Common use of Recapitalized Equity Issuance Clause in Contracts

Recapitalized Equity Issuance. Immediately before the effective time of the Plan, and as a condition precedent to the Plan, Tembec Inc. shall: (i) issue 100,000,000 new common shares (each a "New Common Share" and collectively the "Recapitalized Equity") to replace all of its existing share capital (the "Existing Equity"); and (ii) reserve a sufficient number of additional new common shares in the capital of Tembec Inc. for issuance upon exercise of the Warrants (the "Warrant Shares"). The Recapitalized Equity shall be allocated as set forth in Section 3 below.