Document:

Form of Employment Agreement with Devine, Clanachan, Moir, Schroeder and Walton

 Exhibit 10(b) 
 [CANADIAN EXECUTIVE – NON-CEO] 
 EMPLOYMENT AGREEMENT 
 Between 
 THE TDL GROUP CORP. 
 And 
 TIM HORTONS INC. 
 And 
  

 This Agreement is made and entered into as of December 5, 2006, by and between The TDL Group Corp., an Ontario corporation (the
“EMPLOYER”), TIM HORTONS INC., a Delaware corporation (“THI”) and                     , an individual (the
“EXECUTIVE”), who are the parties to this Agreement. 
 RECITALS 
 (1) Certain subsidiaries of THI, including the EMPLOYER, are engaged in the business of owning, operating and franchising Tim Hortons retail outlets and
carrying on ancillary activities incident thereto (the “Business”). 
 (2) The EXECUTIVE possesses unique skills, knowledge and
experience relating to the Business. 
 (3) The EXECUTIVE is currently employed by the EMPLOYER, an indirect, wholly-owned subsidiary of THI,
and desires to continue to be employed by the EMPLOYER. 
 (4) EMPLOYER desires to be assured of the continued services of the EXECUTIVE and
to afford him/her the job security this Agreement provides without, however, increasing the compensation s/he would otherwise obtain were it not for the occurrence of events foreseen by this Agreement, and the EXECUTIVE desires to be assured that,
in the event of a substantial change in the control of THI, the terms, conditions and environment of his/her employment will not be unreasonably affected. 

 (5) Except as described below, this Agreement is intended to be in addition to any other agreements the
parties may have entered into prior to the date hereof, or may enter into prior to a CHANGE IN CONTROL as defined herein, regarding the EXECUTIVE’S employment. 
 (6) THI and EMPLOYER desire to be assured of the objectivity of the EXECUTIVE in evaluating a potential offer, the effect of which would be a change of control of THI, and advising whether or not s/he believes a
potential change of control is in the best interests of THI and its shareholders. THI and EMPLOYER further desire to be assured of the dedication of the EXECUTIVE to maximizing the value to be received by the shareholders of THI in the circumstances
of negotiating or otherwise responding to a proposed change of control, and to be assured of the continuity of services of the EXECUTIVE during such time as a proposed change of control is under negotiation or otherwise pending. 
 (7) The EXECUTIVE entered into an Employment Agreement with Wendy’s International, Inc. (“Wendy’s”) providing for certain rights and
benefits upon a change in control of Wendy’s (“Prior Agreement”). EXECUTIVE understands, acknowledges, and agrees that this Agreement is made and entered into by THI and EMPLOYER as a replacement of and to supersede the Prior
Agreement, in its entirety, as further described in Section 18 hereof. 
 (8) THI is a party to this Agreement for purposes of the
provisions of Sections 3, 4, 5, 6, 8 and 10 through 18 hereof. 
 In consideration of their mutual covenants expressed herein and for other
consideration described herein and as otherwise given by the parties, the parties, intending to be legally bound hereby, agree as follows: 
 Section 1. EXECUTIVE’S Rights to Continued Employment in the event of a CHANGE IN CONTROL of THI. 
 For purposes
of this Agreement a “CHANGE IN CONTROL” shall mean the occurrence of: 
 (a) An acquisition (other than directly from THI) of any
common stock or other voting securities of THI entitled to vote generally for the election of directors (the “Voting Securities”) by any “Person” (as the term “person” is used for purposes of Section 13(d) or 14(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent
(30%) or more of the then outstanding shares of THI common stock or the combined voting power of THI’s then outstanding Voting Securities; provided, however, in determining whether a CHANGE IN CONTROL has occurred, Voting
Securities which are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not constitute 

  

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an acquisition which would cause a CHANGE IN CONTROL. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan
(or a trust forming a part thereof) for the benefit of employees of (A) THI or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly,
by THI (for purposes of this definition, a “Subsidiary”), (ii) THI or its Subsidiaries, or (iii) any Person in connection with a “Non-Control Transaction” (as hereinafter defined); 
 (b) The individuals who, as of December 5, 2006, are members of the Board of THI (the “Incumbent Board”), cease for any reason to
constitute at least seventy percent (70%) of the members of the Board; provided, however, that if the election, or nomination for election by THI common stockholders, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board
if such individual initially assumed office as a result of either an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement
intended to avoid or settle any Proxy Contest; or 
 (c) The consummation of: 
 (i) A merger, consolidation or reorganization with or into THI or in which securities of THI are issued, unless such merger, consolidation
or reorganization is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean a merger, consolidation or reorganization with or into THI or in which securities of THI are issued where: 
 (A) the stockholders of THI, immediately before such merger, consolidation or reorganization, own directly or indirectly immediately
following such merger, consolidation or reorganization, at least seventy percent (70%) of the combined voting power of the outstanding voting securities of the corporation resulting from such merger or consolidation or reorganization (the
“Surviving THI”) in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation or reorganization, 
 (B) the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger,
consolidation or reorganization constitute at least two-thirds of the members of the board of directors of the Surviving THI, or a corporation beneficially directly or indirectly owning a majority of the Voting Securities of the Surviving THI, and

  

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 (C) no Person other than (i) THI, (ii) any Subsidiary, (iii) any employee
benefit plan (or any trust forming a part thereof) that, immediately prior to such merger, consolidation or reorganization, was for the benefit of employees of THI or any Subsidiary, or (iv) any Person who, immediately prior to such merger,
consolidation or reorganization had Beneficial Ownership of thirty percent (30%) or more of the then outstanding Voting Securities or common stock of THI, has Beneficial Ownership of thirty percent (30%) or more of the combined voting
power of the Surviving THI then outstanding voting securities or its common stock; 
 (ii) A complete liquidation or
dissolution of THI; or 
 (iii) The sale or other disposition of all or substantially all of the assets of THI to any Person
(other than a transfer to a Subsidiary). 
 Notwithstanding the foregoing, a CHANGE IN CONTROL shall not be deemed to occur solely because
any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding common stock or Voting Securities as a result of the acquisition of common stock or Voting Securities by THI which,
by reducing the number of shares of common stock or Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided that if a CHANGE IN CONTROL would occur (but for the operation of
this sentence) as a result of the acquisition of common stock or Voting Securities by THI, and after such share acquisition by THI, the Subject Person becomes the Beneficial Owner of any additional common stock or Voting Securities which increases
the percentage of the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a CHANGE IN CONTROL shall occur. 
 If the EXECUTIVE’S employment is terminated by the EMPLOYER without CAUSE prior to the date of a CHANGE IN CONTROL but the EXECUTIVE reasonably demonstrates that the termination (A) was at the request of a third party who has
indicated an intention or taken steps reasonably calculated to effect a CHANGE IN CONTROL or (B) otherwise arose in connection with, or in anticipation of, a CHANGE IN CONTROL which has been threatened or proposed, such termination shall be
deemed to have occurred after a CHANGE IN CONTROL for purposes of this Agreement provided a CHANGE IN CONTROL shall actually have occurred. 
 1.1 From and after the date of occurrence of a CHANGE IN CONTROL, the EMPLOYER shall cause the EXECUTIVE to be employed, and the EXECUTIVE shall accept employment, with the duties, nature and place of such employment as described in
Section 2 of this Agreement. Solely for purposes of this Agreement, the term of such employment, referred to hereinafter as the “EMPLOYMENT TERM,” shall commence on the date when the CHANGE IN CONTROL shall have occurred and shall end
on the earlier of: 
  

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 (a) the second anniversary of the first to occur of: 
 (i) the date when the occurrence of an event described in subparagraph (a) of Section 1 hereof shall be disclosed in a Schedule 13D or other
such similar or successor form promulgated by the Securities and Exchange Commission or Ontario Securities Commission, filed with the Securities and Exchange Commission of Washington, D.C. or the Ontario Securities Commission in Toronto, Ontario,
Canada, and the duplicate of which is actually received by THI, or 
 (ii) the date on which a transaction described in subparagraph
(c) of Section 1 of this Agreement (other than a Non-Control Transaction) shall be consummated, or 
 (iii) the first date on which
at least thirty percent (30%) of the members of the Board of Directors of THI are not INCUMBENT DIRECTORS; or 
 (b) the date when the
EMPLOYMENT TERM shall be terminated by the EMPLOYER for CAUSE or by the EXECUTIVE without GOOD REASON (as such terms are defined in Section 4 of this Agreement); or 
 (c) the death of the EXECUTIVE. 
 Section 2. Duties, Nature and Place of Employment. During the
EMPLOYMENT TERM, the EXECUTIVE shall provide the EMPLOYER with such executive, financial, administrative, and consulting services in managing and directing the EMPLOYER’S business, which includes the provision of services on behalf of the
EMPLOYER to other THI subsidiaries in respect of the Business, as may be required by the EXECUTIVE’S job description, as attached hereto, or as amended by the agreement of the parties hereafter, or reasonably requested and directed from time to
time by action of the EMPLOYER’S Board of Directors. The EXECUTIVE shall at all times faithfully, industriously and to the best of his/her ability and talent perform all of the duties that may be required or requested of him/her pursuant to the
express terms and conditions of this Agreement. Such duties shall be performed in Oakville, Ontario and, on a periodic basis, at such other place or places as the interests, needs, business and opportunities of EMPLOYER, or THI’s other
subsidiaries, shall reasonably require. 
 Section 3. Remuneration during the EMPLOYMENT TERM. During the EMPLOYMENT TERM, the
EXECUTIVE shall receive from the EMPLOYER, the salary, benefits and perquisites being paid to or afforded him immediately prior to the date of occurrence of the CHANGE IN CONTROL, subject to annual review in the 

  

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normal course of business as described in subsections 3.1 herein. Such salary shall be paid to the EXECUTIVE on the same days of each month as the EMPLOYER
pays its other employees. The EXECUTIVE shall also be eligible to participate in an annual bonus plan, not less favourable than such plan that EXECUTIVE was eligible for immediately prior to the date of occurrence of the CHANGE IN CONTROL. The
EXECUTIVE shall also be entitled to all rights afforded him/her under the terms of any outstanding stock options granted him/her by THI and all incentive compensation and deferred compensation programs maintained by the EMPLOYER in which the
EXECUTIVE was entitled to participate immediately preceding the CHANGE IN CONTROL, or successors to such programs. 
 3.1 During the
EMPLOYMENT TERM, the THI Board of Directors, or a duly authorized committee thereof, with input from the Chief Executive Officer, shall review annually the performance of the EXECUTIVE, which shall be reported to THI by the EMPLOYER, the results of
operations and financial condition of THI, together with prevailing economic conditions and other factors, and consider and determine whether to accept or vary a recommendation of the EMPLOYER: 
 (a) whether the EMPLOYER should increase EXECUTIVE’s salary, and 
 (b) whether the EXECUTIVE should be paid a bonus pursuant to the applicable bonus plan. 
 3.2 During the
EMPLOYMENT TERM, the EMPLOYER shall cause the EXECUTIVE, his/her spouse and dependent children to be enrolled in and covered by group life, hospitalization, major medical and disability income insurance coverages under insurance plans and executive
physical examination plans not less favorable to the EXECUTIVE than the plans of such description in effect immediately prior to the date of occurrence of the CHANGE IN CONTROL. 
 3.3 During the EMPLOYMENT TERM, the EMPLOYER shall cause the EXECUTIVE to be a participant in one or more retirement income (pension) plans which afford
participation and benefits to the EXECUTIVE on a basis not less favorable to the EXECUTIVE than the plans of such description in effect immediately prior to the date of occurrence of the CHANGE IN CONTROL. 
 3.4 During the EMPLOYMENT TERM, the EMPLOYER shall cause reimbursement to be paid promptly to the EXECUTIVE for all expenses reasonably incurred by
him/her in connection with performing his/her duties pursuant hereto. 
 3.5 During the EMPLOYMENT TERM, in the event that the insurance and
physical examination plan benefits required by paragraph 3.2, above, or the 

  

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retirement income (pension) plan benefits required by paragraph 3.3, above, are not actually available to the EXECUTIVE under the terms of the plan(s) or
applicable law, then the EMPLOYER shall make available to the EXECUTIVE an equivalent benefit, or an amount of cash consideration sufficient to fund or purchase an equivalent benefit, computed as if s/he had received a full year of service (for
vesting and benefit purposes) for each of his/her years of service with EMPLOYER, or any other affiliate or subsidiary or THI, including any years for which s/he is entitled to payment under Section 3 during the EMPLOYMENT TERM. 
 Section 4. Termination of Employment of the EXECUTIVE during the EMPLOYMENT TERM. The EXECUTIVE’S employment hereunder may be terminated
during the EMPLOYMENT TERM under the following circumstances: 
 4.1 Cause. The EMPLOYER may terminate the EXECUTIVE’S employment
under this Agreement for “CAUSE.” A termination for CAUSE is a termination by reason of the good faith determination by the EMPLOYER, subject to the approval of the THI Board of Directors, that the EXECUTIVE (a) willfully and
continually failed to substantially perform his/her duties with the EMPLOYER (other than a failure resulting from the EXECUTIVE’S incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to
the EXECUTIVE by the EMPLOYER, with the prior approval of the THI Board of Directors, which specifically identifies the manner in which the EMPLOYER believes that the EXECUTIVE has not substantially performed his/her duties and such failure
substantially to perform continues for at least fourteen (14) days, or (b) has willfully engaged in conduct which is demonstrably and materially injurious to the EMPLOYER or THI, monetarily or otherwise, or (c) has otherwise
materially breached this Agreement (including, without limitation, a voluntary termination of the EXECUTIVE’S employment by the EXECUTIVE during the EMPLOYMENT TERM). No act, nor failure to act, on the EXECUTIVE’S part, shall be considered
“willful” unless s/he has acted, or failed to act, with an absence of good faith and without a reasonable belief that his/her action or failure to act was in the best interest of the EMPLOYER and THI. Notwithstanding the foregoing, the
EXECUTIVE’S employment shall not be deemed to have been terminated for CAUSE unless and until (1) there shall have been delivered to the EXECUTIVE a copy of a written notice setting forth that the EXECUTIVE was guilty of conduct set forth
above in clause (a), (b) or (c) of the first sentence of this Section 4.1 and specifying the particulars thereof in detail, and (2) the EXECUTIVE shall have been provided an opportunity to be heard by the Board of Directors of
THI (with the assistance of EXECUTIVE’S counsel). 
 4.2 (a) Good Reason. The EXECUTIVE may terminate his/her employment for
“GOOD REASON.” For purposes of this Agreement, GOOD REASON shall mean the occurrence after a CHANGE IN CONTROL of any of the events or conditions described in Subsections (1) through (5) hereof without the EXECUTIVE’S
express written consent: 
  

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 (1) a change in the EXECUTIVE’S status, title, position or responsibilities (including reporting
responsibilities) which, in the EXECUTIVE’S reasonable judgment, does not represent a promotion from his/her status, title, position or responsibilities as in effect immediately prior thereto; the assignment to the EXECUTIVE of any duties or
responsibilities which, in the EXECUTIVE’S reasonable judgment, are inconsistent with such status, title, position or responsibilities; or any removal of the EXECUTIVE from or failure to reappoint or reelect him to any of such positions, except
in connection with the termination of his/her employment for DISABILITY, CAUSE, as a result of his/her death, or by the EXECUTIVE other than for GOOD REASON; 
 (2) a reduction by the EMPLOYER in the EXECUTIVE’S base salary as in effect immediately prior to the CHANGE IN CONTROL or as the same may be increased from time to time thereafter; 
 (3) the EMPLOYER requiring the EXECUTIVE to be based at any place outside a 50 kilometer radius from the EXECUTIVE’S business office location
immediately prior to the CHANGE IN CONTROL, except for reasonably required travel on the EMPLOYER’S behalf, or on behalf of another subsidiary of THI (or its successor’s) business (or the business of any successor to THI as the controlling
voting shareholder (whether direct or indirect) of the EMPLOYER) which is not materially greater than such travel requirements prior to the CHANGE IN CONTROL; 
 (4) the failure by the EMPLOYER to continue to provide the EXECUTIVE with the compensation and benefits substantially similar (in terms of benefit levels and/or reward opportunities) to those provided for under this
Agreement and those provided to him/her under any of the employee benefit plans in which the EXECUTIVE becomes a participant, or the taking of any action by the EMPLOYER which would directly or indirectly materially reduce any of such benefits or
deprive the EXECUTIVE of any material fringe benefit enjoyed by him/her at the time of the CHANGE IN CONTROL; or 
 (5) any material breach by
THI or the EMPLOYER of any provision of this Agreement. 
 (b) The EXECUTIVE’S right to terminate his/her employment pursuant to this
Section 4.2 shall not be affected by his/her incapacity due to physical or mental illness. 
  

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 4.3 Notice of Termination. Any purported termination by the EMPLOYER or by the EXECUTIVE shall be
communicated by written NOTICE OF TERMINATION to the other. For purposes of this Agreement, a “NOTICE OF TERMINATION” shall mean a notice which indicates the specific termination provision in this Agreement relied upon and shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for termination of the EXECUTIVE’S employment under the provision so indicated. If the EXECUTIVE’S employment is terminated by the EMPLOYER for any reason, NOTICE
OF TERMINATION must be given at least 30 days prior to the EXECUTIVE’S TERMINATION DATE (as defined below). For purposes of this Agreement, no such purported termination shall be effective without such NOTICE OF TERMINATION. 
 4.4 Termination Date, Etc. “TERMINATION DATE” shall mean, if the EXECUTIVE’S employment is terminated for any reason other than due
to death, the date specified in the Notice of Termination. 
 Section 5. Compensation Upon Termination. Upon termination of the
EXECUTIVE’S employment during the EMPLOYMENT TERM, the EXECUTIVE shall be entitled to the following benefits: 
 5.1 If the
EXECUTIVE’S employment shall be terminated by the EMPLOYER for CAUSE or by the EXECUTIVE other than for GOOD REASON, the EMPLOYER shall pay the EXECUTIVE his/her full base salary and accrued vacation pay through the TERMINATION DATE, plus any
benefits or awards which pursuant to the terms of any compensation or benefit plan have been earned or become payable, but which have not yet been paid to the EXECUTIVE and THI and the EMPLOYER shall have no further obligations to the EXECUTIVE
under this Agreement. The EXECUTIVE’S benefits thereafter shall be determined in accordance with the EMPLOYER’S employee benefit plans and other applicable programs and practices then in effect. 
 5.2 If the EXECUTIVE’S employment terminates by reason of the EXECUTIVE’S death, the EMPLOYER shall pay the EXECUTIVE’S beneficiaries
his/her full base salary and accrued vacation pay through the TERMINATION DATE, plus any benefits or awards which pursuant to the terms of any compensation or benefit plan have been earned or become payable, but which have not yet been paid to the
EXECUTIVE and a pro rata portion of any bonus or incentive award that the EXECUTIVE would have been entitled to receive in respect of the calendar year in which the EXECUTIVE’S TERMINATION DATE occurs had s/he continued in employment until the
end of such calendar year, payable at the same time that such bonuses or awards are payable to other employees of the EMPLOYER. In the case of the EXECUTIVE’S death, the EXECUTIVE’S beneficiaries’ benefits shall be determined in
accordance with the EMPLOYER’S employee benefit plans and other applicable programs and practices then in effect. 
  

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 5.3 If the EXECUTIVE’S employment by the EMPLOYER shall be terminated (i) by the EMPLOYER other
than for CAUSE or death, or (ii) by the EXECUTIVE for GOOD REASON, then the EXECUTIVE shall be entitled to the benefits provided below: 
 (a) the EMPLOYER shall pay the EXECUTIVE his/her full base salary and accrued vacation pay through the TERMINATION DATE, plus the benefits or awards which pursuant to the terms of any of the EMPLOYER’S compensation or benefit plans
have been earned or become payable as if all objectives including the completion of the award cycle thereunder had been met, but which have not yet been paid to the EXECUTIVE, and a pro rata portion of any bonus or incentive award that the EXECUTIVE
would have been entitled to receive in respect of the calendar year in which the EXECUTIVE’S TERMINATION DATE occurs had s/he continued in employment until the end of such calendar year, calculated as if all performance targets under the
applicable plan had been fully met at the target level by THI, by the EMPLOYER and/or by the EXECUTIVE, as applicable; provided, however, that the bonus payment provided for in this Section 5.3(a) shall be reduced (but not below
zero) by the amount, if any, payable to the EXECUTIVE in respect of the year in which the EXECUTIVE’S TERMINATION DATE occurs under the provisions of any other bonus or incentive plan, as applicable. 
 (b) as severance pay and in lieu of any further salary for periods subsequent to the TERMINATION DATE, the EMPLOYER shall pay to the EXECUTIVE in a single
payment an amount in cash equal to two times the greater of (I) the sum of (A) the EXECUTIVE’S annual base salary at the rate in effect at the time NOTICE OF TERMINATION is given and (B) annual target bonus amount in effect at
the time NOTICE OF TERMINATION is given, or (II) the sum of (A) the average of the EXECUTIVE’S annual base salary at the rate in effect at the time NOTICE OF TERMINATION is given and the EXECUTIVE’S annual base salary for the two
years prior thereto; and (B) the average of the annual target bonus amount in effect at the time NOTICE OF TERMINATION is given and the EXECUTIVE’S annual target bonus amount for the two years prior thereto. 
 (c) as additional severance, the EMPLOYER shall pay to the EXECUTIVE in a single payment an amount equal to the present value of the employer
contributions the EXECUTIVE would have accrued under the EMPLOYER’S registered pension plan and supplemental plan, if any, if s/he had remained an employee for two years following the TERMINATION DATE. For purposes of this determination, the
base salary of the EXECUTIVE over this period shall be equal to his/her base salary in effect at the TERMINATION DATE, and the employee contribution rate of the EXECUTIVE under the registered pension plan shall be 

  

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equal to the contribution rate in effect at the TERMINATION DATE. Present values shall be determined using a discount rate equal to the interest rate
recommended by the Canadian Institute of Actuaries for the computation of transfer values from a registered pension plan. 
 (d) for the two
years following the TERMINATION DATE, the EMPLOYER shall at its expense continue on behalf of the EXECUTIVE and his/her dependents and beneficiaries the life insurance, disability, medical, dental and hospitalization benefits which were being
provided to the EXECUTIVE at the time NOTICE OF TERMINATION is given. The benefits provided in this Section 5.3(d) shall be no less favorable to the EXECUTIVE, in terms of amounts and deductibles and costs to him/her, than the coverage provided
the EXECUTIVE under the EMPLOYER’S plans providing such benefits at the time NOTICE OF TERMINATION is given. The EMPLOYER’S obligation hereunder with respect to the foregoing benefits shall be limited to the extent that the EXECUTIVE
obtains any such benefits pursuant to a subsequent employer’s benefit plans, in which case the EMPLOYER may reduce the coverage of any benefits it is required to provide the EXECUTIVE hereunder as long as the aggregate coverage of the combined
benefit plans is no less favorable to the EXECUTIVE in terms of amounts and deductibles and costs to him/her, than the coverage which would be provided hereunder by the EMPLOYER to the EXECUTIVE at the time the NOTICE OF TERMINATION is given. Except
as expressly set forth above, this paragraph (d) shall not be interpreted so as to limit any benefits to which the EXECUTIVE or his/her dependents may be entitled under any of the EMPLOYER’S employee benefit plans, programs or practices
following the EXECUTIVE’S termination of employment. Where such benefits as contemplated in this section 5.3(d) are not available to EXECUTIVE as a result of EXECUTIVE not being employed by the EMPLOYER, the EMPLOYER shall pay, in a lump sum,
the present value of the cost of such benefits, had they been available under the same terms and conditions and the EMPLOYER benefit plans, and net of any required contribution by the EXECUTIVE. 
 (e) for the two years following the TERMINATION DATE, the EMPLOYER shall pay to the EXECUTIVE a monthly allowance equal to a pre-determined monthly amount
for the car payment, gas, maintenance and insurance for the grade level of the EXECUTIVE, established by the EMPLOYER from time to time, to replace the benefit of the car being used by the EXECUTIVE prior to the TERMINATION DATE. The EXECUTIVE shall
return the car being used by such EXECUTIVE to the EMPLOYER upon the TERMINATION DATE. 
 5.4 The amounts provided for in Sections 5.1, 5.2
and 5.3(a), (b) and (c) shall be paid within ten days after the EXECUTIVE’S TERMINATION DATE. 
 5.5 The EXECUTIVE shall not be
required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or 

  

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otherwise and no such payment, except as otherwise set forth in Section 5.3(d) hereof, shall be offset or reduced by the amount of any compensation or
benefits provided to the EXECUTIVE in any subsequent employment. 
 Section 6. Effect of a CHANGE IN CONTROL. Upon the occurrence
of any CHANGE IN CONTROL, (a) any options to purchase shares of common stock of THI and any stock appreciation rights or restricted stock units, or other equity award granted by THI to the EXECUTIVE, which are not yet fully vested and
exercisable, shall become fully vested and exercisable, and (b) any restrictions remaining at that time on any stock awarded to the EXECUTIVE by THI shall lapse. 
 Section 7. Fees and Expenses. The EMPLOYER shall pay all reasonable legal fees and related expenses (including the costs of experts, evidence and counsel) incurred in good faith by the EXECUTIVE as a
result of (a) the termination of the EXECUTIVE’S employment by the EMPLOYER or by the EXECUTIVE for GOOD REASON (including all such fees and expenses, if any, incurred in contesting, defending or disputing the basis for any such
termination of employment), or (b) the EXECUTIVE seeking to obtain or enforce any right or benefit provided by this Agreement or by any other plan or arrangement maintained by the EMPLOYER under which the EXECUTIVE is or may be entitled to
receive benefits in accordance with the terms hereof; provided, however, that such payments by EMPLOYER of reasonable legal fees and related expenses of EXECUTIVE shall be required only to the extent that the EXECUTIVE is
determined, by non-appealable order of a court of competent jurisdiction or through a properly conducted arbitration proceeding, to be the prevailing party in any claim, dispute or action relating to matters described in items (a) or
(b) above. 
 Section 8. Protection of Business. Notwithstanding anything to the contrary in this Agreement: 
 8.1 At all times during the EMPLOYMENT TERM while the EXECUTIVE is employed by the EMPLOYER, the EXECUTIVE will not participate as a partner, joint
venturer, officer, director, employee, or representative, or have any direct financial interest in, any business or enterprise conducting a quick service restaurant business in the United States or Canada, other than a business or enterprise engaged
in operating restaurants under a franchise granted by the EMPLOYER, or any affiliated person; provided, that the ownership by EXECUTIVE of securities of a public corporation shall not be a violation of this subparagraph so long as (a) the
EXECUTIVE does not own, directly or indirectly, more than five percent (5%) of any class of the securities of such corporation, and (b) the value of such securities does not exceed ten percent (10%) of the net worth of the EXECUTIVE;
and provided further that ownership by EXECUTIVE of securities of THI or any successor to THI by merger or other form of transaction contemplated by subparagraph (a) or (c) of Section 1 hereof shall not be a violation of this
subparagraph. 
  

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 8.2 The EXECUTIVE will not at any time (during or after the expiration of the EMPLOYMENT TERM) divulge,
disclose, reveal or communicate to any person, firm, corporation, partnership, joint venture or other entity, directly or indirectly, any trade secrets or other information which the EXECUTIVE may have obtained during the course of his/her
employment by the EMPLOYER in respect of any matters affecting or relating to the quick service restaurant business and/or, in particular, the businesses of the EMPLOYER and any affiliated person, including, without limitation, any of their plans,
policies, business practices, finances, recipes, methods of operation, franchises or other information known to the EXECUTIVE to be considered by the EMPLOYER, or any affiliated person to be confidential information. 
 8.3 Notwithstanding anything to the contrary contained in this Agreement, the EXECUTIVE shall be required to pre-clear with the General Counsel of THI or
his/her designee any trades in the securities of THI of which the EXECUTIVE is the legal or beneficial owner, or any securities of any successor of THI following a CHANGE IN CONTROL, for a period of 12 months following the TERMINATION DATE. The
EXECUTIVE may not effectuate trades where the General Counsel or his/her designee has not provided a permissive trading recommendation. It is the EXECUTIVE’S obligation and responsibility to comply with all applicable securities laws, including
but not limited to the reporting requirements of Section 16 of the U.S. Securities Exchange Act of 1934 for so long as, and to the extent, applicable. 
 8.4 The restrictions on competition and other restrictions imposed upon the EXECUTIVE by this Section 8 may be enforced by the EMPLOYER, THI or any of its subsidiaries by an action for an injunction, it being
agreed (in view of the general practical impossibility of determining by computation or legal proof of the exact amount of damages, if any, resulting to the EMPLOYER, THI or any of its subsidiaries from a violation by the EXECUTIVE of the provisions
of this Section 8) that there would be no adequate remedy at law for any breach by the EXECUTIVE of any such restriction. 
 Section 9. Notices and Payments. All payments required or permitted to be made under the provisions of this Agreement, and all notices and other communications required or permitted to be given or delivered under this Agreement
to the EMPLOYER or to the EXECUTIVE, which notices or communications must be in writing, shall be deemed to have been given if delivered by hand, or mailed by first class mail, addressed as follows: 
  

 13 

 9.1 if to the EMPLOYER, to: 
 Chief Executive Officer 
 The TDL Group
Corp. 
 874 Sinclair Road 
 Oakville, ON L6K 2Y1 
 With a copy to: 
 General Counsel 
 The TDL Group Corp. 
 874 Sinclair Road 
 Oakville, ON L6K 2Y1

 9.2 if to EXECUTIVE, to: 
  

							
		 	  
	 		 	
		 	  
	 		 	
		 	  
	 		 	
		 	  
	 		 	

 The EMPLOYER or the EXECUTIVE may, by notice given to the others from time to time, designate a
different address for making payments required to be made, and for the giving of notices or other communications required or permitted to be given, to the party designating such new address. Any payment, notice or other communication required or
permitted to be given in accordance with this Agreement shall be deemed to have been given if and when placed in the U.S. or Canadian Mail (as applicable), addressed and mailed as provided above. 
 Section 10. Payroll Taxes. Any payment required or permitted to be made or given to the EXECUTIVE pursuant to this Agreement shall be subject
to the withholding and other requirements of applicable laws, and to the deduction requirements of any benefit plan maintained by the EMPLOYER in which the EXECUTIVE is a participant, and to all reporting, filing and other requirements in respect of
such payments, and the EMPLOYER or THI, as applicable, shall promptly satisfy all such requirements. 
 Section 11. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario. 
 Section 12.
Duplicate Originals. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be a duplicate original, but all of which, taken together, shall constitute a single instrument. 
  

 14 

 Section 13. Captions. The captions contained in this Agreement are included only for
convenience of reference and do not define, limit, explain or modify this Agreement or its interpretation, construction or meaning. 
 Section 14. Severability. If any provision of this Agreement or the application of any provision to any person or any circumstances shall be determined to be invalid or unenforceable, then such determination shall not affect any
other provision of this Agreement or the application of said provision to any other person or circumstance, all of which other provisions shall remain in full force and effect. It is the intention of THI, the EMPLOYER and the EXECUTIVE that if any
provision of this Agreement is susceptible of two or more constructions, one of which would render the provision enforceable and other or others of which would render the provision unenforceable, then the provision shall have the meaning which
renders it enforceable. 
 Section 15. Number and Gender. When used in this Agreement, the number and gender of each pronoun
shall be construed to be such number and gender as the context, circumstances or its antecedent may require. 
 Section 16.
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns (including successive, as well as immediate, successors and assigns) of THI and the EMPLOYER; provided, however, that the
obligations of this Agreement may not be transferred by THI or the EMPLOYER, except in accordance with the following proviso: provided further, however, that if THI or the EMPLOYER transfers to any other person substantially all of its assets and/or
business by merger, consolidation, sale of assets or otherwise, THI or the EMPLOYER, as applicable, must transfer its obligations hereunder to such other person and such other person must accept such transfer and assume the obligations of the
EMPLOYER, and of THI, if applicable, imposed hereby, resulting in a permissible assignment and transfer of this Agreement by THI and/or the EMPLOYER, as applicable. THI or the EMPLOYER shall notify the EXECUTIVE in writing within thirty
(30) days following any transfer of business and assets that the transferee has accepted the transfer and assumption of the EMPLOYER’S, and of THI, if applicable, obligations under this Agreement. This Agreement shall inure to the benefit
of and be binding upon the heirs and assigns (including successive, as well as immediate, assigns) of the EXECUTIVE; provided, however, that the rights of the EXECUTIVE under this Agreement may be assigned only to his personal representative or by
will or pursuant to applicable laws of descent and distribution. 
 Section 17. Arbitration. All matters in difference between
the parties in relation to this Agreement shall be referred to the arbitration of a single arbitrator if the parties agree upon one, otherwise to three arbitrators, one to be appointed by each party and a third to be chosen by the first two named
before they enter upon the business of arbitration. Such arbitration shall take place in the City of Toronto, or as the parties may otherwise agree in writing. The award and determination of the arbitrator or arbitrators or any two of the three
arbitrators shall be binding upon the parties and their respective 

  

 15 

 
heirs, executors, administrators and assigns. During the pendency of such arbitration proceedings, the EXECUTIVE shall be entitled to the full benefits
provided by the Agreement. 
 Section 18. Termination of Prior Agreement. EXECUTIVE hereby acknowledges, understands, and agrees
that: (i) this Agreement replaces and supersedes, in its entirety, the Prior Agreement; (ii) the Prior Agreement terminated and is of no further force and effect as a result of the spin-off of THI from Wendy’s, which occurred on
September 29, 2006; and (iii) neither the EXECUTIVE nor Wendy’s shall have any further rights, obligations, responsibilities or duties under the Prior Agreement. 
  

 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed to be effective as of
the date first above written. 
  

			
	EMPLOYER:
	The TDL Group Corp.
		
	By:	 	  

	Print Name:	 	  

	Title:	 	  

	
	EXECUTIVE:
	
	  

	                                      
                      , an individual
	
	THI:
	TIM HORTONS INC.
		
	By:	 	  

	Print Name:	 	  

	Title:	 	  

  

 172006 Stock Incentive Plan, as amended

 Exhibit 10(e) 
 TIM HORTONS INC. 
 2006 STOCK INCENTIVE PLAN 
 As Amended and Restated, December 5, 2006 
 Section 1. Purpose. The purpose of this Tim Hortons Inc. 2006 Stock Incentive Plan (the “Plan”) is to strengthen Tim Hortons Inc. (the “Company”) by providing an incentive to the employees and
directors of the Company and its subsidiaries (the “Subsidiaries”) and thereby encouraging them to devote their abilities and industry to the success of the Company’s and that of its Subsidiaries’ business enterprises. It
is intended that this purpose be achieved by extending to employees (including future employees who have received a formal written offer of employment) and directors of the Company and its Subsidiaries an added long-term incentive for high levels of
performance and unusual efforts through the grant of Restricted Stock, Options, Stock Appreciation Rights, Dividend Equivalent Rights, Performance Awards, Share Awards, Formula Restricted Stock Units and Stock Units (as each term is herein defined).

 Section 2. Administration of the Plan. 
 2.1. Committee Composition; Powers. The Plan shall be administered by the Human Resource and Compensation Committee (“Committee”) of the Board. The members of the Committee shall serve at the
pleasure of the Board, which shall have the power at any time, or from time to time, to remove members from the Committee or to add members thereto. Each member of the Committee shall be a Nonemployee Director and shall satisfy any applicable stock
exchange requirements. The Committee shall construe and interpret the Plan, establish such operating guidelines and rules as it deems necessary for the proper administration of the Plan and make such determinations and take such other action in
connection with the Plan as it deems necessary and advisable. It shall determine the Eligible Individuals to whom and the time or times at which Awards and Options shall be granted, the number of Shares to be subject to each Award and Option, the
terms and conditions of each Award and Option (and amendments thereto) and the duration of leaves of absence which may be granted to Grantees and Optionees without constituting a termination of their employment, or status as a director for purposes
of the Plan. Any such construction, interpretation, rule, determination or other action taken by the Committee pursuant to the Plan shall be final, binding and conclusive on all interested parties, including without limitation the Company and all
Grantees and Optionees. 
 2.2. Committee Action. Actions by a majority of the Committee at a meeting at which a quorum is present, or
actions approved in writing by all of the members of the Committee, shall be the valid acts of the Committee. Subject to applicable law, the Committee may delegate its authority under the Plan to any other person or persons. No member of the Board
or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Option granted under it. 
 2.3. No Repricing of Options or Stock Appreciation Rights. The Committee shall have no authority to make any adjustment (other than in connection with a stock dividend, recapitalization or other transaction
where an adjustment is permitted or required under the terms of the Plan) or amendment, and no such adjustment or amendment shall be made, that reduces or would have the effect of reducing the exercise price of an Option or Stock Appreciation Right

 
previously granted under the Plan, whether through amendment, cancellation or replacement grants, or other means, unless the Company’s shareholders
shall have approved such adjustment or amendment. 
 Section 3. Maximum Number of Shares Subject to Plan. 
 3.1. Number of Shares Authorized for Issuance. Subject to any adjustment as provided in the Plan, the Shares to be issued under the Plan may be, in
whole or in part, authorized but unissued Shares, issued Shares which shall have been reacquired by the Company and held by it as treasury shares, Shares which have been otherwise acquired by or on behalf of the Company, a Subsidiary, or a Trust
established by either of the Company or a Subsidiary and held for future delivery, or Shares acquired by delivery of cash to a broker to acquire Shares on behalf of employees and/or directors. The aggregate number of Shares that may be made the
subject of Awards or Options granted under the Plan shall not exceed 2,900,000, and not more than 1,000,000 Shares may be made the subject of Incentive Stock Option Awards under the Plan. The number of Shares that may be the subject of Options and
Stock Appreciation Rights granted to an Eligible Individual in any calendar year may not exceed 250,000 Shares. The number of Shares that may be the subject of Performance Shares granted to an Eligible Individual in any calendar year may not exceed
250,000 Shares. The dollar amount of cash or the Fair Market Value of Shares that any Eligible Individual may receive in any calendar year in respect of Performance Units denominated in dollars may not exceed U.S. $4,000,000. 
 3.2. Calculating Shares Available. 
 (i) Upon the granting of an Award or an Option, the number of Shares available under this Section 3 for the granting of further Awards and Options shall be reduced as follows: 
 (a) In connection with the granting of an Award or an Option (other than the granting of a Performance Unit denominated in dollars or Dividend Equivalent
Rights), the number of Shares available under this Section 3 for the granting of further Options and Awards shall be reduced by the number of Shares in respect of which the Option or Award is granted or denominated; provided, however,
that if any Option is exercised by tendering Shares, either actually or by attestation, to the Company as full or partial payment of the Option Price, the maximum number of Shares available under this Section 3 shall be increased by the number
of Shares so tendered, but in no case shall the maximum number of Shares available under this Section 3 exceed 2,900,000 without shareholder approval. 
 (b) In connection with the granting of a Performance Unit denominated in dollars, the number of Shares available under this Section 3 for the granting of further Options and Awards initially shall be reduced by
an amount equal to the quotient of (i) the dollar amount in which the Performance Unit is denominated, divided by (ii) the Fair Market Value of a Share on the date the Performance Unit is granted, with a corresponding adjustment if the
Performance Unit is ultimately settled in whole or in part with a different number of Shares. 
 (c) In connection with the granting of a
Dividend Equivalent Right, the number of Shares available under this Section 3 shall not be reduced; provided, 

  

 2 

 
however, that if Shares are issued in settlement of a Dividend Equivalent Right, the number of Shares available for the granting of further Options
and Awards under this Section 3 shall be reduced by the number of Shares so issued. 
 (ii) Whenever any outstanding Option or Award or
portion thereof expires, is canceled, is settled in cash (including the settlement of tax withholding obligations using Shares) or is otherwise terminated for any reason without having been exercised or payment having been made in respect of the
entire Option or Award, the Shares allocable to the expired, canceled, settled or otherwise terminated portion of the Option or Award may again be the subject of Options or Awards granted hereunder. In addition, upon settlement of a Stock
Appreciation Right in Shares, the excess of the number of Shares covered by the Stock Appreciation Right over the number of Shares issued in settlement of the Stock Appreciation Right may again be the subject of Options or Awards granted hereunder.

 Section 4. Restricted Stock; Stock Units. 
 4.1. Restricted Stock. The Committee, from time to time, subject to the terms and provisions of the Plan, may grant to any Eligible Individual an Award of Restricted Stock, which shall be evidenced by an
Agreement. Each Agreement shall contain such restrictions, terms and conditions as the Committee may, in its discretion, determine and (without limiting the generality of the foregoing) such Agreements may require that an appropriate legend be
placed on Share certificates. Awards of Restricted Stock shall be subject to the terms and provisions set forth below in this Section 4.1. 
 (i) Rights of Grantee. Shares of Restricted Stock granted pursuant to an Award hereunder shall be issued in the name of the Grantee as soon as reasonably practicable after the Award is granted, provided that the Grantee has
executed any and all documents which the Committee may require as a condition to the issuance of such Shares, which may include an Agreement evidencing the Award, the appropriate blank stock powers and an escrow agreement. If a Grantee shall fail to
execute any documents which the Committee may require within the time period prescribed by the Committee at the time the Award of Restricted Stock is granted, the Award shall be null and void. At the discretion of the Committee, Shares issued in
connection with an Award of Restricted Stock shall be deposited together with the stock powers with an escrow agent (which may be the Company) designated by the Committee. Unless the Committee determines otherwise as set forth in the Agreement, upon
delivery of the Shares to the escrow agent (which may be in the form of book entry Shares), the Grantee shall have all of the rights of a stockholder with respect to such Shares, including the right to vote the Shares and to receive all dividends or
other distributions paid or made with respect to the Shares. 
 (ii) Non-Transferability. Until all restrictions upon the Shares of
Restricted Stock awarded to a Grantee shall have lapsed in the manner set forth in Section 4.1(iii), such Shares shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated. 
  

 3 

 (iii) Lapse of Restrictions. 
 (a) Generally. Restrictions upon Shares of Restricted Stock awarded hereunder shall lapse at such time or times and on such terms and conditions
as the Committee may determine. The Agreement evidencing the Award shall set forth any such restrictions. 
 (b) Effect of Change in
Control. Upon a Change in Control, the restrictions upon Shares of Restricted Stock shall lapse. 
 (iv) Treatment of Dividends.
At the time an Award of Shares of Restricted Stock is granted, the Committee may, in its discretion, determine that the payment to the Grantee of dividends, or a specified portion thereof, declared or paid on such Shares by the Company shall be
(a) deferred until the lapsing of the restrictions imposed upon such Shares and (b) held by the Company for the account of the Grantee until such time. In the event that dividends are to be deferred, the Committee shall determine whether
such dividends are to be reinvested in Shares (which shall be held as additional Shares of Restricted Stock) or held in cash. If deferred dividends are to be held in cash, there may be credited interest on the amount of the account at such times and
at a rate per annum as the Committee, in its discretion, may determine. Payment of deferred dividends in respect of Shares of Restricted Stock (whether held in cash or as additional Shares of Restricted Stock), together with interest accrued
thereon, if any, shall be made upon the lapsing of restrictions imposed on the Shares in respect of which the deferred dividends were paid, and any dividends deferred (together with any interest accrued thereon) in respect of any Shares of
Restricted Stock shall be forfeited upon the forfeiture of such Shares. 
 (v) Delivery of Shares. Upon the lapse of the restrictions
on Shares of Restricted Stock, the Committee shall cause a stock certificate or evidence of book entry Shares to be delivered to the Grantee with respect to such Shares of Restricted Stock, free of all restrictions hereunder. 
 4.2. Stock Unit Awards. 
 (i)
Grant. The Committee, from time to time, subject to the terms and provisions of the Plan, may grant to any Eligible Individual an Award of Stock Units, which shall be evidenced by an Agreement. Each Agreement shall contain such restrictions,
terms and conditions as the Committee may, in its discretion, determine. 
 (ii) Payment of Awards. Each Stock Unit shall represent
the right of the Grantee to receive a payment upon vesting of the Stock Unit or on any later date specified by the Committee equal to the Fair Market Value of a Share as of the date the Stock Unit was granted, the vesting date or such other date as
determined by the Committee at the time the Stock Unit was granted. The Committee may, at the time a Stock Unit is granted, provide a limitation on the amount payable in respect of each Stock Unit. The Committee may provide for the settlement of
Stock Units in cash or with Shares having a Fair Market Value equal to the payment to which the Grantee has become entitled, or a combination thereof. 
  

 4 

 (iii) Effect of Change in Control. Upon a Change in Control, Stock Units shall become fully
vested. 
 Section 5. Non-Employee Director Restricted Stock Unit Grants. 
 5.1. Formula Restricted Stock Unit Grants. In 2006, each Eligible Director shall be granted 2,730 Formula Restricted Stock Units. Each Formula
Restricted Stock Unit shall be accompanied by one (1) related Dividend Equivalent Right. Such Formula Restricted Stock Units and related Dividend Equivalent Rights shall be granted on May 1. 
 5.2. Formula Restricted Stock Unit and Dividend Equivalent Right Agreements. All Formula Restricted Stock Units and related Dividend Equivalent
Rights shall be evidenced by an Agreement, which shall include the following terms and conditions: 
 (i) Grantee and Number of Units.
Each Agreement shall state the name of the Eligible Director to whom the Formula Restricted Stock Units have been granted and shall state the number of Formula Restricted Stock Units and Dividend Equivalent Rights granted. 
 (ii) Dividend Equivalent Units Accompanying Formula Restricted Stock Units. Each Dividend Equivalent Right shall provide that any dividends or
distributions that are paid with respect to Shares subject to the Formula Restricted Stock Units to which the Dividend Equivalent Right relates shall be automatically converted into additional Formula Restricted Stock Units based on the Fair Market
Value of a Share on the date such dividend is paid (provided that no fractional Formula Restricted Stock Units shall be granted). The amount of any cash dividends or distributions remaining in respect of a fractional Share shall be added to any
subsequent cash dividends or distributions paid in respect of Shares subject to Formula Restricted Stock Units and converted into additional Formula Restricted Stock Units or, if earlier, paid to the Eligible Director upon the vesting of the Formula
Restricted Stock Unit in respect of which such dividend or distribution was paid, in accordance with Section 5.2(iv) below. 
 (iii)
Non-Transferability. Until the Formula Restricted Stock Units awarded to the Grantee have vested in the manner set forth in Section 5.2(iv), such units shall not be sold, transferred or otherwise disposed of and shall not be pledged or
otherwise hypothecated. 
 (iv) Vesting; Issuance of Shares. 
 (a) General Vesting. One-third of the Formula Restricted Stock Units shall vest on each of the first two anniversaries of the grant date of such
Formula Restricted Stock Units, and the remainder shall vest on November 1 following the second anniversary of the grant date of such Formula Restricted Stock Units. 
 (b) Vesting Upon Certain Terminations of Service. In the event a Grantee’s services as a director of the Company is terminated by reason of the Grantee’s death, the Grantee’s becoming Disabled,
or by reason of the Grantee’s Retirement, then all Formula Restricted Stock Units (including all Dividend Equivalent Rights granted in respect of such units) held by the Grantee shall become immediately vested as of the date of such
termination. 
  

 5 

 (c) Effect of Change in Control. Upon a Change in Control, the restrictions upon Formula
Restricted Stock Units shall lapse. 
 (d) Issuance of Shares. Upon vesting of Formula Restricted Stock Units pursuant to
Section 5.2(iv), (A) the Committee shall cause a stock certificate or evidence of book entry Shares to be delivered to the Grantee with respect to the Shares subject to the vested Formula Restricted Stock Units, free of all restrictions
hereunder and (B) the Dividend Equivalent Rights related to the vested Formula Restricted Stock Units shall terminate. 
 (v)
Termination of Services by Grantee. Except as otherwise set forth in Section 5.2(iv), upon the termination of a Grantee’s services as a director, for any reason whatsoever, the unvested Formula Restricted Stock Units (including any
Dividend Equivalent Rights granted in respect of such units) shall be forfeited as of the date of such termination. 
 (vi) Amendment of
Section 5. No Formula Restricted Stock Units shall be granted under this Section 5 for 2007 or any year thereafter. Notwithstanding the foregoing sentence, the provisions of this Section 5 will govern all outstanding grants of
Formula Restricted Stock Units that were made in 2006. Subject to the other terms of this Plan, the amendment of this Section 5 shall not preclude grants of any other Awards under this Plan to Eligible Directors. 
 Section 6. Option Grants to Eligible Individuals. 
 6.1. Selection of Optionees. The Committee, from time to time, subject to the terms and provisions of the Plan, may grant Options to any Eligible Individual. In determining the persons to whom Options shall be
granted and the number of Shares to be covered by each Option, the Committee may take into account the nature of the services rendered by such persons, their present and potential contribution to the success and growth of the Company and its
Subsidiaries, and such other factors as the Committee, in its discretion, shall deem relevant. Any Eligible Individual who has been granted an Option under a prior stock option plan of the Company may be granted an additional Option or Options under
the Plan if the Committee shall so determine. 
 6.2. Option Requirements. The Options granted pursuant to this Section 6 shall
be authorized by the Committee and shall be evidenced by an Agreement, which Agreement shall include the following terms and conditions: 
 (i) Optionee. Each Agreement shall state the name of the Optionee to whom the Option has been granted. 
 (ii) Number of
Shares. Each Agreement shall state the number of Shares to which that Option pertains. 
  

 6 

 (iii) Purchase Price. Each Agreement shall state the Option Price, which shall be not less than
one hundred percent (100%) of the Fair Market Value of the Shares covered by such Option on the date of grant of such Option. 
 (iv)
Length of Option. Each Option granted pursuant to this Section 6 shall be granted for a period to be determined by the Committee but in no event to exceed more than ten (10) years. However, each Option shall be exercisable only
during such portion of its term as the Committee shall determine and, subject to Section 11, only if the Optionee is employed by the Company or a Subsidiary at the time of such exercise. The Committee may, subsequent to the granting of any
Option, extend the term thereof, but in no event shall the term as so extended exceed the maximum term provided for in the first sentence of this Section 6.2(iv). 
 (v) Exercise of Option. Each Optionee shall have the right to exercise his or her Option at the time or times and in the manner specified in the Plan or in the Agreement evidencing such Option. The Committee
may accelerate the exercisability of any Option granted to an Eligible Individual or any portion thereof at any time. 
 6.3. Types of
Stock Options. The Options granted under the Plan may be Nonqualified Stock Options or Incentive Stock Options. Incentive Stock Options may be granted only to Eligible Individuals who are employees of the Company or its “parent
corporation” or a “subsidiary corporation” (as such terms are defined in Section 424 of the Code). Notwithstanding anything to the contrary contained in this Section 6, no Incentive Stock Option shall be granted to an
individual owning stock possessing more than ten percent (10%) of the total combined voting power of the Company, or its parent corporation or subsidiary corporations unless (i) the Option Price at the time such Option is granted is equal
to at least one hundred ten percent (110%) of the Fair Market Value of the Shares subject to the Option, and (ii) such Option by its terms is not exercisable after the expiration of five (5) years from the date such Option is granted.
Further, the aggregate Fair Market Value (determined at the time the Option is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (under all such plans of
the Company and its Subsidiaries) shall not exceed one hundred thousand dollars (U.S. $100,000.00). 
 6.4. Method of Exercise of
Options. Each Option shall be exercised pursuant to the terms of such Option as set forth in the applicable Agreement and pursuant to the terms of the Plan by giving notice to the Company at its principal place of business or other address
designated by the Company, accompanied by cash, certified check, delivery of Shares (valued at their Fair Market Value) or other property acceptable to the Committee, in payment of the Option Price for the number of Shares specified. From time to
time the Committee may establish procedures relating to effecting such exercises, including procedures for cashless exercises through a registered broker-dealer. No fractional Shares (or cash in lieu thereof) shall be issued as a result of
exercising an Option. The Company shall make delivery of such Shares as soon as possible; provided, however, that if any law or regulation or securities exchange rule requires the Company to take action with respect to the Shares specified in
such notice before issuance thereof, the date of delivery of such Shares shall then be extended for the period necessary to take such action. 
  

 7 

 6.5. Non-Transferability of Options. Except to the extent that, pursuant to the terms of the Plan
or an Agreement, an Optionee’s legal representative or estate is permitted to exercise an Option, an Option is exercisable during an Optionee’s lifetime only by the Optionee. The Options shall not be transferable except by will or the laws
of descent and distribution. 
 6.6. Change in Control. In the event of a Change in Control, all Options outstanding on the date of
such Change in Control shall become immediately and fully exercisable. 
 6.7. Buy Out of Option Gains. At any time after any Option
becomes exercisable, the Committee shall have the right to elect, in its sole discretion and without the consent of the holder thereof, to cancel such Option and pay to the Optionee the excess of the Fair Market Value of the Shares covered by such
Option over the Option Price of such Option at the date the Committee provides written notice (the “Buy Out Notice”) of the intention to exercise such right. Buy outs pursuant to this provision shall be effected by the Company as
promptly as possible after the date of the Buy Out Notice. Payments of buy out amounts may be made in cash, in Shares, or partly in cash and partly in Shares, as the Committee deems advisable. To the extent payment is made in Shares, the number of
Shares shall be determined by dividing the amount of the payment to be made by the Fair Market Value of a Share at the date of the Buy Out Notice. In no event shall the Company be required to deliver a fractional Share in satisfaction of this buy
out provision. 
 Section 7. Stock Appreciation Rights. 
 7.1. Grant. The Committee, from time to time, subject to the terms and provisions of the Plan, may, either alone or in connection with the grant of
an Option, grant to any Eligible Individual Stock Appreciation Rights in accordance with the Plan, the terms and conditions of which shall be set forth in an Agreement. A Stock Appreciation Right may be granted (a) at any time if unrelated to
an Option, or (b) if related to an Option, either at the time of grant or at any time thereafter during the term of the Option. 
 7.2.
Stock Appreciation Right Related to an Option. If granted in connection with an Option, a Stock Appreciation Right shall cover the same Shares covered by the Option (or such lesser number of Shares as the Committee may determine) and shall,
except as provided in this Section 7, be subject to the same terms and conditions as the related Option. 
 (i) Exercise. A Stock
Appreciation Right granted in connection with an Option shall be exercisable at such time or times and only to the extent that the related Options are exercisable, and will not be transferable except to the extent the related Option may be
transferable. A Stock Appreciation Right granted in connection with an Incentive Stock Option shall be exercisable only if the Fair Market Value of a Share on the date of exercise exceeds the exercise price specified in the related Incentive Stock
Option Agreement. 
 (ii) Amount Payable. Upon the exercise of a Stock Appreciation Right related to an Option, the Grantee shall be
entitled to receive an amount determined by multiplying (i) the excess of the Fair Market Value of a Share on the last trading date immediately preceding the date of exercise of such Stock Appreciation Right over the Option 

  

 8 

 
Price under the related Option, by (ii) the number of Shares as to which such Stock Appreciation Right is being exercised. Notwithstanding the
foregoing, the Committee may limit in any manner the amount payable with respect to any Stock Appreciation Right by including such a limit in the Agreement evidencing the Stock Appreciation Right at the time it is granted. 
 (iii) Treatment of Related Options and Stock Appreciation Rights Upon Exercise. Upon the exercise of a Stock Appreciation Right granted in
connection with an Option, the Option shall be canceled to the extent of the number of Shares as to which the Stock Appreciation Right is exercised, and upon the exercise of an Option granted in connection with a Stock Appreciation Right, the Stock
Appreciation Right shall be canceled to the extent of the number of Shares as to which the Option is exercised or surrendered. 
 7.3.
Stock Appreciation Right Unrelated to an Option. A Stock Appreciation Right unrelated to an Option shall cover such number of Shares as the Committee shall determine. 
 (i) Terms; Duration. Stock Appreciation Rights unrelated to Options shall contain such terms and conditions as to exercisability, vesting and
duration as the Committee shall determine, but in no event shall they have a term of greater than ten (10) years. However, each Stock Appreciation Right shall be exercisable only during such portion of its term as the Committee shall determine
and, subject to Section 11, only if the Grantee is employed by the Company or a Subsidiary at the time of such exercise. 
 (ii)
Amount Payable. Upon exercise of a Stock Appreciation Right unrelated to an Option, the Grantee shall be entitled to receive an amount determined by multiplying (a) the excess of the Fair Market Value of a Share on the date preceding the
date of exercise of such Stock Appreciation Right over the Fair Market Value of a Share on the date the Stock Appreciation Right was granted, by (b) the number of Shares as to which the Stock Appreciation Right is being exercised.
Notwithstanding the foregoing, the Committee may limit in any manner the amount payable with respect to any Stock Appreciation Right by including such a limit in the Agreement evidencing the Stock Appreciation Right at the time it is granted.

 (iii) Non-Transferability. No Stock Appreciation Right unrelated to an Option shall be transferable by the Grantee otherwise than
by will or the laws of descent and distribution, and such Stock Appreciation Right shall be exercisable during the lifetime of such Grantee only by the Grantee or his or her guardian or legal representative. 
 7.4. Method of Exercise. Stock Appreciation Rights shall be exercised by a Grantee only by giving written notice to the Company at its principal
place of business or other address designated by the Company, specifying the number of Shares with respect to which the Stock Appreciation Right is being exercised. If requested by the Committee, the Grantee shall deliver the Agreement evidencing
the Stock Appreciation Right being exercised and the Agreement evidencing any related Option to the Company, which shall endorse thereon a notation of such exercise and return such Agreement to the Grantee. 
  

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 7.5. Form of Payment. Payment of the amount determined under Section 7.2(ii) or 7.3(ii) may
be made in the discretion of the Committee solely in whole Shares in a number determined at their Fair Market Value on the date preceding the date of exercise of the Stock Appreciation Right, or solely in cash, or in a combination of cash and
Shares. If the Committee decides to make full payment in Shares and the amount payable results in a fractional Share, payment for the fractional Share will be made in cash. 
 7.6. Effect of Change in Control. In the event of a Change in Control, all Stock Appreciation Rights shall become immediately and fully
exercisable. 
 Section 8. Dividend Equivalent Rights. The Committee, from time to time, subject to the terms and provisions of
the Plan, may grant Dividend Equivalent Rights to any Eligible Individual in tandem with an Option or Award or as a separate Award. The terms and conditions applicable to each Dividend Equivalent Right shall be specified in the Agreement under which
the Dividend Equivalent Right is granted. Except as provided in Section 5, amounts payable in respect of Dividend Equivalent Rights may be payable currently or, if applicable, deferred until the lapsing of restrictions on such Dividend
Equivalent Rights or until the vesting, exercise, payment, settlement or other lapse of restrictions on the Option or Award to which the Dividend Equivalent Rights relate. In the event that the amounts payable in respect of Dividend Equivalent
Rights are to be deferred, the Committee shall determine whether such amounts are to be held in cash or reinvested in Shares or deemed (notionally) to be reinvested in Shares. If amounts payable in respect of Dividend Equivalent Rights are to be
held in cash, there may be credited at the end of each year (or portion thereof) interest on the amount of the account at the beginning of the year at a rate per annum as the Committee, in its discretion, may determine. Dividend Equivalent Rights
may be settled in cash or Shares or a combination thereof, in a single installment or multiple installments, as determined by the Committee. Notwithstanding the foregoing, a Dividend Equivalent Right granted in connection with or related to an
Option or a Stock Appreciation Right shall be granted in a manner and on such terms as will not result in the related Option or Stock Appreciation Right as being treated as providing for deferred compensation under Section 409A of the Code and
the regulations promulgated thereunder. 
 Section 9. Performance Awards. 
 9.1. Performance Units. The Committee, from time to time, subject to the terms and provisions of the Plan, may grant to any Eligible Individual an
Award of Performance Units, the terms and conditions of which shall be set forth in an Agreement. Performance Units may be denominated in Shares or a specified dollar amount and, contingent upon the attainment of specified Performance Objectives
within the Performance Cycle, each Unit represents the right to receive payment as provided in Sections 9.1(i) and (ii) of (a) in the case of Share-denominated Performance Units, the Fair Market Value of a Share on the date the Performance
Unit was granted, the date the Performance Unit became vested or any other date specified by the Committee, (b) in the case of dollar-denominated Performance Units, the specified dollar amount or (c) a percentage (which may be more than
100%) of the amount described in clause (a) or (b) depending on the level of Performance Objective attainment; provided, however, that the Committee may at the time a Performance Unit is granted specify a maximum amount payable in
respect of a vested Performance Unit. Each Agreement shall specify the number of Performance Units to which it relates, the Performance Objectives which must be satisfied in order for the Performance Units to vest and the Performance Cycle within
which such Performance Objectives must be satisfied. 
  

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 (i) Vesting and Forfeiture. Subject to Sections 9.3(iii) and 9.4, a Grantee shall become vested
with respect to the Performance Units to the extent that the Performance Objectives set forth in the Agreement are satisfied for the Performance Cycle. 
 (ii) Payment of Awards. Subject to Section 9.3(iii) and 9.4, payment to Grantees in respect of vested Performance Units shall be made as soon as practicable after the last day of the Performance Cycle to
which such Award relates. Subject to Section 9.4, such payments may be made entirely in Shares valued at their Fair Market Value, entirely in cash, or in such combination of Shares and cash as the Committee in its discretion shall determine at
any time prior to such payment; provided, however, that if the Committee in its discretion determines to make such payment entirely or partially in Shares of Restricted Stock, the Committee must determine the extent to which such payment will
be in Shares of Restricted Stock and the terms of such Restricted Stock at the time the Award is granted. 
 9.2. Performance Shares.
The Committee, from time to time, subject to the terms and provisions of the Plan, may grant to any Eligible Individual an Award of Performance Shares, the terms and conditions of which shall be set forth in an Agreement. Each Agreement may require
that an appropriate legend be placed on Share certificates. Awards of Performance Shares shall be subject to the following terms and provisions: 
 (i) Rights of Grantee. Performance Shares shall be issued in the name of the Grantee as soon as reasonably practicable after the Award is granted, or on such other date as the Committee may determine, provided that the Grantee
has executed all documents which the Committee may require as a condition to the issuance of such Performance Shares, which may include an Agreement evidencing the Award, the appropriate blank stock powers and an escrow agreement. If a Grantee shall
fail to execute any documents which the Committee may require within the time period prescribed by the Committee at the time the Award of Performance Shares is granted, the Award shall be null and void. At the discretion of the Committee, Shares
issued in connection with an Award of Performance Shares shall be deposited together with the stock powers with an escrow agent (which may be the Company) designated by the Committee. Unless the Committee determines otherwise as set forth in the
Agreement, upon delivery of the Shares to the escrow agent (which may be in the form of book entry Shares), the Grantee shall have all of the rights of a stockholder with respect to such Shares, including the right to vote the Shares and to receive
all dividends or other distributions paid or made with respect to the Shares. 
 (ii) Non-Transferability. Until any restrictions upon
the Performance Shares awarded to a Grantee shall have lapsed in the manner set forth in Section 9.2(iii) or 9.4, such Performance Shares shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise
hypothecated. 
 (iii) Lapse of Restrictions. Subject to Sections 9.3(iii) and 9.4, restrictions upon Performance Shares awarded
hereunder shall lapse and such Performance Shares shall become vested at such time or times and on such terms, conditions and satisfaction 

  

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of Performance Objectives as the Committee may, in its discretion, determine at the time an Award is granted. Performance Shares with respect to which
Performance Objectives have been attained may also be subject to additional vesting conditions based on continued service or such other conditions as may be established by the Committee at the time the Award is granted. 
 (iv) Treatment of Dividends. At the time the Award of Performance Shares is granted, the Committee may, in its discretion, determine that the
payment to the Grantee of dividends, or a specified portion thereof, declared or paid on Shares represented by such Award which have been issued by the Company to the Grantee shall be (i) deferred until the lapsing of the restrictions imposed
upon such Performance Shares and (ii) held by the Company for the account of the Grantee until such time. In the event that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in Shares (which
shall be held as additional Performance Shares) or held in cash. If deferred dividends are to be held in cash, there may be credited interest on the amount of the account at such times and at a rate per annum as the Committee, in its discretion, may
determine. Payment of deferred dividends in respect of Performance Shares (whether held in cash or in additional Performance Shares), together with interest accrued thereon, if any, shall be made upon the lapsing of restrictions imposed on the
Performance Shares in respect of which the deferred dividends were paid, and any dividends deferred (together with any interest accrued thereon) in respect of any Performance Shares shall be forfeited upon the forfeiture of such Performance Shares.

 (v) Delivery of Shares. Upon the lapse of the restrictions on Performance Shares awarded hereunder, the Committee shall cause a
stock certificate or evidence of book entry Shares to be delivered to the Grantee with respect to such Performance Shares, free of all restrictions hereunder. 
 9.3. Performance Objectives 
 (i) Establishment. Performance Objectives for Performance Awards
may be expressed in terms of earnings per share, earnings (which may be expressed as earnings before specified items), return on assets, return on invested capital, revenue, operating income, cash flow, total shareholder return or any combination
thereof. Performance Objectives may be in respect of the performance of the Company, any of its Subsidiaries, any of its Operating Units or any combination thereof. Performance Objectives may be absolute or relative (to prior performance of the
Company or to the performance of one or more other entities or external indices) and may be expressed in terms of a progression within a specified range. The Performance Objectives with respect to a Performance Cycle shall be established in writing
by the Committee by the earlier of (x) the date on which a quarter of the Performance Cycle has elapsed or (y) the date which is ninety (90) days after the commencement of the Performance Cycle, and in any event while the performance
relating to the Performance Objectives remain substantially uncertain. 
 (ii) Effect of Certain Events. At the time of the granting of
a Performance Award, or at any time thereafter, in either case to the extent permitted under Section 162(m) of the Code and the regulations thereunder without adversely affecting any 

  

 12 

 
Performance Award that is intended to constitute Performance-Based Compensation, the Committee may provide for the manner in which performance will be
measured against the Performance Objectives (or may adjust the Performance Objectives) to reflect the impact of specified corporate transactions (such as a stock split or stock dividend), special charges, accounting or tax law changes and other
extraordinary or nonrecurring events. 
 (iii) Determination of Performance. Prior to the vesting, payment, settlement or lapsing of
any restrictions with respect to any Performance Award that is intended to constitute Performance-Based Compensation made to a Grantee who is subject to Section 162(m) of the Code, the Committee shall certify in writing that the applicable
Performance Objectives have been satisfied to the extent necessary for such Award to qualify as Performance-Based Compensation. The Committee shall not be entitled to exercise any discretion otherwise authorized hereunder with respect to such
Options or Awards if the ability to exercise such discretion or the exercise of such discretion itself would cause the compensation attributable to such Options or Awards to fail to qualify as Performance-Based Compensation. 
 9.4. Effect of Change in Control. Unless the Committee determines otherwise at the time of grant of a Performance Award, in the event of a Change
in Control: 
 (i) With respect to Performance Units, the Grantee shall (i) become vested in all outstanding Performance Units as if all
Performance Objectives had been satisfied at the highest level by the Company and the Grantee and (ii) be entitled to receive in respect of all Performance Units which become vested as a result of a Change in Control a cash payment within ten
(10) days after such Change in Control. 
 (ii) With respect to Performance Shares, all restrictions shall lapse immediately on all
outstanding Performance Shares as if all Performance Objectives had been satisfied at the highest level by the Company and the Grantee. 
 9.5. Non-Transferability. Until the vesting of Performance Units or the lapsing of any restrictions on Performance Shares, as the case may be, such Performance Units or Performance Shares shall not be sold, transferred or otherwise
disposed of and shall not be pledged or otherwise hypothecated. 
 9.6. Performance-Based Compensation Treatment. At the time
of grant of any Performance Award intended to constitute Performance-Based Compensation, the Committee shall so designate such Award. 
 Section 10. Share Awards. The Committee, from time to time, subject to the terms and provisions of the Plan, may grant to any Eligible Individual a Share Award on such terms and conditions as the Committee may determine in its
sole discretion. Share Awards may be made as additional compensation for services rendered by the Eligible Individual or may be in lieu of cash or other compensation to which the Eligible Individual is entitled from the Company. 
 Section 11. Effect of a Termination of Employment on Options and Awards. 
  

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 11.1. Earlier Termination of Employment. Upon the termination of an Optionee’s or
Grantee’s employment with the Company and its Subsidiaries, for any reason whatsoever, except as otherwise set forth in this Section 11, in an Agreement or, with the consent of such individual, as determined by the Committee at any time
prior to or after such termination, Options and Awards granted to such individual will be treated as follows: 
 (i) Any Options and Stock
Appreciation Rights will (A) to the extent not vested and exercisable as of the date of such termination of employment, terminate on the date of such termination of employment and (B) to the extent vested and exercisable as of the date of
such termination of employment, remain exercisable for a period of thirty (30) days following the date of such termination of employment or, in the event of such Optionee’s or Grantee’s death during such thirty (30) day period,
remain exercisable by the estate of the deceased individual until the end of the period of one year following the date of such termination of employment (but in no event beyond the maximum term of the Option or Stock Appreciation Right). 

(ii) Any unvested portion of any Restricted Stock or Stock Units will be immediately forfeited. 
 (iii) Any Performance Shares or Performance Units will terminate. 
 (iv) Any other Awards to the extent not vested will terminate. 
 11.2. Upon Death or Disability.
Except as otherwise provided in an Agreement, in the event an Optionee’s or Grantee’s employment is terminated with the Company and its Subsidiaries as a result of such individual’s death or such individual becoming Disabled, Options
and Awards granted to such individual will be treated as follows: 
 (i) Any Options or Stock Appreciation Rights shall become immediately
exercisable as of the date of such termination of employment, and the Optionee or Grantee, or in the event the Optionee or Grantee is incapacitated and unable to exercise the rights granted hereunder, the individual’s legal guardian or legal
representative, or in the event the Optionee or Grantee dies, the estate of the deceased individual, shall have the right to exercise any rights the Optionee or Grantee would otherwise have had under the Plan for a period of one year after the date
of such termination (but in no event beyond the maximum term of the Option or Stock Appreciation Right). 
 (ii) Any unvested portion of any
Restricted Stock or Stock Units will become immediately vested. 
 (iii) Any Performance Shares or Performance Units will remain outstanding
and the Grantee or the Grantee’s estate will be entitled to a pro-rata portion of the payment otherwise payable in respect of the Award (based on the number of full weeks the Grantee was employed by the Company or a Subsidiary during the
applicable Performance Cycle over the total number of weeks in such Performance Cycle), which will be paid on the date the Award would have been paid if the Grantee had remained employed with the Company or a Subsidiary. 
  

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 11.3. Upon Retirement. Except as otherwise provided in an Agreement, in the event an
Optionee’s or Grantee’s employment with the Company and its Subsidiaries is terminated by reason of such individual’s Retirement, Options and Awards granted to such individual will be treated as follows: 
 (i) With respect to any Options and Stock Appreciation Rights, for a period of 48 months following the date of such Retirement (but in no event beyond
the maximum term of the Option or Stock Appreciation Right), the Options or Stock Appreciation Rights shall remain outstanding and (i) to the extent not then fully vested, will continue to vest in accordance with the applicable vesting
schedule, and (ii) the Optionee or Grantee shall have the right to exercise any rights the individual would otherwise have had under the Plan. Notwithstanding the foregoing, in the event that an Optionee does not exercise an Incentive Stock
Option prior to the expiration of the three-month period after the date of the Optionee’s Retirement, such Option shall be treated as a Nonqualified Stock Option upon exercise. 
 (ii) Any unvested portion of any Restricted Stock or Stock Units will become immediately vested. 
 (iii) Any Performance Shares or Performance Units will remain outstanding and the Grantee will be entitled to a pro-rata portion of the payment otherwise
payable in respect of the Award (based on the number of full weeks the Grantee was employed by the Company or a Subsidiary during the applicable Performance Cycle over the total number of weeks in such Performance Cycle), which will be paid on the
date the Award would have been paid if the Grantee had remained employed with the Company or a Subsidiary. 
 11.4. Upon Termination of
Employment in Connection with Certain Dispositions. Except as otherwise provided in an Agreement, in the event an Optionee’s or Grantee’s employment with the Company and its Subsidiaries is terminated without Cause in connection with a
disposition of one or more restaurants or other assets by the Company or its Subsidiaries, or in connection with a sale or other disposition of a Subsidiary, the Options and Awards granted to such individual will be treated as follows: 

(i) With respect to Options and Stock Appreciation Rights, such Award will remain outstanding and (i) to the extent not then fully vested, will
continue to vest in accordance with the applicable vesting schedule, and (ii) the Optionee or Grantee will have the right to exercise any rights the individual would otherwise have had under the Plan for a period of one year following the date
of such termination of employment (but in no event beyond the maximum term of the Option or Stock Appreciation Right). 
 (ii) Any unvested
portion of any Restricted Stock or Stock Units will become immediately vested. 
 (iii) Any Performance Shares or Performance Units will
remain outstanding and the Grantee will be entitled to a pro-rata portion of the payment otherwise payable in respect of the Award (based on number of full weeks the Grantee was employed by the Company or a Subsidiary during the applicable
Performance Cycle over the total number of weeks in such Performance Cycle), which will be paid on the date the Award would have been paid if the Grantee had remained employed with the Company or a Subsidiary. 
  

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 Section 12. Effect of Change in Common Shares Subject to the Plan. 
 12.1. In the event of a Change in Capitalization, the Committee shall conclusively determine the appropriate adjustments, if any, to (i) the maximum
number and class of Shares or other stock or securities with respect to which Options or Awards may be granted under the Plan, (ii) the maximum number and class of Shares or other stock or securities with respect to which Options or Awards may
be granted to any Eligible Individual in any calendar year, (iii) the number and class of Shares or other stock or securities which are subject to outstanding Options or Awards granted under the Plan and the exercise price therefor, if
applicable, (iv) the number and class of Shares or other securities in respect of which Formula Restricted Stock Units are to be granted under Section 5 and (v) the Performance Objectives. 
 12.2. Any such adjustment in the Shares or other stock or securities (i) subject to outstanding Incentive Stock Options (including any adjustments
in the exercise price) shall be made in such manner as not to constitute a modification as defined by Section 424(h)(3) of the Code and only to the extent otherwise permitted by Sections 422 and 424 of the Code or (ii) subject to
outstanding Options or Awards that are intended to qualify as Performance-Based Compensation shall be made in such a manner as not to adversely affect the treatment of the Options or Awards as Performance-Based Compensation. 
 12.3. If, by reason of a Change in Capitalization, a Grantee of an Award shall be entitled to, or an Optionee shall be entitled to exercise an Option
with respect to, new, additional or different shares of stock or securities of the Company or any other corporation, such new, additional or different shares shall thereupon be subject to all of the conditions, restrictions and performance criteria
which were applicable to the Shares subject to the Award or Option, as the case may be, prior to such Change in Capitalization. 
 Section 13. Effect of Certain Transactions. Subject to Sections 4.1(iii)(b), 4.2(iii), 6.6, 7.6 and 9.4 or as otherwise provided in an Agreement, following (a) the liquidation or dissolution of the Company or (b) a
merger or consolidation of the Company (a “Transaction”), either (i) each outstanding Option or Award shall be treated as provided for in the agreement entered into in connection with the Transaction or (ii) if not so
provided in such agreement, each Optionee and Grantee shall be entitled to receive in respect of each Share subject to any outstanding Options or Awards, as the case may be, upon exercise of any Option or payment or transfer in respect of any Award,
the same number and kind of stock, securities, cash, property or other consideration that each holder of a Share was entitled to receive in the Transaction in respect of a Share; provided, however, that such stock, securities, cash, property,
or other consideration shall remain subject to all of the conditions, restrictions and performance criteria which were applicable to the Options and Awards prior to such Transaction. The treatment of any Option or Award as provided in this
Section 13 shall be conclusively presumed to be appropriate for purposes of Section 12. 
 Section 14. Listing and
Registration of Common Shares. If at any time the Board shall determine that listing, registration or qualification of the Shares covered by an Option or 

  

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Award upon any securities exchange or under any state, provincial or federal law or the consent or the approval of any governmental regulatory body is
necessary or desirable as a condition of or in connection with the purchase of Shares under the Option, the Option may not be exercised in whole or in part, and Shares shall not be delivered in connection with any other Award, unless and until such
listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board. Any person exercising an Option or receiving Shares in connection with any other Award shall make such
representations and agreements and furnish such information as the Board or the Committee may request to assure compliance with the foregoing or any other applicable legal requirements. 
 Section 15. Misconduct. In the event that an Optionee or Grantee has (i) used for profit or disclosed to unauthorized persons,
confidential information or trade secrets of the Company or its Subsidiaries, or (ii) breached any contract with or violated any fiduciary obligation to the Company or its Subsidiaries, or (iii) engaged in unlawful trading in the
securities of the Company or its Subsidiaries or of another company based on information gained as a result of that Optionee’s or Grantee’s employment with, or status as a director to, the Company or its Subsidiaries, then that Optionee or
Grantee shall forfeit all rights under any outstanding Option or Award granted under the Plan and all of that Optionee’s or Grantee’s outstanding Options or Awards shall automatically terminate, unless the Committee shall determine
otherwise. 
 Section 16. Payment Following Death or Incapacity. In the event any amounts or Shares become payable or issuable
pursuant to an Award or Option after the Grantee or Optionee dies or becomes incapacitated, such amounts or Shares shall be paid or issued, in the case of death, to the decedent’s estate or, in the case of incapacity, to the Grantee’s or
Optionee’s legal guardian or legal representative. 
 Section 17. Foreign Employees. Without amending the Plan, the
Committee may grant Options or Awards to Eligible Individuals who are foreign nationals on such terms and conditions different from those specified in the Plan as may in the judgment of the Committee be necessary or desirable to foster and promote
achievement of the purposes of the Plan, and, in furtherance of such purposes, the Committee may make such modifications, amendments, procedures, and the like as may be necessary or advisable to comply with provisions of laws of other countries in
which the Company or its Subsidiaries operate or have employees. 
 Section 18. Deferral of Payments or Vesting. Notwithstanding
anything to the contrary contained herein, the Committee may provide for the deferral of the issuance or vesting of Shares or the payment of cash in respect of an Option or Award granted under the Plan; provided that such deferral shall be
provided at the time of grant of an Option or Award. The terms and conditions of any such deferral shall be set forth in the Agreement evidencing such Option or Award. 
 Section 19. No Rights to Options, Awards or Employment. No individual shall have any claim or right to be granted an Option or Award under the Plan. Having received an Option or Award under the Plan shall
not give an individual any right to receive any other grant under the Plan. No Optionee or Grantee shall have any rights to or interest in any Option or Award except as set forth herein. Neither the Plan nor any action taken herein shall be
construed as giving any individual any right to be retained in the employ of the Company or its Subsidiaries, or as a member of the Board. 
  

 17 

 Section 20. Multiple Agreements. The terms of each Option or Award may differ from other
Options or Awards granted under the Plan at the same time, or at some other time. The Committee may also grant more than one Option or Award to a given Eligible Individual during the term of the Plan, either in addition to, or in substitution for,
one or more Options or Awards previously granted to that Eligible Individual. 
 Section 21. Withholding of Taxes. 
 21.1. At such times as an Optionee or Grantee recognizes taxable income in connection with the receipt of Shares or cash hereunder (a “Taxable
Event”), the Optionee or Grantee shall pay to the Company an amount equal to the federal, state, provincial and local income taxes and other amounts as may be required by law to be withheld by the Company in connection with the Taxable
Event (the “Withholding Taxes”) prior to the issuance, or release from escrow, of such Shares or the payment of such cash. The Company shall have the right to deduct from any payment of cash to an Optionee or Grantee an amount equal
to the Withholding Taxes in satisfaction of the obligation to pay Withholding Taxes. In satisfaction of the obligation to pay Withholding Taxes to the Company, an Optionee or Grantee may elect to have withheld a portion of the Shares then issuable
to him or her having an aggregate Fair Market Value equal to the Withholding Taxes. 
 21.2. If an Optionee makes a disposition, within the
meaning of Section 424(c) of the Code and regulations promulgated thereunder, of any Share or Shares issued to such Optionee pursuant to the exercise of an Incentive Stock Option within the two-year period commencing on the day after the date
of the grant or within the one-year period commencing on the day after the date of transfer of such Share or Shares to the Optionee pursuant to such exercise, the Optionee shall, within ten (10) days of such disposition, notify the Company
thereof, by delivery of written notice to the Company at its principal executive office. 
 Section 22. Amendment or Termination;
Duration. Subject to applicable regulatory requirements, the Board may amend or terminate the Plan at any time, provided that the Board shall not make any change in the Options or Awards that will impair the rights of the Optionee or Grantee
therein, without the consent of the Optionee or Grantee. 
 Section 23. Other Actions. The Plan shall not restrict the authority
of the Committee, the Board or of the Company or its Subsidiaries for proper corporate purposes to grant or assume stock options, other than under the Plan, to or with respect to any employee, director or other person. The adoption of the Plan by
the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock options otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 
  

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 Section 24. Costs and Expenses. Except as provided in Section 21 hereof with respect to
taxes, the costs and expenses of administering the Plan shall be borne by the Company, and shall not be charged to any grant nor to any Employee receiving a grant. 
 Section 25. Plan Unfunded. The Plan shall be unfunded. Except for reserving a sufficient number of authorized Shares to the extent required by law to meet the requirements of the Plan, the Company shall
not be required to establish any special or separate fund or to make any other segregation of assets to assure payment of any grant under the Plan. 
 Section 26. Laws Governing Plan. The Plan shall be construed under and governed by the laws of the State of Delaware. 
 Section 27. Captions. The captions to the several sections hereof are not a part of the Plan, but are merely guides or labels to assist in locating and reading the several sections hereof. 
 Section 28. Effective Date. The effective date of the Plan, as determined by the Board, shall be the date the Company’s initial public
offering of its common stock. 
 Section 29. Definitions. Unless the context clearly indicates otherwise, the following terms,
when used in the Plan, shall have the respective meanings set forth below: 
 29.1. “Agreement” means the written agreement
between the Company and an Optionee or Grantee evidencing the grant of an Option or Award and setting forth the terms and conditions thereof. 
 29.2. “Award” means a grant of Restricted Stock, a Stock Unit, a Formula Restricted Stock Unit, a Stock Appreciation Right, a Performance Award, a Dividend Equivalent Right, a Share Award or any or all of them. 

29.3. “Board” means the Board of Directors of the Company. 
 29.4. “Cause” means: 
 (i)
in the case of an Eligible Director, the commission of an act of fraud or intentional misrepresentation or an act of embezzlement, misappropriation or conversion of assets or opportunities of the Company or any of its Subsidiaries; and 

(ii) in the case of an Optionee or Grantee whose employment with the Company or a Subsidiary is subject to the terms of an employment agreement
between such Optionee or Grantee and the Company or Subsidiary, which employment agreement includes a definition of “Cause,” the term “Cause” as used in the Plan or any Agreement shall have the meaning set forth in such
employment agreement during the period that such employment agreement remains in effect following a Change in Control; and 
 (iii) in all
other cases, (a) intentional failure to perform reasonably assigned duties, (b) dishonesty or willful misconduct in the performance of duties, (c) intentional violation of Company or applicable Subsidiary policy, (d) involvement
in a transaction in connection with the performance of duties to the Company or any of its 

  

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Subsidiaries which transaction is adverse to the interests of the Company or any of its Subsidiaries and which is engaged in for personal profit or
(e) willful violation of any law, rule or regulation in connection with the performance of duties (other than traffic violations or similar offenses); provided, however, that following a Change in Control clause (a) of this
Section 29.4(iii) shall not constitute “Cause.” 
 29.5. “Change in Capitalization” means any increase or
reduction in the number of Shares, or any change (including, but not limited to, in the case of a spin-off, dividend or other distribution in respect of Shares, a change in value) in the Shares or exchange of Shares for a different number or kind of
shares or other securities of the Company or another corporation, by reason of a reclassification, recapitalization, merger, consolidation, reorganization, spin-off, split-up, issuance of warrants or rights or debentures, stock dividend, stock split
or reverse stock split, cash dividend, property dividend, combination or exchange of shares, repurchase of shares, change in corporate structure or otherwise. 
 29.6. “Change in Control” shall mean the occurrence of: 
 (i) An acquisition (other than
directly from the Company) of any common stock or other voting securities of the Company entitled to vote generally for the election of directors (the “Voting Securities”) by any “Person” (as the term person is used
for purposes of Section 13(d) or 14(d) of the Exchange Act, immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or
more of the then outstanding shares of the Company’s common stock or the combined voting power of the Company’s then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred, Voting
Securities which are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by
(i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned,
directly or indirectly, by the Company (for purposes of this definition, as “Subsidiary”), (ii) the Company or its Subsidiaries, or (iii) any Person in connection with a “Non-Control Transaction” (as hereinafter
defined); 
 (ii) The individuals who, as of the Effective Date, are members of the Board (the “Incumbent Board”), cease for
any reason (other than directors resigning and transitioning in connection with a complete spin-off of Shares owned by Wendy’s to its shareholders) to constitute at least seventy percent (70%) of the members of the Board; provided,
however, that if the election, or nomination for election by the Company’s common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of the Plan, be
considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of an actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Proxy Contest; or 
  

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 (iii) The consummation of: 
 (a) A merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued, unless such merger,
consolidation or reorganization is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean a merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued
where: 
 (1) the stockholders of the Company, immediately before such merger, consolidation or reorganization, own directly or indirectly
immediately following such merger, consolidation or reorganization, at least seventy percent (70%) of the combined voting power of the outstanding voting securities of the corporation resulting from such merger or consolidation or
reorganization (the “Surviving Company”) in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation or reorganization, 
 (2) the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger, consolidation
or reorganization constitute at least two-thirds of the members of the board of directors of the Surviving Company, or a corporation beneficially directly or indirectly owning a majority of the Voting Securities of the Surviving Company, and

 (3) no Person other than (i) the Company, (ii) any Subsidiary, (iii) any employee benefit plan (or any trust forming a part
thereof) that, immediately prior to such merger, consolidation or reorganization, was maintained by the Company or any Subsidiary, or (iv) any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial
Ownership of thirty percent (30%) or more of the then outstanding Voting Securities or common stock of the Company, has Beneficial Ownership of thirty percent (30%) or more of the combined voting power of the Surviving Company’s then
outstanding voting securities or its common stock; 
 (b) A complete liquidation or dissolution of the Company; or 
 (c) The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary).

 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired
Beneficial Ownership of more than the permitted amount of the then outstanding common stock or Voting Securities as a result of the acquisition of common stock or Voting Securities by the Company which, by reducing the number of shares of common
stock or Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the
acquisition of common stock or Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional common stock or Voting Securities which increases the percentage of
the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 
  

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 If an Eligible Individual’s employment is terminated by the Company without Cause prior to the date of a Change in
Control but the Eligible Individual reasonably demonstrates that the termination (A) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a change in control or (B) otherwise
arose in connection with, or in anticipation of, a Change in Control which has been threatened or proposed, such termination shall be deemed to have occurred after a Change in Control for purposes of the Plan provided a Change in Control shall
actually have occurred. 
 29.7. “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
 29.8. “Disabled,” with regard to any particular Optionee or Grantee, shall have the meaning (i) set forth in Section 22(e)(3)
of the Code, in the context of determining the period during which Incentive Stock Options granted to an Optionee may be exercised and (ii) set forth in the Company’s long term disability program applicable to such Optionee or Grantee in
all other contexts or, if no long term disability program is applicable to such Optionee or Grantee, as set forth in the Company’s long term disability program generally applicable to officers of the Company. 
 29.9. “Dividend Equivalent Right” means a right to receive all or some portion of the cash dividends that are or would be payable with
respect to Shares. 
 29.10. “Eligible Director” means a member of the Board who is not an employee of the Company or any of
its Subsidiaries. 
 29.11. “Eligible Individual” means any of the following individuals who is designated by the Committee
as eligible to receive Options or Awards subject to the conditions set forth herein: (a) any Eligible Director, (b) any employee of the Company or a Subsidiary, or (c) any individual to whom the Company or a Subsidiary has extended a
formal, written offer of employment. 
 29.12. “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

 29.13. “Fair Market Value” on any date shall be equal to the mean of the high and low prices at which Shares are traded
on the Toronto Stock Exchange on such date or the mean of the high and low prices at which the Shares are traded on the New York Stock Exchange, as designated by the Committee. 
 29.14. “Formula Restricted Stock Units” means Formula Restricted Stock Units granted pursuant to Section 5. 
 29.15. “Grantee” means a person to whom an Award has been granted under the Plan. 
 29.16. “Incentive Stock Option” means an Option satisfying the requirements of Section 422 of the Code and designated by the
Committee as an Incentive Stock Option. 
  

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 29.17. “Nonemployee Director” means a director of the Company who is a “nonemployee
director” within the meaning of Rule 16b-3 promulgated under the Exchange Act. 
 29.18. “Nonqualified Stock Option”
means an Option which is not an Incentive Stock Option. 
 29.19. “Operating Unit” means any operating unit or division of
the Company designated as a Operating Unit by the Committee. 
 29.20. “Option” means a Nonqualified Stock Option or an
Incentive Stock Option or either of them. 
 29.21. “Optionee” means a person to whom an Option has been granted under the
Plan. 
 29.22. “Option Price” means the price at which a Share covered by an Option granted hereunder may be purchased.

 29.23. “Performance Awards” means Performance Units, Performance Shares or either or both of them. 
 29.24. “Performance-Based Compensation” means any Option or Award that is intended to constitute “performance-based
compensation” within the meaning of Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder. 
 29.25.
“Performance Cycle” means the time period specified by the Committee at the time Performance Awards are granted during which the performance of the Company, a Subsidiary or a Operating Unit will be measured. 
 29.26. “Performance Objectives” has the meaning set forth in Section 9.3. 
 29.27. “Performance Shares” means Shares issued or transferred to an Eligible Individual under Section 9.2. 
 29.28. “Performance Units” means Performance Units granted to an Eligible Individual under Section 9.1. 
 29.29. “Plan” means this Tim Hortons Inc. 2006 Stock Incentive Plan, as amended and restated from time to time. 
 29.30. “Restricted Stock” means Shares issued or transferred to an Eligible Individual pursuant to Section 4.1. 
 29.31. “Retirement” means (i) in the case of an employee of the Company or a Subsidiary, the definition provided for such term in
an Agreement and (ii) in the case of a member of the Board, termination of membership on the Board at or after attaining age 55 with at least three (3) years of service as a member of the Board, other than by reason of death, Disability or
for Cause. 
  

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 29.32. “Share Award” means an Award of Shares granted pursuant to Section 10.

 29.33. “Shares” means shares of the common stock, par value $.001 per share, of the Company and any other securities into
which such shares are changed or for which such shares are exchanged. 
 29.34. “Stock Appreciation Right” means a right to
receive all or some portion of the increase in the value of the Shares as provided in Section 7 hereof. 
 29.35. “Stock
Unit” means a right granted to an Eligible Individual under Section 4.2 representing a number of hypothetical Shares. 
 Section 30. Toronto Stock Exchange Definitions. For the purposes of Sections 30 and 31, “insider”, “security based compensation arrangements” and “service provider” have the following meanings:

 30.1 “Insider” means, 
 (i) every director or senior officer of the Company; 
 (ii) every director or senior officer of a company
that is itself an insider or subsidiary of the Company; 
 (iii) any person or company who beneficially owns, directly or indirectly, voting
securities of the Company or who exercises control or direction over voting securities of the Company or a combination of both carrying more than 10% of the voting rights attached to all voting securities of the Company for the time being
outstanding other than voting securities held by the person or company as underwriter in the course of a distribution; and 
 (iv) the
Company where it has purchased, redeemed or otherwise acquired any of its securities, for so long as it holds any of its securities. 
 30.2
“Security Based Compensation Arrangements” include: 
 (i) stock option plans for the benefit of employees, insiders,
service providers or any one of such groups; 
 (ii) individual stock options granted to employees, service providers or insiders if not
granted pursuant to a plan previously approved by the Company’s securityholders; 
 (iii) stock purchase plans where the Company
provides financial assistance or where the Company matches the whole or a portion of the securities being purchased; 
 (iv) stock
appreciation rights involving issuances of securities from treasury; 
  

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 (v) any other compensation or incentive mechanism involving the issuance or potential issuances of
securities of the Company; and 
 (vi) security purchases from treasury by an employee, insider or service provider which is financially
assisted by the Company by any means whatsoever. 
 For greater certainty, arrangements which do not involve the issuance from treasury or potential issuance
from treasury of securities of the Company do not constitute security based compensation arrangements. 
 30.3 “Service
provider” is a person or company engaged by the Company to provide services for an initial, renewable or extended period of twelve months or more. 
 Section 31. Toronto Stock Exchange Requirements. The number of shares of common stock issuable to Insiders, at any time, under all Security Based Compensation Arrangements of the Company, may not exceed
10% of the Company’s issued and outstanding shares of common stock; and the number of shares of common stock issued to Insiders within any one year period, under all Security Based Compensation Arrangements of the Company, may not exceed 10% of
the Company’s issued and outstanding shares of common stock. 
  

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