Document:

EX-4.1

 Exhibit 4.1 
  

 
 THE BANK OF NOVA SCOTIA,

 Issuer 
 and 

COMPUTERSHARE TRUST COMPANY, N.A., 

U.S. Trustee 
 and 

COMPUTERSHARE TRUST COMPANY OF CANADA, 

Canadian Trustee 
  

 
 Second Supplemental Indenture

 Dated as of June 4, 2020 

to 
 Indenture

 Dated as of October 12, 2017 

Subordinated Debt Securities 

(Non-Viability Contingent Capital (NVCC)) 

(subordinated indebtedness) 
  

 
 4.900% Fixed Rate Resetting
Perpetual 
 Subordinated Additional Tier 1 Capital Notes 

(Non-Viability Contingent Capital (NVCC)) 

(subordinated indebtedness) 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	 ARTICLE ONE DEFINITIONS
	  	 	4	 
		
	 SECTION 101. RELATION TO BASE
INDENTURE
	  	 	4	 
	 SECTION 102. DEFINITION OF TERMS
	  	 	4	 
		
	 ARTICLE TWO THE NOTES
	  	 	9	 
		
	 SECTION 201. DESIGNATION AND PRINCIPAL
AMOUNT
	  	 	9	 
	 SECTION 202. NO SCHEDULED MATURITY
	  	 	9	 
	 SECTION 203. FORM, PAYMENT AND
APPOINTMENT
	  	 	9	 
	 SECTION 204. GLOBAL NOTES
	  	 	10	 
	 SECTION 205. INTEREST
	  	 	10	 
	 SECTION 206. CANCELLATION OF INTEREST
PAYMENTS
	  	 	12	 
	 SECTION 207. ADDITIONAL AMOUNTS
	  	 	12	 
	 SECTION 208. AMENDMENTS
	  	 	14	 
		
	 ARTICLE THREE FORM OF NOTES
	  	 	14	 
		
	 SECTION 301. FORM OF NOTES
	  	 	14	 
		
	 ARTICLE FOUR ISSUE OF NOTES
	  	 	14	 
		
	 SECTION 401. ORIGINAL ISSUE OF
NOTES
	  	 	14	 
	 SECTION 402. ADDITIONAL ISSUES OF
NOTES
	  	 	14	 
		
	 ARTICLE FIVE REMEDIES
	  	 	15	 
		
	 SECTION 501. EVENTS OF DEFAULT
	  	 	15	 
		
	 ARTICLE SIX CERTAIN COVENANTS APPLICABLE TO THE NOTES
	  	 	15	 
		
	 SECTION 601. RESTRICTIONS ON THE
PAYMENT OF DIVIDENDS AND RETIREMENT OF SHARES
	  	 	15	 
		
	 ARTICLE SEVEN SUBORDINATION OF NOTES
	  	 	15	 
		
	 SECTION 701. APPLICABILITY OF ARTICLE
TWELVE OF THE BASE INDENTURE
	  	 	15	 
	 SECTION 702. NOTES SUBORDINATE TO
DEPOSIT LIABILITIES AND OTHER INDEBTEDNESS
	  	 	15	 
	 SECTION 703. FURTHER ASSURANCES OF
SUBORDINATION
	  	 	16	 
	 SECTION 704. RELIANCE ON JUDICIAL
ORDER OR CERTIFICATE OF LIQUIDATING AGENT
	  	 	16	 
	 SECTION 705. TRUSTEES’ COMPENSATION NOT
PREJUDICED
	  	 	16	 
	 SECTION 706. TRUSTEES ENTITLED TO
ASSUME PAYMENTS NOT PROHIBITED IN ABSENCE OF NOTICE
	  	 	16	 
	 SECTION 707. NO FIDUCIARY DUTY OF
TRUSTEES TO HOLDERS OF HIGHER RANKED INDEBTEDNESS OF THE BANK
	  	 	16	 
		
	 ARTICLE EIGHT CONVERSION INTO COMMON SHARES UPON A TRIGGER EVENT
	  	 	17	 
		
	 SECTION 801. APPLICABILITY OF ARTICLE
THIRTEEN OF THE BASE INDENTURE
	  	 	17	 
	 SECTION 802. NVCC AUTOMATIC CONVERSION
	  	 	17	 
	 SECTION 803. CONVERSION RATE
	  	 	17	 
	 SECTION 804. TIME OF NVCC AUTOMATIC
CONVERSION
	  	 	17	 
	 SECTION 805. RIGHT NOT TO DELIVER
COMMON SHARES
	  	 	17	 
	 SECTION 806. FRACTIONAL SHARES
	  	 	18	 
	 SECTION 807. RECAPITALIZATIONS, RECLASSIFICATIONS AND
CHANGES IN THE COMMON SHARES
	  	 	18	 
	 SECTION 808. ADJUSTMENTS
	  	 	18	 
	 SECTION 809. AGREEMENT WITH RESPECT TO
A TRIGGER EVENT
	  	 	19	 
	 SECTION 810. GENERAL
	  	 	20	 
		
	 ARTICLE NINE REDEMPTION OF NOTES
	  	 	20	 

					
		
	 SECTION 901. APPLICABILITY OF ARTICLE
ELEVEN OF THE BASE INDENTURE
	  	 	20	 
	 SECTION 902. OPTIONAL REDEMPTION
	  	 	20	 
	 SECTION 903. REGULATORY REDEMPTION
	  	 	20	 
	 SECTION 904. TAX REDEMPTION
	  	 	20	 
	 SECTION 905. MANDATORY REDEMPTION; OPEN
MARKET PURCHASES
	  	 	20	 
		
	 ARTICLE TEN MISCELLANEOUS PROVISION
	  	 	21	 
		
	 SECTION 1001. RATIFICATION OF BASE
INDENTURE
	  	 	21	 
	 SECTION 1002. TRUSTEE NOT RESPONSIBLE
FOR RECITALS
	  	 	21	 
	 SECTION 1003. GOVERNING LAW
	  	 	21	 
	 SECTION 1004. SEPARABILITY CLAUSE
	  	 	21	 
	 SECTION 1005. BENEFITS OF SECOND
SUPPLEMENTAL INDENTURE
	  	 	21	 
	 SECTION 1006. CONFLICT WITH BASE
INDENTURE
	  	 	21	 
	 SECTION 1007. PROVISIONS OF TRUST
INDENTURE LEGISLATION CONTROLLING
	  	 	21	 
	 SECTION 1008. EXECUTION IN COUNTERPARTS
	  	 	21	 
	 SECTION 1009. INDENTURE AND NOTES
SOLELY CORPORATE OBLIGATIONS
	  	 	21	 
	 SECTION 1010. WAIVER OF JURY
TRIAL
	  	 	22	 

 SECOND SUPPLEMENTAL INDENTURE, dated as of June 4, 2020, among The Bank of Nova Scotia,
a Canadian chartered bank (herein called the “Bank”), having its principal executive offices located at 44 King Street West, Scotia Plaza, Toronto, Ontario, Canada M5H 1H1, Computershare Trust Company, N.A., a trust company
organized under the laws of the United States, as United States trustee (the “U.S. Trustee”) and Computershare Trust Company of Canada, a trust company duly organized and existing under the laws of Canada, as Canadian trustee (the
“Canadian Trustee” and, together with the U.S. Trustee, the “Trustee” or “Trustees”). 

RECITALS OF THE BANK 
 WHEREAS,
the Bank and the Trustees have heretofore executed and delivered an Indenture, dated as of October 12, 2017 (the “Base Indenture” and, as hereby supplemented and amended, the “Indenture”) providing for the
issuance from time to time of series of the Bank’s unsecured subordinated debt securities (Non-Viability Contingent Capital (NVCC)) (subordinated indebtedness) (hereinafter called the
“Securities”); 
 WHEREAS, Section 901(6) of the Base Indenture provided that the Bank and the Trustees may enter into
an indenture supplemental to the Base Indenture to establish the form or terms of Securities of any series as permitted by the Base Indenture; 

WHEREAS, pursuant to Section 301 of the Base Indenture, the Bank wishes to provide for the issuance of US$1,250,000,000 aggregate
principal amount of a new series of Securities to be known as its 4.900% Fixed Rate Resetting Perpetual Subordinated Additional Tier 1 Capital Notes (Non-Viability Contingent Capital (NVCC)) (subordinated
indebtedness) (the “Notes”), the form and terms of such Notes and the terms, provisions and conditions thereof to be set forth as provided in this Second Supplemental Indenture; and 

WHEREAS, the Bank has requested that the Trustees execute and deliver this Second Supplemental Indenture; and all requirements necessary to
make this Second Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms, and to make the Notes, when executed by the Bank and authenticated and delivered by the U.S. Trustee, the valid, binding and
enforceable obligations of the Bank, have been satisfied; and the execution and delivery of this Second Supplemental Indenture has been duly authorized in all respects. 

NOW, THEREFORE, WITNESSETH: 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of the Holders of Notes, as follows: 
 ARTICLE ONE 

DEFINITIONS 

SECTION 101. Relation to Base Indenture. This Second Supplemental Indenture constitutes an integral part of the Indenture. 

SECTION 102. Definition of Terms. For all purposes of this Second Supplemental Indenture: 

 

	 	(a)	 Capitalized terms used herein without definition shall have the meanings set forth in the Base Indenture;

  
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	 	(b)	 a term defined anywhere in this Second Supplemental Indenture has the same meaning throughout;

  

	 	(c)	 unless otherwise specified or unless the context requires otherwise, (i) all references in this Second
Supplemental Indenture to Sections refer to the corresponding Sections of this Second Supplemental Indenture and (ii) the terms “herein”, “hereof”, “hereunder” and any other word of similar import refer to this
Second Supplemental Indenture; and 

  

	 	(d)	 the following terms have the meanings given to them in this Section 102(d): 

“Accrued Interest” means any accrued and unpaid interest on the Notes, excluding any interest which has been cancelled
pursuant to Section 206(a). 
 “Additional Amounts” has the meaning specified in Section 207. 

“Bank Affiliate” means an affiliate of the Bank within the meaning of the Bank Act. 

“Bank’s Auditors” means an independent firm or firms of accountants duly appointed as auditors of the Bank. 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions are
authorized or required by law or executive order to close in The City of New York, New York or Toronto, Ontario. 

“Calculation Agent” means Computershare Trust Company, N.A., as calculation agent pursuant to that certain
Calculation Agency Agreement, dated as of June 4, 2020, or any successor calculation agent appointed pursuant thereto. 

“Canadian taxes” has the meaning specified in Section 207. 

“Common Share Reorganization” means any of (i) the issuance of Common Shares or securities exchangeable for or
convertible into Common Shares to all holders of Common Shares as a stock dividend, (ii) the subdivision, re-division or change of the Common Shares into a greater number of Common Shares, or
(iii) the reduction, combination or consolidation of the Common Shares into a lesser number of Common Shares. 
 “Conversion
Price” means, in respect of each Note, the greater of (i) the Floor Price, and (ii) the Current Market Price. 

“Current Market Price” means the volume weighted average trading price of the Common Shares on the TSX or, if not then listed
on the TSX, on another exchange or market chosen by the board of directors of the Bank on which the Common Shares are then traded, for the 10 consecutive trading days ending on the trading day immediately prior to the date on which the Trigger Event
occurs (with the conversion occurring as of the start of business on the date on which the Trigger Event occurs), converted (if not denominated in U.S. dollars) into U.S. dollars at the Prevailing Rate on the day immediately prior to the date on
which the Trigger Event occurs. If no such trading prices are available, “Current Market Price” shall be the Floor Price. 

“Deeply Subordinated Indebtedness” means Indebtedness which by its terms ranks equally in right of payment with, or is
subordinate to, the Notes. 

  
 5 

 “DTC” has the meaning specified in Section 203. 

“Excluded Holder” has the meaning specified in Section 207(a). 

“Floor Price” means the U.S. dollar equivalent of CAD $5.00 converted into U.S. dollars at the Prevailing Rate on the day
immediately prior to the date on which the Trigger Event occurs, subject to adjustment in the event of a Common Share Reorganization in accordance with Section 808(a). 

“Global Note” has the meaning specified in Section 204. 

“Higher Ranked Indebtedness” has the meaning specified in Section 702. 

“Independent Financial Adviser” means an independent financial institution of international repute appointed by the Bank at
its own expense. 
 “Ineligible Person” means (i) any person whose address is in, or whom the Bank or the Trustee has
reason to believe is a resident of, any jurisdiction outside Canada or the United States of America to the extent that the issuance by the Bank of Common Shares or delivery of such shares by its transfer agent to that person, pursuant to an NVCC
Automatic Conversion, would require the Bank to take any action to comply with securities, banking or analogous laws of that jurisdiction, and (ii) any person to the extent that the issuance by the Bank of Common Shares or delivery of such
shares by its transfer agent to that person, pursuant to an NVCC Automatic Conversion, would, at the time of the Trigger Event, cause the Bank to be in violation of any law to which the Bank is subject. 

“Interest Payment Date” has the meaning specified in Section 205(a). 

“Multiplier” means 1.25. 

“Nonpayment Interest” has the meaning specified in Section 206(c). 

“Note Value” means, in respect of each Note, US$1,000 plus accrued and unpaid interest on such Note up to, but excluding, the
date of the Trigger Event (except to the extent such unpaid interest was cancelled). 
 “Prevailing Rate” means, in respect
of any currencies on any day, the spot rate of exchange between the relevant currencies prevailing as at or about 12:00 noon (New York time) on that date as appearing on or derived from the Relevant Page or, if such a rate cannot be determined at
such time, the rate prevailing as at or about 12:00 noon (New York time) on the immediately preceding day on which such rate can be so determined or, if such rate cannot be so determined by reference to the Relevant Page, the rate determined in such
other manner as an Independent Financial Adviser (as defined herein) shall consider in good faith appropriate. 
 “Regulatory Event
Date” means the date specified in a letter from the Superintendent to the Bank on which the Notes will no longer be recognized in full as eligible “Tier 1 Capital” or will no longer be eligible to be included in full as risk-based
“Total Capital” on a consolidated basis under the guidelines for capital adequacy requirements for banks in Canada as interpreted by the Superintendent. 

“Relevant Page” means the relevant page on Bloomberg or such other information service provider that displays the relevant
information. 
 “Reset Interest Rate” has the meaning specified in Section 205(b)(2)(i). 

  
 6 

 “Reset Date” means June 4, 2025 and each fifth (5th) anniversary date thereafter. 
 “Reset Rate Determination Date” means
the second Business Day immediately preceding each Reset Date. 
 “Reset Rate Period” means each period from and including
any Reset Date to, but excluding, the next following Reset Date. 
 “Reset Spread” means 4.551%. 

“Significant Shareholder” means any person who beneficially owns directly, or indirectly through entities controlled by such
person or persons associated with or acting jointly or in concert with such person, a percentage of the total number of outstanding shares of a class of the Bank that is in excess of that permitted by the Bank Act. 

“Subsidiary” has the meaning attributed to it in the Bank Act. 

“Tax Event” means the Bank (a) has received an opinion of independent counsel of recognized standing experienced in such
matters to the effect that, as a result of, (i) any amendment to, clarification of, or change (including any announced prospective change) in, the laws, or any regulations thereunder, or any application or interpretation thereof, of Canada, or
any political subdivision or taxing authority thereof or therein, affecting taxation; (ii) any judicial decision, administrative pronouncement, published or private ruling, regulatory procedure, rule, notice, announcement, assessment or
reassessment (including any notice or announcement of intent to adopt or issue such decision, pronouncement, ruling, procedure, rule, notice, announcement, assessment or reassessment) (collectively, an “administrative action”); or
(iii) any amendment to, clarification of, or change in, the official position with respect to or the interpretation of any administrative action or any interpretation or pronouncement that provides for a position with respect to such
administrative action that differs from the theretofore generally accepted position, in each case (i), (ii) or (iii), by any legislative body, court, governmental authority or agency, regulatory body or taxing authority, irrespective of the manner
in which such amendment, clarification, change, administrative action, interpretation or pronouncement is made known, which amendment, clarification, change or administrative action is effective or which interpretation, pronouncement or
administrative action is announced on or after the date hereof, there is more than an insubstantial risk (assuming any proposed or announced amendment, clarification, change, interpretation, pronouncement or administrative action is effective and
applicable) that the Bank is, or may be, subject to more than a de minimis amount of additional taxes, duties or other governmental charges or civil liabilities because the treatment of any of its items of income, taxable income, expense, taxable
capital or taxable paid up capital with respect to the Notes or the treatment of the Notes, as or as would be reflected in any tax return or form filed, to be filed, or otherwise could have been filed, will not be respected by a taxing authority;
provided that this clause (a) shall not apply in respect of the deductibility of interest in the Notes or (b) (i) as a result of any change (including any announced prospective change) in or amendment to the laws (or any regulations or
rulings promulgated thereunder) of Canada (or the jurisdiction of organization of the successor to the Bank) or of any political subdivision or taxing authority thereof or therein affecting taxation, or any change in official position regarding the
application or interpretation of such laws, regulations or rulings (including a holding by a court of competent jurisdiction), which change or amendment is announced or becomes effective on or after May 28, 2020 (or, in the case of a successor
to the Bank, after the date of succession), and which in the written opinion to the Bank (or its successor) of legal counsel of recognized standing has resulted or will result (assuming, in the case of any announced prospective change, that such
announced change will become effective as of the date specified in such announcement and in the form announced) in the Bank (or its successor) becoming obligated to pay, on the next succeeding date on which interest is due, Additional Amounts with
respect to the Notes or (ii) on 

  
 7 

 
or after May 28, 2020 (or, in the case of a successor to the Bank, after the date of succession), any action has been taken by any taxing authority of, or any decision has been rendered by a
court of competent jurisdiction in, Canada (or the jurisdiction of organization of the successor to the Bank) or any political subdivision or taxing authority thereof or therein, including any of those actions specified in the preceding clause
(b)(i), whether or not such action was taken or decision was rendered with respect to the Bank (or its successor), or any change, amendment, application or interpretation shall be officially proposed, which, in any such case, in the written opinion
to the Bank (or its successor) of legal counsel of recognized standing, will result (assuming that such change, amendment, application, interpretation or action is applied to the Notes by the taxing authority and that, in the case of any announced
prospective change, such announced change will become effective as of the date specified in such announcement and in the form announced) in the Bank (or its successor) becoming obligated to pay, on the next succeeding date on which interest is due,
Additional Amounts with respect to the Notes; and, in any such case of clause (b)(i) or (ii), the Bank (or its successor), in its business judgment, determines that such obligation cannot be avoided by the use of reasonable measures available to it
(or its successor). 
 “Threshold Number” means the number of Common Shares issuable or deliverable to any Person that
would cause that Person to become a Significant Shareholder, being the sum of (i) the total number of Common Shares held by that Person immediately prior to the NVCC Automatic Conversion and (ii) the total number of Common Shares otherwise
issuable or deliverable to that Person by virtue of the operation of the NVCC Automatic Conversion, less (iii) the greatest number of Common Shares that such Person could hold, directly or indirectly, without being a Significant Shareholder.

 “Trigger Event” has the meaning set out in the OSFI, Guideline for Capital Adequacy Requirements (CAR), Chapter 2 –
Definition of Capital, dated November 2018, as such term may be amended or superseded by OSFI from time to time, which term currently provides that each of the following constitutes a Trigger Event: 

 

	 	(1)	 the Superintendent publicly announces that the Bank has been advised, in writing, that the Superintendent is of
the opinion that the Bank has ceased, or is about to cease, to be viable and that, after the conversion of the Notes and all other contingent instruments issued by the Bank and taking into account any other factors or circumstances that are
considered relevant or appropriate, it is reasonably likely that the viability of the Bank will be restored or maintained; or 

  

	 	(2)	 a federal or provincial government in Canada publicly announces that the Bank has accepted or agreed to accept
a capital injection, or equivalent support, from the federal government or any provincial government or political subdivision or agent or agency thereof without which the Bank would have been determined by the Superintendent to be non-viable. 

 “TSX” means the Toronto Stock Exchange. 

“U.S. Treasury Rate” has the meaning specified in Section 205(b)(2)(ii). 

ARTICLE TWO 
 THE NOTES

 SECTION 201. Designation and Principal Amount. The Notes may be issued from time to time upon a Bank Order for the
authentication and delivery of Notes pursuant to Section 303 of the Base Indenture. There is hereby authorized a series of Securities designated as the Bank’s 4.900% Fixed Rate Resetting Perpetual Subordinated Additional Tier 1 Capital
Notes (Non-Viability Contingent Capital 

  
 8 

 
(NVCC)) (subordinated indebtedness) having an initial aggregate principal amount of US$1,250,000,000 (except for Notes authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Notes pursuant to Sections 304, 305, 306, 906 or 1107 of the Base Indenture and except for Notes which, pursuant to Section 303 of the Base Indenture are deemed to never have been authenticated and delivered under the
Base Indenture). 
 SECTION 202. No Scheduled Maturity. The Notes shall have no Stated Maturity in respect of principal.

 SECTION 203. Form, Payment and Appointment. Except as provided in Section 305 of the Base Indenture, the Notes
shall be issued only in book-entry form and shall be represented by one or more Global Notes (as defined below) registered in the name of or held by The Depository Trust Company (and any successor thereto) (“DTC”) or its nominee.
Principal or the Redemption Price, if any, of a Note shall be payable to the Person in whose name that Note is registered on the Redemption Date, provided that principal of, the Redemption Price, if any, and interest on the Notes represented by one
or more Global Notes registered in the name of or held by DTC or its nominee shall be payable in immediately available funds to DTC or its nominee, as the case may be, as the registered holder of such Global Notes. The principal of any certificated
Notes shall be payable at the Place of Payment set forth below; provided, however, that payment of interest may be made at the option of the Bank by check mailed to the Person entitled thereto at such address as shall appear in the
Security Register or by wire transfer to an account appropriately designated by the Person entitled to payment. 
 The Notes shall have such
other terms as are set forth in the form thereof attached hereto as Exhibit A. 
 The Security Registrar, Authenticating Agent,
Paying Agent and Calculation Agent for the Notes shall initially be the U.S. Trustee. 
 The Place of Payment for the Notes shall initially
be the Corporate Trust Office of the U.S. Trustee. 
 The Notes shall be issuable and may be transferred only in minimum denominations of
US$1,000 or any amount in excess thereof that is an integral multiple of US$1,000. The amounts payable with respect to the Notes shall be payable in U.S. dollars. 

SECTION 204. Global Notes. The Notes shall be issued initially in the form of one or more fully registered global notes
(each such global note, a “Global Note”) deposited with DTC or its designated custodian or such other Depositary as any officer of the Bank may from time to time designate. Unless and until a Global Note is exchanged for Notes in
certificated form, such Global Note may be transferred, in whole but not in part, and any payments on the Notes shall be made, only to DTC or a nominee of DTC, or to a successor Depositary selected or approved by the Bank or to a nominee of such
successor Depositary. 
 SECTION 205. Interest.  

(a) Initial Rate Period. During the Initial Rate Period, the Notes shall bear interest at the annual rate of 4.900%, computed on the
basis of a 360-day year consisting of twelve 30-day months. Subject to Section 206(a) hereof, interest, if any, on the Notes shall be payable quarterly in arrears
on March 4, June 4, September 4 and December 4 of each year (each such date, an “Interest Payment Date”) during the Initial Rate Period, commencing on September 4, 2020, or if any such day is not a Business
Day, the next Business Day (but no interest shall accrue as a result of that postponement), to the 

  
 9 

 
Holders of the Notes at the close of business on the immediately preceding February 17, May 20, August 20 and November 19 (whether or not a Business Day), as the case may be.
Interest on the Notes shall accrue during the Initial Rate Period from and including June 4, 2020 to, but excluding, the first Interest Payment Date and then from and including each Interest Payment Date to which interest has been paid or duly
provided for (whether or not such interest is paid or cancelled pursuant to Section 206(a) hereof) to, but excluding, the next Interest Payment Date, any Redemption Date or June 4, 2025, as the case may be. 

(b) Reset Rate Period. 

(1) During each of the Reset Rate Periods, the Notes shall bear interest at a per annum rate equal to the sum, as determined by
the Calculation Agent, of (i) the then-prevailing U.S. Treasury Rate on the relevant Reset Rate Determination Date and (ii) the Reset Spread, computed on the basis of a 360-day year consisting of
twelve 30-day months. Subject to Section 206(a) hereof, interest, if any, on the Notes shall be payable quarterly in arrears on each Interest Payment Date during any Reset Rate Period, commencing on
September 4, 2025, or if any such day is not a Business Day, the next Business Day (but no interest shall accrue as a result of that postponement), to the Holders of the Notes at the close of business on the immediately preceding
February 17, May 20, August 20, and November 19 (whether or not a Business Day), as the case may be. Interest on the Notes shall accrue during the first Reset Rate Period from and including June 4, 2025 to, but excluding,
the next Interest Payment Date and then, during each subsequent Reset Rate Period, from and including each Interest Payment Date to which interest has been paid or duly provided for (whether or not such interest is paid or cancelled pursuant to
Section 206(a) hereof) to, but excluding, the next Interest Payment Date or any Redemption Date, as the case may be. 

(2) The Reset Interest Rate shall be determined by the Calculation Agent as of the applicable Reset Rate Determination Date in
accordance with the following provisions: 
  

	 	(i)	 The “Reset Interest Rate” on any Reset Rate Determination Date shall be equal to the sum, as
determined by the Calculation Agent, of (i) the then-prevailing U.S. Treasury Rate on the relevant Reset Rate Determination Date and (ii) the Reset Spread. 

 

	 	(ii)	 The “U.S. Treasury Rate”, with respect to any Reset Date for which such rate applies, shall be
the rate per annum equal to: the average of the yields on actively traded U.S. treasury securities adjusted to constant maturity, for five-year maturities, for the five business days appearing under the caption “Treasury Constant
Maturities” in the most recently published statistical release designated H.15 Daily Update or any successor publication which is published by the Federal Reserve Board, as determined by the Calculation Agent in its sole discretion.

  

	 	(iii)	 If no calculation is provided as described in subparagraph (ii) above, then the Calculation Agent, after
consulting such sources as it deems comparable to any of the foregoing calculations, or any such source as it deems reasonable from which to estimate the five-year treasury rate, shall determine the U.S. Treasury Rate in its sole discretion,
provided that if the Calculation Agent determines there is an industry-accepted successor five-year treasury rate, then the Calculation Agent shall use such successor rate. If the Calculation Agent has determined a substitute or successor base rate
in accordance with the foregoing, the Calculation Agent in its sole discretion may determine the business day 

  
 10 

	 	
convention, the definition of business day and the Reset Rate Determination Date to be used and any other relevant methodology for calculating such substitute or successor base rate, including
any adjustment factor needed to make such substitute or successor base rate comparable to the five-year treasury rate, in a manner that is consistent with industry accepted practices for such substitute or successor base rate. 

 

	 	(iv)	 Promptly upon determination, the Calculation Agent shall inform the Trustees and the Bank of the interest rate
for the next interest period. Absent manifest error, the determination of the interest rate by the Calculation Agent shall be binding and conclusive on the Holders of the Notes, the Trustees and the Bank. 

(3) Upon request from any Holder of Notes, the Calculation Agent shall provide the interest rate in effect for the Notes for
the current Reset Rate Period and, if it has been determined, the interest rate to be in effect for the next Reset Rate Period. 

(4) All percentages resulting from any calculation of the interest rate on the Notes during any Reset Rate Period shall be
rounded to the nearest one hundred-thousandth of a percentage point with five one millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all dollar amounts used in or
resulting from such calculation on the Notes shall be rounded to the nearest cent (with one half cent being rounded upward). 

(5) The interest rate on the Notes shall in no event be higher than the maximum rate permitted by New York law as the same may
be modified by United States law of general application. In no event shall the interest rate on the Notes be less than zero. 
 (c) For
disclosure purposes under the Interest Act (Canada), whenever in the Notes or the Indenture interest at a specified rate is to be calculated on the basis of a period less than a calendar year, the yearly rate of interest to which such rate is
equivalent is such rate multiplied by the actual number of days in the relevant calendar year and divided by the number of days in such period. 

SECTION 206. Cancellation of Interest Payments. 

(a) Notwithstanding any provision in the Base Indenture or this Second Supplemental Indenture, (i) interest on the Notes shall be due and
payable on an Interest Payment Date only if it is not cancelled by the Bank, and (ii) the Bank shall have the sole and absolute discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would otherwise
be payable on any Interest Payment Date and any interest cancelled pursuant to this Section 206(a) shall not accumulate or be due and payable at any time thereafter and the Holders and beneficial owners of the Notes shall have no rights thereto
or to receive any additional interest or compensation as a result of such cancellation of interest in respect of the Notes. 
 (b) Upon any
election by the Bank to cancel (in whole or in part) any interest payment pursuant to Section 206(a), the Bank shall give notice to the Holders of the Notes through DTC (or, if the Notes are held in definitive form, to the Holders directly at
their addresses shown in the Security Register) and to the Trustees on or prior to the relevant Interest Payment Date, specifying the amount of the relevant interest cancellation and, accordingly, the amount (if any) of the interest that will be
paid on such Interest Payment Date. Failure to provide such notice shall not have any impact on the effectiveness of, or otherwise invalidate, any such cancellation of interest, or give the Holders and beneficial owners of the Notes any rights as a
result of such failure. 

  
 11 

 (c) Any interest on the Notes which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date and which has not been cancelled pursuant to Section 206(a) (such interest herein called “Nonpayment Interest”) shall be paid by the Bank on the next succeeding Interest Payment Date to the
Holders of the Notes on the Regular Record Date immediately preceding such Interest Payment Date; provided that no additional interest or compensation shall accrue on the Nonpayment Interest or be payable as a result of such delay in payment.

 SECTION 207. Additional Amounts. (a) Subject to Section 206(a) hereof, all payments made by or on behalf of the
Bank under or with respect to the Notes shall be made free and clear of and without withholding or deduction for or on account of any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest
and other liabilities related thereto) imposed or levied by or on behalf of the Government of Canada or any province or territory thereof or by any authority or agency therein or thereof having power to tax (hereafter “Canadian
taxes”), unless the Bank is required to withhold or deduct Canadian taxes by law or by the interpretation or administration thereof. If the Bank is so required to withhold or deduct any amount for or on account of Canadian taxes from any
payment made under or with respect to the Notes, the Bank shall pay to each Holder of Notes as additional interest such additional amounts (“Additional Amounts”) as may be necessary so that the net amount received by each such
Holder after such withholding or deduction (and after deducting any Canadian taxes on such Additional Amounts) shall not be less than the amount such Holder would have received if such Canadian taxes had not been withheld or deducted, except as
described below. However, no Additional Amounts shall be payable with respect to a payment made to a Holder (such Holder, an “Excluded Holder”) in respect of the beneficial owner thereof: 

 

	 	(1)	 with which the Bank does not deal at arm’s length (for the purposes of the Income Tax Act (Canada))
at the time of the making of such payment; 

  

	 	(2)	 which is subject to such Canadian taxes by reason of the Holder being a resident, domiciliary or national of,
engaged in business or maintaining a permanent establishment or other physical presence in or otherwise having some connection with Canada or any province or territory thereof otherwise than by the mere holding of the Notes or the receipt of
payments thereunder; 

  

	 	(3)	 which is subject to such Canadian taxes by reason of the Holder’s failure to comply with any
certification, identification, documentation or other reporting requirements if compliance is required by law, regulation, administrative practice or an applicable treaty as a precondition to exemption from, or a reduction in the rate of deduction
or withholding of, such Canadian taxes (provided that the Bank advises the Trustees and the Holders of the Notes then outstanding of any change in such requirements); 

 

	 	(4)	 with respect to any estate, inheritance, gift, sale, transfer, personal property or similar tax or other
governmental charge; or 

  

	 	(5)	 which is a fiduciary or partnership or person other than the sole beneficial owner of such payment to the
extent that the Canadian taxes would not have been imposed on such payment had such Holder been the sole beneficial owner of such Notes. 

(b) The Bank shall also: 
  

	 	(1)	 make such withholding or deduction; and 

  
 12 

	 	(2)	 remit the full amount deducted or withheld to the relevant authority in accordance with applicable law.

 (c) The Bank shall furnish to the Holders of the Notes, within 60 days after the date the payment of any Canadian taxes
is due pursuant to applicable law, certified copies of tax receipts or other documents evidencing such payment by such Person. 
 (d) The
Bank shall indemnify and hold harmless each Holder of Notes (other than an Excluded Holder) from and against, and upon written request reimburse each such Holder for the amount (excluding any Additional Amounts that have previously been paid by the
Bank with respect thereto) of: 
  

	 	(1)	 any Canadian taxes so levied or imposed and paid by such Holder as a result of payments made by or on behalf of
the Bank under or with respect to the Notes; 

  

	 	(2)	 any liability (including penalties, interest and expenses) arising therefrom or with respect thereto; and

  

	 	(3)	 any Canadian taxes imposed with respect to any reimbursement under the preceding clauses (1) and (2), but
excluding any such Canadian taxes on such Holder’s net income. 

 (e) In any event, no Additional Amounts or
indemnity amounts shall be payable under this Section 207 in respect of any Notes in excess of the Additional Amounts and the indemnity amounts which would be required if, at all relevant times, the Holder of such Notes were a resident of the
United States for purposes of and was entitled to the benefits of the Canada-U.S. Income Tax Convention (1980), as amended, including any protocols thereto. 

(f) Wherever in the Indenture there is mentioned, in any context, the payment of principal, interest, if any, or any other amount payable
under or with respect to the Notes, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof. In the event of the
occurrence of any transaction or event resulting in a successor to the Bank, all references to Canada in this Section 207 shall be deemed to be references to the jurisdiction of organization of the successor entity. 

SECTION 208. Amendments. Notwithstanding any other provision of the Indenture or the Notes, the Bank shall not, without the prior
written approval of the Superintendent, amend or vary terms of the Notes that would affect the recognition of the Notes as regulatory capital under capital adequacy requirements adopted by the Superintendent. 

ARTICLE THREE 
 FORM OF
NOTES 
 SECTION 301. Form of Notes. The Notes and the Trustee’s certificate of authentication thereon are to be
substantially in the form attached as Exhibit A hereto, with such changes therein as the officer of the Bank executing the Notes (by manual, facsimile or electronic format (i.e. “.pdf” or “.tif”) signature) may approve,
such approval to be conclusively evidenced by their execution thereof. 

  
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 ARTICLE FOUR 

ISSUE OF NOTES 

SECTION 401. Original Issue of Notes. Notes having an aggregate principal amount of US$1,250,000,000 may from time to time, upon
execution of this Second Supplemental Indenture, be executed by the Bank and delivered to the Trustees for authentication, and upon Bank Order either Trustee shall thereupon authenticate and deliver said Notes in accordance with a Bank Order
pursuant to Section 303 of the Base Indenture without any further action by the Bank (other than as required by the Base Indenture). 

SECTION 402. Additional Issues of Notes. The Bank may from time to time, without notice to or the consent of the Holders of the
Notes, issue additional Notes, which Notes will rank pari passu with the Notes and be identical in all respects as the Notes previously issued (other than issue date, issue price and, if applicable, the first interest payment
date and the initial interest accrual date) in order that such additional Notes may be consolidated and form a single series with the Notes outstanding immediately prior to the issuance of such additional Notes and have the same terms as to status,
redemption or otherwise as the Notes. Such additional Notes may have the same or different CUSIP numbers than the Notes issued on the date hereof or no CUSIP number, as the case may be. 

ARTICLE FIVE 
 REMEDIES

 SECTION 501. Events of Default. Notwithstanding any other provisions of the Base Indenture, and for greater certainty,
none of (i) the non-payment or default in the payment of interest, or the cancellation of any interest, on the Notes, (ii) a default in the performance of any other covenant of the Bank in the Indenture
or (iii) the occurrence of an NVCC Automatic Conversion shall constitute an Event of Default under the Indenture or the Notes. 

ARTICLE SIX 
 CERTAIN
COVENANTS APPLICABLE TO THE NOTES 
 SECTION 601. Restrictions on the Payment of Dividends and Retirement of Shares. If on
any Interest Payment Date, the Bank does not pay in full the applicable interest on the Notes that is due and payable on such Interest Payment Date (whether as a result of cancellation or otherwise), the Bank shall not (a) declare dividends on
the Common Shares or the preferred shares of the Bank or (b) redeem, purchase or otherwise retire any Common Shares or preferred shares of the Bank (except pursuant to any purchase obligation, retraction privilege or mandatory redemption
provisions attaching to any preferred shares of the Bank), in each case, until the month commencing immediately after the Bank makes an interest payment in full on the Notes. 

ARTICLE SEVEN 

SUBORDINATION OF NOTES 

SECTION 701. Applicability of Article Twelve of the Base Indenture. Solely for the purposes of the Notes (and not in relation to
any other series of Securities), Article Twelve of the Base Indenture shall be deemed to be replaced in its entirety by this Article Seven. 

SECTION 702. Notes Subordinate to Deposit Liabilities and Other Indebtedness. The Notes are direct unsecured debt obligations
constituting bank subordinated indebtedness within the meaning of the Bank Act and, in the event of the insolvency or winding-up of the Bank, the Indebtedness evidenced by the Notes shall rank: 

  
 14 

	 	(a)	 subordinate in right of payment to the prior payment in full of all Indebtedness of the Bank then outstanding
(including all Subordinated Indebtedness of the Bank then outstanding other than Deeply Subordinated Indebtedness) (the “Higher Ranked Indebtedness”); and 

 

	 	(b)	 in right of payment equally with and not prior to the Deeply Subordinated Indebtedness (other than the Deeply
Subordinated Indebtedness which by its terms ranks subordinate to the Notes) of the Bank then outstanding, 

 in each case,
whether now outstanding or hereafter incurred. 
 The Bank agrees and each Holder of any Note, by his, her or its acceptance of such Note,
also agrees and shall be deemed conclusively to have agreed, for the benefit of the present and future holders of Higher Ranked Indebtedness, and for the benefit of all present and future holders of Indebtedness to which the notes and debentures
under the Existing Trust Indentures are subordinate in right of payment, to the provisions of this Article Seven and the Bank and each Holder of any Note by his, her or its acceptance of such Note shall be bound by such provisions. 

SECTION 703. Further Assurances of Subordination. Each Holder of Notes by his, her or its acceptance of such Note authorizes and
directs the Trustees on his, her or its behalf to take such action as may be necessary or appropriate to further assure the subordination as provided in this Article Seven. 

SECTION 704. Reliance on Judicial Order or Certificate of Liquidating Agent. Upon payment or distribution of assets of the Bank,
the Trustees, subject to the provisions of Article Six of the Base Indenture, and the Holders of the Notes shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending, or upon any certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution,
delivered to the Trustees or the Holders of the Notes, for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Higher Ranked Indebtedness and other Indebtedness of the Bank, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article Seven. 

SECTION 705. Trustees’ Compensation Not Prejudiced. Nothing in this Article Seven shall apply to amounts due to
the Trustees pursuant to other sections in the Indenture. 
 SECTION 706. Trustees Entitled to
Assume Payments Not Prohibited in Absence of Notice. The Trustees shall not at any time be charged with knowledge of the existence of any facts which would
prohibit the making of any payment to or by the Trustees, and the Trustees shall not be required to withhold payment to the Holders of Notes, unless and until the Trustees shall have received written notice thereof at its Corporate Trust Office from
the Bank, or from one or more holders of Higher Ranked Indebtedness of the Bank or from any representative therefor and, prior to the receipt of any such written notice, the Trustees, subject to the provisions of Sections 601 and 603 of the Base
Indenture, shall be entitled to assume conclusively that no such facts exist. 
 The Trustees, subject to the provisions of Article Six of
the Base Indenture, shall be entitled to rely on the delivery to it of a written notice by the Bank or a person representing himself, herself or itself to be a holder of Higher Ranked Indebtedness of the Bank to establish that such notice has been
given. In the event that the Trustees determine in good faith that further evidence is required with respect to the right of any Person as a holder of such Higher Ranked Indebtedness of the Bank to participate in any payment or distribution pursuant
to this Article Seven, the Trustees may request such person to furnish 

  
 15 

 
evidence to the reasonable satisfaction of the Trustees as to the amount of such Higher Ranked Indebtedness of the Bank held by such person, the extent to which such person is entitled to
participate in such payment or distribution and any other facts pertinent to the rights of such person under this Article Seven, and if such evidence is not furnished the Trustee may defer any payment to such person pending judicial determination as
to the right of such person to receive such payment. 
 SECTION 707. No Fiduciary Duty of Trustees to Holders of Higher Ranked
Indebtedness of the Bank. The Trustees shall not be deemed to owe any fiduciary duty to the holders of Higher Ranked Indebtedness of the Bank, and shall not be liable to any such holders if it shall in good faith mistakenly pay over or
distribute to the Holders of the Notes or the Bank or any other Person, cash, property or securities to which any holders of Higher Ranked Indebtedness of the Bank shall be entitled by virtue of this Article Seven or otherwise. Nothing in this
Section 707 shall affect the obligation of any other such Person to hold such payment for the benefit of, and to pay such payment over to, the holders of Higher Ranked Indebtedness of the Bank or their representative. 

ARTICLE EIGHT 

CONVERSION INTO COMMON SHARES UPON A TRIGGER EVENT 

SECTION 801. Applicability of Article Thirteen of the Base Indenture. Solely for the purposes of the Notes (and not in relation to
any other series of Securities), Article Thirteen of the Base Indenture shall be deemed to be replaced in its entirety by this Article Eight. 

SECTION 802. NVCC Automatic Conversion. Upon the occurrence of a Trigger Event, each outstanding Note shall automatically and
immediately be converted, on a full and permanent basis, without any action on the part of, or the consent of, the Holders of Notes, into fully-paid and non-assessable Common Shares, in accordance with this
Article Eight (an “NVCC Automatic Conversion”). 
 SECTION 803. Conversion Rate. The number of Common Shares into
which each Note is convertible at the time of an NVCC Automatic Conversion shall be equal to the quotient obtained by dividing (a) the Multiplier multiplied by the Note Value, by (b) the Conversion Price. 

SECTION 804. Time of NVCC Automatic Conversion. An NVCC Automatic Conversion is deemed to be effected immediately following the
occurrence of a Trigger Event and the rights of the Holder of such Notes as the Holder thereof shall cease at such time and the person or persons entitled to receive Common Shares upon an NVCC Automatic Conversion shall be treated for all purposes
as having become the holder or holders of record of such Common Shares at such time. Subject to Section 805, as promptly as practicable after the occurrence of a Trigger Event, the Bank shall announce the NVCC Automatic Conversion by way
of a press release and shall give notice of the NVCC Automatic Conversion in accordance with the provisions of Section 106 of the Base Indenture to the then Holders of Notes and the Trustees. As promptly as practicable after the NVCC Automatic
Conversion, the Bank shall deliver or cause to be delivered certificates representing Common Shares registered in the name of the Holders of Notes, or as such Holder shall have directed, on presentation and surrender of the Global Note, or Notes in
certificated form, as the case may be, at the Corporate Trust Office. From and after the NVCC Automatic Conversion, the Notes shall cease to be outstanding, the Holders thereof shall cease to be entitled to interest thereon, and any certificates
representing the Notes shall represent only the right to receive upon surrender thereof certificates representing the applicable number of Common Shares specified in Section 803. An NVCC Automatic Conversion shall be mandatory and binding upon
both the Bank and all Holders of the Notes notwithstanding anything else including, without limitation: (a) any prior action to or in furtherance of a redemption of the Notes pursuant to the Indenture; and (b) any delay or impediment to
the issuance or delivery of the Common Shares to the Holders of the Notes. 

  
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 SECTION 805. Right Not to Deliver Common Shares. Upon an NVCC Automatic
Conversion, the Bank reserves the right not to deliver some or all, as applicable, of the Common Shares issuable thereupon to any Person whom the Bank or either Trustee has reason to believe is an Ineligible Person. In such circumstances, the Bank
shall hold, as agent of all Ineligible Persons, all Common Shares otherwise deliverable to the Ineligible Persons and shall attempt to facilitate the sale of such Common Shares to parties other than the Bank and Bank Affiliates on behalf of such
Ineligible Persons through a registered dealer to be retained by the Bank on behalf of such Ineligible Persons. Those sales (if any) may be made at any time and at any price. The Bank shall not be subject to any liability for failure to sell such
Common Shares on behalf of the Ineligible Persons or at any particular price on any particular day. The net proceeds received by the Bank from the sale of any such Common Shares shall be divided among the Ineligible Persons in proportion to the
number of Common Shares that would otherwise have been delivered to them upon the NVCC Automatic Conversion after deducting the costs of sale and any applicable withholding taxes. The Bank shall deliver a check or send a wire transfer in immediately
available funds representing the aggregate net proceeds to DTC (if the Common Shares are then held in the form of one or more global securities) or in all other cases to such Ineligible Persons in accordance with the regular practices and procedures
of DTC or otherwise. 
 Upon an NVCC Automatic Conversion, the Bank reserves the right not to deliver some or all, as applicable, of the
Common Shares to any Person who, by virtue of the operation of the NVCC Automatic Conversion, would become a Significant Shareholder. In such circumstances, the Bank shall hold, as agent of that Person, the Threshold Number of Common Shares
otherwise deliverable to such Person, and the Bank shall attempt to facilitate the sale of such Common Shares to parties other than the Bank and its Bank Affiliates on behalf of that Person through a registered dealer to be retained by the Bank on
behalf of such Person. Those sales (if any) may be made at any time and at any price. The Bank shall not be subject to any liability for failure to sell any such Common Shares on behalf of that Person or at any particular price on any particular
day. The net proceeds received by the Bank from the sale of any such Common Shares shall be delivered to that Person, after deducting the costs of sale and any applicable withholding taxes. The Bank shall deliver a check or send a wire transfer in
immediately available funds representing the aggregate net proceeds to DTC (if the Common Shares are then held in the form of one or more global securities) or in all other cases to such Persons in accordance with the regular practices and
procedures of DTC or otherwise. 
 SECTION 806. Fractional Shares. In any case where the aggregate number of Common Shares to be
issued to a Holder of Notes pursuant to an NVCC Automatic Conversion includes a fraction of a Common Share, such number of Common Shares to be issued to such Holder shall be rounded down to the nearest whole number of Common Shares and no cash
payment shall be made in lieu of such fractional Common Share. 
 SECTION 807. Recapitalizations, Reclassifications and Changes in
the Common Shares. In the event of a capital reorganization, consolidation, merger or amalgamation of the Bank or comparable transaction affecting the Common Shares, the Bank shall take necessary action to ensure that Holders of Notes receive,
pursuant to an NVCC Automatic Conversion, the number of Common Shares or other securities that such Holders would have received if the NVCC Automatic Conversion occurred immediately prior to the record date for such event. 

SECTION 808. Adjustments. 

(a) Upon a Common Share Reorganization, the Floor Price shall be adjusted so that it will equal the price determined by multiplying the Floor
Price in effect immediately prior to such effective date or record date of such event by a fraction: 

  
 17 

	 	(i)	 the numerator of which shall be the total number of Common Shares outstanding on such effective date or record
date before giving effect to such Common Share Reorganization; and 

  

	 	(ii)	 the denominator of which shall be the total number of Common Shares outstanding immediately after giving effect
to such Common Share Reorganization (including, in the case where securities exchangeable for or convertible into Common Shares are distributed, the number, without duplication, of Common Shares that would have been outstanding had all such
securities been exchanged for or converted into Common Shares on such effective date or record date). 

 The adjustment
shall be calculated to the nearest one-tenth of one cent provided that no adjustment of the Floor Price shall be required unless such adjustment would require an increase or decrease of at least 1% of the
Floor Price then in effect; provided, however, that in such case any adjustment that would otherwise be required then to be made will be carried forward and will be made at the time of and together with the next subsequent adjustment
which, together with any adjustments so carried forward, will amount to at least 1% of the Floor Price. 
 (b) In any case in which the
Floor Price definition or Section 807 requires that an adjustment will become effective immediately after a record date for an event referred to therein or herein, the Bank may defer, until the occurrence of such event, issuing to the Holders
of any Notes upon a NVCC Automatic Conversion occurring after such record date and before the occurrence of such event, any additional Common Shares issuable upon such conversion by reason of the adjustment required by such event, provided,
however, that the Bank shall deliver to such Holder evidence of such Holder’s right to receive such additional Common Shares upon the occurrence of such event and the right to receive any dividends or other distributions made on such
additional Common Shares declared in favor of holders of record of Common Shares on and after the date of the NVCC Automatic Conversion or such later date on which such holder would, but for the provisions of this Section 808(b), have become
the holder of record of such additional Common Shares. 
 (c) If at any time a dispute arises with respect to adjustments provided for in
the Floor Price definition or in Section 807, such dispute shall be conclusively determined, subject to the consent if required, of the TSX and any other stock exchange on which the Common Shares are then listed, by the Bank’s Auditors, or
if they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by action of the board of directors of the Bank and any such determination shall be binding upon the Bank, the Holders of the Notes
and the other shareholders of the Bank. Such auditors or accountants shall be given access to all necessary records of the Bank. 
 (d) If
the Bank sets a record date to take any action that would require an adjustment provided for in the Floor Price definition or in Section 807 and before the taking of such action, the Bank abandons its plan to take such action, then no such
adjustment shall be made. 
 (e) The Bank shall from time to time, immediately after the occurrence of any Common Share Reorganization or
other event that requires an adjustment or readjustment as provided in the definition of Floor Price, Section 807 or this Section 808, deliver an Officer’s Certificate of the Bank to the Trustees specifying the nature of the event
requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based, and the Trustees shall be entitled to act
and rely upon such Officer’s Certificate of the Bank. Such Officer’s Certificate of the Bank and the amount of the adjustment or readjustment specified therein shall be conclusive and binding on all parties in interest. Until such

  
 18 

 
Officer’s Certificate of the Bank is received by the Trustees, the Trustees may act and be protected in acting on the presumption that no adjustment or readjustment has been made or is
required. Except in respect of any Common Share Reorganization, the Bank shall forthwith give notice to the Holders of Notes specifying the event requiring such adjustment or readjustment and the amount thereof, including the resulting Floor Price.

 SECTION 809. Agreement with Respect to a Trigger Event. By acquiring any Note, each Holder or beneficial owner of such Note
or any interest therein, including any person acquiring any such Note or interest therein after the date thereof, irrevocably consents to the principal amount of the Note and any Accrued Interest thereon being deemed paid in full by the issuance of
Common Shares upon the occurrence of a Trigger Event and the resulting NVCC Automatic Conversion, which occurrence and resulting NVCC Automatic Conversion shall occur without any further action on the part of such Holder or beneficial owner or the
Trustees. 
 SECTION 810. General. 

(a) Upon an NVCC Automatic Conversion, any Accrued Interest, together with the principal amount of the Notes, shall be deemed paid in full by
the issuance of Common Shares upon such conversion and the Holders of Notes shall have no further rights and the Bank shall have no further obligations under the Indenture. If tax is required to be withheld from such payment of interest in the form
of Common Shares, the number of Common Shares received by a Holder of Notes shall reflect an amount net of any applicable withholding tax. 

(b) Notwithstanding any other provision of the Indenture or the Notes, the conversion of the Notes shall not be an Event of Default and the
only consequence of a Trigger Event shall be the conversion of such Notes into Common Shares. 
 (c) The Trustees shall have no duty to
determine the occurrence of an NVCC Automatic Conversion or any calculations in connection with any such NVCC Automatic Conversion. The Trustees make no representation as to the validity or value of any securities or assets issued upon an NVCC
Automatic Conversion, and the Trustees shall not be responsible for the Bank’s failure to comply with any provisions of this Article Eight. 

ARTICLE NINE 
 REDEMPTION
OF NOTES 
 SECTION 901. Applicability of Article Eleven of the Base Indenture. The provisions of Article Eleven of the Base
Indenture shall be applicable with respect to the Notes. 
 SECTION 902. Optional Redemption. The Bank may, at its option, with
the prior written approval of the Superintendent, redeem the Notes, in whole or in part, on June 4, 2025 and on each fifth (5th) anniversary date thereafter, at a redemption price equal to
100% of the principal amount thereof, plus Accrued Interest to, but excluding, the Redemption Date. 
 SECTION 903. Regulatory
Redemption. The Bank may, at its option, with the prior written approval of the Superintendent, redeem the Notes, in whole but not in part, at any time within 90 days following a Regulatory Event Date, on not less than 30 nor more than
60 days’ prior notice, at a redemption price equal to 100% of the principal amount thereof, plus Accrued Interest to, but excluding, the Redemption Date. 

  
 19 

 SECTION 904. Tax Redemption. The Bank may, at its option, with the prior written
approval of the Superintendent, redeem the Notes, in whole but not in part, at any time following the occurrence of a Tax Event, on not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal
amount thereof, plus Accrued Interest to, but excluding, the Redemption Date. 
 SECTION 905. Mandatory Redemption; Open Market
Purchases. The Bank shall not be required to make mandatory redemption payments or sinking fund payments with respect to the Notes. At any time the Bank may, with the prior written approval of the Superintendent, purchase Notes, in whole or in
part, by tender offer, open market purchases, negotiated transactions or otherwise in accordance with applicable securities laws and regulations, so long as such acquisition does not otherwise violate the terms of the Indenture, upon such terms and
at such prices as the Bank may determine. Notes purchased by the Bank shall be cancelled and shall not be re-issued. Notwithstanding the foregoing, any Subsidiary of the Bank may purchase Notes in the ordinary
course of its business of dealing in securities. 
 ARTICLE TEN 

MISCELLANEOUS PROVISIONS 

SECTION 1001. Ratification of Base Indenture. The Base Indenture, as supplemented by this Second Supplemental Indenture, is
in all respects ratified and confirmed, and this Second Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. 

SECTION 1002. Trustee Not Responsible for Recitals. The recitals contained herein and in the Notes, except for a Trustee’s
certificate of authentication, shall be taken as the statements of the Bank, and the Trustees assume no responsibility for their correctness. The Trustees make no representations as to the validity or sufficiency of this First Supplement Indenture
or of the Notes. The Trustees shall not be accountable for the use or application by the Bank of the Notes or the proceeds thereof. 

SECTION 1003. Governing Law. This Second Supplemental Indenture and the Notes shall be governed by and construed in accordance
with the law of the State of New York, except for Section 301(b), Article Twelve and Article Thirteen of the Base Indenture and Article Seven and Article Eight of this Second Supplemental Indenture, which shall be governed by and construed in
accordance with the laws of the Province of Ontario and the laws of Canada applicable therein. 
 SECTION 1004. Separability
Clause. In case any provision in this Second Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby. 
 SECTION 1005. Benefits of Second Supplemental Indenture. Nothing in this Second Supplemental Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this Second Supplemental Indenture. 

SECTION 1006. Conflict with Base Indenture. If any provision of this Second Supplemental Indenture relating to the Notes is
inconsistent with any provision of the Base Indenture, such provision of this Second Supplemental Indenture shall control. 

SECTION 1007. Provisions of Trust Indenture Legislation Controlling. This Second Supplemental Indenture is subject to the
provisions of the Trust Indenture Legislation that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions. If any provision of this Second Supplemental Indenture limits, qualifies, or conflicts
with a provision of the 

  
 20 

 
Trust Indenture Legislation that is required under the Trust Indenture Legislation to be a part of and govern this Second Supplemental Indenture, the latter provision shall control. 

SECTION 1008. Execution in Counterparts. This Second Supplemental Indenture may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Second Supplemental Indenture and of signature pages by facsimile or electronic
format (i.e., “.pdf” or “.tif”) transmission shall constitute effective execution and delivery of this Second Supplemental Indenture as to the parties hereto and may be used in lieu of the original Second Supplemental Indenture
for all purposes. Signatures of the parties hereto transmitted by facsimile or electronic format (i.e., “.pdf” or “.tif”) shall be deemed to be their original signatures for all purposes. 

SECTION 1009. Indenture and Notes Solely Corporate Obligations. No recourse under or upon any obligation, covenant or agreement of
the Indenture or of Notes, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, shareholder, officer or director, as such, past, present or future, of the Bank or of any successor corporation, either
directly or through the Bank, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that the Indenture and the Notes are solely corporate
obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, shareholders, officers or directors, as such, of the Bank or of any successor corporation, or any of them, because of the
creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in the Indenture or the Notes or implied therefrom; and that any and all such personal liability, either at common law or in
equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, shareholder, officer or director, as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in the Indenture or in the Notes or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Second Supplemental Indenture and the
issue of the Notes. 
 SECTION 1010. Waiver of Jury Trial. EACH OF THE BANK AND THE TRUSTEES HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SECOND SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

[Signature page follows] 

  
 21 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed, all as of the day and year first above written. 
  

					
	THE BANK OF NOVA SCOTIA
		
	By:	 	 /s/ Darren Potter

		 	Name:	 	Darren Potter
		 	Title:	 	Managing Director, Term Funding and Capital Management
	
	COMPUTERSHARE TRUST COMPANY, N.A.,
	 as U.S. Trustee

		
	By:	 	 /s/ Jerry Urbanek

		 	Name:	 	Jerry Urbanek
		 	Title:	 	Trust Officer
	
	COMPUTERSHARE TRUST COMPANY OF CANADA,
	 as Canadian Trustee

		
	By:	 	 /s/ Marcela Cruz

		 	Name:	 	Marcela Cruz
		 	Title:	 	Corporate Trust Officer
		
	By:	 	 /s/ Ann Samuel

		 	Name:	 	Ann Samuel
		 	Title:	 	Corporate Trust Officer

  
 [Signature Page to
Second Supplemental Indenture] 

 Exhibit A 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE BANK
(AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 THE BANK OF
NOVA SCOTIA 
 4.900% Fixed Rate Resetting Perpetual 

Subordinated Additional Tier 1 Capital Notes 

(Non-Viability Contingent Capital (NVCC)) 

(subordinated indebtedness) 

This Security will not constitute a deposit that is insured under 

the Canada Deposit Insurance Corporation Act or by the 

United States Federal Deposit Insurance Corporation. 
  

									
	No.:	 	  
	  		  		 	CUSIP No.: 064159VJ2
		 		  		  	US$	 	  

									
	Issue Date:	 	  
	 		 		 	

 The Bank of Nova Scotia, a Schedule I bank under the Bank Act (Canada) (herein called the “Bank”,
which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
US$                     
(                     UNITED STATES DOLLARS), if and to the extent due, and to pay interest thereon, if any, in accordance with the terms
hereof and the Indenture. This Security shall have no scheduled maturity date or scheduled redemption date. 
 From and including June 4, 2020, to, but
excluding, June 4, 2025 (the “Initial Rate Period”), this Security shall bear interest at the annual rate of 4.900%, computed on the basis of a 360-day year consisting of twelve 30-day months, and interest, if any, shall be payable, subject to cancellation pursuant to Section 206(a) of the Second Supplemental Indenture, quarterly in arrears on March 4, June 4,
September 4 and December 4 of each year (each such date, an “Interest Payment Date”) during the Initial Rate Period, commencing on September 4, 2020. Interest on this Security shall accrue during the Initial Rate
Period from and including June 4, 2020 to but excluding the first Interest Payment Date and then from and including each Interest Payment Date to which interest has been paid or duly provided for

 
(whether or not such interest is paid or cancelled pursuant to Section 206(a) of the Second Supplemental Indenture) to but excluding the next Interest Payment Date, any Redemption Date or
June 4, 2025, as the case may be. 
 From and including each Reset Date (June 4, 2025 and each fifth (5th) anniversary date thereafter, a
“Reset Date”) to, but excluding, the next following Reset Date (each such period, the “Reset Rate Period”), this Security shall bear interest at a per annum rate equal to the sum, as determined by the Calculation
Agent, of (i) the then-prevailing U.S. Treasury Rate on the second business day immediately preceding the relevant Reset Date (each such date, a “Reset Rate Determination Date”) and (ii) 4.551% (the “Reset
Spread”), computed on the basis of a 360-day year consisting of twelve 30-day months, which shall be payable, subject to cancellation pursuant to
Section 206(a) of the Second Supplemental Indenture, quarterly in arrears on each Interest Payment Date during any Reset Rate Period, commencing on September 4, 2025. Interest on this Security shall accrue during the first Reset Rate
Period from and including June 4, 2025 to but excluding the next Interest Payment Date and then, for each subsequent Reset Rate Period, from and including each Interest Payment Date to which interest has been paid or duly provided for (whether
or not such interest is paid or cancelled pursuant to Section 206(a) of the Second Supplemental Indenture) to but excluding the next Interest Payment Date or any Redemption Date, as the case may be. 

The “U.S. Treasury Rate” with respect to any Reset Date for which such rate applies, shall be the rate per annum equal to:
the average of the yields on actively traded U.S. treasury securities adjusted to constant maturity, for five-year maturities, for the five business days appearing under the caption “Treasury Constant Maturities” in the most recently
published statistical release designated H.15 Daily Update or any successor publication which is published by the Federal Reserve Board, as determined by the Calculation Agent in its sole discretion. 

If no calculation is provided as described above, then the Calculation Agent, after consulting such sources as it deems comparable to any of the foregoing
calculations, or any such source as it deems reasonable from which to estimate the five-year treasury rate, shall determine the U.S. Treasury Rate in its sole discretion, provided that if the Calculation Agent determines there is an
industry-accepted successor five-year treasury rate, then the Calculation Agent shall use such successor rate. If the Calculation Agent has determined a substitute or successor base rate in accordance with the foregoing, the Calculation Agent in its
sole discretion may determine the business day convention, the definition of business day and the Reset Rate Determination Date to be used and any other relevant methodology for calculating such substitute or successor base rate, including any
adjustment factor needed to make such substitute or successor base rate comparable to the five-year treasury rate, in a manner that is consistent with industry accepted practices for such substitute or successor base rate. 

The U.S. Treasury Rate shall be determined by the Calculation Agent on the relevant Reset Rate Determination Date. 

Promptly upon determination, the Calculation Agent shall inform the Trustees and the Bank of the interest rate for the next interest period. Absent manifest
error, the determination of the interest rate by the Calculation Agent shall be binding and conclusive on the Holders of this Security, the Trustees and the Bank. All percentages resulting from any calculation of the interest rate on this Security
during any Reset Rate Period shall be rounded to the nearest one hundred-thousandth of a percentage point with five one millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and
all dollar amounts used in or resulting from such calculation on this Security shall be rounded to the nearest cent (with one half cent being rounded upward). The interest rate on this Security shall in no event be higher than the maximum rate
permitted by New York law as the 

 
same may be modified by United States law of general application. In no event shall the interest rate on this Security be less than zero. 

Subject to the cancellation of interest payments pursuant to Section 206(a) of the Second Supplemental Indenture, the interest, if any, so payable, and
punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the February 17, May 20, August 20 or November 19 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. If any Interest Payment Date falls on
a day that is not a Business Day, the Bank shall postpone the making of such interest payment to the next succeeding Business Day (and no interest shall be paid in respect of the delay). A “Business Day” means each Monday, Tuesday,
Wednesday, Thursday or Friday that is not a day on which banking institutions are authorized or required by law or executive order to close in The City of New York, New York or Toronto, Ontario. 

Payment of the principal of and interest on this Security shall be made at the office or agency of the Bank maintained for that purpose, in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of the principal of and interest on the Securities represented by one or more Global
Securities registered in the name of or held by DTC or its nominee shall be payable in immediately available funds to DTC or its nominee, as the case may be, as the registered holder of such Global Security. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by a Trustee referred to on the reverse
hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. The signature of the executing officer of the Bank on this Security may be manual, by facsimile or
electronic format (i.e. “.pdf” or “.tif”). 

 IN WITNESS WHEREOF, the Bank has caused this instrument to be duly executed. 

 

							
	Dated:                     	 		 	
		 		 	THE BANK OF NOVA SCOTIA                          
				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

							
	Dated:                     	 		 	
		 		 	COMPUTERSHARE TRUST COMPANY, N.A.,
		 		 	 as U.S. Trustee

				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:

 (REVERSE OF SECURITY) 

This Security is one of a duly authorized issue of securities of the Bank (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of October 12, 2017 (the “Base Indenture”), among the Bank, Computershare Trust Company, N.A. (the “U.S. Trustee”) and Computershare Trust Company of
Canada (the “Canadian Trustee” and, together with the U.S. Trustee, the “Trustee” or “Trustees”, which terms include any successor trustee under the Indenture), as amended and supplemented by the
Second Supplemental Indenture, dated as of June 4, 2020, among the Bank and the Trustees (the “Second Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), and reference is hereby
made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Bank, the Trustees and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on the face hereof initially limited in aggregate principal amount to US$1,250,000,000, provided that the Bank may, without the consent of any Holder, at any time and from
time to time, increase the initial principal amount. 
 The Securities are the Bank’s direct unsecured obligations, constituting
subordinated indebtedness for the purpose of the Bank Act. 
 The indebtedness evidenced by this Security, to the extent provided in the
Indenture, ranks (a) subordinate in right of payment to the prior payment in full of all Higher Ranked Indebtedness and (b) in right of payment equally with and not prior to the Deeply Subordinated Indebtedness (other than the Deeply
Subordinated Indebtedness which by its terms ranks subordinate to the Securities) of the Bank, in each case, whether now outstanding or hereafter incurred, and this Security is issued subject to the provisions of the Indenture with respect thereto.
Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustees on his, her or its behalf to take such actions as may be necessary or appropriate to
effectuate the subordination so provided and (c) appoints each Trustee as his or her attorney-in-fact for any and all such purposes. Each Holder hereof, by his or
her acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Higher Ranked Indebtedness whether now outstanding or hereafter created, incurred, assumed or
guaranteed, and waives reliance by each such holder upon said provisions. 
 The Bank shall have the sole and absolute discretion at all
times and for any reason to cancel (in whole or in part) any interest payment that would otherwise be payable on any Interest Payment Date. 

Upon any election by the Bank to cancel (in whole or in part) any interest payment pursuant to Section 206(a) of the Second Supplemental
Indenture, the Bank shall give notice to the Holders of this Security through DTC and to the Trustees on or prior to the relevant Interest Payment Date, specifying the amount of the relevant interest cancellation and, accordingly, the amount (if
any) of the interest that will be paid on such Interest Payment Date. Failure to provide such notice shall not have any impact on the effectiveness of, or otherwise invalidate, any such cancellation of interest, or give the Holders and beneficial
owners of this Security any rights as a result of such failure. 
 Interest on this Security shall only be due and payable on an Interest
Payment Date to the extent it is not cancelled (in whole or in part) in accordance with the Indenture, and any cancelled interest shall not accumulate or be due and payable at any time thereafter and Holders and beneficial owners of this Security
shall have no rights thereto or to receive any additional interest or compensation as a result of such cancellation of interest in respect of this Security. 

 If on any Interest Payment Date, the Bank does not pay in full the applicable interest on
this Security that is due and payable on such Interest Payment Date (whether as a result of cancellation or otherwise), the Bank shall not (a) declare dividends on the Common Shares or the preferred shares of the Bank or (b) redeem,
purchase or otherwise retire any Common Shares or preferred shares of the Bank (except pursuant to any purchase obligation, retraction privilege or mandatory redemption provisions attaching to any preferred shares of the Bank), in each case, until
the month commencing immediately after the Bank makes an interest payment in full on this Security. 
 Upon the occurrence of a Trigger
Event, this Security shall automatically and immediately be converted, on a full and permanent basis, without the consent of the Holders thereof, into a number of fully-paid Common Shares of the Bank determined by dividing (a) the product of
the Multiplier and the Note Value, by (b) the Conversion Price. For purposes of the foregoing, the Multiplier shall be 1.25 and the Floor Price shall be the U.S. dollar equivalent of CDN $5.00 converted into U.S. dollars at the Prevailing Rate
on the day immediately prior to the date on which the Trigger Event occurs, subject to adjustment in the event of a Common Share Reorganization. 

By acquiring this Security, any Holder or beneficial owner of this Security or any interest therein, including any person acquiring any
Security or interest therein after the date hereof, irrevocably consents to the principal amount of this Security and any Accrued Interest thereon being deemed paid in full by the issuance of Common Shares upon the occurrence of a Trigger Event and
the resulting NVCC Automatic Conversion, which occurrence and resulting NVCC Automatic Conversion shall occur without any further action on the part of such Holder or beneficial owner or the Trustees. 

Subject to Section 206(a) of the Second Supplemental Indenture, all payments made by or on behalf of the Bank under or with respect to
the Securities shall be made free and clear of and without withholding or deduction for or on account of any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and other liabilities
related thereto) imposed or levied by or on behalf of the Government of Canada or any province or territory thereof or by any authority or agency therein or thereof having power to tax (hereafter “Canadian taxes”), unless the Bank
is required to withhold or deduct Canadian taxes by law or by the interpretation or administration thereof. If the Bank is so required to withhold or deduct any amount for or on account of Canadian taxes from any payment made under or with respect
to the Securities, the Bank shall pay to each Holder of Securities as additional interest such additional amounts (“Additional Amounts”) as may be necessary so that the net amount received by each such Holder after such withholding
or deduction (and after deducting any Canadian taxes on such Additional Amounts) shall not be less than the amount such Holder would have received if such Canadian taxes had not been withheld or deducted, except as described below. However, no
Additional Amounts shall be payable with respect to a payment made to a Holder (such Holder, an “Excluded Holder”) in respect of the beneficial owner thereof: 
  

	 	•	 	 with which the Bank does not deal at arm’s-length (for the purposes
of the Income Tax Act (Canada)) at the time of the making of such payment; 

  

	 	•	 	 which is subject to such Canadian taxes by reason of the Holder being a resident, domiciliary or national of,
engaged in business or maintaining a permanent establishment or other physical presence in or otherwise having some connection with Canada or any province or territory thereof otherwise than by the mere holding of the Securities or the receipt of
payments thereunder; 

  

	 	•	 	 which is subject to such Canadian taxes by reason of the Holder’s failure to comply with any certification,
identification, documentation or other reporting requirements if 

	 	 
compliance is required by law, regulation, administrative practice or an applicable treaty as a precondition to exemption from, or a reduction in the rate of deduction or withholding of, such
Canadian taxes (provided that the Bank advises the Trustees and the Holders of the Securities then outstanding of any change in such requirements); 

  

	 	•	 	 with respect to any estate, inheritance, gift, sale, transfer, personal property or similar tax or other
governmental charge; or 

  

	 	•	 	 which is a fiduciary or partnership or person other than the sole beneficial owner of such payment to the extent
that the Canadian taxes would not have been imposed on such payment had such Holder been the sole beneficial owner of such Securities. 

The Bank shall also: 
  

	 	•	 	 make such withholding or deduction; and 

 

	 	•	 	 remit the full amount deducted or withheld to the relevant authority in accordance with applicable law.

 The Bank shall furnish to the Holders of the Securities, within 60 days after the date the payment of any Canadian
taxes is due pursuant to applicable law, certified copies of tax receipts or other documents evidencing such payment by such Person. 
 The
Bank shall indemnify and hold harmless each Holder of Securities (other than an Excluded Holder) from and against, and upon written request reimburse each such Holder for the amount (excluding any Additional Amounts that have previously been paid by
the Bank with respect thereto) of: 
  

	 	•	 	 any Canadian taxes so levied or imposed and paid by such Holder as a result of payments made by or on behalf of
the Bank under or with respect to the Securities; 

  

	 	•	 	 any liability (including penalties, interest and expenses) arising therefrom or with respect thereto; and

  

	 	•	 	 any Canadian taxes imposed with respect to any reimbursement under the preceding two bullet points, but excluding
any such Canadian taxes on such Holder’s net income. 

 In any event, no Additional Amounts or indemnity amounts
shall be payable under the provisions described above in respect of any Securities in excess of the Additional Amounts and the indemnity amounts which would be required if, at all relevant times, the Holder of such Security were a resident of the
United States for purposes of and was entitled to the benefits of the Canada-U.S. Income Tax Convention (1980), as amended, including any protocols thereto. 

Wherever in the Indenture there is mentioned, in any context, the payment of principal, interest, if any, or any other amount payable under or
with respect to a Security, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof. In the event of the occurrence
of any transaction or event resulting in a successor to the Bank, all references to Canada in the preceding paragraphs shall be deemed to be references to the jurisdiction of organization of the successor entity. 

The Bank may, at its option, with the prior written approval of the Superintendent, redeem the

 
Securities, in whole or in part, on June 4, 2025 and on each fifth (5th) anniversary date thereafter, at a redemption price equal to 100%
of the principal amount thereof, plus Accrued Interest to, but excluding, the Redemption Date. The Bank may, at its option, with the prior written approval of the Superintendent, redeem the Securities, in whole but not in part, at any time within 90
days following a Regulatory Event Date, on not less than 30 nor more than 60 days’ prior notice, at a Redemption Price equal to 100% of the principal amount thereof, plus Accrued Interest to, but excluding, the Redemption Date. The Bank may, at
its option, with the prior written approval of the Superintendent, redeem the Securities, in whole but not in part, at any time following the occurrence of a Tax Event, on not less than 30 nor more than 60 days’ prior notice, at a Redemption
Price equal to 100% of the principal amount thereof, plus Accrued Interest to, but excluding, the Redemption Date. 
 In the event of
redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 

If an Event of Default with respect to Securities of this series shall occur, and a Trigger Event has not occurred, the principal of the
Securities of this series, plus Accrued Interest, if any, shall become immediately due and payable as provided in the Indenture, and the Holder of this Security shall have the right, which is absolute and unconditional, to receive payment of the
principal of and Accrued Interest on this Security as provided in the Indenture, and to institute suit for the enforcement of any such payment. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Bank and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Bank and the Trustees with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of each series to be affected, or in certain cases the unanimous consent of each of such Holders. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series
at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Bank with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Security. 
 For disclosure purposes under the Interest Act (Canada),
whenever in the Securities of this series or the Indenture interest at a specified rate is to be calculated on the basis of a period less than a calendar year, the yearly rate of interest to which such rate is equivalent is such rate multiplied by
the actual number of days in the relevant calendar year and divided by the number of days in such period. 
 As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Bank in any place where the
principal of and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Bank and the Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of US$1,000 and integral multiples of
US$1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for 

 
a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

No service charge shall be made for any such registration of transfer or exchange, but the Bank and the Trustees may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Security for
registration of transfer, the Bank, the Trustees and any agent of the Bank or the Trustees may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the
Bank, the Trustees nor any such agent shall be affected by notice to the contrary. 
 All terms used in this Security that are defined in
the Indenture shall have the meanings assigned to them in the Indenture.EX-4.3

 Exhibit 4.3 

IMAX CORPORATION 
 SECOND
AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN 
  

	1.	 Purposes of the IMAX LTIP 

The purposes of the IMAX LTIP are to (a) promote the long term success of the Company and its Affiliates and to increase shareholder
value by providing Eligible Individuals with incentives to contribute to the long term growth and profitability of the Company, and (b) assist the Company in attracting, retaining and motivating highly qualified individuals who are in a
position to make significant contributions to the Company and its Affiliates. 
 The original version of the IMAX LTIP became effective on
June 11, 2013 upon its approval by shareholders and was amended and restated on June 6, 2016. The effectiveness of the original IMAX LTIP terminated any further grants under the Prior Plan. This Second Amended and Restated IMAX LTIP shall
become effective upon adoption by the Board and approval by the Company’s shareholders (the “Effective Date”). 
  

	2.	 Definitions and Rules of Construction 

(a)    Definitions: For purposes of the IMAX LTIP, the following capitalized words shall have the meanings set
forth below: 
 “Affiliate” means any Subsidiary and any person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with, the Company. 
 “Award” means an
Option, Restricted Share, Restricted Share Unit, Stock Appreciation Right, Performance Stock, Performance Stock Unit, Cash Performance Unit or Other Award granted by the Committee pursuant to the terms of the IMAX LTIP. 

“Award Document” means an agreement, certificate or other type or form of document or documentation approved by the
Committee that sets forth the terms and conditions of an Award. An Award Document may be in written, electronic or other media, may be limited to a notation on the books and records of the Company and, unless the Committee requires otherwise, need
not be signed by a representative of the Company or a Participant. 
 “Beneficial Owner” and
“Beneficially Owned” have the meaning set forth in Rule 13d-3 under the Exchange Act. 

“Board” means the Board of Directors of the Company, as constituted from time to time. 

“Cash Performance Unit” means a right to receive a Target Amount of cash in the future granted pursuant to
Section 10(b). 

  
 1 

 “Cause” has the meaning determined by the Committee at the time of
grant and set forth in the applicable Award Document. In the absence of any alternative definition approved by the Committee, Cause shall mean a termination of the Participant’s employment with the Company or one of its Affiliates (i) for
“cause” as defined in an employment agreement applicable to the Participant, or (ii) in the case of a Participant who does not have an employment agreement that defines “cause”, because of: (A) any act or omission that
constitutes a material breach by the Participant of any obligations under an employment agreement with the Company or one of its Affiliates or an Award Document; (B) the continued failure or refusal of the Participant to substantially perform
the duties reasonably required of the Participant as an employee of the Company or one of its Affiliates; (C) any willful and material violation by the Participant of any law or regulation applicable to the business of the Company or one of its
Affiliates, or the Participant’s conviction of a felony, or any willful perpetration by the Participant of a common law fraud; or (D) any other willful misconduct by the Participant which is materially injurious to the financial condition
or business reputation of, or is otherwise materially injurious to, the Company or any of its Affiliates. 
 “Change in
Control” means 
 (i)    Any Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing thirty-five percent (35%) or more of the combined voting power of the Company’s then-outstanding securities; or 

(ii)    The following individuals cease for any reason to constitute a majority of the number of directors
then serving: individuals who, on the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including, but not limited to,
a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least a majority of
the directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended; or 

(iii)    There is consummated a merger or consolidation of the Company, other than (A) a merger or
consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary, at least fifty percent (50%) of the combined voting
power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty-five percent (35%) or more of the combined voting power of the Company’s then outstanding
securities; or 
 (iv)    The shareholders of the Company approve a plan of complete liquidation or
dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which are owned by shareholders of the Company in substantially the same proportions as their ownership of the Company
immediately prior to such sale. 

  
 2 

 “Code” means the United States Internal Revenue Code of 1986, as
amended, and the applicable rulings, regulations and guidance promulgated thereunder as amended from time to time. 

“Committee” means the Compensation Committee of the Board, any successor committee thereto or any other committee
appointed from time to time by the Board to administer the IMAX LTIP, which committee shall meet the requirements of Section 16(b) of the Exchange Act, the applicable rules of the NYSE and all other applicable rules and regulations (in each
case as amended or superseded from time to time); provided, however, that, if any Committee member is found not to have met the qualification requirements of Section 16(b) of the Exchange Act, any actions taken or Awards
granted by the Committee shall not be invalidated by such failure to so qualify. 
 “Common Share” means a share of
Common Stock, as may be adjusted pursuant to Section 13(b). 
 “Common Stock” means the common stock of the
Company, or such other class of share or other securities as may be applicable under Section 13. 
 “Company”
means IMAX Corporation, a Canadian corporation, or any successor to all or substantially all of the Company’s business that adopts the IMAX LTIP. 

“Disability” means a physical or mental disability or infirmity of the Participant that prevents the normal
performance of substantially all of the Participant’s duties as an employee of the Company or any Affiliate, which disability or infirmity shall exist for any continuous period of 180 days within any twelve (12) month period.
Notwithstanding the previous sentence, with respect to an Award that is subject to Section 409A of the Code where the payment or settlement of the Award will accelerate upon termination of employment as a result of the Participant’s
Disability, no such termination will constitute a Disability for the purposes of the IMAX LTIP or any Award Document unless such event also constitutes a “disability” as defined under Section 409A of the Code. 

“EBITA” means the Company’s earnings before interest, taxes and amortization. 

“EBITDA” means earnings before interest, taxes, depreciation and amortization. 

“Eligible Individuals” means the individuals described in Section 4(a) who are eligible for Awards under the IMAX
LTIP. 
 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder, as amended from time to time. 
 “Fair Market Value” means, with respect to
a Common Share, the fair market value thereof as of the relevant date of determination, as determined in accordance with the valuation methodology approved by the Committee in compliance with Section 409A of the Code, if applicable. In the
absence of any alternative valuation methodology approved by the Committee, the Fair Market Value of a Common Share on a given date shall equal the average of the closing selling prices of a Common Share on the preceding five trading days on the
NYSE or such other securities exchanges, if any, as may be designated by the Board from time to time. 

  
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 “Full-value Award” means an award of (i) Restricted Shares,
(ii) Restricted Share Units, (iii) Performance Stock, (iv) Performance Stock Units, (v) Cash Performance Units or (vi) Other Awards. 

“Good Reason” has the meaning determined by the Committee at the time of grant and set forth in the applicable Award
Document. In the absence of any alternative definition approved by the Committee, Good Reason shall mean (i) the diminution of the Participant’s title and/or responsibilities or (ii) the Participant being required to relocate more
than twenty-five (25) miles from the Participant’s then-existing office. 
 “IMAX LTIP” means this IMAX
Corporation Second Amended and Restated Long-Term Incentive Plan, as amended or restated from time to time. 
 “IMAX LTIP
Limit” means the maximum aggregate number of Common Shares that may be issued for all purposes under the IMAX LTIP as set forth in Section 5(a). 

“Incentive Stock Option” means an Option that is intended to comply with the requirements of Section 422 of the
Code or any successor provision thereto. 
 “Nonqualified Stock Option” means an Option that is not intended to or
fails to comply with the requirements of Section 422 of the Code or any successor provision thereto. 
 “NYSE”
means the New York Stock Exchange. 
 “Option” means an Incentive Stock Option or Nonqualified Stock Option granted
pursuant to Section 7. 
 “Other Award” means any form of Award (other than an Option, Performance Stock,
Performance Stock Unit, Cash Performance Unit, Restricted Share, Restricted Share Unit or Stock Appreciation Right) granted pursuant to Section 11. 

“Participant” means an Eligible Individual who has been granted an Award under the IMAX LTIP. 

“Performance Period” means the period established by the Committee and set forth in the applicable Award Document over
which Performance Targets are measured. 
 “Performance Stock” means a Target Amount of Common Shares granted
pursuant to Section 10(a). 
 “Performance Stock Unit” means a right to receive a Target Amount of Common
Shares granted pursuant to Section 10(a). 

  
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 “Performance Target” means the performance goals established by the
Committee, which may be from among the performance criteria provided in Section 6(g), and set forth in the applicable Award Document. 

“Permitted Transferees” means, in respect of Participants resident in a province or territory of Canada, a
“permitted assign” within the meaning of National Instrument 45-106 (Prospectus and Registration Exemptions) or any successor instrument thereto, and in respect of all other Participants,
(i) one or more trusts established in whole or in part for the benefit of one or more of a Participant’s family members and (ii) one or more entities which are Beneficially Owned in whole or in part by one or more of a
Participant’s family members. 
 “Person” means any person, entity or “group” within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, except that such term shall not include (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the
same proportions as their ownership of stock of the Company, or (v) a person or group as used in Rule 13d-1(b) under the Exchange Act. 

“Prior Plan” means the IMAX Corporation Stock Option Plan, as amended from time to time. 

“Restricted Share” means a Common Share granted or sold pursuant to Section 8(a). 

“Restricted Share Unit” means a right to receive one or more Common Shares (or cash, if applicable) in the future
granted pursuant to 
Section 8(b). 
 “Service Factor” means the Participant’s (i) attaining the
age of at least 55 and (ii) continuous service with the Company or any of its Subsidiaries and Affiliates for at least ten (10) years, or such other criteria that are deemed by the Committee to be an achievement of the Service Factor,
provided, however, that, in the case of a resignation, the Participant must provide the Company with a written notice of intent to resign at least six (6) months prior to the Participant’s final day of employment with the
Company. 
 “Stock Appreciation Right” means a right to receive all or some portion of the appreciation on Common
Shares granted pursuant to Section 9. 
 “Subsidiary” means any foreign or domestic corporation, limited
liability company, partnership or other entity of which fifty percent (50%) or more of the outstanding voting equity securities or voting power is Beneficially Owned directly or indirectly by the Company. For purposes of determining eligibility for
the grant of Incentive Stock Options under the IMAX LTIP, the term “Subsidiary” shall be defined in the manner required by Section 424(f) of the Code. 

“Substitute Award” means any Award granted upon assumption of, or in substitution or exchange for, outstanding
employee equity awards previously granted by a company or other entity acquired by the Company or with which the Company combines in connection with a corporate transaction pursuant to the terms of an equity compensation plan that was approved by
the shareholders of such company or other entity. 

  
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 “Target Amount” means the target number of Common Shares or target
cash value established by the Committee and set forth in the applicable Award Document. 
 (b)    Rules of
Construction: The masculine pronoun shall be deemed to include the feminine pronoun, and the singular form of a word shall be deemed to include the plural form, unless the context requires otherwise. Unless the text indicates otherwise,
references to sections are to sections of the IMAX LTIP. 
  

	3.	 Administration 

(a)    Committee: The IMAX LTIP shall be administered by the Committee, which shall have full power and authority,
subject to the express provisions hereof, to: 
 (i)    select the Participants from the Eligible
Individuals; 
 (ii)    grant Awards in accordance with the IMAX LTIP; 

(iii)    determine the number of Common Shares subject to each Award or the cash amount payable in
connection with an Award; 
 (iv)    determine the terms and conditions of each Award, including,
without limitation, those related to term, permissible methods of exercise, vesting, cancellation, forfeiture, payment, settlement, exercisability, Performance Periods, Performance Targets, and the effect or occurrence, if any, of a
Participant’s termination of employment, separation from service or leave of absence with the Company or any of its Affiliates or, subject to Section 6(d), a Change in Control of the Company; 

(v)    subject to Sections 15 and 16(e), amend the terms and conditions of an Award after the granting
thereof; 
 (vi)    specify and approve the provisions of the Award Documents delivered to Participants
in connection with their Awards; 
 (vii)    make factual determinations in connection with the
administration or interpretation of the IMAX LTIP; 
 (viii)    adopt, prescribe, establish, amend,
waive and rescind administrative regulations, rules and procedures relating to the IMAX LTIP; 

(ix)    employ such legal counsel, independent auditors and consultants as it deems desirable for the
administration of the IMAX LTIP and to rely upon any advice, opinion or computation received therefrom; 

(x)    vary the terms of Awards to take into account tax and securities laws (or change thereto) and other
regulatory requirements or to procure favorable tax treatment for Participants; 

  
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 (xi)    correct any defects, supply any omission or
reconcile any inconsistency in any Award Document or the IMAX LTIP; and 
 (xii)    make all other
determinations and take any other action desirable or necessary to interpret, construe or implement properly the provisions of the IMAX LTIP or any Award Document. 

(b)    IMAX LTIP Construction and Interpretation: The Committee shall have full power and authority, subject to the
express provisions hereof, to construe and interpret the IMAX LTIP and any Award Document delivered under the IMAX LTIP. 

(c)    Prohibited Actions: Notwithstanding the authority granted to the Committee pursuant to Sections 3(a) and
3(b), the Committee shall not have the authority, without obtaining shareholder approval, to: (i) reprice or cancel Options and Stock Appreciation Rights in violation of Section 6(h); (ii) amend Section 5 to increase the IMAX LTIP
Limit or any of the special limits listed therein; or grant Options or Stock Appreciation Rights with an exercise price that is less than 100% of the Fair Market Value of a Common Share on the date of grant in violation of Section 6(j). 

(d)    Determinations of Committee Final and Binding: All determinations by the Committee in carrying out and
administering the IMAX LTIP and in construing and interpreting the IMAX LTIP shall be made in the Committee’s sole discretion and shall be final, binding and conclusive for all purposes and upon all persons interested herein. 

(e)    Delegation of Authority: To the extent not prohibited by applicable laws, rules and regulations, the
Committee may, from time to time, delegate some or all of its authority under the IMAX LTIP to a subcommittee or subcommittees thereof or other persons or groups of persons as it deems necessary, appropriate or advisable under such conditions or
limitations as it may set at the time of such delegation or thereafter; provided, however, that the Committee may not delegate its authority: (i) to make Awards to individuals (A) who are subject on the date of the Award to
the reporting rules under Section 16(a) of the Exchange Act or (B) who are officers of the Company who are delegated authority by the Committee hereunder; or (ii) pursuant to Section 15. For purposes of the IMAX LTIP, reference
to the Committee shall be deemed to refer to any subcommittee, subcommittees, or other persons or groups of persons to whom the Committee delegates authority pursuant to this Section 3(e). 

(f)    Liability of Committee and its Delegates: Subject to applicable laws, rules and regulations: (i) no
member of the Board or Committee (or its delegates pursuant to Section 3(e)) shall be liable for any good faith action, omission or determination made in connection with the operation, administration or interpretation of the IMAX LTIP; and
(ii) the members of the Board or the Committee (and its delegates) shall be entitled to indemnification and reimbursement in accordance with applicable law in the manner provided in the Company’s
by-laws and any indemnification agreements as they may be amended from time to time. In the performance of its responsibilities with respect to the IMAX LTIP, the Committee shall be entitled to rely upon
information and/or advice furnished by the Company’s officers or employees, the Company’s accountants, the Company’s counsel and any other party the Committee deems necessary, and no member of the Committee shall be liable for any
action taken or not taken in reliance upon any such information and/or advice. 

  
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 (g)    Action by the Board: Anything in the IMAX LTIP to the
contrary notwithstanding, subject to applicable laws, rules and regulations, any authority or responsibility that, under the terms of the IMAX LTIP, may be exercised by the Committee may alternatively be exercised by the Board. 

 

	4.	 Eligibility 

(a)    Eligible Individuals: Awards may be granted to officers, employees, directors and consultants of the Company
or any of its Affiliates. The Committee shall have the authority to select the persons to whom Awards may be granted and to determine the type, number and terms of Awards to be granted to each such Participant. 

(b)    Grants to Participants: The Committee shall have no obligation to grant any Eligible Individual an Award or
to designate an Eligible Individual as a Participant solely by reason of such Eligible Individual having received a prior Award or having been previously designated as a Participant. The Committee may grant more than one Award to a Participant and
may designate an Eligible Individual as a Participant for overlapping periods of time. 
  

	5.	 Common Shares Subject to the IMAX LTIP 

(a)    IMAX LTIP Limit: Subject to adjustment in accordance with Section 13, the maximum aggregate number of
Common Shares that may be issued for all purposes under the IMAX LTIP shall be 17.7 million (17,700,000) Common Shares. All of the Common Shares subject to the IMAX LTIP Limit may be issued pursuant to Incentive Stock Options. 

(b)    Rules Applicable to Determining Common Shares Available for Issuance: The number of Common Shares remaining
available for issuance will be reduced by the number of Common Shares actually delivered upon settlement or payment of an Award; provided, however, that, notwithstanding the above, every one (1) Common Share issued in respect of a
Full-value Award will reduce the number of Common Shares that are available for issuance under the IMAX LTIP by 2.25 Common Shares. For purposes of determining the number of Common Shares that remain available for issuance under the IMAX LTIP: 

(i)    Common Shares that are tendered by a Participant or withheld by the Company to pay the exercise
price of an Award or to satisfy the Participant’s tax withholding obligations in connection with the exercise or settlement of an Award shall count against the IMAX LTIP Limit and shall not be made available for issuance or delivery under the
IMAX LTIP; 
 (ii)    The full number of Common Shares that were subject to a net-settled Option or a stock-settled Stock Appreciation Right (rather than the net number of Shares actually delivered upon exercise) shall count against the IMAX LTIP Limit and shall not be made available for
issuance or delivery under the IMAX LTIP; 

  
 8 

 (iii)    Common Shares repurchased on the open market
with the proceeds of an Option exercise shall count against the IMAX LTIP Limit and shall not be made available for issuance or delivery under the IMAX LTIP; and 

(iv)    Common Shares corresponding to Awards under the IMAX LTIP that are forfeited or cancelled or
otherwise expire for any reason without having been exercised or settled or that are settled through the issuance of consideration other than Common Shares (including, without limitation, cash) shall not be counted against the IMAX LTIP Limit and
shall again be available for the grant of Awards; provided, however, that this provision shall not be applicable with respect to (i) the cancellation of a Stock Appreciation Right granted in tandem with an Option upon the exercise
of the Option or (ii) the cancellation of an Option granted in tandem with a Stock Appreciation Right upon the exercise of the Stock Appreciation Right. 

(c)    Special Limits: Anything to the contrary in Section 5(a) above notwithstanding, but subject to
adjustment under Section 13, the following special limits shall apply to Common Shares available for Awards under the IMAX LTIP: 

(i)    the maximum number of Common Shares that may be subject to Options and Stock Appreciation Rights
granted to any Eligible Individual in any calendar year shall equal one million (1,000,000) Common Shares; and 

(ii)    the maximum value of Awards (other than those Awards set forth in Section 5(c)(i)) that may
be awarded to any Eligible Individual in any calendar year is five million dollars ($5,000,000) measured as of the date of grant (with respect to Awards denominated in cash) or two million (2,000,000) Common Shares measured as of the date of
grant (with respect to Awards denominated in Common Shares). 
 (d)    To the extent not prohibited by applicable laws,
rules and regulations, any Common Shares underlying Substitute Awards shall not be counted against the number of Common Shares remaining for issuance and shall not be subject to Section 5(c). 

 

	6.	 Awards in General 

(a)    Types of Awards; Exercise: Awards under the IMAX LTIP may consist of Options, Restricted Shares, Restricted
Share Units, Stock Appreciation Rights, Performance Stock, Performance Stock Units, Cash Performance Units and Other Awards. Any Award described in Sections 7 through 11 may be granted singly or in combination or tandem with any other Award, as
the Committee may determine. Subject to Section 6(g), Awards under the IMAX LTIP may be made in combination with, in replacement of, or as alternatives to awards or rights under any other compensation or benefit plan of the Company,
including the plan of any acquired entity. Subject to the provisions of the IMAX LTIP and the applicable Award Document, the Committee shall determine the permissible methods of exercise for any Award. 

  
 9 

 (b)    Terms Set Forth in Award Document: The terms and
conditions of each Award shall be set forth in an Award Document in a form approved by the Committee for such Award, which Award Document shall contain terms and conditions not inconsistent with the IMAX LTIP. Notwithstanding the foregoing, and
subject to applicable laws, rules and regulations and except to the extent otherwise not permitted under the IMAX LTIP (including without limitation pursuant to Sections 6(d) and 6(l)), the Committee may at any time following grant:
(i) accelerate the vesting, exercisability, lapse of restrictions, settlement or payment of any Award; (ii) eliminate the restrictions and conditions applicable to an Award; or (iii) extend the post-termination exercise period of an
outstanding Award (subject to the limitations of Section 409A of the Code). The terms of Awards may vary among Participants, and the IMAX LTIP does not impose upon the Committee any requirement to make Awards subject to uniform terms.
Accordingly, the terms of individual Award Documents may vary. 
 (c)    Termination of Employment: The Committee
shall specify at or after the time of grant of an Award the provisions governing the disposition of an Award in the event of a Participant’s termination of employment with the Company or any of its Affiliates for any reason, including the
Participant’s death, Disability or following the achievement of the Service Factor. Subject to applicable laws, rules and regulations and except to the extent otherwise not permitted under the IMAX LTIP (including without limitation pursuant to
Sections 6(d) and 6(l)), in connection with a Participant’s termination of employment, the Committee shall have the discretion to accelerate the vesting, exercisability or settlement of, eliminate the restrictions or conditions applicable to,
or extend the post-termination exercise period of an outstanding Award (subject to the limitations of Section 409A of the Code). Such provisions may be specified in the applicable Award Document or determined at a subsequent time. 

(d)    Change in Control: 

(i)    Subject to the terms and conditions as provided in an Award Document and other provisions of the
IMAX LTIP, including Section 6(d)(ii), the following provisions shall apply in the event of a Change in Control: 

(1)    To the extent the successor company (or a subsidiary or parent thereof) assumes the Award, with
appropriate adjustments pursuant to Section 13 to preserve the value of the Award, or provides a substitute for the Award on substantially the same terms and conditions, the existing vesting schedule will continue to apply. 

(2)    To the extent (x) the successor company (or a subsidiary or parent thereof) does not assume or
provide a substitute for an Award on substantially the same terms and conditions or (y) the successor company (or a subsidiary or parent thereof) assumes the Award as provided in Section 6(d)(i)(1) above and the Participant’s
employment or service relationship is terminated without Cause or with Good Reason within twenty-four (24) months following the Change in Control: 

(A)    any and all Options and Stock Appreciation Rights outstanding as of the effective date of the
Change in Control shall become immediately exercisable, and shall remain exercisable until the earlier of the expiration of their initial term or the second (2nd) anniversary of the
Participant’s termination of employment with the Company; 

  
 10 

 (B)    any restrictions imposed on Restricted Shares
and Restricted Share Units outstanding as of the effective date of the Change in Control shall lapse; 

(C)    the Performance Targets with respect to all Performance Units, Performance Stock and other
performance-based Awards granted pursuant to Sections 6(g) or 10 outstanding as of the effective date of the Change in Control shall be deemed to have been attained at the specified target level of performance; and 

(D)    the vesting of all Awards denominated in Common Shares outstanding as of the effective date of the
Change in Control shall be accelerated. 
 (ii)    Subject to the other terms of the IMAX LTIP and to
applicable laws, rules and regulations, the Board or the Committee shall, at any time prior to, coincident with or after the effective time of a Change in Control, take such actions as it may consider appropriate, including, without limitation:
(A) provide for the acceleration of any vesting or exercisability of an Award, (B) provide for the adjustment of any performance conditions as the Committee deems necessary or appropriate to reflect the Change in Control or for the deemed
attainment of performance conditions relating to an Award, (C) provide for the lapse of restrictions relating to an Award, (D) provide for the assumption, substitution, replacement or continuation of any Award by a successor or surviving
corporation (or a parent or subsidiary thereof) with cash, securities, rights or other property to be paid or issued, as the case may be, by the successor or surviving corporation (or a parent or subsidiary thereof), (E) provide that an Award shall
terminate or expire unless exercised or settled in full on or before a date fixed by the Committee, or (F) terminate or cancel any outstanding Award in exchange for a cash payment (including, if as of the date of the Change in Control, the
Committee determines that no amount would have been realized upon the exercise of the Award, then the Award may be cancelled by the Company without payment of consideration). Notwithstanding the foregoing or anything herein to the contrary, neither
the Board nor the Committee shall take any of the actions described in clauses (A), (B), (C) or (F) of the preceding sentence in respect of an Award solely due to the occurrence of a Change in Control, except to the extent that the successor
company in the Change in Control (or a subsidiary or parent thereof) does not assume or provide a substitute for the Award on substantially the same terms and conditions. 

(iii)    Notwithstanding any other provision of the IMAX LTIP or any Award Document, the provisions of
this Section 6(d) may not be terminated, amended, or modified following a Change in Control in a manner that would adversely affect a Participant’s rights with respect to an outstanding Award without the prior written consent of the
Participant. 
 (iv)    Notwithstanding any other provision of the IMAX LTIP or any Award Document, the
payment or settlement of any Award that is considered to provide for a deferral of compensation subject to Section 409A of the Code shall not accelerate upon a Change in Control unless such event also constitutes a “change in
ownership,” “change in effective control,” or “change in the ownership of a substantial portion of the Company’s assets” as defined under Section 409A of the Code. 

  
 11 

 (e)    Dividends and Dividend Equivalents: The Committee may
provide Participants with the right to receive dividends or payments equivalent to dividends or interest with respect to an outstanding Award to recognize the Participant’s services in the year, which payments can either be paid currently
or deemed to have been reinvested in Common Shares, and can be made in Common Shares, cash or a combination thereof, as the Committee shall determine; provided, however, that: (i) dividends or dividend equivalents with respect to
Performance Stock and Performance Stock Units shall be accumulated until, and shall be paid only to the extent that, such Award is earned and vested based on the satisfaction of the applicable performance measures and time-based vesting
restrictions, (ii) dividends or dividend equivalents with respect to Awards that are subject to time-based vesting restrictions shall be accumulated until, and shall be paid only to the extent that, such Awards vest in accordance with their
terms, and (iii) the terms of any reinvestment of dividends must comply with all applicable laws, rules and regulations, including, without limitation, Section 409A of the Code. Notwithstanding the foregoing, no dividends or dividend
equivalents shall be paid with respect to Cash Performance Units, Options or Stock Appreciation Rights. 

(f)    Rights of a Shareholder: A Participant shall have no rights as a shareholder with respect to Common Shares
covered by an Award (including voting rights) until the date the Participant or his nominee becomes the holder of record of such Common Shares. No adjustment shall be made for dividends or other rights for which the record date is prior to such
date, except as provided in Section 13. 
 (g)    Performance-Based Awards: 

(i)    The Committee may determine whether any Award under the IMAX LTIP is intended to be
“performance-based compensation”. Any such Awards designated to be “performance-based compensation” shall be conditioned on the achievement of one or more Performance Targets. The Performance Targets may include one or more of
the following performance criteria: net income; cash flow or cash flow on investment; operating cash flow; pre-tax or post-tax profit levels or earnings; profit in
excess of cost of capital; operating earnings; return on investment; free cash flow; free cash flow per share; earnings per share; return on assets; return on net assets; return on equity; return on capital; return on invested capital; return on
sales; sales growth; growth in managed assets; operating margin; operating income; total shareholder return or stock price appreciation; EBITDA; EBITA; revenue; net revenues; market share, market penetration; productivity improvements; inventory
turnover measurements; reduction of losses, loss ratios or expense ratios; reduction in fixed costs; operating cost management; cost of capital; and debt reduction. 

(ii)    The Performance Targets shall be determined in accordance with generally accepted accounting
principles (subject to adjustments and modifications approved by the Committee in advance) consistently applied on a business unit, divisional, Subsidiary or consolidated basis or any combination thereof. 

  
 12 

 (iii)    The Performance Targets may be described in
terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a Subsidiary, business unit, or region and may be measured on an absolute or cumulative basis or on the basis of percentage of
improvement over time, and may be measured in terms of Company performance (or performance of the applicable Subsidiary, business unit, or region) or measured relative to selected peer companies or a market index. 

(iv)    The Participants will be designated, and the applicable Performance Targets will be established,
by the Committee within ninety (90) days following the commencement of the applicable Performance Period. Each Participant will be assigned a Target Amount payable if Performance Targets are achieved. Any payment of an Award granted with
Performance Targets shall be conditioned on the written certification of the Committee in each case that the Performance Targets and any other material conditions were satisfied. The Committee may determine, at the time of grant, that if performance
exceeds the specified Performance Targets, the Award may be settled with payment greater than the Target Amount, but in no event may such payment exceed the limits set forth in Section 5(c). The Committee retains the right to reduce any Award
notwithstanding the attainment of the Performance Targets. 
 (v)    The Committee may also grant Awards
not intended to qualify as “performance-based compensation”. With respect to such Awards, the Committee may establish Performance Targets based on any criteria as it deems appropriate. 

(h)    Repricing of Options and Stock Appreciation Rights: Except in connection with a corporate transaction
involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split up, spin off, combination, or exchange of Common Shares), the terms of
outstanding Awards may not be amended, without shareholder approval, to reduce the exercise price of outstanding Options or Stock Appreciation Rights, or to cancel outstanding Options or Stock Appreciation Rights in exchange for (i) cash or
other property, (ii) Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original Options or Stock Appreciation Rights or (iii) other Awards. 

(i)    Recoupment: Notwithstanding anything in the IMAX LTIP to the contrary, all Awards granted under the IMAX
LTIP, any payments made under the IMAX LTIP and any gains realized upon exercise or settlement of an Award shall be subject to clawback or recoupment as permitted or mandated by applicable law, rules, regulations or any Company policy as enacted,
adopted or modified from time to time. 
 (j)    Minimum Grant or Exercise Price: In no event shall the exercise
price per Common Share of an Option or the grant price per Common Share of a Stock Appreciation Right be less than one hundred percent (100%) of the Fair Market Value of a Common Share on the date of grant; provided, however, that the
exercise price of a Substitute Award granted as an Option shall be determined in accordance with Section 409A of the Code and may be less than one hundred percent (100%) of the Fair Market Value on the date of grant. 

  
 13 

 (k)    Term of Options and Stock Appreciation Rights: An Option
or Stock Appreciation Right shall be effective for such term as shall be determined by the Committee and as set forth in the Award Document relating to such Award. The Committee may extend the term of an Option or Stock Appreciation Right after the
time of grant; provided, however, that the term of an Option or Stock Appreciation Right may in no event extend beyond the tenth (10th) anniversary of the date of grant of such
Award. 
 (l)    Minimum Vesting Period: Notwithstanding anything herein to the contrary and subject to Sections
6(c) and (d) hereof, no Awards granted after the Effective Date may vest in full prior to the first anniversary of the date of grant, except in the case of a Substitute Award made in replacement of an Award that is already fully vested or
scheduled to vest in full in less than one year from the date of grant of such Substitute Award. Notwithstanding the foregoing, for Awards other than Awards that are (i) not Full-value Awards and were granted prior to the Effective Date or
(ii) accelerated based on satisfaction of the Service Factor, Awards covering an aggregate of no more than 5% of the total number of Common Shares authorized for issuance under the Plan pursuant to Section 5(a) may be granted pursuant to
Awards that provide for vesting in full less than one year following the date of grant. 
  

	7.	 Terms and Conditions of Options 

(a)    General: The Committee, in its discretion, may grant Options to Eligible Individuals and shall determine
whether such Options shall be Incentive Stock Options or Nonqualified Stock Options. Each Option shall be evidenced by an Award Document that shall expressly identify the Option as an Incentive Stock Option or Nonqualified Stock Option, and be in
such form and contain such provisions as the Committee shall from time to time deem appropriate. 
 (b)    Payment of
Exercise Price: Subject to the provisions of the applicable Award Document and Company policy in effect from time to time, the exercise price of an Option may be paid (i) in cash or cash equivalents, (ii) by actual delivery or
attestation to ownership of freely transferable Common Shares already owned by the person exercising the Option, (iii) by a combination of cash and Common Shares equal in value to the exercise price, (iv) through net share settlement or
similar procedure involving the withholding of Common Shares subject to the Option with a value equal to the exercise price or (v) by such other means as the Committee may authorize. In accordance with the rules and procedures authorized by the
Committee for this purpose, the Option may also be exercised through a “cashless exercise” procedure authorized by the Committee from time to time that permits Participants to exercise Options by delivering irrevocable instructions to a
broker to deliver promptly to the Company the amount of sale or loan proceeds necessary to pay the exercise price and the amount of any required tax or other withholding obligations or such other procedures determined by the Company from time to
time. 

  
 14 

 (c)    Incentive Stock Options: The exercise price per Common
Share of an Incentive Stock Option shall be fixed by the Committee at the time of grant or shall be determined by a method specified by the Committee at the time of grant, but in no event shall the exercise price of an Incentive Stock Option be less
than one hundred percent (100%) of the Fair Market Value of a Common Share on the date of grant. No Incentive Stock Option may be issued pursuant to the IMAX LTIP to any individual who, at the time the Incentive Stock Option is granted, owns stock
possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, unless (i) the exercise price determined as of the date of grant is at least one hundred ten percent
(110%) of the Fair Market Value on the date of grant of the Common Shares subject to such Incentive Stock Option and (ii) the Incentive Stock Option is not exercisable more than five (5) years from the date of grant thereof. No Participant
shall be granted any Incentive Stock Option which would result in such Participant receiving a grant of Incentive Stock Options that would have an aggregate Fair Market Value in excess of one hundred thousand dollars ($100,000), determined as of the
time of grant, that would be exercisable for the first time by such Participant during any calendar year. No Incentive Stock Option may be granted under the IMAX LTIP after the tenth anniversary of the Effective Date. The terms of any Incentive
Stock Option granted under the IMAX LTIP shall comply in all respects with the provisions of Section 422 of the Code, or any successor provision thereto, as amended from time to time. 

 

	8.	 Terms and Conditions of Restricted Shares and Restricted Share Units 

(a)    Restricted Shares: The Committee, in its discretion, may grant or sell Restricted Shares to Eligible
Individuals. An Award of Restricted Shares shall consist of one or more Common Shares granted or sold to an Eligible Individual, and shall be subject to the terms, conditions and restrictions set forth in the IMAX LTIP and established by the
Committee in connection with the Award and specified in the applicable Award Document. Restricted Shares may, among other things, be subject to restrictions on transferability, vesting requirements or other specified circumstances under which it may
be canceled. 
 (b)    Restricted Share Units: The Committee, in its discretion, may grant Restricted Share Units
to Eligible Individuals. A Restricted Share Unit shall entitle a Participant to receive, subject to the terms, conditions and restrictions set forth in the IMAX LTIP and the applicable Award Document, one or more Common Shares. Restricted Share
Units may, among other things, be subject to restrictions on transferability, vesting requirements or other specified circumstances under which they may be canceled. If and when the cancellation provisions lapse, the Restricted Share Units shall
become Common Shares owned by the applicable Participant or, at the sole discretion of the Committee, cash, or a combination of cash and Common Shares, with a value equal to the Fair Market Value of the Common Shares at the time of payment. 

 

	9.	 Stock Appreciation Rights 

The Committee, in its discretion, may grant Stock Appreciation Rights to Eligible Individuals. The Committee may grant Stock Appreciation
Rights in tandem with Options or as stand-alone Awards. Each Stock Appreciation Right shall be subject to the terms, conditions and restrictions set forth in the IMAX LTIP and established by the Committee in connection with the Award and specified
in the applicable Award Document. A Stock Appreciation Right shall entitle a Participant to receive, upon satisfaction of the conditions to payment specified in the applicable Award Document, an amount equal to the excess, if any, of the Fair Market
Value of a Common Share on the exercise date of the number of Common Shares for which the Stock Appreciation Right is exercised over the per Common Share grant price for such Stock Appreciation Right specified in the applicable Award Document.
Payments to a Participant upon exercise of a Stock Appreciation Right may be made in cash or Common Shares, as determined by the Committee on or following the date of grant. 

  
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	10.	 Terms and Conditions of Performance Stock, Performance Stock Units and Cash Performance Units

 (a)    Performance Stock or Performance Stock Units: The Committee may grant Performance
Stock or Performance Stock Units to Eligible Individuals. An Award of Performance Stock or Performance Stock Units shall consist of, or represent a right to receive, a Target Amount of Common Shares granted to an Eligible Individual based on the
achievement of Performance Targets over the applicable Performance Period, and shall be subject to the terms, conditions and restrictions set forth in the IMAX LTIP and established by the Committee in connection with the Award and specified in the
applicable Award Document. Payments to a Participant in settlement of an Award of Performance Stock or Performance Stock Units may be made in cash or Common Shares, as determined by the Committee on or following the date of grant. 

(b)    Cash Performance Units: The Committee, in its discretion, may grant Cash Performance Units to Eligible
Individuals. A Cash Performance Unit shall entitle a Participant to receive, subject to the terms, conditions and restrictions set forth in the IMAX LTIP and established by the Committee in connection with the Award and specified in the applicable
Award Document, a Target Amount of cash based upon the achievement of Performance Targets over the applicable Performance Period. Payments to a Participant in settlement of an Award of Cash Performance Units may be made in cash or Common Shares, as
determined by the Committee on or following the date of the grant. 
  

	11.	 Other Awards 

The Committee shall have the authority to specify the terms and provisions of other forms of equity-based or equity-related Awards not
described above that the Committee determines to be consistent with the purpose of the IMAX LTIP and the interests of the Company, which Awards may provide for cash payments based in whole or in part on the value or future value of Common Shares,
for the acquisition or future acquisition of Common Shares, or any combination thereof. 
  

	12.	 Certain Restrictions 

(a)    Transfers: No Award shall be transferable other than pursuant to a beneficiary designation approved by the
Company, by last will and testament or by the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a domestic relations order, as the case may be; provided, however, that the Committee may,
subject to applicable laws, rules and regulations and such terms and conditions as it shall specify, permit the transfer of an Award, other than an Incentive Stock Option, for no consideration to a Permitted Transferee. Any Award transferred to a
Permitted Transferee shall be further transferable only by last will and testament or the laws of descent and distribution or, for no consideration, to another Permitted Transferee of the Participant. 

(b)    Award Exercisable Only by Participant: During the lifetime of a Participant, an Award shall be exercisable
only by the Participant or by a Permitted Transferee to whom such Award has been transferred in accordance with Section 12(a) above. The grant of an Award shall impose no obligation on a Participant to exercise or settle the Award. 

  
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	13.	 Recapitalization or Reorganization 

(a)    Authority of the Company and Shareholders: The existence of the IMAX LTIP, the Award Documents and the
Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital
structure or business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common
Shares or the rights thereof or which are convertible into or exchangeable for Common Shares, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise. 
 (b)    Change in Capitalization: Notwithstanding
any provision of the IMAX LTIP or any Award Document, the number and kind of Common Shares authorized for issuance under Section 5, including the maximum number of Common Shares available under the special limits provided for in
Section 5(c), shall be equitably adjusted in the manner deemed necessary by the Committee in the event of a stock split, reverse stock split, stock dividend, recapitalization, reorganization, partial or complete liquidation, reclassification,
merger, consolidation, separation, extraordinary stock or cash dividend, split-up, spin-off, combination, exchange of Common Shares, warrants or rights offering to
purchase Common Shares at a price substantially below Fair Market Value, or any other corporate event or distribution of stock or property of the Company affecting the Common Shares in order to preserve, but not increase, the benefits or potential
benefits intended to be made available under the IMAX LTIP. In addition, upon the occurrence of any of the foregoing events, the number and kind of Common Shares subject to any outstanding Award and the exercise price per Common Share (or the
grant price per Common Share, as the case may be), if any, under any outstanding Award shall be equitably adjusted in the manner deemed necessary by the Committee (including by payment of cash to a Participant) in order to preserve the benefits or
potential benefits intended to be made available to Participants. Unless otherwise determined by the Committee, such adjusted Awards shall be subject to the same restrictions and vesting or settlement schedule to which the underlying Award is
subject (subject to the limitations of Section 409A of the Code). 
  

	14.	 Term of the IMAX LTIP 

Unless earlier terminated pursuant to Section 15, the IMAX LTIP shall terminate on the tenth (10th) anniversary of the Effective Date, except with respect to Awards then outstanding. No Awards may be granted under the IMAX LTIP after the tenth
(10th) anniversary of the Effective Date. 

  
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	15.	 Amendment and Termination 

Subject to applicable laws, rules and regulations, the Board may at any time terminate or, from time to time, amend, modify or suspend the
IMAX LTIP; provided, however, that no termination, amendment, modification or suspension (i) will be effective without the approval of the shareholders of the Company if such approval is required under applicable laws, rules and
regulations, including the rules of the NYSE and such other securities exchanges, if any, as may be designated by the Board from time to time, and (ii) shall materially and adversely alter or impair the rights of a Participant in any Award
previously made under the IMAX LTIP without the consent of the holder thereof. Notwithstanding the foregoing, the Board shall have broad authority to amend the IMAX LTIP or any Award under the IMAX LTIP without the consent of a Participant to the
extent it deems necessary or desirable (a) to comply with, or take into account changes in, or interpretations of, applicable tax laws, securities laws, employment laws, accounting rules and other applicable laws, rules and regulations,
(b) to take into account unusual or nonrecurring events or market conditions (including, without limitation, the events described in Section 13(b)) or (c) to take into account significant acquisitions or dispositions of assets or
other property by the Company. 
  

	16.	 Miscellaneous 

(a)    Tax Withholding: The Company or an Affiliate, as appropriate, may require any individual entitled to receive
a payment of an Award to remit to the Company, prior to payment, an amount sufficient to satisfy any applicable tax withholding requirements. In the case of an Award payable in Common Shares, the Company or an Affiliate, as appropriate, may permit
or require a Participant to satisfy, in whole or in part, such obligation to remit taxes by directing the Company to withhold Common Shares that would otherwise be received by such individual or to repurchase Common Shares that were issued to the
Participant to satisfy the tax withholding obligations in accordance with all applicable laws and pursuant to such rules as the Committee may establish from time to time, up to the maximum rate. The Company or an Affiliate, as appropriate, shall
also have the right to deduct from all cash payments made to a Participant (whether or not such payment is made in connection with an Award) any applicable taxes required to be withheld with respect to such payments. 

(b)    No Right to Awards or Employment: No person shall have any claim or right to receive Awards under the IMAX
LTIP. Neither the IMAX LTIP, the grant of Awards under the IMAX LTIP nor any action taken or omitted to be taken under the IMAX LTIP shall be deemed to create or confer on any Eligible Individual any right to be retained in the employ of the Company
or any of its Affiliates, or to interfere with or to limit in any way the right of the Company or any of its Affiliates to terminate the employment of such Eligible Individual at any time. No Award shall constitute salary, recurrent compensation or
contractual compensation for the year of grant, any later year or any other period of time. Payments received by a Participant under any Award made pursuant to the IMAX LTIP shall not be included in, nor have any effect on, the determination of
employment-related rights or benefits under any other employee benefit plan or similar arrangement provided by the Company and its Affiliates, unless otherwise specifically provided for under the terms of such plan or arrangement or by the
Committee. 

  
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 (c)    Securities Law Restrictions: An Award may not be exercised
or settled, and no Common Shares may be issued in connection with an Award, unless the issuance of such shares (i) has been registered under the Securities Act of 1933, as amended, (ii) has qualified under applicable state “blue
sky” laws (or the Company has determined that an exemption from registration and from qualification under such state “blue sky” laws is available) and (iii) complies with all applicable foreign securities laws. The Committee may
require each Participant purchasing or acquiring Common Shares pursuant to an Award under the IMAX LTIP to represent to and agree with the Company in writing that such Eligible Individual is acquiring the Common Shares for investment purposes and
not with a view to the distribution thereof. All certificates for Common Shares delivered under the IMAX LTIP shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and
other requirements of the SEC, any exchange upon which the Common Shares are then listed, and any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such
restrictions. 
 (d)    Section 16 of the Exchange Act: Notwithstanding anything contained in the IMAX LTIP or
any Award Document under the IMAX LTIP to the contrary, if the consummation of any transaction under the IMAX LTIP, or the taking of any action by the Committee in connection with a Change in Control of the Company, would result in the possible
imposition of liability on a Participant pursuant to Section 16(b) of the Exchange Act, the Committee shall have the right, in its discretion, but shall not be obligated, to defer such transaction or the effectiveness of such action to the
extent necessary to avoid such liability, but in no event for a period longer than 180 days. 
 (e)    Section 409A
of the Code: To the extent that the Committee determines that any Award granted under the IMAX LTIP is subject to Section 409A of the Code, the Award Document evidencing such Award shall incorporate the terms and conditions required by
Section 409A of the Code. To the extent applicable, the IMAX LTIP and Award Documents shall be interpreted in accordance with Section 409A of the Code and interpretive guidance issued thereunder. Notwithstanding any contrary provision in
the IMAX LTIP or an Award Document, if the Committee determines that any provision of the IMAX LTIP or an Award Document contravenes any regulations or guidance promulgated under Section 409A of the Code or would cause an Award to be subject to
additional taxes, accelerated taxation, interest and/or penalties under Section 409A of the Code, the Committee may modify or amend such provision of the IMAX LTIP or Award Document without consent of the Participant in any manner the Committee
deems reasonable or necessary. In making such modifications the Committee shall attempt, but shall not be obligated, to maintain, to the maximum extent practicable, the original intent of the applicable provision without contravening the provisions
of Section 409A of the Code. Moreover, any discretionary authority that the Committee may have pursuant to the IMAX LTIP shall not be applicable to an Award that is subject to Section 409A of the Code to the extent such discretionary
authority would contravene Section 409A of the Code. 
 (f)    Awards to Individuals Subject to Laws of a
Jurisdiction Outside of the United States: To the extent that Awards under the IMAX LTIP are awarded to Eligible Individuals who are domiciled or resident outside of the United States or to persons who are domiciled or resident in the United
States but who are subject to the tax laws of a jurisdiction outside of the United States, the Committee may adjust the terms of the Awards granted hereunder to such person (i) to comply with the laws, rules and regulations of such jurisdiction
and (ii) to permit the grant of the Award not to be a taxable event to the Participant. The authority granted under the previous sentence shall include the discretion for the Committee to adopt, on behalf of the Company, one or more sub-plans applicable to separate classes of Eligible Individuals who are subject to the laws of jurisdictions outside of the United States. 

(g)    References to Termination of Employment: References to “termination of employment” shall also mean
termination of any other service relationship of the Participant with the Company, as applicable. 

  
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 (h)    No Limitation on Corporate Actions: Nothing contained in
the IMAX LTIP shall be construed to prevent the Company or any Affiliate from taking any corporate action, whether or not such action would have an adverse effect on any Awards made under the IMAX LTIP. No Participant, beneficiary or other person
shall have any claim against the Company or any Affiliate as a result of any such action. 
 (i)    Unfunded
Plan: The IMAX LTIP is intended to constitute an unfunded plan for incentive compensation. Prior to the issuance of Common Shares, cash or other form of payment in connection with an Award, nothing contained herein shall give any Participant any
rights that are greater than those of a general unsecured creditor of the Company. 
 (j)    Successors: All
obligations of the Company under the IMAX LTIP with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation,
or otherwise, of all or substantially all of the business and/or assets of the Company. 
 (k)    Application of
Funds: The proceeds received by the Company from the sale of Common Shares pursuant to Awards will be used for general corporate purposes. 

(l)    Satisfaction of Obligations: Subject to applicable laws, rules and regulations, the Company may apply any
cash, Common Shares, securities or other consideration received upon exercise of settlement of an Award to any obligations a Participant owes to the Company and its Affiliates in connection with the IMAX LTIP or otherwise. 

(m)    Award Document: In the event of any conflict or inconsistency between the IMAX LTIP and any Award Document,
the IMAX LTIP shall govern and the Award Document shall be interpreted to minimize or eliminate any such conflict or inconsistency. 

(n)    Headings: The headings of Sections herein are included solely for convenience of reference and shall not
affect the meaning of any of the provisions of the IMAX LTIP. 
 (o)    Severability: If any provision of this
IMAX LTIP is held unenforceable, the remainder of the IMAX LTIP shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the IMAX LTIP.

 (p)    Governing Law: Except as to matters of federal law, the IMAX LTIP and all actions taken thereunder
shall be governed by and construed in accordance with the laws of the State of New York. 

  
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