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Exhibit 10.19
PLEDGE AND SECURITY AGREEMENT
THIS PLEDGE AND SECURITY AGREEMENT (as it may be amended, restated, supplemented or otherwise modified from time to time, this “Security Agreement”) is entered into as of June 24, 2021 by and among PLAYSTUDIOS, INC., a Delaware corporation (“Holdings”), PLAYSTUDIOS US LLC, a Delaware limited liability company (the “Borrower”), any additional entities which become parties to this Security Agreement by executing a Security Agreement Supplement hereto in substantially the form of Annex I hereto (such additional entities, together with Holdings and the Borrower, each a “Grantor”, and collectively, the “Grantors”) and JPMorgan Chase Bank, N.A., in its capacity as administrative agent (the “Administrative Agent”) for the lenders party to the Credit Agreement referred to below.
PRELIMINARY STATEMENT
The Grantors, the Lenders and the Administrative Agent are entering into a Credit Agreement dated as of the date hereof (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  Each Grantor is entering into this Security Agreement in order to induce the Lenders to enter into and extend credit to the Borrower under the Credit Agreement and to secure the Secured Obligations that it has agreed to guarantee pursuant to Article X of the Credit Agreement.
ACCORDINGLY, the Grantors and the Administrative Agent, on behalf of the Secured Parties, hereby agree as follows:
ARTICLE I
DEFINITIONS
1.1.    Terms Defined in Credit Agreement.  All capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement.
1.2.    Terms Defined in UCC.  Terms defined in the UCC which are not otherwise defined in this Security Agreement are used herein as defined in the UCC.
1.3.    Definitions of Certain Terms Used Herein.  As used in this Security Agreement, in addition to the terms defined in the first paragraph hereof and in the Preliminary Statement, the following terms shall have the following meanings:
“Accounts” shall have the meaning set forth in Article 9 of the UCC.
“Applicable IP Office” means the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency within or, solely in the case of Section 4.7, outside the United States. 
“Article” means a numbered article of this Security Agreement, unless another document is specifically referenced.
“Chattel Paper” shall have the meaning set forth in Article 9 of the UCC.
“Closing Date” means the date of the Credit Agreement.
“Collateral” shall have the meaning set forth in Article II.
“Collateral Access Agreement” means any landlord waiver or other agreement, in form and substance satisfactory to the Administrative Agent, between the Administrative Agent and any third party (including any bailee, consignee, customs broker, or other similar Person) in possession of any Collateral or any landlord of any real property where any Collateral is located, as such landlord waiver or other agreement may be amended, restated, supplemented or otherwise modified from time to time.
“Commercial Tort Claims” means the commercial tort claims as defined in Article 9 of the UCC, including each commercial tort claim specifically described on Exhibit I.
“Commodity Accounts” shall have the meaning set forth in Article 9 of the UCC. 
“Commodity Contracts” shall have the meaning set forth in Article 9 of the UCC.
“Confirmatory Grant” shall have the meaning set forth in Section 3.10(e). 
“Control” shall have the meaning set forth in Article 8 or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the UCC.
“Control Agreement” means, with respect to any Deposit Account, Securities Account, Commodity Account, Securities Entitlement or Commodity Contract, an agreement, in form and substance reasonably satisfactory to the Administrative Agent, with the financial institution or other Person at which such account is maintained or with which such 

entitlement or contract is carried and the Grantor maintaining such account, effective to grant Control over such account to the Administrative Agent.
“Copyrights” means all rights, title and interests (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating to copyrights and all mask works, database and design rights, whether or not registered or published, all registrations and recordations thereof and all applications in connection therewith.
“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.
“Deposit Accounts” shall have the meaning set forth in Article 9 of the UCC.
“Documents” shall have the meaning set forth in Article 9 of the UCC.
“Equipment” shall have the meaning set forth in Article 9 of the UCC.
“Event of Default” means an event described in Section 5.1.
“Excluded Account” means, with respect to any Grantor, any Deposit Account of such Grantor that is used as (i) a payroll, pension, or employee benefits or related employee benefit account, but only if used solely for such purposes, (ii) an escrow account, to the extent such accounts hold deposits of third parties and not that of the Grantors or their respective Subsidiaries and are used solely for such purposes and (iii) any “zero balance” accounts, to the extent that entering into a Control Agreement with respect to “zero balance” accounts is prohibited by the established policies of the applicable depository institution, so long as such policies are applied equally to all similarly situated customers of such depository institution.
“Excluded Equity Interests” means, the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary Holding Company and each CFC directly or indirectly owned by any Grantor, solely to the extent that such Equity Interests represent more than 65% of the issued and outstanding Equity Interests entitled to vote of such Foreign Subsidiary Holding Company or CFC, as applicable, provided, however, that such Foreign Subsidiary Holding Company or CFC was not created for the sole purpose of deeming such Equity Interests to constitute “Excluded Equity Interests” hereunder. 
“Excluded Property” collectively, (i) any permit or license or any contractual obligation entered into by any Grantor (A) that prohibits or requires the consent of any Person other than the Borrower and its Affiliates which has not been obtained as a condition to the creation by such Grantor of a Lien on any right, title or interest in such permit, license or contractual obligation or any Equity Interest related thereto or (B) to the extent that any Requirement of Law applicable thereto prohibits the creation of a Lien thereon, but only, with respect to the prohibition in (A) and (B), to the extent, and for as long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC or any other Requirement of Law, (iii) property owned by any Grantor that is subject to a purchase money Lien or a Capital Lease Obligation permitted under the Credit Agreement if the contractual obligation pursuant to which such Lien is granted (or in the document providing for such Capital Lease Obligation) prohibits or requires the consent of any Person other than a Borrower and its Affiliates which has not been obtained as a condition to the creation of any other Lien on such property, (iv) any equipment (A) to the extent that any Requirement of Law applicable thereto prohibits the creation of a Lien thereon or (B) that the creation of a Lien thereon requires the consent of any Person other than a Borrower or any of its Affiliates which has not been obtained, but only, with respect to the prohibition in (A) and (B), to the extent, and for as long as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC or any other Requirement of Law, (v) any Excluded Equity Interests, (vi) any Excluded Accounts and (vii) any “intent to use” Trademark applications for which a statement of use has not been filed (but only until such statement is filed), to the extent, if any, that, and solely during the period, if any, in which the grant of a security interest therein would impair the validity or enforceability of, or void, such intent-to-use trademark application, or any registration that may issue therefrom, under applicable federal law; provided, however, “Excluded Property” shall not include any proceeds, products, substitutions or replacements of Excluded Property.
“Exhibit” refers to a specific exhibit to this Security Agreement, unless another document is specifically referenced.
“Fixtures” shall have the meaning set forth in Article 9 of the UCC.
“General Intangibles” shall have the meaning set forth in Article 9 of the UCC.
“Goods” shall have the meaning set forth in Article 9 of the UCC.
“Industrial Designs” means all right, title and interest (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating to registered industrial designs and industrial design applications.

“Instruments” shall have the meaning set forth in Article 9 of the UCC.
“Intellectual Property” means all rights, title and interests in or relating to intellectual property and industrial property arising under any Requirement of Law relating thereto, including all U.S. Copyrights, Patents, Industrial Designs, Software, Trademarks, Internet Domain Names, Trade Secrets and IP Licenses and all foreign counterparts thereto, and all divisionals, reversions, continuation, continuations-in-part, reissues, reexaminations, renewals and extensions of, such Intellectual Property. 
“Internet Domain Name” means all right, title and interest (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating to internet domain names. 
“Inventory” shall have the meaning set forth in Article 9 of the UCC.
“Investment Property” shall have the meaning set forth in Article 9 of the UCC.
“IP Ancillary Rights” means, with respect to any Intellectual Property, all income, royalties, proceeds and Liabilities at any time due or payable or asserted under or with respect to any of the foregoing or otherwise with respect to such Intellectual Property throughout the world, including all rights to sue or recover at law or in equity for any past, present or future infringement, misappropriation, dilution, violation or other impairment thereof, and, in each case, all rights to obtain any other IP Ancillary Right throughout the world.
“IP License” means all contractual obligations (and all related IP Ancillary Rights), whether written or oral, granting any right, title and interest in or relating to any Intellectual Property. 
“Lenders” means the lenders party to the Credit Agreement and their successors and assigns.
“Letter-of-Credit Rights” shall have the meaning set forth in Article 9 of the UCC.
“Liabilities” mean all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions, costs, fees, Taxes, commissions, charges, disbursements and expenses (including those incurred upon any appeal or in connection with the preparation for and/or response to any subpoena or request for document production relating thereto), in each case of any kind or nature (including interest accrued thereon or as a result thereto and fees, charges and disbursements of financial, legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or otherwise.  
“Material Intellectual Property” means Intellectual Property that is owned by or licensed to a Grantor and material to the conduct of such Grantor’s business. 
“Material License Agreement” means an IP License covering Material Intellectual Property. 
“Patents” mean all rights, title and interests (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating to letters patent and applications therefor. 
“Pledged Collateral” means all Instruments, Securities and other Investment Property of the Grantors, whether or not physically delivered to the Administrative Agent pursuant to this Security Agreement.
“Receivables” means the Accounts, Chattel Paper, Documents, Investment Property, Instruments and any other rights or claims to receive money which are General Intangibles or which are otherwise included as Collateral.
“Section” means a numbered section of this Security Agreement, unless another document is specifically referenced.
“Secured Parties” shall have the meaning set forth in the Credit Agreement.  
“Security” shall have the meaning set forth in Article 8 of the UCC.
“Security Agreement Supplement” shall mean any Security Agreement Supplement to this Security Agreement in substantially the form of Annex I hereto executed by an entity that becomes a Grantor under this Security Agreement after the date hereof.
“Software” means (a) all computer programs, including source code and object code versions, (b) all data, databases and compilations of data, whether machine readable or otherwise, and (c) all documentation, training materials and configurations related to any of the foregoing.
“Stock Rights” means all dividends, instruments or other distributions and any other right or property which the Grantors shall receive or shall become entitled to receive for any reason whatsoever with respect to, in substitution for or in 

exchange for any Equity Interest constituting Collateral, any right to receive an Equity Interest and any right to receive earnings, in which the Grantors now have or hereafter acquire any right, issued by an issuer of such Equity Interest. 
“Supporting Obligations” shall have the meaning set forth in Article 9 of the UCC.
“Trade Secrets” mean all right, title and interest (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating to proprietary, confidential and/or non-public information, however documented, including but not limited to confidential ideas, know-how, concepts, methods, processes, formulae, reports, data, customer lists, mailing lists, business plans and all other trade secrets. 
“Trademarks” mean all rights, title and interests (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating to trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers and, in each case, all goodwill associated therewith, all registrations and recordations thereof and all applications in connection therewith.
“UCC” means the Uniform Commercial Code, as in effect from time to time, of the State of New York or of any other state the laws of which are required as a result thereof to be applied in connection with the attachment, perfection or priority of, or remedies with respect to, Administrative Agent’s or any other Secured Party’s Lien on any Collateral. 
The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms.
ARTICLE II
GRANT OF SECURITY INTEREST
Each Grantor hereby pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Secured Parties, a security interest in all of its right, title and interest in, to and under all personal property and other assets, whether now owned by or owing to, or hereafter acquired by or arising in favor of such Grantor (including under any trade name or derivations thereof), and whether owned or consigned by or to, or leased from or to, such Grantor, and regardless of where located (all of which will be collectively referred to as the “Collateral”), including:
(i)all Accounts; 
(ii)all Chattel Paper;
(iii)Intellectual Property and IP Ancillary Rights; 
(iv)all Documents; 
(v)all Equipment; 
(vi)all Fixtures; 
(vii)all General Intangibles; 
(viii)all Goods;
(ix)all Instruments;
(x)all Inventory;
(xi)all Investment Property; 
(xii)all cash or cash equivalents; 
(xiii)all letters of credit, Letter-of-Credit Rights and Supporting Obligations;
(xiv)all Deposit Accounts, Securities Accounts and Commodity Accounts with any bank or other financial institution;
(xv)all Commercial Tort Claims; and
(xvi)all accessions to, substitutions for and replacements, proceeds (including Stock Rights), insurance proceeds and products of the foregoing, together with all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto and any General Intangibles at any time evidencing or relating to any of the foregoing;

to secure the prompt and complete payment and performance of the Secured Obligations. Notwithstanding the foregoing, the Collateral shall not include any Excluded Property.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
Each Grantor represents and warrants, and each Grantor that becomes a party to this Security Agreement pursuant to the execution of a Security Agreement Supplement represents and warrants (after giving effect to supplements, if any, to each of the Exhibits hereto with respect to such Grantor as attached to such Security Agreement Supplement), to the Administrative Agent and the Secured Parties that:
3.1. Title, Authorization, Validity, Enforceability, Perfection and Priority.  Such Grantor has good and valid rights in or the power to transfer the Collateral and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all Liens except for Liens permitted under Section 4.1(e), and has full power and authority to grant to the Administrative Agent the security interest in the Collateral pursuant hereto.  The execution and delivery by such Grantor of this Security Agreement has been duly authorized by proper corporate or limited liability company, as applicable, proceedings of such Grantor, and this Security Agreement constitutes a legal valid and binding obligation of such Grantor and creates a security interest which is enforceable against such Grantor in all Collateral it now owns or hereafter acquires, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.  When financing statements have been filed in the appropriate offices against such Grantor in the locations listed on Exhibit H, the Administrative Agent will have a fully perfected first priority security interest in that Collateral of such Grantor in which a security interest may be perfected by filing, subject only to Liens permitted under Section 4.1(e).  
3.2. Type and Jurisdiction of Organization, Organizational and Identification Numbers.  The type of entity of such Grantor, its state or jurisdiction of organization, the organizational number issued to it by its state or jurisdiction of organization and its federal employer identification number are set forth on Exhibit A.  
3.3. Principal Location.  Such Grantor’s mailing address, which shall be its address for notices and other communications provided for herein and the location of its place of business (if it has only one) or its chief executive office (if it has more than one place of business), are disclosed in Exhibit A; such Grantor has no other places of business except those set forth in Exhibit A.
3.4. Collateral Locations.  All of such Grantor’s locations where Collateral with a value in excess of $500,000 is located are listed on Exhibit A.  All of said locations are owned by such Grantor except for locations (i) which are leased by the Grantor as lessee and designated in Part VII(b) of Exhibit A and (ii) at which Inventory is held in a public warehouse or is otherwise held by a bailee or on consignment as designated in Part VII(c) of Exhibit A.
3.5. Deposit Accounts and Securities Accounts.  All of such Grantor’s Deposit Accounts and Securities Accounts are listed on Exhibit B.  Any of such Deposit Accounts constituting Excluded Accounts are so identified on Exhibit B.
3.6. Exact Names.  Such Grantor’s name in which it has executed this Security Agreement is the exact name as it appears in such Grantor’s organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization.  Such Grantor has not, during the past five years, been known by or used any other corporate or fictitious name, or been a party to any merger or consolidation, or been a party to any acquisition.
3.7. Letter-of-Credit Rights and Chattel Paper.  Exhibit C lists all Letter-of-Credit Rights and Chattel Paper of such Grantor.  All action by such Grantor necessary or desirable to protect and perfect the Administrative Agent’s Lien on each item listed on Exhibit C with a face amount in excess of $500,000 (including the delivery of all originals and the placement of a legend on all Chattel Paper as required hereunder) has been duly taken. To the extent required by the prior sentence, the Administrative Agent will have a fully perfected first priority security interest in the Collateral listed on Exhibit C, subject only to Liens permitted under Section 4.1(e).
3.8. Accounts and Chattel Paper.  
(a)The Borrower will use commercially reasonable efforts to ensure that the names of the obligors, amounts owing, due dates and other information with respect to such Grantor’s Accounts and Chattel Paper are and will be correctly stated in all records of such Grantor relating thereto in all material respects and in all invoices with respect thereto in all material respects.
(b)With respect to such Grantor’s Accounts, in each case, except as could not reasonably be expected to result in a Material Adverse Effect, (i) all Accounts represent bona fide sales of Inventory or rendering of services to Account Debtors in the ordinary course of such Grantor’s business and are not evidenced by a judgment, Instrument or Chattel Paper; (ii) except for those provided by applicable law or that would no reasonably be expected to have a Material Adverse Effect, there are no material setoffs, claims or disputes existing or asserted with respect thereto and such Grantor has not made any agreement with any Account Debtor for any extension of time for the payment thereof, any compromise or settlement for 

less than the full amount thereof, any release of any Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance allowed by such Grantor in the ordinary course of its business for prompt payment; (iii) there are no facts, events or occurrences which in any way impair the validity or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records and any invoices and statements with respect thereto except as would not reasonably be expected to have a Material Adverse Effect; (iv) such Grantor has not received any written notice of proceedings or actions which are threatened in writing or pending against any Account Debtor which might result in any material adverse change in such Account Debtor’s financial condition except, in each case, as would not reasonably be expected to have a Material Adverse Effect; and (v) such Grantor has no knowledge that any Account Debtor has become insolvent or is generally unable to pay its debts as they become due in the ordinary course of business except where such failure would not reasonably be expected to have a Material Adverse Effect.  
(c)In addition, with respect to all of such Grantor’s Accounts, to such Grantor’s knowledge (i) the amounts shown on all material invoices and statements with respect thereto are actually and absolutely owing to such Grantor as indicated thereon and are not in any way contingent, and (ii) all material Account Debtors have the capacity to contract, in each case, except as would not reasonably be expected to have a Material Adverse Effect.
3.9. Inventory.  With respect to any of such Grantor’s Inventory (a) as of the Closing Date, such Inventory (other than Inventory in transit in the ordinary course of business and Inventory with a value of less than $500,000 at any one location) is located at one of such Grantor’s locations set forth on Exhibit A, (b) no Inventory (other than Inventory in transit in the ordinary course of business and Inventory with a value of less than $500,000 at any one location) is now, or shall at any time or times hereafter be stored at any other location except as permitted by Section 4.1(g), (c) such Grantor has good, valid and merchantable title to such Inventory and such Inventory is not subject to any Lien or security interest or document whatsoever except for the security interest granted to the Administrative Agent hereunder, for the benefit of the Administrative Agent and Secured Parties, and Permitted Encumbrances and other Liens permitted under Section 6.02 of the Credit Agreement, (d) such Inventory is of good and merchantable quality, free from any defects, other than minor defects that do not interfere with such Grantor’s ability to conduct its business as currently conducted or to utilize such Inventory for their intended purposes, (e) such Inventory is not subject to any Intellectual Property license or other agreement related to Intellectual Property with any third party which would require any consent of any third party upon the sale or disposition of such Inventory or the payment of any monies to any third party upon any such sale or disposition; and (f) the completion of manufacture, sale or other disposition of such Inventory by the Administrative Agent following an Event of Default shall not require the consent of any Person and shall not constitute a breach or default under any contract or agreement to which such Grantor is a party or to which such property is subject; unless, in each case, as otherwise disclosed to the Administrative Agent on Exhibit A. 
3.10. Intellectual Property. 
(a)Exhibit D contains a complete and accurate listing on the Effective Date of the following Intellectual Property such Grantor owns, licenses or otherwise has the right to use: (i) Patents, Trademarks and Copyrights that are registered or subject to applications for registration, and (ii) Internet Domain Names and including for each of the foregoing items (1) the owner, (2) the title, (3) the jurisdiction in which such item has been registered or otherwise arises or in which an application for registration has been filed, and (4) as applicable, the registration or application number and registration or application date.  Such Grantor owns directly or is entitled to use, by license or otherwise, all Intellectual Property necessary for the conduct of such Grantor’s business as currently conducted.  All of the U.S. registrations, applications for registration or applications for issuance of the Intellectual Property are in good standing and are recorded or in the process of being recorded in the name of such Grantor.  
(b)On the Effective Date, all Material Intellectual Property owned by such Grantor is valid, in full force and effect, subsisting, unexpired and enforceable, and no Material Intellectual Property has been abandoned.  No breach or default of any Material License Agreement shall be caused by any of the following, and none of the following shall limit or impair the ownership, use, validity or enforceability of, or any rights of such Grantor in, any Material Intellectual Property:  (i) the consummation of the transactions contemplated by any Loan Document or (ii) any holding, decision, judgment or order rendered by any Governmental Authority.  There are no pending (or, to the knowledge of such Grantor, threatened) actions, investigations, suits, proceedings, audits, claims, demands, orders or disputes challenging the ownership, use, validity, enforceability of, or such Grantor’s rights in, any Material Intellectual Property of such Grantor.  To such Grantor’s knowledge, no Person has been or is infringing, misappropriating, diluting, violating or otherwise impairing any Intellectual Property of such Grantor.  Such Grantor, and to such Grantor’s knowledge each other party thereto, is not in material breach or default of any Material License Agreement. For each IP License executed by such Grantor after the Effective Date, such Grantor shall use commercially reasonable efforts to not agree to a prohibition in such IP License that would prevent such IP License from being Collateral.
(c)Such Grantor has taken or caused to be taken steps so that none of its Material Intellectual Property, the value of which to such Grantor is contingent upon maintenance of the confidentiality thereof, has been disclosed by such Grantor to any Person other than employees, contractors, customers, representatives and agents of such Grantor who are parties to 

customary confidentiality and nondisclosure agreements with such Grantor.  Each employee and contractor of such Grantor involved in development or creation of any Material Intellectual Property has assigned any and all inventions and ideas of such Person in and to such Material Intellectual Property to such Grantor.
(d)Except as set forth in Exhibit D, no settlement or consents, covenants not to sue, nonassertion assurances, or releases have been entered into by such Grantor or exist to which such Grantor is bound that adversely affect its rights to own or use any Intellectual Property except as could not be reasonably expected to result in a Material Adverse Effect, in each case individually or in the aggregate.
(e)None of the proprietary Software licensed or distributed by such Grantor is subject to any "copyleft" or other obligation or condition, including any obligation or condition under any "open source" license, such as the GNU Public License, Lesser GNU Public License or Mozilla Public License, that would require or condition the use or distribution of such Software on the disclosure, license or distribution of any source code for any portion of the proprietary Software that is licensed or distributed by such Grantor, except as would not reasonably be expected to have a Material Adverse Effect.
(f)This Security Agreement is effective to create a valid and continuing Lien on such Grantor’s Copyrights, IP Licenses, Patents and Trademarks and, upon filing with the Applicable IP Office of the Confirmatory Grant of Security Interest in Copyrights, the Confirmatory Grant of Security Interest in Patents and the Confirmatory Grant of Security Interest in Trademarks (each, a “Confirmatory Grant”), and the filing of appropriate financing statements in the jurisdictions listed in Exhibit H hereto, all action necessary or desirable to protect and perfect the security interest in, to and on such Grantor’s Patents, Trademarks, Copyrights, or IP Licenses have been taken and such perfected security interest is enforceable as such as against any and all creditors of and purchasers from such Grantor.  Such Grantor has no interest in any Copyright that is necessary in connection with the operation of such Grantor’s business, except for those Copyrights identified in Exhibit D attached hereto which have been registered with the United States Copyright Office.   
3.11. Filing Requirements.  None of its Equipment with a value in excess of $500,000 is covered by any certificate of title, except for the vehicles described in Part I of Exhibit E.  None of the Collateral owned by it is of a type for which security interests or liens may be perfected by filing under any federal statute except for (a) the vehicles described in Part II of Exhibit E and (b) Patents, Trademarks and Copyrights held by such Grantor and described in Exhibit D.  The legal description, county and street address of each property on which any Fixtures with a value in excess of $500,000 are located is set forth in Exhibit F together with the name and address of the record owner of each such property.
3.12. No Financing Statements, Security Agreements.  No financing statement or security agreement or federal intellectual property filing describing all or any portion of the Collateral which has not lapsed or been terminated (by a filing authorized by the secured party in respect thereof) naming such Grantor as debtor has been filed or is of record in any jurisdiction except for financing statements or security agreements or federal intellectual property filings (a) naming the Administrative Agent on behalf of the Secured Parties as the secured party and (b) in respect to other Liens permitted under Section 6.02 of the Credit Agreement. 
3.13. Pledged Collateral.  
(a)Exhibit G sets forth a complete and accurate list of all of the Pledged Collateral owned by such Grantor.  Such Grantor is the direct, sole beneficial owner and sole holder of record of the Pledged Collateral listed on Exhibit G as being owned by it, free and clear of any Liens, except for the security interest granted to the Administrative Agent for the benefit of the Secured Parties hereunder and Permitted Encumbrances.  Such Grantor further represents and warrants that (i) all Pledged Collateral owned by it constituting an Equity Interest has been (to the extent such concepts are relevant with respect to such Pledged Collateral) duly authorized, validly issued, are fully paid and non‐assessable, (ii) with respect to any certificates delivered to the Administrative Agent representing an Equity Interest, either such certificates are Securities as defined in Article 8 of the UCC as a result of actions by the issuer or otherwise, or, if such certificates are not Securities, such Grantor has so informed the Administrative Agent so that the Administrative Agent may take steps to perfect its security interest therein as a General Intangible, (iii) all such Pledged Collateral held by a securities intermediary is covered by a control agreement among such Grantor, the securities intermediary and the Administrative Agent pursuant to which the Administrative Agent has Control and (iv) all Pledged Collateral which represents Indebtedness owed to such Grantor has been duly authorized, authenticated or issued and delivered by the issuer of such Indebtedness, is the legal, valid and binding obligation of such issuer and such issuer is not in default thereunder.  
(b)In addition, (i) none of the Pledged Collateral owned by it has been issued or transferred in violation of the securities registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject, (ii) no options, warrants, calls or commitments of any character whatsoever (A) exist relating to such Pledged Collateral or (B) obligate the issuer of any Equity Interest included in the Pledged Collateral to issue additional Equity Interests, and (iii) no consent, approval, authorization, or other action by, and no giving of notice, filing with, any Governmental Authority or any other Person is required for the pledge by such Grantor of such Pledged Collateral pursuant to this Security Agreement or for the execution, delivery and performance of this Security Agreement by such Grantor, or for 

the exercise by the Administrative Agent of the voting or other rights provided for in this Security Agreement or for the remedies in respect of the Pledged Collateral pursuant to this Security Agreement, except as may be required in connection with such disposition by laws affecting the offering and sale of securities generally.  
(c)Except as set forth in Exhibit G, such Grantor owns 100% of the issued and outstanding  Equity Interests which constitute Pledged Collateral owned by it and none of the Pledged Collateral which represents Indebtedness owed to such Grantor is subordinated in right of payment to other Indebtedness or subject to the terms of an indenture. 
ARTICLE IV
COVENANTS
    From the date of this Security Agreement and thereafter until this Security Agreement is terminated pursuant to the terms hereof, each Grantor party hereto as of the date hereof agrees, and from and after the effective date of any Security Agreement Supplement applicable to any Grantor (and after giving effect to supplements, if any, to each of the Exhibits hereto with respect to such subsequent Grantor as attached to such Security Agreement Supplement) and thereafter until this Security Agreement is terminated pursuant to the terms hereof, each such additional Grantor agrees that:
4.1. General.
(a)Collateral Records.  Such Grantor will maintain materially complete and accurate books and records with respect to the Collateral owned by it, and furnish to the Administrative Agent with sufficient copies for each of the Lenders, such reports relating to such Collateral as the Administrative Agent shall from time to time reasonably request. 
(b)Authorization to File Financing Statements; Ratification.  Such Grantor hereby authorizes the Administrative Agent to file, and if requested will deliver to the Administrative Agent, all financing statements or amendments thereto, federal intellectual property filings with the United States Patent and Trademark Office and the United States Copyright Office and other documents and take such other actions as may from time to time be reasonably requested by the Administrative Agent in order to maintain a first priority perfected security interest in and, if applicable, Control of, the Collateral owned by such Grantor. Any financing statement filed by the Administrative Agent may be filed in any filing office in any UCC jurisdiction and may (i) indicate such Grantor’s Collateral (1) as all assets of the Grantor or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction, or (2) by any other description which reasonably approximates the description contained in this Security Agreement, and (ii) contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including (A) whether such Grantor is an organization, the type of organization and any organization identification number issued to such Grantor and (B) in the case of a financing statement filed as a fixture filing or indicating such Grantor’s Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the Collateral relates.  Such Grantor also agrees to furnish any such information described in the foregoing sentence to the Administrative Agent promptly upon request.  Such Grantor also ratifies its authorization for the Administrative Agent to have filed in any UCC jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof. 
(c)Further Assurances.  Such Grantor will, if so reasonably requested by the Administrative Agent, furnish to the Administrative Agent, as often as the Administrative Agent reasonably requests, statements and schedules further identifying and describing the Collateral owned by it and such other reports and information in connection with its Collateral as the Administrative Agent may reasonably request, all in such detail as the Administrative Agent may specify.  Such Grantor also agrees to take any and all actions necessary to defend title to the Collateral against all persons and to defend the security interest of the Administrative Agent in its Collateral and the priority thereof against any Lien not expressly permitted hereunder.
(d)Disposition of Collateral.  Such Grantor will not sell, lease or otherwise Dispose of the Collateral except for Dispositions specifically permitted pursuant to Section 6.05 of the Credit Agreement. 
(e)Liens.  Such Grantor will not create, incur, or suffer to exist any Lien on the Collateral except (i) the security interest created by this Security Agreement in favor of the Administrative Agent, and (ii) other Liens permitted under Section 6.02 of the Credit Agreement.  
(f)Other Financing Statements.  Such Grantor will not authorize the filing of any financing statement naming it as debtor covering all or any portion of the Collateral owned by it, except for financing statements (i) naming the Administrative Agent on behalf of the Secured Parties as the secured party, and (ii) in respect to other Liens permitted under Section 6.02 of the Credit Agreement.  Such Grantor acknowledges that it is not authorized to file any financing statement filed by or on behalf of the Administrative Agent or amendment or termination statement with respect to any financing statement filed by or on behalf of the Administrative Agent without the prior written consent of the Administrative Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC.

(g)Locations.  Such Grantor will not (i) maintain any Collateral owned by it with a value in excess of $500,000 at any location other than those locations listed on Exhibit A or disclosed to Administrative Agent pursuant to clause (ii) of this Section, (ii) otherwise change, or add to, such locations without the Administrative Agent’s prior written consent, to the extent such consent is required by the Credit Agreement (and if the Administrative Agent gives such consent, such Grantor will concurrently therewith obtain a Collateral Access Agreement for each such location to the extent required herein), or (iii) change its principal place of business or chief executive office from the location identified on Exhibit A, other than as permitted by the Credit Agreement.
(h)Compliance with Terms.  Such Grantor will perform and comply with all obligations in respect of the Collateral owned by it and all agreements to which it is a party or by which it is bound relating to such Collateral.
4.2. Receivables.
(a)Certain Agreements on Receivables.  Such Grantor will not make or agree to make any discount, credit, rebate or other reduction in the original amount owing on a Receivable or accept in satisfaction of a Receivable less than the original amount thereof, except that, prior to the occurrence of an Event of Default, such Grantor may reduce the amount of Accounts arising from the sale of Inventory in accordance with its present policies and in the ordinary course of business.
(b)Collection of Receivables.  Except as otherwise provided in this Security Agreement, such Grantor will collect and enforce, at such Grantor’s sole expense, all amounts due or hereafter due to such Grantor under the Receivables owned by it.
(c)Delivery of Invoices.  Such Grantor will deliver to the Administrative Agent immediately upon its request after the occurrence and during the continuation of an Event of Default duplicate invoices with respect to each Account owned by it bearing such language of assignment as the Administrative Agent shall specify.
(d)Disclosure of Counterclaims on Receivables.  If (i) any material discount, credit or agreement to make a rebate or to otherwise reduce the amount owing on any Receivable owned by such Grantor exists or (ii) if, to the knowledge of such Grantor, any material dispute, setoff, claim, counterclaim or defense exists or has been asserted or threatened with respect to any such Receivable, such Grantor will promptly disclose such fact to the Administrative Agent in writing. 
(e)Electronic Chattel Paper.  Such Grantor shall take all steps necessary to grant the Administrative Agent Control of all electronic chattel paper with a value in excess of $500,000 in accordance with the UCC and all “transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act.
4.3. Inventory and Equipment.
(a)Maintenance of Goods.  Such Grantor will do all things necessary to maintain, preserve, protect and keep its Inventory and the Equipment in good repair and working order and saleable condition, except for damaged or defective goods arising in the ordinary course of such Grantor’s business and except for ordinary wear and tear in respect of the Equipment.
(b)Equipment.  Such Grantor shall not permit any Equipment with a value in excess of $500,000 to become a fixture with respect to real property or to become an accession with respect to other personal property with respect to which real or personal property the Administrative Agent does not have a Lien.  Such Grantor will not, without the Administrative Agent’s prior written consent, alter or remove any identifying symbol or number on any of such Grantor’s Equipment constituting Collateral.
4.4. Delivery of Instruments, Securities, Chattel Paper and Documents.  Such Grantor will (a) deliver to the Administrative Agent immediately upon execution of this Security Agreement the originals of all Chattel Paper, Securities and Instruments with a value in excess of $500,000 constituting Collateral owned by it (if any then exist), (b) hold in trust for the Administrative Agent upon receipt and immediately thereafter deliver to the Administrative Agent any Chattel Paper, Securities and Instruments with a value in excess of $500,000 constituting Collateral, (c) upon the Administrative Agent’s request, deliver to the Administrative Agent (and thereafter hold in trust for the Administrative Agent upon receipt and immediately deliver to the Administrative Agent) any Document evidencing or constituting Collateral with a value in excess of $500,000.
4.5. Uncertificated Pledged Collateral.  Such Grantor will permit the Administrative Agent from time to time to cause the appropriate issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types of Pledged Collateral owned by it not represented by certificates to mark their books and records with the numbers and face amounts of all such uncertificated securities or other types of Pledged Collateral not represented by certificates and all rollovers and replacements therefor to reflect the Lien of the Administrative Agent granted pursuant to this Security Agreement.  With respect to any Pledged Collateral owned by it, such Grantor will take any actions necessary to cause (a) the issuers of uncertificated securities which are Pledged Collateral and (b) any securities intermediary which is the holder of any such Pledged Collateral, to cause the 

Administrative Agent to have and retain Control over such Pledged Collateral.  Without limiting the foregoing, such Grantor will, with respect to any such Pledged Collateral held with a securities intermediary, cause such securities intermediary to enter into a control agreement with the Administrative Agent, in form and substance satisfactory to the Administrative Agent, giving the Administrative Agent Control. 
4.6. Pledged Collateral.
(a)Changes in Capital Structure of Issuers.  Such Grantor will not (i) permit or suffer any issuer of an Equity Interest constituting Pledged Collateral owned by it to dissolve, merge, liquidate, retire any of its Equity Interests or other Instruments or Securities evidencing ownership, reduce its capital, sell or encumber all or substantially all of its assets (except for Permitted Encumbrances and Dispositions permitted pursuant to Section 4.1(d)) or merge or consolidate with any other entity, or (ii) vote any such Pledged Collateral in favor of any of the foregoing.
(b)Issuance of Additional Securities.  Such Grantor will not permit or suffer the issuer of an Equity Interest constituting Pledged Collateral owned by it to issue additional Equity Interests, any right to receive the same or any right to receive earnings, except to a Grantor.
(c)Registration of Pledged Collateral.  Such Grantor will permit any registerable Pledged Collateral to be registered in the name of the Administrative Agent or its nominee at any time at the option of the Required Lenders.
(d)Exercise of Rights in Pledged Collateral.  
(i)Without in any way limiting the foregoing and subject to clause (ii) below, such Grantor shall have the right to exercise all voting rights or other rights relating to the Pledged Collateral owned by it for all purposes not inconsistent with this Security Agreement, the Credit Agreement or any other Loan Document; provided however, that no vote or other right shall be exercised or action taken which would have the effect of impairing the rights of the Administrative Agent in respect of such Pledged Collateral.
(ii)Such Grantor will permit the Administrative Agent or its nominee at any time after the occurrence of an Event of Default, upon notice to such Grantor, to exercise all voting rights or other rights relating to the Pledged Collateral owned by it, including, without limitation, exchange, subscription or any other rights, privileges, or options pertaining to any Equity Interest or Investment Property constituting Pledged Collateral as if it were the absolute owner thereof.
(iii)Such Grantor shall be entitled to collect and receive for its own use all cash dividends and interest paid in respect of the Pledged Collateral owned by it to the extent not in violation of the Credit Agreement other than any of the following distributions and payments (collectively referred to as the “Excluded Payments”): (A) dividends and interest paid or payable other than in cash in respect of such Pledged Collateral, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Pledged Collateral;  (B) dividends and other distributions paid or payable in cash in respect of such Pledged Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in capital of an issuer; and (C) cash paid, payable or otherwise distributed, in respect of principal of, or in redemption of, or in exchange for, such Pledged Collateral; provided however, that until actually paid, all rights to such distributions shall remain subject to the Lien created by this Security Agreement; and
(iv)All Excluded Payments and all other distributions in respect of any of the Pledged Collateral owned by such Grantor, whenever paid or made, shall be delivered to the Administrative Agent to hold as Pledged Collateral and shall, if received by such Grantor, be received in trust for the benefit of the Administrative Agent, be segregated from the other property or funds of such Grantor, and be forthwith delivered to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary endorsement).

(e)Interests in Limited Liability Companies and Limited Partnerships.  Each Grantor agrees that no ownership interests in a limited liability company or a limited partnership which are included within the Collateral owned by such Grantor shall at any time constitute a Security under Article 8 of the UCC of the applicable jurisdiction.
4.7. Intellectual Property. 
(a)After any change to Exhibit D (or the information required to be disclosed thereon), the applicable Grantor shall (i) except with respect to Copyrights that are registered or subject to an application for registration, at the time of the next delivery of financial statements pursuant to Section 5.01(a) or (b) of the Credit Agreement, provide the Administrative Agent notification thereof in the next compliance certificate required to be delivered under the Credit Agreement and the respective Confirmatory Grant as described in this Section 4.7 and any other documents that Administrative Agent 

reasonably requests with respect thereto, and (ii) solely with respect to Copyrights that are registered or subject to an application for registration, within fifteen (15) days of the filing or acquisition thereof, provide the Administrative Agent written notification thereof and the respective Confirmatory Grant as described in this Section 4.7 and any other documents that Administrative Agent reasonably requests with respect thereto.
(b)Such Grantor shall (and shall cause all its licensees to) (i) (1) continue to use each Trademark included in the Material Intellectual Property owned by it in order to maintain such Trademark in full force and effect with respect to each class of goods for which such Trademark is currently used, free from any claim of abandonment for non-use, (2) maintain at least the same standards of quality of products and services offered under such Trademark as are currently maintained, (3) use such Trademark with the appropriate notice of registration and all other notices and legends required by applicable Requirements of Law and (4) not adopt or use any other Trademark that is confusingly similar or a colorable imitation of such Trademark unless Administrative Agent shall obtain a perfected security interest in such other Trademark pursuant to this Security Agreement and (ii) not do any act or omit to do any act whereby (w) such Trademark (or any goodwill associated therewith) may become destroyed, invalidated, impaired or harmed in any way, (x) any Patent included in the Material Intellectual Property may become forfeited, misused, unenforceable, abandoned or dedicated to the public, (y) any portion of the Copyrights included in the Material Intellectual Property may become invalidated, otherwise impaired or fall into the public domain or (z) any Trade Secret that is Material Intellectual Property may become publicly available or otherwise unprotectable.
(c)Such Grantor shall notify the Administrative Agent immediately if it knows, or has reason to know, that any application or registration relating to any Patent, Trademark or Copyright constituting Material Intellectual Property owned by it may become forfeited, misused, unenforceable, abandoned or dedicated to the public, or of any adverse determination or development regarding the validity or enforceability or such Grantor’s ownership of, interest in, right to use, register, own or maintain any such Patent, Trademark, Copyright or other Material Intellectual Property (including the institution of, or any such determination or development in, any proceeding relating to the foregoing in any Applicable IP Office).  Such Grantor shall take all actions that are necessary or reasonably requested by the Administrative Agent to maintain and pursue each application (and to obtain the relevant registration or recordation) and to maintain each registration and recordation included in the Material Intellectual Property owned by it.
(d)Such Grantor shall not knowingly do any act or omit to do any act to infringe, misappropriate, dilute, violate or otherwise impair the Intellectual Property of any other Person.  In the event that any Material Intellectual Property of such Grantor is or has been infringed, misappropriated, violated, diluted or otherwise impaired by a third party, such Grantor shall promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and shall take such other actions as the Administrative Agent shall deem appropriate under the circumstances to protect such Material Intellectual Property.
(e)Such Grantor shall execute and deliver to the Administrative Agent in form and substance reasonably acceptable to Agent and suitable for (i) filing in the Applicable IP Office the respective Confirmatory Grant in form and substance acceptable to the Administrative Agent for all Copyrights, Trademarks, Patents and Material License Agreements of such Grantor. 
(f)Such Grantor shall take all actions necessary or reasonably requested by the Administrative Agent to maintain and pursue each application, to obtain the relevant registration and to maintain the registration of all Material Intellectual Property owned by it (now or hereafter existing), including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and defense of opposition, interference and cancellation proceedings.
4.8. Commercial Tort Claims.  Such Grantor shall promptly, and in any event within two Business Days after the same is acquired by it, notify the Administrative Agent of any Commercial Tort Claim in respect of an amount in excess of $500,000 acquired by it and, unless the Administrative Agent otherwise consents, such Grantor shall enter into an amendment to this Security Agreement, in the form of Exhibit J hereto, granting to Administrative Agent a first priority security interest in such commercial tort claim.  
4.9. Letter-of-Credit Rights.  If such Grantor is or becomes the beneficiary of a letter of credit with a face amount in excess of $500,000, it shall promptly, and in any event within two (2) Business Days after becoming a beneficiary, notify the Administrative Agent thereof and cause the issuer and/or confirmation bank to (i) consent to the assignment of any Letter-of-Credit Rights to the Administrative Agent and (ii) agree to direct all payments thereunder to a Deposit Account maintained with the Administrative Agent or subject to a Deposit Account Control Agreement for application to the Secured Obligations, in accordance with Section 2.18 of the Credit Agreement, all in form and substance reasonably satisfactory to the Administrative Agent. 
4.10. Federal, State or Municipal Claims.  Such Grantor will promptly notify the Administrative Agent of any Collateral which constitutes a claim in respect of an amount in excess of $500,000 against the United States government or any state or local government or any instrumentality or agency thereof, the assignment of which claim is restricted by federal, state or municipal law.

4.11. No Interference.  Such Grantor agrees that it will not interfere with any right, power and remedy of the Administrative Agent provided for in this Security Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Administrative Agent of any one or more of such rights, powers or remedies.
4.12. Insurance.  
(a)In the event any owned real property Collateral is located in any area that has been designated by the Federal Emergency Management Agency as a “Special Flood Hazard Area”, such Grantor shall purchase and maintain flood insurance on such Collateral (including any personal property which is located on any real property leased by such Loan Party within a “Special Flood Hazard Area”). The amount of flood insurance required by this Section shall be in an amount equal to the lesser of the total Commitment or the total replacement cost value of the improvements and at a minimum comply with applicable law, including the Flood Disaster Protection Act of 1973, as amended.
(b)All insurance policies required hereunder and under Section 5.10 of the Credit Agreement shall name the Administrative Agent (for the benefit of the Administrative Agent and the Secured Parties) as an additional insured or as lender’s loss payee, as applicable, and shall contain lender loss payable clauses or mortgagee clauses, through endorsements in form and substance satisfactory to the Administrative Agent, which provide that: (i) all proceeds thereunder with respect to any Collateral shall be payable to the Administrative Agent; (ii) no such insurance shall be affected by any act or neglect of the insured or owner of the property described in such policy; and (iii) such policy and lender loss payable or mortgagee clauses may be canceled, amended, or terminated only upon at least thirty (30) days prior written notice given to the Administrative Agent.
(c)All premiums on any such insurance shall be paid when due by such Grantor, and copies of the policies delivered to the Administrative Agent.  If such Grantor fails to obtain or maintain any insurance as required by this Section, the Administrative Agent may obtain such insurance at the Borrower’s expense. By purchasing such insurance, the Administrative Agent shall not be deemed to have waived any Default arising from a Grantor’s failure to maintain such insurance or pay any premiums therefor.
4.13. Collateral Access Agreements.  Such Grantor shall use commercially reasonable efforts to obtain a Collateral Access Agreement from the lessor of each leased property, mortgagee of owned property or bailee or consignee with respect to any warehouse, processor or converter facility or other location where Collateral with a value in excess of $500,000 is stored or located, which agreement or letter shall provide access rights, contain a waiver or subordination of all Liens or claims that the landlord, mortgagee, bailee or consignee may assert against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to the Administrative Agent. 
4.14. Control Agreements.  Such Grantor will provide to the Administrative Agent, a Control Agreement duly executed on behalf of each financial institution or Person (other than the Administrative Agent) holding a Deposit Account (other than an Excluded Account) of the Grantor (i) in the case of any such account in existence on the Effective Date, within forty-five (45) days after the Effective Date (or such longer time period as agreed to by the Administrative Agent in its sole discretion) or (ii) in the case of any such account opened or acquired after the Effective Date, within forty-five (45) days after the date that such Grantor opens or acquires such account (or such longer time period as agreed to by the Administrative Agent in its sole discretion). 
4.15. Change of Name or Location; Change of Fiscal Year.  Such Grantor shall not (a) change its name as it appears in official filings in the state of its incorporation or organization, (b) change its chief executive office, principal place of business, mailing address, corporate offices or warehouses or locations at which Collateral is held or stored, or the location of its records concerning the Collateral as set forth in this Security Agreement, (c) change the type of entity that it is, (d) change its organization identification number, if any, issued by its state of incorporation or other organization, or (e) change its state of incorporation or organization, in each case, unless the Administrative Agent shall have received at least ten (10) days prior written notice of such change and either (1) such change will not adversely affect the validity, perfection or priority of the Administrative Agent’s security interest in the Collateral, or (2) any reasonable action requested by the Administrative Agent in connection therewith has been completed or taken (including any action to continue the perfection of any Liens in favor of the Administrative Agent, on behalf of  the Secured Parties, in any Collateral), provided that, any new location shall be in the continental U.S.  Such Grantor shall not change its fiscal year which currently ends on December 31. 
ARTICLE V
EVENTS OF DEFAULT AND REMEDIES
5.1. Events of Default.  The occurrence of any one or more of the following events shall constitute an Event of Default hereunder:
(a)Any representation or warranty made by or on behalf of any Grantor under or in connection with this Security Agreement shall be materially false as of the date on which made;

(b)Any Grantor shall fail to observe or perform any of the terms or provisions of Article IV;
(c)Any Grantor shall fail to observe or perform any of the terms or provisions of this Security Agreement (other than a breach which constitutes an Event of Default under any other Section of this Article V), and such failure shall continue unremedied for a period of fifteen (15) days after the earlier of knowledge of such breach or notice thereof from the Administrative Agent;
(d)The occurrence of any “Event of Default” under, and as defined in, the Credit Agreement; or
(e)Any Equity Interest which is included within the Collateral shall at any time constitute a Security or the issuer of any such Equity Interest shall take any action to have such interests treated as a Security unless (i) all certificates or other documents constituting such Security have been delivered to the Administrative Agent and such Security is properly defined as such under Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise, or (ii) the Administrative Agent has entered into a Control Agreement with the issuer of such Security or with a securities intermediary relating to such Security and such Security is defined as such under Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise.
5.2 Remedies.  
(a)Upon the occurrence of an Event of Default, the Administrative Agent may exercise any or all of the following rights and remedies:
(i)those rights and remedies provided in this Security Agreement, the Credit Agreement, or any other Loan Document; provided that, this Section 5.2(a) shall not be understood to limit any rights or remedies available to the Administrative Agent and the other Secured Parties prior to an Event of Default;
(ii)those rights and remedies available to a secured party under the UCC (whether or not the UCC applies to the affected Collateral) or under any other applicable law (including, without limitation, any law governing the exercise of a bank’s right of setoff or bankers’ lien) when a debtor is in default under a security agreement;
(iii)give notice of sole control or any other instruction under any Control Agreement or any other control agreement with any bank or securities intermediary and take any action therein with respect to such Collateral;
(iv)without notice (except as specifically provided in Section 8.1 or elsewhere herein), demand or advertisement of any kind to any Grantor or any other Person, enter the premises of any Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign, grant an option or options to purchase or otherwise dispose of, deliver, or realize upon, the Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to time with or without notice and may take place at any Grantor’s premises or elsewhere), for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Administrative Agent may deem commercially reasonable; and
(v)concurrently with written notice to the applicable Grantor, transfer and register in its name or in the name of its nominee the whole or any part of the Pledged Collateral, exchange certificates or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations, exercise the voting and all other rights as a holder with respect thereto, to collect and receive all cash dividends, interest, principal and other distributions made thereon and to otherwise act with respect to the Pledged Collateral as though the Administrative Agent was the outright owner thereof. 
(b)The Administrative Agent, on behalf of the Secured Parties, may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.
(c)The Administrative Agent shall have the right upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase for the benefit of the Administrative Agent and the other Secured Parties, the whole or any part of the Collateral so sold, free of any right of equity redemption, which equity redemption the Grantor hereby expressly releases.
(d)Until the Administrative Agent is able to effect a sale, lease, or other disposition of Collateral, the Administrative Agent shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its value or for any other purpose deemed appropriate by the Administrative Agent.  The Administrative Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Administrative Agent’s remedies (for the benefit of the Administrative Agent and the other Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment.

(e)If, after the Credit Agreement has terminated by its terms and all of the Obligations have been Paid in Full, there remain Swap Agreement Obligations outstanding, the Required Lenders may exercise the remedies provided in this Section 5.2 upon the occurrence of any event which would allow or require the termination or acceleration of any Swap Agreement Obligations pursuant to the terms of the Swap Agreement.
(f)Notwithstanding the foregoing, neither the Administrative Agent nor any other Secured Party shall be required to (i) make any demand upon, or pursue or exhaust any of its rights or remedies against, any Grantor, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Secured Obligations or to pursue or exhaust any of its rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such guarantee in any particular order, or (iii) effect a public sale of any Collateral.
(g)Each Grantor recognizes that the Administrative Agent may be unable to effect a public sale of any or all the Pledged Collateral and may be compelled to resort to one or more private sales thereof in accordance with clause (a) above.  Each Grantor also acknowledges that any private sale may result in prices and other terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being private.  The Administrative Agent shall be under no obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the Pledged Collateral to register such securities for public sale under the Securities Act of 1933, as amended, or under applicable state securities laws, even if the applicable Grantor and the issuer would agree to do so.
5.3. Grantor’s Obligations Upon Default.  Upon the request of the Administrative Agent after the occurrence of a Default, each Grantor will:
(a)assemble and make available to the Administrative Agent the Collateral and all books and records relating thereto at any place or places specified by the Administrative Agent, whether at a Grantor’s premises or elsewhere;
(b)permit the Administrative Agent, by the Administrative Agent’s representatives and agents, to enter, occupy and use  any premises where all or any part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral or the books and records relating thereto, or both, to remove all or any part of the Collateral or the books and records relating thereto, or both, and to conduct sales of the Collateral, without any obligation to pay the Grantor for such use and occupancy; 
(c)prepare and file, or cause an issuer of Pledged Collateral to prepare and file, with the Securities and Exchange Commission or any other applicable government agency, registration statements, a prospectus and such other documentation in connection with the Pledged Collateral as the Administrative Agent may request, all in form and substance satisfactory to the Administrative Agent, and furnish to the Administrative Agent, or cause an issuer of Pledged Collateral to furnish to the Administrative Agent, any information regarding the Pledged Collateral in such detail as the Administrative Agent may specify; 
(d)take, or cause an issuer of Pledged Collateral to take, any and all actions necessary to register or qualify the Pledged Collateral to enable the Administrative Agent to consummate a public sale or other disposition of the Pledged Collateral; and 
(e)at its own expense, cause the independent certified public accountants then engaged by each Grantor to prepare and deliver to the Administrative Agent and each Lender, at any time, and from time to time, promptly upon the Administrative Agent’s request, the following reports with respect to the applicable Grantor: (i) a reconciliation of all Accounts; (ii) an aging of all Accounts; (iii) trial balances; and (iv) a test verification of such Accounts. 
5.4. Grant of Intellectual Property License.  For the purpose of enabling the Administrative Agent to exercise the rights and remedies under this Article V at such time as the Administrative Agent shall be lawfully entitled to exercise such rights and remedies (including in order to take possession of, collect, receive, assemble, process, appropriate, remove, realize upon, sell, assign, convey, transfer or grant options to purchase any Collateral), each Grantor hereby (a) grants to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, an irrevocable, nonexclusive worldwide license or sublicense, as applicable (exercisable without payment of royalty or other compensation to any Grantor), including in such license the right to use, license, sublicense, practice or otherwise exercise such Grantor’s rights in and to any Intellectual Property (whether or not Collateral) now owned or hereafter acquired by such Grantor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer Software and programs used for the compilation or printout thereof and (b) irrevocably agrees that the Administrative Agent may sell any of such Grantor’s Inventory directly to any person, including without limitation persons who have previously purchased such Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Administrative Agent’s rights under this Security Agreement, may sell Inventory which bears any Trademark owned by or licensed to such Grantor and any Inventory that is covered by any Patent or 

Copyright owned by or licensed to such Grantor and the Administrative Agent may (but shall have no obligation to) finish any work in process and affix any Trademark owned by or licensed to such Grantor and sell such Inventory as provided herein.
ARTICLE VI
ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY
6.1 Account Verification.  The Administrative Agent may at any time after the occurrence of an Event of Default, in the Administrative Agent’s own name, in the name of a nominee of the Administrative Agent, or in the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors of any such Grantor, parties to contracts with any such Grantor and obligors in respect of Instruments of any such Grantor to verify with such Persons, to the Administrative Agent’s satisfaction, the existence, amount, terms of, and any other matter relating to, Accounts, Instruments, Chattel Paper, payment intangibles and/or other Receivables.  
6.2 Authorization for Administrative Agent to Take Certain Action. 
(a)Each Grantor irrevocably authorizes the Administrative Agent at any time and from time to time in the sole discretion of the Administrative Agent and appoints the Administrative Agent as its attorney-in-fact (i) after the occurrence of an Event of Default, to endorse and collect any cash proceeds of the Collateral, (ii) to file any financing statement with respect to the Collateral and to file any other financing statement or amendment of a financing statement (which does not add new collateral or add a debtor) in such offices as the Administrative Agent in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the Administrative Agent’s security interest in the Collateral, (iii) in the case of any Intellectual Property owned by or licensed to a Grantor, execute, deliver and have recorded any document that the Administrative Agent may request to evidence, effect, publicize or record the Administrative Agent’s security interest in such Intellectual Property and the goodwill and General Intangibles of such Grantor relating thereto or represented thereby, (iv) to contact and enter into one or more agreements with the issuers of uncertificated securities which are Pledged Collateral or with securities intermediaries holding Pledged Collateral as may be necessary or advisable to give the Administrative Agent Control over such Pledged Collateral, (v) to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for such Liens that are permitted under Section 6.02 of the Credit Agreement), (vi) after the occurrence of an Event of Default, to contact Account Debtors for any reason, (vii) after the occurrence of an Event of Default, to demand payment or enforce payment of the Receivables in the name of the Administrative Agent or such Grantor and to endorse any and all checks, drafts, and other instruments for the payment of money relating to the Receivables, (viii) after the occurrence of an Event of Default, to sign such Grantor’s name on any invoice or bill of lading relating to the Receivables, drafts against any Account Debtor of the Grantor, assignments and verifications of Receivables, (ix) after the occurrence of an Event of Default, to exercise all of such Grantor’s rights and remedies with respect to the collection of the Receivables and any other Collateral, (x) after the occurrence of an Event of Default, to settle, adjust, compromise, extend or renew the Receivables, (xi) after the occurrence of an Event of Default, to settle, adjust or compromise any legal proceedings brought to collect Receivables, (xii) after the occurrence of an Event of Default, to prepare, file and sign such Grantor’s name on a proof of claim in bankruptcy or similar document against any Account Debtor of such Grantor, (xiii) after the occurrence of an Event of Default, to prepare, file and sign such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in connection with the Receivables, (xiv) after the occurrence of an Event of Default, to change the address for delivery of mail addressed to such Grantor to such address as the Administrative Agent may designate and to receive, open and dispose of all mail addressed to such Grantor, and (xv) to do all other acts and things necessary to carry out this Security Agreement; and such Grantor agrees to reimburse the Administrative Agent on demand for any payment made or any expense incurred by the Administrative Agent in connection with any of the foregoing; provided that, this authorization shall not relieve such Grantor of any of its obligations under this Security Agreement or under the Credit Agreement. 
(b)All acts of said attorney or designee are hereby ratified and approved. The powers conferred on the Administrative Agent, for the benefit of the Administrative Agent and Secured Parties, under this Section 6.2 are solely to protect the Administrative Agent’s interests in the Collateral and shall not impose any duty upon the Administrative Agent or any other Secured Party to exercise any such powers.  The Administrative Agent agrees that, except for the powers granted in Section 6.2(a)(i)-(v) and Section 6.2(a)(xv), it shall not exercise any power or authority granted to it unless an Event of Default has occurred and is continuing.  
6.3. Proxy.  EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE ADMINISTRATIVE AGENT AS ITS PROXY AND ATTORNEY‐IN‐FACT (AS SET FORTH IN SECTION 6.2 ABOVE) OF THE GRANTOR WITH RESPECT TO ITS PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING 

WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE OF A DEFAULT.  
6.4. Nature of Appointment; Limitation of Duty.  THE APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 7.14. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NONE OF THE ADMINISTRATIVE AGENT, ANY LENDER, ANY OTHER SECURED PARTY, ANY OF THEIR RESPECTIVE AFFILIATES, OR ANY OF THEIR OR THEIR AFFILIATES’ RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO SUCH PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.
ARTICLE VII
GENERAL PROVISIONS
7.1. Waivers.  Each Grantor hereby waives notice of the time and place of any public sale or the time after which any private sale or other disposition of all or any part of the Collateral may be made.  To the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to Grantors, addressed as set forth in Article IX, at least ten days prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other disposition may be made.  To the maximum extent permitted by applicable law, each Grantor waives all claims, damages, and demands against the Administrative Agent or any Secured Party arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the gross negligence or willful misconduct of the Administrative Agent or such Secured Party as finally determined by a court of competent jurisdiction. To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against the Administrative Agent or any other Secured Party, any valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which, but for this provision, might be applicable to the sale of any Collateral made under the judgment, order or decree of any court, or privately under the power of sale conferred by this Security Agreement, or otherwise.  Except as otherwise specifically provided herein, each Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral.
7.2. Limitation on Administrative Agent’s and Secured Parties’ Duty with Respect to the Collateral.  The Administrative Agent shall have no obligation to clean-up or otherwise prepare the Collateral for sale. The Administrative Agent and each other Secured Party shall use reasonable care with respect to the Collateral in its possession or under its control.  Neither the Administrative Agent nor any other Secured Party shall have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Administrative Agent or such other Secured Party, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. To the extent that applicable law imposes duties on the Administrative Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is commercially reasonable for the Administrative Agent (i) to fail to incur expenses deemed significant by the Administrative Agent to prepare Collateral for disposition or otherwise to transform raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons, whether or not in the same business as such Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Administrative Agent against risks of loss, collection or disposition of Collateral or to provide to the Administrative Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by the Administrative Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Administrative Agent in the collection or disposition of any of the Collateral.  The Administrative Agent shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the 

value thereof, by reason of the act or omission of any warehousemen, carrier, forwarding agency, consignee or other agent or bailee selected by the Administrative Agent in good faith. The Grantor acknowledges that the purpose of this Section 7.2 is to provide non-exhaustive indications of what actions or omissions by the Administrative Agent would be commercially reasonable in the Administrative Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Administrative Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 7.2.  Without limitation upon the foregoing, nothing contained in this Section 7.2 shall be construed to grant any rights to the Grantor or to impose any duties on the Administrative Agent that would not have been granted or imposed by this Security Agreement or by applicable law in the absence of this Section 7.2.
7.3. Compromises and Collection of Collateral.  The Grantors and the Administrative Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable.  In view of the foregoing, each Grantor agrees that the Administrative Agent may at any time and from time to time, if an Event of Default has occurred and is continuing, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Administrative Agent in its sole discretion shall determine or abandon any Receivable, and any such action by the Administrative Agent shall be commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it takes any such action.
7.4. Secured Party Performance of Debtor Obligations.  Without having any obligation to do so, the Administrative Agent may perform or pay any obligation which any Grantor has agreed to perform or pay in this Security Agreement and the Grantors shall reimburse the Administrative Agent for any amounts paid by the Administrative Agent pursuant to this Section 7.4.  The Grantors’ obligation to reimburse the Administrative Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand.
7.5. Specific Performance of Certain Covenants.  Each Grantor acknowledges and agrees that a breach of any of the covenants contained in Sections 4.1(d), 4.1(e), 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.12, 4.13, 4.14, 4.15, 5.3, or 7.7 will cause irreparable injury to the Administrative Agent and the other Secured Parties, that the Administrative Agent and the other Secured Parties have no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Administrative Agent or the other Secured Parties to seek and obtain specific performance of other obligations of the Grantors contained in this Security Agreement, that the covenants of the Grantors contained in the Sections referred to in this Section 7.5 shall be specifically enforceable against the Grantors.
7.6. Dispositions Not Authorized.  No Grantor is authorized to sell or otherwise Dispose of the Collateral except as set forth in Section 4.1(d) and notwithstanding any course of dealing between any Grantor and the Administrative Agent or other conduct of the Administrative Agent, no authorization to sell or otherwise Dispose of the Collateral (except as set forth in Section 4.1(d)) shall be binding upon the Administrative Agent or the other Secured Parties unless such authorization is in writing signed by the Administrative Agent with the consent or at the direction of the Required Lenders.
7.7. No Waiver; Amendments; Cumulative Remedies.  No failure or delay by the Administrative Agent or any other Secured Party in exercising any right or power under this Security Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the other Secured Parties hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Security Agreement or consent to any departure by the Grantor therefrom shall in any event be effective unless in writing signed by the Administrative Agent with the concurrence or at the direction of the Lenders required under Section 9.02 of the Credit Agreement and then only to the extent in such writing specifically set forth.  
7.8. Limitation by Law; Severability of Provisions.  All rights, remedies and powers provided in this Security Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Security Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable or not entitled to be recorded or registered, in whole or in part.  Any provision in this Security Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction, and to this end the provisions of this Security Agreement are declared to be severable..
7.9. Reinstatement.  This Security Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the 

Secured Obligations, or any part thereof (including a payment effected through exercise of a right of setoff), is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise (including pursuant to any settlement entered into by a Secured Party in its discretion), all as though such payment or performance had not been made.  In the event that any payment, or any part thereof (including a payment effected through exercise of a right of setoff), is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.
7.10. Benefit of Agreement.  The terms and provisions of this Security Agreement shall be binding upon and inure to the benefit of the Grantors, the Administrative Agent and the other Secured Parties and their respective successors and assigns (including all persons who become bound as a debtor to this Security Agreement), except that no Grantor shall have the right to assign its rights or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the Administrative Agent.  No sales of participations, assignments, transfers, or other dispositions of any agreement governing the Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, hereunder.
7.11. Survival of Representations.  All representations and warranties of the Grantors contained in this Security Agreement shall survive the execution and delivery of this Security Agreement.
7.12. Taxes and Expenses.  Any taxes (including income taxes) payable or ruled payable by Federal or State authority in respect of this Security Agreement shall be paid by the Grantors, together with interest and penalties, if any.  The Grantors shall reimburse the Administrative Agent for any and all out‐of‐pocket expenses and internal charges (including reasonable attorneys’, auditors’ and accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and accountants who may be employees of the Administrative Agent) paid or incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, collection and enforcement of this Security Agreement and, to the extent provided in the Credit Agreement in the audit, analysis, administration, collection, preservation or sale of the Collateral (including the expenses and charges associated with any periodic or special audit of the Collateral).  Any and all costs and expenses incurred by the Grantors in the performance of actions required pursuant to the terms hereof shall be borne solely by the Grantors.
7.13. Headings.  The title of and section headings in this Security Agreement are for convenience of reference only, and shall not govern the interpretation of any of the terms and provisions of this Security Agreement.
7.14. Termination.  This Security Agreement shall continue in effect (notwithstanding the fact that from time to time there may be no Secured Obligations outstanding) until (i) the Credit Agreement has terminated pursuant to its express terms and (ii) all of the Secured Obligations have been Paid in Full.
7.15. Entire Agreement.  This Security Agreement and the other Loan Documents embody the entire agreement and understanding between the Grantors and the Administrative Agent relating to the Collateral and supersedes all prior agreements and understandings between the Grantors and the Administrative Agent relating to the Collateral.
7.16. CHOICE OF LAW.  THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. 
7.17. CONSENT TO JURISDICTION.  EACH GRANTOR HEREBY IRREVOCABLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE ADMINISTRATIVE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

7.18. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS SECURITY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
7.19. Indemnity.  Each Grantor hereby agrees to indemnify the Administrative Agent and the other Secured Parties, and their respective successors, assigns, agents and employees, from and against any and all liabilities, damages, penalties, suits, fees, costs, and expenses of any kind and nature (including, without limitation, all expenses of litigation or preparation therefor whether or not the Administrative Agent or any Secured Party is a party thereto) imposed on, incurred by or asserted against the Administrative Agent or the other Secured Parties, or their respective successors, assigns, agents and employees, in any way relating to or arising out of this Security Agreement, or the manufacture, purchase, acceptance, rejection, ownership, delivery, lease, possession, use, operation, condition, sale, return or other disposition of any Collateral (including, without limitation, latent and other defects, whether or not discoverable by the Administrative Agent or the other Secured Parties or any Grantor, and any claim for Patent, Trademark or Copyright infringement).
7.20. Counterparts.  This Security Agreement may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Security Agreement by signing any such counterpart.  Delivery of an executed counterpart of a signature page of this Security Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Security Agreement.  
ARTICLE VIII
NOTICES
8.1. Sending Notices.  Any notice required or permitted to be given under this Security Agreement shall be sent in accordance with Section 9.01 of the Credit Agreement.
8.2. Change in Address for Notices.  Each of the Grantors, the Administrative Agent and the Lenders may change the address for service of notice upon it by a notice in writing to the other parties.
ARTICLE IX
THE ADMINISTRATIVE AGENT
JPMorgan Chase Bank, N.A. has been appointed Administrative Agent for the Lenders hereunder pursuant to Article VIII of the Credit Agreement.  It is expressly understood and agreed by the parties to this Security Agreement that any authority conferred upon the Administrative Agent hereunder is subject to the terms of the delegation of authority made by the Lenders to the Administrative Agent pursuant to Article VIII of the Credit Agreement, and that the Administrative Agent has agreed to act (and any successor Administrative Agent shall act) as such hereunder only on the express conditions contained in such Article VIII.  Any successor Administrative Agent appointed pursuant to Article VIII of the Credit Agreement shall be entitled to all the rights, interests and benefits of the Administrative Agent hereunder.
[Signature Pages Follow]

IN WITNESS WHEREOF, the Grantors and the Administrative Agent have executed this Security Agreement as of the date first above written.
												
		GRANTORS:
		PLAYSTUDIOS, INC.
		By:	/s/ Andrew Pascal
			Name:	Andrew Pascal
			Title:	President and Chief Executive Officer

 
												
		PLAYSTUDIOS US, LLC
		By:	/s/ Andrew Pascal
			Name:	Andrew Pascal
			Title:	President and Chief Executive Officer

[Signature Page to Pledge and Security Agreement]

												
		JPMORGAN CHASE BANK, N.A., 
		as Administrative Agent
		By:	/s/ Grace Mahood
			Name:	Grace Mahood
			Title:	Authorized Signatory

[Signature Page to Pledge and Security Agreement]EXHIBIT 4.1

 

 

 

 

 

 

 

 

 

 

 

 

 

ENGINE
MEDIA HOLDINGS INC.

OMNIBUS EQUITY INCENTIVE PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	Article 1 DEFINITIONS	1
	 	 
	1.1	Definitions.	1
	 	 	 
	Article 2 PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS	4
	 	 
	2.1	Purpose
    of the Plan.	4
	 	 	 
	2.2	Implementation
    and Administration of the Plan.	4
	 	 	 
	2.3	Eligible
    Participants.	4
	 	 	 
	2.4	Shares
    Subject to the Plan.	5
	 	 	 
	2.5	Granting
    of Awards.	6
	 	 	 
	Article 3 OPTIONS	6
	 	 
	3.1	Nature
    of Options.	6
	 	 	 
	3.2	Option
    Awards.	6
	 	 	 
	3.3	Option
    Price.	6
	 	 	 
	3.4	Option
    Term.	6
	 	 	 
	3.5	Exercise
    of Options.	7
	 	 	 
	3.6	Method
    of Exercise and Payment of Purchase Price.	7
	 	 	 
	3.7	Option
    Agreements.	8
	 	 	 
	Article 4 DEFERRED SHARE UNITS	8
	 	 
	4.1	Nature
    of DSUs.	8
	 	 	 
	4.2	DSU
    Awards.	8
	 	 	 
	4.3	Redemption
    of DSUs.	8
	 	 	 
	4.4	DSU
    Agreements.	9
	 	 	 
	Article 5 RESTRICTED SHARE UNITS	9
	 	 
	5.1	Nature
    of RSUs.	9
	 	 	 
	5.2	RSU
    Awards.	9
	 	 	 
	5.3	Restriction
    Period.	10

 

    	 

    	 

    

 

	5.4	Performance
    Criteria and Performance Period.	10
	 	 	 
	5.5	RSU
    Vesting Determination Date.	10
	 	 	 
	5.6	Settlement
    of RSUs.	11
	 	 	 
	5.7	Determination
    of Amounts.	11
	 	 	 
	5.8	RSU
    Agreements.	11
	 	 	 
	Article 6 GENERAL CONDITIONS	12
	 	 
	6.1	General
    Conditions applicable to Awards.	12
	 	 	 
	6.2	General
    Conditions applicable to Awards.	13
	 	 	 
	6.3	Unfunded
    Plan.	14
	 	 	 
	Article 7 ADJUSTMENTS AND AMENDMENTS	14
	 	 
	7.1	Adjustment
    to Shares Subject to Outstanding Awards.	14
	 	 	 
	7.2	Amendment
    or Discontinuance of the Plan.	15
	 	 	 
	7.3	Change
    in Control	16
	 	 	 
	Article 8 MISCELLANEOUS	17
	 	 
	8.1	Use
    of an Administrative Agent and Trustee.	17
	 	 	 
	8.2	Tax
    Withholding.	17
	 	 	 
	8.3	Reorganization
    of the Corporation.	18
	 	 	 
	8.4	Governing
    Laws.	18
	 	 	 
	8.5	Severability.	18
	 	 	 
	8.6	Effective
    Date of the Plan.	18
	 	 	 
	Article 9 CALIFORNIA PARTICIPANTS	18
	 	 
	9.1	Termination
    of Employment.	18
	 	 	 
	9.2	Issuance
    of Securities	18
	 	 	 
	9.3	Approval
    of Plan	18
	 	 	 
	Article 10 Plan Provisions Applicable to U.S. Taxpayers	19
	 	 
	10.1	General.	19
	 	 	 
	10.2	Definitions.	19
	 	 	 
	10.3	Compliance
    with Section 409A.	20
	 	 	 
	APPENDIX “A” FORM OF OPTION AGREEMENT	1
	 	 
	SCHEDULE “A” ELECTION TO EXERCISE STOCK OPTIONS	4
	 	 
	APPENDIX “B” FORM OF DSU AGREEMENT	1
	 	 
	APPENDIX “C” FORM OF RSU AGREEMENT	1

 

    	 

    	 

    

 

ENGINE
MEDIA HOLDINGS, INC.

OMNIBUS EQUITY INCENTIVE PLAN

 

Engine
Media Holdings, Inc. (the “Corporation”) hereby amends and restates its Omnibus Equity Incentive Plan (the “Plan”)
for certain qualified directors, officers, employees, Consultants (as defined herein) and service providers providing ongoing services
to the Corporation and its Affiliates (as defined herein) that can have a significant impact on the Corporation’s long-term results.

 

Article
1

DEFINITIONS

 

	1.1	Definitions.

 

Where
used herein or in any amendments hereto or in any communication required or permitted to be given hereunder, the following terms shall
have the following meanings, respectively, unless the context otherwise requires:

 

“Affiliates”
has the meaning given to this term in the Securities Act (Ontario), as such legislation may be amended, supplemented or replaced
from time to time;

 

“Associate”,
where used to indicate a relationship with a Participant, means (i) any partner of that Participant and (ii) the spouse of that Participant
and that Participant’s children, as well as that Participant’s relatives and that Participant’s spouse’s relatives,
if they share that Participant’s residence;

 

“Awards”
means Options, RSUs, DSUs granted to a Participant pursuant to the terms of the Plan;

 

“Black-Out
Period” means a period of time when pursuant to any policies of the Corporation, any securities of the Corporation may not
be traded by certain persons designated by the Corporation;

 

“Board”
has the meaning ascribed thereto in Section 2.2(a) hereof;

 

“Business
Day” means a day other than a Saturday, Sunday or statutory holiday, when banks are generally open for business in Toronto,
Ontario, Canada, for the transaction of banking business;

 

“California
Option” means an Option granted to a California Participant;

 

“California
Participant” has the meaning ascribed thereto in Article 9 hereof;

 

“Cash
Equivalent” means the amount of money equal to the Market Value multiplied by the number of vested RSUs in the Participant’s
Account, net of any applicable taxes in accordance with Section 8.2, on the RSU Settlement Date;

 

“Change
in Control” means the occurrence of any of the following events: (i) the acquisition, directly or indirectly, by any Person
or group of Persons acting jointly or in concert, within the meaning of National Instrument 62-104 - Takeover Bids and Issuer Bids (or
any successor instrument thereto), of a beneficial interest in voting or equity securities of the Corporation, together with all voting
or equity securities of the Corporation at the time held beneficially, directly or indirectly by such person or persons acting jointly
or in concert, equal to more than 50% of the votes associated with the outstanding voting securities of the Corporation; (ii) a merger,
consolidation, plan of arrangement or reorganization of the Corporation that results in the beneficial, direct or indirect transfer of
more than 50% of the total voting power of the resulting entity’s outstanding securities to a person, or group of persons acting
jointly and in concert, who are different from the person(s) that have, beneficially, directly or indirectly, more than 50% of the total
voting power prior to such transaction; (iii) any sale, lease, exchange or other transfer (in one transaction or series of related transactions)
of all or substantially all of the Corporation’s property and assets, or (iv) the Corporation’s shareholders approving any
plan or proposal for the liquidation or dissolution of the Corporation;

 

    	1

    	 

    

 

“Code
of Conduct” means any code of conduct adopted by the Corporation, as modified from time to time;

 

“Committee”
has the meaning ascribed thereto in Section 2.2(a) hereof;

 

“Consultant”
means a “Consultant” as defined by the TSXV; provided that such consultant (i) is a natural person, (ii) provides bona fide
services to the Corporation and (iii) whose services are not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for the Corporation’s securities;

 

“Corporation”
means Engine Media Holdings, Inc., a corporation existing under the Business Corporations Act (Ontario), as amended from time
to time;

 

“Date
of Grant” means, for any Award, the date specified by the Board at the time it grants the Award or if no such date is specified,
the date upon which the Award was granted.

 

“DSU”
means a deferred share unit, which is a bookkeeping entry equivalent in value to a Share credited to a Participant’s Account in
accordance with Article 4 hereof;

 

“DSU
Agreement” means a written letter agreement between the Corporation and a Participant evidencing the grant of DSUs and the
terms and conditions thereof, substantially in the form of Appendix “B”;

 

“DSU
Redemption Notice” has the meaning ascribed thereto in Section 4.3(a) hereof;

 

“Eligible
Director” means members of the Board who, at the time of execution of a Grant Agreement, and at all times thereafter while
they continue to serve as a member of the Board, are not officers, senior executives or other employees of the Corporation or a Subsidiary,
Consultants or service providers providing ongoing services to the Corporation and its Affiliates;

 

“Eligible
Participants” has the meaning ascribed thereto in Section 2.3(a) hereof;

 

“Employment
Agreement” means, with respect to any Participant, any written employment agreement between the Corporation or an Affiliate
and such Participant;

 

“Exercise
Notice” means a notice in writing signed by a Participant and stating the Participant’s intention to exercise a particular
Award, if applicable;

 

“Grant
Agreement” means an agreement evidencing the grant to a Participant of an Award, including an Option Agreement, a DSU Agreement,
a RSU Agreement or an Employment Agreement;

 

“Insider”
has the meaning given to the term in TSXV Corporate Finance Manual, as same may be amended, supplemented or replaced from time to time;

 

“Market
Value” means at any date when the market value of Shares of the Corporation is to be determined, the closing price of the Shares
on the Trading Day prior to the date of grant on the principal stock exchange on which the Shares are listed, less any discount permitted
by the rules or policies of the TSXV, or if the Shares of the Corporation are not listed on any stock exchange, the value as is determined
solely by the Board, acting reasonably and in good faith;

 

“Option”
means an option granted by the Corporation to a Participant entitling such Participant to acquire a designated number of Shares from
treasury at the Option Price, but subject to the provisions hereof;

 

“Option
Agreement” means a written letter agreement between the Corporation and a Participant evidencing the grant of Options and the
terms and conditions thereof, substantially in the form set out in Appendix “A”;

 

“Option
Price” has the meaning ascribed thereto in Section 3.3 hereof;

 

    	2

    	 

    

 

“Option
Term” has the meaning ascribed thereto in Section 3.4 hereof;

 

“Participants”
means Eligible Participants that are granted Awards under the Plan;

 

“Participant’s
Account” means an account maintained for each Participant’s participation in DSUs and/or RSUs under the Plan;

 

“Performance
Criteria” means criteria established by the Board which, without limitation, may include criteria based on the Participant’s
personal performance and/or the financial performance of the Corporation and/or of its Affiliates, and that may be used to determine
the vesting of the Awards, when applicable;

 

“Performance
Period” means the period determined by the Board pursuant to Section 5.3 hereof;

 

“Person”
means an individual, corporation, company, cooperative, partnership, trust, unincorporated association, entity with juridical personality
or governmental authority or body, and pronouns which refer to a Person shall have a similarly extended meaning;

 

“Plan”
means this Omnibus Equity Incentive Plan, as amended and restated from time to time;

 

“Restriction
Period” means the period determined by the Board pursuant to Section 5.3 hereof;

 

“RSU”
means a right awarded to a Participant to receive a payment in the form of Shares as provided in Article 5 hereof and subject to the
terms and conditions of this Plan;

 

“RSU
Agreement” means a written letter agreement between the Corporation and a Participant evidencing the grant of RSUs and the
terms and conditions thereof, substantially in the form of Appendix “C”;

 

“RSU
Settlement Date” has the meaning determined in Section 5.6(a)(i);

 

“RSU
Settlement Notice” means a notice by a Participant to the Corporation electing the desired form of settlement of vested RSUs.

 

“RSU
Vesting Determination Date” has the meaning described thereto in Section 5.5 hereof;

 

“Share
Compensation Arrangement” means a stock option, stock option plan, employee stock purchase plan, long-term incentive plan or
any other compensation or incentive mechanism involving the issuance or potential issuance of Shares to one or more full-time employees,
directors, officers, insiders, service providers or Consultants of the Corporation or a Subsidiary including a share purchase from treasury
by a full-time employee, director, officer, insider, service provider or Consultant which is financially assisted by the Corporation
or a Subsidiary by way of a loan, guarantee or otherwise;

 

“Shares”
means the common shares in the capital of the Corporation;

 

“Subsidiary”
means a corporation, company, partnership or other body corporate that is controlled, directly or indirectly, by the Corporation;

 

“Successor
Corporation” has the meaning ascribed thereto in Section 7.1(c) hereof;

 

“Tax
Act” means the Income Tax Act (Canada) and its regulations thereunder, as amended from time to time.

 

“Termination
Date” means the date on which a Participant ceases to be an Eligible Participant;

 

“Trading
Day” means any day on which the TSXV is opened for trading;

 

    	3

    	 

    

 

“TSXV”
means the TSX Venture Exchange; and

 

“Vested
Awards” has the meaning described thereto in Section 6.2(b) hereof.

 

Article
2

PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS

 

	2.1	Purpose
    of the Plan.

 

		(a)	The
                                            purpose of the Plan is to permit the Corporation to grant Awards to Eligible Participants,
                                            subject to certain conditions as hereinafter set forth, for the following purposes:

 

		(i)	to
                                            increase the interest in the Corporation’s welfare of those Eligible Participants,
                                            who share responsibility for the management, growth and protection of the business of the
                                            Corporation or a Subsidiary;

 

		(ii)	to
                                            provide an incentive to such Eligible Participants to continue their services for the Corporation
                                            or a Subsidiary and to encourage such Eligible Participants whose skills, performance and
                                            loyalty to the objectives and interests of the Corporation or a Subsidiary are necessary
                                            or essential to its success, image, reputation or activities;

 

		(iii)	to
                                            reward the Participants for their performance of services while working for the Corporation
                                            or a Subsidiary; and

 

		(iv)	to
                                            provide a means through which the Corporation or a Subsidiary may attract and retain able
                                            Persons to enter its employment.

 

	2.2	Implementation
    and Administration of the Plan.

 

		(a)	The
                                            Plan shall be administered and interpreted by the Board or, if the Board by resolution so
                                            decides, by a committee appointed by the Board (the “Committee”) and consisting
                                            of not less than three (3) members of the Board. If a Committee is appointed for this purpose,
                                            all references to the term “Board” will be deemed to be references to
                                            the Committee.

 

		(b)	The
                                            Board may, from time to time, as it may deem expedient, adopt, amend and rescind rules and
                                            regulations for carrying out the provisions and purposes of the Plan, subject to any applicable
                                            rules of the TSXV. Subject to the provisions of the Plan, the Board is authorized, in its
                                            sole discretion, to make such determinations under, and such interpretations of, and take
                                            such steps and actions in connection with, the proper administration of the Plan as it may
                                            deem necessary or advisable. The interpretation, construction and application of the Plan
                                            and any provisions hereof made by the Board shall be final and binding on all Eligible Participants.

 

		(c)	No
                                            member of the Board or of the Committee shall be liable for any action or determination taken
                                            or made in good faith in the administration, interpretation, construction or application
                                            of the Plan or any Award granted hereunder.

 

		(d)	Any
                                            determination approved by a majority of the Board shall be deemed to be a determination of
                                            that matter by the Board.

 

	2.3	Eligible
    Participants.

 

		(a)	The
                                            Persons who shall be eligible to receive Awards (“Eligible Participants”)
                                            shall be bona fide directors, officers, senior executives and other employees of the Corporation
                                            or a Subsidiary, Consultants and service providers providing ongoing services to the Corporation
                                            and its Affiliates, who the Board may determine from time to time, in its sole discretion,
                                            to hold key positions in the Corporation or a Subsidiary. In determining Awards to be granted
                                            under the Plan, the Board shall give due consideration to the value of each Eligible Participant’s
                                            present and potential future contribution to the Corporation’s success. For greater
                                            certainty, a Person whose employment with the Corporation or a Subsidiary has ceased for
                                            any reason, or who has given notice or been given notice of such cessation, whether such
                                            cessation was initiated by such employee, the Corporation or such Subsidiary, as the case
                                            may be, shall cease to be eligible to receive Awards hereunder as of the date on which such
                                            Person provides notice to the Corporation or the Subsidiary, as the case may be, in writing
                                            or verbally, of such cessation, or on the Termination Date for any cessation of a Participant’s
                                            employment initiated by the Corporation.

 

    	4

    	 

    

 

		(b)	Participation
                                            in the Plan shall be entirely voluntary and any decision not to participate shall not affect
                                            an Eligible Participant’s relationship or employment with the Corporation.

 

		(c)	Notwithstanding
                                            any express or implied term of this Plan to the contrary, the granting of an Award pursuant
                                            to the Plan shall in no way be construed as a guarantee of employment by the Corporation
                                            to the Participant.

 

	2.4	Shares
    Subject to the Plan.

 

		(a)	Subject
                                            to adjustment pursuant to provisions of Article 7 hereof, the total number of Shares reserved
                                            and available for grant and issuance pursuant to Awards shall not exceed 1,501,084 Shares,
                                            less the number of Shares reserved for issuance under all other Share Compensation Arrangements
                                            of the Corporation.

 

		(b)	For
                                            so long as the Corporation is listed on the TSXV or on another exchange that requires the
                                            Corporation to fix the number of Shares to be issued in settlement of DSUs and RSUs, the
                                            maximum number of Shares available for issuance pursuant to the settlement of DSUs and RSUs
                                            shall be 750,542 Shares.

 

		(c)	The
                                            aggregate number of Shares issuable to Insiders at any time, under all of the Corporation’s
                                            Share Compensation Arrangements, shall not exceed 10% of the Corporation’s issued and
                                            outstanding Shares.

 

		(d)	The
                                            aggregate number of Shares for which Awards may be issued to any one Participant in any 12-month
                                            period shall not exceed 5% of the outstanding Shares, calculated on the date an Award is
                                            granted to the Participant, unless the Corporation obtains disinterested shareholder approval
                                            as required by the policies of the TSXV. The aggregate number of Shares for which Awards
                                            may be issued to any one Consultant within any 12-month period shall not exceed 2% of the
                                            outstanding Shares, calculated on the date an Award is granted to the Consultant. The aggregate
                                            number of Shares for which Options may be issued to any Persons retained to provide Investor
                                            Relations Activities (as defined by the TSXV) within any 12-month period shall not exceed
                                            2% of the outstanding Shares, calculated on the date an Option is granted to such Persons.

 

		(e)	Subject
                                            to adjustment pursuant to provisions of Article 7 hereof, the aggregate number of Shares
                                            (i) issued to Insiders under the Plan or any other proposed or established Share Compensation
                                            Arrangement within any 12-month period and (ii) issuable to Insiders at any time under the
                                            Plan or any other proposed or established Share Compensation Arrangement, shall in each case
                                            not exceed ten percent (10%) of the total issued and outstanding Shares of the Corporation
                                            (on a non-diluted basis) from time to time.

 

		(f)	(i)
                                            the Board shall not make grants of Awards to Directors if, after giving effect to such grants
                                            of Awards, the aggregate number of Shares issuable to Directors, at the time of such grant,
                                            under all of the Corporation’s Share Compensation Arrangements would exceed 1% of the
                                            issued and outstanding Shares on a non-diluted basis, and (ii) within any one financial year
                                            of the Corporation, (A) the aggregate fair value on the Date of Grant of all Options granted
                                            to any one Director shall not exceed $100,000, and (B) the aggregate fair market value on
                                            the Date of Grant of all Awards (including, for greater certainty, the fair market value
                                            of the Options) granted to any one Director under all of the Share Compensation Arrangements
                                            shall not exceed $150,000; provided that such limits shall not apply to (i) Awards taken
                                            in lieu of any cash retainer or meeting director fees, and (ii) a one-time initial grant
                                            to a Director upon such Director joining the Board.

 

    	5

    	 

    

 

	2.5	Granting
    of Awards.

 

		(a)	Any
                                            Award granted under the Plan shall be subject to the requirement that, if at any time counsel
                                            to the Corporation shall determine that the listing, registration or qualification of the
                                            Shares subject to such Award, if applicable, upon any securities exchange or under any law
                                            or regulation of any jurisdiction, or the consent or approval of any securities exchange
                                            or any governmental or regulatory body, is necessary as a condition of, or in connection
                                            with, the grant or exercise of such Award or the issuance or purchase of Shares thereunder,
                                            if applicable, such Award may not be accepted or exercised in whole or in part unless such
                                            listing, registration, qualification, consent or approval shall have been effected or obtained
                                            on conditions acceptable to the Board. Nothing herein shall be deemed to require the Corporation
                                            to apply for or to obtain such listing, registration, qualification, consent or approval.

 

		(b)	Any
                                            Award granted under the Plan shall be subject to the requirement that, the Corporation has
                                            the right to place any restriction or legend on any securities issued pursuant to this Plan
                                            including, but in no way limited to placing a legend to the effect that the securities have
                                            not been registered under the United States Securities Act of 1933 and may not be
                                            offered or sold in the United States unless registration or an exemption from registration
                                            is available.

 

Article
3

OPTIONS

 

	3.1	Nature
    of Options.

 

An
Option is an option granted by the Corporation to a Participant entitling such Participant to acquire, for each Option issued, one Share
from treasury at the Option Price, but subject to the provisions hereof.

 

	3.2	Option
    Awards.

 

Subject
to the provisions set forth in this Plan and any shareholder or regulatory approval which may be required, the Board shall, from time
to time by resolution, in its sole discretion, (i) designate the Eligible Participants who may receive Options under the Plan, (ii) fix
the number of Options, if any, to be granted to each Eligible Participant and the date or dates on which such Options shall be granted,
(iii) determine the price per Share to be payable upon the exercise of each such Option (the “Option Price”) and the
relevant vesting provisions (including Performance Criteria, if applicable) and Option Term, the whole subject to the terms and conditions
prescribed in this Plan, in any Option Agreement and any applicable rules of the TSXV. Unless otherwise set forth in the Option Agreement
or outlined under Article 6.2, the vesting of Options will not commence before the 1st anniversary from the Date of Grant.

 

	3.3	Option
    Price.

 

The
Option Price for Shares that are the subject of any Option shall be fixed by the Board when such Option is granted, but shall not be
less than the Market Value of such Shares at the time of the grant.

 

	3.4	Option
    Term.

 

		(a)	The
                                            Board shall determine, at the time of granting the particular Option, the period during which
                                            the Option is exercisable, commencing on the date such Option is granted to the Participant
                                            and ending as specified in this Plan, or in the Option Agreement, but in no event shall an
                                            Option expire on a date which is later than ten (10) years from the date the Option is granted
                                            (“Option Term”). Unless otherwise determined by the Board, all unexercised
                                            Options shall be cancelled at the expiry of such Options.

 

    	6

    	 

    

 

		(b)	Should
                                            the expiration date for an Option fall within a Black-Out Period or within ten (10) Business
                                            Days following the expiration of a Black-Out Period, such expiration date shall be automatically
                                            extended without any further act or formality to that date which is the tenth Business Day
                                            after the end of the Black-Out Period, such tenth Business Day to be considered the expiration
                                            date for such Option for all purposes under the Plan. Notwithstanding Section 7.2 hereof,
                                            the ten (10) Business Day-period referred to in this Section 3.4 may not be extended by the
                                            Board.

 

	3.5	Exercise
    of Options.

 

		(a)	Subject
                                            to the provisions of this Plan, a Participant shall be entitled to exercise an Option granted
                                            to such Participant at any time prior to the expiry of the Option Term, subject to vesting
                                            limitations which may be imposed by the Board at the time such Option is granted.

 

		(b)	Prior
                                            to its expiration or earlier termination in accordance with the Plan, each Option shall be
                                            exercisable as to all or such part or parts of the optioned Shares and at such time or times
                                            and/or pursuant to the achievement of such Performance Criteria and/or other vesting conditions
                                            as the Board at the time of granting the particular Option, may determine in its sole discretion.
                                            For greater certainty, no Option shall be exercised by a Participant during a Black-Out Period.

 

	3.6	Method
    of Exercise and Payment of Purchase Price.

 

		(a)	Subject
                                            to the provisions of the Plan and the alternative exercise procedures set out herein, an
                                            Option granted under the Plan may be exercisable (from time to time as provided in Section
                                            3.5 hereof) by the Participant (or by the liquidator, executor or administrator, as the case
                                            may be, of the estate of the Participant) by delivering a fully completed Exercise Notice
                                            to the Corporation at its registered office to the attention of the Corporate Secretary of
                                            the Corporation (or the individual that the Corporate Secretary of the Corporation may from
                                            time to time designate), together with a bank draft, certified cheque or other form of payment
                                            acceptable to the Corporation in an amount equal to the aggregate Option Price of the Shares
                                            to be purchased pursuant to the exercise of the Options.

 

		(b)	Where
                                            Shares are to be issued to the Participant pursuant to the terms of this Section 3.6, as
                                            soon as practicable following the receipt of the Exercise Notice and, if Options are exercised
                                            only in accordance with the terms of Section 3.6(a), the required bank draft, certified cheque
                                            or other acceptable form of payment, the Corporation shall duly issue such Shares to the
                                            Participant as fully paid and non-assessable.

 

		(c)	Upon
                                            the exercise of an Option pursuant to Section 3.6(a), the Corporation shall, as soon as practicable
                                            after such exercise but no later than ten (10) Business Days following such exercise, forthwith
                                            cause the transfer agent and registrar of the Shares to either:

 

		(i)	deliver
                                            to the Participant (or to the liquidator, executor or administrator, as the case may be,
                                            of the estate of the Participant) a certificate in the name of the Participant representing
                                            in the aggregate such number of Shares as the Participant (or to the liquidator, executor
                                            or administrator, as the case may be, of the estate of the Participant) shall have then paid
                                            for and as are specified in such Exercise Notice; or

 

		(ii)	in
                                            the case of Shares issued in uncertificated form, cause the issuance of the aggregate number
                                            of Shares the Participant (or the liquidator, executor or administrator, as the case may
                                            be, of the estate of the Participant) shall have then paid for and as are specified in such
                                            Exercise Notice to be evidenced by a book position on the register of the shareholders of
                                            the Corporation to be maintained by the transfer agent and registrar of the Shares.

 

    	7

    	 

    

 

	3.7	Option
    Agreements.

 

Options
shall be evidenced by an Option Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan as the
Board may from time to time determine, provided that the substance of Article 3 and Article 6 hereof be included therein. The Option
Agreement shall contain such terms that may be considered necessary in order that the Option will comply with any provisions respecting
options in the income tax or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident
or citizen or the rules of any regulatory body having jurisdiction over the corporation.

 

Article
4

DEFERRED SHARE UNITS

 

	4.1	Nature
    of DSUs.

 

A
DSU is an Award to an Eligible Director, subject to restrictions and conditions as the Board may determine at the time of grant. Conditions
may be based on continuing service to the Corporation and/or achievement of pre-established vesting conditions.

 

	4.2	DSU
    Awards.

 

		(a)	Each
                                            Eligible Director may receive all or a portion of his or her annual retainer fee in the form
                                            of a grant of DSUs in each fiscal year. The number of DSUs shall be calculated as the applicable
                                            portion of the Eligible Director’s annual retainer fee divided by the Market Value.
                                            At the discretion of the Board, fractional DSUs will not be issued and any fractional entitlements
                                            will be rounded down to the nearest whole number.

 

		(b)	The
                                            DSUs are structured so as to be considered to be a plan described in section 7 of the Tax
                                            Act or any successor to such provision.

 

		(c)	Subject
                                            to the vesting and other conditions and provisions set forth herein and in the DSU Agreement,
                                            the Board shall determine whether each DSU awarded to a Participant shall entitle the Participant:
                                            (i) to receive one Share issued from treasury; (ii) to receive the Cash Equivalent of one
                                            Share; or (iii) to elect to receive either One Share from treasury, the Cash Equivalent of
                                            One Share or a combination of cash and Shares.

 

	4.3	Redemption
    of DSUs.

 

		(a)	Each
                                            Eligible Director shall be entitled to redeem his or her DSUs during the period commencing
                                            on the Business Day immediately following the Termination Date and ending on the date that
                                            is two years following the Termination Date, or a shorter such redemption period set out
                                            in the relevant DSU Agreement, by providing a written notice of settlement to the Corporation
                                            setting out the number of DSUs to be settled and the particulars regarding the registration
                                            of the Shares issuable upon settlement (the “DSU Redemption Notice”).
                                            In the event of the death of an Eligible Director, the Notice of Redemption shall be filed
                                            by the administrator or liquidator of the estate of the Eligible Director.

 

		(b)	If
                                            a DSU Redemption Notice is not received by the Corporation on or before the 90th
                                            day following the Termination Date, the Eligible Director shall be deemed to have delivered
                                            a DSU Redemption Notice and the Corporation shall redeem all of the Eligible Director’s
                                            DSUs in exchange for Shares to be delivered to the Eligible Director, administrator or liquidator
                                            of the estate of the Eligible Director or the cash equivalent of the shares, as applicable.

 

    	8

    	 

    

 

		(c)	For
                                            the purposes of determining the number of Shares from treasury to be issued or cash equivalent
                                            value to be delivered to an Eligible Director upon redemption of DSUs pursuant to Section
                                            4.3, such calculation will be made on the date the Corporation receives, or is deemed to
                                            receive, the DSU Redemption Notice and be the whole number of Shares equal to the whole number
                                            of DSUs then recorded in the Eligible Director’s Account which the Eligible Director
                                            requests or is deemed to request to redeem pursuant to the DSU Redemption Notice. Shares
                                            issued from treasury or the cash equivalent provided will be issued in consideration for
                                            the past services of the Eligible Director to the Corporation and the entitlement of the
                                            Eligible Director under this Plan shall be satisfied in full by such issuance of Shares.

 

		(d)	Subject
                                            to Section 4.3(e), settlement of DSUs shall take place promptly following the Corporation’s
                                            receipt or deemed receipt of the DSU Redemption Notice through delivery of a share certificate
                                            to the Eligible Director, the entry of the Eligible Director’s name on the share register
                                            for the Shares or the cash equivalent of the shares.

 

		(e)	Notwithstanding
                                            any other provision of this Plan, in the event that (i) a DSU Redemption Notice is received
                                            during a Black-Out Period or other trading restriction imposed by the Corporation; or (ii)
                                            the Eligible Director has not delivered a DSU Redemption Notice and the 90th day
                                            following the Termination Date falls during a Black-Out Period or other trading restriction
                                            imposed by the Corporation, then settlement of the applicable DSUs shall be automatically
                                            extended to the tenth (10th) Business Day following the date that such Black-Out
                                            Period or other trading restriction is lifted, terminated or removed.

 

	4.4	DSU
    Agreements.

 

DSUs
shall be evidenced by a DSU Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan as the Board
may from time to time determine, provided that the substance of Article 4 and Article 6 hereof be included therein. The DSU Agreement
shall contain such terms that may be considered necessary in order that the DSU will comply with any provisions respecting deferred share
units in the income tax or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident
or citizen or the rules of any regulatory body having jurisdiction over the corporation.

 

Article
5

RESTRICTED SHARE UNITS

 

	5.1	Nature
    of RSUs.

 

A
RSU is an Award entitling the recipient to acquire Shares, at such purchase price as determined by the Board, subject to such restrictions
and conditions as the Board may determine at the time of grant. Conditions may be based on continuing employment (or other service relationship)
and/or achievement of pre-established performance goals and objectives.

 

	5.2	RSU
    Awards.

 

		(a)	Subject
                                            to the provisions herein set forth and any shareholder or regulatory approval which may be
                                            required, the Board shall, from time to time by resolution, in its sole discretion, (i) designate
                                            the Eligible Participants who may receive RSUs under the Plan, (ii) fix the number of RSUs,
                                            if any, to be granted to each Eligible Participant and the date or dates on which such RSUs
                                            shall be granted, and (iii) determine the relevant conditions and vesting provisions (including
                                            the applicable Performance Period and Performance Criteria, if any) and Restriction Period
                                            of such RSUs, the whole subject to the terms and conditions prescribed in this Plan and in
                                            any RSU Agreement.

 

		(b)	The
                                            Board shall have the authority to determine any vesting terms applicable to the grant of
                                            RSUs, provided that the terms comply with Section 409A, with respect to a U.S. Taxpayer.

 

    	9

    	 

    

 

		(c)	Unless
                                            otherwise set forth in the RSU Agreement or outlined under Article 6.2, the vesting of RSUs
                                            will not commence before the 1st anniversary from the Date of Grant.

 

		(d)	The
                                            RSUs are structured so as to be considered to be a plan described in section 7 of the Tax
                                            Act or any successor to such provision.

 

		(e)	Subject
                                            to the vesting and other conditions and provisions set forth herein and in the RSU Agreement,
                                            the Board shall determine whether each RSU awarded to a Participant shall entitle the Participant:
                                            (i) to receive one Share issued from treasury; (ii) to receive the Cash Equivalent of one
                                            Share; or (iii) to elect to receive either One Share from treasury, the Cash Equivalent of
                                            One Share or a combination of cash and Shares.

 

		(f)	RSUs
                                            shall be settled by the Participant at any time beginning on the first Business Day following
                                            their RSU Vesting Determination Date but no later than the RSU Settlement Date.

 

	5.3	Restriction
    Period.

 

The
applicable restriction period in respect of a particular RSU award shall be determined by the Board. For Eligible Participants subject
to the Income Tax Act (Canada), the Restriction Period of a particular RSU in all cases shall end no later than December 31 of
the calendar year which is three (3) years after the calendar year in which the Award is granted (“Restriction Period”).
For example, the Restriction Period for a grant made in June 2018 shall end no later than December 31, 2021. Subject to the Board’s
determination, any vested RSUs with respect to a Restriction Period will be paid to Participants in accordance with Article 5, no later
than the end of the Restriction Period. Unless otherwise determined by the Board, all unvested RSUs shall be cancelled on the RSU Vesting
Determination Date (as such term is defined in Section 5.5) and, in any event, no later than the last day of the Restriction Period.

 

	5.4	Performance
    Criteria and Performance Period.

 

		(a)	For
                                            each award of RSUs, the Board shall establish the period in which any Performance Criteria
                                            and other vesting conditions must be met in order for a Participant to be entitled to receive
                                            Shares in exchange for all or a portion of the RSUs held by such Participant (the “Performance
                                            Period”), provided that such Performance Period may not expire after the end of
                                            the Restriction Period, being no longer than three (3) years after the calendar year in which
                                            the Award was granted.

 

		(b)	The
                                            Board will issue Performance Criteria prior to the Date of Grant to which such Performance
                                            Criteria pertain. The Performance Criteria may be based upon the achievement of corporate,
                                            divisional or individual goals, and may be applied to performance relative to an index or
                                            comparator group, or on any other basis determined by the Board. Following the Date of Grant,
                                            the Board may modify the Performance Criteria as necessary to align them with the Corporation’s
                                            corporate objectives, subject to any limitations set forth in an RSU Agreement or an employment
                                            or other agreement with a Participant. The Performance Criteria may include a threshold level
                                            of performance below which no payment will be made (or no vesting will occur), levels of
                                            performance at which specified payments will be made (or specified vesting will occur) and
                                            a maximum level of performance above which no additional payment will be made (or at which
                                            full vesting will occur), all as set forth in the applicable RSU Agreement.

 

	5.5	RSU
    Vesting Determination Date.

 

The
vesting determination date means the date on which the Board determines if the Performance Criteria and/or other vesting conditions with
respect to a RSU have been met (the “RSU Vesting Determination Date”), and as a result, establishes the number of
RSUs that become vested, if any. For greater certainty, the RSU Vesting Determination Date must fall after the end of the Performance
Period, if any, but no later than the last day of the Restriction Period each of which will not occur before the 1st anniversary
from the Date of Grant, unless provided for under the RSU Agreement or under a situation outlined in Article 6.2.

 

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	5.6	Settlement
    of RSUs.

 

		(a)	Except
                                            as otherwise provided in the RSU Agreement,

 

		(i)	all
                                            of the vested RSUs covered by a particular grant shall be settled as soon as practicable
                                            and in any event within ten (10) Business Days following their RSU Vesting Determination
                                            Date and, subject to Section 5.2 no later than the end of the Restriction Period (the “RSU
                                            Settlement Date”).

 

		(ii)	a
                                            Participant is entitled to deliver to the Corporation, on or before the RSU Settlement Date,
                                            an RSU Settlement Notice in respect of any or all vested RSUs held by such Participant.

 

		(b)	Subject
                                            to Section 5.6(d), settlement of RSUs shall take place promptly following the RSU Settlement
                                            Date and take the form set out in the RSU Settlement Notice through:

 

		(i)	in
                                            the case of settlement of RSUs for their Cash Equivalent, delivery of a cheque to the Participant
                                            representing the Cash Equivalent;

 

		(ii)	in
                                            the case of settlement of RSUs for Shares, delivery of a share certificate to the Participant
                                            or the entry of the Participant’s name on the share register for the Shares; or

 

		(iii)	in
                                            the case of settlement of the RSUs for a combination of Shares and the Cash Equivalent, a
                                            combination of (a) and (b) above.

 

		(c)	If
                                            an RSU Settlement Notice is not received by the Corporation on or before the RSU Settlement
                                            Date, settlement shall take the form of Shares issued from treasury as set out in Section
                                            5.7(b).

 

		(d)	Notwithstanding
                                            any other provision of this Plan, in the event that an RSU Settlement Date falls during a
                                            Black-Out Period or other trading restriction imposed by the Corporation and the Participant
                                            has not delivered an RSU Settlement Notice, then such RSU Settlement Date shall be automatically
                                            extended to the tenth (10th) Business Day following the date that such Black-Out
                                            Period or other trading restriction is lifted, terminated or removed.

 

	5.7	Determination
    of Amounts.

 

		(a)	Cash
                                            Equivalent of RSUs. For purposes of determining the Cash Equivalent of RSUs to be made
                                            pursuant to Section 5.6, such calculation will be made on the RSU Settlement Date and shall
                                            equal the Market Value on the RSU Settlement Date multiplied by the number of vested RSUs
                                            in the Participant’s Account which the Participant desires to settle in cash pursuant
                                            to the RSU Settlement Notice.

 

		(b)	Payment
                                            in Shares; Issuance of Shares from Treasury. For the purposes of determining the number
                                            of Shares from treasury to be issued and delivered to a Participant upon settlement of RSUs
                                            pursuant to Section 5.6, such calculation will be made on the RSU Settlement Date and be
                                            the whole number of Shares equal to the whole number of vested RSUs then recorded in the
                                            Participant’s Account which the Participant desires to settle pursuant to the RSU Settlement
                                            Notice. Shares issued from treasury will be issued in consideration for the past services
                                            of the Participant to the Corporation and the entitlement of the Participant under this Plan
                                            shall be satisfied in full by such issuance of Shares.

 

	5.8	RSU
    Agreements.

 

RSUs
shall be evidenced by a RSU Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan as the Board
may from time to time determine, provided that the substance of Article 6 hereof be included therein. The RSU Agreement shall contain
such terms that may be considered necessary in order that the RSU will comply with any provisions respecting restricted share units in
the income tax or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or
citizen or the rules of any regulatory body having jurisdiction over the corporation.

 

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Article
6

GENERAL CONDITIONS

 

	6.1	General
    Conditions applicable to Awards.

 

Each
Award, as applicable, shall be subject to the following conditions:

 

		(a)	Employment
                                            - The granting of an Award to a Participant shall not impose upon the Corporation or
                                            a Subsidiary any obligation to retain the Participant in its employ in any capacity. For
                                            greater certainty, the granting of Awards to a Participant shall not impose any obligation
                                            on the Corporation to grant any awards in the future nor shall it entitle the Participant
                                            to receive future grants.

 

		(b)	Rights
                                            as a Shareholder - Neither the Participant nor such Participant’s personal representatives
                                            or legatees shall have any rights whatsoever as shareholder in respect of any Shares covered
                                            by such Participant’s Awards until the date of issuance of a share certificate to such
                                            Participant (or to the liquidator, executor or administrator, as the case may be, of the
                                            estate of the Participant) or the entry of such person’s name on the share register
                                            for the Shares. Without in any way limiting the generality of the foregoing, no adjustment
                                            shall be made for dividends or other rights for which the record date is prior to the date
                                            such share certificate is issued or entry of such person’s name on the share register
                                            for the Shares.

 

		(c)	Conformity
                                            to Plan – In the event that an Award is granted or a Grant Agreement is executed
                                            which does not conform in all particulars with the provisions of the Plan, or purports to
                                            grant Awards on terms different from those set out in the Plan, the Award or the grant of
                                            such Award shall not be in any way void or invalidated, but the Award so granted will be
                                            adjusted to become, in all respects, in conformity with the Plan.

 

		(d)	Non-Transferability
                                            – Except as set forth herein, Awards are not transferable and assignable. Awards
                                            may be exercised only by:

 

		(i)	the
                                            Participant to whom the Awards were granted; or

 

		(ii)	with
                                            the Corporation’s prior written approval and subject to such conditions as the Corporation
                                            may stipulate, such Participant’s family or retirement savings trust or any registered
                                            retirement savings plans or registered retirement income funds of which the Participant is
                                            and remains the annuitant; or

 

		(iii)	upon
                                            the Participant’s death, by the legal representative of the Participant’s estate;
                                            or

 

		(iv)	upon
                                            the Participant’s incapacity, the legal representative having authority to deal with
                                            the property of the Participant;

 

provided
that any such legal representative shall first deliver evidence satisfactory to the Corporation of entitlement to exercise any Award.
A person exercising an Award may subscribe for Shares only in the person’s own name or in the person’s capacity as a legal
representative.

 

    	12

    	 

    

 

	6.2	General
    Conditions applicable to Awards. 

 

Each
Award shall be subject to the following conditions:

 

		(a)	Termination
                                            for Cause. Upon a Participant ceasing to be an Eligible Participant for “cause”,
                                            all unexercised, vested or unvested Awards granted to such Participant shall terminate on
                                            the effective date of the termination as specified in the notice of termination. For the
                                            purposes of the Plan, the determination by the Corporation that the Participant was discharged
                                            for cause shall be binding on the Participant. “Cause” shall include,
                                            among other things, gross misconduct, theft, fraud, breach of confidentiality or breach of
                                            the Corporation’s Code of Conduct and any reason determined by the Corporation to be
                                            cause for termination.

 

		(b)	Permanent
                                            Disability. In the case of a Participant’s termination of employment/service due
                                            to permanent disability, Awards will be treated as follows:

 

		(i)	Options:
                                            Upon a Participant ceasing to be an Eligible Participant by reason of permanent disability,
                                            (i) any unvested Option shall terminate and become void immediately, and (ii) any vested
                                            Option will cease to be exercisable on the earlier of the ninety (90) days from the date
                                            on which the Participant ceases his or her employment or service relationship with the Corporation
                                            by reason of permanent disability, and the expiry date of the Award set forth in the Option
                                            Agreement, after which the Option will expire. For clarity, any Option that would vest within
                                            12 months of the Participant ceasing to be an Eligible Participant as per this Section 6.2(b)(i)
                                            will vest. Notwithstanding this, any unvested Options with Performance Criteria attached
                                            to them will have the performance measured based on a pro-rata Performance Period up to the
                                            Termination Date with any Options earned based on Performance Criteria vesting and all Options
                                            not meeting the Performance Criteria forfeited. If the Participant is determined to have
                                            breached any post-employment restrictive covenants in favour of the Corporation within a
                                            12 month period following the Termination Date, then any Awards held by the Participant,
                                            whether vested or unvested, will immediately expire and the Participant shall pay to the
                                            Corporation any “in-the-money” amounts realized upon exercise of Awards
                                            following the Termination Date.

 

		(ii)	RSUs/DSUs:
                                            Except as otherwise determined by the Board from time to time, at its sole discretion, upon
                                            a Participant ceasing to be an Eligible Participant as a result of permanent disability,
                                            all unvested RSUs in the Participant’s Account as of such date relating to a Restriction
                                            Period in progress shall remain outstanding and in effect until the applicable RSU Vesting
                                            Determination Date. DSUs will immediately vest.

 

		(c)	Resignation.
                                            In the case of a Participant ceasing to be an Eligible Participant due to such Participant’s
                                            resignation, subject to any later expiration dates determined by the Board, all Awards shall
                                            expire on the earlier of ninety (90) days after the effective date of such resignation, or
                                            the expiry date of the Award, to the extent such Awards were vested and exercisable by the
                                            Participant on the effective date of such resignation and all unexercised unvested Awards
                                            granted to such Participant shall terminate on the effective date of such resignation.

 

		(d)	Termination
                                            or Cessation. In the case of a Participant ceasing to be an Eligible Participant for
                                            any reason (other than for “cause”, resignation or death) the number of
                                            Awards that may vest is subject to pro ration over the applicable vesting or performance
                                            period and shall expire on the earlier of ninety (90) days after the effective date of the
                                            Termination Date, or the expiry date of the Awards. For greater certainty, the pro ration
                                            calculation referred to above shall be net of previously vested Awards. Notwithstanding this,
                                            any Awards with Performance Criteria attached to them will have the performance measured
                                            based on the pro-rata Performance Period with any Awards earned based on Performance Criteria
                                            vesting and all Awards not meeting the Performance Criteria forfeited.

 

		(e)	Death.
                                            If a Participant dies while in his or her capacity as an Eligible Participant, all unvested
                                            Awards will immediately vest and all Awards will expire one hundred eighty (180) days after
                                            the death of such Participant.

 

    	13

    	 

    

 

		(f)	Change
                                            in Control. If a Participant is terminated without “cause” or resigns
                                            for good reason during the 12 month period following the consummation of a Change in Control,
                                            then any unvested Awards will immediately vest and may be exercised within thirty (30) days
                                            of such date. Notwithstanding this, any unvested Options or RSUs with Performance Criteria
                                            attached to them will have the performance measured based on a pro-rata Performance Period
                                            up to the Termination Date with any Options or RSUs earned based on Performance Criteria
                                            vesting and all Options or RSUs not meeting the Performance Criteria forfeited. Any Options
                                            that become exercisable pursuant to this Section 6.2(f) shall remain open for exercise until
                                            the earlier of their expiry date as set out in the Award Agreement and the date that is thirty
                                            (30) days after such termination or dismissal.

 

		(g)	Clawback.
                                            It is a condition of each grant of an Award that if the Corporation’s financial statements
                                            (the “Original Statements”) are required to be restated (other than as
                                            a result of a change in accounting policy by the Corporation or under International Financial
                                            Reporting Standards applicable to the Corporation) within three years following which such
                                            Original Statements were received by shareholders at the Corporation’s then most recent
                                            annual general meeting of shareholders, and such restated financial statements (the “Restated
                                            Statements”) disclose, in the opinion of the Board, acting reasonably, materially
                                            worse financial results than those contained in the Original Statements, then the Board may,
                                            in its sole discretion, to the full extent permitted by governing law and to the extent it
                                            determines that such action is in the best interest of the Corporation, and in addition to
                                            any other rights that the Corporation or an Affiliate may have at law or under any agreement,
                                            take any or all of the following actions, as applicable): (i) require the Participant to
                                            reimburse the Corporation for any amount paid to the Participant in respect of an Award in
                                            cash in excess of the amount that should otherwise have been paid in respect of such Award
                                            had the determination of such compensation been based upon the Restated Statements, less,
                                            in any event, the amount of tax withheld pursuant to the Tax Act or other relevant taxing
                                            authority in respect of the amount paid in cash in the year of payment; (ii) cancel and terminate
                                            any one or more unvested Awards on or prior to the applicable maturity or vesting dates,
                                            or cancel or terminate any outstanding Awards which have vested in the twelve (12) months
                                            prior to the date on which the Board determines that the Corporation’s Original Statements
                                            are required to be restated (a “Relevant Equity Recoupment Date”); and/or
                                            (iii) require payment to the Corporation of the value of any Shares of the Corporation acquired
                                            by the Participant pursuant to an Award granted in the twelve (12) months prior to a Relevant
                                            Equity Recoupment Date (less any amount paid by the Participant) to acquire such Shares and
                                            less the amount of tax withheld pursuant to the Tax Act or other relevant taxing authority
                                            in respect of such Shares).

 

	6.3	Unfunded
    Plan.

 

Unless
otherwise determined by the Board, this Plan shall be unfunded. To the extent any Participant or his or her estate holds any rights by
virtue of a grant of Awards under this Plan, such rights (unless otherwise determined by the Board) shall be no greater than the rights
of an unsecured creditor of the Corporation. Notwithstanding the foregoing, any determinations made shall be such that the Plan continuously
meets the requirements of paragraph 6801(d) of the Income Tax Regulations, adopted under the Income Tax Act (Canada) or any successor
provision thereto.

 

Article
7

ADJUSTMENTS AND AMENDMENTS

 

	7.1	Adjustment
    to Shares Subject to Outstanding Awards.

 

		(a)	In
                                            the event of any subdivision of the Shares into a greater number of Shares at any time after
                                            the grant of an Award to a Participant and prior to the expiration of the term of such Award,
                                            the Corporation shall deliver to such Participant, at the time of any subsequent exercise
                                            or vesting of such Award in accordance with the terms hereof, in lieu of the number of Shares
                                            to which such Participant was theretofore entitled upon such exercise or vesting of such
                                            Award, but for the same aggregate consideration payable therefor, such number of Shares as
                                            such Participant would have held as a result of such subdivision if on the record date thereof
                                            the Participant had been the registered holder of the number of Shares to which such Participant
                                            was theretofore entitled upon such exercise or vesting of such Award.

 

    	14

    	 

    

 

		(b)	In
                                            the event of any consolidation of Shares into a lesser number of Shares at any time after
                                            the grant of an Award to any Participant and prior to the expiration of the term of such
                                            Award, the Corporation shall deliver to such Participant at the time of any subsequent exercise
                                            or vesting of such Award in accordance with the terms hereof in lieu of the number of Shares
                                            to which such Participant was theretofore entitled upon such exercise or vesting of such
                                            Award, but for the same aggregate consideration payable therefor, such number of Shares as
                                            such Participant would have held as a result of such consideration if on the record date
                                            thereof the Participant had been the registered holder of the number of Shares to which such
                                            Participant was theretofore entitled upon such exercise or vesting of such Award.

 

		(c)	If,
                                            at any time after the grant of an Award to any Participant and prior to the expiration of
                                            the term of such Award, the Corporation shall make a distribution, without the receipt of
                                            consideration, to all holders of Shares or other securities in the capital of the Corporation,
                                            or cash, evidences of indebtedness or other assets of the Corporation (excluding an ordinary
                                            course dividend in cash or shares, but including for greater certainty shares or equity interests
                                            in a subsidiary or business unit of the Corporation or one of its subsidiaries or cash proceeds
                                            of the disposition of such a subsidiary or business unit), or should the Corporation effect
                                            any transaction or change having a similar effect, then the price or the number of Shares
                                            to which the Participant is entitled upon exercise or vesting of Award shall be adjusted
                                            to take into account such distribution, transaction or change. The Board shall determine
                                            the appropriate adjustments to be made in such circumstances in order to maintain the Participants’
                                            economic rights in respect of their Awards in connection with such distribution, transaction
                                            or change.

 

	7.2	Amendment
    or Discontinuance of the Plan.

 

		(a)	The
                                            Board may amend the Plan or any Award at any time without the consent of the Participants
                                            provided that such amendment shall:

 

		(i)	not
                                            adversely alter or impair any Award previously granted except as permitted by the provisions
                                            of Article 7 hereof;

 

		(ii)	be
                                            in compliance with applicable law and subject to any regulatory approvals including, where
                                            required, the approval of the TSXV; and

 

		(iii)	be
                                            subject to shareholder approval, where required by law, the requirements of the TSXV or the
                                            provisions of the Plan, provided that shareholder approval shall not be required for the
                                            following amendments and the Board may make any changes which may include but are not limited
                                            to:

 

amendments
of a general “housekeeping” or clerical nature that, among others, clarify, correct or rectify any ambiguity, defective
provision, error or omission in the Plan; and

 

changes
that alter, extend or accelerate the terms of vesting or settlement applicable to any Award provided that for Options it does not entail
an extension beyond the original Expiry Date;

 

The
Committee may, by resolution, but subject to applicable regulatory approvals, decide that any of the provisions hereof concerning the
effect of termination of the Participant’s employment shall not apply for any reason acceptable to the Committee.

 

    	15

    	 

    

 

		(b)	Notwithstanding
                                            Section 7.2(a)(iii), the Board shall be required to obtain shareholder approval to make the
                                            following amendments:

 

		(i)	any
                                            change to the maximum number of Shares issuable from treasury under the Plan, except such
                                            increase by operation of Section 2.4 and in the event of an adjustment pursuant to Article
                                            7;

 

		(ii)	any
                                            amendment which reduces the exercise price of any Award, as applicable, after such Awards
                                            have been granted or any cancellation of an Award and the substitution of that Award by a
                                            new Award with a reduced price, except in the case of an adjustment pursuant to Article 7,
                                            provided that disinterested shareholder approval will be obtained for any reduction in the
                                            exercise price if the Participant is an Insider of the Corporation at the time of the proposed
                                            amendment;

 

		(iii)	any
                                            amendment which extends the expiry date of any Award, or the Restriction Period of any RSU
                                            beyond the original expiry date, except in case of an extension due to a Black-Out Period;

 

		(iv)	any
                                            amendment which would have the potential of broadening or increasing participation by Insiders;

 

		(v)	any
                                            amendment which would permit any Award granted under the Plan to be transferable or assignable
                                            by any Participant other than for normal estate settlement purposes;

 

		(vi)	any
                                            amendment which increases the maximum number of Shares that may be (i) issuable to Insiders,
                                            Associates of such Insiders, Consultants or Persons retained to provide Investor Relations
                                            Activities at any time; or (ii) issued to Insiders, Associates of such Insiders, Consultants
                                            or Persons retained to provide Investor Relations Activities under the Plan; and any other
                                            proposed or established Share Compensation Arrangement in a one-year period, except in case
                                            of an adjustment pursuant to Article 7;

 

		(vii)	increase
                                            limits imposed on the participation of non-employee directors that are not officers or employees
                                            of the Corporation;

 

		(viii)	otherwise
                                            cause the Plan to cease to comply with any tax or regulatory requirement, including for these
                                            purposes any approval or other requirement; or

 

		(ix)	any
                                            amendment to the amendment provisions of the Plan, provided that Shares held directly or
                                            indirectly by Insiders benefiting from the amendments in Sections (ii) and (iii) shall be
                                            excluded when obtaining such shareholder approval.

 

		(c)	The
                                            Board may, subject to regulatory approval, discontinue the Plan at any time without the consent
                                            of the Participants provided that such discontinuance shall not materially and adversely
                                            affect any Awards previously granted to a Participant under the Plan.

 

	7.3	Change
    in Control

 

		(a)	If
                                            a Change of Control occurs, and unless otherwise provided in an Award Agreement or a written
                                            employment contract between the Corporation and a Participant and except as otherwise set
                                            out in this Section 7.3(a), the Board, may provide that: (1) the successor corporation or
                                            entity will assume each Award or replace it with a substitute Award on terms substantially
                                            similar to the existing Award; (2) the Awards will be surrendered for a cash payment made
                                            by the successor corporation or entity equal to the Fair Market Value thereof; or (3) any
                                            combination of the foregoing will occur, provided that the replacement of any Option with
                                            a substitute Option shall, at all times, comply with the provisions of subsection 7(1.4)
                                            of the Tax Act, and the replacement of any Award with a substitute Option, substitute DSU
                                            or substitute RSU shall be such that the substitute Award shall continuously be governed
                                            by section 7 of the Tax Act.

 

    	16

    	 

    

 

		(b)	If
                                            within 12 months following a Change of Control, and unless otherwise provided in an Award
                                            Agreement or a written employment contract between the Corporation and a Participant, a Participant’s
                                            service, consulting relationship, or employment with the Corporation, or the continuing entity
                                            is terminated without cause, or the Participant resigns from his or her employment as a result
                                            of either (i) the Corporation requiring the Participant to be based at a location in excess
                                            of one hundred (100) kilometers from the location of the Participant’s principal job
                                            location or office immediately prior to a Change of Control; or (ii) a reduction in the Participant’s
                                            base salary, or a substantial reduction in the Participant’s target compensation under
                                            any incentive compensation plan, as in effect as of the date of a Change of Control, then
                                            the vesting of all Awards then held by such Participant (and, if applicable, the time during
                                            which such Awards may be exercised) will have all of their Options, Deferred Share Units
                                            or Restricted Share Units, as applicable, immediately vest. In the event that an Award is
                                            subject to vesting upon the attainment of Performance Criteria, then the number of Options
                                            or Restricted Share Units that shall immediately vest will be determined by multiplying the
                                            Award Agreement by the pro rata Performance Criteria achieved by the Termination Date.

 

Article
8

MISCELLANEOUS

 

	8.1	Use
    of an Administrative Agent and Trustee.

 

The
Board may in its sole discretion appoint from time to time one or more entities to act as administrative agent to administer the Awards
granted under the Plan and to act as trustee to hold and administer the assets that may be held in respect of Awards granted under the
Plan, the whole in accordance with the terms and conditions determined by the Board in its sole discretion. The Corporation and the administrative
agent will maintain records showing the number of Awards granted to each Participant under the Plan.

 

	8.2	Tax
    Withholding.

 

		(a)	Notwithstanding
                                            any other provision of this Plan, all distributions, delivery of Shares or payments to a
                                            Participant (or to the liquidator, executor or administrator, as the case may be, of the
                                            estate of the Participant) under the Plan shall be made net of applicable source deductions.
                                            If the event giving rise to the withholding obligation involves an issuance or delivery of
                                            Shares, then, the withholding obligation may be satisfied by (a) having the Participant elect
                                            to have the appropriate number of such Shares sold by the Corporation, the Corporation’s
                                            transfer agent and registrar or any trustee appointed by the Corporation pursuant to Section
                                            8.1 hereof, on behalf of and as agent for the Participant as soon as permissible and practicable,
                                            with the proceeds of such sale being delivered to the Corporation, which will in turn remit
                                            such amounts to the appropriate governmental authorities, or (b) any other mechanism as may
                                            be required or appropriate to conform with local tax and other rules.

 

		(b)	Notwithstanding
                                            the first paragraph of this Section 8.2, the applicable tax withholdings may be waived where
                                            the Participant directs in writing that a payment be made directly to the Participant’s
                                            registered retirement savings plan in circumstances to which regulation 100(3) of the regulations
                                            of the Tax Act apply.

 

    	17

    	 

    

 

	8.3	Reorganization
    of the Corporation.

 

The
existence of any Awards shall not affect in any way the right or power of the Corporation or its shareholders to make or authorize any
adjustment, recapitalization, reorganization or other change in the Corporation’s capital structure or its business, or any amalgamation,
combination, merger or consolidation involving the Corporation or to create or issue any bonds, debentures, shares or other securities
of the Corporation or the rights and conditions attaching thereto or to affect the dissolution or liquidation of the Corporation or any
sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar nature
or otherwise.

 

	8.4	Governing
    Laws.

 

The
Plan and all matters to which reference is made herein shall be governed by and interpreted in accordance with the laws of the Province
of Ontario and the federal laws of Canada applicable therein.

 

	8.5	Severability.

 

The
invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision and
any invalid or unenforceable provision shall be severed from the Plan.

 

	8.6	Effective
    Date of the Plan.

 

The
Plan was approved by the Board on June 9, 2020 and will be effective upon receipt of shareholder and TSXV approvals (the “Effective
Date”) until the date it is terminated by the Board in accordance with the Plan.

 

Article
9

CALIFORNIA PARTICIPANTS

 

Notwithstanding
any other provision contained in this Plan or in any Grant Agreement, this Article 9 shall apply to all Participants that receive Awards
issued in reliance on Section 25102(o) of the California Corporations Code (each, a “California Participant”).

 

	9.1	Termination
    of Employment.

 

Unless
a California Participant’s employment is terminated for Cause, the right to exercise a California Option awarded under the Plan
in the event of termination of employment continues until the earlier of: (i) the expiry date set forth in the applicable Option Agreement
or (ii) (A) if termination was caused by death or Permanent Disability, at least six months from the date of termination and (B) if termination
was caused other than by death or Permanent Disability, at least thirty days from the date of termination.

 

For
purposes of Section 9.1, “Permanent Disability” shall mean the inability of the California Participant, in the opinion of
a qualified physician acceptable to the Corporation, to perform the major duties of the California Participant’s position with
the Corporation because of the sickness or injury of the California Participant.

 

	9.2	Issuance
    of Securities

 

All
securities granted pursuant to the Plan must be granted within ten years from the earlier of the date on which this Plan was adopted
by the Board or the date this Plan was approved by the shareholders of the Corporation.

 

	9.3	Approval
    of Plan

 

The
Plan shall be approved by a majority of the outstanding securities of the Corporation entitled to vote by the later of (a) a period beginning
twelve months before and ending twelve months after the date of adoption thereof by the Board or (b) the first issuance of any security
pursuant to the Plan in the State of California (within the meaning of Section 25008 of the California Corporations Code). Securities
granted pursuant to the Plan prior to security holder approval of the Plan shall become exercisable no earlier than the date of shareholder
approval of the Plan and such securities shall be rescinded if such security holder approval is not received in the manner described
in the preceding sentence. Notwithstanding the foregoing, while the Corporation is a foreign private issuer, as defined by Rule 3b-4
of the United States Exchange Act of 1934, as amended, shall not be required to comply with this Section 9.3 provided that the aggregate
number of California Participants granted securities under all incentive plans and agreements and issued securities under all purchase
and bonus plans and agreements does not exceed thirty five.

 

    	18

    	 

    

 

Article
10

Plan Provisions Applicable to U.S. Taxpayers

 

	10.1	General.

 

The
provisions of this Article 10 apply to Awards held by a U.S. Taxpayer to the extent such Awards are subject to U.S. Taxation. The following
provisions apply, notwithstanding anything to the contrary in the Plan. All capitalized terms used in this Article 10 and not defined
herein, shall have the meaning attributed to them in the Plan.

 

	10.2	Definitions.

 

		(a)	“Code”
                                            means the United States Internal Revenue Code of 1986, as amended, and any applicable United
                                            States Treasury Regulations and other binding regulatory guidance thereunder.

 

		(b)	“Section
                                            409A” means section 409A of the Code.

 

		(c)	“Separation
                                            From Service” shall mean shall mean the separation from service with the Corporation
                                            within the meaning of U.S. Treas. Regs. § 1.409A-1(h). Whether a Separation from Service
                                            has occurred is determined based on whether the facts and circumstances indicate that the
                                            Corporation and the Participant reasonably anticipated that no further services would be
                                            performed after a certain date or that the level of bona fide services the Participant would
                                            perform after such date (whether as an employee or independent contractor) would permanently
                                            decrease to no more than twenty percent (20%) of the average level of bona fide services
                                            performed (whether as an employee or an independent contractor) over the immediately preceding
                                            thirty six (36) month period (or the full period of services to the Corporation if the Participant
                                            has been providing services to the Corporation less than thirty six (36) months)). Separation
                                            from service shall not be deemed to occur while the Participant is on military leave, sick
                                            leave or other bona fide leave of absence if the period does not exceed six (6) months or,
                                            if longer, so long as the Participant retains a right to reemployment with the Corporation
                                            under an applicable statute or by contract. For this purpose, a leave is bona fide only if,
                                            and so long as, there is a reasonable expectation that the Participant will return to perform
                                            services for the Corporation. Notwithstanding the foregoing, a twenty-nine (29) month period
                                            of absence will be substituted for such six (6) month period if the leave is due to any medically
                                            determinable physical or mental impairment that can be expected to result in death or can
                                            be expected to last for a continuous period of no less than six (6) months and that causes
                                            the Participant to be unable to perform the duties of his or her position of employment.
                                            For this purpose, the Corporation includes all entities would be considered a single employer
                                            for purposes of U.S. Treasury Regulations; provided that, in applying those regulations,
                                            the language “at least 50 percent” shall be used instead of “at least 80
                                            percent” each place it appears therein. Notwithstanding the foregoing, with respect
                                            to a Participant who is a non-employee director, a “Separation from Service”
                                            shall mean a complete severance of a director’s relationship as a director of the Corporation
                                            and as an independent contractor of the Corporation. A director may have a Separation from
                                            Service upon resignation as a director even if the director then becomes an officer or employee
                                            of the Corporation.

 

		(d)	“Specified
                                            Employee” means a US Taxpayer who meets the definition of “specified employee,”
                                            as defined in Section 409A(a)(2)(B)(i) of the Code.

 

		(e)	“US
                                            Taxpayer” means a Participant whose compensation from the Corporation is subject
                                            to Section 409A.

 

    	19

    	 

    

 

	10.3	Compliance
    with Section 409A.

 

Notwithstanding
any provision of the Plan to the contrary, it is intended that any payments under the Plan either be exempt from or comply with Section
409A, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes
or penalties under Section 409A. Each payment made in respect of Restricted Share Units and Deferred Share Units shall be deemed to be
a separate payment for purposes of Section 409A. Each US Taxpayer is solely responsible and liable for the satisfaction of all taxes
and penalties that may be imposed on or for the account of such US Taxpayer in connection with the Plan (including any taxes and penalties
under Section 409A), and neither the Corporation nor any of its subsidiaries shall have any obligation to indemnify or otherwise hold
such US Taxpayer (or any beneficiary) harmless from any or all of such taxes or penalties.

 

		(a)	Option
                                            Awards. When determining the Option Price for any Option Award granted to a US Taxpayer,
                                            the “Market Value” shall be determined in the manner defined in Section 1.1 but
                                            without any discount permitted by the rules or policies of the TSXV.

 

		(b)	DSU
                                            Awards. Notwithstanding Article 4, a DSU which becomes payable on account of a Termination
                                            Date shall be payable by reason of such circumstance only if the circumstance is a Separation
                                            from Service; and if such payment has become payable on account of a Separation from Service,
                                            such payment shall be made as soon as administratively practicable but in all events by the
                                            60th day following the Separation from Service (without regard to any DSU Redemption
                                            Notice given by the Participant); provided that if the payment is to be made to any Participant
                                            who is determined to be a Specified Employee, such payment shall not be paid before the date
                                            which is six months after such Specified Employee’s Separation from Service (or, if
                                            earlier, the date of death of such Specified Employee). Following any applicable six month
                                            delay of payment, all such delayed payments shall be made to the Specified Employee in a
                                            lump sum on the earliest possible payment date.

 

		(c)	RSU
                                            Awards. Notwithstanding Article 5, an RSU which becomes payable upon an RSU Vesting Determination
                                            Date shall be made as soon as administratively practicable but in all events by the 60th
                                            day following the RSU Vesting Determination Date (without regard to any RSU Settlement Notice
                                            given by the Participant). In the case of any termination event that qualifies for accelerated
                                            vesting and payment under Section 6.2, an RSU that is not otherwise exempt from Section 409A
                                            shall be payable by reason of such circumstance only if the circumstance is a Separation
                                            from Service; and if such payment has become payable on account of a Separation from Service,
                                            such payment shall be made as soon as administratively practicable but in all events by the
                                            60th day following the Separation from Service (without regard to any RSU Settlement Notice
                                            given by the Participant); provided that if the payment is to be made to any Participant
                                            who is determined to be a Specified Employee, such payment shall not be paid before the date
                                            which is six months after such Specified Employee’s Separation from Service (or, if
                                            earlier, the date of death of such Specified Employee). Following any applicable six month
                                            delay of payment, all such delayed payments shall be made to the Specified Employee in a
                                            lump sum on the earliest possible payment date.

 

		(d)	Special
                                            Requirement for Option Awards Intended to Qualify as ISOs. An Option Award granted to
                                            a US Taxpayer that is intended to qualify as an “incentive stock option” (“ISO”)
                                            within the meaning of section 422 of the Code shall be subject to the following requirements:

 

		(i)	The
                                            maximum number of Shares available for issuance of ISOs shall be 400,000 Shares.

 

		(ii)	An
                                            ISO may be granted only to employees (including a director or officer who is also an employee)
                                            of the Corporation (or of any parent or subsidiary of the Corporation). For purposes of this
                                            Article 9, the term “employee” shall mean a person who is an employee for purposes
                                            of the Code and the terms “parent” and “subsidiary” shall have the
                                            meanings set forth in sections 424(e) and 424(f) of the Code.

 

		(iii)	The
                                            Corporation will not grant ISOs in which the aggregate fair market value (determined as of
                                            the date of grant) of the Shares with respect to which ISOs are exercisable for the first
                                            time by any US Taxpayer during any calendar year (under this Plan and all other plans of
                                            the Corporation and of any parent or subsidiary of the Corporation) exceeds US$100,000 or
                                            any limitation subsequently set forth in section 422(d) of the Code.

 

    	20

    	 

    

 

		(iv)	When
                                            determining the Option Price for any ISO, the “Market Value” shall be determined
                                            in the manner defined in Section 1.1 but without any discount permitted by the rules or policies
                                            of the TSXV; provided, however, that, in the case of the grant of an ISO to a US Taxpayer
                                            who, at the time such ISO is granted, is a ten percent (10%) shareholder, the exercise price
                                            payable per Share upon exercise of such ISO will be not less than 110% of the Market Value
                                            of a Share on the date of grant of such ISO.

 

		(v)	An
                                            ISO will terminate and no longer be exercisable no later than ten years after the date of
                                            grant of such ISO; provided, however, that in the case of a grant of an ISO to a US Taxpayer
                                            who, at the time such ISO is granted, is a ten percent (10%) shareholder, such ISO will terminate
                                            and no longer be exercisable no later than five years after the date of grant of such ISO.
                                            The foregoing term limits shall apply even if the expiry date falls within a Black-Out Period,
                                            notwithstanding anything in the contrary in Section 3.4(b).

 

		(vi)	If
                                            a US Taxpayer who has been granted ISOs ceases to be employed by the Corporation (or by any
                                            parent or subsidiary of the Corporation) for any reason, whether voluntary or involuntary,
                                            other than death, permanent disability or cause, such ISO shall be exercisable by the US
                                            Taxpayer (to the extent such ISO was vested on the date of cessation of employment) at any
                                            time prior to the earlier of (i) the date that is three months after the date of cessation
                                            of employment or (ii) the expiration of the term of such ISO. If a US Taxpayer who has been
                                            granted ISOs ceases to be employed by the Corporation (or by any parent or subsidiary of
                                            the Corporation) because of the death or permanent disability of such US Taxpayer, such US
                                            Taxpayer, such US Taxpayer’s personal representatives or administrators, or any person
                                            or persons to whom such ISO is transferred by will or the applicable laws of descent and
                                            distribution, may exercise such ISO (to the extent such ISO was vested on the date of death
                                            or permanent disability, as the case may be) at any time prior to the earlier of (i) the
                                            date that is one year after the date of death or permanent disability, as the case may be,
                                            or (ii) the expiration of the term of such ISO. If a US Taxpayer who has been granted ISOs
                                            ceases to be employed by the Corporation (or by any parent or subsidiary of the Corporation)
                                            for cause, the right to exercise such ISO will terminate on the date of cessation of employment,
                                            unless otherwise determined by the directors. For purposes of this Article 9, the term “permanent
                                            disability” has the meaning assigned to that term in section 422(e)(3) of the Code.

 

		(vii)	An
                                            ISO granted to a US Taxpayer may be exercised during such person’s lifetime only by
                                            such US Taxpayer.

 

		(viii)	An
                                            ISO granted to a US Taxpayer may not be transferred, assigned or pledged by such US Taxpayer,
                                            except by will or by the laws of descent and distribution.

 

		(ix)	No
                                            ISO will be granted more than ten years after the earlier of the date this Plan is adopted
                                            by the Board or the date this Plan is approved by the shareholders of the Corporation.

 

    	21

    	 

    

 

APPENDIX
“A”

FORM OF OPTION AGREEMENT

 

ENGINE
MEDIA HOLDINGS, INC.

 

OPTION
AGREEMENT

 

This
Stock Option Agreement (the “Option Agreement”) is entered into between Engine Media Holdings, Inc. (the “Corporation”),
and the optionee named below (the “Optionee”) pursuant to and on the terms and subject to the conditions of the Corporation’s
Omnibus Equity Incentive Plan (the “Plan”). Capitalized terms used and not otherwise defined in this Option Agreement
shall have the meanings set forth in the Plan.

 

The
terms of the option (the “Option”), in addition to those terms set forth in the Plan, are as follows:

 

	1.	Optionee.
                                            The Optionee is ► and the address of the Optionee
                                            is currently ►.

 

	2.	Number
                                            of Shares. The Optionee may purchase up to ►
                                            Shares of the Corporation (the “Option Shares”) pursuant to this Option,
                                            as and to the extent that the Option vests and becomes exercisable as set forth in section
                                            6 of this Option Agreement.

 

	3.	Option
                                            Price. The exercise price is Cdn $► per Option
                                            Share (the “Option Price”).

 

	4.	Date
                                            Option Granted. The Option was granted on ►.

 

	5.	Term
                                            of Option. The Option terminates on ►. (the
                                            “Expiry Date”).

 

	6.	Vesting.
                                            The Option to purchase Option Shares shall vest and become exercisable as follows:

 

►

 

	7.	Exercise
                                            of Options. In order to exercise the Option, the Optionee shall notify the Corporation
                                            in the form annexed hereto as Schedule “A”, whereupon the Corporation shall use
                                            reasonable efforts to cause the Optionee to receive a certificate representing the relevant
                                            number of fully paid and non-assessable Shares in the Corporation.

 

	8.	Transfer
                                            of Option. The Option is not-transferable or assignable except in accordance with the
                                            Plan.

 

	9.	U.S.
                                            Securities Laws. If the Options and the Shares are not registered under the United States
                                            Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state
                                            securities laws, the Options may not be exercised in the “United States” (as
                                            defined in Rule 902 of Regulation S under the U.S. Securities Act) unless an exemption from
                                            the registration requirements of the U.S. Securities Act is available. Any Shares issued
                                            to Optionee in the United States that have not been registered under the U.S. Securities
                                            Act will be deemed “restricted securities” (as defined in Rule 144(a)(3) of the
                                            U.S. Securities Act) and bear a restrictive legend to such effect.

 

	10.	Inconsistency.
                                            This Option Agreement is subject to the terms and conditions of the Plan and, in the event
                                            of any inconsistency or contradiction between the terms of this Option Agreement and the
                                            Plan, the terms of the Plan shall govern.

 

	11.	Severability.
                                            Wherever possible, each provision of this Option Agreement shall be interpreted in such manner
                                            as to be effective and valid under applicable law, but if any provision of this Option Agreement
                                            is held to be invalid, illegal or unenforceable in any respect under any applicable law or
                                            rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect
                                            any other provision or any other jurisdiction, but this Option Agreement shall be reformed,
                                            construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
                                            provision had never been contained herein.

 

    	1

    	 

    

 

	12.	Entire
                                            Agreement. This Option Agreement and the Plan embody the entire agreement and understanding
                                            among the parties and supersede and pre-empt any prior understandings, agreements or representations
                                            by or among the parties, written or oral, which may have related to the subject matter hereof
                                            in any way.

 

	13.	Successors
                                            and Assigns. This Option Agreement shall bind and enure to the benefit of the Optionee
                                            and the Corporation and their respective successors and permitted assigns.

 

	14.	Time
                                            of the Essence. Time shall be of the essence of this Agreement and of every part hereof.

 

	15.	Governing
                                            Law. This Agreement and the Option shall be governed by and interpreted and enforced
                                            in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
                                            therein.

 

	16.	Counterparts.
                                            This Option Agreement may be executed in separate counterparts, each of which is deemed to
                                            be an original and all of which taken together constitute one and the same agreement.

 

[Remainder
of this page left intentionally blank; Signature page follows]

 

    	2

    	 

    

 

 

By
signing this Agreement, the Optionee acknowledges that the Optionee has been provided a copy of and has read and understands the Plan
and agrees to the terms and conditions of the Plan and this Option Agreement.

 

IN
WITNESS WHEREOF the parties hereof have executed this Option Agreement as of the ______ day of                 ,
20__.

 

	 	ENGINE
    MEDIA HOLDINGS, INC.
	 	 	 
	 	Per:	               
	 	Name: 	►
	 	Title:	►

 

	 	 	 
	Witness	 	[Insert Participant’s Name]

 

    	3

    	 

    

 

SCHEDULE
“A”

ELECTION TO EXERCISE STOCK OPTIONS

 

	TO:	ENGINE MEDIA HOLDINGS, INC. (the “Corporation”)

 

The
undersigned Optionee hereby elects to exercise Options granted by the Corporation to the undersigned pursuant to a Grant Agreement dated
►, 20► under the Corporation’s Omnibus Equity
Incentive Plan (the “Plan”), for the number Shares set forth below. Capitalized terms used herein and not otherwise
defined shall have the meanings given to them in the Plan.

 

	Number of Shares to be Acquired:	 	 	 	 
	Option Price (per Share):	 	$	         	 
	Aggregate Purchase Price:	 	 	 	 
	Amount enclosed that is payable on account of any source deductions relating to this Option exercise (contact the Corporation for details of such amount):	 	$	 	 
	[  ] Or check here if alternative arrangements have been made with the Corporation;	 	 	 	 

 

and
hereby tenders a certified cheque, bank draft or other form of payment confirmed as acceptable by the Corporation for such aggregate
purchase price, and, if applicable, all source seductions, and directs such Shares to be registered in the name of _____________________________________________________________________________.

 

In
connection with such exercise the undersigned represents, warrants and covenants to the Corporation (and acknowledges that the Corporation
is relying thereon) that (check one):

 

	[  ] 	1. The undersigned is not a U.S. person (the definition of
which includes, but is not limited to, a person resident in the United States, a partnership or corporation organized or incorporated
under the laws of the United States, and a trust or estate of which any trustee, executor or administrator is a U.S. person), the undersigned
was not offered the Shares in the United States and the Option is not being exercised within the United States or for the account or
benefit of a U.S. person. The terms “United States” and “U.S. person” are as defined in Rule 902
of Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”); or

 

	[  ]	2. The undersigned
represents, warrants and covenants to the Corporation that:

 

		(a)	The
                                            Optionee, upon exercise of Options, is acquiring Shares as principal and for the account
                                            of the Optionee.

 

		(b)	In
                                            issuing the Shares to the Optionee upon the exercise of Options, the Corporation is relying
                                            on the representations and warranties of the Optionee contained herein to support the conclusion
                                            of the Corporation that the issuance of Shares upon the exercise of Options does not require
                                            registration under the U.S. Securities Act or to be qualified under the securities laws of
                                            any state of the United States.

 

    	4

    	 

    

 

		(c)	The
                                            Optionee acknowledges that it is not acquiring the Common Shares as a result of “general
                                            solicitation” or “general advertising” (as such terms are used in Regulation
                                            D under the U.S. Securities Act), including without limitation, advertisements, articles,
                                            notices or other communications published in any newspaper, magazine or similar media or
                                            on the internet, or broadcast over radio or television or on the internet, or any seminar
                                            or meeting whose attendees have been invited by general solicitation or general advertising.

 

		(d)	The
                                            Optionee understands and agrees that the Shares have not been and will not be registered
                                            under the U.S. Securities Act and the Shares are being offered and sold by the Corporation
                                            in reliance upon an exemption from registration under the U.S. Securities Act.

 

		(e)	Neither
                                            the Options nor the Shares issued upon the exercise of Options have been or will be registered
                                            under the U.S. Securities Act or any state securities laws. The Option may not be exercised
                                            in the United States unless exempt from such registration requirements. Shares
                                            issued to the Optionee in the United States will be deemed “restricted securities”
                                            (as defined in Rule 144 of the U.S. Securities Act) and bear a restrictive legend to such
                                            effect.

 

		(f)	Each
                                            certificate representing Shares issued to the Optionee upon the exercise of Options shall
                                            bear a legend in substantially the following form:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“U.S. SECURITIES ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION,
(B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) IN COMPLIANCE WITH THE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED BY (I) RULE 144 OR (II) RULE 144A THEREUNDER, IF AVAILABLE,
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES
ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION.
DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES.”

 

provided
that, if Shares issued upon the exercise of Options are being sold under clause (B) above, the legend may be removed by providing a declaration
to the Corporation’s transfer agent in such form as the Corporation may from time to time prescribe together with such documentation
as the Corporation or its transfer agent may require (which may include an opinion of counsel of recognized standing reasonably satisfactory
to the Corporation), to the effect that the sale of the securities is being made in compliance with Rule 904 of Regulation S under the
U.S. Securities Act; and

 

provided
further, that, if the Shares issued upon the exercise of Options are being sold pursuant to Rule 144 of the U.S. Securities Act, if available,
the legend may be removed by delivery to the Corporation and the Corporation’s transfer agent an opinion of counsel of recognized
standing in form and substance reasonably satisfactory to the Corporation, to the effect that the legend is no longer required under
applicable requirements of the U.S. Securities Act.

 

    	5

    	 

    

 

		(g)	The
                                            Optionee acknowledges that the Corporation may have federal, state, provincial or local tax
                                            withholding and reporting obligations and consents to such actions by the Corporation as
                                            may reasonably be required to comply with such obligations in connection with the exercise
                                            of Options. The acceptance and exercise of Options and the sale of Shares issued pursuant
                                            to the exercise of Options may have consequences under federal, provincial and other tax
                                            and securities laws which may vary depending on the individual circumstances of the Optionee.
                                            Accordingly, the Optionee acknowledges that the Optionee has consulted, as the Optionee considers
                                            necessary, personal legal and tax advisors in connection with the Options and the Optionee’s
                                            dealings with respect to the Options or the Shares to be issued upon exercise of the Options.

 

The
foregoing representations, warranties and covenants are made by the undersigned with the intent that they be relied upon in determining
whether the Shares issuable upon the exercise of Options may be issued under applicable securities laws. The undersigned undertakes to
notify the Corporation immediately of any change in any representation, warranty or other information relating to the undersigned set
forth herein which takes place prior to the date of issuance of the Shares.

 

By
executing this Election to Exercise Stock Options, the undersigned hereby confirms that the undersigned has read the Plan and agrees
to be bound by the provisions of the Plan.

 

[Remainder
of this page left intentionally blank; Signature page follows]

 

    	6

    	 

    

 

I
hereby agree to file or cause the Corporation to file on my behalf, on a timely basis, all insider reports and other reports that I may
be required to file under applicable securities laws. I understand that this request to exercise my Options is irrevocable.

 

DATED
this ► day of ►, ►.

 

	 	 
	Signature of Participant
	 
	 
	Name of Participant (Please Print)

 

    	7

    	 

    

 

APPENDIX
“B”

FORM OF DSU AGREEMENT

 

ENGINE
MEDIA HOLDINGS, INC. 

 

DEFERRED
SHARE UNIT AGREEMENT

 

	Name:	[name
    of DSU Participant]
	 	 
	Award
    Date	[insert
    date ]

 

Engine
Media Holdings, Inc. (the “Corporation”) has adopted the Omnibus Equity Incentive Plan (the “Plan”).
Your award is governed in all respects by the terms of the Plan, and the provisions of the Plan are hereby incorporated by reference.
For greater certainty, the provisions set out in Article 4 and Article 6 of the Plan applicable to DSUs shall be deemed to form part
of this DSU Agreement mutatis mutandis. Capitalized terms used and not otherwise defined in this DSU Agreement shall have the
meanings set forth in the Plan. If there is a conflict between the terms of this DSU Agreement and the Plan, the terms of the Plan shall
govern.

 

	Your
    Award	The
    Corporation hereby grants to you ► DSUs.

 

Settlement.
The DSUs shall be settled as follows:

 

(Select
one of the following three options):

 

		(a)	One
                                            Share issued from treasury per DSU.

 

		(a)	Cash
                                            Equivalent of one Share per DSU.

 

		(b)	Either
                                            (a), (b), or a combination thereof, at the election of the Board.

 

PLEASE
SIGN AND RETURN A COPY OF THIS DSU AGREEMENT TO THE CORPORATION.

 

By
your signature below, you acknowledge that you have received a copy of the Plan and have reviewed, considered and agreed to the terms
of this DSU Agreement and the Plan.

 

	 	 	 
	Signature	 	Date

 

	 	On
    behalf of the Corporation: ENGINE MEDIA HOLDINGS, INC.
	 	 	 
	 	Per:	                         
	 	Name: 	►
	 	Title:	►

 

    	1

    	 

    

 

APPENDIX
“C”

FORM OF RSU AGREEMENT

 

ENGINE
MEDIA HOLDINGS, INC. 

 

RESTRICTED
SHARE UNIT AGREEMENT

 

This
restricted share unit agreement (“RSU Agreement”) is entered into between Engine Media Holdings, Inc. (the “Corporation”)
and the Participant named below (the “Recipient”) of the restricted share units (“RSUs”) pursuant
to the Corporation’s Omnibus Equity Incentive Plan (the “Plan”). Capitalized terms used and not otherwise defined
in this RSU Agreement shall have the meanings set forth in the Plan.

 

The
terms of the RSUs, in addition to those terms set forth in the Plan, are as follows:

 

	1.	Recipient.
                                            The Recipient is ► and the address of the Recipient
                                            is currently ►.

 

	2.	Grant
                                            of RSUs. The Recipient is hereby granted ► RSUs.

 

	3.	Settlement.
                                            The RSUs shall be settled as follows:

 

(Select
one of the following three options):

 

		(a)	One
                                            Share issued from treasury per RSU.

 

		(b)	Cash
                                            Equivalent of one Share per RSU.

 

		(c)	Either
                                            (a), (b), or a combination thereof, at the election of the Board.

 

	4.	Restriction
                                            Period. In accordance with Section 5.3 of the Plan, the restriction period in respect
                                            of the RSUs granted hereunder, as determined by the Board, shall commence on ►
                                            and terminate on ►.

 

	5.	Performance
                                            Criteria. ►.

 

	6.	Performance
                                            Period. ►.

 

	7.	Vesting.
                                            The RSUs will vest as follows:

 

►.

 

	8.	Transfer
                                            of RSUs. The RSUs granted hereunder are not-transferable or assignable except in accordance
                                            with the Plan.

 

	9.	U.S.
                                            Securities Laws. If the Shares issuable upon the vesting of the RSUs are not registered under
                                            the United States Securities Act of 1933, as amended (the “U.S. Securities Act”),
                                            or any state securities laws, the Shares may not be issued in the “United States”
                                            (as defined in Rule 902 of Regulation S under the U.S. Securities Act) unless an exemption
                                            from the registration requirements of the U.S. Securities Act is available. Any Shares issued
                                            to a Recipient in the United States that have not been registered under the U.S. Securities
                                            Act will be deemed “restricted securities” (as defined in Rule 144(a)(3) of the
                                            U.S. Securities Act) and bear a restrictive legend to such effect.

 

	10.	Inconsistency.
                                            This RSU Agreement is subject to the terms and conditions of the Plan and, in the event of
                                            any inconsistency or contradiction between the terms of this RSU Agreement and the Plan,
                                            the terms of the Plan shall govern.

 

    	1

    	 

    

 

	11.	Severability.
                                            Wherever possible, each provision of this RSU Agreement shall be interpreted in such manner
                                            as to be effective and valid under applicable law, but if any provision of this RSU Agreement
                                            is held to be invalid, illegal or unenforceable in any respect under any applicable law or
                                            rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect
                                            any other provision or any other jurisdiction, but this RSU Agreement shall be reformed,
                                            construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
                                            provision had never been contained herein.

 

	12.	Entire
                                            Agreement. This RSU Agreement and the Plan embody the entire agreement and understanding
                                            among the parties and supersede and pre-empt any prior understandings, agreements or representations
                                            by or among the parties, written or oral, which may have related to the subject matter hereof
                                            in any way.

 

	13.	Successors
                                            and Assigns. This RSU Agreement shall bind and enure to the benefit of the Recipient
                                            and the Corporation and their respective successors and permitted assigns.

 

	14.	Time
                                            of the Essence. Time shall be of the essence of this Agreement and of every part hereof.

 

	15.	Governing
                                            Law. This RSU Agreement and the RSUs shall be governed by and interpreted and enforced
                                            in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable
                                            therein.

 

	16.	Counterparts.
                                            This RSU Agreement may be executed in separate counterparts, each of which is deemed to be
                                            an original and all of which taken together constitute one and the same agreement.

 

By
signing this RSU Agreement, the Participant acknowledges that he or she has been provided with, has read and understands the Plan and
this RSU Agreement.

 

IN
WITNESS WHEREOF the parties hereof have executed this RSU Agreement as of the ► day of ►,
20►.

 

	 	ENGINE
    MEDIA HOLDINGS, INC.
	 	 	 
	 	Per:	                     
	 	Name: 	►
	 	Title:	►

 

	 	 	 
	Witness	 	[Insert Participant’s Name]

 

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