VITRAN CORP INC
EX-10.3
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<TYPE>EX-10.3
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-10.3
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<TITLE> EX-10.3 </TITLE>
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>DEFERRED SHARE UNIT PLAN FOR SENIOR EXECUTIVES<BR>
OF VITRAN CORPORATION INC.</B></FONT>



<P align="center" style="font-size: 12pt"><B>Adopted with effect from January&nbsp;1, 2006</B>



<P align="left" style="font-size: 12pt"><B>1.&nbsp;PREAMBLE AND DEFINITIONS</B>



<P align="left" style="margin-left:4%; font-size: 12pt">1.1 Title



<P align="left" style="margin-left:8%; font-size: 12pt">The Plan herein described shall be called the &#147;Deferred Share Unit Plan for Senior
Executives of Vitran Corporation Inc.&#148;.



<P align="left" style="margin-left:4%; font-size: 12pt">1.2 Purpose of the Plan



<P align="left" style="margin-left:8%; font-size: 12pt">The purpose of the Plan is to reward Senior Executives for long-term employment with
the Corporation in lieu of a pension plan and to ensure an alignment of interests
between Senior Executives and the shareholders of the Corporation.


<P align="left" style="font-size: 12pt; text-indent: 4%">1.3 Definitions


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Affiliate&#148; </B>means an affiliate of the Corporation as the term
&#147;affiliate&#148; is defined in paragraph 8 of Canada Revenue Agency Interpretation
Bulletin IT-337R4, <I>Retiring Allowances</I>.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Annual Entitlement&#148; </B>(&#147;AE&#148;) means the amount determined by
adding the Part&nbsp;Year Entitlement (&#147;PYE&#148;) to the Category Rank Entitlement
(&#147;CRE&#148;) multiplied by each full year of employment after the eligibility
requirements of paragraph 3.2 are satisfied, which would include the current
year, not to be greater than the Maximum Annual Category Rank Entitlement
(&#147;MACRE&#148;).</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:12%; font-size: 12pt">AE = PYE &#043; (CRE * full years employment no.) &#060; MACRE


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Board&#148; </B>means the Board of Directors of the Corporation.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Category Rank Entitlement&#148; </B>means the amount prescribed to
each category set out as:</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Category</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Rank Entitlement<BR></TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">1 C.E.O.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,500.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">500.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">250.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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</DIV>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;C.E.O.&#148; </B>means the Chief Executive Officer of the Corporation.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Committee&#148; </B>means the Compensation Committee of the Board.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Conversion Date&#148; </B>means, with respect to any Quarter, the date
used to determine the Market Value for purposes of determining the number of
Deferred Share Units to be awarded in respect of that Quarter to a Senior
Executive, which date shall be the last day of that Quarter, unless another
date is selected by the Committee.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Corporation&#148; </B>means Vitran Corporation Inc. and any successor
corporation whether by amalgamation, merger or otherwise.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Deferred Share Unit&#148; </B>means a bookkeeping entry on the books
of the Corporation, the value of which on any particular date shall be equal to
the Market Value.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Deferred Share Unit Account&#148; </B>has the meaning ascribed thereto in Section
4.1.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Market Value&#148; </B>means, with respect to any particular date, the weighted
average closing price of a Share on the NASDAQ Stock Exchange, or if the Shares
are not listed on the NASDAQ Stock Exchange, on such other stock exchange on
which the Shares are listed, or if the Shares are not listed on any stock
exchange, then on the over-the-counter market, on the five trading days prior
to that date on which at least one board lot of Shares was traded.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Maximum Annual Category Rank Entitlement&#148; </B>means the amount prescribed to
each category set out as:</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Category</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Maximum Entitlement<BR></TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">1 C.E.O.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">20,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">20,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,500.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Part&nbsp;Year Entitlement&#148; </B>means the Quarterly Remuneration amount to which a
Senior Executive is entitled, after the satisfaction of requirements pursuant
paragraph 3.2 and the subsequent completion of one full calendar quarter of
employment with the Corporation.</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt; display: none">1
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 12pt">



</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Quarter&#148; </B>means a fiscal quarter of the Corporation, which, until changed by
the Corporation, shall be the three month period ending March&nbsp;31, June&nbsp;30,
September&nbsp;30, or December&nbsp;31 in any calendar year.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Quarterly Remuneration&#148; </B>means 25% of the Annual Entitlement, or such other
amount as may be established by the C.E.O. from time to time, to which a Senior
Executive is entitled under this Plan in respect of employment by the
Corporation in a Quarter and payable in accordance with Section&nbsp;5.1.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.16</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Senior Executive&#148; </B>means the employees selected by the C.E.O. to be entitled
to the benefits of the Plan.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.17</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Senior Executive&#146;s Redemption Date&#148; </B>has the meaning ascribed thereto in
Section&nbsp;6.1.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.18</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Senior Executive&#146;s Termination Date&#148; </B>means the date of the event, including
death, resignation, retirement or termination causing the Senior Executive to
no longer be an employee of the Corporation, or employee of any Affiliate.
However, if the Corporation has just cause at common law for termination, the
Corporation may terminate the executive and there is no benefit entitlement
pursuant to this Plan.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.19</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Share&#148; </B>means a common share of the Corporation and such other share as is
substituted therefore as a result of amendments to the articles of the
Corporation, reorganization or otherwise, including any rights that form a part
of the common share or substituted share but not including any other rights
that are attached thereto and trade therewith or any other share that is added
thereto.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.20</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Specified Employee&#148; </B>if the employee is a &#147;specified employee&#148; as defined in
s.409A(2)(B)(i) of the Internal Revenue Code, payment pursuant to 6.2 will be 6
months after the Senior Executive&#146;s Termination Date.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.3.21</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#147;Start Date&#148; </B>means the later of the date the Senior Executive was hired by
the Corporation or its affiliate, and the date the Senior Executive assumed
employment at the Corporation or its affiliate by means of merger or
acquisition.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONSTRUCTION AND INTERPRETATION</B></TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>References herein to the masculine include the feminine; references to the
singular include the plural and vice versa, as the context shall require.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Plan shall be governed and interpreted in accordance with the laws of the
Province of Ontario and the laws of Canada applicable hereto.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any provision of the Plan or part hereof is determined to be void or
unenforceable in whole or in part, such determination shall not affect the validity or
enforcement of any other provision or part thereof.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Headings wherever used herein are for reference purposes only and do not limit
or extend the meaning of the provisions herein contained.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ELIGIBILITY</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Corporation has established the Plan effective as of January&nbsp;1, 2006 with
approval from the Committee of the Board. Senior Executives selected by the C.E.O.
will participate in the Plan.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A selected Senior Executive is not eligible for the benefits of the plan until
the completion of one full year of service measured from the Senior Executives Start
Date.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nothing herein contained shall be deemed to give any person the right to be
retained as an employee of the Corporation or any Affiliate.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFERRED SHARE UNIT ACCOUNTS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An account, to be known as a &#147;Deferred Share Unit Account&#148;, shall be
established and maintained by the Corporation for each Senior Executive and shall be
credited with notional grants of the Deferred Share Units to which a Senior Executive
is entitled in accordance with Section&nbsp;5.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFERRED SHARE UNIT GRANTS, DIVIDEND EQUIVALENTS AND REORGANIZATION</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Quarterly Remuneration of a Senior Executive shall be credited to the
Senior Executive&#146;s Deferred Share Unit Account in the form of Deferred Share Units as
of the Conversion Date applicable for the Quarter. The number of Deferred Share Units
to be credited to a Senior Executive&#146;s Deferred Share Unit Account as of a particular
Conversion Date shall be determined by dividing (i)&nbsp;the Senior Executive&#146;s Quarterly
Remuneration for the applicable Quarter by (ii)&nbsp;the Market Value on the particular
Conversion Date. Deferred Share Units will not be fully vested upon being credited to
a Senior Executive&#146;s Deferred Share Unit Account and the Senior Executive&#146;s entitlement
to the payment of the value of such Deferred Share Units upon the Senior Executive&#146;s
Redemption Date, in accordance with Section&nbsp;6, and not until the satisfaction of a
minimum of six years employment with the Corporation measured from the Senior
Executive&#146;s Start Date. If for any reason the Senior Executive does not complete three
years employment with the Corporation, the Corporation is not required to make any
payment to the Senior Executive with respect to units credited to a Senior Executive&#146;s
Deferred Share Unit Account.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whenever cash dividends are paid on the Shares, additional Deferred Share Units
will be credited to the Senior Executive&#146;s Deferred Share Unit Account. The number of
such additional Deferred Share Units will be calculated by dividing the amount of the
cash dividends that would have been paid to such Senior Executive, if the Deferred
Share Units recorded in the Senior Executive&#146;s Deferred Share Unit Account as at the
record date for the cash dividend had been Shares, by the Market Value on the date on
which the dividends are paid on the Shares.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of any stock dividend, stock split, combination or exchange of
&nbsp;shares, merger, arrangement, re-organization, re-capitalization, consolidation,
spin-off or other distribution (other than normal cash dividends) of Corporation assets
to shareholders, or any other similar changes affecting the Shares, such proportionate
adjustments, to reflect such change or changes shall be made with respect to the number
of Deferred Share Units outstanding under the Plan, all as determined by the C.E.O. in
his sole discretion.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For greater certainty, no amount will be paid to, or in respect of, a Senior
Executive under the Plan or pursuant to any other arrangement, and no additional
Deferred Share Units will be granted to a Senior Executive to compensate for a downward
fluctuation in the fair market value of the Shares, nor will any other form of benefit
be conferred upon, or in respect of, a Senior Executive for such purpose.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>REDEMPTION ON RETIREMENT, TERMINATION, RESIGNATION OR DEATH</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of the Deferred Share Units credited to a Senior Executive&#146;s Deferred
Share Unit Account shall be determined, in accordance with Section&nbsp;6.2, as of the date
that is 60&nbsp;days following the Senior Executive&#146;s Termination Date (the &#147;Senior
Executive&#146;s Redemption Date&#148;) and shall be paid to the Senior Executive (or, if the
Senior Executive has died, to his estate) in the form of a single lump sum cash
payment, net of all applicable withholding taxes and other source deductions, 70&nbsp;days
following the Senior Executive&#146;s Termination Date.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of the Deferred Share Units credited to a Senior Executive&#146;s Deferred
Share Unit Account as of the Senior Executive&#146;s Redemption Date shall be determined by
multiplying the number of Deferred Share Units credited to the Senior Executive&#146;s
Deferred Share Unit Account on the Senior Executive&#146;s Redemption Date by the Market
Value on the Senior Executive&#146;s Redemption Date.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CURRENCY</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 12pt">7.1 All references in the Plan to currency refer to lawful United States currency.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SHAREHOLDER RIGHTS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deferred Share Units are not Shares or other securities of the Corporation and
will not entitle a Senior Executive to any shareholder rights, including, without
limitation, voting rights, dividend entitlement or rights on liquidation. Except as
specifically set out herein, no Senior Executive or any other person shall have any
claim or right to any benefits in respect of the Deferred Share Units granted
hereunder.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ADMINISTRATION</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise determined by the Committee, the Plan shall remain an unfunded
and unsecured obligation of the Corporation.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise determined by the Board, the Plan shall be administered by the
C.E.O. The C.E.O. shall have full and complete authority to interpret the Plan and to
make such other determinations as it deems necessary or desirable for the
administration of the Plan. Annually the Committee will review the Plan documents and
Senior Executive Deferred Share Unit Accounts.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Plan may be amended or terminated at any time by the C.E.O., except as to
rights already accrued hereunder by the Senior Executives. Notwithstanding the
foregoing, any amendment or termination of the Plan shall be such that the Plan
continuously meets the requirements of paragraph 6801(d) of the Income Tax Regulations
or any successor provision thereto. In addition any amendment or termination of the
Plan shall be such that the Plan continuously meets the requirements of Section&nbsp;409A of
the internal Revenue code and related regulations.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Corporation will be responsible for all costs relating to the
administration of the Plan.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ASSIGNMENT</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The assignment or transfer of the Deferred Share Units, or any other benefits
under this Plan, shall not be permitted other than by operation of law.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DATE</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">11.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The plan is dated this 10<sup>th</sup> of March&nbsp;2006, with an effective date of
January&nbsp;1, 2006.</TD>
</TR>

</TABLE>



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