transactions contemplated hereby or any act or failure to act of the Seller or any Servicer; or 
  
 (o) A Default by Parent or Bombardier Motor shall occur under and as defined
in the Strategic Alliance Exclusivity Agreement dated as of December 18, 2003 among the Parent, Bombardier Motor, BCL and BCI. 
  
 then, and in any such event, any or all of the following actions may be taken by notice to the Seller: the Investors or the Operating Agent may declare the Facility
Termination Date to have occurred (in which case the Facility Termination Date shall be deemed to have occurred), and the Operating Agent may designate another Person or Persons to succeed any or all Originators as Servicer and Parent Servicer;
provided, that, automatically upon the occurrence of any event (without any requirement for the passage of time or the giving of notice) described in paragraph (g) of this Section 7.01, the Facility Termination Date shall occur, each
Originator (if it is then serving as a Servicer) shall cease to be a Servicer, and the Operating Agent or its designee shall replace each Servicer and become each Servicer and the Parent Servicer. Upon any such declaration or designation or upon
such automatic termination, the Investors and the Operating Agent shall have, in addition to the rights and remedies which they may have under this Agreement, all other rights and remedies provided after default under the UCC, the PPSA and under
other applicable law, which rights and remedies shall be cumulative. 
  

 51 

 ARTICLE VIII 
  
 THE OPERATING AGENT 
  
 SECTION 8.01. Authorization and Action. Each Investor hereby appoints and authorizes the Operating Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement as are delegated to the Operating Agent by the terms hereof, together with such powers as are reasonably incidental thereto. 
  
 SECTION 8.02. Operating Agent’s Reliance. Etc. Neither the Operating Agent nor any of its directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken by it or them as Operating Agent under or in connection with this Agreement (including, without limitation, the Operating Agent’s servicing, administering or
collecting Pool Receivables as Servicer) or any other Transaction Document, except for its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, the Operating Agent: (a) may consult with legal counsel
(including counsel for the Seller, the Originators, the Parent and the Servicers), independent certified public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (b) makes no warranty or representation to any Investor (whether written or oral) and shall not be responsible to any Investor for any statements, warranties or representations
(whether written or oral) made in or in connection with this Agreement or any other Transaction Document; (c) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of the Seller, the Parent, an Originator or a Servicer or to inspect the property (including the books and records) of the Seller, an Originator or a Servicer; (d) shall not be responsible to any Investor for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or document furnished pursuant hereto; and (e) shall incur no liability under or in respect of this Agreement or any other Transaction
Document by acting upon any notice (including notice by telephone), consent, certificate or other instrument or writing (which may be by telecopier or telex) believed by it to be genuine and signed or sent by the proper party or parties. 

 
 SECTION 8.03. Business with Seller, any Servicer or any Obligor.
The Operating Agent and any of its Affiliates may generally engage in any kind of business with the Seller, a Servicer or any Obligor, any of their respective Affiliates and any Person who may do business with or own securities of the Seller, a
Servicer, the Parent, any Originator or any Obligor or any of their respective Affiliates, all as if the Operating Agent were not the Operating Agent and without any duty to account therefor to the Investors. 
  
 SECTION 8.04. Investor’s Purchase Decision. Each Investor
acknowledges that it has, independently and without reliance upon the Operating Agent, any of its Affiliates or any other Investor and based on such documents and information as it has deemed appropriate, made its own evaluation and decision to
enter into this Agreement. Each Investor also acknowledges that it will, independently and without reliance upon the Operating Agent, any of its Affiliates or any other Investor and based on such documents and information as it shall deem 

  

 52 

 
appropriate at the time, continue to make its own decisions in taking or not taking action under this Agreement. 
  
 ARTICLE IX 
  
 INDEMNIFICATION 
  
 SECTION 9.01. Indemnities by the Seller. Without limiting any other rights that the Operating Agent, the Investors, any of their respective
Affiliates or any of their respective officers, directors, employees or advisors (each, an “Indemnified Party”) may have hereunder or under applicable law, the Seller hereby agrees to indemnify each Indemnified Party from and
against any and all claims, losses and liabilities (including reasonable attorneys’ fees) (all of the foregoing being collectively referred to as “Indemnified Amounts”) arising out of or resulting from this Agreement or the
other Transaction Documents or the use of proceeds of purchases or reinvestments or the ownership of Receivable Interests or in respect of any Receivable or any related Contract, excluding, however, (a) Indemnified Amounts to the extent resulting
from gross negligence or willful misconduct on the part of such Indemnified Party, (b) recourse (except as otherwise specifically provided in this Agreement) for Receivables which are not collected, not paid or uncollectible solely on account of the
insolvency, bankruptcy or financial inability to pay of the applicable Obligor, (c) any income taxes or any other tax or fee measured by net income incurred by such Indemnified Party arising out of or as a result of this Agreement or the ownership
of Receivable Interests or in respect of any Receivable or any related Contract, unless it arises as a result of a breach by the Seller of this Agreement, including Section 6.02(j), or (d) Indemnified Amounts arising out of disputes solely among the
Indemnified Parties, including a dispute between an Indemnified Party and any Person to which such Indemnified Party assigns rights and obligations under this Agreement. Without limiting or being limited by the foregoing, but subject to the
exclusions set forth in clauses (a), (c) and (d) above, the Seller shall pay on demand to each Indemnified Party any and all amounts necessary to indemnify such Indemnified Party from and against any and all Indemnified Amounts relating to or
resulting from any of the following: 
  
 (i) the
characterization in any Seller Report or other written statement made by or on behalf of the Seller of any Receivable as an Eligible Receivable or as included in the Net Receivables Pool Balance which, as of the date of such Seller Report or other
statement, is not an Eligible Receivable or should not be included in the Net Receivables Pool Balance; 
  
 (ii) any representation or warranty or statement made or deemed made by the Seller (or any of its officers) under or in connection with
this Agreement or any of the other Transaction Documents which shall have been incorrect in any material respect when made; 
  
 (iii) the failure by the Seller or the relevant Originator to comply with any applicable law, rule or regulation with respect to any Pool
Receivable or the related Contract; or the failure of any Pool Receivable or the related Contract to conform to any such applicable law, rule or regulation; or the failure by the Seller 

  

 53 

 
or the relevant Originator to pay, remit or account for any taxes related to or included in a Receivable, when due; 
  
 (iv) the failure to vest in the Investors (a) a perfected
undivided percentage ownership or security interest, to the extent of each Receivable Interest, in the Receivables in, or purporting to be in, the Receivables Pool and the Collections in respect thereof, or (b) a perfected security interest as
provided in Section 2.11, in each case free and clear of any Adverse Claim; 
  
 (v) the failure to have filed or sent, or any delay in filing or sending, financing statements, notices or other similar instruments or documents under the UCC, Quebec law, or the PPSA of any applicable jurisdiction
or other applicable laws with respect to any Receivables in, or purporting to be in, the Receivables Pool and Collections in respect thereof, whether at the time of any purchase or reinvestment or at any subsequent time; or the failure to have
properly notified any Obligor of the transfer, sale or assignment of any Receivable pursuant to the Transaction Documents, to the extent such notice is required to perfect the same under Finnish law, Norwegian law or Swedish law; for purposes of
this clause (v), “perfect” under Finnish law, Norwegian law and Swedish law means to render opposable, publish and allow the setting up of the purchaser’s interest in, and right to collect payment under, the assets which are the
subject of such transfer, sale and assignment, and to make opposable, publish and allow the setting up of such transfer, sale and assignment as against Obligors and other third parties, including any trustee in bankruptcy; provided,
however, that, for the purposes of this clause (v), “perfect” shall not include the actions referred to in clause (i) to the first proviso to the first sentence of Section 6.02; 
  
 (vi) any dispute, claim, offset or defense (other, than
discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable in, or purporting to be in, the Receivables Pool (including, without limitation, a defense based on such Receivable or the related Contract not being a legal,
valid and binding obligation of such Obligor enforceable against it in accordance with its terms), but only to the extent the Seller has not paid a deemed Collection on account of such Receivable pursuant to Section 2.04(e); 
  
 (vii) the inclusion as a Pool Receivable in any Seller
Report or other written statement made by or on behalf of the Seller of any receivable which is an Excluded Receivable as of the date of such Seller Report or other statement; 
  
 (viii) any products liability or other claim arising out of or in connection with merchandise or services
which are the subject of any Contract relating to a Pool Receivable; 
  
 (ix) the commingling of Collections of Pool Receivables at any time with other funds; 
  

 54 

 (x) any investigation, litigation or proceeding (brought by a Person other than an
Indemnified Party) related to this Agreement or the use of proceeds of purchases or reinvestments or the ownership of Receivable Interests or in respect of any Receivable or Related Security or related Contract; 
  
 (xi) any failure of the Seller to perform and comply with
its covenants and obligations contained in this Agreement or any other Transaction Document; 
  
 (xii) any claim brought by any Person other than an Indemnified Party arising from any activity by the Seller or any Affiliate of the
Seller in servicing, administering or collecting any Receivable; 
  
 (xiii) any claim arising out of any failure by the Seller or the relevant Originator to obtain a consent from the relevant Obligor to the transfer, sale or assignment of any Receivable pursuant to the Transaction
Documents; 
  
 (xiv) any claim for GST, PST, VAT
or United States sales tax. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 SECTION 10.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or consent to any departure
by the Seller, any Originator or any Servicer therefrom shall be effective unless in a writing signed by the Operating Agent, as agent for the Investors (and, in the case of any amendment, also signed by the Seller and the Originators;
provided, however, that the signatures of the Seller and the Originators shall not be required for the effectiveness of any amendment which modifies the representations, warranties, covenants or responsibilities of the Servicers at any
time when no Servicer is the Parent or an Affiliate of an Originator or a successor Servicer is, or successor Servicers are, designated by the Operating Agent pursuant to Section 6.01; provided that any such amendment shall not affect the rights or
obligations of the Parent or any other Originator in its prior capacity as a Servicer), and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and signed by the Servicers in addition to the Operating Agent, affect the rights or duties of the Servicers under this Agreement. No failure on the part of the Investors
or the Operating Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of
any other right. 
  
 SECTION 10.02. Notices, Etc. All
notices and other communications hereunder shall, unless otherwise expressly stated herein, be in writing (which shall include facsimile communication) and faxed or delivered, to each party hereto, at its address set forth under its name on Schedule
II hereto or at such other address as shall be designated by such party in a written notice to the other parties hereto. Notices and communications by facsimile shall be effective when sent (and shall be followed by hard copy sent by regular mail),
and notices and communications sent by other means shall be effective when received. 
  

 55 

 SECTION 10.03. Assignability. (a) Each Investor may assign to any Eligible Assignee or to any
other Investor all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Investor Commitment and any Receivable Interests or interests therein owned by it). The parties to each such
assignment shall execute and deliver to the Operating Agent an Assignment and Acceptance, and the assignor shall notify the Seller of such assignment. In addition, any Investor may assign any of its rights (including, without limitation, rights to
payment of Capital and Yield) under this Agreement to any Federal Reserve Bank without notice to or consent of the Seller or the Operating Agent. 
  
 (b) This Agreement and the rights and obligations of the Operating Agent herein shall be assignable by the Operating Agent and its successors and assigns;
provided, however, that the Operating Agent agrees that it will not assign of its own volition such rights and obligations to any Person other than an Affiliate unless: 
  
 (i) in the reasonable judgment of the Operating Agent, the Operating Agent determines that continued service
by it (or its Affiliate) as Operating Agent hereunder would be inconsistent with, or otherwise materially disadvantageous under, applicable legal, tax or regulatory restrictions, or 
  
 (ii) an Event of Termination or Incipient Event of Termination shall have occurred and be continuing, or

  
 (iii) the Seller shall have consented to such
assignment (such consent not to be unreasonably withheld or delayed). 
  
 (c) The Seller may not assign its rights or obligations hereunder or any interest herein without the prior written consent of the Operating Agent. 
  
 (d) This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 

 
 SECTION 10.04. Costs and Expenses. In addition to the rights of
indemnification granted under Section 9.01 hereof, the Seller agrees to pay on demand (i) all reasonable costs and expenses of the Operating Agent in connection with the preparation, execution and delivery of this Agreement and the other documents
and agreements to be delivered hereunder, and any amendments or waivers of such agreements, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Operating Agent, BCI and their respective Affiliates with
respect thereto and with respect to advising the Operating Agent, BCI and their respective Affiliates as to their rights and remedies under this Agreement following the occurrence of an Event of Termination or an Incipient Event of Termination, and
(ii) all costs and expenses, if any (including reasonable counsel fees and expenses), of the Operating Agent, the Investors and their respective Affiliates, in connection with the enforcement of this Agreement and the other documents and agreements
to be delivered hereunder. 
  
 SECTION 10.05. Waiver of
Consequential Damages. Each of the Originators, the Servicers and the Seller agree that no Indemnified Party shall have any liability 

  

 56 

 
to them or any of their securityholders or creditors in connection with this Agreement, the other Transaction Documents or the transactions contemplated
thereby on any theory of liability for any special, indirect, consequential or punitive damages (including, without limitation, any loss of profits, business or anticipated savings). 
  
 SECTION 10.06. Confidentiality. (a) Subject to Section 10.06(c), the Seller, each Originator and each Servicer each
agrees to maintain the confidentiality of the terms of this Agreement in communications with third parties; provided that this Agreement and its terms may be disclosed (i) to third parties to the extent such disclosure is made pursuant to a
written agreement of confidentiality in form and substance reasonably satisfactory to the Operating Agent, (ii) to the legal counsel of the Seller, the Originators, the Parent and the Servicers if they are advised by the Seller of the confidential
nature of such information, (iii) to the extent required by applicable law or regulation or legal process or by any court, securities exchange, regulatory body or agency having jurisdiction over such party, (iv) to the auditors of Seller, the Parent
or the Originators if they are advised of the confidential nature of such information, (v) as may be required by applicable accounting and auditing requirements, (vi) as may be necessary to obtain consents from any Obligor or other Person, or to
perfect any ownership or security interest under the Transaction Documents or (vii) as may be necessary to perform any of their obligations or enforce any of their rights under any Transaction Document; and provided, further, that such
party shall have no obligation of confidentiality in respect of any information which may be generally available to the public or becomes available to the public through no fault of such party or which is provided to such party by a third party not
known to be under any duty of confidentiality. The Seller, each Originator and each Servicer shall be permitted to disclose the fact of the existence of this Agreement, and that they are parties to the transactions contemplated hereby. 

 
 (b) Subject to Section 10.06(c), each Investor and the Operating Agent
agrees to maintain the confidentiality of, and not to disclose to other Persons, all information with respect to the Seller, the Originators, the Parent or the Receivables Pool and the related Contracts (including the Seller Reports and other
information) furnished or delivered to it pursuant to this Agreement until such information shall have become public or is furnished by a person not known to be under an obligation of confidentiality; provided, however, that each
Investor and the Operating Agent may disclose such information (i) to each other, (ii) to the extent required by law or pursuant to subpoenas or other court order or legal process (provided that, to the extent reasonably practicable (and to
the extent such disclosure is not as a result of an examination by any bank examiner or regulatory body having jurisdiction over the disclosing party), the disclosing party shall give the Parent advance notice of such disclosure and the Parent shall
be permitted, at the Parent’s sole cost and expense, to resist such disclosure by appropriate legal proceedings), (iii) to governmental agencies, bank examiners and regulatory bodies having jurisdiction over it, to the extent such disclosure is
required or requested, (iv) to its auditors, accountants or attorneys (provided that the Investor or Operating Agent, as the case may be, shall advise such persons of the confidential nature of such information), (v) subject to compliance
with Section 10.03, to any potential assignee of its rights or obligations hereunder which has agreed to be bound by the provisions of this Section 10.06(b) (provided that no such disclosure shall be made pursuant to this clause (v) to any
potential participant or assignee which is a Competitor), (vi) to the rating agencies and the providers of credit enhancement or liquidity for 

  

 57 

 
each Investor, (vii) as may be necessary to enforce this Agreement or any other Transaction Document and (viii) to the extent such information was known to
BCI prior to December 2003 and may be disclosed in accordance with Section 6.11 of the Bombardier Inc. Purchase Agreement. The furnishing of information to any third party pursuant to any of the foregoing exceptions shall not relieve the Investors
or Operating Agent from their confidentiality obligations with respect to their subsequent use of that or any other information. 
  
 (c) The Parent, the Seller and each Originator (collectively, the “Seller Entities”) and the Operating Agent and each Investor
(collectively, the “Purchaser Entities”) hereby agree that, from the commencement of discussions with respect to the transaction contemplated by this Agreement and the other Transaction Documents (the “Transaction”), each
Seller Entity and each Purchaser Entity (and each of their respective, and their respective affiliates’, employees, officers, directors, advisors, representatives and agents) are permitted to disclose to any and all persons, without limitation
of any kind, the structure and tax aspects (as such terms are used in Internal Revenue Code Sections 6011, 6111 and 6112 and the regulations promulgated thereunder) of the Transaction, and all materials of any kind (including opinions or other tax
analyses) that are provided to any Seller Entity or Purchaser Entity related to such structure and tax aspects. In this regard, each Seller Entity and Purchaser Entity acknowledges and agrees that the disclosure of the structure or tax aspects of
the Transaction is not limited in any way by an express or implied understanding or agreement, oral or written (whether or not such understanding or agreement is legally binding). Furthermore, each Seller Entity and Purchaser Entity acknowledges and
agrees that it does not know or have reason to know that its use or disclosure of information relating to the structure or tax aspects of the Transaction is limited in any other manner (such as where the Transaction is claimed to be proprietary or
exclusive) for the benefit of any other person. To the extent that disclosure of the structure or tax aspects of the Transaction by any Seller Entity or Purchaser Entity is limited by any existing agreement between any Seller Entity and any
Purchaser Entity, such limitation is agreed to be void ab initio and such agreement is hereby amended to permit disclosure of the structure and tax aspects of the Transaction. 
  
 SECTION 10.07. GOVERNING LAW. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION,
EXCEPT TO THE EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE INTERESTS OF THE INVESTORS IN THE RECEIVABLES AND THE ORIGINATOR PURCHASE AGREEMENT ARE GOVERNED BY THE
LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
  
 SECTION 10.08. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and
the same agreement. 
  

 58 

 SECTION 10.09. Survival of Termination. The provisions of Sections 2.08, 2.09, 2.10, 6.07, 9.01,
10.04, 10.05 and 10.06 shall survive any termination of this Agreement. 
  
 SECTION 10.10. Consent to Jurisdiction. (a) Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York State or Federal court sitting in New York City in any action or proceeding arising out of or
relating to this Agreement, and each party hereto hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court.
The parties hereto hereby irrevocably waive, to the fullest extent they may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties hereto agree that a final judgment in any such action or
proceeding with respect to which there is no further right of appeal shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
  
 (b) Each of the Seller and Bombardier Motor (as an Originator and as a
Servicer) consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to it at its address specified in Section 10.02. Each of Bombardier Nordtrac AB, Bombardier Nordtrac AS,
Bombardier-Nordtrac Oy, the Parent and each Servicer (other than Bombardier Motor) consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to CT Corporation System, 111 Eighth Avenue,
New York, NY 10001, USA, or in any other manner permitted by applicable law. Nothing in this Section 10.10 shall affect (i) the right of the Investors or the Operating Agent to serve legal process in any other manner permitted by law or affect the
right of the Investors or the Operating Agent to bring any action or proceeding against the Seller, any Servicer or any Originator or any of their property in the courts of any other jurisdictions or (ii) the right of the Seller, any Servicer or any
Originator to serve legal process in any manner permitted by law or affect the right of the Seller, any Servicer or any Originator to bring any action or proceeding against the Investors or the Operating Agent or any of their property in the courts
of any jurisdiction. 
  
 (c) To the extent that Bombardier
Nordtrac AB, Bombardier Nordtrac AS, Bombardier-Nordtrac Oy, the Parent or any Servicer has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to
judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, each of Bombardier Nordtrac AB, Bombardier Nordtrac AS, Bombardier-Nordtrac Oy, the Parent and each Servicer hereby irrevocably waives such
immunity in respect of its obligations under this Agreement. 
  
 SECTION 10.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED OR DELIVERED PURSUANT HERETO. 
  

 59 

 SECTION 10.12. Judgment. (a) If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder in Dollars into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking
procedures the Operating Agent or its assigns could purchase Dollars with such other currency at New York, New York on the Business Day preceding that on which final judgment is given. 
  
 (b) The obligations of the Seller, each Servicer and each Originator (each, a “Payor”) in respect of any
sum due from such Payor to the Investors or the Operating Agent (each, a “Recipient”) hereunder shall, notwithstanding any judgment in a currency other than Dollars, be discharged only to the extent that on the Business Day
following such Recipient’s receipt of any sum adjudged to be so due in such other currency, such Recipient may, in accordance with normal banking procedures purchase (and remit in New York) Dollars with such other currency; if the Dollars so
purchased and remitted are less than the sum originally due to such Recipient in Dollars, the relevant Payor agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the relevant Recipient against such loss, and if the
Dollars so purchased exceed the sum originally due to the relevant Recipient in Dollars, the relevant Recipient agrees to remit to the relevant Payor such excess. 
  
 SECTION 10.13. Entire Agreement. This Agreement (including the Schedules and Annexes relating hereto) and the other
Transaction Documents constitute the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the
subject matter of this Agreement. 
  
 SECTION 10.14.
Language. This Agreement and all related documents have been written in the English language at the express request of the parties. Le présent contrat ainsi que tous les documents s’y rattachant ont été
rédigés en anglais á la demande expresse des parties. 
  

 60 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers
thereunto duly authorized, as of the date first above written. 
  

									
	 SELLER:
	 	 	 	 BRP RECEIVABLES FUNDING, LLC

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

			
	 INVESTOR:
Percentage: 100%
	 	 	 	 BOMBARDIER CAPITAL INC.

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

			
	 OPERATING AGENT:
	 	 	 	 BOMBARDIER CAPITAL INC.,
 as Operating Agent

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 PARENT SERVICER AND
 ORIGINATOR:
	 	 	 	 BOMBARDIER RECREATIONAL PRODUCTS INC.

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

			
	 SERVICER AND
 ORIGINATOR:
	 	 	 	 BOMBARDIER MOTOR CORPORATION OF AMERICA

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

			
	 SERVICER AND
 ORIGINATOR:
	 	 	 	 BOMBARDIER NORDTRAC AB

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

			
	 SERVICER AND
 ORIGINATOR:
	 	 	 	 BOMBARDIER NORDTRAC AS

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 SERVICER AND
 ORIGINATOR:
	 	 	 	 BOMBARDIER-NORDTRAC OY

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

 SCHEDULE I 
  
 DEPOSIT ACCOUNTS 
  

					
	 Name and Address of
 Deposit Account Bank

	 	 Account Holders

	 	 Account Number

			
	 	 	 	 	 

  

 SCH I-1 

 SCHEDULE III 
  
 APPROVED OBLIGORS 
  
 [ATTACHED] 
  

 SCH III-1 

 ANNEX E 
  
 [Form of Funds Transfer Letter] 
  
 [Letterhead of the Seller] 
  
 [·], 2003 
  
 Bombardier Capital Inc., 
   as Operating Agent 
 [ADDRESS] 
 [ADDRESS] 
  

	 	Re:	Funds Transfers 

  
 Gentlemen: 
  
 This letter is the
Funds Transfer Letter referred to in Section 2.02(b) of the Receivables Purchase Agreement, dated as of December 18, 2003, as modified, amended or restated from time to time (the “RPA”; terms used in the RPA, unless otherwise defined
herein, having the meaning set forth therein) among the undersigned, Bombardier Capital Inc., you, as Operating Agent for the Investors, and Bombardier Motor Corporation of America, Bombardier Nordtrac AB, Bombardier Nordtrac AS, Bombardier-Nordtrac
Oy and Bombardier Recreational Products Inc., as Originators and Servicers. 
  
 You are hereby directed to deposit all funds representing amounts paid for Receivable Interests to [Account Number], at [Name, Address and ABA Number of Bank]. 
  
 The provisions of this Letter may not be changed or amended orally, but only
by a writing in substantially the form of this letter signed by the undersigned and acknowledged by you. 
  

			
	 Very truly yours,

	
	 BRP RECEIVABLES FUNDING, LLC

		
	By:	 	 
	 	 	 Title:

		
	By:	 	 
	 	 	 Title:

  

 E- 1 

			
	 Receipt acknowledged:
 BOMBARDIER CAPITAL
INC.,
 as Operating Agent

		
	By:	 	 
	 	 	[TITLE]

  

 E-2 

 ANNEX G 
  
 Form of Notices to Obligors and Invoice Legends  
  
 With Respect to Bombardier-Nordtrac Oy: 
  

Legend for Receivables (Finnish): 
  
 Bombardier-Nordtrac Oy on siirtänyt kaikki Teiltä olevat saatavansa, kaikkine niihin liittyvine oikeuksineen sekä siihen liittyvät
vakuudet ja niiden tuotto, BRP Receivables Funding, LLC:lle (“Siirronsaaja”). Kaikkiin näihin saataviin liittyvät maksusuoritukset tulee suorittaa Siirronsaajalle, ellette myöhemmin saa Siirronsaajalta muuta kirjallista
ohjetta. Maksu tulee suorittaa tilille numero [BANK AND ACCOUNT NUMBER]. 
  
 English translation: 
  
 Bombardier-Nordtrac Ltd. has transferred all of its claims towards you, including all rights related thereto and all related security and guaranties and all proceeds thereof, to BRP Receivables Funding, LLC (the “Purchaser”). All
payments pursuant to these receivable shall be made to the P urchaser u nless you receive written notice to the contrary from the Purchaser. Payment shall be made to [BANK AND ACCOUNT NUMBER], 
  
 Notice for Receivables (Finnish): 
  
 Ilmoitamme täten, että tämän laskun mukainen saatava,
sekä kaikki siihen liittyvät oikeudet sekä niihin liittyvät vakuudet ja niiden tuoton, on siirretty BRP Receivables Funding, LLC:lle (“Siirronsaaja”). Saatavaan liittyvät maksusuoritukset tulee suorittaa
Siirronsaajalle, ellette myöhemmin saa Siirronsaajalta muuta kirjallista ohjetta. Maksu tulee suorittaa tilille numero [BANK AND ACCOUNT NUMBER]. 
  
 English translation: 
  
 We hereby notify you that the receivable evidenced by the above-mentioned invoice, including all rights related thereto and all related security and
guaranties and all proceeds thereof, have been transferred to BRP Receivables Funding, LLC (the “Purchaser”). Payment pursuant to this receivable shall be made to the Purchaser unless you receive written notice to the contrary from the
Purchaser. Payment shall be made to [BANK AND ACCOUNT NUMBER]. 
  

 G-1 

 With Respect to Bombardier Nordtrac AB: 
  
 Legend for Receivables (Swedish): 
  
 Vi får härmed informera er om att denna faktura samt samtliga säkerheter och
garantier knutna till denna faktura, har överlåtits till BRP Receivables Funding, LLC (“Förvärvaren”). Betalning enligt denna faktura kan med befriande verkan enbart ske till Förvärvaren. Betalning kan inte
med befriande verkan ske till annan förutsatt att ni inte skriftligen informerats om annat av Förvärvaren, eller annan som företräder denne. Betalning skall erläggas till bankkonto nummer [l]. 
  
 English translation: 
  
 We hereby notify you that the receivable
evidenced by the above-mentioned invoice, all related security and guarantees and all proceeds thereof have been sold, assigned and transferred to BRP Receivables Funding, LLC (the “Purchaser”). Payment pursuant to this receivable shall be
made to the Purchaser unless you receive written notice to the contrary from the Purchaser or on its behalf. Payment shall be made to bank account no. [l]. 
  
 Notice for Receivables (Swedish):

  
 Bombardier Nordtrac AB har överlåtit alla sina fordringar mot er,
samt alla säkerheter och garantier knutna till dessa fordringar, till BRP Rececivables Funding, LLC (“Förvärvaren”). Betalning för dessa fordringar kan därför med befriande verkan enbart erläggas till
Förvärvarens bankkonto nummer [l]. 
  
 English translation: 
  
 Bombardier Nordtrac AB has transferred all its claims towards you to BRP Receivables Funding, LLC (the “Purchaser”) together with all related
securities and guarantees. Payment of these claims can therefore not be made to any other party than to the Purchaser’s bank account no. [l]. 
  
 With Respect to Bombardier
Nordtrac AS: 
  
 Legend for Receivables (Norwegian):

  
 Vi informerer Dem hermed om at denne faktura og samtlige
sikkerheter vi har i forhold t il D em e r o verført t il B RP R eceivables Funding, LLC (“Erververen”). Frigjørende betaling av denne faktura kan kun skje til Erververen med mindre De skriftlig informert om annet av
Erververen eller av noen som representerer Erververen. Betaling skal skje til bankkontonummer [l] 
  
 English translation: 
  
 We hereby notify you that the receivable e videnced by t his invoice, all
related security and guarantees and all proceeds thereof have been sold, assigned and 

  

 G-2 

 
transferred to BRP Receivables Funding, LLC (the “Purchaser”). Payment shall be made to bank account no. [l]. Payment of this invoice shall be made to the Purchaser unless you receive written notice to the contrary from the Purchaser or on its behalf. 
  
 Notice for Receivables (Norwegian): 
  
 Bombardier Nordtrac AS har overdraft alle sine fordringer mot Dem til BRP
Receivables Funding, LLC (“Erververen”) sammen med samtlige sikkerheter vi har i forhold ti Dem. Betaling av disse fordringer kan dermed kun skje med frigjørende virkning til Erververens bankkonto nr. [l]. 
  
 English translation: 
  
 Bombardier Nordtrac AS has transferred all of its claims towards you to BRP Receivables Funding, LLC (the “Purchaser”) together with all related securities and guaranties. Payment of these claims can therefore not be made to any
other party than to the Purchaser’s bank account 
  

 G-3Unanimous Shareholders Agreement among J.A. Bombardier

 Exhibit 10.16 
  
 Execution Copy 

  
 UNANIMOUS SHAREHOLDERS AGREEMENT 
  
 among 
  
 J.A. Bombardier (J.A.B.) Inc., 
  
 Bombardier Recreational Products Inc. 
  
 and 
  
 The Shareholders of J.A. Bombardier (J.A.B.) Inc.

  
 Dated as of December 18, 2003 
  

 TABLE OF CONTENTS 
  

					
	 1. EFFECTIVENESS; DEFINITIONS
	  	2
	 1. 1.
	  	 Effectiveness
	  	2
	 1. 2.
	  	 Definitions
	  	2
	 2. VOTING AGREEMENT AND SPECIAL GOVERNANCE AGREEMENT
	  	3
	 2.1.
	  	 Election of Board Members
	  	3
	 2.2.
	  	 Removal and Replacement
	  	7
	 2.3.
	  	 Election of Subsidiary Directors
	  	7
	 2.4.
	  	 Significant Transactions and Special Consent for Specified Actions
	  	7
	 2.5.
	  	 Quorum, Notice, etc.
	  	12
	 2.6.
	  	 Management Coinvestment Program; Management Options, etc.
	  	12
	 2.7.
	  	 Grant of Proxy
	  	13
	 3. TRANSFER RESTRICTIONS
	  	13
	 3.1.
	  	 Certain Permitted Transfers
	  	13
	 3.2.
	  	 Additional Rights to Transfer Investor Shares; Etc.
	  	15
	 3.3.
	  	 ROFO; Tag Alongs; and Drag Alongs
	  	16
	 3.4.
	  	 Public
	  	17
	 3.5.
	  	 Preferred Shares
	  	17
	 3.6.
	  	 Class B Common Shares
	  	17
	 3.7.
	  	 Indirect Transfers
	  	17
	 3.8.
	  	 Impermissible Transfer
	  	19
	 4. RIGHT OF FIRST OFFER; TAG ALONG AND DRAG ALONG RIGHTS
	  	19
	 4.1.
	  	 Right of First Offer
	  	19
	 4.2.
	  	 Tag Along
	  	23
	 4.3.
	  	 Drag - Along Sale
	  	26
	 4.4.
	  	 Miscellaneous
	  	29
	 4.5.
	  	 Special ROFO
	  	31
	 5. RIGHT OF PARTICIPATION (PREEMPTIVE RIGHT)
	  	34
	 5.1.
	  	 Right of Participation
	  	34
	 5.2.
	  	 Post-Issuance Notice
	  	37
	 5.3.
	  	 Excluded Transactions
	  	38
	 5.4.
	  	 Acquired Shares
	  	38
	 5.5.
	  	 Termination of Preemptive Rights
	  	38
	 6. INVESTOR GROUP REPRESENTATIVES
	  	38
	 6.1.
	  	 Investor Group Representatives
	  	38
	 6.2.
	  	 Authorization
	  	39
	 6.3.
	  	 Replacement
	  	39
	 6.4.
	  	 Action Binding on Investor Group
	  	39
	 6.5.
	  	 Right to Rely
	  	40
	 6.6.
	  	 Notice
	  	40
	 6.7.
	  	 Specific Enforcement
	  	40
	 7. REMEDIES
	  	40
	 7.1.
	  	 Generally
	  	40
	 7.2.
	  	 Deposit
	  	40

  

 -i- 

					
	 8. LEGENDS
	  	41
	 8.1.
	  	 Restrictive Legend
	  	41
	 9. AMENDMENT, TERMINATION, ETC.
	  	41
	 9.1.
	  	 Oral Modifications
	  	41
	 9.2.
	  	 Written Modifications
	  	41
	 9.3.
	  	 Term
	  	41
	 9.4.
	  	 Effect of Termination
	  	41
	 10. DEFINITIONS
	  	42
	 10.1.
	  	 Certain Matters of Construction
	  	42
	 10.2.
	  	 Definitions
	  	42
	 11. MISCELLANEOUS
	  	50
	 11.1.
	  	 Confidential Information; Special Information Rights
	  	50
	 11.2.
	  	 Committees
	  	51
	 11.3.
	  	 Further Assurances
	  	52
	 11.4.
	  	 Agreement to Redeem Class A Preferred Shares Upon IPO
	  	52
	 11.5.
	  	 Authority; Effect
	  	52
	 11.6.
	  	 Notices
	  	53
	 11.7.
	  	 Binding Effect, Other Agreements, Etc.
	  	55
	 11.8.
	  	 Descriptive Headings
	  	55
	 11.9.
	  	 Counterparts
	  	55
	 11.10
	  	 Severability
	  	55
	 12. GOVERNING LAW
	  	56
	 12.1.
	  	 Governing Law
	  	56
	 12.2.
	  	 Consent to Jurisdiction
	  	56
	 12.3.
	  	 Exercise of Rights and Remedies
	  	56

  

 -ii- 

 UNANIMOUS SHAREHOLDERS AGREEMENT 
  
 This Unanimous Shareholders Agreement (this “Agreement”) is made as of December 18, 2003 by and among:

  
 (i) J.A. Bombardier (J.A.B.) Inc., a corporation incorporated
under the CBCA (as hereinafter defined) (the “Corporation”); 
  
 (ii) Bombardier Recreational Products Inc., a corporation incorporated under the CBCA (“BRP”); 
  
 (iii) each Person executing this Agreement and listed as a Bain Investor on the signature pages hereto; 
  
 (iv) each Person executing this Agreement and listed as a Beaudier Group
Investor on the signature pages hereto; 
  
 (v) each Person
executing this Agreement and listed as a Caisse Investor on the signature pages hereto; 
  
 (vi) Bombardier Inc., a corporation incorporated under the CBCA (“Bombardier”); 
  
 (vii) such other Persons, if any, who from time to time become party to this Agreement as an Other Investor (on the terms and subject to the conditions
set forth in this Agreement) by executing a counterpart signature page hereof designating such Person as an “Other Investor” (collectively, the “Other Investors”); and 
  
 (viii) such other Persons who from time to time become party hereto by
executing a counterpart signature page hereof and are designated by the Board as “Managers” (the “Managers” and together with the Bain Investors, the Beaudier Group Investors, the Caisse Investors, Bombardier and the Other
Investors, the “Shareholders”). 
  
 Recitals 
  
 1. The Corporation, which was
formerly known as 6090851 Canada Inc., owns all of the outstanding shares of BRP. 
  
 2. BRP is party to that certain Purchase Agreement dated as of December 2, 2003 (as the same may be amended from time to time, the “Acquisition Agreement”) by and between BRP and Bombardier.

  
 3. At the Closing, BRP will acquire from Bombardier the
recreational products division of Bombardier and certain of its subsidiaries (including 4145321 Canada Inc.), on the terms and subject to the conditions of the Acquisition Agreement. 
  

 4. It is contemplated that the primary source of equity financing for the acquisition will be sales of
Class A Common Shares to the Bain Investors, the Beaudier Group Investors and the Caisse Investors. 
  
 5. A portion of such equity financing may be provided through the sale of Class B Common Shares to certain Managers (as contemplated by Section 2.6.1
hereof). It is also contemplated that from time to time the Corporation will issue Options to purchase Class B Common Shares to Managers (as contemplated by Section 2.6.1 hereof). 
  
 6. Pursuant to the Acquisition Agreement, the Corporation will issue to Bombardier, as part of the consideration for the
recreational products division, Class A Preferred Shares of the Corporation. 
  
 7. Immediately after the Closing, BRP and 4145321 Canada Inc. will be merged under the name of Bombardier Recreational Products Inc. 
  
 8. After giving effect to the above transactions, the Corporation’s Shares and all Options and Convertible Securities
will be held as set forth on Schedule 1 hereto. 
  
 9. The
parties believe that it is in the best interests of the Corporation and the Shareholders to set forth their agreement on certain matters, including the rules that Corporation’s shareholders wish to establish to govern the management of the
Corporation, as well as their relationship as shareholders of the Corporation and the transfer of their shares. 
  
 Agreement 
  
 Now, therefore, in consideration of the mutual covenants and agreements herein contained, the parties to this Agreement hereby agree and understand as follows: 
  
 1. EFFECTIVENESS; DEFINITIONS. 
  
 1.1. Effectiveness. This Agreement shall become effective upon the Closing. 
  
 1.2. Definitions. Certain terms are used in this Agreement as specifically defined herein. These definitions are set
forth or referred to in Section 10 hereof. 
  

 -2- 

 2. VOTING AGREEMENT AND SPECIAL GOVERNANCE AGREEMENT. 
  
 2.1. Election of Board Members. Each holder of Shares will cast all votes to which such holder is entitled in respect
of the Shares, by written consent, to: (i) fix the initial number of members of the board of directors of the Corporation (the “Board”) at thirteen members; and (ii) elect as the initial members of the Board the persons identified
on Schedule 2 hereto. In addition, each holder of Shares will thereafter cast all votes to which such holder is entitled in respect of the Shares, whether at any annual or special meeting, by written consent or otherwise, to fix the number of
members of the Board and to elect designees as follows: 
  
 2.1.1. The Investors will be entitled to designate members of the Board as follows: 
  
 2.1.1.1. The Bain Investors will be entitled to designate five (5) members of the Board; provided, however, that such number will
be reduced to three (3) at such time as the Bain Investors hold Class A Common Shares in an amount less than fifty percent (50%) of the Original Bain Shares and shall be reduced to zero at such time as the Bain Investors hold Class A Common Shares
in an amount less than ten percent (10%) of the Original Bain Shares. 
  
 2.1.1.2. Subject to Sections 2.1.1.4, 2.1.1.5 and 2.1.1.6, the Beaudier Group Investors will be entitled to designate three (3) members of the Board; provided, however, that, until such time as the Beaudier
Group Investors acquire all of the Original Caisse Shares, such number will be reduced to two (2) at such time as the Beaudier Group Investors hold Class A Common Shares (excluding any Caisse Acquired Shares) in an amount less than fifty percent
(50%) of the Original Beaudier Group Shares and shall be reduced to zero at such time as the Beaudier Group Investors hold Class A Common Shares (excluding any Caisse Acquired Shares) in an amount less than ten percent (10%) of the Original Beaudier
Group Shares. 
  
 2.1.1.3. The Caisse Investors
will be entitled to designate two (2) members of the Board; provided, however, that such number will be reduced to one (1) at such time as the Caisse Investors hold Class A Common Shares in an amount less than fifty percent (50%) of the
Original Caisse Shares and shall be reduced to zero at such time as the Caisse Investors hold Class A Common Shares in an amount less than ten percent (10%) of the Original Caisse Shares. Any and all members of the Board designated by the Caisse
Investors pursuant to this Section 2.1.1.3 will be Resident Canadians, during the period that the undertakings provided by the Corporation to the Minister responsible for the Investment Canada Act in connection with the Closing remain applicable and
for such additional time as may be necessary or appropriate to assure that the Corporation complies with provisions regarding Resident Canadian board representation under the CBCA or other applicable law. 
  
 2.1.1.4. If the Beaudier Group Investors acquire and hold,
pursuant to the right of first offer provisions of Section 4.1.4.2 or otherwise, more than 50% (but less than or equal to 90%) of the Original Caisse Shares (such shares acquired from the Caisse Investors from time to time, the “Caisse
Acquired Shares”), the Beaudier Group Investors shall be entitled to designate one (1) additional member of the Board in addition to the number of members they are entitled to pursuant to Section 2.1.1.2; provided, however,
such number will thereafter be reduced to zero if the Beaudier Group Investors Transfer Class A Common Shares in an aggregate amount greater than the difference between (A) the Caisse Acquired Shares and (B) 50% of the number of Original Caisse
Shares. This Section 2.1.1.4 shall not apply at any time when the Beaudier Group 

  

 -3- 

 
Investors have a right to designate any additional members to the Board pursuant to Section 2.1.1.5 or 2.1.1.6. 
  
 2.1.1.5. If the Beaudier Group Investors acquire and hold,
pursuant to the right of first offer provisions of Section 4.1.4.2 or otherwise, more than 90% (but less than 100%) of the Original Caisse Shares, the Beaudier Group Investors shall be entitled to designate two (2) additional members to the Board in
addition to the number of members they are entitled to pursuant to Section 2.1.1.2; provided, however, such number will thereafter be reduced to one, if the Beaudier Group Investors Transfer Class A Common Shares in an aggregate amount
greater than the difference between (A) the Caisse Acquired Shares and (B) 90% of the number of Original Caisse Shares and thereafter to zero if the Beaudier Group Investors Transfer Class A Common Shares in an aggregate amount greater than the
difference between (x) the number of Caisse Acquired Shares and (y) 50% of the number of Original Caisse Shares. This Section 2.1.1.5 shall not apply at any time when the Beaudier Group Investors have a right to designate additional members to the
Board pursuant to Section 2.1.1.4 or 2.1.1.6. 
  
 2.1.1.6. If the Beaudier Group Investors acquire and hold (pursuant to the right of first offer provisions of Section 4.1.4.2 or otherwise) all of the Original Caisse Shares (after which the provisions of Sections 2.1.1.4 and 2.1.1.5 will
no longer apply in any circumstance), the Beaudier Group Investors shall thereafter be entitled to designate two (2) members to the Board in addition to the members that they are then entitled to designate under Section 2.1.1.2; provided,
however, that notwithstanding Section 2.1.1.4 and 2.1.1.5, the total number of members that they are authorized to designate pursuant to Section 2.1.1.2 and this Section 2.1.1.6 shall be reduced to three (3) at such time as the Beaudier
Group Investors hold Class A Common Shares in an amount less than fifty percent (50%) of the aggregate number of Original Beaudier Group Shares and Original Caisse Shares; and shall be reduced to zero at such time as the Beaudier Group Investors
hold Class A Common Shares in an amount less than ten percent (10%) of the aggregate number of Original Beaudier Group Shares and Original Caisse Shares. 
  
 2.1.1.7. For purposes of the calculations of continuing ownership under Sections 2.1.1.2, 2.1.1.4, 2.1.1.5 and 2.1.1.6, any Class A Common
Shares issued upon conversion of the Class B Common Shares issued to the Beaudier Group Investors at Closing shall not be included as part of the Class A Common Shares held by the Beaudier Group Investors. 
  
 2.1.1.8. Any and all members of the Board designated by the
Beaudier Group Investors pursuant to Sections 2.1.1.2, 2.1.1.4, 2.1.1.5 and 2.1.1.6 will be Resident Canadians, during the period that the undertakings provided by the Corporation to the Minister responsible for the Investment Canada Act in
connection with the Closing remain applicable and for such additional time as may be necessary or appropriate to assure that the Corporation complies with 

  

 -4- 

 
provisions regarding Resident Canadian board representation under the CBCA or other applicable law. 
  
 2.1.2. The Investors (by action of the Majority Bain
Investors, the Majority Beaudier Group Investors and the Majority Caisse Investors, in each case participating only for so long as their Investor Group is entitled to designate at least one member to the Board pursuant to Section 2.1.1) will be
entitled to designate, collectively, three (3) independent members of the Board (or such greater number of independent board members as the Majority Investors may hereafter approve with the consent of all Investor Groups). The Investors will first
attempt to designate such independent members by approval of each Investor Group that is then entitled to designate at least one member to the Board pursuant to Section 2.1.1. 
  
 2.1.3. If the Investor Groups are unable to reach an agreement as to the selection of the three (3)
independent members of the Board pursuant to Section 2.1.2, the provisions of this Section 2.1.3 shall apply: 
  
 2.1.3.1. Subject to Section 2.1.3.4, the Bain Investors shall nominate three (3) individuals, the Beaudier Group Investors shall nominate
two (2) individuals and the Caisse Investors shall nominate one (1) individual member (collectively “Initial Independent Nominees”). Each Investor will select for such Initial Independent Nominees only individuals who meet the
criteria for independence set forth on Schedule 3. 
  
 2.1.3.2. Following such nominations, subject to Section 2.1.3.4, the Majority Bain Investors may reject two (2) of the Initial Independent Nominees, the Majority Beaudier Group Investors may reject one (1) of the
Initial Independent Nominees and the Majority Caisse Investors may reject one (1) of the Initial Independent Nominees. Such rejection rights will be exercised serially (to assure that no single nominee is rejected by more than one group of
Investors). If fewer than three (3) Initial Independent Nominees are so rejected, the Investors will continue to exercise the foregoing rejection rights (in the following order: first the Majority Bain Investors’ first rejection, then the
Majority Beaudier Group Investors’ rejection, then the Majority Caisse Investors’ rejection and finally the Majority Bain Investors’ second rejection) until only three (3) Initial Independent Nominees remain to serve as the
independent members of the Board. 
  
 2.1.3.3. If
four Initial Independent Nominees are rejected pursuant to Section 2.1.3.2, the two remaining Nominees will be designated as independent members of the Board and the third and final independent member will be selected pursuant to this Section
2.1.3.3. 
  
 (i) For consideration as the third
and final independent member of the Board, subject to Section 2.1.3.4, the Bain Investors shall nominate two (2) individuals, the Beaudier Group Investors shall nominate one (1) individual and the Caisse Investors shall nominate one (1) individual.
In making these nominations, the Investors will nominate 

  

 -5- 

 
individuals who were not included in the Initial Independent Nominees and who meet the criteria for independence set forth in Schedule 3. 

 
 (ii) The two independent members determined as described
in Section 2.1.3.2 will select from the nominees designated pursuant to clause (i) of Section 2.1.3.3, a third independent member, based on their assessment of the relevant business experience and personal attributes and of such other qualifications
of such nominees as such two independent members may deem relevant. The Corporation and the Investors will instruct these two independent members to use their best efforts to make their selection without inquiring into or becoming aware of which
Investor Groups nominated which of the individuals selected for consideration through the procedure described in clause (i) of this Section 2.1.3.3. 
  
 (iii) All parties will use their best efforts to assure that the two independent members who are to make the selection described in
clause (ii) of this Section 2.1.3.3 do not gain knowledge of which Investors or Investor Groups nominated which individuals in the procedure described in clause (i) of this Section 2.1.3.3. 
  
 2.1.3.4. Each Investor Group will lose its right to nominate
or reject prospective independent members of the Board or otherwise participate in the selection of independent members of the Board pursuant to this Section 2.1.3 at such time as that Investor Group no longer has any right to designate members of
the Board pursuant to Section 2.1.1; provided that if and so long as the Beaudier Group Investors shall be entitled to designate a second Beaudier Director to serve on the Executive Committee pursuant to Section 11.2, the Beaudier Group
Investors shall exercise the rights of the Caisse Investors under this Section 2.1.3. 
  
 2.1.3.5. All actions required to be taken by the Investors or Investor Groups under this Section 2.1.3 shall be taken as promptly as
reasonably practicable. 
  
 2.1.4. In the event
of any reduction in the aggregate number of members of the Board that the Investors are entitled to designate (as provided in Sections 2.1.1), the size of the Board will be correspondingly reduced. In the event of any increase in the number of
independent members of the Board (as provided in Section 2.1.2) the size of the Board will be correspondingly increased. 
  
 2.1.5. If, in connection with an Initial Public Offering, the underwriters shall assert on reasonable grounds that an increase in the size
of the Board or change in the manner of selecting its members from the procedures set forth in this Section 2.1 would substantially increase the price realized in or size of such offering, such changes will be made in such manner as any two Investor
Groups shall reasonably determine effects the minimum change necessary to substantially mitigate the concerns asserted by the underwriters. 
  

 -6- 

 2.1.6. Each holder of Shares will cast all votes to which such holder is entitled with
respect to such Shares, whether at any annual or special meeting by written consent or otherwise, to fix the size of the Board and elect its members as provided in the foregoing provisions of this Section 2.1. 
  
 2.2. Removal and Replacement. Members of the Board designated by a
particular Investor Group may only be removed by such Investor Group; except that any Resident Canadian who is so designated will be promptly removed and replaced with a Resident Canadian by the appropriate Investor Group if such member ceases to be
a Resident Canadian (unless otherwise approved by all Investor Groups). Members of the Board designated by the Investors as a whole (i.e., those member who are either listed as independent directors on Schedule 2 of this Agreement or designated
pursuant to Section 2.1.2 or Section 2.1.3) may only be removed with the consent of all Investor Groups and may only be replaced either with the approval of all Investor Groups or, in the absence of such approval, through the mechanics provided in
Section 2.1.3. If, prior to his or her election to the Board, any designee of any Investor Group (or all Investor Groups, as the case may be) is unable or unwilling to serve as a member of the Board, then such Investor Group (or all Investor Groups
acting together, as applicable) will be entitled to designate a replacement. If, following election to the Board, any designee of a particular Investor Group (or of all Investor Groups) resigns, is removed, or is unable to serve for any reason prior
to the expiration of his or her term as a member of the Board, then such Investor Group (or all Investor Groups, as applicable) shall designate a replacement. 
  

2.3. Election of Subsidiary Directors. The Corporation will cause the board of directors of BRP to consist at all times of the same members as
the Board at such time. The Board shall determine the composition of the board of directors of any other subsidiary of the Corporation, provided that if at any time an Investor Group becomes entitled to nominate or designate members of the
board of any other subsidiary of the Corporation (or if such Investor Group’s nominee is de facto appointed to such board of directors), then all other Investor Groups that then have a right under Section 2.1 to designate members of the
Board will be provided rights to designate members of the board of such subsidiary and the board of such subsidiary will be comprised as agreed by all Investor Groups then entitled to designate members of the Board (but if all Investor Groups fail
to so agree the Corporation will, at the request of any Investor Group, cause the board of such other subsidiaries to consist of the same members as the Board at such time). The Corporation will cause its subsidiaries to comply with these
requirements. 
  
 2.4. Significant Transactions and Special
Consent for Specified Actions. 
  
 2.4.1.
Subject to Section 11.2, all decisions, including the following, with respect to the Corporation, BRP or their respective subsidiaries, will require (in addition to any approvals required under the CBCA) the approval of at least a majority of the
entire Board described above: 
  
 (i) subject to
Section 2.4.5 below (with respect to the initial chief executive officer and initial chief financial officer of the Corporation and BRP), the appointment and removal of the chief executive officer and the appointment and removal of the chief
financial officer; 
  

 -7- 

 (ii) an Initial Public Offering, whether a primary or secondary offering, and any issue
of additional shares from treasury in a Public Offering at any time; 
  
 (iii) any capital transactions, including those involving either (i) issuances, repurchases or guarantees of debt (including capital lease obligations) in an amount greater than Cdn. $5 million in any twelvemonth
period or in any series of related transaction or (ii) or issuance or repurchases of equity in any amount or (iii) interest rate or currency swap or hedging transactions or investments in or writing of derivative contracts that involve potential
exposure in excess of Cdn. $5 million; 
  
 (iv)
acquisitions of assets or businesses otherwise than in the ordinary course of business regardless of the form of the transaction including, without limitation, mergers, amalgamations, arrangements or consolidations; 
  
 (v) any restructuring, reorganization, winding up or
dissolution, or seeking relief under any law relating to bankruptcy or insolvency, regardless of the form of the transaction including, without limitation, mergers, amalgamations, arrangements or consolidations; 
  
 (vi) closing of a division or line of business, or
dispositions of assets or businesses otherwise than in the ordinary course of business regardless of the form of transaction including, without limitation, mergers, amalgamations, arrangements or consolidations; 
  
 (vii) any amendment to the articles of incorporation or by-
laws (or equivalent constating documents); 
  
 (viii) declaration or payment of dividends or distributions or approval or change of any dividend policy; 
  
 (ix) approval of the annual operating and capital budgets and strategic plan and any material amendments thereto, including revenue, free
cash flow and profit objectives and approval of any transaction not reflected in an approved budget; 
  
 (x) any material change in the nature of any of the lines of business otherwise than by acquisition or disposition (which acquisition or
disposition has been separately approved by the Board if and to the extent such approval would be required by clause (iv), (v) or (vi) above); 
  
 (xi) subject to Section 2.4.1.3, any contract, agreement or commitment between the Corporation, BRP or any of their respective
subsidiaries (on the one hand), and any Shareholder, officer or Affiliate of any Shareholder or officer or other person who does not deal at arm’s length with either the Company or any Shareholder (on the other hand); 

  

 -8- 

 
provided, however, that this clause (xi) is not intended and should not be construed to require Board approval of ordinary course transactions among
the Corporation and any direct or indirect wholly-owned subsidiaries of the Corporation; 
  
 (xii) subject to Section 2.6.1, any equity based management incentive plans; 
  
 (xiii) any establishment of a direct or indirect subsidiary
which is not a wholly-owned subsidiary; 
  
 (xiv) selection of the auditors; 
  
 (xv) appointment of (a) any directors or similar governing body of any Significant Subsidiary or (b) any directors or similar governing body of any other direct or indirect subsidiary of the Corporation; and 
  
 (xvi) the establishment or selection of the members of any
committee of directors (other than the Executive Committee, which will be established and selected as provided in Section 11.2). 
  
 2.4.1.2. The Board may delegate to specified officers authority to conduct day-to-day operations of the Corporation and its subsidiaries
(other than actions of the types specifically identified in clauses (i) through (xvi) of Section 2.4.1, which must be approved by a majority of entire Board or the Executive Committee as contemplated by Sections 2.4.1 and 11.2) pursuant to, and
subject to such limitations and further approval or control mechanics as may be included in, resolutions approved by a majority of the entire Board. Such resolutions may only be amended, repealed or otherwise modified with the approval of a majority
of the entire Board. 
  
 2.4.1.3. In connection
with actions taken by the Board or the Executive Committee with respect to interested party transactions of the type specified in clause (xi) of Section 2.4.1 (including any proposal to assert or settle any claim against Bombardier or any of its
Affiliates with respect to the Acquisition Agreement or any other agreement, or to waive or amend any rights under the Acquisition Agreement or any other agreements entered into with Bombardier or any of its Affiliates), any member of the Board (or
Executive Committee, as the case may be) who is an Affiliate of or who has any material interest in such other party will have a reasonable opportunity to participate in deliberations with respect to such matters but will declare such interest and
refrain from voting on such matter, in which case the approval of the Board on any such matter will be deemed to have been satisfied with the approval of a majority of the other members of the Board. 
  
 2.4.1.4. The Corporation will cause its subsidiaries to
comply with the requirements of this Section 2.4.1 and of Section 2.4.2 to the extent such requirements are by their terms applicable to subsidiaries. 
  

 -9- 

 2.4.2. In addition, for so long as any Investor Group (together with its Affiliates)
holds Class A Common Shares in an amount not less than 50% of the Class A Common Shares held by such Investor Group as of the Closing (including, for such purposes, any Class A Common Shares issued to such Investor Group within three (3) months of
the Closing pursuant to the Subscription Agreement), the affirmative vote or consent by the holders of a majority of the Shares held by such Investor Group (the “Special Shareholder Approval”) shall be required for the actions
described in the clauses (v), (vi), (vii), (x), (xi), (xv)(a) and (xvi) of Section 2.4.1; provided, however, that: 
  
 (i) such Special Shareholder Approval shall not be required if (A) such actions are taken after the fourth anniversary of the Closing, or
(B) the Corporation or any of its direct or indirect subsidiaries breaches the terms of any loan, guarantee or other agreement or instrument relating to any indebtedness of the Corporation or any of its direct or indirect subsidiaries in excess of
$25 million (or if there is a breach of the indebtedness of any other Person that is guaranteed by the Corporation or any such subsidiary to an extent in excess of $25 million), which breach either (x) has not been cured or waived (and in respect of
which any applicable cure or notice period has expired), or (y) otherwise entitles any lender or other third party to then demand immediate payment of the indebtedness or accelerate the maturity of any indebtedness, or require payment on a
guarantee, foreclosure on collateral, or take action of similar consequence; 
  
 (ii) such Special Shareholder Approval shall not be required after the second anniversary of the Closing with respect to (A) any closing or discontinuance of any division or line of business or (B) any disposition of
the Johnson and Evinrude outboard engine business or the related parts and accessories businesses in whole or in part; 
  
 (iii) such Special Shareholder Approval shall not be required with respect to any closing, discontinuance or disposition of the utility
vehicle division currently based in Granby, Quebec; and 
  
 (iv) with respect to any action to which Section 2.4.1.3 applies, such Special Shareholder Approval shall not be required from any Investor Group that designated (or otherwise is an Affiliate of) the Board or
Executive Committee member who is disqualified under Section 2.4.1.3 from voting with respect to such matter. 
  
 2.4.3. If, in connection with an Initial Public Offering, the underwriters shall assert on reasonable grounds that elimination or
restriction in the scope of the Special Shareholder Approval rights and requirements set forth in Section 2.4.2 would substantially increase the price realized in or size of such offering, such rights shall be eliminated, or their scope shall be
restricted, in such manner as, in either case, any two Investor Groups shall reasonably determine effects the minimum change necessary to substantially mitigate the concerns asserted by the underwriters. 
  

 -10- 

 2.4.4. Each holder of Shares agrees that: 
  
 2.4.4.1. If any action or proposed action of the type(s)
identified in Section 2.4.1 receives the approval of the Board, and, if applicable, the Special Shareholder Approval from the applicable Investor Groups, (or their respective representatives, committees or agents) as contemplated by this Agreement,
to the extent (if any) that such action or proposed action also requires Shareholder approval (under the CBCA or otherwise) then such Shareholder will (a) cast all votes to which such holder is entitled in respect of the Shares, whether at any
annual or special meeting, by written consent or otherwise, in the same manner in which the majority of the members of the Board (or committee, if applicable) voted with respect to such action in providing the approval contemplated by Section 2.4.1
and (b) waive any and all dissenter’s rights, appraisal rights and similar rights in connection with such matter; provided, however, that a holder of the Corporation’s Class A Preferred Shares will not be required to vote Class A
Preferred Shares held by it in favor of any action with respect to which the CBCA entitles holders of Class A Preferred Shares to a class vote if such action would: (i) remove or change prejudicially the preferential liquidation, dividend or
redemption rights of the Class A Preferred Share or (ii) create a new class of shares’ (or increase the rights of any pre-existing class of shares) in a manner that would result in there being a class of shares equal or superior to the Class A
Preferred Shares with respect to liquidation, dividend or redemption rights. 
  
 2.4.4.2. Notwithstanding the foregoing, the Caisse Investors may (subject to Section 2.4.4.3) vote in a manner contrary to that otherwise required by Section 2.4.4.1 or abstain from voting on matters described in
Section 2.4.4.1; but if they so abstain then the vote required to approve such matters will be, to the maximum extent allowed under applicable law, only the consent of a majority of the shares actually voted in connection with such matter. To the
extent permitted under applicable law, any failure of a Caisse Investor to vote its shares on any matter will not have the effect of a vote against that matter. If any shareholder action (for example, a “special resolution of shareholders”
under the CBCA) is taken or proposed to be taken by written consent of shareholders in lieu of meeting and any Caisse Investor elects to abstain from such vote or action, the Majority Bain Investors or the Majority Beaudier Group Investors may
request that such matter be submitted to a shareholder vote at a meeting; and if they do so request then the Corporation and the Investors will promptly convene such shareholder meeting and submit the matter to a vote of shareholders at such
meeting. 
  
 2.4.4.3. If any Caisse Investors
vote in a manner contrary to that otherwise required by Section 2.4.4.1 or abstain from a vote as contemplated by Section 2.4.4.2, and if after taking the additional steps contemplated by Section 2.4.4.2 (for example, holding a meeting of
shareholders) such vote or abstention results in a failure to obtain any approval or consent (under this Agreement, the CBCA or otherwise) that could have been obtained had all Caisse Investors cast their votes in the same manner in which the
majority of the 

  

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members of the Board (or committee, if applicable) voted with respect to such action in providing the approval as contemplated by Sections 2.4.1 and 2.4.4.1,
then thereafter Section 2.4.4.2 will not apply to such matter and all Caisse Investors will cast their vote and take other actions as required by Section 2.4.4.1. 
  
 2.4.5. The initial chief executive officer and chief financial officer of the Corporation and of BRP shall
be Mr. Jose Boisjoli and Mr. Louis Morin respectively. 
  
 2.4.6. The members of the Board and the Shareholders may not use the Board approval rights under Sections 2.4.1 and the Special Shareholder Approval rights under Section 2.4.2 to circumvent the provisions set forth in Sections 3, 4 and 5.1.

  
 2.4.7. The Corporation will not effect a
public offering of equity securities of any subsidiary of the Corporation, or of any Affiliate of the Corporation without the consent of each Investor Group that is then entitled to designate a member of the Board pursuant to Section 2.1; and the
Corporation will cause it subsidiaries to comply with this requirement. 
  
 2.5. Quorum, Notice, etc. In addition to any quorum requirements applicable to the Corporation under the CBCA, a quorum for any meeting of the Board shall require the presence of members constituting at least a majority of the entire
Board, which majority shall include at least one Bain Director (so long as the Bain Investors are entitled to designate at least one member of the Board pursuant to Section 2.1.1), one Beaudier Director (so long as the Beaudier Group Investors are
entitled to designate at least one member of the Board pursuant to Section 2.1.1), and one Caisse Director (so long as the Caisse Investors are entitled and have not waived their right to designate at least one member of the Board pursuant to
Section 2.1.1.3); provided, that if a quorum fails to exist at any meeting because of the failure of at least one Bain Director, one Beaudier Director or one Caisse Director to attend or continue be present thereat (such Board member(s) not
present the “Unrepresented Shareholder Directors”), such meeting shall be postponed to a date within 15 days thereafter (with at least 3 Business Days’ notice to all members), and so long as there is present at least a Majority
of the Board the presence of the Unrepresented Shareholder Directors shall not be required for a quorum at the reconvened meeting. In addition, notices of regular meetings of the Board shall be given to its members at least 10 Business Days before
such regular meetings and notices of special meetings of the Board shall be given to its members at least 5 Business Days before the such special meetings (or 3 Business Days in the event of a postponed meeting, as described above, or 1 Business Day
in the event a Board or Shareholder meeting is called as contemplated by the last sentence of Section 2.4.4.2), in each case by mail, telegram or facsimile and email at his usual or last known business address, facsimile number or email address; but
such notice requirement will not affect the ability of the Board and its members to waive such notice requirements in the manner allowed under the CBCA and the Corporation’s bylaws as in effect from time to time. 
  
 2.6. Management Coinvestment Program; Management Options, etc.

  
 2.6.1. Each holder of Shares agrees that the
Corporation will be authorized to, on terms and conditions established by the Board: (a) issue to management employees of the Corporation and its subsidiaries Options to purchase Class B Common Shares; and 

  

 -12- 

 
(b) provide management employees an opportunity to purchase Class B Common Shares within a period of less than three months from Closing. The size, amount,
exercise or purchase price and other terms and conditions of such Option and equity purchase programs will be as determined by the Board; but the aggregate number of Shares to be made available to management employees (including both purchased
Shares and Shares issuable upon exercise of Options) will not exceed 31,000,000 Shares unless otherwise approved in advance by each Investor Group then entitled to designate any member of the Board under Section 2.1.1. The Corporation will require
any and all such management employees, as a condition to issuing any Options to such management employees or to selling any Shares to such management employees (as the case may be), to execute and deliver to the Corporation a counterpart signature
page or other appropriate instrument of joinder pursuant to which such management employee agrees to become a party to this Agreement as a Manager. Any and all Shares issued to such Managers (including any Class B Common Shares issued upon exercise
of Options) will be Management Shares hereunder. 
  
 2.6.2. Each holder of Shares will cast all votes to which such holder is entitled with respect to such Shares and take such other actions as may be reasonably requested of such holder to assure that the management equity programs described
in Section 2.6.1 receive such approvals (including any approvals required under the CBCA, under the Corporation’s articles or by-laws or under any provision of this Agreement), if any, as may be required to implement and give effect to the
provisions of Section 2.6.1 
  
 2.7. Grant of Proxy.
Each holder of Shares other than the Investors hereby grants to the Corporation a proxy to vote his Shares in accordance with his agreements contained in this Section 2. 
  
 3. TRANSFER RESTRICTIONS. No holder of Shares shall Transfer any of such Shares to any other Person except as provided in this
Section 3. 
  
 3.1. Certain Permitted Transfers.

  
 3.1.1. Certain Specially Approved Transfers.
Any holder of Common Shares may Transfer any or all of such Shares in a transaction not otherwise permitted under this Section 3 with the consent of all Investor Groups and the Corporation (which consent may in each instance specify conditions for
such Transfer). 
  
 3.1.2. Upon Death; Pursuant
to Corporation Right to Call Shares, etc. Upon the death of any holder of Common Shares who is a natural Person, such Shares may be distributed by the will or other instrument taking effect at death of such holder or by applicable laws of descent
and distribution to such holder’s estate, executors, administrators and personal representatives, and then to such holder’s heirs, legatees or distributees, whether or not such recipients are Members of the Immediate Family of such holder.
In addition any Manager may transfer Shares to the Corporation or BRP or any of their subsidiaries if the Corporation, BRP or any of their subsidiaries exercise any right to acquire such Shares upon the death or other termination of employment of
such Shareholder. 
  

 -13- 

 3.1.3. Additional Permitted Transfers by the Investors. Any holder of Investor Shares or
Other Investor Shares (a) may Transfer any or all of such Shares to an Affiliate of such Investor (or Transfer any or all such Shares to any member of the same Investor Group to which such Investor belongs), except that in the case of a transfer by
a Beaudier Group Member such Transfer of Shares pursuant to this clause (a) may only be made to a Family Holding Company and only for so long as (x) such transferee remains a Family Holding Company and (y) Beaudier in all instance continues to
qualify as a Family Holding Company, or (b) after the Initial Public Offering, to its stockholders, partners or members in a general distribution to investors in or partners, members or stockholders of such Investor. 
  
 3.1.4. Financial Institutions. A holder of Investor Shares
may also make a bona fide pledge of its Investor Shares to a Financial Institution as security for such holder’s repayment for a bona fide loan from such Financial Institution where (a) such Financial Institution has been approved in advance by
each of the Majority Bain Investors, the Majority Caisse Investors and Majority Beaudier Group Investors (such approvals not to be unreasonably withheld or delayed so long as in the reasonable judgment of each Investor Group such transaction does
not have the effect of circumventing the other provisions of this Agreement) and (b) such Financial Institution has undertaken (by agreement in form and substance satisfactory to the Corporation and approved by all Investor Groups) to become a party
to this Agreement in the event of the realization of its security. 
  
 3.1.5. No Transfer permitted under the terms of this Section 3.1 (other than in a distribution pursuant to Section 3.1.3(b) or upon transfer to the Corporation or any of their subsidiaries pursuant to Section 3.1.2),
nor any Transfer of ownership interests to a financial institution upon seizing of collateral or realization of security as contemplated by Section 3.1.4, shall be effective unless the transferee of such Shares (each, a “Section 3.1
Permitted Transferee”) has delivered to the Corporation a written acknowledgment and agreement in form and substance reasonably satisfactory to the Corporation that such Shares to be received by such Section 3.1 Permitted Transferee shall
remain Investor Shares, Other Investor Shares, or Management Shares, as the case may be, and shall be subject to all of the provisions of this Agreement and that such Section 3.1 Permitted Transferee shall be bound by, and shall be a party to, this
Agreement as the holder of Investor Shares, Other Investor Shares, or Management Shares, as the case may be, hereunder; provided, however, that (i) in the case of a Transfer pursuant to Section 3.1.4, the written acknowledgement and agreement
referred to above which is delivered by the Financial Institution shall provide that the Financial Institution shall become an Other Investor hereunder and be subject to the terms of this Agreement applicable to Other Investors upon the realization
of its security in the Shares pledged, hypothecated or otherwise provided as security, all of which shall after such realization be deemed to be Other Investor Shares for purposes of this Agreement; (ii) Shares Transferred to an Investor, a Manager
or an Other Investor pursuant to Section 3.1.1 shall thereafter become Investor Shares, Management Shares or Other Investor Shares (as applicable) hereunder of like kind with the other Shares held by such Section 3.1 Permitted Transferee and its
Affiliates; (iii) Shares transferred pursuant to Section 3.1.1 to a Person other than an Investor, a Manager or an Other Investor shall 

  

 -14- 

 
thereafter be treated and deemed to be Shares of such kind as may be approved by the Investor Groups and the Corporation in connection with their approval of
such Transfer, (iv) no Transfer by any holder of Shares to a Section 3.1 Permitted Transferee shall relieve such holder of any of its obligations hereunder, (v) any Common Shares Transferred pursuant to clause (b) of Section 3.1.3 shall conclusively
be deemed thereafter not to be Shares under this Agreement and transferee of such shares shall not have any rights or obligations under this Agreement or under the Registration Rights Agreement in respect of such Shares and (vi) any Shares
Transferred to the Corporation, BRP or any of their subsidiaries pursuant to the second sentence of Section 3.1.2 will be cancelled and will conclusively be deemed thereafter not to be Shares under this Agreement. 
  
 3.2. Additional Rights to Transfer Investor Shares; Etc. In addition
to Transfers permitted under Section 3.1, subject to Sections 4.1 and 4.2 (and, in the case of Transfers after the Initial Public Offering, Section 5.4 (Lock-up) of the Registration Rights Agreement), any holder of Investor Shares or Other Investor
Shares, and their respective Section 3.1 Permitted Transferees, may Sell Shares as follows: 
  
 (i) after (18) eighteen months following Closing, a Sale for cash consideration in a Private Placement Transaction to any Person that is
a Non-Strategic Institutional Investor approved by the Majority Bain Investors, the Majority Beaudier Group Investors and the Majority Caisse Investors (such approvals not to be unreasonably withheld or delayed) having at least Cdn. $1 billion (or
an equivalent amount) under management; 
  
 (ii)
after the Initial Public Offering, a Sale through a Recognized Securities Exchange, provided however, that in connection with any sale representing a sale by any Investor (or Investor Group) of more than five percent (5%) of the Investor
Shares held by such Investor (or such Investor’s Investor Group) as of the Closing within a period of fifteen (15) consecutive days, the selling Investor shall provide a written notice of such proposed sale (including the number of Shares to be
sold and the Recognized Securities Exchange upon which such Sale in proposed to be completed) to the other holders of Investor Shares at least twenty-four (24) hours prior to such Sale; and 
  
 (iii) after the fourth anniversary of Closing, a Sale for
consideration consisting of cash, Marketable Securities or a combination of cash and Marketable Securities in a Private Placement Transaction to any Person (provided that if such Sale is to occur prior to the Initial Public Offering, such
Person must also be approved by the Majority Bain Investors, the Majority Beaudier Group Investors and the Majority Caisse Investors, such approvals not to be unreasonably withheld or delayed). 
  
 3.2.1. No Transfer permitted under the terms of clause (i)
or (iii) of this Section 3.2 to a Person other than an Investor that is already party to this Agreement shall 

  

 -15- 

 
be effective unless the transferee of such Shares (each, a “Section 3.2 Private Placement Permitted Transferee”) has delivered to the
Corporation a written acknowledgment and agreement in form and substance reasonably satisfactory to the Corporation that: (a) such Shares to be received by such Section 3.2 Private Placement Permitted Transferee shall become Other Investor Shares
for purposes of this Agreement, and shall be subject to all of the provisions of this Agreement applicable to Other Investor Shares and (b) such Section 3.2 Private Placement Permitted Transferee shall be bound by, and shall be a party to, this
Agreement as an Other Investor hereunder and (c) in the case of any transfer by any Caisse Investor to a Person other than a Bain Investor or a Beaudier Group Investor only, that such Section 3.2 Private Placement Permitted Transferee shall be
subject to the rights of first offer requirements of Section 4.1 and the preferential allocation provisions of Section 4.1.4.2 (and, to the extent that the Beaudier Group Investors do not exercise such preferential allocation and purchase rights, to
reallocation to other Investors) to the same extent as the Caisse; provided, however, that if in the context of any Caisse Investor seeking to transfer as a Participating Seller pursuant to Section 4.2, the Prospective Buyer objects to the
application of 4.1.4.2 to it, then upon such transfer by the Caisse Investors to such Prospective Buyer, the provisions of Section 4.1.4.2 will not apply to such transferee or any of its subsequent transferees. 
  
 3.2.2. Each Section 3.2 Private Placement Permitted
Transferee (and all subsequent transferees who acquire such Shares as permitted pursuant to clause (i) or (iii) of Section 3.2) shall be deemed an Other Investor under this Agreement. 
  
 3.2.3. In addition, (a) any Prospective Selling Investor may, in connection with any Transfer pursuant to
clause (i) or (iii) of Section 3.2 (and subject to compliance with the applicable provisions of Sections 4.1 and 4.2), elect to assign to any transferee that is, or that in such transaction becomes, an Other Investor (a) all or a portion of the
demand registration rights of such Prospective Selling Investor under the Registration Rights Agreement and (b) the right to submit an Election Notice and purchase Shares under Section 4.1 provided that such Prospective Selling Investor and such
Other Investor transferee notify the Corporation and all other Investors and Other Investors of such assignment of rights. 
  
 3.2.4. Any Common Shares Transferred pursuant to clause (ii) of this Section 3.2 (in each case other than to an Investor) shall
conclusively be deemed thereafter not to be Shares under this Agreement. 
  
 3.3. ROFO; Tag Alongs; and Drag Alongs. In addition to other Transfers permitted under Sections 3.1 and 3.2, any holder of Common Shares may Transfer such Shares for consideration consisting of cash, Marketable
Securities, or any combination of cash and Marketable Securities, on the terms and subject to the conditions of Sections 4.1,4.2 and 4.3; but no Prospective Selling Investor (as such term is used in Section 4.1) may transfer Shares under Sections
4.1 or 4.2 unless the Prospective Buyer (as such term is used in Section 4.2) and the relevant transaction meets one or more of the requirements of a permitted sale under clause (i) or (iii) of Section 3.2. Investor Shares Transferred pursuant to
Section 4.1 to an Electing Purchaser shall thereafter become Investor Shares hereunder of like kind with the other Shares held by such Electing Purchaser and its Affiliates. Any Common Shares Transferred pursuant to 

  

 -16- 

 
Section 4.2 (in each case other than to an Investor or an Other Investor, or to a person who becomes an Other Investor in connection with such Transfer) or
Section 4.3 shall conclusively be deemed thereafter not to be Shares under this Agreement. 
  
 3.4. Public. Subject to the provisions of Section 5.4 of the Registration Rights Agreement, any holder of Common Shares may Transfer such Shares in a Public Offering pursuant to the provisions of the
Registration Rights Agreement, which Shares shall conclusively be deemed thereafter not to be Shares under this Agreement and not to be subject to any of the provisions hereof or entitled to the benefit of any of the provisions hereof. 

 
 3.5. Preferred Shares. The Preferred Shares cannot be Transferred
at any time prior to December 31, 2013 and without the prior written consent of the Corporation and the Majority Investors. In addition, no Transfer of Preferred Shares after such date or for which such consent is obtained will be permitted unless
the transferee of such Shares has delivered to the Corporation a written acknowledgment and agreement in form and substance satisfactory to the Corporation and the Majority Investors that the Preferred Shares to be received by such permitted
transferee shall remain subject to all of the provisions of this Agreement and that such permitted transferee shall be bound by, and shall be a party to, this Agreement as the holder of Preferred Shares. 
  
 3.6. Class B Common Shares. Beaudier will not transfer any Class B
Common Shares, or any Class A Common Shares issued upon conversion of Class B Common Shares, to any Person (whether or not such transferee is Beaudier Group Investor) until the earliest of (i) the third anniversary of the Initial Public Offering,
(ii) such time as the Bain Investors are no longer entitled to designate any members of the Board, or (iii) such time as Beaudier and its Affiliates no longer own any other Class A Common Shares. Such restriction shall be in addition to the other
restrictions on transfer of Class B Shares under this Agreement. 
  
 3.7. Indirect Transfers. The Beaudier Group Investors have entered into the Family Holding Companies’ Agreement to record their understandings with respect to their acquisition, holding and disposition of Shares and any direct
or indirect issuance or transfer of ownership interests in Family Holding Companies. The Beaudier Group Investors have provided to the Corporation a copy of the Family Holdings Companies’ Agreement and hereby represent and warrant to the
Corporation and to the Bain Investors that the english language translation of the Family Holding Companies’ Agreement also provided by the Beaudier Group Investors to the Bain Investors constitutes a complete and accurate translation in all
material respects. The Beaudier Group Investors shall comply with, and shall not without the prior written consent of the Bain Investors and Caisse Investors amend, waive or otherwise vary, the provisions of the Family Holding Companies’
Agreement. For greater certainty: 
  
 3.7.1. Any
Transfer or other transaction or occurrence or series of transactions or occurrences as a result of which a Beaudier Group Investor ceases to qualify as a Family Holding Company shall be considered for purposes of this Agreement to constitute a
transfer of the Common Shares held by such Beaudier Group Investor in violation of this Agreement, unless cured as promptly as possible and in any event within 30 Business Days of such breach becoming known to such Beaudier Group Investor.

  

 -17- 

 3.7.2. The Beaudier Group Investors will promptly notify the Corporation and each other
Investor of any Transfer, operation or other event that results in a Beaudier Group Investor no longer qualifying as a Family Holding Company. 
  
 3.7.3. The Beaudier Group Investors will provide to any other Investor or Investor Group Representative, upon reasonable notice from time
to time, an officer certificate confirming that each member of the Beaudier Group Investors continues to qualify as a Family Holding Company. 
  
 3.7.4. If, as a result of any Transfer or other transaction or occurrence or series of transactions or occurrences, any Beaudier Group
Investor ceases to qualify as a Family Holding Company and fails to cure such situation within the 30 Business Day period specified in Section 3.7.1, then such non-qualifying Beaudier Group Investor will forthwith distribute Shares held by it to one
or more Members of the Bombardier/ Beaudoin Family as contemplated by the first paragraph of Section 2.3 of the Family Holding Companies’ Agreement. If such distribution occurs after the Initial Public Offering it will be done pursuant to
Section 3.1.3(b) of this Agreement with no independent requirement for the transferee to sign this Agreement in connection with such distribution. But if such distribution is prior to the Initial Public Offering as a condition to such distribution
each such transferee must sign and deliver to the Corporation a written acknowledgment and agreement in form and substance reasonably satisfactory to the Corporation that such Members of the Bombardier/Beaudoin Family will become Beaudier Group
Investors under this Agreement and that the Shares distributed to them will remain Investor Shares for purposes of this Agreement and continue to be subject to all of the provisions of this Agreement applicable to Investor Shares held by Beaudier
Group Investors. 
  
 3.7.5. If the distribution
to Members of the Bombardier/ Beaudoin Family described in Section 3.7.4 (and contemplated by the first paragraph of Section 2.3 of the Family Holding Companies’ Agreement) is not possible or if the proposed transferee fails to sign and deliver
such acknowledgement and agreement regarding joinder to this Agreement described in the final sentence of Section 3.7.4, then such non-qualifying Beaudier Group Investors will (a) offer all Shares held by such non-qualifying Beaudier Group Investor
to other Beaudier Group Investors under the offer mechanics of Section 2.3 of the Family Holding Companies’ Agreement; and (b) if other Beaudier Group Investors who qualify as Family Holding Companies fail to purchase all such Shares, then such
non-qualifying Beaudier Group Investor will offer to sell any remaining Shares held by it to the Bain Investors and the Caisse Investors at the fair market value of such shares (as determined by an independent third party), with the allocation of
such remaining shares among the Bain Investors and the Caisse Investors to be as agreed between the Bain Investors and the Caisse Investors (or, in the absence of such agreement, in proportion to their respective ownership of Shares as of
immediately prior to such offer); and (c) if, after giving effect to the foregoing, such non-qualifying Beaudier Group Investor continues to hold Shares then: (i) such non-qualifying Beaudier Group Investor will thereafter be treated as an
“Other Investor” for purposes of this Agreement, (ii) the Shares held by such non-qualifying Beaudier Group Investor will thereafter be treated as an “Other Investor Shares” for purposes of this Agreement, 

  

 -18- 

 
(iii) accordingly (for the avoidance of doubt), among other things such non-qualifying Beaudier Group Investor will thereafter have no rights under Sections
2.1, 2.2, 2.3, 2.4.2 or 11.2 of this Agreement and the shares held by such non-qualifying Beaudier Group Investor will be deemed for purposes of Section 2.1.1 to be no longer held by Beaudier Group Investors. 
  
 3.7.6. For the period from the Closing until the earlier of
three years after the Initial Public Offering or the fifth anniversary of the Closing, the Beaudier Group Investors will use reasonable efforts to cause Laurent Beaudoin (or, if he is unable or willing to serve, Pierre Beaudoin) to serve as the
Delegate for the Family Holding Companies under the Family Holding Companies’ Agreement and as the Investor Group Representative of the Beaudier Group Investors under this Agreement. 
  
 3.8. Impermissible Transfer. Any attempted Transfer of Shares not permitted under the terms of this Section 3 shall
be null and void, and the Corporation shall not in any way give effect to any such impermissible Transfer. 
  
 4. RIGHT OF FIRST OFFER; TAG ALONG AND DRAG ALONG RIGHTS. 
  
 4.1. Right of First Offer. If one or more holders of Investor Shares or of Other Investor Shares (each such holder, a “Prospective Selling Investor”) proposes to Sell any Common Shares in a
transaction pursuant to Section 3.2(i), 3.2(iii) or as one of the Drag-Along Initiating Sellers pursuant to Section 4.3, such proposed Sale shall not be consummated except in compliance with this Section 4.1: 
  
 4.1.1. Notice. The Prospective Selling Investors shall
furnish a written notice of such proposed Sale (an “Offer Notice”) to each other Investor and to each Other Investor to whom the right to participate in purchases under this Section 4.1 has been assigned as provided in clause (b) of
Section 3.2.3 (each, a “First Offer Holder”) not less than thirty (30) days prior to any such proposed Sale. The Offer Notice shall notify each First Offer Holder of the Prospective Selling Investors’ intent to sell and shall
include: (i) the number of Common Shares proposed to be sold by the Prospective Selling Shareholder (the “Subject Shares”), (ii) the name and address of the Prospective Buyer, if known, and (if and when available) a copy of
agreement with the Prospective Buyer, (iii) the per Share consideration proposed for such a Sale (the “ROFO Price”), (iv) whether the Prospective Selling Investors intend to exercise the rights under Section 4.3 (in which case the
Offer Notice shall relate to all Shares held by the Prospective Selling Investors), and (v) all other material terms and conditions of the Proposed Transfer, including the intended method of Transfer, to the extent then known. 
  
 4.1.2. Exercise. Each First Offer Holder may elect to
purchase all or any portion of the Subject Shares at the per Share price equal to the ROFO Price and otherwise on the same terms and conditions specified in the Offer Notice by delivering, within thirty (30) days after effectiveness of the Offer
Notice to the First Offer Holder(s), a written notice of such election (an “Election Notice”) to the Corporation, the Prospective Selling Investor and the other First Offer Holder(s), if any, stating the number of Common Shares held
by such First Offer Holder and the percentage of Subject Shares which such 

  

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First Offer Holder proposes to purchase, which proposed percentage may be more or less than such First Offer Holder’s respective pro rata ownership
interest. Each such First Offer Holder who so elects to purchase any Subject Shares is referred to herein as an “Electing Purchaser”. The acceptance by each Electing Purchaser in his Election Notice shall be irrevocable, and be
subject to no condition other than the provision and funding of financing, as contemplated in Section 4.1.3 below. Each First Offer Holder who does not elect to purchase any Subject Shares through the submission of an Election Notice as provided
above shall be deemed to have waived all of its rights to participate in the purchase of the Subject Shares contemplated by the related Offer Notice. 
  
 4.1.3. Evidence of Financing. Within 45 days following the delivery of the Election Notice, the Electing Purchaser shall deliver the
Prospective Selling Investor evidence of available funds and/or committed financing for the Electing Purchaser’s purchase of Subject Shares. If such evidence is not delivered within such 45 day period, or, taken as a whole, is subject to
broader conditions or otherwise less definite than the BRP Deal Commitment Letter, the Election Notice of such Electing Purchaser shall be deemed to be withdrawn. 
  
 4.1.4. Allocation Among First Offer Holders. 
  
 4.1.4.1. If more than one First Offer Holder elects to purchase Subject Shares and the First Offer Holder(s)
elect to purchase collectively more than the aggregate number of Subject Shares, then Subject Shares shall first be allocated to each Electing Purchaser in an amount equal to the lesser of (a) the maximum amount of Subject Shares specified by each
such Electing Purchaser in its written notice to the Corporation and (b) each such Electing Purchaser’s pro rata share of such Subject Shares based on the number of Common Shares owned by each Electing Purchaser as of immediately prior to the
expiration of the period for submitting Election Notices. Any Subject Shares that remain following such procedure shall be offered and allocated to Electing Purchasers to the extent they express (or in the Election Notice expressed) a willingness to
purchase additional Subject Shares (and, in the case of over-subscription for such additional Subject Shares, shall be allocated among Electing Purchasers in such manner as they may agree, or absent agreement pro rated in accordance with their
respective ownership of Common Shares). 
  
 4.1.4.2. Notwithstanding Section 4.1.4.1, if the Prospective Selling Investor is Caisse (or an Other Investor to whom Caisse transferred Shares pursuant to clause (i) or (iii) of Section 3.2, except to the extent exempted from application
of this provision by the provisions of clause (c) of Section 3.2.1) and Beaudier elects to purchase all or any portion of the Subject Shares, then the number of Subject Shares that Beaudier elected to purchase shall be allocated for purchase by
Beaudier and the balance, if any, shall be allocated in accordance with Section 4.1.4.1. 
  
 4.1.4.3. Notwithstanding Sections 4.1.4.1 and 4.1.4.2, if any Electing Purchaser fails to provide evidence of financing as required under

  

 -20- 

 
Section 4.1.3 (or, having provided such evidence, subsequently is unable to secure or close such required financing and is therefore unable to consummate the
proposed purchase of Subject Shares as contemplated by Section 4.1.5), then Subject Shares may be reallocated among other Electing Purchasers as described in Section 4.1.4.1 to the extent they express (or in the Election Notice expressed) a
willingness to accept such additional allocations. 
  
 4.1.5. Sale to First Offer Holders. If the Electing Purchaser(s) have collectively elected to purchase pursuant to this Section 4.1 all (but not less than all) of the Subject Shares, then the Electing Purchaser(s) will consummate such Sale
as soon as practical, but in any event within 120 days of the delivery of the Offer Notice. If the Electing Purchaser(s) have collectively elected to purchase pursuant to this Section 4.1 less than all of the Subject Shares (or having elected to
purchase all Subject Shares, due to collapse of financing or otherwise, are unable to consummate such purchase as set forth in this Section 4.1.5), then Prospective Selling Investors may elect to (a) proceed with such Sale of the Subject Shares
pursuant to Section 3.2(i), 3.2(iii) or 4.3 (as the case may be), subject (except in the case of a Sale pursuant to Section 4.3) to the provisions of Sections 4.1.6 and 4.2, or (b) Sell to the Electing Purchaser(s) the number of Subject Shares that
they offered to purchase in their Election Notices as soon as practical within 120 days of the delivery of the Offer Notice or (c) consummate any combination of the Sales contemplated by clauses (a) and (b) above. An Electing Purchaser may designate
one or more Affiliates of such Electing Purchaser or one or more members of the same Investor Group as such Electing Purchaser (provided that if the Electing Purchaser is a Beaudier Group Investor such Affiliate or other member must then
still be qualified as a Family Holding Company) to purchase from the Prospective Selling Investor all or any portion of the Subject Shares that such Electing Purchaser elected to purchase; provided that, if such Affiliate is not already a
party to this Agreement, then as a condition to such purchase, such Affiliate must become a party to and bound by this Agreement as an Investor (or Other Investor, as the case may be). All amounts payable by an Electing Purchaser (or designee
thereof) pursuant to this Section 4.1 shall be paid in cash at the closing of such purchase or, to the extent provided in the Offer Notice, in installments of cash over time. 
  
 4.1.6. Transfer to Third Parties. If the Electing Purchaser(s) do not collectively elect to purchase all of
the Subject Shares (or having elected to purchase all Subject Shares, due to collapse of financing or otherwise, are unable to consummate such purchase as set forth in Section 4.1.5), the Prospective Selling Investor may, subject to Section 4.2,
Sell all (but not less than all) of the Subject Shares to one or more third parties pursuant to Section 3.2(i), 3.2(iii) or 4.3 for consideration per share no less than the ROFO Price specified in, and on other terms no more favorable to such third
parties than those set forth in, such Offer Notice; provided that: (i) the number of Subject Shares eligible to be sold in such Sale by the Prospective Selling Investor shall be reduced to the extent required pursuant to Section 4.2.4; (ii)
such Sale(s) by the Prospective Selling Investor may be made only within the nine-month period immediately following the last date for submission of Election Notices (or, if applicable, Tag Along Offers) with respect to such Sale and (iii) nothing
herein is intended or will be construed to limit a Prospective Selling Investor from selling a portion of the Subject 

  

 -21- 

 
Shares to the Electing Purchaser(s) and only the balance (subject to Section 4.2) to a third party pursuant to Section 3.2(i), 3.2(iii) or 4.3 (as the case
may be) as contemplated by Section 4.1.5. In the event the Subject Shares are not Sold in accordance with the immediately preceding sentence, the Subject Shares shall be subject to the provisions of this Section 4.1 in connection with any subsequent
Transfer or proposed Transfer of such Subject Shares pursuant to Section3.2(i), 3.2(iii) or 4.3, unless the failure to complete such sale resulted from the failure of any Electing Purchaser to comply with the terms of this Section 4.1 in which case
the Subject Shares that were allocated to such defaulting Electing Purchaser may, at the election of the Prospective Selling Investor, be Sold at any time to one or more other Electing Purchasers in accordance with Section 4.1 (or, if such other
Electing Purchasers fail to purchase all such Subject Shares within 5 days then to one or more third parties in accordance with this Section 4.1.6). The Corporation shall cooperate reasonably with the Prospective Selling Investor in connection with
such Transfer, including by furnishing information to the Prospective Buyer (subject to customary confidentiality agreements) and making members of the Corporation’s management available for interviews, due diligence and road shows. 

 
 4.1.7. If a Proposed Selling Investor proposes a Sale
(pursuant to Section 3.2(i), 3.2(iii) or as an Approved Drag-Along Sale) in which the consideration to be paid or otherwise distributed to Shareholders would consist of anything other than cash, for purposes of determining whether the consideration
payable in such transaction equals or exceeds the ROFO Price in the applicable Offer Notice: (i) cash will be valued at its face amount; (ii) the cash value of Marketable Securities, including Cash Equivalents, will be deemed, at any time, to be the
weighted average trading price (by dollar volume) of such Marketable Securities for the most recent 30 trading days for such securities and (iii) any other consideration (including any retained equity that is not in the form of Marketable
Securities) will be valued at zero. 
  
 4.1.8. If
one or more Drag Along Initiating Sellers propose a Sale pursuant to Section 4.3 in which the consideration to Shareholders would include Marketable Securities, and at any time prior to the 30th day preceding the date set for the closing of that Sale, such Marketable Securities shall trade in a range (calculated based on weighted average trading price
(by dollar volume) of such Marketable Securities for the preceding 30 trading days for such securities) such that the total per Share consideration in such Sale would, if recalculated based on such most recent 30 trading days, be less than 90% of
the ROFO Price set forth in the applicable Offer Notice (such lesser total per Share consideration value being referred to as the “New Cash Value”), then the Drag Along Initiating Sellers shall so notify the First Offer
Holders and will have a period of 30 days to negotiate with the Prospective Buyer such changes as may be necessary to assure that the aggregate per Share consideration in such Sale (calculated on the basis described in Section 4.1.7) is not less
than 90% of the ROFO Price set forth in such Offer Notice; but if the Drag Along Initiating Holders are not able, within that 30-day period, to achieve that result then (a) the Offer Notice shall be deemed to have been revised to reflect the New
Cash Value; (b) the Drag Along Initiating Sellers will promptly so notify the First Offer Holders; and (c) the First Offer Holders or Electing Purchasers, as the case may be, shall have a period of five Business Days to withdraw or submit new
Election Notices pursuant to Section 4.1.2. 
  

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 4.1.9. Cooperation Regarding Investment Canada. The Corporation and each Investor will,
upon request of any Prospective Selling Investor, cooperate with one another in order to seek any order or modification to undertakings provided by the Corporation under the Investment Canada Act to the extent that such order or modification would
facilitate such the Sale proposed by such Prospective Selling Investor; provided that the Corporation will not, and no Investor will be required to, incur any cost, make any change in the economic or other aspects of the proposed Sale
transaction, suffer any delay, take any action that would limit the ability of any Prospective Selling Investor to Sell Subject Shares as contemplated by the Offer Notice delivered as set forth in this Section 4.1, or accept any further restriction
or undertaking under the Investment Canada Act with respect to future action in relation to the Shares, the Corporation or its business that would be material and adverse to its interests. 
  
 4.2. Tag Along. In the event a Prospective Selling Investor delivers
an Offer Notice in accordance with Section 4.1 and the Eligible Purchaser(s) do not elect to purchase all of the Subject Shares specified in such Offer Notice, such Prospective Selling Investor shall be entitled to Sell the Investor Shares
identified in such Offer Notice in a transaction described in Section 3.2(i) or 3.2(iii) provided that such Prospective Selling Investor of Subject Shares complies with the provisions of this Section 4.2. 
  
 4.2.1. Notice. The Prospective Selling Investor will deliver
a written notice (a “Tag-Along Notice”) to each other holder of Common Shares (each a “Tag Along Holder” and, collectively, the “Tag Along Holders”). The Tag-Along Notice will be provided not less
than 5 Business Days prior to the applicable closing date for a Sale in which the consideration to Shareholders consists of only cash (and not less than 20 Business Days prior to the applicable closing date for a Sale in which the consideration to
Shareholders includes non-cash consideration). The Tag Along Notice shall include: (i) the number of Subject Shares that such Prospective Selling Investor proposes to Transfer pursuant to Section 3.2(i) or 3.2(iii) (as well as the percentage of all
Common Shares held by such Prospective Selling Investor that the Subject Shares constitute (the “Tag Along Sale Percentage”)); (ii) the name and address of the Prospective Buyer, if known, and (if and when available) a copy of the
agreement with the Prospective Buyer; (iii) the proposed consideration per share, which must equal or exceed the ROFO Price set forth in the Offer Notice sent under Section 4.1.1 with respect to such transaction; (iv) any other material terms and
conditions of the Proposed Transfer (including the material terms of any purchase agreement); and (v) an invitation to each Tag Along Holder to make an offer to include in the proposed Sale to the applicable Prospective Buyer an additional number of
Common Shares held by such Tag Along Holder (not in any event to exceed the Tag Along Sale Percentage of the total number of Common Shares held by such Tag Along Holder), on the same terms and conditions, with respect to each Share Sold, as the
Prospective Selling Investors shall Sell each of their Common Shares to the extent that such Tag Along Holders elect to exercise their co-sale rights under this Section 4.2. 
  
 4.2.2. Exercise. Each Tag Along Holder desiring to make an offer to include Common Shares in the proposed
Sale (each a “Participating Seller” and, together with the Prospective Selling Investors, collectively, the “Tag Along Sellers”) shall furnish a 

  

 -23- 

 
written notice (the “Tag Along Offer”) to the Prospective Selling Investors not later than: (i) 3 Business Days after the effectiveness of
the Tag Along Notice in the case of a Sale in which the consideration to Shareholders consists of only cash or (ii) 18 Business Days after the effectiveness of the Tag Along Notice in the case of a Sale in which the consideration to Shareholders
includes non-cash consideration. The Tag Along Offer will set forth an offer to include the number of Common Shares (not in any event to exceed the Tag Along Sale Percentage of the total number of Common Shares held by such Participating Seller)
which such Participating Seller desires to have included in the proposed Sale. Each Tag Along Holder who does not so accept the Prospective Selling Investors’ invitation to make an offer to include Common Shares in the proposed Sale shall be
deemed to have waived all of his rights to participate in such Sale, and the Tag Along Sellers shall thereafter be free to Sell to the Prospective Buyer, at a per share price no greater than the per share consideration set forth in the Tag Along
Notice and on other principal terms which are not materially more favorable to the Tag Along Sellers than those set forth in the Tag Along Notice, without any further obligation to such non-accepting Tag Along Holder pursuant to this Section 4.2.

  
 4.2.3. Irrevocable Offer. The offer of each
Participating Seller contained in his Tag Along Offer shall be irrevocable, and, to the extent such offer is accepted, such Participating Seller shall be bound and obligated to Sell in the proposed Sale on the same terms and conditions, with respect
to each Common Share Sold, as the Prospective Selling Investors, up to such number of Common Shares as such Participating Seller shall have specified in his Tag Along Offer; provided, however, that if the terms of the proposed Sale change
with the result that the per share consideration shall be less than the per share consideration set forth in the Tag Along Notice (other than from a change in the value of the Marketable Securities, if any, included in the per share consideration)
or the other material terms shall be materially less favorable to the Tag Along Sellers than those set forth in the Tag Along Notice, each Participating Seller shall be permitted to withdraw the offer contained in his Tag Along Offer and shall be
released from his obligations thereunder. 
  
 4.2.4. Reduction of Shares Sold. The Prospective Selling Investors shall attempt to obtain the inclusion in the proposed Sale of the entire number of Common Shares which each of the Tag Along Sellers requested to have included in the Sale
(as evidenced in the case of the Prospective Selling Investors by the Tag Along Notice and in the case of each Participating Seller by such Participating Seller’s Tag Along Offer). In the event the Prospective Selling Investors shall be unable
to obtain the inclusion of such entire number of Common Shares in the proposed Sale, the number of Common Shares to be sold in the proposed Sale shall be allocated among the Tag Along Sellers in proportion, as nearly as practicable, as follows:

  
 (i) there shall be first allocated to each
Tag Along Seller a number of Common Shares equal to the lesser of (A) the number of Common Shares offered to be included by such Tag Along Seller in the proposed Sale pursuant to this Section 4.2, and (B) a number of Common Shares equal to the
aggregate number of Common Shares proposed to be purchased by the Prospective Buyer in the proposed Sale multiplied by a 

  

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fraction, the numerator of which is the aggregate number of Common Shares held by such Tag Along Seller, and the denominator of which is the aggregate number
of Common Shares held by all Tag Along Sellers (the “Pro Rata Portion”); and 
  
 (ii) the balance, if any, not allocated pursuant to clause (i) above shall be allocated to the Prospective Selling Investors pro rata to
each such Prospective Selling Investor based upon the number of Common Shares held by such Prospective Selling Investor, or in such other manner as the Prospective Selling Investors may otherwise agree. 
  
 4.2.5. Additional Compliance. If prior to consummation, the
terms of the proposed Sale shall change with the result that the per share price to be paid in such proposed Sale shall be greater than per share consideration set forth in the Tag Along Notice (other than from a change in the value of the
Marketable Securities, if any, included in the per share consideration) or the other principal terms of such proposed Sale shall be materially more favorable to the Tag Along Sellers than those set forth in the Tag Along Notice, the Tag Along Notice
shall be null and void, and it shall be necessary for a separate Tag Along Notice to be furnished pursuant to this Section 4.2, and the terms and provisions of this Section 4.2 separately complied with, in order to consummate such proposed Sale. If
the Prospective Selling Investors have not completed the proposed Sale within nine (9) months following the date of the effectiveness of the Tag Along Notice delivered pursuant to Section 4.2.1 with respect to the Proposed Sale, each Participating
Seller shall be released from his obligations under his Tag Along Offer, the Tag Along Notice shall be null and void, and it shall be necessary for a separate Tag Along Notice to be furnished, and the terms and provisions of this Section 4.2
separately complied with, in order to consummate such proposed Sale, unless the failure to complete such proposed Sale resulted from any failure by any Participating Seller to comply with the terms of this Section 4. 
  
 4.2.6. Cooperation Regarding Investment Canada. The
Corporation and each Investor will, upon request of any Participating Seller, cooperate with one another in order to seek any order or modification to undertakings provided by the Corporation under the Investment Canada Act to the extent that such
order or modification would facilitate such Participating Seller’s participation in a Sale under Section 4.2; provided that the Corporation will not, and no Investor will be required to, (i) incur any cost, (ii) make any change in the economic
or other aspects of the proposed Sale transaction, (iii) suffer any delay, (iv) subject to the following provisions of this Section 4.2.6, take any action that would limit the ability of any Prospective Selling Investor or of any other Participating
Seller to Sell Subject Shares as contemplated by the Tag Along Notice and Tag Along Offers delivered as set forth in this Section 4.2 or make any changes to its rights and obligations hereunder, or (v) accept any further restriction or undertaking
under the Investment Canada Act with respect to future action in relation to the Shares, the Corporation or its business that would be material and adverse to its interests. If notwithstanding such efforts any Caisse Investor is precluded from
selling Subject Shares in accordance with its rights under Section 4.2 due to the failure or inability of the Corporation to obtain an order or modification contemplated under this Section 4.2.6, no 

  

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Sale under this Section 4.2 shall take place unless the Participating Sellers are able to structure the transaction that complies with those Investment
Canada Act undertakings (and, if such efforts to restructure the Sale include identifying an alternative buyer, other than the original Prospective Buyer, then such alternative or substitute buyer for the Shares of the Caisse Investor in that Sale
will be deemed to be a Prospective Buyer and no party will have any separate purchase right under Section 4.1 or co-sale rights under Section 4.2 with respect to the transfer by Caisse Investors of Shares to such alternative buyer as part of the
Sale pursuant to this Section 4.2). 
  
 4.2.7.
Caisse Tag in Certain Change of Control Transactions. If the Caisse Investors exercise, to the full extent of their respective Tag Along Sale Percentages, the right under this Section 4.2 to become a Tag-Along Seller in a Sale prior to the Initial
Public Offering that would constitute a Change of Control and result in termination of this Agreement but would not otherwise result in the Caisse Investors holding, in the aggregate, less than 10% of the Original Caisse Shares, then before
completing that Sale (which gives rise to such tag-along participation rights under this Section 4.2) the Prospective Selling Investor will assure that (a)(i) the Caisse Investors will be consulted in the negotiation of contractual governance
rights, if any, to be granted to the Investors after such Sale and (ii) the Caisse Investors receive customary piggy-back incidental registration rights with respect to the Common Shares held by Caisse after giving effect to such Sale or (b) as part
of such Sale, the Caisse Investors are given the opportunity to Sell (in addition to their portion of shares allocated to them pursuant to Section 4.2.4) additional Shares for some combination of cash, Cash Equivalents or Marketable Securities
(having a value, determined as described in Section 4.1.7, not less than the price per Share otherwise applicable to Shares included in the Sale as provided above) such that the Caisse Investors would hold, in the aggregate, no more than 10%
of the Original Caisse Shares after taking into account the Sale of such additional Shares. All Investors waive any right that they might otherwise have under Section 4.1 to preempt by right of first offer under Section 4.1, or to participate under
Section 4.2 in, the sale of those additional Shares by the Caisse Investors. 
  
 4.3. Drag- Along Sale. 
  
 4.3.1. If one or more Investors meeting the requirements described in clause (i), (ii) or (iii) of Section 4.3.2 (the “Drag-Along Initiating Sellers”) determine to effect an Approved Drag-Along Sale
and have complied with the provisions of Section 4.1 with respect to first offer rights applicable to such Sale (including the notice requirements of Section 4.1.1), then all other holders of Common Shares, Options, Warrants or Convertible
Securities will sell all of the Common Shares, Options, Warrants and Convertible Securities held by such other holders in such Approved Drag Along Sale (or, in the event of a Sale structured as a sale of all or Substantially All assets, merger,
consolidation, amalgamation or similar transaction will vote in favor of, consent to, participate in and not object or otherwise impede the consummation of, the Approved Drag-Along Sale). 
  
 4.3.2. The right to require holders of Common Shares,
Options, Warrants and Convertible Securities to sell such Common Shares and other securities, vote in favor of, 

  

 -26- 

 
consent to, participate in and not object to such Approved Drag-Along Sale and or take other action pursuant to this Section 4.3 may be exercised only by the
Investors and in the circumstances described in any of clauses (i), (ii) or (iii) of this Section 4.3.2, namely: 
  
 (i) at any time following the eighteenth month after the Closing, by one or more of the Majority Bain Investors, the Majority Caisse
Investors or the Majority Beaudier Group Investors if the proposed Sale would provide per Share consideration to the Investors (in the form of cash or Marketable Securities paid or distributed to holders of Common Shares, calculated as provided in
Section 4.1.7 and subject to the provisions of Section 4.1.8) equal to or in excess of four times the cash purchase price paid by the Investors for Class A Common Shares acquired at, or immediately prior to, the Closing; provided, however,
that no Investor Group that then owns a majority of the Class A Common Shares then outstanding may be required under this Section 4.3.2(i) to participate in any Approved Drag-Along Sale unless the Investor Group that seeks to exercise rights
under this Section 4.3.2(i) continues to own Class A Common Shares in an amount not less than 50% of all of the Class A Common Shares held by such Investor Group as of the Closing. 
  
 (ii) at any time following the fourth anniversary of the Closing by one or more Investors owning in the
aggregate 50% or more of the aggregate Class A Common Shares then outstanding; and 
  
 (iii) at any time following the fourth anniversary of the Closing by either (a) the Bain Investors (acting alone) if the Bain Investors
continue to hold all of the Class A Common Shares held by them as of the Closing, (b) the Beaudier Group Investors and the Caisse Investors (acting together) if Beaudier Group Investors and Caisse Investors, collectively, continue to hold all of the
Class A Common Shares held by them as of the Closing, or (c) the Beaudier Group Investors (acting alone) if the Caisse Investors have transferred to the Beaudier Group Investors, pursuant to Section 4.1.4.2 or otherwise, all of the Class A Common
Shares held by Caisse Investors as of the Closing and the Beaudier Group Investors continue to hold all of the Class A Common Shares held by them and the Caisse Investors as of the Closing. 
  
 4.3.3. Required Actions. In connection with any Approved
Drag-Along Sale, each holder of Shares, Options, Warrants or Convertible Securities will: (a) cast all votes to which such holder is entitled in respect of the Shares (or other securities), whether at any annual or special meeting, by written
consent or otherwise, in such manner as may be requested by the Drag-Along Initiating Sellers to approve any sale, recapitalization, merger, consolidation, amalgamation, reorganization or any other transaction or series of transactions involving the
Corporation or its subsidiaries (or all or a substantial portion of their respective assets or of the Shares, Options, Warrants or Convertible Securities) in connection with, or in furtherance of, the exercise by any Investors of their rights under
this Section 4.3; and (b) waive all dissenter’s rights, appraisal rights and similar rights 

  

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applicable to any such transactions. If the Approved Drag-Along Sale is structured as a sale of shares, each holder of Common Shares will agree to sell, and
will sell, all of its Common Shares and rights to acquire Common Shares on the terms and conditions so approved by the Drag-Along Initiating Sellers; and, if and to the extent requested by the Drag-Along Initiating Sellers, the holders of Options,
Warrants or Convertible Securities will Sell such securities as contemplated by Section 4.4.4. In furtherance of the foregoing, (a) each holder of Shares, Options, Warrants and Convertible Securities will take all actions (including executing the
applicable purchase agreement and other documents) reasonably requested by the Drag-Along Initiating Sellers in connection with the consummation of the Approved Drag-Along Sale and (b) each holder of Shares, Options, Warrants or Convertible
Securities will make such representations and warranties, provide such indemnities and enter into such other obligations (in each case subject to Section 4.4.2 below) as the Drag-Along Initiating Sellers may specify (but only to the extent the
Drag-Along Initiating Sellers are similarly obligated) in connection with such Approved Drag-Along Sale. Each holder of Shares will also take such actions as may be required to cause the members of the Board (or members of the board of any
subsidiary of the corporation) to approve and take all actions necessary to permit consummation of an Approved Drag-Along Sale to be effected in accordance with this Section 4.3, however structured (including replacing such members, if necessary).

  
 4.3.4. Conditions to Shareholders’
Obligations. The obligations of the holders of Shares with respect to an Approved Drag-Along Sale are subject to the satisfaction of the following conditions: (i) upon the consummation of the Approved Drag-Along Sale, each holder of Common Shares
will receive in respect of its Common Shares the same form of consideration and the same portion of the aggregate consideration (on a per Share basis) that other such holders of Common Shares receive in the Approved Drag-Along Sale; (ii) if any
holders of Common Shares are given a choice or election as to the form and amount of consideration to be received in respect of such Common Shares, each holder of such Common Shares will be given the same choice or election; (iii) each holder of
then currently exercisable Options, Warrants or other rights to acquire Common Shares will be given an opportunity to exercise such rights prior to the consummation of the Approved Drag-Along Sale and participate in such sale as holders of such
class of Shares or will be subject to the treatment described in Section 4.4.4 and (iv) the Approved Drag-Along Sale will be completed within the nine-month period immediately following the last date for submission of Election Notices with respect
to such Sale, unless the failure to complete such Approved Drag-Along Sale resulted from any failure by any Shareholder to comply with the terms of this Section 4.3. 
  

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 4.4. Miscellaneous. The following provisions shall be applied to any proposed Sale to which
Section 4.1 or 4.2 or 4.3 applies: 
  
 4.4.1.
Certain Legal Requirements. In the event the consideration to be paid in exchange for Common Shares in a proposed Sale pursuant to Section 4.1, 4.2 or 4.3 includes any securities, and the receipt thereof by a Participating Seller (other than an
Investor that is an Accredited Investor) would require under applicable law (a) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities or (b) the provision to any Tag
Along Seller or any Shareholder in an Approved Drag-Along Sale of any specified information regarding the Corporation, such securities or the issuer thereof, such Participating Seller or other Shareholder (other than any Investor that is an
Accredited Investor) will not have the right to Sell Common Shares in such proposed Sale. In such event, the Prospective Selling Investors shall use reasonable efforts (without obligation to pay any costs or suffer any economic consequence), to
cause to be paid to such Participating Seller or other Shareholder in exchange for their Common Shares, against surrender of the Common Shares (in accordance with Section 4.4.6 hereof) which would have otherwise been Sold by such Participating
Seller to the Prospective Buyer in the proposed Sale, an amount in cash equal to the total cash value of the consideration that the Participating Seller would have otherwise received, such value in the case of Marketable Securities to be deemed to
equal the weighted average trading price (by dollar volume) of such Marketable Securities for the 15 Business Days immediately preceding the date on which such securities would have been issued in exchange for such Common Shares. 
  
 4.4.2. Further Assurances. The Corporation and each
Participating Seller and Electing Purchaser, whether in his capacity as a Participating Seller, Electing Purchaser, shareholder, officer or director of the Corporation, or otherwise, shall take or cause to be taken all such actions as may be
necessary or reasonably desirable in order expeditiously to consummate each Sale pursuant to Section 4.1, Section 4.2 or Section 4.3 and any related transactions (including, without limitation, to comply with Canadian Securities Laws or the U.S.
Securities Exchange Act of 1934, as amended, and regulations promulgated thereunder (the “Exchange Act”) respecting takeover bids or going private transactions) on the terms and subject to the conditions of this Agreement, including
executing, acknowledging and delivering consents, assignments, waivers and other documents or instruments; furnishing information and copies of documents; filing applications, reports, returns, filings and other documents or instruments with
governmental authorities; and otherwise cooperating with the Prospective Selling Investors and the Prospective Buyer; provided, however, that Participating Sellers shall be obligated to become liable in respect of any representations,
warranties, covenants, indemnities or otherwise to the Prospective Buyer solely to the extent provided in the immediately following sentence; and provided further that if it shall be necessary to comply with Canadian Securities Laws or the Exchange
Act respecting takeover bids or going private transactions, the outside date for closing any such sale determined in accordance with Sections 4.1, 4.2 or 4.3 shall be extended by such time (not exceeding 90 days) as shall be necessary in order to
effect such compliance. Without limiting the generality of the foregoing, each Participating Seller will execute and deliver such agreements as may be reasonably specified by the Prospective Selling Investors 

  

 -29- 

 
(provided that such Prospective Selling Investors will also be party to such agreements and bound by the same representations, warranties, covenants,
indemnities and other terms), including agreements having terms that are customary is such circumstances to (a) (i) make individual representations, warranties, covenants and other agreements as to the unencumbered title to its Shares and the power,
authority and legal right to Transfer such Shares and the absence of any Adverse Claim with respect to such Shares and (ii) be liable in respect of such representations, warranties, covenants and other agreements up to the full amount of all
proceeds to such Participating Seller in connection with such Sale and (b) be liable (whether by purchase price adjustment, indemnity payments or otherwise) in respect of representations, warranties, covenants and agreements in respect of the
Corporation and its subsidiaries; provided, however, that the aggregate amount of liability described in this clause (b) in connection with any Sale of Shares shall not exceed the lesser of (i) such Participating Seller’s pro rata
portion of any such liability, to be determined in accordance with such Participating Seller’s portion of the total number of Shares included in such Sale or (ii) 30% of the proceeds to such Participating Seller in connection with such Sale.
Each holder of Shares will also take such actions as may be required to cause the members of the Board (or members of the board of any subsidiary of the corporation) to approve and take all actions necessary to permit consummation of an Approved
Drag-Along Sale to be effected in accordance with Section 4.3, however structured (including replacing such members, if necessary). 
  
 4.4.3. Sale Process. The Drag-Along Initiating Sellers (in the case of a proposed Sale pursuant to Section 4.3) or the Prospective Selling
Investors (in the case of a proposed Sale pursuant to Section 4.1 or 4.2) shall, in their sole discretion, decide whether or not to pursue, consummate, postpone or abandon any proposed Sale and the terms and conditions thereof. No holder of Investor
Shares nor any Affiliate of any such holder shall have any liability to any other holder of Shares arising from, relating to or in connection with the pursuit, consummation, postponement, abandonment or terms and conditions of any proposed Sale
except to the extent such holder shall have failed to comply with the provisions of this Section 4. 
  
 4.4.4. Treatment of Options, Warrants and Convertible Securities. To the extent that any Options, Warrants or Convertible Securities are
subject to any Approved Drag-Along Sale pursuant to Section 4.3, the Drag Along Initiating Sellers may elect to require the holders of such Options, Warrants or Convertible Securities to: (i) exercise, convert or exchange such Options, Warrants or
Convertible Security on a cashless conversion or net exercise basis immediately prior to the closing of such Sale, if permitted under the terms of any such Option, Warrant or Convertible Security, to the extent necessary to Sell Common Shares to the
Prospective Buyer or (ii) sell such Options, Warrants or Convertible Securities in any Sale pursuant to Section 4.3, and provide that such holders shall receive in exchange for such Options, Warrants or Convertible Securities consideration equal to
the amount (if greater than zero) determined by subtracting from the aggregate purchase price per Common Share of Shares issuable upon exercise of such Options, Warrants or Convertible Securities to the extent then exercisable or convertible the
aggregate exercise price that would have been payable in connection with the exercise or conversion of such Options, Warrants or Convertible Securities to the extent then exercisable or convertible. The terms, conditions, obligations and
restrictions applicable 

  

 -30- 

 
under this Agreement to holders of Shares in connection with any Approved Drag-Along Sale (including the provisions of Sections 4.4.1, 4.4.2 and 4.4.3) shall
apply mutatis mutandi to holders of Options, Warrants and Convertible Securities. 
  
 4.4.5. Expenses. All reasonable out-of-pocket costs and expenses incurred by the Drag-Along Initiating Sellers or the Corporation in
connection with any proposed Sale pursuant to Section 4.3 (whether or not consummated), including all attorneys fees and charges, accounting fees and charges and finders, brokerage or investment banking fees, charges or commissions, shall be paid by
the Corporation; but if one or more proposed Sales pursuant to Section 4.3 are not consummated, the Corporation will not have to pay or reimburse more than $1,000,000 worth of such expenses of the Drag-Along Initiating Seller in connection with
those failed transactions. Each Shareholder will pay any other costs and expenses incurred by it in connection with any proposed Sale pursuant to this Section 4.3 (whether or not consummated). 
  
 4.4.6. Closing. The closing of a Sale to which Section 4.1,
4.2 or 4.3 applies shall take place at such time and place as the Prospective Selling Investors or the Drag-Along Initiating Sellers (as the case may be) shall specify by notice to each Participating Seller. At the closing of such Sale, each
Participating Seller shall deliver the certificates evidencing the Shares to be Sold by such Participating Seller, duly endorsed, or with stock (or equivalent) powers duly endorsed, for transfer with signature guaranteed, free and clear of any liens
or encumbrances, with any stock (or equivalent) transfer tax stamps affixed, against delivery of the applicable consideration. 
  
 4.5. Special ROFO. After the Initial Public Offering, the Beaudier Group Investors shall have a priority right of first offer in respect of any
proposed Transfer of Investor Shares by Caisse Investors under Section3.2(ii) or in accordance with the Registration Rights Agreement. 
  
 4.5.1. If the Caisse Investors desire to Transfer any Investor Shares in accordance with Section 3.2(ii), they shall furnish a written
notice to the Beaudier Group Investors. Such notice (a “Special Notice”) shall set out the number of Investor Shares proposed to be Transferred, the manner in which they are proposed to be Transferred, the price at which the Caisse
Investors propose to Transfer such Investor Shares (the “Specified Price”), and a period of either two (2) Business Days or five (5) Business Days, as the Caisse Investors may elect (the “Acceptance Period”), during
which the Beaudier Group Investors may irrevocably agree to purchase such shares at the Specified Price. The Beaudier Group Investors may accept the offer contained in the Special Notice with respect to all the shares referred to therein by
furnishing a written notice (an “Acceptance Notice”) to the Caisse Investors within the Acceptance Period specified in the Special Notice. In such event, the Transfer shall be completed within 60 Business Days of receipt of the
Acceptance Notice. Such acceptance shall not be conditional upon financing for the acquisition being obtained by the Beaudier Group Investors but if the Beaudier Group Investors fail to complete the Transfer prior to the end of the 60 Business Days
period (i) due to an inability to pay for Shares at closing, this Section 4.5 shall cease to apply and Caisse Investors shall be free, in addition to any other recourse it may have against the Beaudier Group Investors, at any time thereafter, to
Transfer any Investor Shares in accordance with Section 3.2(ii) or under the Registration Rights 

  

 -31- 

 
Agreement or (ii) for any other reason then this Section 4.5 shall cease to apply with respect to the Investor Shares that the Beaudier Group failed to
acquire and Caisse Investors shall be free, in addition to any other recourse it may have against the Beaudier Group Investors, at any time thereafter, to Transfer any such Investor Shares in accordance with Section 3.2(ii) or under the Registration
Rights Agreement. 
  
 4.5.1.1. If the Beaudier
Group Investors do not furnish an Acceptance Notice pursuant to Section 4.5.1, the Caisse Investors shall be free to Transfer any part or all of the Investor Shares referred to in the Special Notice in accordance with Section 3.2(ii) at a price
which is not less than the Specified Price and in the manner therein referred to during (A) the ten (10) Business Days following the expiry of the Acceptance Period, if a two (2) Business Day period was specified in the Special Notice; or (B) the
thirty-five (35) Business Days following the expiry of the Acceptance Period, if a five (5) Business Day period was specified in the Special Notice. 
  
 4.5.1.2. In the event that the Special Notice specified an Acceptance Period of five (5) Business Days; the Beaudier Group Investors did
not deliver an Acceptance Notice in response to the Special Notice; and the Caisse Investors subsequently failed to Transfer all the Investor Shares referred to in the Special Notice during the subsequent period of thirty-five (35) Business Days as
aforesaid; within the two (2) Business Days following the termination of such thirty-five (35) Business Day period, the Caisse Investors may furnish a further Special Notice (the “Second Notice”) setting out the same Specified Price
with respect to the remaining balance of the Investor Shares, whereupon the Beaudier Group Investors shall have one (1) Business Day in which to accept the offer contained in the Second Notice. If the Beaudier Group Investors do not furnish an
Acceptance Notice in response to the Second Notice as aforesaid, the Caisse Investors shall during the following ten (10) Business Days be free to Transfer such remaining Investor Shares pursuant to Section 3.2(ii) at a price not less than the
Specified Price. 
  
 4.5.2. If the Caisse
Investors are considering Transferring Investor Shares pursuant to their rights under the Registration Rights Agreement, they shall furnish the Beaudier Group Investors with a written notice to that effect, setting out the material details then
known to the Caisse Investors of the transaction or alternatives being considered, including the number of Investor Shares the Caisse Investors are considering Transferring and the proposed timing, in each case to the extent then known. The Caisse
Investors shall thereafter continuously and promptly provide the Beaudier Group Investors information known to the Caisse Investors with respect to the proposed offering which would assist the Beaudier Group Investors in preparing to be ready to
acquire the Investor Shares which the Caisse Investors are considering Transferring. Such notice and consultation process shall create no obligation on the part of the Caisse Investors to the Beaudier Group Investors or any other Person. 

 
 4.5.2.1. Not less than three (3) Business Days prior to
entering into an agreement with an underwriter or other financial intermediary with respect to 

  

 -32- 

 
the sale of Investor Shares in accordance with the Registration Rights Agreements the Caisse Investors shall furnish a written notice (a “Special
Notice”) to the Beaudier Group Investors setting forth the number of Investor Shares proposed to be sold as aforesaid; and their good faith estimate of the price at which the shares are expected to be sold in the transaction (the
“Specified Price”). The Beaudier Group Investors may during the two (2) following Business Days irrevocably accept the offer contained in the Special Notice to acquire all the Investor Shares referred to therein at the Specified
Price by furnishing a written notice (an “Acceptance Notice”) to the Caisse Investors. 
  
 4.5.2.2. If the Beaudier Group Investors do not furnish an Acceptance Notice pursuant to Section 4.5.2.1, during the thirty-five (35)
Business Days following the effectiveness of the Special Notice, the Caisse Investors may Transfer the Investor Shares referred to in the Special Notice in a transaction reasonably corresponding to the details provided to the Beaudier Group
Investors pursuant to Section 4.5.2. 
  
 4.5.2.3.
If the Beaudier Group Investors furnish an Acceptance Notice pursuant to Section 4.5.2.1, the transaction shall be completed as contemporaneously as may be practicable and desirable with the closing of the Public Offering of Shares by other
shareholders in accordance with the Registration Rights Agreement in which the Caisse Investors would otherwise have participated. If such Public Offering is not completed within sixty (60) Business Days of the Acceptance Notice by the Beaudier
Group Investors given under Section 4.5.2.1 the transaction shall nevertheless be completed within such sixty (60) Business Days period. If the Beaudier Group Investors fail to complete the transaction prior to the end of the 60 Business Days period
due to an inability to pay for Shares at closing, this Section 4.5 shall cease to apply and Caisse Investors shall be free, in addition to any other recourse it may have against the Beaudier Group Investors, at any time thereafter, to Transfer any
Investor Shares pursuant to their rights under the Registration Rights Agreement or Section 3.2(ii) hereunder. 
  
 4.5.2.4. If the Beaudier Group Investors acquires shares from the Caisse Investors in accordance with Section 4.5.2.3 and the Public
Offering specified therein occurred, promptly following such Public Offering, the Corporation shall advise the Caisse Investors and the Beaudier Group Investors of the price received by the Corporation or selling shareholders, as the case may be,
net of underwriting and other like commissions and the out of pocket expenses of the distribution borne by such selling shareholders (the “Net Price”). If the Net Price is greater or less than the Specified Price, a price adjustment
shall occur between the Caisse Investors and the Beaudier Group Investors and a payment shall be made promptly by one to the other such that, after giving effect to the payment, the Caisse investors shall have received from the Beaudier Group
Investors the same net amount as they would have received had they participated in such Public Offering. 
  

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 4.5.3. If the price specified in a Special Notice shall exceed the price at which the
Beaudier Group Investors may acquire the Investor Shares in accordance with Canadian Securities Laws without being required thereunder to make an offer at the same price to other shareholders and the Beaudier Group Investors notify the Caisse
Investors in the Acceptance Notice that they intend to acquire such Shares in compliance with Canadian Securities Laws, the Beaudier Group Investors shall forthwith proceed to make the offer so required as promptly as possible. 
  
 5. RIGHT OF PARTICIPATION (PREEMPTIVE RIGHT). The Corporation shall not issue or sell any
Shares or issue, sell or grant any Options, Warrants or Convertible Securities (or other rights to acquire Shares of the Corporation), or enter into any agreements providing for the issuance (contingent or otherwise) of, any Shares, in each case, to
any Person (each an “Issuance” of “Subject Securities”), except in compliance with the provisions of Section 5.1 or 5.2. 
  
 5.1. Right of Participation. 
  
 5.1.1. Offer. Not fewer than thirty (30) days prior to the consummation of an Issuance, a notice (the
“Participation Notice”) shall be furnished by the Corporation to each holder of Common Shares (the “Participation Offerees”). The Participation Notice shall include: 
  

	 	(a)	The principal terms of the proposed Issuance, including (i) the amount and kind of Subject Securities to be included in the Issuance, (ii) the number of Equivalent Shares
represented by such Subject Securities (if applicable), (iii) the percentage of the total number of Equivalent Shares outstanding as of immediately prior to giving effect to such Issuance which the number of Equivalent Shares held by such
Participation Offeree constitutes (the “Participation Portion”), (iv) the price (including if applicable, the Price Per Equivalent Share) per unit of the Subject Securities and (v) the name and address of the Person to whom the
Subject Securities will be issued (the “Prospective Subscriber”); and 

  

	 	(b)	An offer by the Corporation to issue, at the option of each Participation Offeree, to such Participation Offeree such portion of the Subject Securities to be included in the
Issuance as may be requested by such Participation Offeree (not to exceed such Participation Offeree’s Participation Portion of the total amount of Subject Securities to be included in the Issuance), on the same economic terms and conditions,
with respect to each unit of Subject Securities issued to the Participation Offerees, as apply to the Prospective Subscribers in such Issuance. 

  

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 5.1.2. Exercise. 
  
 5.1.2.1. General. Each Participation Offeree desiring to accept the offer contained in the Participation
Notice shall accept the offer in the Participation Notice by furnishing a written notice of such acceptance to the Corporation within twenty (20) days after the effectiveness of the Participation Notice specifying the amount of Subject Securities
(not in any event to exceed the Participation Portion of the total amount of Subject Securities to be included in the Issuance) which such Participation Offeree desires to be issued (each a “Participating Buyer”). Each Participation
Offeree who has not so accepted such offer shall be deemed to have waived all of his rights with respect to the Issuance, and the Corporation shall thereafter be free (for the 120-day period specified in Section 5.1.2.3) to issue Subject Securities
in the Issuance to the Prospective Subscriber and any Participating Buyers, at a price no less than the minimum price set forth in the Participation Notice and on other principal terms not substantially more favorable to the Prospective Subscriber
than those set forth in the Participation Notice, without any further obligation to such non-accepting Participation Offerees pursuant to Section 5. If, prior to consummation, the terms of such proposed Issuance shall change with the result that the
price shall be less than the minimum price set forth in the Participation Notice or the other principal terms shall be substantially more favorable to the Prospective Subscriber than those set forth in the Participation Notice, it shall be necessary
for a separate Participation Notice to be furnished, and the terms and provisions of this Section 5.1 separately complied with, in order to consummate such Issuance pursuant to this Section 5.1; provided, however, that in such case of a
separate Participation Notice, the applicable period to which reference is made in Section 5.1.1 and in the first sentence of this Section 5.1.2.1 shall be fifteen (15) days and ten (10) days respectively. 
  
 5.1.2.2. Irrevocable Acceptance. The acceptance of each
Participating Buyer shall be irrevocable except as hereinafter provided, and each such Participating Buyer shall be bound and obligated to acquire in the Issuance on the same terms and conditions, with respect to each unit of Subject Securities
issued, as the Prospective Subscriber, such amount of Subject Securities as such Participating Buyer shall have specified in such Participating Buyer’s written commitment. 
  
 5.1.2.3. Time Limitation. If at the end of the 120th day following the date of the effectiveness of the
Participation Notice the Corporation has not completed the Issuance, each Participating Buyer shall be released from his obligations under the written commitment, the Participation Notice shall be null and void, and it shall be necessary for a
separate Participation Notice to be furnished, and the terms and provisions of this Section 5.1 separately complied with, in order to consummate such Issuance pursuant to this Section 5.1, unless the failure to complete such Issuance resulted from
the failure of any Participating Buyer to comply with the terms of this Section 5.1 in which case, in which case the Corporation will have a reasonable time to complete such Issuance and any 

  

 -35- 

 
such breaching Participating Buyers will not be released from his obligations under or with respect to his acceptance of the offer contained in the
Participation Notice 
  
 5.1.3. Other Securities.
The Corporation may condition the participation of the Participation Offerees in an Issuance upon the purchase by such Participation Offerees of any securities (including debt securities) other than Subject Securities (“Other
Securities”) in the event that the participation of the Prospective Subscriber in such Issuance is so conditioned. In such case, each Participating Buyer shall acquire in the Issuance, together with the Subject Securities to be acquired
by it, Other Securities in the same proportion to the Subject Securities to be acquired by it as the proportion of Other Securities to Subject Securities being acquired by the Prospective Subscriber in the Issuance, on the same terms and conditions,
as to each unit of Subject Securities and Other Securities issued to the Participating Buyers, as the Prospective Subscriber shall be issued units of Subject Securities and Other Securities. 
  
 5.1.4. Certain Legal Requirements. In the event that the
participation in the Issuance by a holder of Common Shares (other than an Investor that is an Accredited Investor) as a Participating Buyer would require under applicable law (i) the registration or qualification of such securities or of any person
as a broker or dealer or agent with respect to such securities or (ii) the provision to any participant in the Sale of any specified information regarding the Corporation or the securities, such Shareholder (other than an Investor that is an
Accredited Investor) shall not have the right to participate in the Issuance. Without limiting the generality of the foregoing, it is understood and agreed that the Corporation shall not be under any obligation to effect a registration of such
securities under the Securities Act, or similar state, local or foreign statutes or the rules and regulations of the SEC, US state securities regulatory authorities or any Canadian Securities Authorities. 
  
 5.1.5. Further Assurances. Each Participation Offeree shall,
whether in his capacity as a Participating Buyer, Shareholder, officer or director of the Corporation, or otherwise, take or cause to be taken all such reasonable actions as may be necessary or reasonably desirable in order expeditiously to
consummate each Issuance pursuant to this Section 5.1 and any related transactions, including executing, acknowledging and delivering consents, assignments, waivers and other documents or instruments; filing applications, reports, returns, filings
and other documents or instruments with governmental authorities; and otherwise cooperating with the Corporation and the Prospective Subscriber. Without limiting the generality of the foregoing, each such Participating Buyer and Shareholder will
execute and deliver such subscription and other agreements or documents specified by the Corporation to which the Prospective Subscriber will be party. 
  
 5.1.6. Expenses. All reasonable costs and expenses incurred by the holders of Investor Shares or the Corporation in connection with any
proposed Issuance of Subject Securities (whether or not consummated), including all attorney’s fees and charges, all accounting fees and charges and all finders, brokerage or investment banking fees, charges or commissions, shall be paid by the
Corporation. The reasonable fees and 

  

 -36- 

 
charges of a single legal counsel representing any or all of the other Shareholders in connection with such proposed Issuance of Subject Securities (whether
or not consummated) shall be paid by the Corporation. Any other costs and expenses incurred by or on behalf of any other Shareholder in connection with such proposed Issuance of Subject Securities (whether or not consummated) shall be borne by such
Shareholder. 
  
 5.1.7. Closing. The
closing of an Issuance pursuant to Section 5.1 or 5.2 shall take place at such time and place as the Corporation shall specify by notice to each Participating Buyer. At the Closing of any Issuance under this Section 5.1.7, each Participating Buyer
shall be delivered the notes, certificates or other instruments evidencing the Subject Securities (and, if applicable, Other Securities) to be issued to such Participating Buyer, registered in the name of such Participating Buyer or his designated
nominee, free and clear of any liens or encumbrances, with any transfer tax stamps affixed, against delivery by such Participating Buyer of the applicable consideration. 
  
 5.2. Post-Issuance Notice. Notwithstanding the notice requirements of Sections 5.1.1 and 5.1.2, if approved in
writing by the Majority Investors, the Corporation may proceed with any Issuance prior to having complied with the provisions of Section 5.1; provided that the Corporation shall: 
  

	 	(a)	provide to each holder of Common Shares who would have been a Participation Offeree in connection with such Issuance (i) with prompt notice of such Issuance and (ii) the
Participation Notice described in Section 5.1.1 in which the actual price per unit of Subject Securities (and, if applicable, actual Price Per Equivalent Share) shall be set forth; 

  

	 	(b)	offer to issue to such Shareholder such number of securities of the type and proportion issued in the Issuance as may be requested by such holder (not to exceed such Participation
Offeree’s Participation Portion as defined in Section 5.1 multiplied by the number of Equivalent Shares included in the Issuance) on the same economic terms and conditions with respect to such securities as the subscribers in the Issuance
received; and 

  

	 	(c)	keep such offer open for a period often Business Days, during which period, each such holder of Common Shares may accept such offer by sending a written acceptance to the
Corporation committing to purchase an amount of such securities (not in any event to exceed the Participation Portion as defined in Section 5.1 multiplied by the number of Equivalent Shares included in such issuance). 

  

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 5.3. Excluded Transactions. The preceding provisions of this Section 5 shall not apply to:

  

	 	(a)	Any Issuance of Common Shares upon the exercise or conversion of any Common Shares, Options, Warrants or Convertible Securities outstanding on the date hereof or issued after the
date hereof in compliance with the provisions of this Section 5; 

  

	 	(b)	The Issuance of Shares to the Investors in connection with the Closing (including any Shares issued pursuant to the Subscription Agreement around the time of or within three (3)
months following the Closing); 

  

	 	(c)	Any Issuance of shares of Common Shares, Options or Convertible Securities to officers, employees or directors of the Corporation or its subsidiaries that has been approved by the
Board (or the Executive Committee) in connection with such Person’ employment arrangements with the Corporation or its subsidiaries (including the Issuances of stock options and sales of Common Shares contemplated by Section 2.6.1);

  

	 	(d)	Any Issuance of Common Shares, Options, Warrants or Convertible Securities in connection with any stock split or similar distribution or any merger, amalgamation, business
combination or acquisition transaction involving the Corporation or any of its subsidiaries; or 

  

	 	(e)	Any Issuance of Common Shares pursuant to or following the Initial Public Offering. 

  
 5.4. Acquired Shares. Any Subject Securities constituting Common Shares acquired by any Shareholder pursuant to this
Section 5 shall be deemed for all purposes hereof to be Investor Shares, Other Investor Shares and Management Shares hereunder of like kind with the Shares then held by the acquiring Shareholder. 
  
 5.5. Termination of Preemptive Rights. The obligations of the Company
to comply with Section 5 shall terminate upon an Initial Public Offering. 
  
 6.
INVESTOR GROUP REPRESENTATIVES. 
  
 6.1. Investor Group
Representatives. In order to efficiently administer the transactions contemplated hereby, including the nomination or veto of prospective independent members of the Board as contemplated by Section 2.1.3, delivery of notices to any Investor
under this Agreement and the communications of approvals or consent of various Investor Groups under various provisions of this Agreement (including Section 2.4.2), the Investors hereby designate the following Investor Group Representatives:

  
 6.1.1. Mr. Joshua Bekenstein will serve as
the initial Investor Group Representative for the Bain Investors until such time, if any, as the Majority Bain Investors elect to replace its Investor Group Representative and notify the Corporation and the other Investors (or the Investor Group
Representative for such other Investors Groups) of such replacement of the identity and address of the new Investor Group Representative for the Bain Investors; 
  

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 6.1.2. Mr. Laurent Beaudoin will serve as the initial Investor Group Representative for
the Beaudier Group Investors until such time, if any, as the Majority Beaudier Group Investors elect to replace its Investor Group Representative and notify the Corporation and the other Investors (or the Investor Group Representative for such other
Investors Groups) of such replacement of the identity and address of the new Investor Group Representative for the Beaudier Group Investors; and 
  
 6.1.3. Mr. Luc Houle will serve as the initial Investor Group Representative for the Caisse Investors until such time, if any, as the
Majority Caisse Investors elect to replace its Investor Group Representative and notify the Corporation and the other Investors (or the Investor Group Representative for such other Investors Groups) of such replacement of the identity and address of
the new Investor Group Representative for the Caisse Investors. 
  
 6.2. Authorization Each Investor Group Representative is hereby authorized (i) to give and receive all notices required to be given under this Agreement to or on behalf of any member of the Investor Group for which such Investor
Group Representative has been designated as a representative and (ii) to take any and all additional action as is contemplated to be taken by or on behalf of its respective Investor Group. 
  
 6.3. Replacement. If any Investor Group Representative becomes unable
to perform its responsibilities hereunder the Majority Bain Investors, the Majority Beaudier Group Investors or the Majority Caisse Investor (as the case may be) will promptly select and notify the Corporation and the other Investors of, a
replacement representative to fill such vacancy and such substituted representative thereafter shall be deemed to be that Investor Group’s Investor Group Representative for all purposes of this Agreement until replaced pursuant to this Section
6. 
  
 6.4. Action Binding on Investor Group. All actions,
decisions, instructions and notices of an Investor Group Representative taken, made or provided in accordance with this Agreement shall be conclusive and binding upon the Investor Group (and all Shareholders within such Investor Group) for which
that Investor Group Representative has been appointed as provided in this Section 6 to the same extent as if such Investor Group or Shareholder had taken such action, made such decision or provided or received such instruction or notice directly.
These actions, decisions, instructions and notices may include, among other things, any: (a) designation of members of the Board under Sections 2.1.1 or 2.1.2; (b) nomination or veto of prospective independent Board members under Section 2.1.3; (c)
removal of members of the Board by any Investor Group under Section 2.2; (d) Special Shareholder Approval action under Section 2.4.2; or (v) approval of officers under Section 2.4.5 
  

 -39- 

 6.5. Right to Rely. The Corporation and all other Shareholders can rely conclusively on the
instructions and decisions of such Investor’s Investor Group Representative, and no party hereunder nor any other Person shall have any cause of action against the Corporation or such other Shareholders for actions or omissions in reliance upon
the instructions or decisions of that Investor’s Investor Group Representative. 
  
 6.6. Notice. Any notice required to be given to a member of an Investor Group under this Agreement shall be addressed to such member and may be sent either to such member or his Investor Group Representative.
Any notice required to be given under this Agreement to an Investor Group shall be addressed and sent to such Investor Group Representative. 
  
 6.7. Specific Enforcement. Remedies available at law for any breach of the provisions of this Section 6 are inadequate; therefore, the Corporation,
the Shareholders and the Investor Group Representatives will be entitled to temporary and permanent injunctive relief without the necessity of proving damages or posting bond if any party brings an action to enforce the provisions of this Section 6.

  
 7. REMEDIES. 
  
 7.1. Generally. The Corporation and each holder of Shares shall have all remedies available at law, in equity or
otherwise in the event of any breach or violation of this Agreement or any default hereunder by the Corporation or any Shareholder. The parties acknowledge and agree that in the event of any breach of this Agreement, in addition to any other
remedies which may be available, each of the parties hereto will be entitled to specific performance of the obligations of the other parties hereto and, in addition, to such other equitable remedies (including preliminary or temporary relief) as may
be appropriate in the circumstances. 
  
 7.2. Deposit.
Without limiting the generality of Section 7.1, but subject to the terms and conditions set forth below, if any holder of Shares fails to deliver to the purchaser thereof the certificate or certificates evidencing Shares to be Sold pursuant to
Section 4 hereof, upon written notice to such holder of Shares such purchaser may, at its option, in addition to all other remedies it may have, deposit the purchase price for such Shares with any national bank or trust company having combined
capital, surplus and undivided profits in excess of One Billion Dollars ($1,000,000,000) (the “ Escrow Agent”) and the Corporation shall cancel on its books the certificate or certificates representing such Shares and thereupon all
of such holder’s rights in and to such Shares shall terminate. Thereafter, upon delivery to such purchaser by such holder of the certificate or certificates evidencing such Shares (duly endorsed, or with stock powers duly endorsed, for
transfer, with signature guaranteed, free and clear of any liens or encumbrances, and with any transfer tax stamps affixed), such purchaser shall instruct the Escrow Agent to deliver the purchase price (without any interest from the date of the
closing to the date of such delivery, any such interest to accrue to such purchaser) to such holder. Notwithstanding the foregoing provisions of this Section 7.2, this Section 7.2 will not apply to either (a) any Caisse Investor that is in good
faith contesting its obligation to deliver to a purchaser certificates evidencing Shares under Section 4 provided that Caisse notifies the purchaser promptly following receipt of the notice contemplated by the first sentence of this Section 7.2 for
so long as such good faith contest continues; or (b) Beaudier if it is in good faith contesting its obligation to deliver to a purchaser certificates evidencing Shares under Section 4 

  

 -40- 

 
provided that Beaudier so notifies the purchaser promptly following receipt of the notice contemplated by the first sentence of this Section 7.2 for so long
as such good faith contest continues; or (c) any other Beaudier Group Investor which (together with Beaudier) is in good faith contesting its obligation to deliver to a purchaser certificates evidencing Shares under Section 4 provided that such
Beaudier Group Investor so notifies the purchaser promptly following receipt of the notice contemplated by the first sentence of this Section 7.2, for so long as such good faith contest continues to be maintained by both such Beaudier Group Investor
and Beaudier. 
  
 8. LEGENDS. 
  
 8.1. Restrictive Legend. Each certificate representing Shares shall
have the following legend endorsed conspicuously thereupon: 
  
 “The voting of the shares represented by this certificate, and the sale, encumbrance or other disposition thereof, are subject to the provisions of a Unanimous Shareholders Agreement to which the Corporation
and its shareholders are party, a copy of which may be inspected at the principal office of the Corporation or obtained from the Corporation without charge.” 
  
 9. AMENDMENT, TERMINATION, ETC. 
  
 9.1. Oral Modifications. This Agreement may not be orally amended, modified, extended or terminated, nor shall any oral waiver of any of its terms
be effective. 
  
 9.2. Written Modifications. This
Agreement may be amended, modified, extended or terminated, and the provisions hereof may be waived, only by an agreement in writing signed by the Corporation, BRP, the holders of a majority of all Class A Common Shares then held by the Shareholders
and each Investor Group that then continues to hold more ten percent (10%) of the Class A Common Shares held by such Investor Group as of the Closing (including, for such purposes, any Class A Common Shares issued to such Investor Group within three
(3) months of the Closing pursuant to the Subscription Agreement). Each such amendment, modification, extension, termination and waiver shall be binding upon each party hereto and each holder of Shares subject hereto. In addition, each party hereto
and each Shareholder subject hereto may waive any of its rights hereunder, including any right under Section 2, by an instrument in writing signed by such party or holder. 
  
 9.3. Term. The provisions of this Agreement will terminate and be of no further force or effect upon the earliest to
occur of: (a) a Change of Control, (b) a time after the Closing when one Shareholder owns all of the outstanding Shares and (c) such time as the Majority Bain Investors, the Majority Beaudier Group Investors and the Majority Caisse Investors agree
in writing to terminate this Agreement. 
  
 9.4. Effect of
Termination. No termination under this Agreement shall relieve any Person of liability for breach prior to termination. 
  

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 10. DEFINITIONS. For purposes of this Agreement: 
  
 10.1. Certain Matters of Construction. In addition to the definitions referred to or set forth below in this Section
10: 
  
 (i) The words “hereof,
“herein”, “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular Section or provision of this Agreement, and reference to a particular Section of this Agreement shall include
all subsections thereof; 
  
 (ii) The word
“including” shall mean including, without limitation; 
  
 (iii) Definitions shall be equally applicable to both nouns and verbs and the singular and plural forms of the terms defined; and 
  
 (iv) The masculine, feminine and neuter genders shall each include the other. 
  
 10.2. Definitions. The following terms shall have the following
meanings: 
  
 “Accredited Investor” has the
meaning specified in Regulation D. 
  
 “Acquisition
Agreement” has the meaning set forth in the Recitals. 
  
 “Adverse Claim” means any pledge, charge, lien, security interest, mortgage, adverse claim or other encumbrance of any kind or character. 
  
 “Affiliate” means, with respect to any specified Person, (a) any other Person which directly or indirectly
through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person (for the purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by agreement or otherwise) and (b) with respect to any natural Person, any Member of the Immediate Family of such natural Person. 
  
 “Agreement” has the meaning set forth in the Preamble.

  
 “Approved Drag-Along Sale” means any bona
fide sale of the Corporation to any Person other than to an Affiliate of the Corporation or any Investor (whether structured as a Sale of Shares or assets, merger, consolidation, amalgamation, recapitalization, reorganization or any other
transaction or series of such transactions involving the Corporation or its subsidiaries) which, if consummated, would result in (a) a sale of all or Substantially All of the assets of the Corporation in which the holders of Common Shares would
receive consideration (whether in the form of purchase price, distributions of proceeds, dividend, redemption price, merger consideration or otherwise) consisting of cash or Marketable Securities or a combination of both cash and Marketable
Securities, (b) a Change of Control in which the holders of Common Shares 

  

 -42- 

 
would receive consideration consisting of cash or Marketable Securities or a combination of both cash and Marketable Securities or (c) a combination of the
results described in clauses (a) and (b) above; provided that in any such case the amount of cash included in the total consideration for such transaction equals not less than 25% of the total consideration value (calculated as provided in
Section 4.1.7). 
  
 “Bain Director” means a
member of the Board designated by one or more Bain Investors pursuant to the Section 2.1. 
  
 “Bain Investors” means Bain Capital Luxembourg Investments S.ar.l. and any of its Affiliates that from time to time holds Investor Shares originally issued to or issued with respect to Investor Shares
originally issued to or held by such entities. 
  
 “Beaudier” means Beaudier Inc., a corporation incorporated under the CBCA. 
  
 “Beaudier Director” means a member of the Board designated by one or more Beaudier Group Investors pursuant to Section 2.1. 

 
 “Beaudier Group Investors” means Beaudier, the other
Family Holding Companies and any Affiliate of Beaudier or of any other Family Holding Company that from time to time holds Investor Shares originally issued to or issued with respect to Investor Shares originally issued to or held by Beaudier or any
Family Holding Company. 
  
 “Board” has the
meaning set forth in Section 2.1. 
  
 “Bombardier” has the meaning set forth in the Preamble. 
  
 “BRP” has the meaning set forth in the Preamble. 
  
 “BRP Deal Commitment Letter” means the commitment letter dated November 11, 2003 from Merrill Lynch Capital Corporation, UBS Loan Finance
LLC, UBS Securities LLC, Bank of Montreal and Royal Bank of Canada to BRP with respect to financing for the acquisition under the Acquisition Agreement. 
  
 “Business Day” means any day, other than a Saturday or Sunday, on which the principal commercial banks located in Montreal, Canada and
Boston, Massachusetts (USA) are open for business during normal banking hours. 
  
 “Cash Equivalents” means: 
  
 (a) negotiable certificates of deposit, time deposits (including sweep accounts), demand deposits and bankers’ acceptances having a maturity of nine months or less and issued by any Financial Institution having
capital and surplus and undivided profits aggregating at least $1,000,000,000 and rated at least Prime-1 by Moody’s or A-l by S&P. 
  
 (b) corporate obligations having a maturity of nine months or less and rated at least Prime-1 by Moody’s or A-l by S&P or issued
by any Financial Institution; and 

  

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 (c) any direct obligation of the United States of America or Canada or any agency or
instrumentality thereof, or of any state, province or municipality thereof, (i) which has a remaining maturity at the time of purchase of not more than one year or which is subject to a repurchase agreement with any Financial Institution (or any
other financial institution referred to in clause (a) above) exercisable within one year from the time of purchase and (ii) which, in the case of obligations of any state or municipality, is rated at least Aaa by Moody’s or AAA by S&P; and

  
 (d) any mutual fund or other pooled
investment vehicle rated at least Aa by Moody’s or AA by S&P which invests principally in obligations described above. 
  
 “Caisse” means Caisse de dépôt et placement du Québec. 
  
 “Caisse Acquired Shares” has the meaning set forth in Section 2.1.1.4. 
  
 “Caisse Director” means a member of the Board designated by
one or more Caisse Investors pursuant to Section 2.1. 
  
 “Caisse Investors” means Caisse and any Affiliate of Caisse that from time to time holds Investor Shares originally issued to or issued with respect to Investor Shares originally issued to or held by Caisse. 
  
 “Canadian Securities Authorities” means any of The British
Columbia Securities Commission, Alberta Securities Commission, Saskatchewan Securities Commission, The Manitoba Securities Commission, Ontario Securities Commission, Commission des valeurs mobilières du Québec, Justice Securities
Administration (New Brunswick), Nova Scotia Securities Commission, Registrar of Securities (Prince Edward Island), Director of Securities (Government of Newfoundland and Labrador), Registrar of Securities (Northwest Territories Justice Securities
Registry), Registrar of Securities (Yukon Justice), Nunavut Legal Registries, and any of their successors. 
  
 “Canadian Securities Laws” means the securities legislation of each of the provinces and territories of Canada, as amended from time to
time, and the rules, regulations, blanket orders and orders having application to the Corporation and forms made or promulgated under that legislation and the policies, instruments, bulletins and notices of one or more of the Canadian Securities
Authorities. 
  
 “CBCA” means the Canada Business
Corporations Act, R.S.C. 1985, c.C-44, as now enacted and as from time to time amended, reenacted or replaced and in effect from time to time. 
  
 “Change of Control” means any Transfer resulting in 70% or more of the then outstanding Class A Common Shares being held by any Person or
group of Persons acting in concert (other than the Investors and their Affiliates and other than an underwriter in connection with a Public Offering). 
  
 “Class A Common Shares” means the Class A Common Shares of the Corporation. 
  

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 “Class B Common Shares” means the Class B Common Shares of the Corporation. 

 
 “Closing” means the consummation of the closing under the
Acquisition Agreement. 
  
 “Closing Date” means
the date on which the Closing occurs. 
  
 “Common
Shares” means the common shares of the Corporation (including the Class A Common Shares and the Class B Common Shares). 
  
 “Competing Activities” means (a) manufacturing, selling, distributing, designing, developing or marketing recreational products,
including snowmobiles, personal watercrafts, all-terrain vehicles, karts, sportboats, outboard engines, snow-grooming equipment and multipurpose tracked vehicles; (b) manufacturing, selling, distributing, designing, developing or marketing engines
that power recreational products, including snowmobiles, personal watercrafts, all-terrain vehicles, sportboats, motorcycles, karts, scooters and light weight and ultra light aircraft; or (c) manufacturing, selling, distributing, designing,
developing or marketing, accessories and clothing, or parts incorporated in or related to any of the products described in (a) and (b) hereof; 
  
 “Convertible Securities” means any evidence of indebtedness, share capital (other than Common Shares) or other securities (other than
Options and Warrants) which are directly or indirectly convertible into or exchangeable or exercisable for Common Shares. 
  
 “Corporation” has the meaning set forth in the Preamble. 
  
 “Drag-Along Initiating Sellers” has the meaning specified in Section 4.3.1. 
  
 “Electing Purchaser” has the meaning set forth in Section
4.1.2. 
  
 “Equivalent Shares” means, at any date
of determination, (a) as to any outstanding Common Shares, such number of shares and (b) as to any outstanding Options, Warrants or Convertible Securities, the maximum number of Common Shares for which or into which such Options, Warrants or
Convertible Securities may at the time be exercised, converted or exchanged (or which will become exercisable, convertible or exchangeable on or prior to, or by reason of, the transaction or circumstance in connection with which the number of
Equivalent Shares is to be determined). 
  
 “Escrow
Agent” has the meaning set forth in Section 7.2. 
  
 “Executive Committee” has the meaning set forth in Section 11.2. 
  
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as in effect from time to time. 
  
 “Family Holding Companies” means, collectively, Beaudier, Jadier International Inc., Gestion J.I.C.A. inc. and Fonds Achbée Inc.,
in each case for so long as such corporation continues to be used as a holding corporation for some or all of the Members of the Bombardier/Beaudoin Family and Members of the Bombardier/Beaudoin Family continue to 

  

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hold and own, directly or indirectly, not less than 85% of the beneficial ownership interests in such corporation. 
  
 “Family Holding Companies’ Agreement” means the
Agreement dated December 18, 2003 among Beaudier, Jadier International Inc., Gestion J.I.C.A. inc. and Fonds Achbée Inc., a copy of which has been provided to the Corporation and each Investor Group Representative. 
  
 “Financial Institution” shall be a United States or Canadian
bank or similar financial institution having a combined capital, surplus and undivided profit of at least $1,000,000,000. 
  
 “First Offer Holder” has the meaning set forth in Section 4.1.1. 
  
 “Initial Public Offering” means the first sale of Common Shares (whether in a primary offering of new
shares or a secondary offering of issued and outstanding shares) to an underwriter for reoffering to the public in a Public Offering pursuant to (i) an effective registration statement filed with the SEC on Form S-l (or any successor form), (ii) a
preliminary and final prospectus filed with any Canadian Securities Authority under Canadian Securities Laws or (iii) comparable mechanics under the securities laws of any other jurisdiction. 
  
 “Investor Group” means each of the Bain Investors, the
Beaudier Group Investors and the Caisse Investors; and the phrase “consent of all Investor Groups” or “approval of all Investor Groups” or equivalent phrases means consent or approval by each of the Majority Bain Investors, the
Majority Beaudier Group Investors and the Majority Caisse Investors. 
  
 “Investor Shares” means all Common Shares held by an Investor, whenever issued. 
  
 “Investors” means, collectively, Bain Investors, the Beaudier Group Investors and the Caisse Investors. 
  
 “Issuance” has the meaning set forth in Section 5.

  
 “Majority Bain Investors” means, as of any
date, the holders of a majority of the Class A Common Snares held by the Bain Investors. 
  
 “Majority Beaudier Group Investors” means, as of any date, the holders of a majority of the Class A Common Shares held by the Beaudier Group Investors. 
  
 “Majority Caisse Investors” means, as of any date, the
holders of a majority of the Class A Common Shares held by the Caisse Investors. 
  
 “Majority Investors” means, as of any date, the holders of a majority of all Class A Common Shares then held by Investors and outstanding on such date. 
  
 “Management Shares” means (a) all Common Shares held by a
Manager, whenever issued, including all Common Shares issued upon the exercise, conversion or exchange of any Options, Warrants or Convertible Securities and (b) all Options, Warrants and Convertible Securities held by a Manager (treating such
Options, Warrants and Convertible Securities as a number of Shares equal to the number of Equivalent Shares represented by such Options, 

  

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Warrants and Convertible Securities for all purposes of this Agreement except (i) for purposes of Sections 4.1, 4.2 and (ii) as otherwise specifically set
forth herein). 
  
 “Managers” has the meaning set
forth in the Preamble. 
  
 “Marketable
Securities” means, (a) Cash Equivalents, and (b) any other securities that both (i) are listed or traded on a Recognized Securities Exchange and have an average daily trading volume of over $25 million (Cdn. Dollars or U.S. dollar
equivalent, and calculated on 30-day weighted average (by dollar volume) basis) and (ii) subject to any customary lockup agreement entered into in connection with the Sale transaction (which will in no event prohibit trading for more than 180 days),
will be tradable in either Canada or the U.S. without any further registration under the securities laws of such jurisdiction, subject to compliance with any applicable securities law limitations under Canadian or U.S. securities laws. 

 
 “Members of the Bombardier/Beaudoin Family” means, each
of Laurent Beaudoin and Claire Bombardier Beaudoin, Janine Bombardier, J.R. André Bombardier and Huguette Bombardier Fontaine and Jean-Louis Fontaine, and any Member of the Immediate Family of each such individual. 
  
 “Members of the Immediate Family” means, with respect to any
individual, each spouse (whether by marriage or civil union) or common law partner (as defined in the Income Tax Act (Canada)) or child or other descendants (whether by birth or adoption) of such individual, each spouse (whether by marriage
or civil union) or common law partner (as defined in the Income Tax Act (Canada)) of any of the aforementioned individuals, each trust created solely for the benefit of one or more of the aforementioned Persons and their spouses and each
custodian or guardian of any property of one or more of the aforementioned Persons in his capacity as such custodian or guardian. 
  
 “Non-Strategic Institutional Investor” means a pension fund, private equity investor, investment company or similar non- industrial
investor that does not have any direct or indirect ownership interest of more than 15% in any Person that has, on a consolidated basis together with its controlled subsidiaries, revenues for the most recent fiscal year ending prior to the time of
determination attributable to Competing Activities in excess of three hundred seventy-five million dollars ($375,000,000). 
  
 “Offer Notice” has the meaning set forth in Section 4.1.1. 
  
 “Options “ means any options to subscribe for, purchase or otherwise directly acquire Common Shares, other
than any such option held by the Corporation or any right to purchase shares pursuant to this Agreement. 
  
 “Original Bain Shares” means the Class A Common Shares originally issued to the Bain Investors as of the Closing or issued to the Bain
Investors within three (3) months after Closing pursuant to the Subscription Agreement. 
  
 “Original Beaudier Group Shares” means the Class A Common Shares originally issued to Beaudier Group Investors as of the Closing or issued to the Beaudier Group Investors within three (3) months after
Closing pursuant to the Subscription Agreement. 
  

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 “Original Caisse Shares” means the Class A Common Shares originally issued to the Caisse
Investors as of the Closing or issued to the Caisse Investors within three (3) months after Closing pursuant to the Subscription Agreement. 
  
 “Other Director” means a member of the Board designated by the Majority Investors, other than a Bain Director, Beaudier Director or
Caisse Director. 
  
 “Other Investor Shares”
means (a) all Common Shares originally issued to, or issued with respect to shares originally issued to, or held by, an Other Investor, whenever issued, including all Common Shares issued upon the exercise, conversion or exchange of any Options,
Warrants or Convertible Securities and (b) all Options, Warrants and Convertible Securities originally granted or issued to an Other Investor (treating such Options, Warrants and Convertible Securities as a number of Shares equal to the number of
Equivalent Shares represented by such Options, Warrants and Convertible Securities for all purposes of this Agreement except as otherwise specifically set forth herein). 
  
 “Other Investors” has the meaning set forth in the Preamble. 
  
 “Other Securities” has the meaning set forth in Section
5.1.3. 
  
 “Participating Buyer” has the meaning
set forth in Section 5.1.2.1. 
  
 “Participating
Seller” has the meaning set forth in Section 4.2.2. 
  
 “Participation Notice” has the meaning set forth in Section 5.1.1. 
  
 “Participation Offerees” has the meaning set forth in Section 5.1.1. 
  
 “Participation Portion” has the meaning set forth in Section 5.1.1. 
  
 ‘“Person” means any individual, partnership, corporation, company, association, trust, joint venture,
limited liability company, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof. 
  
 “Preferred Shares” means the preferred shares of the Corporation (including the Corporation’s Class A
Preferred Shares). 
  
 “Price Per Equivalent
Share” means the Board’s good faith determination of the price per Equivalent Share of any Convertible Securities or Options which are the subject of an Issuance pursuant to Section 5 hereof, as determined by an independent committee
of the Board formed for such purpose. 
  
 “Private
Placement Transaction” means a sale or distribution of Shares that is not subject to registration requirement under applicable securities laws (including Canadian Securities Laws, Section 5 of the Securities Act or comparable provisions of
the securities laws of other countries). 
  
 “Pro Rata
Portion” has the meaning given to it in Section 4.2.3. 
  

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 “Prospective Buyer” means any Person proposing to purchase shares from a Prospective
Selling Investor. 
  
 “Prospective Selling
Investor” has the meaning set forth in Section 4.1 
  
 “Prospective Subscriber” has the meaning set forth in Section 5.1.1. 
  
 “Public Offering” means a public offering and sale of Common Shares for cash pursuant to (i) an effective registration statement under the Securities Act, (ii) a preliminary and final prospectus filed
with any Canadian Securities Authority under Canadian Securities Law or (iii) comparable mechanics under the securities laws of any other jurisdiction. 
  
 “Recognized Securities Exchange” means any established trading market or quotation system for the trading of securities, including any
established electronic securities market. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement entered into on or about the date of this Agreement among the Corporation and the Investors. 
  
 “Regulation D” means Regulation D under the Securities Act.

  
 “Resident Canadian” means an individual who
is “Canadian” for purposes of both the Investment Canada Act and the CBCA. 
  
 “ROFO Price” has the meaning set forth in Section 4.1.1. 
  
 “Sale” means a Transfer for value. 
  
 “SEC” means the U.S. Securities and Exchange Commission. 
  
 “Section 3.1 Permitted Transferee” has the meaning set forth in Section 3.1. 
  
 “Section 3.2 Private Placement Permitted Transferee” has the
meaning set forth in Section 3.2. 
  
 “Securities
Act” means the Securities Act of 1933, as in effect from time to time. 
  
 “Securities Exchange Act” has the meaning specified in Section 4.4.2. 
  
 “Shares” means all Common Shares (including, all Investor Shares, Other Investor Shares and Management Shares), all Preferred Shares and
all other share capital, if any, of the Corporation. 
  
 “Significant Subsidiary” means any direct or indirect subsidiary of the Corporation as of immediately after the Closing and any other Person which thereafter becomes a direct or indirect subsidiary of the Corporation and
meets any of the following conditions: (a) the Corporation’s or its other subsidiaries’ investments in and advances to such subsidiary exceed 5% of the total assets of the Corporation and its subsidiaries on a consolidated basis; (b) the
Corporation’s and its other subsidiaries proportionate share of the total assets (after inter-company eliminations) exceeds 5% of the total assets of the Corporation and its subsidiaries on a consolidated basis, or 

  

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(c) the Corporation’s and its other subsidiaries’ equity in the income from continuing operations before income taxes, extraordinary items and
cumulative effect of a change in accounting principle of such subsidiary exceeds 5% of such income of the Corporation and its subsidiaries on a consolidated basis. 
  
 “Shareholders” has the meaning set forth in the Preamble. 
  
 “Special Shareholder Approval” has the meaning set forth in
Section 2.4.2. 
  
 “Subject Securities” has the
meaning set forth in Section 5. 
  
 “Subject
Shares” has the meaning set forth in Section 4.1.1. 
  
 “Subscription Agreement” means the Subscription Agreement entered into on or about the date of this Agreement among the Corporation and the Investors. 
  
 “Substantially All” means not less that 80%. 
  
 “Tag Along Holder” has the meaning set forth in Section 4.2.1. 
  
 “Tag Along Notice” has the meaning set forth in Section
4.2.1. 
  
 “Tag Along Offer” has the meaning set
forth in Section 4.2.2. 
  
 “Tag Along Sale
Percentage” has the meaning set forth in Section 4.2.1. 
  
 “Tag Along Sellers” has the meaning set forth in Section 4.2.2. 
  
 “Transfer” means any sale, assignment, pledge, hypothecation, granting of security interest in, encumbrance or other transfer or disposition of any Shares to any other Person, whether directly,
indirectly, voluntarily, involuntarily, by operation of law, pursuant to judicial process or otherwise. 
  
 “Warrants” means any warrants to subscribe for, purchase or otherwise directly acquire Common Shares. 
  
 11. MISCELLANEOUS. 
  
 11.1. Confidential Information; Special Information Rights. 
  
 11.1.1. Each Shareholder will keep confidential and will not
disclose, divulge or use for any purpose, other than to monitor and manage its investment in the Corporation and for purposes incidental thereto, any Confidential Information, unless such Confidential Information (a) is known or becomes known
generally to the public (other than as a result of a breach of this paragraph by such Shareholder) or (b) is made known or disclosed to the Shareholder by a third party who is not known by the Shareholder to owe a duty of trust or confidence to the
Corporation; provided, however, (i) any Shareholder may disclose Confidential Information to (A) its representatives, attorneys, accountants, consultants, and other professionals on a confidential basis in connection 

  

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with monitoring and managing its investment in the Corporation or (B) as may otherwise be required by law, legal process (including arbitration) or
regulatory requirements (including tax regulatory requirements); and (ii) any Investor may also disclose Confidential Information to (A) any prospective purchaser of any Common Shares from such Shareholder in a proposed transaction to which Section
4.1, 4.2 or 4.3 applies if such prospective purchaser agrees to be bound by a confidentiality agreement in substantially the form attached hereto as Exhibit A and names the Corporation and the Investors as third party beneficiaries of such agreement
or (B) any Affiliate of such Investor on a confidential basis or (C) to such Investors’ shareholders, limited partners or members on a confidential basis to the extent required by law or by agreements. For purposes of this paragraph,
“Confidential Information” means any information with respect to this Agreement or arrangement contemplated by it and any confidential or proprietary information that such Shareholder obtains from the Corporation pursuant to
financial statements, reports and other materials provided by the Corporation to such Shareholder. 
  
 11.1.2. Notwithstanding the foregoing, except as reasonably necessary to comply with applicable securities laws, each party (and each
representative of such party) may disclose to any and all persons the tax treatment and tax structure of any transaction contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to such party
relating to such tax treatment and tax structure. 
  
 11.1.3. The Corporation shall forthwith, without prior request and without any fees or charges whatsoever, for so long as any Investor Group is entitled to designate any member of the Board pursuant to Section 2.1 (but whether or not such
Investor Group exercises such rights) provide to such Investor Group’s Investor Group Representative a copy of all notices, information and documents provided to the Board or to members of the board of BRP (or to members of the board of any
other subsidiary which such Investor Group is then entitled under Section 2.3 to designate members of the board) at the same time and in the same manner as same are communicated to such members. Furthermore, as long as the Corporation is not a
reporting issuer, the Corporation shall also provide to the Investor Group Representative, upon reasonable notice, access to all books and records or other information with respect to the Corporation or any Affiliate thereof, to the same extent and
in the same manner as a director or a partner thereof, as the case may be, could legally require. This Section 11.1.3 shall cease to be in effect with respect to any Investor Group if and when the Investors constituting such Investor Group
collectively own less than 10% of the number of Class A Common Shares originally issued to members of such Investor Group as of Closing (including, for such purposes, any Class A Common Shares issued to such Investor Group within three (3) months of
the Closing pursuant to the Subscription Agreement). 
  
 11.2.
Committees. From time to time, the Board may appoint one or more committees. The scope of authority for and composition of such committees will be approved in advance by the Board; provided that there shall be an executive committee of
the Board (the “Executive Committee”) composed of: two Bain Directors (for so long as the Bain Investors are entitled to designate at least three Bain Directors pursuant to Section 2.1.1.1), one Beaudier Director (for so long as the
Beaudier Group Investors are entitled to designate at least one Beaudier Director 

  

 -51- 

 
pursuant to Section 2.1.1.2) and one Caisse Director (for so long as the Caisse Investors are entitled to designate at least one Caisse Director pursuant to
Section 2.1.1.3). If and when the Caisse Investors are no longer entitled to designate any members of the Board pursuant to Section 2.1.1.3, and if and for so long as the Beaudier Group Investors are entitled to elect at least two members of the
Board under Section 2.1.1.5 or (to the extent Section 2.1.1.6 is applicable) at least three members of the Board under Sections 2.1.1.2 and 2.1.1.6, the Beaudier Group Investors will also be entitled to designate a second Beaudier Director to serve
on the Executive Committee. The Executive Committee will have authority to take actions on behalf of the Board and to authorize the Corporation and its officers to take actions (including the actions specified in Section 2.4.1). Any matter as to
which the vote of the Executive Committee is split in a tie vote shall be submitted to the entire Board for final decision. 
  
 11.3. Further Assurances. Subject to Section 2.4.4.1, each holder of Shares will cast all votes to which such Shareholder is entitled with respect
to such Shares, whether at any annual or special meeting by written consent or otherwise, and take such other actions as may reasonably be requested by the Majority Investors to give effect to the agreements set forth in this Agreement. Without
limiting the generality of the foregoing, each holder of Class B Common Shares and, subject to Section 2.4.4.1, each holder of Preferred Shares agrees to: (i) cast all votes to which such Shareholder may be or become entitled with respect to such
Shares (under the CBCA or otherwise), whether at any annual or special meeting by written consent or otherwise, with respect to any merger, amalgamation, consolidation, sale of all or Substantially All assets, Public Offering or other matter
(including any of the matters described in Section 2.4.1 or 4.3) in the same manner as Class A Common Shares are voted in connection with such matter and (ii) take such other actions as may reasonably be requested by the Majority Investors to
cooperate in connection with and support any Approved Drag-Along Sale or other transaction that has received the requisite approvals of the Board or Shareholders as provided under this Agreement (without regard to any greater approval requirement
that might otherwise apply under the CBCA or other applicable law). The Corporation will not give effect to any action by any holder of Shares or any other Person which is in contravention of this Agreement. 
  
 11.4. Agreement to Redeem Class A Preferred Shares Upon IPO. If all
Class A Preferred Shares of the Corporation are not redeemed prior to the Initial Public Offering, the Corporation will exercise its rights under the articles of incorporation (as amended and in effect as of the Closing Date) to voluntarily redeem
all such then outstanding Class A Preferred Shares promptly upon consummation of the Initial Public Offering to the extent that such redemption is permitted under the provisions of the financing agreements of the Corporation and its subsidiaries and
by applicable law. 
  
 11.5. Authority; Effect. Each party
hereto represents and warrants to and agrees with each other party that the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized on behalf of such party and do not violate
any agreement or other instrument applicable to such party or by which its assets are bound. This Agreement does not, and shall not be construed to, give rise to the creation of a partnership among any of the parties hereto, or to constitute any of
such parties members of a joint venture or other association. BRP shall be jointly and severally liable for all obligations of the Corporation pursuant to this Agreement. 
  

 -52- 

 11.6. Notices. Any notices and other communications required or permitted in this Agreement shall
be effective if in writing and (a) delivered personally, (b) sent by facsimile or email, or (c) sent (i) by internationally recognized courier service or (ii) by registered or certified mail, postage prepaid, in each case, addressed as follows:

  
 If to the Corporation or BRP to it: 
  
 c/o Beaudier Inc. 
 1000 de La Gauchetière West 
 Suite
4310 
 Montréal, Québec H3B 4W5 
 Facsimile: (514)861-0032 
 E-mail: jacques.levesque@beaudier.com 
 Attention: Jacques Levesque 
  
 and to: 
  
 c/o Bain Capital Partners, LLC 
 111
Huntington Avenue 
 Boston, MA 02199 
 Facsimile: (617)516-2010 
 E-mail: mlevin@baincapital.com 
 Attention: Matthew S. Levin 
  
 and to: 
  
 c/o CDP Capital Amérique 
 Centre CDP
Capital 
 1000, Place Jean-Paul Riopelle 
 Montréal, Qc, H2Z 2B3 
 Tel: (514) 847-2447 
 Facsimile: (514) 847-2493 
 Attention: Luc
Houle & Robert Côté 
 E-mail: lhoule@cdpcapital.com& rcote@cdpcapital.com 
  
 If to a Bain Investor, to it at both: 
  
 33, rue Henri VII 
 L-1725 Luxembourg 
 Facsimile: 352 26 26 14
444 
 Attn: Theo J. Van Den Berghe, Manager 
 Frank Bergman, Manager 
  
 With
a copy to: 
  
 Michael Siefke, Manager 
 c/o Bain Capital Munich 
  

 -53- 

 Beteilgungsberatung GmbH 
 Maximilianstrasse 11 
 80539 Munich, Germany 
 Facsimile: 49 89 244 41 07 31 
  
 If to a Beaudier Group Investor, to it: 
  
 c/o Beaudier Inc. 
 1000 de la
Gauchetiére St. West, suite 4310 
 Montréal, Qc, H3B 4W5 
 Facsimile (514) 861-0032 
 E-mail:
jacques.levesque@,beaudier.com & 
              louis.laporte@beaudier.com

 Attention: Jacques Levesque & Louis Laporte 
  

If to a Caisse Investor, to it: 
  
 c/o CDP Capital Amérique 
 Centre CDP
Capital 
 1000, Place Jean-Paul Riopelle 
 Montréal, Qc, H2Z 2B3 
 Tel: (514) 847-2447 
 Facsimile: (514) 847-2493 
 Attention: Luc
Houle & Robert Côté 
 E-mail: lhoule@cdpcapital.com& rcote@cdpcapital.com 
  
 In each case with a copy to each of: 
  
 Ropes & Gray LLP 
 One International Place 
 Boston,
Massachusetts 02110 
 Facsimile: 1-617-951-7050 
 E-mail: nstillwell@ropesgray.com 
 Attention: R. Newcomb Stillwell 
  
 Osier Hoskin & Harcourt LLP 
 1000 de la Gauchetière St. West, suite 2100 
 Montréal, Qc, H3B 4W5 
 Facsimile: 1-514-904-8101 
 E-mail: blevitt@osler.com 
 Attention: Brian
Levitt 
  

 -54- 

 Fasken Martineau DuMoulin LLP 
 Stock Exchange Tower 
 Suite 3400, P.O. Box
242 
 800 Place- Victoria 
 Montréal, Québec 
 Canada H4Z 1E9 
 Facsimile: (514)397-7600 
 E-mail: rpare@mtl.fasken.com & dpicotte@mtl.fasken.com 
 Attention: Robert Paré & Daniel Picotte 
  
 If to an Other Investor or a Manager, to him at the address set forth in the stock record book of the Corporation. 
  
 Notice to the holder of record of any Share shall be deemed to be notice to
the holder of such Shares for all purposes hereof. 
  
 Unless
otherwise specified herein, such notices or other communications shall be deemed effective (a) on the date received, if personally delivered, (b) on the date received if delivered by facsimile or email on a Business Day, or if not delivered on a
Business Day, on the first Business Day thereafter, (b) two Business Days after being sent by internationally recognized courier service, and (c) three Business Days after deposit with the U.S. or Canadian postal service, if sent by registered or
certified mail. Each of the parties hereto will be entitled to specify a different address by giving notice as aforesaid to each of the other parties hereto. 
  
 11.7. Binding Effect, Other Agreements, Etc. This Agreement constitutes the entire agreement of the parties and their respective Affiliates with
respect to its subject matter, supersedes all prior or contemporaneous oral or written agreements or discussions with respect to such subject matter, and shall be binding upon and inure to the benefit of the parties hereto and their respective
heirs, representatives, successors and assigns. In the event of any conflict or inconsistency between the terms of this Agreement and the terms of the Family Holding Companies Agreement or the Corporation’s By-laws, the terms of this Agreement
shall prevail. 
  
 11.8. Descriptive Headings. The
descriptive headings of this Agreement are for convenience of reference only, are not to be considered a part hereof and shall not be construed to define or limit any of the terms or provisions hereof. 
  
 11.9. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one instrument. 
  
 11.10. Severability. In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect, such provision
shall be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law. The provisions hereof are severable, and in the event any provision hereof should be held
invalid or unenforceable in any respect, it shall not invalidate, render unenforceable or otherwise affect any other provision hereof. 
  

 -55- 

 12. GOVERNING LAW. 
  
 12.1. Governing Law. This Agreement and all claims arising out of or based upon this Agreement or relating to the subject matter hereof shall be
governed and interpreted by and construed in accordance with the substantive laws of the Province of Québec and the federal laws of Canada applicable in the Province of Québec, including the CBCA, without reference to or giving effect
to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction. This Agreement will be treated in all respects as a Québec contract. 
  
 12.2. Consent to Jurisdiction. Each party to this Agreement, by its
execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction of the courts sitting in the District of Montreal for the purpose of any action, claim, cause of action or suit (in contract, delict or otherwise), inquiry, proceeding or
investigation arising out of or based upon this Agreement or relating to the subject matter hereof, (b) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, and agrees not to allow any of its subsidiaries to
assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named court, that its property is exempt or immune from attachment or execution, that any such
proceeding brought in the above-named court is improper, or that this Agreement or the subject matter hereof or thereof may not be enforced in or by such court and (c) hereby agrees not to commence or maintain any action, claim, cause of action or
suit (in contract, delict or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating to the subject matter hereof or thereof other than before the above-named court nor to make any motion or take any
other action seeking or intending to cause the transfer or removal of any such action, claim, cause of action or suit (in contract, delict or otherwise), inquiry, proceeding or investigation to any court other than the above-named court whether on
the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, to the extent that any party hereto is or becomes a party in any litigation in connection with which it may assert indemnification rights set forth in this agreement, the
court in which such litigation is being heard shall be deemed to be included in clause (a) above. Notwithstanding the foregoing, any party to this Agreement may commence and maintain an action to enforce a judgment of the above-named court in any
court of competent jurisdiction. Each party hereto hereby consents to service of process in any such proceeding in any manner permitted by the laws of Québec, and agrees that service of process by registered or certified mail, return receipt
requested, at its address specified pursuant to Section 11.2 hereof is reasonably calculated to give actual notice. 
  
 12.3. Exercise of Rights and Remedies. No delay or omission in the exercise of any right, power or remedy accruing to any party as a result of any
breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default, or of any similar breach or default occurring later; nor
shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring before or after that waiver. 
  

 -56- 

 Shareholders Agreement 
  
 IN WITNESS WHEREOF, each of the undersigned has duly executed this Agreement (or caused this Agreement to be executed on its
behalf by its officer or representative thereunto duly authorized) under seal as of the date first above written. 
  

									
	 THE CORPORATION:
	 	 	 	 J.A. BOMBARDIER (J.A.B.) INC.

					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 BRP:
	 	 	 	 BOMBARDIER RECREATIONAL PRODUCTS INC.

					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 THE BAIN INVESTORS:
	 	 	 	 BAIN CAPITAL LUXEMBOURG
INVESTMENTS
 S.A.R.L.

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 THE BEAUDIER GROUP
 INVESTORS:
	 	 	 	 BEAUDIER INC.

					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

	
	
	/s/ Illegible
	 

  

 Shareholders Agreement 
  

									
	 	 	 	 	JADIER INTERNATIONAL INC.
					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 	 	 	 	GESTION J.I.C.A. INC.
					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 	 	 	 	FONDS ACHBÉE INC.
					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

									
	 THE CAISSE INVESTORS:
	 	 	 	CAISSE DE DÉPÔT ET PLACEMENT DU
QUÉBEC
					
	 	 	 	 	 	 	By:	 	 /s/ Illegile

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

 Shareholders Agreement 
  

									
	 BOMBARDIER:
	 	 	 	BOMBARDIER INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

 Schedule 1 
 Investor Share Holdings1 
  

					
	 Investor

	  	 (Number and Class)

	  	 Status

	 Bain Capital Luxembourg Investments S.ar.l.
	  	 152,299,950 Cl. A Common Shares
	  	 Bain Investor

	 Beaudier Inc.
	  	 63,965,979 Cl. A Common Shares
	  	 Beaudier Group

	 	  	 6,415,000 Cl. B Common Shares
	  	 Investor

	 Jadier International Inc.
	  	 14,214,662 Cl. A Common Shares
	  	 Beaudier Group

	 	  	 1,425,000 Cl. B Common Shares
	  	 Investor

	 Gestion J.I.C.A. Inc.
	  	 14,214,662 Cl. A Common Shares
	  	 Beaudier Group

	 	  	 1,425,000 Cl. B Common Shares
	  	 Investor

	 Fonds Achbée Inc.
	  	 14,214,662 Cl. A Common Shares
	  	 Beaudier Group

	 	  	 1,425,000 Cl. B Common Shares
	  	 Investor

	 Caisse de Dépôt et Placement du Québec
	  	 45,689,985 Cl. A Common Shares
	  	 Caisse Investor

	 Bombardier Inc.
	  	 50,000 Class A Pref. Shares
	  	 Bombardier

	 Others*
	  	 5,500,000 Cl. A or Cl. B Common Shares
	  	 
	 Reserved for Management Option Plan
	  	 25,500,000 Cl. B Common Shares
	  	 Manager

  

	*	Managers purchasing Class B Common Shares within three months of the Closing and Investors purchasing Class A Common Shares, if any, pursuant to Section 3 of the Subscription
Agreement. 

	1	Subject to final sign-off. 

  

 -60- 

 Schedule 2 
 Initial Members of the Board of Directors 
  

							
	 	  	 Name

	  	 “Class”

	  	 Resident Canadian?

	 	  	 	  	 	  	 (yes or no)

	1.	  	 Joshua Bekenstein
	  	 Bain Designated Director
	  	 No

	2.	  	 Mark Nunnelly
	  	 Bain Designated Director
	  	 No

	3.	  	 Matthew Levin
	  	 Bain Designated Director
	  	 No

	4.	  	 Jordan Hitch
	  	 Bain Designated Director
	  	 
	5.	  	 [To be named]
	  	 Bain Designated Director
	  	 
	6.	  	 Laurent Beaudoin
	  	 Beaudier Designated Director
	  	 Yes

	7.	  	 Pierre Beaudoin
	  	 Beaudier Designated Director
	  	 Yes

	8.	  	 J.R. Andre Bombardier.
	  	 Beaudier Designated Director
	  	 Yes

	9.	  	 Luc Houle
	  	 Caisse Designated Director
	  	 Yes

	10.	  	 Pierre Michaud
	  	 Caisse Designated Director
	  	 Yes

	11.	  	 	  	 Independent Director
	  	 
	12.	  	 	  	 Independent Director
	  	 
	13.	  	 	  	 Independent Director
	  	 

  

 -61- 

 Schedule 3 
 Criteria for Independence under Section 2.1.3.1 
  
 Each Investor will select for Initial Independent Nominees only individuals who are independent of management and the Investors and are free from any interest in and any business or other relationship with the Investors and their Affiliates
(including, for such purposes, all Members of the Immediate Family of each such Affiliate) which could, or could reasonably be perceived to, materially interfere with the director’s ability to act with a view to the best interests of the
Corporation and all the Shareholders. 
  

 -62- 

 Exhibit A 
  
 FORM OF CONFIDENTIALITY AGREEMENT 
  
 [Date] 
 J.A. Bombardier (J.A.B.) Inc.,

 [Address] 
  
 Bombardier Recreational Products Inc. 
 [Address] 
  
 [Investor] 
 [Address] 
  
 Attention of: 
  
 Dear Sir: 
  
 l (the “Company”) has requested information from
J.A. Bombardier (J.A.B.) Inc., Bombardier Recreational Products Inc. (collectively “BRP”) and [Investor] (the “Investor”) in connection with the Company’s consideration of a possible acquisition of [BRP] [/
or /] [                     (the “Division”)], (the “Proposed Transaction”). 
  
 The purpose of this agreement (the “Agreement”) is to set out the provisions
which are to apply with respect to any information (whether written or oral) that may be provided (whether on or after the date of this letter) by BRP, [the Investor] or the advisors (including the advisor to BRP,
                     (collectively referred to herein as the “Advisors”)) to the Company or its agents, debt financing
sources, directors, officers, advisors, auditors, representatives and employees (collectively known as, “Representatives”) in connection with the Proposed Transaction including, without limitation, all financial, technical and
operational information, information about the business, products and services of [BRP] / [the Division], as well as all notes, analyses, compilations, studies or other associated documents (collectively “Confidential Information”).

  
 Notwithstanding the foregoing, the Confidential Information does not include
any information that: 
  

	 	(a)	is generally available to the public at the time of disclosure; 

  

	 	(b)	is or becomes publicly available, other than as a result of a breach of this Agreement by the Company or its Representatives; 

  

	 	(c)	is or was received or becomes available from a third party source that is not known, by the Company, to be bound by a confidentiality agreement or other obligation of secrecy owed
to BRP [or Investor] with respect to such information; 

  

 -63- 

	 	(d)	which is acquired or developed by the Company through its research and development efforts without violating the terms of this Agreement and without having had access directly or
indirectly to the Confidential Information; 

  

	 	(e)	is known by the Company prior to its disclosure; or 

  

	 	(f)	is required by legal process or applicable law to be disclosed. 

  
 The Company agrees that the Confidential Information will be kept confidential and shall not, without the prior written consent of BRP, except as required by legal
process or applicable law, be disclosed in any manner whatsoever, in whole or in part, and shall not be used other than in connection with the evaluation of the Proposed Transaction. 
  
 Without the prior written consent of the other party, each party will not, and will direct its Representatives not to disclose to any person
either the fact that Confidential Information has been made available to the Company, that the Company is considering the Proposed Transaction or any other transaction involving BRP, or that discussions or negotiations are taking place or have taken
place, concerning the Proposed Transaction between the parties or any terms, conditions or other facts with respect to the Proposed Transaction, including the status thereof. 
  
 Moreover, the Company agrees to allow access to the Confidential Information exclusively to those of its Representatives who have a
reasonable need to know about and have access to the Confidential Information, for purpose of evaluating the Proposed Transaction, who are informed of the confidential nature of the information and who have agreed to abide by the terms of this
Agreement. The Company shall be liable for any breach of this Agreement by its Representatives. 
  
 Except for the access permitted to Representatives by the immediately preceding paragraph, no Confidential Information may be disclosed to third parties, including but not limited to potential partners or potential
investors, without prior written approval for such disclosure from BRP on a case by case basis. 
  
 If either [BRP / Investor] or the Company decides that it is not interested in proceeding with the Proposed Transaction with the other party, then, the Confidential Information, together with all copies or other
reproductions in whole or in part thereof, will be returned to [BRP or Investor, as the case may be] promptly upon written, request or will be destroyed and written confirmation of said destruction will be delivered to [BRP or Investor, as the case
may be]. That portion of that Confidential Information, which consists of analyses, compilations, studies, or other documents prepared by the Company or its Representatives, shall either be destroyed or held by the Company and kept confidential
pursuant to the terms of this Agreement. Additionally, any oral Confidential Information will continue to be subject to the terms of this Agreement. 
  
 Each of BRP and [Investor] acknowledges that it may be necessary to make disclosures required by statute, regulation, securities commissions, or other regulatory
authorities or bodies. In the event that the Company, or anyone to whom the Company transmits the Confidential Information pursuant to this Agreement, should become legally required or compelled to disclose any of the Confidential Information, the
Company will promptly notify BRP so that BRP may, if the circumstances permit, seek, at its sole expense, a protective order or other appropriate 

  

 -64- 

 
remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy either is not obtained or that
compliance with the provisions of this Agreement is waived, only that portion of the Confidential Information which is legally required to be disclosed will be disclosed and the Company will exercise its reasonable efforts to obtain a protective
order or other reliable assurance that confidential treatment will be accorded to the Confidential Information disclosed. 
  
 Except for any such communication that may occur in the ordinary course of business, not including any business as it relates to the Proposed Transaction, the Company
agrees that, unless otherwise agreed to in writing by BRP, all communication with, inquiries of and/or requests for additional information from BRP or management; facility tours; or management meetings are to be coordinated through
                     on behalf of BRP. Without the prior written consent of BRP or the Advisors, neither the Company nor any of its
Representatives who are aware of the Confidential Information and/or the Proposed Transaction will initiate or cause to be initiated or maintain any communication with any officer, director, agent or employee of BRP concerning the Proposed
Transaction except such officers or employees of BRP as may from time to time be identified to the Company by BRP or the Advisors. 
  
 The Company agrees that, except as provided below, it will not, within 2 years of the date of this Agreement, without obtaining the written consent of BRP, make any
direct or indirect approach, normal vacancy and general advertising excepted, to the senior management or key employees of BRP [or the Division] with whom the Company has had contact or who became known to the Company in connection with its
consideration of the Proposed Transaction with a view to offering employment or other incentives. The parties agree that the foregoing shall not apply to employees of BRP [or the Division] if a purchase and sale agreement (or similar agreement) is
executed between the Company and BRP with respect to the Proposed Transaction. 
  
 The Company acknowledges that BRP may choose not to disclose information that is, in its sole discretion, deemed to be of a sensitive nature, unless and until an agreement is signed in connection with the Proposed Transaction. 

 
 BRP and the Investor (including the Advisors) make no representation or warranty as to the
accuracy or completeness of the Confidential Information, although they have endeavoured to include information that they believes is relevant for the purpose of the Company’s evaluation. The Company agrees that BRP, the Investor and their
affiliates and Advisors and their respective shareholders, directors, officers, employees and agents shall have no liability to the Company or any of the Company’s affiliates or Representatives resulting from the use of the Confidential
Information by the Company. Only those representations and warranties that may be made to the Company in a definitive agreement for the Proposed Transaction, when, as, and if executed and subject to such limitations and restrictions as may be
specified therein, shall have any legal effect, and the Company agrees that if the Company determines to enter into the Proposed Transaction, such determination will be based solely on the terms of such written agreement and on the Company’s
own investigation, analysis, and assessment of the Proposed Transaction. 
  
 The
Company agrees that it will be responsible for its own due diligence investigations and will be responsible for any and all costs, monetary or otherwise, incurred by the Company or its Representatives in connection with its due diligence
investigations or other review of the 

  

 -65- 

 
Proposed Transaction, and that BRP, the Investor and their Advisors assume no responsibility for reimbursement or payment of any such costs. 
  
 It is further understood and agreed that money damages may not be a sufficient remedy for any
breach of this Agreement and that BRP and the Investor may be entitled to seek specific performance and injunctive or other equitable relief for any breach by the Company without proof of actual damages, in addition to and not in substitution for
any other remedy BRP or the Investor may have. 
  
 Nothing in this Agreement shall
impose any obligation on BRP, the Investor or the Company to enter into any agreements with respect to the Proposed Transaction. The Company understands that BRP, the Investor (or the Advisors) will from time to time set out rules and procedures
governing the process leading to the Proposed Transaction and that BRP and the Investor reserve the right, at any time, to change the process and/or terminate discussions with the Company or any or all prospective purchasers, to reject any or all
proposals, to negotiate with one or more other prospective purchasers and to enter into a definitive written agreement for the sale of [the Division] [/or/] [BRP] without prior notice to the Company or any other prospective purchaser.

  
 The Company agrees that, while in possession of material non-public
information, it will abide by all securities laws governing the trading of securities of BRP. 
  
 This Agreement embodies the entire understanding between [BRP, the Investor] and the Company with respect to the Confidential Information and supersedes any prior agreements relating thereto. This Agreement may only
be modified in writing by [BRP, the Investor] and the Company. 
  
 This Agreement
may be executed in counterparts each of which shall be deemed to be an original and all of which shall constitute one and the same document. Each party shall be entitled to rely on delivery of a facsimile copy of this Agreement which shall create a
legal, valid and binding Agreement between the Company, BRP and the Investor in accordance with the terms hereof. 
  
 The parties hereto have expressly requested that this Agreement, all documents incorporated by reference, any notices or other documents to be given under such Agreement,
and other documents related thereto be drawn up in the English language. Les parties aux présentes ont expressément exigées que la présente convention et tous les documents qui y sont incorporés par
renvoi, ainsi que tout avis donné en vertu de ladite convention ou tout autre document qui s‘y rapporte, soient rédigés en anglais. 
  
 The obligations contained in this Agreement and the provisions hereof shall survive the termination of any discussions or negotiations
relating to the Proposed Transaction between the parties and the return to BRP or the Investor or destruction of the written Confidential Information. Notwithstanding the foregoing, this Agreement and all of the obligations hereunder shall terminate
in their entirety 2 years from the date of this Agreement. 
  
 To the extent, if
any, that they are not parties to this Agreement, each of J.A. Bombardier (J.A.B.) Inc., Bombardier Recreational Products Inc. and each “Investor” (as such term is defined in the Unanimous Shareholder Agreement dated as of December 18,
2003 among J.A. Bombardier (J.A.B.) Inc. and its shareholders) is a third party beneficiary of this agreement and will be entitled to enforce this agreement. 
  

 -66- 

 This Agreement shall be governed and construed in accordance with laws of the Province of Quebec and the laws of Canada
applicable therein. 
  
 If the Company agrees with the terms of this Agreement,
please return a signed copy to BRP and the Investor. 
  

			
	 Yours sincerely,

	
	 l

		
	 By:
	 	 
	
	 Acknowledged and agreed as of
                    , 200  .

	
	J.A. Bombardier (J.A.B.) Inc.,
		
	By:	 	 
	
	Bombardier Recreational Products Inc.
		
	By:	 	 
	
	[Investor]
		
	By:	 	 

  

 -67-

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